Author Archives: QCHOA

Board Meeting/Board Transition Meeting Notice

Posted on by Posted in Board Meetings, Board Related, Meeting Notices & Updates, Official Notice

The meeting of the HOA Board of Directors shall convene Tuesday, October 19, 2021, at 7 PM, to conduct the business of, and address matters that relate to, the Association, which will include the transition of newly elected members.

The meeting will be conducted at the Steinhagen’s home, 304 Pheasant Hill Drive, upstairs (enter through the garage, the stairway entrance is the second door on the right immediately after entering the home).

All Board meetings are open to the membership. State law requires that official notice shall be posted on or before 6 PM at least 144 hours before the start of the meeting, and a sign shall be posted at the entrance/exit of the neighborhood.

PLEASE RSVP to (hoa@quailcreekrockwall.org, even if you are not sure that you can attend.  While this is not a requirement, this will help us ensure that the room is set up appropriately for the comfort and convenience of all attendees.

Any member that wishes to be added to the Agenda must notify the Board no later than 7 PM at least five days before the meeting.

Meeting are governed by Robert’s Rules of Order.

The GENERAL PURPOSE of the meeting will be to consider approval of the Board Meeting Minutes from the previous meeting, hear committee reports, and consider other business to be updated and included on the official agenda.  The board may recess into EXECUTIVE SESSION to discuss business in accordance with state law.

Following any Executive Session, the board shall reconvene to act by motion on the business discussed during, as well as reconsider any tabled or postponed items.

Parking Facing Traffic is Hazardous!

Posted on by Posted in Crime & Safety

Even though the streets in Quail Creek are private, state law (§545.303 – ADDITIONAL PARKING REGULATIONS) states that when parallel parking on a street, it is illegal to park facing oncoming traffic. That’s because all cars have reflectors on the rear but the front of most has none (take a flashlight & see for yourself), so when parking at night, a vehicle facing the wrong way is less visible, especially in low-light conditions.

When moving vehicles, bikes, or even pedestrians, collide into cars that are parked facing traffic the liability for damage often rests with the parking violator, regardless if it’s a public or private street, so encourage your guests that park along the street to face their vehicle with the flow of traffic.

2021 Legislative Changes that Impact HOA’s

Posted on by Posted in Governing Documents, Government News

On May 31, 2021, the Texas Legislature concluded the 2021 legislative session. Although there were a significant number of bills filed that could have had a dramatic effect on the laws governing Texas homeowners associations, only a few bills were ultimately enacted. The most significant is Senate Bill 1588, which ultimately evolved into an omnibus bill with 27 separate sections that add or modify 3 chapters of the Texas Property Code. Such new and modified statutory laws are summarized as follows:

HOUSE BILL 1659 – Reduced Application of Declaration Amendment Procedures under Chapter 209

House Bill 1659 modifies Section 209.0041 of the Texas Property Code, which establishes a statutory procedure for the amendment of a Declaration by a property owners association that administers a subdivision development. As modified, the Declaration amendment procedure under Section 209.0041 may not be used to amend a Declaration if the amendment will affect a portion of the subdivision development that is zoned for or that contains, or previously contained as specifically allowed under the Declaration, a commercial structure, an industrial structure, an apartment complex, or a condominium. This bill takes effect on June 15, 2021.

SENATE BILL 581 – Protection of Displayed Religious Items

Senate Bill 581 amends Section 202.018 of the Texas Property Code, which prior to 2021 prohibited a property owners association from adopting or enforcing a restrictive covenant that restricts an owner or resident from displaying or affixing a religious item on the owner’s or resident’s entry to their dwelling. Pursuant to such amendment, Section 202.018 now prohibits the adoption or enforcement of a restriction that would restrict an owner or resident from displaying a religious item anywhere on the owner’s or resident’s dwelling or property. Section 202.018 also permits a property owners association to adopt or enforce restrictions that restrict the display of religious items: (1) on common area or common element property; (2) that violate any applicable building line, right-of-way, setback, or easement; or (3) that are attached to a traffic control device, street lamp, fire hydrant, or utility sign, pole, or fixture. There are identical provisions for the protection of displayed religious items incorporated in Senate Bill 1588. This bill takes effect on May 31, 2021.

SENATE BILL 1588 – The Omnibus Bill

Senate Bill 1588 has 27 separate sections that add or modify statutory provisions in Chapters 202, 207 and 209 of the Texas Property Code, including provisions identical to those in House Bill 3571 (Protection of Security Measures) and Senate Bill 581 (Protection of Displayed Religious Items). Due to the size and scope of Senate Bill 1588, it shall be summarized in separate sub-parts by topic.

Senate Bill 1588 adds Section 202.022 of the Texas Property, which prohibits property owners associations from adopting or enforcing a restrictive covenant that restricts a property owner from installing on the owner’s property a swimming pool enclosure that conforms to applicable state or local safety requirements. Section 202.022 does authorize property owners associations to adopt and/or enforce rules regulating the appearance of a swimming pool enclosure, including limitations establishing permissible colors for a swimming pool enclosure, provided such limitations do not prohibit a swimming pool enclosure that is black in color and consists of transparent mesh set in metal frames. This provision takes effect on September 1, 2021.

Senate Bill 1588 modifies Section 202.006 of the Texas Property Code, which requires all Dedicatory Instruments of a property owners association to be recorded in the Official Public Records of the county in which its development is located. As amended, Section 202.006 restricts a property owners association from collecting a regular assessment if the Dedicatory Instrument authorizing the collection of such assessment is not recorded in the Official Public Records. This provision takes effect on September 1, 2021.

Senate Bill 1588 modifies Section 207.006 of the Texas Property Code, which governs the online publication of Dedicatory Instruments by a property owners association that administers a subdivision development. As amended, Section 207.006 only applies to a property owners association with at least 60 lots or that is managed by a management company and it now requires such applicable property owners associations to maintain an internet website and to publish its Dedicatory Instruments on such internet website. This provision takes effect on September 1, 2021.

Senate Bill 1588 modifies Section 207.003 of the Texas Property Code, which governs the production of resale certificates by a property owners association that administers a subdivision development. As amended, Section 207.003 imposes restrictions on the amounts charged for a resale certificate (no more than $375 for a resale certificate and no more than $75 for an updated resale certificate) and modifies the number of days to cure a failure to timely produce a resale certificate (5 business days instead of 7 days) before a property owner may sue the property owners association. Section 207.003 also now allows a court to award damages up to $5,000 (instead of $500) in such a lawsuit. This provision takes effect on September 1, 2021.

Senate Bill 1588 modifies Section 209.004 of the Texas Property Code, which governs the filing of a management certificate by a property owners association that administers a subdivision development. As amended, Section 209.004 now requires the management certificate to identify the recording data for the governing Declarations and all amendments thereto, the telephone and email address for the person managing the property owners association, the website address for the internet website on which the property owners association’s Dedicatory Instruments are published, and the amount and description of any fees charged by the property owners association related to the transfer of property. Section 209.004 now also requires the management certificate to be filed at the Texas Real Estate Commission and restricts a property owners association from holding a property owner liable for attorneys fees incurred in the collection of unpaid assessments or interest on the unpaid assessments if the property owners association has not timely recorded the management certificate in the county’s Official Public Records or filed the management certificate with the Texas Real Estate Commission. This provision takes effect on September 1, 2021, however, the Texas Real Estate Commission has until December 1, 2021, to establish the ability to electronically file management certificates and if a property owners association has already recorded a management certificate or amended management certificate in compliance with Section 209.004 on or before December 1, 2021, then it is not required to electronically file a duplicate management certificate or amended management certificate with the Texas Real Estate Commission until June 1, 2022.

Senate Bill 1588 adds Section 209.00505 to the Texas Property Code, which imposes new rules on the denial of an application by an architectural committee for neighborhoods with more than 40 lots and creates a procedure for appealing such a denial to the property owners association’s board of directors. Section 209.00505 also restricts members of the property owners association’s board of directors, and their spouses and household members, from serving on the architectural committee. This provision takes effect on September 1, 2021.

Senate Bill 1588 modifies Section 209.0051 of the Texas Property Code, which governs the meetings of a board of directors for a property owners association that administers a subdivision development. As amended, notices of a regular board meeting must be posted and sent to the registered email address of members of the property owners association at least 144 hours (instead of 72 hours) before the meeting. In addition, all amendments of the annual budget (instead of only those increasing the budget by more than 10%) have to be approved by the property owners association’s board of directors at an open board meeting. This provision takes effect on September 1, 2021.

Senate Bill 1588 modifies Section 209.0052 of the Texas Property Code, which governs the procedure for approving contracts by property owners associations that administer subdivision developments. As amended, Section 209.0052 requires property owners associations that propose to contract for services that will cost more than $50,000 to solicit bids or proposals using a bid process established by the property owners association. This provision takes effect on September 1, 2021.

Senate Bill 1588 modifies Section 209.006 and adds Section 209.0065 to the Property Code, which creates new due process procedures that must be performed before a delinquent account may be reported to credit reporting services by a property owners association that administers a subdivision development. Section 209.0065 also restricts a property owners association from charging a property owner fees associated with reporting a delinquent account to a credit reporting service. This provision takes effect on September 1, 2021.

Senate Bill 1588 modifies Section 209.063 of the Texas Property Code, which establishes a priority of payment schedule that must be followed by property owners associations that administer a subdivision development. As amended, payments received by a property owners association may only be applied to attorneys’ fees that are reasonable. This provision takes effect on September 1, 2021.

Senate Bill 1588 modifies Section 209.0064 of the Texas Property Code, which requires written notice of a delinquent account be sent to property owners by a property owners association that administers a subdivision development before the property owner can be made liable for the fees of a collection agent. As amended, the written notice must provide property owners with 45 days (instead of 30 days) to cure a delinquent account before further collection action may be taken by the property owners association. This provision takes effect on September 1, 2021.

Senate Bill 1588 modifies Section 209.007 of the Texas Property Code, which governs the procedure for conducting a hearing on a covenant violation by the board of directors of a property owners association that administers a subdivision development. As amended, Section 209.007 no longer permits the hearing to be first held by a committee appointed by the board of directors and it now requires the board of directors to designate a member of the board or other representative to present the property owners association’s case at the hearing. In addition, Section 209.007 also requires the board of directors to provide the property owner a packet containing all evidence of the violation to be presented at the hearing at least 10 days before the hearing and it extends the hearing date automatically if the board fails to timely produce the packet of evidence. This provision takes effect on September 1, 2021.

Senate Bill 1588 modifies Section 209.016 of the Texas Property Code, which prior to 2021 imposed limits on the type of information of a prospective tenant that may be turned over by a property owner to a property owners association that administers a subdivision development. As amended, Section 209.016 no longer requires redaction of sensitive personal information of a tenant from a lease agreement and authorizes a property owners association to require property owners who lease their property to submit to the property owners association contact information, including the name, mailing address, phone number, and e-mail address, of each person who will reside at a property under a lease and the commencement date and term of the lease. This provision takes effect on September 1, 2021.

Senate Bill 1588 adds Section 209.017 of the Texas Property Code, which authorizes property owners to sue a property owners association that administers a subdivision development in justice court for violations of Chapter 209 of the Texas Property Code. This provision takes effect on September 1, 2021.

HOUSE BILL 3571 – Protection of Security Measures

House Bill 3571 adds Section 202.023 to the Texas Property Code, which prohibits a property owners association that administers a subdivision development from adopting or enforcing any restrictive covenant that prevents a property owner from building or installing security measures, including but not limited to a security camera, motion detector, or perimeter fence. Section 202.023, however, does permit a property owners association to regulate the type of fencing that a property owner may install. There are identical provisions for the protection of security measures incorporated in Senate Bill 1588. This bill takes effect on June 15, 2021.

 

Source: Gregory S. Cagle. This 2021 Texas HOA Law Legislative Update Report provides brief descriptions of the most significant changes in Texas HOA law passed by the 2021 Texas Legislature; however, such brief descriptions are neither comprehensive nor exhaustive of all changes in the laws that may apply directly or indirectly to a particular homeowners association. As such, this report should be used for general informational purposes only and may not be construed as a legal opinion or legal advice.

Under Old Management

Posted on by Posted in Uncategorized

The Board of Directors voted unanimously to end the management contract with Goodwin & Associates [G&A] and return to self-management. The Board determined that after three years, the management company provided no real benefit to the Association or the Board while the engagement created unnecessary costs and significant burdens to the board and homeowners.

Until March of 2018, the Association was governed and managed by fellow homeowners, board members who are elected at the annual meeting.  However, as those who have served on the board understand, the work is not limited to the regular monthly meeting as there are ongoing responsibilities, especially for positions that carry the greatest burden of management, which include the Treasurer, Secretary, and the Architectural Review Committee [ARC].

When interviewing management companies, G&A’s sales team made service claims and promises that the board has determined were either inflated or completely false. G&A’s sales pitch was punctuated by their claim that the burdens of management would lessen to such an extent that the board might consider a change from monthly to quarterly meetings (though Bylaws require that the board meet monthly).

However, during open deliberation to terminate the contract, board discussion centered on the realities of services received:

  • Over the entire term of the contract, G&C exhibited little to no understanding of Quail Creek’s Covenants, Conditions, and Restrictions [CC&Rs], which has resulted in the majority of G&A’s violation reports to be for items that are not in violation at all, which included the May report.
    • After homeowners were consistently mailed notices for offenses that were actually not violations, the board stopped G&A from sending notices automatically and from that point forward, required G&A to get direction from the board before taking action. Despite this, several homeowners received unauthorized violation notices for matters that were in compliance with the CC&Rs.
    • The board ended up creating its own spreadsheet to manage violation notices, which was not something that G&A provided, to keep track of timelines and action steps. There are instances where G&A was unable to provide the Board with either accurate timelines or proper evidence that proper procedure was followed, which resulted in added costs to the Association and time-consuming added effort of the Board.
    • Regardless of the severity of a violation, any violation notice sent by G&A included an administrative cost to the homeowner, regardless of how minor the offense, where all notices sent by G&A were delivered via US Mail.  So, to mitigate the cost to homeowners for violation notices, the board instituted a new process of first sending a “courtesy notice of violation” by email from the board, before authorizing G&A to begin the costly process of mailing violation notices.
    • The Board also had to begin requiring that any notice sent to a homeowner via certified US mail also be copied and sent via regular mail, since homeowners have sometimes refused certified mail from the HOA in the past.
  • G&A claimed to provide legal services to the HOA when selling the contract to the Board. In fact, during the 2019 annual meeting where the G&A representative “ran” the meeting, homeowners were again reminded about the added value that G&A brings because their in-house legal counsel provides legal services to the Association, should the need arise.
    • However, G&A does not provide legal services and their in-house legal counsel, if G&A has it, is limited to credit reporting and collections.
    • The Board also discovered that the G&A contract actually indemnified them from any legal action, which leaves the HOA completely exposed to actions taken on behalf of the Association with or without the Board’s knowledge, authorization, or understanding. This means that if G&A is sued by a homeowner of QC, the Association must pay for G&A’s attorney fees for their defense, and if they lose, the Association pays the judgment.
    • The insurance policy which protects Board members from personal liability, a policy that G&A directed the Association to purchase, does not cover G&A.
  • G&A exhibited a lack of understanding of the Association’s policies as well as state and federal law governing HOA’s when taking action on behalf of the Association.
    • Before taking legal action against an uncooperative homeowner who was in violation of the CC&Rs, the board decided to re-do the state-required & board-policy instituted process of official notices to the homeowner, as G&A could not provide the board with sufficient proof that the process was precisely followed.
    • At last year’s annual meeting, members had approved a special assessment for street repairs, however, that vote was challenged by a homeowner for improper notice, and the Board withdrew it because G&A failed to include state-required wording in the meeting notice that a special assessment was up for consideration, which meant that most homeowners were completely unaware of the proposal.
  • Last year’s annual assessment notice was incorrect and had to be re-mailed to homeowners because the increase to the Assessment was not included.  There were several homeowners who had already mailed in their assessment payment before they received the second notice, which required further follow-up by the board & G&A to recoup the difference. That led the board to require G&A to receive board approval of any draft for mailings intended for the entire membership.
    • Despite this, G&A mailed out this year’s annual assessment without the board’s review and approval, and in spite of the board president’s notice to G&A of the contract termination, which included the following wording: “…we request that G&C cease all services that require additional service fees, immediately.  This includes the upcoming annual assessment mailing that is scheduled.” Not only was the mailing unauthorized, but again, homeowners were billed for an incorrect amount.

Discussion to terminate also centered on the charges incurred by homeowners for G&A’s administrative costs, which the Board agreed was out of proportion to what is reasonable for a neighborhood with just 69 homes, especially since the Board is actually doing most of the work.

  • Meeting minutes have continued to be the job of the Board Secretary, not G&A.
  • The Association pays just three regular bills per month, along with a few others that are infrequent, and also provides title companies with resale certificates (at a cost of $250 to the homeowner, where before it cost just $50).  While having G&A pay these bills creates the impression that the Treasurer’s work is lessened, our current and past Treasurer have highlighted the added burden of playing watchdog over G&A accounting, as overcharges and mischarges to the Association has been an all-to-frequent occurrence, which has created more work for them, not less.
  • The ARC has continued to do its work without the assistance or guidance of G&A.

In summary, while the work of the volunteer Board to self-manage the Association can sometimes be time-consuming, G&A’s actions actually added to the Board’s monthly burden, which resulted in the Board managing the management company.

In the future, for those rare instances that a homeowner refuses to come into compliance with CC&R’s following state-mandated notification efforts by the Board, the Board, in compliance with the established state-mandated policy, will turn over further compliance efforts to an attorney to remedy the matter in a court of law, the cost of which will be incurred by the homeowner, not the Association.

The deliberation to terminate the G&C contract was included on the last three Board Agendas (March, April, & May), however, when G&A contacted the board’s president in response to the termination notice, they claimed that the termination was a complete surprise.

UPDATE: There will be NO Special Assessment for 2020!

Posted on by Posted in Annual Dues/Assessment, Board Related, Meeting Notices & Updates, Membership Meetings

At last night’s meeting, a member challenged the $400 special assessment for street repairs approved at this year’s annual member meeting based on the management company’s failure to provide proper notice to members. After a review of the formal requirements, the Board noted that the official Annual Meeting Notice omitted the inclusion of a special assessment,  which the Board confirmed invalidates the vote.  In advance of next October’s Annual Meeting, the Board plans to provide homeowners with information about the needs to repair and do maintenance on our streets, the costs, and a formal proposal for a special assessment.

Firework Bans Miss Their Intended Purpose (Opinion)

Posted on by Posted in Community, Crime & Safety, Holidays, Opinion

Quail Creek [QC] residents experience a wonderfully unique lifestyle from most, which includes the right to shoot off fireworks.  This freedom has resulted in some audaciously large & beautiful private displays that have brought great joy and wonder for many of us!

However, a growing contingent of McLendon-Chisholm citizens would like for the City to follow through on a failed 2015 ordinance that would have banned fireworks inside the city limits because every year there are more incidents where injuries to people or damage to property is reported.

Law of Unintended Consequences

Restrictions like firework bans have proven to do little more than rob responsible citizens of liberty. That’s because those for whom such laws are intended (the most careless and irresponsible when shooting off fireworks, to begin with) are also the least likely to adhere to such ordinances. 

Taking away freedoms for all doesn’t turn disrespectful people into being more accommodating, it just makes them more vigilant to avoid getting caught by authorities. So to criminalize an activity in a largely rural area where the majority of citizens practice safely, responsibly, and with respect to others is misguided. 

A Costly Mirage of Enforcement

There are also practical challenges that go beyond the added costs for policing violators, not to mention the distraction this has on officers.  As with a traffic ticket, a law enforcement official must observe the violation to issue a citation.  Most are surprised to learn that firework debris was strewn about the front lawn of a home, a handful of eyewitnesses to the act, or even video footage is not enough, which is why these laws are so difficult to enforce.  

Support in QC For A Ban

Historically, most in QC demonstrate care & respect for neighbors when shooting fireworks.  However, actions by a few have soured many from wanting to see the practice continue.  In addition to shooting fireworks well past midnight, or during the workweek (on days other than July 4th or New Years’), the biggest homeowner complaint is waking up the morning after to find firework debris on the roof, in the pool, & littered all over the yard.

Firework Debris Is Litter!

It’s reasonable to expect that the clean-up of firework debris that finds its way onto neighboring properties should be the responsibility of those who shoot them off. 

Unless we put our name on each piece of the ordinance we fire, there’s simply no way to know if the debris on our neighbor’s property belongs to us, or the neighbor ten houses away.  And why should that matter?  After all, in Quail Creek, everyone is our neighbor.

Day & Time Matters

Most of us need to be up early for work on weekdays and many young children are already tucked away in bed well before 10 pm.

There are also many QC families with dogs that are terrified when fireworks go off, where unexpected fireworks displays can be more than an annoyance. One family’s dog ran away when an unannounced fireworks display went off in the middle of November!

Outside of July 4th & New Years’, it should be reasonable to expect that fireworks would be limited in their use here in QC, not by some arbitrary HOA rule or law, but by common sense and fundamental respect for others.  

We Can’t Fix Stupid or Inconsiderate

We shouldn’t need new laws or HOA restrictions to tell us that shooting off fireworks late at night or in the middle of the workweek is inconsiderate.  We can, however, reinforce a culture where respect for our neighbors comes first because, for most in this community, they do!

Just as there are still those who drive 3o mph or more down our streets, there will still be those who continue to shoot off fireworks at two in the morning, and a new law will not prevent this from happening. 

Remember too that a child’s actions are the responsibility of the parent.  Therefore the expression that “kids will be kids” doesn’t excuse us from their poor choices if they should carelessly shoot off celebratory ordinance in mid-September or drive 40mph down our streets. 

The Irony of Restricting Liberty on July 4th

Thomas Jefferson said, “I prefer dangerous freedom to peaceful slavery.” 

Where liberty abounds we become dependent on the good nature of our neighbors to be considerate, but I think it’s a worthy tradeoff for freedom.

In light of this let’s all exercise our liberty in a respectful manner as we celebrate our nation’s independence!

-Bob Steinhagen, Quail Creek HOA President

Steinhagen has served as a City Council Member and Mayor of McLendon-Chisholm and is now a political broadcaster for Rockwall County as Bunker Bob on The Bunker Bob Show.

Can You Smell That?!?

Posted on by Posted in Helpful Reminders

The non-stop rain has contributed to more septic issues for many homeowners this Spring, which has made for some unpleasant odors that can make outdoor activities unbearable. Open this post to find a link to “Pipeline, ‘Small Community Wastewater Issues Explained'”

While the Board would like to address these issues, the CC&Rs provide no recourse for the Association to act, which is why complaints should be made to the City of McLendon-Chisholm at 972-524-2077.

As it is a public health issue, both City ordinance & State statute requires homeowners to maintain their septic system or face fines! Please check your system!

Update to to Fine & Enforcement Policy

Posted on by Posted in Policies

The board of directors amended the Fine & Enforcement Policy in January to comply with case-law, which requires HOA’s to take action with statutory legal remedies when a non-compliant homeowner refuses to adhere to the promise(s) (AKA. Covenant(s)) made when purchasing a home in Quail Creek.  To view this policy, open this post and CLICK HERE on the hyperlink.