2025/2026 HOA special assesment rules

What are special assessments?

A special assessment is an additional fee charged by a homeowners association (HOA) to cover unexpected or one-time expenses that go beyond the regular budget. Under HOA special assessment rules in Texas, these charges are typically used to pay for emergency repairs, capital improvements, or other unplanned costs that the association’s reserve funds can’t cover.

Special assessments can arise from situations like storm damage, roof replacement, or major plumbing or electrical issues in shared areas. While they are separate from routine assessments or dues, they are equally enforceable under an association’s governing documents. Every homeowner is responsible for paying their share once the board properly approves the assessment.

This article is not intended to and does not constitute legal advice or create an attorney-client relationship. Board members should consult their association’s attorney to discuss the legal implications of their decisions or actions prior to proceeding.    
 

HOA special assessment rules

HOA special assessment rules in Texas are largely governed by an association’s own governing documents, specifically its Declaration of Covenants, Conditions, and Restrictions (CC&Rs), bylaws, and articles of incorporation. These documents outline when, how, and why a board can charge a special assessment and whether homeowner approval is needed.

While there’s no statewide cap on how much an HOA can assess or how often, Texas property management laws set process-based requirements that protect homeowners and guide boards:

• Open meetings: The board must discuss and vote on special assessments in an open board meeting that homeowners can attend.
   
• Notice: Members must receive advance notice of the meeting, including the date, time, and purpose.
   
• Recordkeeping: The vote and approval must be documented in the meeting minutes.

Tips for managing special assessments

1. Check your HOA’s governing documents first.

   Although Texas law allows HOAs to levy special assessments, check your association documents for specific regulations about how and when you can implement them in your association. For example, your board may only be authorized to approve special assessments if they don’t exceed a certain dollar amount.  The special assessment could also require homeowner approval.
   
   If your governing documents are outdated or unclear, this may be a good time to consult with the association’s attorney or management company about updates. Modernizing your documents can help clarify assessment procedures and give the board more flexibility to address community needs efficiently.
    

2. Restrict special assessments to major projects.

   Special assessments should only be implemented if your HOA or condominium association faces an unplanned capital expenditure — such as a major repair or replacement — or needs to make a significant improvement that you cannot fund any other way.
   
   Examples of appropriate repairs and replacements include:
    
   • Poor drainage around a building causing basement leaks and extensive repairs in an aging high-rise building
      
   • Repair leaks in a pool due to ground shifting
      
   • The unexpected replacement of townhome roofs that have prematurely exceeded their useful life
      
   • A large deductible on an unexpected insurance claim
   
   Examples of appropriate property enhancements include:
    
   • Replace and upgrade all the front doors in an urban-living community to increase home values
      
   • Conversion to xeriscape landscaping to save money over time by reducing maintenance and irrigation requirements and eliminating regular replacement of non-native plants
   
   Some boards believe that they should keep their regular HOA assessment fees low at any cost in order to appease homeowners and attract new buyers, but this can backfire. It's important that the association budget is properly funded to take care of items such as maintenance of amenities and landscaping. Homeowners may question the board’s ability to fulfill its fiduciary responsibility if special assessments are a common occurrence for things that are perceived to be basic upkeep of the community.
    

3. Communicate with homeowners early and openly.

   It's important to be transparent about the need for a special assessment. Communicating openly can help minimize homeowner resistance. If time allows, it can be helpful to hold a meeting to explain the reason that the special assessment is necessary. This is also a way to give homeowners an opportunity to ask questions and voice their opinions. Prompt communication is especially important in the case of a needed emergency repair or a catastrophic loss.
    

4. Offer flexible payment options.

   For some homeowners, even a modest fee can present a financial hardship to some. Providing payment options eases the burden on these residents and increases the chance that they will do everything they can to meet their obligation.
   
   Flexible payment schedules also demonstrate that the board is acting in good faith. Whether that means offering a multi-month payment plan or working with the management company to process payments electronically, small gestures can make a big difference in maintaining positive owner relations and encouraging full participation.
    

5. Create an annual association budget that addresses all your needs.

   One reason that boards sometimes end up needing a special assessment is because they fail to budget for unforeseen costs. Creating a contingency line item will help to address this issue.
   
   Boards sometimes fail to allocate enough money, leaving them with underfunded reserves and inadequate insurance coverage. If the board has planned well, it should be able to take money from its reserves when costly projects come up.
    

6. Rely on financial experts.

   Obtaining a reserve study, and following the preventative maintenance guidelines in the study, is crucial for adequately funding your reserves. A good community management company can be a great asset in selecting a reserve study specialist who will do the job right. Your management company can help you get legal counsel if necessary, as well as helping you find the best rates on loans and insurance.

How FirstService Residential can help

At FirstService Residential, we help communities across Texas navigate HOA special assessment rules with confidence. Our local teams assist with every step of the process, from preparing notices and coordinating board meetings to managing vendor contracts and financial reporting. By partnering with us, boards can focus on protecting property values and maintaining community standards while we handle the administrative details that keep operations running smoothly.

Contact FirstService Residential today to learn more.