Relating to the audit of the financial records of certain property owners’ associations.
relating to the audit of the financial records of certain property
owners’ associations.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 209, Property Code, is amended by adding
Section 209.00501 to read as follows:
Sec. 209.00501. ANNUAL AUDIT OF ASSOCIATION FINANCIAL
RECORDS; PROVISION TO ASSOCIATION MEMBERS. (a) A property owners’
association shall:
(1) annually obtain an independent audit of the
association’s financial records; and
(2) provide a copy of the audit to each member of the
association.
(b) An audit required by this section shall be performed by
a certified public accountant if required by:
(1) the association’s bylaws;
(2) a vote of the board; or
(3) a majority vote of the members of the association
voting at a meeting of the association.
(c) For purposes of a vote of members of the association
described by Subsection (b)(3), a member may not cast more than one
vote, regardless of the number of lots the member owns and
notwithstanding any contrary provision in a dedicatory instrument
of an association relating to the allocation of votes to
association members.
SECTION 2. This Act takes effect September 1, 2025.
