Form 23-5

Rules of [name of property owners’ association] [, Inc.]

Basic Information

The Property Owners’ Association adopts these Rules, which will be enforceable on the recording of this document in the real property records of the [county/counties] in which the property described by the Declaration is located. On violation of these Rules, owners may be subject to Penalties for Violation.

A.Rules

B.Penalties for Violation

C.Enforcement Procedures

C.1.Notice.      Before the Property Owners’ Association may (a) suspend an Owner’s right to use a common area, (b) file a suit against an Owner other than a suit to collect a Regu­lar Assessment or Special Assessment or foreclose under the Property Owners’ Association’s lien, (c) charge an Owner for property damage, or (d) levy a fine for a violation of the restric­tions or Bylaws or Rules of the Property Owners’ Association, the Property Owners’ Associa­tion or its agent must give written notice to the Owner by certified mail, return receipt requested. The notice must describe the violation or property damage that is the basis for the suspension action, charge, or fine and must state any amount due the Property Owners’ Asso­ciation from the Owner. The notice also must inform the Owner that the Owner (a) is entitled to a reasonable period to cure the violation and avoid the fine or suspension, unless the Owner was given notice and a reasonable opportunity to cure a similar violation within the preceding six months; (b) may request a hearing in accordance with Texas Property Code section 209.007 on or before the thirtieth day after the date the Owner receives the notice; and (c) may have special rights or relief related to the enforcement action under federal law, including the Servicemembers Civil Relief Act (50 U.S.C. §§ 3901–4043) if the Owner is serving on active military duty. If a hearing is to be held before a committee, the notice must state that the Owner has the right to appeal the committee’s decision to the Board by written notice to the Board.

C.2.Hearing.      If the Owner is entitled to an opportunity to cure the violation, the Owner has the right to submit a written request for a hearing to discuss and verify facts and resolve the matter at issue before a committee appointed by the Board or before the Board if the Board does not appoint a committee. The Property Owners’ Association must hold a hear­ing under this provision not later than the thirtieth day after the date the Board receives the Owner’s request for a hearing and must notify the Owner of the date, time, and place of the hearing not later than the tenth day before the date of the hearing. The Board or the Owner may request a postponement, and, if requested, a postponement will be granted for a period of not more than ten days. Additional postponements may be granted by agreement of the par­ties. The Owner or the Property Owners’ Association may make an audio recording of the meeting. The hearing will be held in executive session, affording the alleged violator a reason­able opportunity to be heard. Before any sanction under these Rules becomes effective, proof of proper notice will be placed in the minutes of the meeting. Such proof will be deemed ade­quate if a copy of the notice, together with a statement of the date and manner of delivery, is entered by the officer, director, or agent who delivered the notice. The notice requirement will be satisfied if the alleged violator appears at the meeting. The minutes of the meeting will con­tain a written statement of the results of the hearing and the sanction imposed, if any. The Board may, but will not be obligated to, suspend any proposed sanction if the violation is cured within a [number]-day period. Such suspension will not constitute a waiver of the right to sanction violations of the same or other provisions and rules by any person.

C.3.Appeal.      Following hearing before a committee, if any, the violator will have the right to appeal the decision to the Board. To perfect this right, a written notice of appeal must be received by the managing agent, president, or secretary within [number] days after the hearing date.

[Name of property owners’ association]

By       
        [Name and title]