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What is an HOA?

A Homeowner's Association (HOA) is a corporation formed by a real estate developer for the purpose of marketing, managing, and selling of homes and lots in a residential subdivision. It grants the developer privileged voting rights in governing the association, while allowing the developer to exit financial and legal responsibility of the organization, typically by transferring ownership of the association to the homeowners after selling off a predetermined number of lots. Membership in the homeowners association by a residential buyer is typically a condition of purchase; a buyer isn't given an option to reject it. Most homeowner associations are incorporated, and are subject to state statutes that govern non-profit organizations and homeowner associations. State oversight of homeowner associations is minimal, and varies from state to state. Some states, such as Florida and California, have a large body of homeowner association law, and some states, such as Massachusetts, have virtually no homeowner association law. The 2013 Legislative Texas HOA Law can be found here http://www.texashoalaw.com/2013-legislative-update

How does an HOA Protect Homeowners?

The primary purpose of a homeowners association is to preserve property values and to maintain the quality of your neighborhood.  One of the most important functions of an association is to enforce deed restrictions and protect the community assets, one of which is your home. Deed restrictions are legally binding covenants, filed with real property records, which provide for buiding, using and maintaining of the homes in your neighborhood.

Where can I find a copy of the Texas Property Codes?


How long have HOA’s been in existence in the USA?

Homeowners associations first emerged in the United States in the mid-19th century. Their growth was limited, however, until the 1960s, when several factors led to a period of rapid national growth, including, a push towards large scale residential development by the Federal Housing Authority and the Urban Land Institute; an increasing cultural preference for architectural uniformity; a decline of readily available land; rising construction costs; and a modification of federal mortgage insurance rules to include cooperatives and condominiums. Early covenants and deed restrictions were exclusionary in origin, and in the first half of the 20th century many were racially motivated. For example, a racial covenant in a Seattle Washington neighborhood stated, "No part of said property hereby conveyed shall ever be used or occupied by any Hebrew or by any person of the Ethiopian, Malay or any Asiatic race. In 1948, the United States Supreme Court (USSC) ruled such covenants unenforceable, in Shelley v. Kraemer. However, private contracts effectively kept them alive until the Fair Housing Act of 1968 prohibited such discrimination. The Federal Housing Administration in 1963 authorized federal home mortgage insurance exclusively for condominiums or for homes in subdivisions where there was a qualifying homeowner association. The rationale was that developers wanted to get around density laws. The effect, however, was to divert investment from multifamily housing and home construction or renovation in the inner cities, speeding a middle-class exodus to the suburbs and into common-interest housing. The federal highways program further facilitated the process. In the 1970s, a growing scarcity of land for suburban development resulted in escalating land costs, prompting developers to increase the density of homes on the land. In order to do this while still retaining a suburban look, they clustered homes around green open areas maintained by associations. These associations provided services that formerly had been provided by municipal agencies funded by property taxes; yet, the residents were still required to pay those taxes. Accordingly, local governments began promoting subdivision development as a means of improving their cash flow. Another primary driver in the proliferation of single-family homeowner associations was the U.S. Clean Water Act of 1977, which required all new real estate developments to detain storm water so that flow to adjoining properties was no greater than the pre-development runoff. This law required nearly all residential development’s to construct detention or retention areas to hold excess storm water until it could be released at the pre-development flow level. Since these detention areas serve multiple residences, they are almost always designated as "common areas” which becomes a reason to create a homeowner association. Although these areas can be placed on an individual homeowner's lot, eliminating the need for an association, nearly all U.S. municipalities now require these areas to be part of a common area to ensure an entity, rather than an individual or the municipality itself, has a maintenance responsibility. Real estate developers, therefore, have established homeowner associations to maintain these common areas. With the homeowner association already in place, the developers have expanded their scope to provide other requirements and amenities that they believe will help them sell homes.

Does Quail Estates HOA have a Property Management Company?

Yes, Our current community  management company is now SPECTRUM A.M.  To ensure their communities ongoing operation and stability, many homeowner associaitons enlist the services of professional management companies - their fees are paid by the HOA assessement fees.  

What is a CAI?

Community Associations Institute (CAI) is a trade organization of individuals and businesses that sell supplies or services to homeowners associations, such as lawyers and community association managers. The CAI does not represent homeowners associations. It lobbies the legislatures of states that have significant proportions of homeowners living in HOAs to promote legislation beneficial to its members, while opposing laws that would harm its members.

What is the Quail Estates HOA Authority?

For purposes of this answer the term "homeowners association" or "association" refers to a mandatory homeowners association, where the homeowner's property interest is the real property (dirt) and improvements thereon. Condominiums and cooperatives are considered by most states to be a different form of community association because the property interest is different. The authority of a homeowners association is determined by relevant state statutes and its "governing documents, " The governing documents usually include the Covenants, Conditions, and Restrictions (CC&Rs) and the corporate documents (articles and bylaws) referenced by the CC&Rs and usually attached as exhibits. They may also include board-enacted rules as authorized (expressly or implicitly) by the CC&Rs. The association is structured as a private corporation and subject to the state's corporation statutes and/or specific association statutes. It is incorporated by the developer prior to the initial sale of homes, and the CC&Rs are recorded when the property is subdivided. The "governing documents" usually include the CC&Rs, the corporate documents (articles and bylaws) as referenced in the CC&Rs, and board-enacted rules and regulations as authorized (expressly or implicitly) by the CC&Rs. In these situations, the governing documents "run with the land" This means that the governing documents "touch and concern" the land, and there is no mutual agreement between the seller and subsequent buyers regarding their terms. In essence, these are "adhesion contracts"; they are a condition of ownership and a prospective buyer must take it or leave it. If an owner sells the encumbered real property (and improvements thereon), the seller ceases to be a member of the association and the new owner automatically becomes a member. All members of a mandatory homeowners association must pay assessments to and abide by the association's governing documents.

What is the limit of enforcement of the Quail Estates current CC&Rs?

The Quail Estates governing documents may be limited by Public Policy, state, or federal statutes. However, in some cases because of the constitutional prohibition against "impairment of contract", a covenant provision may "trump" a statute. This occurs where a later-enacted statute adversely affects a substantive contractual provision that existed before the statute was enacted. Predictably, there is also an exception to the exception – a contractual provision that is rendered illegal by later enacted state or federal law cannot be constitutionally protected. For example, a developer-drafted covenant giving himself the sole right to amend the CC&Rs was declared unenforceable as a matter of public policy in at least one state, where the developer attempted to amend years after he had sold all the property. (That state's legislature later codified that public policy). These examples provide good reason for an association to obtain the advice of competent legal counsel. Currently Quail Estates retains the ability to confer with legal counsel.

Does Quail Estates have an elected Board of Directors comprised of Homeowners now?

Yes, The Quail Estates Board of Directors is comprised of five Quail Estates Homeowners. The directors are VOLUNTEERS, elected at the Annual Meeting, by the community.  They do not recieve any type of compensation.  The HOA board is responsible for the management of all aspects of the association.

How are the Quail Estates Board of Director’s elected?

See Quail Estates current By-Laws Article VIII (Nomination and Election of Directors), Section 8.2.

Do I have to pay my Assessments Annually?

Yes,  Currently, the Quail Estates Annual Assessments are due January 1st of each year. (fiscal year:  January - December).  Late fees apply.  The fees are set, based on the annual projected expenses of the community.  Board members do not profit from HOA fees.  They are homeowners and are required to pay their fees like all members. The assessments go to pay the utilities for the common areas, landscape upkeep and improvements, community events as well as professional management fees and attorney's fees. 

What are DCC&Rs?

CC&Rs are the Declaration of Covenants, Conditions, and Restrictions commonly referred to as DCC&Rs. You can find a current copy of Quail Estates DCC&Rs on this website under the “Regulations” tab and then click on the Document and Forms link.

What is a Resale Certificate?

A resale certificate is necessary when a home is to be sold. State statutes require that a prospective purchaser of a lot, home a part of a mandatory homeowners association be provided with specific information prior to purchase. It provides pertinent information, regarding the Association, assessments and property, necessary for the proper closing of the property. The information included in a resale certificate allows a buyer to make an informed purchasing decision and gives full disclosure on the Association.

What is a transfer fee and why do I have to pay it?

A transfer fee covers the cost to update ownership records maintained by the Association and the time and paperwork required by a buyer’s realtor, lender, title company, insurance agent, etc. There is significant time and effort involved in this process. Updating ownership records is not simply a matter of replacing the old owner’s name by cutting and pasting the new owner’s name over the old. The process starts when the Management Company or HOA receives closing information from a title company. The Management Company or HOA, prepares a new owner packet for the new homeowner. The packet generally includes a welcome letter, recent newsletters, the Association’s collection policy, fine policy, or rules and regulations, and brochures related to being a member of the community association. The Management Company or HOAs must also make certain modifications to reflect the change in ownership in its accounting records. There is a verification of appropriate funds collected at closing by the title company. The title company is contacted if there is any discrepancy in funds. No owner records can be changed, until the Management Company or HOA is able to verify the change in ownership by reference of a warranty deed or an update from the County Appraisal District. This fee is not part of the recurring monthly charge for management services the Association pays into, This fee relates to services provided to a small group of homeowners (i.e., the homeowners buying or selling a home) and not to the other members of the Association, it would not be appropriate to pass the cost of this service on to the other members. Therefore, the fee is borne by the homeowner requesting the service.

How much is the transfer fee?

Currently, Quail Estates Management Company RealManage, charges $250.00. But we are transitioning to SPECTRUM A.M. and will be updating those fees after the transition period has completed. 

How often is our community previewed for DRV (deed restriction violations)?

Update: Site visits are done once a month by the professional management company that Quail Estates HOA has contracted.  Current management company: SPECTRUM A.M.  Inspectors remain in their vehicle & are not allowed to exit their vehicle to approach anyone on site.  Reports are completed electronically and include a photo of the violation.  Inspectors do not know homeowner's names resulting in an unbiased inspection.  There are no scheduled inspections.    

Are there Consequence to violations imposed and what if I refuse to pay them?

Update: Yes, when violations occur or rules are broken, The Quail Estates HOA will issue violation notices or impose a halt to construction improvements that have not met approval of the Architectural Control Committee (ACC). Due to many HOAs being corporations, they are legal entities that can enforce contracts with their homeowners. The usual penalty for committing a violation or blatantly breaking a rule is a fine. If you refuse to pay, the HOA can take other steps, such as forcing the sale of your home. The Quail Estates Schedule of Fines is Attachment 7 of the Quail Estates Community Manual. On this website the Quail Estates Community Manual is located under the “Regulations” tab, in the “Documents and Forms” link.

What are some Advantages of an HOA?

HOAs balance their restrictions with advantages. If all the homeowners follow the rules, you will never have a nuisance neighbor. Your property value, based partly on neighborhood condition, will be stable. You will have a voice and a vote in a defined community.

Can I as a non-homeowner help amend, abolish, or institute new By-Laws and DCC&Rs?

Yes, a non-homeowner may assist as a committee volunteer as approved by the Board or solicit ideas to the board as suggestions to amend, abolish, or institute new By-Laws and DCC&Rs as directed by the Board and those that the Homeowners voted to rewrite. A non-homeowner has no voting rights or voice for influencing any changes in the Quail Estates community unless accepted an approved by the majority of the HOA members.

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