A condominium association and a homeowners association can look alike from the curb, but in Texas they run on different laws, carry different risks and need a different kind of management. Many boards in Houston, Sugar Land and The Woodlands find this out the hard way: a condo board borrows an HOA collection letter, an HOA notice deadline or an HOA insurance assumption, and it does not fit. This guide explains what changes when the community is a condominium, so your board knows what to expect from condo association management and what to ask any manager you hire.
If you serve on a single-family subdivision board, our guide to how deed restrictions work in Texas subdivisions covers your side of the line. This post is for condo, loft and conversion boards, and for townhome boards that are not sure which category they fall into.
What makes a condo association different from an HOA in Texas?
The difference starts with what owners actually own. In a typical subdivision, each owner holds a lot and the house on it, and the HOA owns or maintains shared areas such as entry monuments, pools, parks and detention ponds. In a condominium, each owner holds a unit, often defined by walls, floors and ceilings, plus an undivided interest in the common elements: the roof, the exterior walls, the structure, hallways, elevators, parking garages and grounds.
That ownership model changes almost everything a manager does. A subdivision HOA manager spends much of the week on architectural requests and deed-restriction compliance. A condo manager spends more of it on the building itself: roof and envelope maintenance, water intrusion between units, insurance claims, life-safety systems and vendor contracts for shared building systems. The board’s fiduciary job is the same, but the workload looks very different.
Townhome communities can go either way. Some are platted lots governed like a subdivision, and some are legally condominiums even though each home has its own front door. Your declaration and plat answer the question, and it is the first thing a good manager reads.
Which Texas law governs a condominium association?
Most Houston-area HOA boards work under Chapter 209 of the Texas Property Code, the Texas Residential Property Owners Protection Act. Condominiums generally do not. Section 209.003 states plainly that Chapter 209 does not apply to a condominium as defined by Section 81.002 or 82.003.
Instead, condos are governed by Chapter 82, the Texas Uniform Condominium Act, together with the association’s declaration, bylaws and rules. Under Section 82.002, Chapter 82 applies in full to condominiums whose declaration was recorded on or after January 1, 1994. Older condominiums, common in many of Houston’s established neighborhoods, are not left without rules: a defined list of Chapter 82 sections still applies to them, including meetings, insurance, the assessment lien, records, the management certificate and unit resales. Owners of an older condo can also vote to adopt the entire chapter by amending the declaration and recording the amendment.
For a board, the practical takeaway is simple. Before you rely on any notice period, collection step or records rule, confirm which statute applies to your building and which version of your documents controls. This is one of the first items we review when a condo board asks us about how a management company keeps boards on the right side of the law.
What does a condo association have to insure?
Insurance is where condo management departs most sharply from subdivision management, and it matters even more on the Gulf Coast. Section 82.111 requires the association to carry:
- Property insurance on the common elements against direct physical loss, in a total amount of at least 80 percent of replacement cost or actual cash value, checked at the effective date and at each renewal.
- Coverage on the units themselves when the building has units with horizontal boundaries (units stacked above or below each other), not including improvements and betterments installed by owners.
- Commercial general liability insurance, including medical payments, in an amount the board sets but not less than any minimum in the declaration.
The statute also says the association adjusts claims, holds proceeds in trust for owners and lienholders, and generally must repair damaged property promptly unless the condominium is terminated or at least 80 percent of owners vote not to rebuild. The insurer must give at least 30 days’ written notice before canceling or refusing to renew.
What this means for day-to-day condo association management: a manager should know the renewal date months ahead, help the board compare quotes against the 80 percent floor, keep the deductible and owner-responsibility rules clear in writing, and have a storm-claim playbook ready before hurricane season. When a pipe fails on the fourth floor and water reaches three units below, owners will call the association first. They should reach a person who knows the policy, not a voicemail box.
Who maintains what in a condo building?
In a subdivision, the property line usually settles maintenance questions. In a condo, the declaration’s definitions of the unit, the common elements and limited common elements (such as an assigned balcony or parking space) settle them, and these definitions vary from building to building.
A practical way for a board to reduce disputes is a written maintenance responsibility chart that translates the declaration into plain language: windows, sliding doors, balconies, water heaters, HVAC condensers on the roof, plumbing inside walls, and so on. Share it with owners, attach it to the welcome packet, and use it when a leak claim comes in. Our post on how management companies defuse homeowner disputes shows why clarity up front prevents most of the arguments later.
Building systems also push condo associations toward heavier vendor management. Elevator service, fire alarm monitoring, roof inspections, gate and garage access systems and pest control all need contracts, certificates of insurance and someone checking the work. Boards that rely on a manager with an established vendor network tend to get faster response and clearer pricing; see how HOA management companies secure better contractor rates.
How do condo assessments and collections work under Chapter 82?
Condo budgets are usually larger per owner than subdivision budgets because the association carries the building, its insurance and its systems. That makes timely collections essential. Section 82.113 makes each assessment a personal obligation of the unit owner secured by a continuing lien on the unit, and the lien is created when the declaration is recorded.
The lien takes priority over most other liens, with exceptions for property taxes and other governmental liens, liens recorded before the declaration, and a first deed of trust recorded before the assessment became delinquent. The association has a power of sale and may foreclose judicially or nonjudicially, but it may not foreclose a lien consisting solely of fines, and the owner has a right to redeem within 90 days after a foreclosure sale.
Few boards ever want to reach that point. The better path is a written collection policy applied the same way to every owner, clear statements, online payment options and early, respectful contact when an account slips. Boards that want to see how that structure works in practice can read how management companies protect HOA assets and prevent fraud, which covers segregated accounts, approvals and monthly reconciliation.
What does a condo board owe a buyer when a unit sells?
Unit resales are routine, but in a condominium they come with a specific statutory deliverable. Under Section 82.157, the association must issue a resale certificate no later than the 10th day after receiving a written request from a unit owner. The certificate must include the current operating budget and statements about assessments and amounts owed, approved capital expenditures for the next 12 months, reserves, unsatisfied judgments and pending lawsuits against the association, insurance coverage, known violations, the managing agent’s contact information, a balance sheet and transfer-related fees.
That list shows why condo bookkeeping has to stay current. If the books, the reserve balance or the insurance summary are out of date, the certificate will be too, and the request clock keeps running. A manager with clean monthly financials can produce these documents on schedule without a scramble.
How do condo board meetings differ from HOA board meetings?
Condo boards follow Section 82.108 rather than the Chapter 209 meeting rules. The association must hold a meeting at least once each year. Special meetings may be called by the president, a majority of the board, or owners holding at least 20 percent of the votes, unless the declaration says otherwise. Meetings of the association and the board must be open to unit owners, and the board may recess into executive session for topics such as personnel, pending litigation and contract negotiations, after first announcing the general nature of that business in the open meeting.
Notice periods for condo meetings come mainly from the bylaws, with the Texas Business Organizations Code as the fallback, so they may not match the deadlines an HOA board is used to. Quorum rules also come from the documents. Our guide to quorum requirements for HOA meetings explains how to read those provisions and what to do when an annual meeting falls short.
What should a condo board look for in a management company?
Every community deserves responsive service, but condominium associations should ask a few extra questions when they interview managers:
- Chapter 82 fluency. Can the manager explain which sections apply to your building, especially if your declaration was recorded before 1994?
- Insurance and claims experience. Who tracks renewals, coverage minimums and deductibles, and who coordinates adjusters and contractors after a storm or a major leak?
- Building systems and vendor oversight. How are elevator, fire-safety, roofing and access-control vendors scheduled, insured and checked?
- Financial reporting. Will the board receive monthly statements, reserve balances and delinquency reports it can actually read?
- Resale certificates on time. What is the internal process for meeting the 10-day deadline?
- Owner communication. Do owners reach a real person when they call, and is there 24-hour emergency assistance for after-hours building problems?
Our article on how Houston boards choose an HOA management company walks through the full interview process, and what a full-service HOA management contract should include gives you a scope checklist to compare proposals against. If your board has already decided to change providers, follow our Texas checklist for switching HOA management companies; condo boards should note that the management certificate rule for condominiums lives in Section 82.116 rather than Section 209.004.
How Sterling ASI supports condominium associations
As the largest locally owned community association management company in Houston, with more than 200 communities and four offices, we manage condominium and townhome associations alongside single-family subdivisions and master-planned communities. Condo boards get the same core services as every client: calls answered by a real person, assessment collections and payables, monthly financial reporting, compliance support and board training, resident technology, and 24-hour emergency assistance. You can see the full scope on our HOA and condominium association management services page.
We work with associations across Houston, Sugar Land, The Woodlands, Kingwood, Katy and Cypress.
This article is general information about Texas law, not legal advice. Your declaration, bylaws and the association’s attorney are the final word on how these rules apply to your building.
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