High court puts curb on homeowners groups' power |
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Article Courtesy of
Houston Chronicle
The Texas Supreme Court ruled Friday that a Harris County homeowners association lacked the authority to increase assessments beyond limits imposed in deed restrictions or to foreclose on homes because of unpaid late fees. The decision in a case brought by the late Houston activist Geneva Kirk Brooks affirms important principles of homeowners' rights, said David Kahne, Brooks' lawyer. And it lays the groundwork for new efforts to change state laws that govern how homeowners groups can enforce rules and collect fines and fees, Kahne said. "What this case does is clarify fundamental principles of law that protect individual rights," Kahne said. John B. Mitchell, the attorney for the Northglen Association, could not be reached for comment. Kahne said an appeal is not possible because the case involved no federal issues, and the Texas Supreme Court is the final authority on civil law in Texas. The Northglen Association, which represents more than 1,600 northwest Harris County homeowners, is one of many associations in which membership is mandatory and homeowners agree to abide by certain rules and to pay assessments for maintenance and other services. In 1994, Northglen's board decided to impose late fees on unpaid assessments. The board also sought to apply 10 percent annual inflation increases to the assessments retroactively for 16 years, Kahne said. Brooks, who owned a rental home in Northglen, and other homeowners protested and later sued to block these decisions. Brooks, known to many Houstonians for her anti-pornography crusades in the 1970s and '80s, died of cancer in 2002. The Supreme Court, in its unanimous opinion, said the retroactive increases were improper because the subdivision's deed restrictions did not permit them. Northglen had argued the increases were authorized by a section of the state property code passed after the deed restrictions were adopted. The Supreme Court agreed with a lower appellate court that the Northglen Association had the right to add late fees to unpaid assessments but could not foreclose on a home because of unpaid late fees. Foreclosure has been a key point in a years-long effort by activists such as Brooks to curb the associations' authority. The issue gained widespread attention in 2001 when 83-year-old Houston widow Wenonah Blevins lost her $150,000 home for a time over an $814.50 delinquency. Last year, state Sen. Jon Lindsay, R-Houston, led an effort to restrict associations' powers, but his bill stalled. Kahne said he expects similar legislation to be filed in 2005. |
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