McKinney HOAs must follow TX Property Code §209.0064 for assessment collection: certified mail notice of default, 30-day cure period, payment plan offer, and strict prerequisites before foreclosure, which requires court order under §209.0092.
Before an HOA can take action on unpaid assessments, it must send a §209.0064 notice by certified and first-class mail itemizing the delinquency, describing cure options, and offering a payment plan of at least 3 months (not required if owner defaulted on a prior plan within 2 years). Late fees and interest must be reasonable and authorized by the declaration. A non-judicial HOA foreclosure is no longer allowed in Texas; §209.0092 requires a court order expedited procedure, and owners have 180 days post-sale right of redemption under §209.011. Priority of HOA liens is junior to purchase-money mortgages.
Failure to follow §209.0064 notice voids foreclosure and exposes HOA to damages and attorney's fees. Misuse of late fees may be recovered by owner.
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