Sherman, TX HOA Rules: Assessment & Dues (2026)

Section 10.02.008 of the Sherman Code of Ordinances sets the money rules for every property owners' association (POA) the City of Sherman, Texas requires at plat time. Subsection (f)(4) requires covenants for maintenance assessments, which run with the land, so the obligation follows the lot to each new owner. Subsection (f)(7) requires authority for the association to secure funds from its members sufficient to meet its responsibilities, including the ability to collect dues, to increase dues, to charge special assessments, and to place liens against property for failing to pay dues and assessments.

The code also controls how the dues figure is built. Dues must be calculated from a cost projection for the maintenance of all amenities and based on eventual build-out of the subdivision, not on the lots sold so far. Dues cannot be based on calculations that include monies from the developer which will not be provided after the association transfers from the developer to the lot owners. Dues must be disclosed to all lot owners at the time of property purchase. Under subsection (e)(3), the developer must post notice at model homes and sales offices and give any person who asks a complete copy of the association documents and a five-year projection, at a minimum, of association dues, income and expenses.

Reserves are a separate requirement. Subsection (f)(10) calls for written assurance of funds, based on an accredited cost projection analysis, held in a specific reserve account of the association for the maintenance and removal of amenities as determined by the city. Subsection (f)(8) bars any amendment of the association documents relating to maintenance or related reserve funds without prior city approval. For thoroughfare screening, subsection (g)(3)(A) makes the association own and maintain the required screening walls and fences, landscaping, landscape edges and landscape irrigation systems, and requires it to provide for the payment of dues and assessments needed to maintain them.

The city holds a backstop. Under subsection (h)(4), if the association fails to carry out its duties, the city can perform them after due notice and assess the association for the full amount owed or assess the property owners on a pro rata basis. That assessment is a lien in favor of the city on the property for which it is made.