Texas Property Code Section 209.0071 provides a mandatory alternative dispute resolution (ADR) framework for HOA disputes in Austin. Before an HOA or homeowner can file a lawsuit related to the governing documents, the complaining party must first offer ADR through mediation. This applies to disputes over enforcement actions, fines, architectural decisions, and assessment collection.
Under Texas Property Code Section 209.0071, before a property owners' association or an owner may file a suit related to the governing documents, the party must offer ADR to the other party. If the other party agrees, the parties must engage in the alternative dispute resolution process before filing suit. The ADR offer must be made in writing and must describe the nature of the dispute and the desired outcome. If the other party does not accept within 30 days, the offering party may proceed to litigation. Mediation costs are typically split between the parties unless otherwise agreed. Section 209.0052 also allows owners to challenge board actions taken without proper notice through ADR. The Texas Attorney General does not directly regulate HOA disputes, but the Texas Real Estate Commission (TREC) handles complaints related to management certificates. For condominium disputes (governed by Chapter 82 rather than 209), different procedures apply. Austin does not maintain a municipal HOA dispute resolution program; all disputes are handled through state law procedures and the courts.
Filing a lawsuit without first offering ADR as required by Section 209.0071 can result in the court dismissing or abating the case until ADR is completed. If either party refuses to participate in agreed-upon ADR, the court may consider this when awarding attorney's fees.
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