Houston HOA Reserve Study

Deed restrictions do the work zoning does elsewhere

Houston has no zoning code. The City of Houston Planning Department explains that land use in many neighborhoods is controlled by deed restrictions instead, and the city’s Legal Department can help enforce some of them. The result is a city and suburbs full of civic clubs and HOAs with real common property: entry monuments, landscaped esplanades, pools and parks.

Older inner-loop civic associations often own very little, so a short Level III style update can be enough. Newer master-planned communities in Fort Bend, Montgomery and northwest Harris County own a great deal and need a full study.

Find out what the MUD owns before the study starts

Much of suburban Houston is served by municipal utility districts, created under Chapter 54 of the Texas Water Code. A MUD, not the HOA, typically owns the water, sewer and drainage systems, and some districts also own parks, trails or detention ponds. Anything the district owns and maintains should be left out of your component list, or you will fund the same pond twice. Give your provider the district’s maps or agreements, and where ownership is unclear, check with the association’s attorney.

Components that age faster on the Gulf Coast

• Pool plaster, decking and equipment. A long swimming season and heavy use wear them out sooner.
• Wood screening fences and gates. Humidity and termites shorten wood fence lives; masonry lasts longer but cracks with soil movement.
• Roofs on clubhouses and pavilions. Wind and hail claims reset ages; record replacements so the study counts from the right year.
• Drainage the HOA does own. Inlets, outfalls, bulkheads and pond aerators, where they are not the district’s.

Condos and townhomes inside the loop

Mid-rise and high-rise condos in Midtown, the Galleria and the Medical Center area are different work: roofs, elevators, chillers, facade sealants and garage decks. Lender reviews matter most here, because Fannie Mae and FHA condo project rules look for reserves of at least 10 percent of the budget or a current study. A provider with building experience is the right fit.

For the statewide picture, read what the Texas Property Code says about reserves and what a study costs.