Additional Requirements for Certain Association Contractions- 2021 Texas Legislative Analysis

Section 209.0052 of the Texas Property Code was established in 2013 and previously only related to contracts with board members or their relatives. In the 2021 Legislative Session, the Texas Legislature amended Section 209.0052 and created a specific provision which is applicable to contracts in excess of $50,000. This provision is applicable to all residential subdivisions and townhomes, irrespective of their size (does not apply to condominiums) and does not take effect until September 1, 2021.

In addition to other requirements of this section, if an association proposes to contract for services that will cost more than $50,000, it must solicit bids or proposals using a bid process established by the association. This provision does not require that an association solicit bids for contractual agreements already in effect.  Section 209.0052(c) is only applicable to contractual agreements after the effective date of the statute. If an association may enter into a contractual agreement for services in excess of $50,000, it is our firm’s recommendation that it establish a bid solicitation and proposal process in compliance with this section.

-See Texas Property Code § 209.0052(c) and Section 24 of SB 1588

Frisco, Texas