Texas HOA Payment Plan Policy Template

[ASSOCIATION NAME]
PAYMENT PLAN POLICY AND ALTERNATIVE PAYMENT SCHEDULE GUIDELINES

Adopted: [Date]
Effective: [Date]
County/Counties: [County Name(s), Texas]

1. Purpose

The purpose of this Payment Plan Policy is to establish reasonable guidelines
for alternative payment schedules for delinquent regular or special assessments
and other amounts owed to [Association Name] in accordance with Texas Property
Code Section 209.0062.

This Policy is intended to promote consistent collection practices, provide
eligible owners a reasonable opportunity to pay delinquent balances over time,
and preserve the Association's ability to collect amounts owed under its
governing documents and applicable law.

2. Authority

This Policy is adopted by the Board of Directors of [Association Name] under
the Association's governing documents and Texas Property Code Section 209.0062.
If this Policy conflicts with applicable law, applicable law controls.

3. Covered Amounts

An owner may request an alternative payment schedule for delinquent regular or
special assessments or any other amount owed to the Association, subject to this
Policy, the governing documents, and applicable law.

4. Request for Payment Plan

An owner requesting a payment plan must submit a written request to:

[Association Contact Name]
[Mailing Address]
[Email Address]
[Phone Number]

The request should include:

a. Owner name;
b. Property address;
c. Account number, if any;
d. Current mailing address and email address;
e. Proposed payment amount and frequency; and
f. Any relevant information the owner wants the Association to consider.

5. Minimum and Maximum Term

The minimum term for a payment plan offered by the Association is three months.
The Association is not required to allow a payment plan for any amount that
extends more than 18 months from the date of the owner's request for a payment
plan.

6. Eligibility

The Association may deny or decline to offer a payment plan when allowed by
Texas Property Code Section 209.0062, including when:

a. The owner failed to honor the terms of a previous payment plan during the
   two years following the owner's default under the previous payment plan;
b. The period for cure described by Texas Property Code Section 209.0064(b)(3)
   has expired; or
c. The owner has already entered into a payment plan during the previous
   12-month period.

7. Payment Amount and Frequency

The Association may approve a monthly payment schedule or another written
schedule that the Association determines is reasonable under the circumstances.
The approved schedule must identify:

a. The beginning balance;
b. The payment due dates;
c. The payment amount for each installment;
d. Where payments must be sent;
e. Whether interest or reasonable administration costs apply; and
f. The consequences of default.

8. New Assessments During the Plan

Unless the Board approves otherwise in writing, the owner must remain current
on all new assessments and charges that come due after the payment plan begins.
Failure to remain current may constitute default under this Policy.

9. Monetary Penalties, Interest, and Administration Costs

During an approved payment plan, the owner may make partial payments without
accruing additional monetary penalties on the covered delinquent amount.

For purposes of this Policy, monetary penalties do not include reasonable costs
associated with administering the payment plan or interest, as provided by
Texas Property Code Section 209.0062.

10. Default

An owner defaults under a payment plan if the owner:

a. Fails to make a required installment payment by the due date;
b. Fails to remain current on new assessments or other charges as required by
   the approved plan;
c. Submits a payment that is returned or rejected; or
d. Fails to comply with any other material term of the written payment plan.

After default, the Association may terminate the payment plan and proceed with
collection activity allowed by the governing documents and applicable law.

11. No Waiver

Approval of a payment plan does not waive the Association's lien rights,
collection rights, remedies, or ability to enforce the governing documents.
The Association's acceptance of a partial payment does not waive any balance
owed unless the Board expressly agrees in writing.

12. Records

The Association will maintain records of payment plan requests, approvals,
denials, payment schedules, owner communications, payments received, and any
default determination.

13. Filing in County Records

The Association will file these guidelines in the real property records of each
county in which the subdivision is located, as required by Texas Property Code
Section 209.0062.

14. Board Adoption

This Payment Plan Policy was adopted by the Board of Directors of
[Association Name] at a properly noticed board meeting held on [Date].

BOARD OF DIRECTORS:

Signature: _______________________________
Name/Title: ______________________________
Date: ____________________________________

Signature: _______________________________
Name/Title: ______________________________
Date: ____________________________________