Are you comparing neighborhoods in Montgomery County and wondering whether an HOA or a POA fits you better? You are not alone. Many buyers hear both terms when touring homes in Conroe, The Woodlands, Montgomery, and surrounding areas. In this guide, you will learn what HOA and POA really mean in Texas, how fees and rules work, what to look for in resale documents, and local tips that protect your budget and peace of mind. Let’s dive in.
HOA vs. POA in Texas
Both a Homeowners Association (HOA) and a Property Owners Association (POA) are private membership organizations that enforce community covenants and maintain shared areas. In everyday use, HOA is more common for single-family neighborhoods and condos. POA often appears in larger or mixed-use developments. In practice, the differences are mostly organizational rather than legal.
Under the Texas Property Code, associations have powers to collect assessments, adopt rules, levy fines, and record liens. Some procedures are tightly regulated, including notice and foreclosure rules. You can explore relevant statutes in the Texas Property Code. For plain-language guidance, TexasLawHelp offers consumer resources on HOA and POA topics.
Boards of directors, elected by owners, run the association within the governing documents. These include the Declaration or CCRs, bylaws, rules and regulations, and architectural guidelines. Your rights and obligations flow from these documents and state law.
Costs and fees you should expect
Regular and special assessments
- Regular assessments: Paid monthly, quarterly, or annually. These fund operations and, in some cases, amenities.
- Special assessments: One-time fees for large projects or shortfalls. These can be a few hundred to several thousand dollars depending on the issue.
Typical annual dues in Montgomery County vary by community type and amenities:
- Low-amenity HOA or POA: about $150 to $600 per year
- Amenity-rich or smaller master association: about $600 to $1,800 per year
- High-amenity or country club communities: $1,200 to $3,000+ per year
Always verify current amounts for the specific neighborhood you are considering.
Closing and administrative fees
- Resale certificate or estoppel fee: commonly $100 to $400. Associations can charge a reasonable preparation fee subject to state rules.
- Transfer, move-in, gate access, or amenity key fees: policies vary by community.
- Fines and late fees: applied for rule violations or delinquent assessments.
Texas regulates resale disclosures and timelines through the Texas Property Code. Title companies usually request these early to avoid closing delays.
How fees impact your budget
Recurring dues affect your monthly carrying costs and, in some cases, lender underwriting. Special assessments can create unexpected costs if reserves are low or major repairs are needed. Also factor in property taxes and MUD taxes, which are separate from HOA or POA dues.
Many newer Montgomery County neighborhoods are served by Municipal Utility Districts that fund water, sewer, drainage, and roads. Learn how MUDs work on the Texas Commission on Environmental Quality site, and visit the Montgomery County website to research local taxing entities.
Resale certificates and smart due diligence
What your resale packet includes
A resale certificate or disclosure packet typically provides:
- Current assessment balance for the property
- Regular assessment amount and frequency
- CCRs, bylaws, rules, and architectural guidelines
- Budget, recent financials, and any reserve study
- Insurance summary and deductibles
- Fines, violations, or pending enforcement
- Any litigation, approved or pending special assessments
- Recent board actions or meeting minutes when available
Timing and fees in Texas
State law sets deadlines for delivering required disclosures and allows reasonable preparation fees. Turnaround can take several business days. Request the packet early in your contract period so you have time to review and act if something concerns you. The Texas Property Code outlines these requirements.
Your buyer checklist
Use this checklist to protect your interests:
- Resale certificate or estoppel letter
- CCRs, bylaws, articles, and community rules
- Current budget, financials, and reserve study if available
- Regular dues, assessment history, and any planned increases
- Special assessments: approved, pending, or discussed
- Board meeting minutes from the last 6 to 12 months
- Insurance coverage summary and owner responsibilities
- Notices of upcoming votes or controversial issues
- Architectural approvals or violations tied to the property
- Any litigation by or against the association
- Contact details for the manager or board
- MUD details: tax rate and bonds via TCEQ resources
Pro tip: Order the resale packet as soon as you go under contract.
Rules, enforcement, and amenities
Common rules you will see
- Exterior changes require ARC approval: roof, paint, fences, pools, additions
- Landscaping standards and maintenance
- Parking rules: street parking, commercial vehicle, boat and RV storage
- Pet rules: size, number, leash requirements
- Leasing rules: minimum lease terms, rental caps, registration
- Noise, trash container placement, signage, seasonal displays
- Short-term rental restrictions in some communities
How enforcement works
- Warning or cure notices
- Fines and administrative penalties, sometimes daily for continuing issues
- Suspension of amenity access for certain violations or delinquency
- Liens for unpaid assessments and, in rare cases, foreclosure per state law and governing documents
- Mediation or alternative dispute resolution if provided in the documents
Amenities and service models
Montgomery County offers a wide range of community types:
- Basic POAs: entry landscaping, drainage, and limited common area upkeep
- Amenity associations: pools, playgrounds, courts, clubhouses, trails
- Master-planned communities: a master association plus subassociations for villages or sections. Dues can exist at both levels.
The Woodlands is unique. The Woodlands Township provides many public services and coordinates with private associations. Depending on the area, you may pay Township assessments or taxes along with HOA or POA dues. This setup can change how services and costs are shared.
Local nuances and red flags
MUD taxes and bonds
MUD taxes are separate from HOA or POA dues and appear on your property tax bill. Confirm whether a property is in a MUD, the current tax rate, and any outstanding or proposed bonds. The TCEQ offers background on special districts. You can also explore county-level information for taxing entities on the Montgomery County site.
Multiple layers of governance
Some neighborhoods have a master association and one or more subassociations. Each layer can have its own dues, rules, budgets, and reserves. Verify all associations that apply to your property.
Litigation or deferred maintenance
Read board minutes and financials for signs of major repairs, reserve shortfalls, or disputes. Pending litigation and large capital projects can lead to special assessments. Check your declaration to understand how special assessments are approved.
Leasing limits if you plan to rent
If you intend to rent the property, study leasing rules closely. Many communities regulate lease terms, the number of rentals, and registration. Short-term rental rules can be more restrictive.
Offer timeline and smart steps
Pre-offer
- Confirm whether the property has an HOA or POA and identify any master association
- Ask for the current dues, frequency, and whether there are pending or recent special assessments
- Check if the property is in a MUD and note the current MUD tax rate
- Ask the listing side or manager about resale packet cost and turnaround time
During the option or contingency period
- Order the resale packet immediately
- Review CCRs, rules, budget, reserves, minutes, insurance summaries, and litigation disclosures
- Verify any pending special assessments, fee increases, or amenity changes
- If concerns arise, discuss negotiation options such as price credits, repairs, or conditions to clear liens
Before closing
- Confirm a final estoppel showing no unpaid assessments or new liens
- Note when your next dues payment is due and how to set up payment
- Confirm amenity access steps, such as gate fobs or pool keys
The bottom line for Montgomery County buyers
You will see both HOA and POA in listing remarks and community signs across Montgomery County. The label matters less than the specifics: the dues, the rules, the reserves, and whether there are MUD taxes or multiple association layers. When you request the resale packet early and read it closely, you protect your budget and avoid surprises. With a clear plan, you can choose the neighborhood that fits your lifestyle and long-term goals.
Ready to compare communities and decode HOA or POA documents with confidence? Reach out to Unknown Company for local guidance, a steady process, and clear next steps.
FAQs
What is the difference between an HOA and a POA in Texas?
- Both are private associations that enforce community rules and collect assessments. The terms are often used interchangeably, though POA may be used in larger or mixed-use developments.
What does a Texas resale certificate include for HOA or POA homes?
- It lists dues, account status, rules, budgets, reserves, insurance, violations, litigation, and any planned or approved special assessments.
How much are HOA or POA dues in Montgomery County?
- Dues vary widely. Expect roughly $150 to $600 for basic neighborhoods and $600 to $1,800 or more for amenity-rich areas, with premium communities at $1,200 to $3,000+.
Are MUD taxes the same as HOA or POA dues?
- No. MUD taxes are separate property taxes used for water, sewer, drainage, and roads. Learn more through the Texas Commission on Environmental Quality.
Can an association foreclose in Texas for unpaid assessments?
- Foreclosure is possible in limited cases subject to the Texas Property Code and the association’s governing documents, but it is generally a last resort.
