KATY – A Katy homeowner says a new policy adopted by the Sunterra Homeowners Association is adding thousands of dollars in annual costs for residents who rent out their homes, and he’s now questioning whether the HOA has the authority to impose the fee after he purchased his property.
Bernard Ukbu says he and his wife bought two homes in the Sunterra master-planned community as investment properties after reviewing the community’s governing documents, which permitted homeowners to lease their homes under certain conditions.
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Now, he says a new HOA policy announced in an email to homeowners is changing the financial equation.
According to the email, homeowners who lease their properties will be required to pay a $1,000 annual leasing fee. The policy also includes new leasing requirements, including minimum 12-month lease terms, tenant registration and lease documentation.
Ukbu says the new fee comes in addition to the community’s $1,200 annual assessment and a required internet fee.
“If this were already in place before we purchase the house, then I would make the decision whether I want to move forward or not,” Ukbu said. “But this is new. So to me, it’s really distressful.”
Homeowner says he followed existing HOA rules
Ukbu said he purchased the homes with the understanding that rentals were permitted as long as owners complied with the HOA’s governing documents.
He says he uses written leases, requires tenants to follow the community’s rules and pays for professional lawn maintenance to ensure the property complies with HOA standards.
“Everything they are saying here, I’m already doing,” Ukbu said. “So the question is, why would I pay $1,000 to do what I’m already doing?”
According to the HOA’s email, the annual leasing fee is intended to cover administrative costs associated with the community’s leasing program, including tenant registration, amenity access and HOA compliance. The email also states the fee may be adjusted over time as administrative requirements change.
Ukbu says he understands the HOA’s goal of addressing rental-related concerns but believes responsible landlords should not bear additional costs because of violations committed by others.
Attorney says governing documents are key
Houston real estate attorney David Kahne, who is not involved in the dispute, says whether an HOA can impose a fee like this depends on the community’s governing documents, commonly known as deed restrictions or CC&Rs.
“The primary way to control HOA fees comes from your deed restrictions,” Kahne said.
Kahne also noted that charging rental property owners differently than owner-occupied homes is not something he commonly encounters.
“I’ve never actually seen a subdivision where the charges are different between people who own their homes or who rent their homes,” Kahne said. “I would want to look very carefully at the deed restrictions to see if that unequal treatment is authorized.”
He says homeowners concerned about HOA assessments should carefully review those governing documents, which may explain how assessments are approved and whether homeowners have voting rights on certain increases.
If homeowners disagree with decisions made by an HOA board, Kahne says they can organize with neighbors, participate in board elections or consult an attorney if they believe the association exceeded its authority.
HOA response
KPRC 2’s Joy Addison reached out to the Sunterra Homeowners Association to ask about the new leasing fee, how the amount was determined and whether homeowners had an opportunity to weigh in before the policy was adopted.
As of publication, the HOA had not responded.
What homeowners should know before buying into an HOA
Real estate attorney David Kahne says homeowners should carefully review an HOA’s governing documents before purchasing a home because they outline:
- Whether rentals are allowed
- How HOA assessments are determined
- Whether assessment increases require a homeowner vote
- The authority granted to the HOA board
- Any limits on assessment increases
Those documents can help homeowners understand how future policy changes and fees may affect their property.