Relating to restrictions on residential leasing in property owners' associations.
Summary
HB 5407 would limit the ability of property owners' associations (POAs) to restrict residential leasing in Texas. The bill prohibits a POA from adopting or enforcing a dedicatory instrument or covenant that bars an owner from leasing a home for at least six months. It also prevents a POA from imposing occupancy limits on leased homes beyond the limits already allowed under Property Code Section 92.010.
In practical terms, the bill would protect a homeowner’s ability to rent out a property on a medium-term basis and would curb HOA-style rules that are more restrictive than state law on how many people may live in a leased residence. The bill applies to residential leasing in communities governed by property owners' associations and would amend Chapter 202 of the Property Code.
Impact
HB 5407 would add a new section to Chapter 202 of the Texas Property Code, creating a statewide restriction on POA authority over residential leases. It would invalidate or prevent enforcement of association rules that prohibit leases of six months or longer and would preempt association-imposed occupancy limits that exceed those already set by existing landlord-tenant law in Property Code Section 92.010. The bill would therefore affect homeowners, tenants, and property owners' associations by narrowing private covenant enforcement in residential communities.
Sentiment
The available record shows no committee testimony or recorded votes, so there is no direct evidence of support or opposition in the materials provided. Based on the bill’s text and caption, the measure appears aimed at expanding homeowner leasing flexibility and limiting association control, which is generally the kind of policy that can attract support from property owners and landlords while drawing concern from associations that prefer local rulemaking authority.
Contention
The main point of contention is likely to be the balance between individual property rights and association governance. Supporters would likely favor the bill because it prevents POAs from blocking longer-term residential leases and from imposing stricter occupancy rules than state law allows. Opponents, likely property owners' associations and some community governance advocates, may argue that the bill reduces their ability to maintain neighborhood standards, manage density, and enforce deed restrictions. No specific contested amendments or recorded objections are included in the provided history.