HOA and condo association loans in Texas
We place loans for Texas community associations, from $100,000 with no set maximum, and your board pays nothing unless the loan closes. What Texas law gives your board depends on whether you are a condominium or a homeowners association, and on the question boards actually care about, the two chapters are not alike.
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Which Texas rules apply to your association
Texas governs condominiums and homeowners associations under different chapters of the Property Code, and on borrowing the difference is not cosmetic.
Chapter 82, the Uniform Condominium Act, gives a condominium association's board the power to borrow by resolution and to pledge future assessments as security.
Chapter 209, the Residential Property Owners Protection Act, does not grant that power. What it does is govern how the decision has to be taken, and what an association may pledge.
Both are set out below. Your declaration will tell you which you are.
Condominium associations, Chapter 82
Budgets, including reserves, are your board's to set. Chapter 82 lets the association, acting through its board, adopt and amend budgets for revenues, expenditures and reserves, and collect assessments for common expenses from unit owners. The statute leaves the amount to your board and your declaration.
Your board may also borrow by resolution. The association, by resolution of the board of directors, may borrow money and may assign as collateral the association's right to future income, including the right to receive assessments, and the association's lien rights.
That is a materially different starting point from some states. A Texas condominium board does not begin by asking the statute for permission to borrow. It begins by reading its own documents.
Your declaration can override it. If a dedicatory instrument requires a vote of the members to borrow money or to assign that income or those lien rights, the loan has to be approved the way the instrument says. Your board may decide whether that vote is cast electronically, by absentee ballot, in person or by proxy at a meeting called for the purpose, or by written consent.
Tex. Prop. Code § 82.102(a)(2), (f) and (g). Verified 19 September 2026 against codes.findlaw.com, current as of 1 January 2026.
Homeowners associations, Chapter 209
Chapter 209 comes at this from the other end. It does not hand your board a borrowing power the way Chapter 82 does. It tells you how the decision has to be taken, and what you may pledge.
The decision has to be made in the open. Your board may not consider or vote on lending or borrowing money except in an open meeting for which owners were given prior notice. The same applies to approving or amending the annual budget, to increases in assessments and to levying special assessments, and to the construction of capital improvements other than the repair, replacement or enhancement of existing ones.
Read that list together and it describes most of a funding decision. In Texas an HOA board cannot assemble one privately and present it finished.
Receivables may be pledged, and only for a loan. An association may not sell or otherwise transfer any interest in its accounts receivable for any purpose other than as collateral for a loan. The prohibition is written so that pledging them to secure a loan is the thing it leaves open.
Where the power itself comes from is a question for your own documents. Chapter 209 does not say, and this page will not guess. Your declaration, your bylaws and your association's corporate form are what settle it, and your attorney is the person who can tell you which of them governs.
Tex. Prop. Code § 209.0051(h) and § 209.0064(e). Verified 19 September 2026 against codes.findlaw.com, current as of 1 January 2026. All 40 sections of Chapter 209 were read; these are the two that bear on borrowing.
What a lender will look for
Whatever your documents require of you, an underwriter reading your file will want to see a current reserve study and a funding plan behind the number you are asking for. A board that can produce both presents a stronger case than one that cannot, and that is true in Texas regardless of what the Property Code obliges you to hold.
Describes lender practice rather than Texas law. Not a statutory requirement.
This section summarizes Texas law as of 1 January 2026, read from the statutes themselves rather than from secondary sources. We place loans and we do not practice law, so treat this as general information and confirm with your association’s attorney how it applies to your community.
Boards also ask
Should we take a loan or levy a lump sum special assessment?
They fund the same project and feel completely different to owners. A lump sum special assessment asks every owner for a large payment at once, which is where boards meet the hardest resistance and where owners on fixed incomes get hurt. A loan spreads the same cost over years, so the monthly impact per unit is far smaller, and it does not depend on every owner having cash available. The tradeoff is interest: over the life of the loan you pay more in total. Some communities are better served by a phased project or a smaller assessment paired with a smaller loan. We model all of them side by side so your board decides with the same numbers in front of everyone.
Why do associations borrow money?
To fund major capital projects, cover emergency repairs, or avoid a lump sum special assessment that asks every owner for a large payment at once. Waiting is also a decision — deferred work rarely gets cheaper, and an unsafe condition can force the timeline for you.
How do we get an HOA loan?
Five steps. You tell us about the project and send your financials; we review what your association can realistically support and confirm your borrowing authority; we take your project to the lenders most likely to approve a community like yours and bring back competing proposals; your board selects one and completes the approval process your documents require; the loan closes and funds draw as the work proceeds. Most boards spend a few hours of their own time across the whole process. From application to closing it usually runs 30 to 90 days.
HOA lending is all we do.
We strategize, organize, and place your loan where it’s most likely to succeed.
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