HOA Special Assessments in Texas: What Every Dallas Buyer Must Know Before Closing

What is an HOA special assessment, and how do you protect yourself as a buyer in Dallas?

A special assessment is a one-time charge levied on all HOA members when the association's reserve fund can't cover a major repair or capital project — a new roof, a repaved parking deck, a pool rebuild, or structural remediation. In Texas, the resale certificate required under Property Code Chapter 207 discloses the reserve fund balance and any pending assessments, but it doesn't tell you whether the fund is adequately funded for the years ahead. In 2026, 74% of HOA-governed communities nationwide are financially underprepared, and HOA-related foreclosure filings jumped roughly 40% year-over-year in Q1 2026. For buyers in Plano, Frisco, McKinney, and Uptown Dallas, checking reserve fund health during your option period is as critical as the inspection report.

By Paul Blair | August 13, 2026

If you're buying in a Dallas master-planned community — Stonebridge Ranch, Craig Ranch, any of the Frisco subdivisions, or an Uptown condo — you have an HOA. And right now, that HOA's financial health matters more than it did five years ago.

HOA-related foreclosure filings jumped roughly 40% in Q1 2026 compared to two years earlier. Industry data shows 74% of HOA-governed communities nationwide are financially underprepared for accumulated repair costs. Insurance premiums for HOA associations rose 11–25% for more than half of all communities in 2025 and 2026, and that cost lands directly on your dues — or triggers a special assessment.

A special assessment isn't a fine or a penalty. It's a one-time bill sent to every homeowner in the community when the HOA's reserve fund runs out and an urgent project can't wait. In single-family HOA communities across Plano, Frisco, and McKinney, typical special assessments run $1,000–$5,000 per household. In Uptown condos or high-density buildings with shared structures, they can run $20,000–$50,000 or more per unit when major structural or mechanical work is needed.

The buyer who doesn't look at reserve fund health before closing can find that bill waiting for them ninety days later.

What Texas Law Requires Sellers to Disclose

Texas Property Code Chapter 207 requires sellers in HOA communities to provide a resale certificate before closing. The seller pays for it — capped at $375 under Texas law — and must deliver it within 10 business days of your request. It's valid for 60 days.

What the resale certificate must disclose:

• Current monthly and annual assessment amounts
• Any unpaid special assessments attached to the property
• Any pending capital contributions or transfer fees
• The association's operating budget
• Reserve fund balance
• Any pending litigation involving the HOA
• Any lease or rental restrictions

That's a meaningful list. But here's what it doesn't tell you: whether the reserve fund balance is adequate for the repairs ahead.

A fund balance of $400,000 sounds healthy. If the HOA has 200 units and the reserve study says $2 million in deferred maintenance, that same $400,000 is critically underfunded. The resale certificate gives you the number. It doesn't give you the context.

That context lives in the reserve study — a separate document you need to request directly.

Read more about the full set of HOA documents to review before closing in Texas.

The Reserve Fund Percentage That Matters Most

A reserve study projects a community's long-term repair costs against its current reserve savings. Industry standard thresholds:

• 70% or above: Healthy. The HOA is accumulating reserves at a reasonable pace relative to its projected repair timeline. Low special assessment risk.
• 30–70%: Caution zone. Not immediately alarming, but ask for the reserve study, the age of major components (roof, elevators, pavement, pool equipment), and whether dues have increased recently.
• Below 30%: Red flag. A special assessment is likely in the near term. Get the full reserve study and meeting minutes before you proceed.

Texas doesn't require HOAs to maintain a reserve fund or conduct reserve studies — that's governed by the HOA's own governing documents. Not every community has a current study. If the HOA can't produce one, that absence is itself a red flag.

A reserve study should be less than 3 years old to be useful. An older study in a community with aging infrastructure is worth roughly as much as a 5-year-old roof inspection in storm country.

What DFW Buyers Need to Watch For

Plano and Richardson: Many neighborhoods have no HOA at all, or a voluntary association with minimal fees. Where HOAs do exist, dues often cover landscaping and neighborhood amenity pools. Reserve study availability varies widely — ask for it on any HOA community.

Frisco and McKinney master-planned communities: Expect layered fees — a master association fee covering common amenities (pools, parks, trails), plus a subassociation covering your specific subdivision. Stonebridge Ranch and Craig Ranch in McKinney, and the larger Frisco master plans, typically charge both. Capital contribution fees at closing — often one-quarter to one-half of 1% of the sale price — are common at these communities. Read the resale certificate carefully.

Uptown Dallas and Downtown condos: This is the highest-risk category. Condo communities share structural systems — elevators, roofs, parking decks, plumbing stacks — and when they fail, the cost hits every unit. Fannie Mae and FHA condo approval programs both require adequate reserves and an NRSS-compliant reserve study. If the condo project doesn't meet these requirements, your lender may not be able to fund your loan at all.

If you're buying a condo in Dallas, read about the Fannie Mae rules that took effect in 2026 and what they mean for your financing.

McKinney and Frisco high-rise and villa communities: These communities tend to have stronger governance and more current reserve studies. But the individual unit price point means a special assessment carries real dollar weight. A $20,000 per-unit assessment in a building with a $600,000 average unit is a 3.3% swing on your purchase price — on top of everything else you've already committed.

Want to know if the HOA on a property you're considering is financially healthy?

I can pull the resale certificate, review the reserve study, and flag anything that needs a second look before your option period expires. Contact me here.

What to Do During Your Option Period

The TREC option period is your primary protection as a Texas buyer. Once you're under contract, you have a negotiated window — typically 5–10 days in DFW's current market — to review the property and terminate for any reason by forfeiting only your option fee.

During that window, here's what to do on the HOA side:

1. Request the resale certificate immediately. You or your agent submits the request to the HOA or its management company. The seller has 10 business days to deliver it.
2. Request the reserve study and last 12 months of meeting minutes. The resale certificate won't always include these — request them separately from the HOA management company.
3. Review the reserve fund percentage. Below 30%: reconsider or negotiate a price reduction. 30–70%: dig deeper before proceeding. 70% and above: proceed with normal diligence.
4. Check for pending special assessments not yet levied. Board meeting minutes sometimes reveal votes on upcoming assessments that haven't been formally invoiced yet — and won't appear in the resale certificate.
5. Factor dues into your DTI. Your lender will count HOA dues in your debt-to-income calculation. For multi-association communities in Frisco or McKinney, total dues can add $200–$500 per month to your payment profile.

One more distinction worth knowing: if you're buying a condo rather than a single-family home in an HOA community, Texas Property Code §82.156 gives you a separate 5-day statutory right to cancel after receiving the resale disclosure documents. This is independent of your option period — you can terminate without penalty during those 5 days. That protection doesn't exist for single-family HOA buyers; your negotiated option period is the only exit ramp.

Here's how the Texas option period works and how buyers in Dallas typically use it.

Frequently Asked Questions

What is a special assessment in an HOA?

A special assessment is a one-time charge levied on all homeowners in an HOA community to cover costs the reserve fund can't handle — typically a major repair or capital improvement. Unlike regular dues, special assessments can arrive with little advance notice. In Texas HOA communities, amounts typically run $1,000–$5,000 for single-family communities and $20,000–$50,000 or more for condo buildings with major structural work.

Does the Texas resale certificate tell you if an HOA is underfunded?

The resale certificate required under Texas Property Code Chapter 207 discloses the reserve fund balance, but it doesn't tell you whether that balance is adequate. To evaluate reserve fund health, you need the reserve study — a separate document showing the HOA's projected repair costs against current savings. Request it alongside the resale certificate during your option period.

Can an HOA in Texas foreclose on my home over unpaid dues or assessments?

Yes. Texas law gives HOAs the right to place a lien on your property for unpaid assessments and, under certain conditions, to foreclose on that lien. An HOA must provide two notices before filing a lien and can file 90 days after the second notice. Once the property is sold through foreclosure, the former owner has 180 days to redeem it by paying the outstanding amount plus costs. This is why buying into a financially healthy HOA matters — and why paying dues on time once you own is non-negotiable.

How do HOA dues affect my mortgage approval in Dallas?

Lenders include HOA dues in your debt-to-income (DTI) ratio calculation. In master-planned communities in Frisco or McKinney where you pay both a master association fee and a subassociation fee, total dues can run $300–$600 per month — and that figure counts the same as any other monthly debt. For condo buyers, lenders also evaluate the condo project's Fannie Mae or FHA approval status, which depends partly on reserve fund adequacy. An underfunded condo HOA can disqualify the project entirely from conventional financing.

How do I find an agent in Frisco or McKinney who knows HOA communities well?

Work with an agent who actively transacts in these communities and has navigated HOA diligence enough times to know which management companies are responsive, which reserve studies are credible, and where the soft spots tend to be. In Plano, Frisco, and McKinney specifically, that means someone who has closed deals inside Stonebridge Ranch, Craig Ranch, and the major master-planned subdivisions — and who knows how to read a reserve study before your option clock runs out. I'm happy to walk you through the HOA side before you make an offer.

The bottom line: HOA health is a balance sheet question, not a rule-book question. The CC&Rs and bylaws tell you what you can and can't do with your fence. The reserve study tells you whether a five-figure bill is coming. In 2026's market — where 74% of HOAs are underfunded and filings are up 40% year-over-year — reading that study before your option period expires is non-negotiable.

If you're under contract on a property in Plano, Frisco, McKinney, or Uptown Dallas and want a second set of eyes on the HOA financials, I'm here. Let's talk.

About Paul Blair

Paul Blair is the founder and broker of Grey Square, a virtual real estate brokerage representing buyers and sellers across Dallas and Los Angeles. With 22 years in the business and more than $200 million in closed transactions, Paul works the full range of the market, from luxury homes in the Park Cities and Preston Hollow to estates in the Hollywood Hills and across the Westside. Connect with Paul and the Grey Square team at greysq.com. TX TREC #9011505 · CA DRE #01792671.