What Texas Property Code Chapters 82 and 209 require for condo audits, HOA records, management certificates and franchise tax, plus federal filings and year-end readiness, with dates for your fiscal year.
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Texas property owners' associations under Chapter 209 must keep and produce records but aren't required by statute to have an audit or review. Your dedicatory instruments usually set the level.
Adopt the budget under your bylaws before the fiscal year begins. Details →
Issue Form 1099-NEC to unincorporated vendors (landscapers, handymen, attorneys of any entity type) paid $600 or more during the calendar year. Details →
Most HOAs and condo associations file Form 1120-H, which taxes only non-exempt income (interest, rentals to non-owners, laundry or cell tower income) at a flat 30%, if at least 60% of gross income is member assessments and 90% of spending is for association property. Details →
POAs record a management certificate in each county where the property sits, with the association's name, mailing address and management contact. Details →
Texas treats condominiums and property owners' associations differently.
Keep detailed financial records under generally accepted accounting principles, sufficient to prepare resale certificates, and obtain an independent audit every year. Make copies available to unit owners.
Property owners' associations must adopt and record a records production and copying policy and a records retention policy, and must respond to owner record requests within the statutory time frames.
Texas doesn't mandate reserve studies for most associations. Budget rules come from your governing documents.
Adopt the budget under your bylaws before the fiscal year begins. Owners can request it under the association's records policy.
Texas has no general reserve study requirement, but resale certificates disclose reserves, so a current study helps sellers and buyers.
Every year-end step and document your CPA will ask for, plus Texas's reporting and reserve rules, on two printable pages.
Associations are taxable corporations unless they qualify for an election or exemption. Most file a federal return every year even when little or no tax is due.
Most HOAs and condo associations file Form 1120-H, which taxes only non-exempt income (interest, rentals to non-owners, laundry or cell tower income) at a flat 30%, if at least 60% of gross income is member assessments and 90% of spending is for association property. The alternative is Form 1120 with a Rev. Rul. 70-604 election, which can be cheaper when there is a surplus to roll over. It is due the 15th day of the 4th month after year-end, with a 6-month extension available.
Texas has no income tax, but associations are taxable entities for franchise tax unless exempt. Nonprofit homeowners associations can qualify for exemption and should apply to the Comptroller.
Issue Form 1099-NEC to unincorporated vendors (landscapers, handymen, attorneys of any entity type) paid $600 or more during the calendar year. Collect W-9s when you hire vendors, not in January.
Texas associations have filing duties in county records.
POAs record a management certificate in each county where the property sits, with the association's name, mailing address and management contact. Update it within 30 days of any change.
Chapter 209 limits how associations collect delinquent assessments, including offering payment plans and specific notice before referral to collections or foreclosure. Keep collection records in the order the law requires.
These are the items your CPA will ask for first. Having them ready shortens the engagement and lowers the fee.
Bank and investment reconciliations for every operating and reserve account at year-end, with statements. Reserve funds should be held separately and match the reserve balance on the books.
An owner-by-owner aging of delinquent assessments, liens and collection status, plus assessments owners paid in advance (a liability, not income).
Major vendor contracts (management, landscaping, insurance), unpaid invoices at year-end, and support for any large repair or capital project.
The current reserve study. GAAP statements for associations include supplementary information on future major repairs and replacements, which comes from it.
Minutes approving the budget, special assessments, reserve transfers and major contracts, plus the governing documents' rules on financial reporting.
Condominiums under Chapter 82 need an annual independent audit. Property owners' associations under Chapter 209 don't by statute, but their governing documents often require one.
Not if they qualify for and obtain the homeowners association exemption from the Comptroller.
A filing in county property records that tells owners and buyers who the association is and how to reach it. It must be updated within 30 days of changes.
Download the HOA Year-End Financial Checklist (PDF).
Greywood CPA works with association boards and managers across Texas, with fixed, transparent pricing and statements delivered on time for your owners.
See our Texas servicesThis guide is general information as of October 2026 and is not legal or tax advice. Statutes change and your declaration, bylaws or offering plan may require more than state law. Confirm your obligations with your association attorney and CPA.