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BillD16 (Texas)
Posts: 971
Posted:
Our Board has decided to ban STRs from the neighborhood, claiming that they are businesses and thus not allowed.

Our governing docs contain exactly two items remotely related to the topic:


CCRs: 4.1 General. The Property shall be improved and used solely for single-family residential use, including related or ancillery uses approved by Declarant, including Common Areas, utility easements, and recreational facilities. "Single-family" shall mean a group of persons related by blood, marriage or adoption and shall also include foster children and domestic servants.


R&Rs: 1. To the extent leasing is authorize under other dedicatory instruments, in addition to any other information required by any dedicatory instrument to be provided regarding leasing, the following infomration must e provided to the Association within sever days of the owner entering into any lease for the owner's property:

- contact information (name, address, etc).

- commencement date and term of lease.


Not much there. I believe that Tarr v. Timberwood Park Ownrs Ass'n, 556 S.W.3d 274, 279 (Tex.2018) calls bullshit on STRs being businesses.

It seems to me like all our HOA can do is attempt to amend the CCRs with a 67% owner vote (not likely). *shrug* or am I wrong?

[I have zero interest in STRs. My interest in this matter is primarily because I don't want to see the HOA waste a lot of money defending / losing a lawsuit. Plus I think it's stupid for the HOA to even take this on, since it is the latest salvo in a neighbor-neighbor dispute. And the City of Austin has already regulated the hell out of the STR industry around here].

{1} https://law.justia.com/cases/texas/supreme-court/2018/16-1005.html#:~:text=The%20Supreme%20Court%20reversed%2C%20holding,violate%20the%20restrictive%20covenants%20by

Bill

HOA Board ex-President
Austin, Texas USA

“You can’t put too much water in a nuclear reactor”
ElleN (Idaho)
Posts: 1,334
Posted:
Quote:
Posted By BillD16 on 06/28/2025 12:07 PM
Our Board has decided to ban STRs from the neighborhood, claiming that they are businesses and thus not allowed.

Our governing docs contain exactly two items remotely related to the topic:


CCRs: 4.1 General. The Property shall be improved and used solely for single-family residential use, including related or ancillery uses approved by Declarant, including Common Areas, utility easements, and recreational facilities. "Single-family" shall mean a group of persons related by blood, marriage or adoption and shall also include foster children and domestic servants.


R&Rs: 1. To the extent leasing is authorize under other dedicatory instruments, in addition to any other information required by any dedicatory instrument to be provided regarding leasing, the following infomration must e provided to the Association within sever days of the owner entering into any lease for the owner's property:

- contact information (name, address, etc).

- commencement date and term of lease.


Not much there. I believe that Tarr v. Timberwood Park Ownrs Ass'n, 556 S.W.3d 274, 279 (Tex.2018) calls bullshit on STRs being businesses.
I skimmed the Tarr v. Timberwood Texas Supreme Court decision. I did a cursory check of subsequent decisions that reference Tarr. So far, I agree with you. I would expect the HOA to lose a court case where it tried to enforce this rule.

Even if the covenants were amended by a proper vote, the amendment might not be enforceable against all owners. Grandfathering might be necessary, for one.

From time to time this forum has reviewed the case law nationwide on the subject of whether STRs are commercial businesses that covenants might prohibit. My recollection is that once in awhile, appeals courts do rule thusly (meaning against the STR owner).

If I recall correctly, who wins any given dispute over STRs is location and circumstance specific. On the other hand, to the best of my memory of where things stand with other states, the 2018 Texas Supreme Court's reasoning is not unusual.

If you want advice on how to proceed: Find a discrete and humble way to tell the board to consult the HOA attorney. Explain you are not an attorney but you think the Tarr decision seems like a worthwhile read in preparation for a meeting with an attorney. A really good writer would send a short, emotion-free letter quoting like three sentences from the Tarr decision and asking the board to consult an attorney. The Tarr decision is that easy to read. I rarely say this about case law.

Perhaps there are some Texas law firm sites that speak to this as well, using layperson-ese instead of legal-ese. I will take a look.
ElleN (Idaho)
Posts: 1,334
Posted:
Quote:
Posted By ElleN on 06/28/2025 12:54 PM

Perhaps there are some Texas law firm sites that speak to this as well, using layperson-ese instead of legal-ese. I will take a look.
See

https://www.hoalegal.com/blog/legal-implications-of-short-term-rentals-in-hoa-communities/

https://silblawfirm.com/real-estate-law/texas-appeals-court-supports-hoas-new-rules-restricting-short-term-rentals/

https://www.realestateinaustin.com/blog/strs-and-hoas/

https://www.daughtryfarine.com/blog/2022/12/can-a-texas-hoa-restrict-short-term-rentals/
BillD16 (Texas)
Posts: 971
Posted:
Quote:
Posted By ElleN on 06/28/2025 1:05 PM
Posted By ElleN on 06/28/2025 12:54 PM

Perhaps there are some Texas law firm sites that speak to this as well, using layperson-ese instead of legal-ese. I will take a look.
See

https://www.hoalegal.com/blog/legal-implications-of-short-term-rentals-in-hoa-communities/

https://silblawfirm.com/real-estate-law/texas-appeals-court-supports-hoas-new-rules-restricting-short-term-rentals/

https://www.realestateinaustin.com/blog/strs-and-hoas/

https://www.daughtryfarine.com/blog/2022/12/can-a-texas-hoa-restrict-short-term-rentals/

Thank you!!! That's some Good Stuff - I just browsed the daughtryfarine.com article and it's quite a nice discussion!

Oh - FWIW, a couple of months ago I *did* take one of the Board members aside and told him that I had concerns about limiting STRs, especially via a "no businesses allowed" argument. He heard me out and then either forgot all about it or just blew me off because I'm not a lawyer and "what does this guy know, anyway?!"

BTW: it's not like my neighborhood is overrun with STRs. It's about 600 SFH, and there are 2, maybe 3 STRs. And over the years, I'm concluding that one of the biggest problems our HOA has is "appropriate targeting": one or two people complain about something, and the Board goes crazy trying to fix it. Meanwhile, numerous issues that concern large numbers of homeowners go ignored. Oh well.

(again, thank you!)

Bill

HOA Board ex-President
Austin, Texas USA

“You can’t put too much water in a nuclear reactor”
ElleN (Idaho)
Posts: 1,334
Posted:
Quote:
Posted By BillD16 on 06/28/2025 1:26 PM
FWIW, a couple of months ago I *did* take one of the Board members aside and told him that I had concerns about limiting STRs, especially via a "no businesses allowed" argument. He heard me out and then either forgot all about it or just blew me off because I'm not a lawyer and "what does this guy know, anyway?!"
This thread is just a few posts old. But it is already at a very high level of discussion that is well beyond laypeople. Most HOA directors would not understand what you and I are discussing without having an enormous foundation in the law of covenants and land use. You have a good foundation. So do I. But that's after a lot of years of reading and talking about covenants and land use law.

Locating the Tarr decision was good work by you. From past experience here, I was not expecting something so on point.

Considering preparing yourself for the board to ignore your input. After all, all you can do is lead them to water (whence they may or may not drink). More often than not people learn only by direct, negative experience.

That it is only two or three STRs out of 600 homes is not relevant, IMO. I was renting STRs in 2021 in nice suburban neighborhoods. If I were a neighbor, I would resent all the strangers and comings and goings.
LetA (Nevada)
Posts: 2,679
Posted:
Our lawyer told us a few years ago we did not need to ban STR's in our Covenants or R&R's because business are already prohibited
in our covenants along with the 6 mo min lease.

I suggested we add a STR ban, but the county ordnance already prohibits STR's in CIC's unless the CIC specifically
allows STR's via the covenants.
BillD16 (Texas)
Posts: 971
Posted:
Quote:
Posted By ElleN on 06/28/2025 1:40 PM
Posted By BillD16 on 06/28/2025 1:26 PM
FWIW, a couple of months ago I *did* take one of the Board members aside and told him that I had concerns about limiting STRs, especially via a "no businesses allowed" argument. He heard me out and then either forgot all about it or just blew me off because I'm not a lawyer and "what does this guy know, anyway?!"
This thread is just a few posts old. But it is already at a very high level of discussion that is well beyond laypeople. Most HOA directors would not understand what you and I are discussing without having an enormous foundation in the law of covenants and land use. You have a good foundation. So do I. But that's after a lot of years of reading and talking about covenants and land use law.

Locating the Tarr decision was good work by you. From past experience here, I was not expecting something so on point.

Considering preparing yourself for the board to ignore your input. After all, all you can do is lead them to water (whence they may or may not drink). More often than not people learn only by direct, negative experience.

That it is only two or three STRs out of 600 homes is not relevant, IMO. I was renting STRs in 2021 in nice suburban neighborhoods. If I were a neighbor, I would resent all the strangers and comings and goings.

You are very kind *blush*.

Re "only two or three STRs": I get it. What bugs me is that it is, essentially, extremely poor allocation of resources. There hasn't been any kind of massive outcry against STRs, and the one person who is most vocal about it is using STRs as an excuse to continue a neighbor feud that's been running for several years. But the Board is going to put time and money and effort into this matter. While we've got a long list of other items that involve large amounts of money and / or affect much larger numbers of people that are off collecting dust in the corner.

Bill

HOA Board ex-President
Austin, Texas USA

“You can’t put too much water in a nuclear reactor”
ElleN (Idaho)
Posts: 1,334
Posted:
Quote:
Posted By BillD16 on 06/30/2025 1:29 PM
the Board is going to put time and money and effort into this matter. While we've got a long list of other items that involve large amounts of money and / or affect much larger numbers of people that are off collecting dust in the corner.
Are you one of the STR landlords? If not, I think all you can do is send the board a concise, no snark, just the facts letter advising against any board-created STR rule. Maybe also arm the STR landlords with what you found (the Tarr decision and the web sites) at the appropriate time. The goal being to cut 'em (the board) off at the pass, before all manner of money is wasted on attorney's fees.
BillD16 (Texas)
Posts: 971
Posted:
Quote:
Posted By ElleN on 06/30/2025 1:50 PM
Posted By BillD16 on 06/30/2025 1:29 PM
the Board is going to put time and money and effort into this matter. While we've got a long list of other items that involve large amounts of money and / or affect much larger numbers of people that are off collecting dust in the corner.
Are you one of the STR landlords? If not, I think all you can do is send the board a concise, no snark, just the facts letter advising against any board-created STR rule. Maybe also arm the STR landlords with what you found (the Tarr decision and the web sites) at the appropriate time. The goal being to cut 'em (the board) off at the pass, before all manner of money is wasted on attorney's fees.

No, I'm not an STR landlord. Have you read Dan Simmons' _Ilium_? For this one, I'm up on Mount Olympus watching the Greeks and Trojans slug it out in the trenches.

Bill

HOA Board ex-President
Austin, Texas USA

“You can’t put too much water in a nuclear reactor”
ElleN (Idaho)
Posts: 1,334
Posted:
Huh. I think watching HOA disputes is more like being a member of the studio audience at the seasonal finale of "Survivor."
TerriS6 (California)
Posts: 3,284
Posted:
STRs are no more a business than long term rentals. The actual use of the property is still residential.

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