Community Housing in Texas e.g. Texas Human Resources Code Chapter 123

Started by RogerJ1 • 3 replies • 101 views

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RogerJ1 (Texas)
Posts: 550

Posted:

Is anyone here familiar with Texas Human Resources Code Chapter 123 and whether POA can enforce non-commercial restrictions against qualified businesses?

It looks like they cannot restriction against them as long as they are licensed by the state. If the restrictions were written or amended after 1985, The Texas Human Resources Code Chapter 123 voids such restrictions per " A restriction, reservation, exception, or other provision in an instrument created or amended on or after September 1, 1985, that relates to the transfer, sale, lease, or use of property may not prohibit the use of the property as a community home."

Does anyone know how it works in practice and if a POA has been able to deny community housing in Texas?

ElleN (Idaho)
Posts: 1,334

Posted:

Quote:

Posted By RogerJ1 on 12/07/2025 3:15 PM
Is anyone here familiar with Texas Human Resources Code Chapter 123 and whether POA can enforce non-commercial restrictions against qualified businesses?

In Texas, some HOAs have tried to argue that community homes are businesses and so the HOA's covenants prohibiting commercial activity apply to them. I cannot say these HOAs succeeded. See discussion here:

https://brucewmccollum.com/turning-your-home-into-a-group-home-why-hoas-can-be-a-barrier/

https://law.justia.com/cases/texas/fifth-court-of-appeals/2017/05-16-00783-cv.html

https://www.ppat200.com/uploads/4/8/7/0/48701511/fb1-fairhousing.pdf

Notable excerpt:

[I]n Texas the Community Homes for Persons With Disabilities Act (Chapter 123, Human Resources Code) forbids zoning or deed restrictions that block qualifying community homes—defined as facilities housing up to six individuals plus staff under nonprofit or state-approved programs. Texas Statutes+2Texas City Attorneys Association+2 These protections extend even if the HOA labels the group home as a “business.” In a notable appellate decision, a Texas HOA was forced to accommodate a group home for disabled residents despite CC&Rs to the contrary. Wikipedia+15independentamericancommunities.com+15PPAT+15

RogerJ1 (Texas)
Posts: 550

Posted:

Thanks

DeanJ
Posts: 1,786

Posted:

Quote:

Posted By RogerJ1 on 12/07/2025 3:15 PM
Is anyone here familiar with Texas Human Resources Code Chapter 123 and whether POA can enforce non-commercial restrictions against qualified businesses?

It looks like they cannot restriction against them as long as they are licensed by the state. If the restrictions were written or amended after 1985, The Texas Human Resources Code Chapter 123 voids such restrictions per " A restriction, reservation, exception, or other provision in an instrument created or amended on or after September 1, 1985, that relates to the transfer, sale, lease, or use of property may not prohibit the use of the property as a community home."

Does anyone know how it works in practice and if a POA has been able to deny community housing in Texas?

The online AI response says, “ In Texas, an HOA generally cannot outright prohibit legally recognized "Community Homes for Persons with Disabilities" due to federal and state laws protecting these homes, but they can often regulate them like other rentals or single-family uses if done reasonably and consistently with Texas Property Code and Fair Housing laws. The key is that while HOAs control rentals and property use via CC&Rs, federal laws like the Fair Housing Act (FHA) prevent discriminatory bans, meaning an HOA can't just say "no" to a protected group home, but they can enforce rules about occupancy, parking, or noise if applied equally to all residents.”

I would speak to an attorney.

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