Knowing Your Boundaries: Key Legal Guidelines

HOA board members are often seen as key figures in maintaining neighborhood peace and order. However, getting involved in personal disputes between neighbors—especially those unrelated to HOA rules—can expose the Association to significant legal risks. A board’s authority is limited to managing common areas and enforcing the community’s Covenants, Conditions, and Restrictions (CC&Rs). While the desire to mediate and preserve harmony is natural, board members must be cautious. Getting involved in personal or tenant-related conflicts that fall outside of covenant enforcement can put both the Association and its board members at significant legal risk. Such involvement may lead to allegations of negligence, breach of fiduciary duty, defamation, or even discrimination. With the growing number of rental properties in many neighborhoods, these risks are only increasing.

The current legal framework provides limited direction for Homeowners Association (HOA) boards when it comes to handling personal disputes between residents. Chapters 202 and 209 of the Property Code primarily address the enforcement of restrictive covenants, but they do not grant HOAs broad authority to intervene in non-covenant-related interpersonal conflicts. Chapter 209 of the Texas Property Code outlines strict procedural requirements for Homeowners Associations. For example, §209.006  mandates written notice and an opportunity to correct violations before any enforcement action can be taken, while §209.007  requires a formal hearing before penalties are imposed. If a board acts outside of these procedures especially without a clear and documented violation—it risks breaching due process and violating its fiduciary duties of care, loyalty, and good faith. Moreover, intervening in disputes without a legal basis or proper protocol may expose the HOA to claims of selective enforcement or even discrimination under the Fair Housing Act, particularly in situations involving rental properties.

To navigate these legal pitfalls, Homeowners Association boards should:

• Adopt formal, written policies that clearly define when and how enforcement actions will be taken.
• Conduct Training sessions on fiduciary duties and state law should regularly be conducted for all board members.
• Legal counsel should be consulted before any involvement in resident disputes.
• Communicate their limited role to homeowners and promote alternative dispute resolution options outside the Homeowners Association.
• Enforcement of Consistent rule, grounded in governing documents, is the safest path forward.

By staying within legal bounds, boards protect themselves, their communities, and the integrity of the Homeowners Association.