One of the most common reasons Texas property owners’ associations, or POAs, get sued is making a decision that a particular resident or group of residents do not like.
Few topics these days are as sensitive as politics, so Houston POAs would certainly want to take the steps they need to take to avoid stepping into a legal minefield.
POAs do have the right to regulate signs in a resident’s yard or even in their windows. This right extends to political signs.
Constitutional concerns aside, when regulating political signs, POA leaders need to remember that Texas law puts a limit on a POA’s ability to restrict certain political signs around the time of an election.
POAs should review this law and their own restrictive covenants and make sure that they are following the law as they should. Otherwise, they risk legal liability.
POAs need to understand how their legal obligations apply when facing suits
The fact that POAs may not prohibit certain political signs is of interest around this time of year. Outside of election season, POAs have broad authority to prohibit signs.
However, improperly prohibiting signs is just one of many reasons why POAs and their leadership might wind up having lawsuits filed against them.
A lot of these suits have to do with allegations that a POA either violated a law or a regulation, or simply did not follow its own internal bylaws and rules when making a decision.
By being proactive about understanding what they legally can and cannot do, POAs can prevent litigation.
Sometimes, however, a legal dispute is hard to avoid. In these cases, the POA and its leadership will want to understand their legal options and make sure they have an effective strategy.
Part of their strategy may be to explore what insurance coverage might be available to fund the POA’s defense.