HOW DOES THE DECEPTIVE TRADE PRACTICES ACT APPLY TO THE HOA:

Taken from State Your Case

Houston Chronicle

Monday, January 8, 2007

Q  How does the Deceptive Trade Practices Act apply to a homeowners association where the board does not enforce the restrictive covenants? [deed restrictions]

A  Several reported appellate court opinions have addressed this issue.

The legal theory is that a homeowners association and its board of directors have a duty to enforce the deed restrictions to the extent reasonably possible.

If the association does nothing to stop a blatant violation of a restrictive covenant, it can be alleged that the board members have breached their fiduciary duty to the surrounding owners.

The result is that the association may be liable for any damages suffered by the non-violating owners, such as reduction in property values or the loss of a sale.