Residents Sue, Citing Deed Restrictions, to Stop Construction on Their Neighbors’ Yard

In the University Woods subdivision of Houston, residents saw construction begin on an extra, “Airbnb-style” house on their neighbor’s property. They sued to halt it.

Their claim? Putting an extra building on a home property violates the local deed restrictions.

How It Started

One morning last summer, Samantha T. was taken aback. A construction crew was hard at work on the property two doors away. It appeared the property owner was building an extra home on their land. How was that allowed? Every home in the subdivision was bound by a deed restriction permitting just one house on a property.

Samantha ought to know. She and her spouse have lived in University Woods for more than 25 years. The couple actually worked on the amended deed restrictions for the neighborhood, which are geared to preserve a single-unit residential area. The area is a culturally significant place in Houston, with its historically Black businesses, and Texas Southern University nearby. And clearly, deed holders in University Woods take their restrictions seriously.

One of the residents’ biggest concerns is the influx of new rental houses popping up. The new buildings become hubs of activity, locals say, getting listed on Airbnb, Vrbo, and other home-sharing platforms.  

And there’s a pattern developing. Builders are putting up houses behind existing homes, which then become short-term vacation and special-event rentals, much like hotels. Residents say this attracts noise and risks to formerly quiet, mellow neighborhoods.

The numbers bear out the locals’ observations, says the Houston Chronicle. Samantha’s area in particular has an unusually high proportion of short-term rental houses. Concerned deed holders have been tracking short-term rental developments and correlating rental advertising in a spreadsheet.

Soon, locals were calling city officials to object about the extra house being built near Samantha’s house. They saw it as fitting the pattern. The city did red-tag the construction, putting the builders on notice. But the work continued anyway.

The locals filed formal complaints. They asked for inspectors to come out to the scene. And still the work continued.

How It’s Going

After a few months, several homeowners were fed up. It was time to gather opposition. They asked neighbors to hear their concerns against the new construction. They invited people to meet at the local library, using social media to amplify the cause. They sued.

Joining Samantha as a plaintiff in the lawsuit is Marc N., who says locals should be able to know who lives around them when they buy into a residential area. If a place is advertising party rentals and short-term stays—well, the local deed holders just didn’t sign up for that. After all, deed restrictions forbid it.

Samantha T. is ticked off and stressed out. Like other plaintiffs, she’s unhappy to have to enlist lawyers and the courts to press for action on a rule that the city ought to enforce.

Sometimes, Houston does step in to uphold deed restrictions. In fact, in 2024, the city sued the same company that’s now doing the construction in Samantha’s neighborhood. Last year, the court halted the other project permanently, citing the deed restrictions. Why weren’t they treating the new project similarly, locals wondered?

At a preliminary hearing in March, the lawyers hired by Samantha and her neighbors pleaded for fast action. They told the court that the construction needed to stop, or else the deed restrictions were useless. It would be difficult to do anything about the building, once completed.

The court could back the ticked-off locals of University Woods. A Texas district judge already ordered a temporary injunction against further construction. The lawsuit goes into a full trial this month.

Deed restrictions are not the same as public zoning codes. Learn more about the impacts of deed restrictions on deed holders and communities, on Deeds.com.

Deed Restrictions in Place of Zoning

You might wonder why the matter of zoning isn’t in the middle of all this. It’s because (technically) Houston has no zoning ordinances. Deed restrictions fill in for a zoning code.

Houston does have a city planning commission. And there is a body of rules for Houston districts. But restrictions, often forged by the residents, are central to planning. Deed restrictions are the locals’ go-to provisions when they want to “preserve the character” of a given place. When locals report violations of deed restrictions, they expect the city to back them up. In this sense, deed holders themselves—along with courts if they need a judge’s opinion—behave somewhat like zoning enforcers.

The company insists that the construction near Samantha’s home does not violate the deed restriction at all. The new house is linked to the existing house by way of an enclosed passageway. The company says that there isn’t any kitchen in the newer home, so it’s merely an addition—not a separate residence.

Looks like companies are testing workarounds to the deed restrictions.

Houston has no zoning laws? This is technically true. Its city charter bars the formation of a zoning code.

What Comes Next?

Houston is pushing back against new buildings on residential properties. Recently, the city adopted new rules for investor-owners. This was done after data collection and public comment periods. Officials studied the impacts of rental homes throughout the city. Ultimately, the City Council deemed it necessary to adopt an ordinance for the “health, safety, and welfare of the general public and for the protection of property owners and residents.”

Now, owners of vacation rentals in Houston have to register them. The Houston Chronicle reports that more than three thousand investor-owners have duly registered themselves in the city.

Registrants must pay a (currently $275) registration fee—every year. There’s a Hotel Occupancy Tax Proof (“HOT”) document that must be filed; details depend on whether the deed holder uses Vrbo®, Airbnb, or a different platform.

Now, Houston residents await the outcome of Samantha’s case. The court’s decision could influence how similar deed restriction disputes are handled in Houston.

If the court upholds the local residents’ position, that would underscore the ability of deed restrictions to slow down investor-owners. If the court finds for the investors, though, the deed restrictions are going to come out of the court case with less authority. And more owners are likely to invite developers to build on their properties. The stakes for both sets of deed holders are high. Let’s see what happens.