Question:
Can I sue the HOA for failure to stick to a budget. If not is there any legal action that can be taken
– Rocky
Answer:
Hi Rocky,
In Texas, suing an HOA for failing to follow the budget is possible, but it depends on the circumstances, and you would need to provide proof of harm. Boards have some flexibility to respond to emergencies or unanticipated costs, but consistent overspending or redirection of funds without owner approval, especially when governing documents require such approval, could justify legal action. If you suspect misuse of funds or reckless financial behavior, you may consider demanding inspection of records under Section 209.005 of the Texas Property Code.
Before taking legal action, it is best to resolve this issue internally. Speak to your HOA board and request to see the financial records of the association. Try internal dispute resolution or alternative dispute resolution. Lawsuits can be very expensive and lengthy, and there is no guarantee that you will win the case. If all else fails, then you may consider speaking to a lawyer.
Disclaimer: We are not lawyers. The information provided on this website does not constitute legal advice.
