Texas HOA rejected a woman's tiny backyard office, so she fought it in court for 6 years. Now it's facing a $153,000 bill
'I kept going because I believed the HOA was wrong, and I didn’t want them to be able to win just by making the process too expensive for me.'
Living in a managed neighborhood comes with strict rules, yet few residents expect a simple backyard addition to ignite a six-year war. When retired homeowner Masha Davis tried to build a modest 160-square-foot workspace behind her house in Austin’s Davis Spring subdivision, her homeowners association shut the idea down and sparked a six-year legal showdown. The lawsuit carried massive financial stakes for both sides, though the final outcome left one party in a deep financial hole. According to a report by the New York Post published on November 9, 2026, the intense dispute has reached a dramatic conclusion.
Blocked over a nonexistent rule
The conflict started in July 2020 when Davis, who had resigned as vice president of the HOA board that same month, submitted plans for the detached office. Measuring just 10 feet by 16 feet with a roof height of 9 feet, 6 inches, the structure included electricity and air conditioning, and no plumbing. It also remained completely hidden from the street. Davis wanted the space for consulting work and to give family members a safe place to isolate during the COVID-19 pandemic. However, the HOA's architectural review committee rejected the project, claiming the building violated height limits and could act as a separate living unit against single-family restrictions. Davis pushed back, arguing those height rules did not legally exist when she applied, and filed a lawsuit in January 2021.
Six years and a $153K tab
A Williamson County district court sided with Davis in August 2022, ruling that no height restriction prohibited the office and the committee lacked authority to reject it. A second ruling in January 2024 confirmed no restrictive covenant barred the build, and the court awarded Davis $100,000 in attorney's fees after her legal expenses hit roughly $150,000. The HOA appealed the attorney-fee award, only for Texas’s Third Court of Appeals to unanimously uphold it on September 29, 2026. This added another $30,000 in conditional appellate attorney's fees. By November 5, calculations from Davis's attorney showed the HOA owed roughly $153,264 in fees, court costs, and interest, with interest climbing by about $34 daily. Now, the 570-home community still has no clear answer on whether the HOA's insurance or its own funds will cover the judgment, prompting Davis to say, "It’s their association and their money".
America’s growing HOA friction
Disputes like this are becoming increasingly common as millions of Americans live under strict neighborhood governance. According to data from the Foundation for Community Association Research, roughly 373,000 community associations exist nationwide at the end of 2025, covering 29.6 million homes or units and 78.1 million residents. About 35.2% of U.S. housing is now located within a community association.
Pushing for accountability
While the HOA has agreed to pay the judgment and Davis's attorney has started collection efforts, the board still gave no clear funding answers at a November 3 meeting after a former HOA president questioned the financial fallout. Reflecting on her six-year ordeal, Davis explained, "I kept going because I believed the HOA was wrong, and I didn’t want them to be able to win just by making the process too expensive for me". She is now advocating for reforms to Texas HOA laws to boost board accountability and cap insurance coverage for legal defense costs. "An HOA should have to follow the rules it expects its homeowners to follow," Davis stated. "That shouldn't be a controversial idea".
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