Commercial Landscaping & HOA Compliance: Navigating Texas Property Code 202.007

HOA boards and commercial facility managers face a legal minefield when landscaping restrictions conflict with Texas water conservation mandates. Texas Property Code 202.007 fundamentally changes how HOAs can enforce landscaping standards during drought conditions—and ignorance of these requirements creates significant liability for board members and property managers.

This comprehensive guide explains the legal framework governing commercial and HOA landscaping in Texas, reveals compliance strategies that reduce costs while maintaining property values, and provides actionable frameworks for transitioning to water-wise landscaping that satisfies both regulatory requirements and aesthetic standards.

Understanding Texas Property Code 202.007

Texas Property Code 202.007 prohibits HOAs from enforcing landscaping standards that conflict with municipal water restrictions or drought stage declarations.

Enacted to protect homeowners during Texas's increasingly severe drought cycles, Property Code 202.007 creates a clear hierarchy: municipal water conservation ordinances override private HOA landscaping bylaws. This means that during Stage 1, Stage 2, or Stage 3 drought declarations, HOAs cannot enforce requirements for "lush, green lawns" or other water-intensive landscaping standards.

Key Provisions of Section 202.007

• Mandatory compliance override: HOA landscaping requirements that conflict with municipal water restrictions are automatically unenforceable during drought stages
• Stage-2 drought suspension: During Stage 2 drought declarations, HOAs must suspend enforcement of bylaws requiring specific water-intensive landscaping appearances
• No retaliation prohibition: HOAs cannot penalize homeowners who comply with municipal water restrictions rather than HOA landscaping standards
• Reasonable alternative standards: HOAs may adopt water-wise landscaping standards that comply with both the property code and drought restrictions

Legal Liability for Non-Compliant Boards

HOA board members who knowingly enforce landscaping standards that violate Property Code 202.007 expose themselves and their associations to significant legal liability. Courts have found boards liable for:

• Civil penalties: Fines for violating state water conservation mandates
• Legal fees: Homeowner litigation costs when rights are violated
• Damaged board reputation: Loss of community trust and potential removal
• Insurance complications: Directors and Officers (D&O) insurance claims related to non-compliance

The Commercial Landscaping Compliance Framework

Commercial properties face a complex web of federal, state, and local regulations governing landscaping, water use, and environmental compliance.

Municipal Water Restrictions

North Texas municipalities implement increasingly stringent water restrictions during drought conditions:

City of Dallas Water Conservation Ordinances:

• Stage 1: Voluntary conservation, no watering 10 AM - 6 PM
• Stage 2: Mandatory twice-weekly watering schedules based on address
• Stage 3: Once-weekly watering or complete outdoor watering ban
• Stage 4: Emergency restrictions, minimal essential use only

City of Plano Water Management:

• Smart irrigation rebate programs to encourage efficiency
• Mandatory rain/freeze sensors on new installations
• Weekly watering schedules with variances for new plantings

Frisco & Southlake Regulations:

• Permeable paver requirements for new commercial construction
• Stormwater management integration with landscaping
• Native plant requirements for certain commercial zones

Texas Sales Tax Compliance for Landscaping

The Texas Comptroller mandates specific tax treatment for landscaping services:

• Taxable services: Planting, mowing, trimming, sod installation, general landscape maintenance
• Non-taxable services: Highway right-of-way mowing, tree trimming away from power lines, landscape architect professional services
• Invoice requirements: Vendors must separate taxable from non-taxable services; if taxable portion exceeds 5% and not separated, entire invoice is presumed taxable

Commercial clients should verify that landscaping vendors demonstrate proper understanding of these tax distinctions to avoid audit complications.

Transitioning from In-House to Commercial Landscaping

Outsourcing landscaping to commercial vendors reduces liability, stabilizes costs, and ensures regulatory compliance expertise.

Many commercial properties and HOAs struggle with the decision between maintaining in-house landscaping crews versus outsourcing to commercial vendors. This analysis framework helps facility managers evaluate the optimal approach:

Cost Analysis: In-House vs. Outsourced

Cost Category	In-House	Outsourced
Labor (salaries + benefits)	$45,000-$75,000/employee	Included in contract
Equipment purchase/lease	$50,000-$150,000 initial	Vendor provided
Equipment maintenance	$8,000-$15,000 annually	Vendor responsibility
Insurance (liability + workers comp)	$12,000-$25,000 annually	Vendor carries
Training/certification	$3,000-$5,000 annually	Vendor expertise
Regulatory compliance	Staff time + liability	Vendor responsibility
Management overhead	15-20% of labor costs	Minimal oversight

For most commercial properties under 50 acres, outsourcing delivers 15-30% cost savings while eliminating management burden and liability exposure.

Vendor Selection Criteria

Selecting the right commercial landscaping partner requires evaluating:

• Insurance coverage: General liability ($1M+), workers compensation, commercial auto, umbrella policies
• Regulatory expertise: Demonstrated knowledge of Texas Property Code, municipal restrictions, tax compliance
• Water management capability: Smart irrigation expertise, rebate program navigation, drought response protocols
• Service consistency: Backup crews, supervisor ratios, quality assurance processes
• Technology integration: Work order systems, photo documentation, digital reporting
• Financial stability: References, bonding capacity, long-term viability

Read our complete vendor transition guide: HOA Vendor Transition Guide

HOA Landscaping Budget Planning

Strategic HOA landscaping budgeting balances aesthetic standards with water cost management and regulatory compliance.

HOA landscape budgets typically represent 25-40% of total association operating expenses. Optimizing these costs while maintaining property values requires data-driven planning:

Water Cost Management Strategies

• Smart irrigation upgrades: 30-50% water cost reduction with ET-based controllers and rain sensors
• Rebate program participation: Municipal rebates (Plano offers $50/rain sensor) offset upgrade costs
• Native plant transitions: 40-60% water reduction after establishment period
• Hydrozone planning: Grouping plants by water needs prevents overwatering
• Seasonal adjustment protocols: Monthly irrigation schedule optimization

Reserve Planning for Major Improvements

HOA reserve studies should include landscaping infrastructure lifecycle costs:

• Irrigation system replacement: 15-20 year lifecycle, $15,000-$50,000 typical range
• Hardscape maintenance: 10-15 year resurfacing/replacement cycles
• Tree management: Ongoing pruning, removal, and replacement programs
• Drought conversion projects: Budgeting for xeriscaping transitions during restrictions

Explore budget planning: HOA Landscape Budget Planning Guide

Drought-Tolerant Landscaping for Commercial Properties

Native and drought-tolerant landscaping reduces water costs 40-60% while creating beautiful, low-maintenance properties that comply with all regulatory requirements.

Texas Native Plant Recommendations

Commercial landscapes utilizing Texas natives achieve regulatory compliance, cost reduction, and visual appeal simultaneously:

Ornamental Grasses:

• Gulf Muhly: Pink plumes in fall, 3-4 feet height, extreme drought tolerance
• Little Bluestem: Blue-green summer color, copper winter interest, native prairie species
• Inland Sea Oats: Shade-tolerant, distinctive seed heads, erosion control

Flowering Perennials:

• Texas Sage: Purple blooms after rain, silver foliage, 5-6 feet height
• Turk's Cap: Red flowers, shade tolerant, attracts hummingbirds
• Black-Eyed Susan: Yellow summer blooms, pollinator support, reseeds naturally
• Mexican Bush Sage: Purple spikes, fall blooming, deer resistant

Trees for Commercial Sites:

• Texas Red Oak: Fall color, 40-50 feet mature height, clay soil tolerant
• Bald Cypress: Deciduous conifer, wet site tolerance, distinctive form
• Live Oak: Evergreen, iconic Texas tree, long-lived, shade provider
• Cedar Elm: Native, drought tolerant, 50-70 feet height

Learn more about commercial native landscaping: Drought-Tolerant Commercial Landscaping

Smart Irrigation for Commercial Compliance

Smart irrigation systems automatically adjust to weather conditions, ensuring compliance with drought restrictions while maintaining landscape health.

ET-Based Controller Technology

Evapotranspiration (ET) controllers use real-time weather data to calculate exactly how much water plants need:

• Weather telemetry: On-site or internet-based weather monitoring
• Automatic adjustment: Increases watering during heat/drought, decreases during rain/cool weather
• Regulatory compliance: Pre-programmed drought stage restrictions
• Distribution uniformity: Zone-specific programming for different plant types

Explore commercial smart irrigation: Commercial Smart Irrigation Installation

Emergency Ice and Snow Management

Commercial properties face slip-and-fall liability during North Texas ice events—professional ice management reduces risk while maintaining compliance with environmental regulations.

While DFW winters are mild, ice storms create dangerous conditions that expose property owners to significant liability. Professional ice management services include:

• Pre-treatment protocols: Anti-icing applications before storms
• De-icing response: Post-storm treatment of walkways and parking areas
• Snow removal: Priority clearing of critical access areas
• Documentation: Time-stamped service records for liability protection
• Environmental compliance: Salt application limits and runoff management

Read about winter services: Emergency Ice Management

Implementation Roadmap for HOAs

Successful HOA compliance transitions require phased implementation with board education, homeowner communication, and professional landscaping partnership.

Phase 1: Legal Audit (Month 1)

• Review existing landscaping bylaws for Property Code 202.007 conflicts
• Identify mandatory vs. discretionary requirements
• Document current enforcement practices
• Consult HOA attorney on amendment requirements

Phase 2: Policy Development (Month 2)

• Draft water-wise landscaping standards
• Develop drought response protocols
• Create variance application processes
• Plan board education sessions

Phase 3: Communication (Month 3)

• Homeowner newsletter explaining changes
• Community meeting with landscaping expert
• Distribute native plant guides
• Launch rebate program education

Phase 4: Implementation (Months 4-6)

• Amend governing documents
• Transition to water-wise standards
• Upgrade common area irrigation
• Monitor compliance and adjust

Cost-Benefit Analysis: Compliance vs. Penalty

The financial case for proactive compliance is overwhelming:

Proactive Compliance Costs:

• Legal review: $2,000-$5,000
• Document amendments: $1,000-$3,000
• Homeowner education: $500-$2,000
• Smart irrigation upgrades: $10,000-$30,000 (with rebates offset)

Non-Compliance Penalties:

• Civil fines: $500-$2,000 per violation
• Homeowner litigation: $10,000-$50,000+
• Emergency landscaping changes: $25,000-$75,000
• Property value impact: Immeasurable

Conclusion: Compliance as Competitive Advantage

Texas Property Code 202.007 and municipal water restrictions aren't obstacles—they're frameworks for creating sustainable, cost-effective, legally compliant landscapes. HOAs and commercial properties that embrace water-wise landscaping gain competitive advantages through reduced costs, regulatory certainty, and enhanced property values.

Sandoval Landscaping partners with 20+ DFW HOA communities and commercial properties to navigate these complex requirements. Our expertise in Texas property law, municipal regulations, and water-efficient landscaping delivers compliance without compromise.

HOA board members and facility managers: Contact Sandoval Landscaping for a free compliance assessment and discover how we transform regulatory requirements into cost-saving opportunities.

Related Resources:

• Texas Property Code 202.007 Guide
• HOA Vendor Transition Guide
• Drought-Tolerant Landscaping