A legal dispute between Eagle, Idaho, residents and the Two Rivers Subdivision Homeowners Association (HOA) will proceed to trial following developments involving a countersuit over the HOA’s use of the neighborhood clubhouse.
Original Complaint by the HOA
In late 2023, the Two Rivers HOA filed a complaint with the Fourth District Court in Ada County, seeking to stop the homeowners from running their small businesses out of their homes. The HOA cited a rule in the community’s covenants, conditions, and restrictions (CC&Rs) that prohibits “any trade, business or professional activity” in the subdivision, arguing that business-related traffic violates the residential nature of the area.
Allegations of Uneven Enforcement
The homeowners challenged the HOA’s enforcement, pointing to more than 100 businesses registered in the neighborhood. They named entities registered to the HOA board president and a city council member who also serves on the board. They contend this demonstrates inconsistent application of the rules.
Summary Judgment and Injunction
In May 2024, Judge Derrick O’Neill mainly ruled in favor of the HOA, stating the CC&Rs clearly prohibit business activity and apply to both the couple’s businesses. He rejected the homeowners’ argument that the rule’s application would lead to “absurd results,” citing an Idaho Supreme Court decision that upholds rules with clear wording, even if the outcome seems unfair.
As a result, the court issued a permanent injunction in June 2024, preventing the homeowners from operating their in-home clothing alteration business.
Remaining Legal Question
Despite the HOA’s partial victory, the judge allowed part of the case to proceed, noting an unresolved issue: whether the HOA waived its right to enforce the ban by permitting similar business activity by other homeowners over time. This question will be addressed in the jury trial tentatively scheduled for December 2025.
New Countersuit Over Clubhouse Rentals
In February 2025, the same homeowners filed a countersuit against the HOA, asserting that the HOA itself violates the same CC&Rs by renting out the subdivision’s clubhouse to non-residents. According to their filing, the HOA began this practice around 2007 or 2008 to generate maintenance revenue.
The countersuit claims that this use of the clubhouse constitutes a prohibited business activity. The homeowners also raised concerns about inadequate parking for large events, stating that the clubhouse’s 113-person capacity contrasts with only 41 parking spaces, causing disruptions to residents.
They argue the HOA lacks the authority to rent out common areas for monetary gain and that doing so breaches the subdivision’s rules.
Next Steps
The case continues with both the original claims and the countersuit, which will be examined further in the upcoming trial.
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