I had written to our county engineering dept and received below reply. Not sure what is the impact of this in our situation.

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Your lot is circled on the attached recorded plat of your subdivision. Per the recorded plat, there are no single family restrictions so this would be considered an unrestricted lot. Harris county has no objections for your home to be used as a child care facility as long as you meet our fire code requirements. Harris County does not enforce deed restrictions. The dispute between you and the HOA is a civil matter which we do not get involved.
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