The City of Dallas is suing the congregation of Toras Chaim, which is in a home in far North Dallas on Mumford Court.
The lawsuit says the synagogue does not have a certificate of occupancy for "non-residential use" of the property, which the city says is required.
The lawsuit also says the synagogue has not demonstrated it can safely operate according to city laws.
A judge threw out a previous lawsuit filed by a resident of the neighborhood who complained about traffic congestions and homeowners' association violations.
The non-profit law firm Liberty Institute represents the synagogue.