Loading...
HomeMy WebLinkAbout08-10-23 Public Comment - C. Torsleff - Recent federal ruling about Short Term RentalsFrom:Christofer Torsleff To:Agenda Subject:[EXTERNAL]Re: Recent federal ruling about Short Term Rentals Date:Wednesday, August 9, 2023 4:04:58 PM CAUTION: This email originated from outside of the organization. Do not click links or open attachments unless you recognize the sender and know the content is safe. I did not see me comments listed in the public comments section under Short Term Rentals? Thank you, Chris Torsleff On Aug 8, 2023, at 4:02 PM, Christofer Torsleff <crtorsleff@icloud.com> wrote:  Dear City Commission, As you debate current and new Short Term Rental policies, I am not sure if you are aware of the recent ruling by the United States Federal Court of Appeals. Any restrictions in Bozeman would also restrict Interstate Commerce making them unconstitutional according to this recent ruling. There is also a similar ruling by United States federal court in Austin on August 3, 2023 that declared Austin ordinance which is very similar to Bozeman’s is unconstitutional. I hope this information was beneficial and if you would like more information on the Austin ruling I am happy to provide. These are just the most recent as many more courts ruling exist saying short term rental restrictions are unconstitutional, so if enforced could open the city of Bozeman up to additional liability given the recent rulings. The health and safety part of licensing is supported and necessary for all properties, but you should strongly reconsider the unconstitutional part of your ordinance. Thanks you, Chris This article comes from jdsupra.com A recent decision by a federal court of appeals found a New Orleans’ city code limiting short-term rentals of residential properties (such as AirBnB, Vrbo, Vacasa, etc.) to only landlords who lived inside the city was unconstitutional. In Hignell-Stark v. City of New Orleans, 46 F.4th 317 (5th Cir. Aug. 22, 2022), the Court held the city ordinance was an undue burden on interstate commerce. A state or city law that discriminates against interstate commerce is unconstitutional unless there is no other way to enforce the government's legitimate policy goals. In this case, the city “doesn't just make it more difficult for [non-resident owners] to compete in the [short term rental] market…it forbids them from participating altogether." The city responded that (1) the law was intended to make sure a responsible adult lived on the property full-time; (2) residents from outside the city could operate short-term rentals in nonresidential zoned areas; and (3) the law not only burdened interstate commerce, but it also prohibited Louisianans who didn't live in New Orleans. The Court found none of these arguments were relevant. The city urged three objectives justified the law: preventing nuisances, promoting affordable housing, and protecting neighborhoods' residential character. The Court found the nuisance and residential character goals could be achieved by enforcing existing nuisance laws, increasing penalties for nuisance violations, increasing taxes on short-term rentals, or by requiring a representative of the landowner to be on the property (or in the city) during night hours. There were many ways to increase the supply of affordable housing without prohibiting interstate commerce. BOTTOM LINE: State and local laws that discriminate against non- residents – in the context of real estate rights and commerce – are subject to constitutional attack and face a high hurdle to prove the state, city, or county really had no other choice. Chris Torsleff