A Dallas County judge on Wednesday temporarily blocked the city's regulations on short-term rentals.
In her order, Judge Monica Purdy sided with STR operators, saying the new rules, scheduled to go into effect next week, “blatantly violate the state constitution.”
After months of debate, the city of Dallas approved regulations in June that block STRs like VRBO and AirBnb from single-family residential neighborhoods. Operators will also be required to register their properties with the city, obtain property inspections and certificates of occupancy, and pay fees.
The Dallas Short-Term Rental Alliance and other plaintiffs argue that the ordinance prohibits 90% of rentals and is “punitive.”[e] Only a few may remain. ”
In a brief last month, the city argued that Dallas has been “swamped in recent years by the rapid proliferation of short-term rental properties in residential neighborhoods.”
“As investors flooded the STR market, Dallas saw a rapid influx of STRs into single-family neighborhoods, essentially converting long-term housing into mini-hotels for temporary residents.”
Some residents who supported the ban said the rentals were a nuisance to the neighborhood.
But Judge Purdy said the city's regulations would cause “irreparable harm” to the plaintiffs.
“They invested hundreds of thousands of dollars in the STR industry in Dallas, not including mortgages in excess of millions of dollars,” Purdy wrote in the order. “…the right to conduct STR activities is a vested right in the State of Texas that is part of homeownership.”
The city told KERA in writing that it is considering options regarding the judge's order.
“In the meantime, the city will continue to enforce existing ordinances governing minimum property standards, nuisance noise, and private nuisances,” the statement said.
A hearing in this case is scheduled for June 3, 2024.
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