Rafael Marfil knew when he bought a single-family home near Schlitterbahn Waterpark & Resort in New Braunfels as an investment that the city prohibited short-term rentals in residential neighborhoods.
Nevertheless, Marfil hoped to get the ordinance changed so he could rent the home to park visitors.
That effort failed, leaving Marfil in a bind. Not only can’t he rent the home on a short-term basis, he says the spike in traffic on the street in front of the Union Avenue home during the months when the park is open makes its unsuitable for long-term rentals.
“It’s pure craziness what’s happening in a city that’s inviting tourism,” Marfil said of the short-term-rental law. “I can understand if they want to stay off the radar and be a small town.”
On ExpressNews.com: As travel grinds to a halt, Airbnb hosts in San Antonio see wave of cancellations
Now Marfil, 48, and a handful of other homeowners have filed a federal lawsuit against the city seeking a ruling declaring the law unconstitutional.
According to the lawsuit, New Braunfels classifies “ordinary residences as businesses and nuisances” if they are leased for 30 days or less. A homeowner has to obtain a rezoning of the property as commercial to lease it on a short-term basis.
A homeowner who rents a home for more than 31 days, though, “has an unfettered right to lease without the city’s interference,” the suit adds.
“So they’re saying when tenants stay in a home for less than 30 days, then the home is a business,” said J. Patrick Sutton, an Austin lawyer representing the plaintiffs. “But if they stay the extra day, 31 days, then it’s not a business. What is the rational basis for making that distinction? There is none.”
New Braunfels’ short-term-rental ordinance has been around since 2011, but this marks the first time it’s been challenged in court, City Attorney Valeria Acevedo said Friday.
“We do believe that we have a strong short-term-rental ordinance and a process that provides due process for a property owner to seek a zone change,” she said. “We’re going to vigorously defend these claims.”
Acevedo declined to address Sutton’s question about the “rational basis” for how the city distinguishes short-term rentals from long-term rentals.
“I’m not going to go into argument with the attorney through this article,” she said. “He’ll see our arguments when we meet him in court.”
On ExpressNews.com: San Antonio passes new rules to regulate properties rented through companies like Airbnb
The lawsuit says there “is no agreed-upon definition for the dividing line between ‘short-term’ and ‘long-term’ lease.” The state and local governments, however, impose a “hotel tax” for stays of 30 days or less.
Short-term rentals can generate significantly more income, calculated on a daily basis, than long-term rentals, the lawsuit says.
Before the ordinance took effect, some New Braunfels homeowners applied and were granted an exemption under the ordinance, allowing them to rent their homes on a short-term basis. The city couldn’t immediately say how many are grandfathered in.
The plaintiffs allege that the short-term-rental ordinance treats similarly situated homeowners differently, resulting in “equal protection violations” under the state and federal constitutions.
Violators of the law face a fine of $500 to $2,000 for each day a unit is occupied in violation of the ordinance.
The lawsuit says the ordinance was motivated partly by concerns that short-term rentals cause problems that other rentals do not.
Texas Inc.: Get the best of business news sent directly to your inbox
New Braunfels Mayor Pro Tem Wayne Peters said he’s heard complaints from residents about trash thrown in homeowners’ yards, loud music played late into the night and cars parked everywhere at short-term rentals.
“It’s just created a lot of negativity towards having those in these areas,” Peters said. The home Marfil owns is in one of New Braunfels’ oldest residential neighborhoods, Peters said.
Acevedo noted that only one of the six plaintiffs resides in New Braunfels.
Challenges to short-term-rental rules aren’t new. For instance, seven Austin homeowners sued that city over its 2016 ban on nonowner-occupied short-term rentals.
In November, the Austin-based 3rd Court of Appeals ruled that the ban was unconstitutional. The court said the ban “significantly affects property owners’ substantial interests in well-recognized property rights while … serving a minimal, if any, public interest.”
Austin officials have asked the court to review the ruling, saying it undermines the city’s zoning powers. The matter is pending.
The New Braunfels homeowners filed their lawsuit in federal court in Waco last Monday.
Patrick Danner is a San Antonio-based staff writer covering banking and civil courts. To read more from Patrick, become a subscriber. pdanner@express-news.net | Twitter: @AlamoPD
"term" - Google News
April 06, 2020 at 04:38PM
https://ift.tt/3aLAPKF
Homeowners sue New Braunfels over short-term-rental law - San Antonio Express-News
"term" - Google News
https://ift.tt/35lXs52
Shoes Man Tutorial
Pos News Update
Meme Update
Korean Entertainment News
Japan News Update
Bagikan Berita Ini
0 Response to "Homeowners sue New Braunfels over short-term-rental law - San Antonio Express-News"
Post a Comment