A Dallas County judge has issued a temporary injunction blocking the City of Dallas from enforcing its ban on short-term rentals in residential neighborhoods.
As reported by The Dallas Express, after more than three years of deliberation, the Dallas City Council voted 12-3 in June in favor of an ordinance prohibiting short-term rentals from operating in single-family residential neighborhoods.
After the ordinance was passed, a group of short-term rental (STR) owners, including the nonprofit Dallas Short-Term Rental Alliance, sued the City, alleging the prohibition was unconstitutional.
On Wednesday, District Judge Monica Purdy issued a temporary injunction preventing the City from enforcing the ordinance.
“Unless the City is enjoined from enforcing the STR ordinances, there is a substantial risk of probable, imminent, and irreparable injuries to plaintiffs because plaintiffs, and the vast majority of other STR owners in Dallas, will immediately lose the ability to lease their property for less than 30 days,” according to the judge’s order.
The City intended to begin enforcing the new rules on December 13. Purdy scheduled a non-jury trial for this case for June 3 of next year.
“[STR owners] have invested hundreds of thousands of dollars, excluding mortgages which exceed millions of dollars, into the STR industry in Dallas,” Purdy wrote.
“STR Ordinances are likely unconstitutionally oppressive in light of the alleged government interests,” she added. “The right to conduct STR activity is a vested right in Texas that is a component of home ownership.”
The City of Dallas’ attorneys said blocking the new zoning regulations would prevent the City from “advancing its legitimate and compelling governmental interests.”
“Plaintiffs freely admit that their STRs are businesses that they operate in residentially-zoned neighborhoods,” the City said, per The Dallas Morning News. “But plaintiffs are not just operating such businesses out of their homes — the homes are the businesses.”
City spokesperson Jennifer Brown said the City is considering various options concerning appealing the judge’s injunction.
“In the meantime, the City will continue enforcement of its existing ordinances governing minimum property standards, disturbing noises, and private nuisances,” she said, per DMN.
STR owners praised Judge Purdy’s order as it will allow them to continue operating.
“We were pleased with the judge’s ruling, and we look forward to our day in court,” said Lisa Sievers, an STR operator and Dallas Short-Term Rental Alliance member.
Alternatively, those favoring the STR regulations argued Judge Purdy made the wrong decision.
David Schwarte, attorney and co-founder of the Texas Neighborhood Coalition, was involved in the STR fight in Arlington that resulted in that municipality passing an ordinance against them in 2019, similar to Dallas’ measure.
Schwarte said Arlington’s ordinance “has withstood challenges in the trial court, in the Court of Appeals, and the Texas Supreme Court refused to hear an appeal,” per Fox 4 KDFW.
He said he intends to file a friend of the court brief if the City of Dallas appeals Purdy’s injunction.
“The assumption that there was a constitutional right to a short-term rental home in a residential neighborhood, no higher court has ever held that,” Schwarte said.