A legal showdown in Dallas has short-term rental owners breathing a sigh of relief this week after a district court judge sided with them over the city in a dispute that could've seen many forced to shut down their businesses. District Court Judge Monica Purdy put the brakes on Dallas's plans to ban short-term rentals in single-family neighborhoods, granting a temporary injunction amid ongoing litigation.
Purdy's order on Wednesday stated that the plaintiffs, which include the nonprofit Dallas Short-Term Rental Alliance (DSTRA) and four operators, have a likely chance to ultimately prevail on their claim that the city regulations are unconstitutional. The judge highlighted the "substantial risk" that failing to block these ordinances could cause "probable, imminent and irreparable injuries to plaintiffs" who would suddenly be unable to lease their properties for a period of less than 30 days, according to The Dallas Morning News.
Judge Purdy's ruling throws a lifeline to over 1,900 registered short-term rental operators in Dallas, many of whom would have had to cease operations due to the new rules scheduled to kick in on Dec. 13. The DSTRA took the fight to court on October 2nd, contending that the regulations not only overreached property owners' rights but also illegally discriminated against short-term rental owners.
The city's defense was that enforcing the ordinance was critical for pursuing "legitimate and compelling governmental interests." Yet the judge's decision has now temporarily handcuffed the city's ability to enforce the changes, with a trial set for June 3, 2024. However, Dallas can appeal before the trial date. The injunction puts a pause on an ordinance that stemmed from neighborhood complaints linking rental properties to disturbances like gun violence and noise, per WFAA.
Lisa Sievers, a board member of the Dallas Short-Term Rental Alliance and an operator herself, expressed satisfaction with the judge's order. She said, "As we've stated many times, we stand ready to come to the table with the city to discuss fair and sensible regulations that rein in the few bad apples and allow the rest of us to continue to operate." Meanwhile, Dallas spokeswoman Jennifer Brown commented that the city is considering its options regarding an appeal but assured that it will "continue enforcement of its existing ordinances" related to disturbing noises and other nuisance concerns, which suggests the city isn't backing down without a fight, as per The Dallas Morning News.
