Daily Regulatory Notes 02/18/2025

Every day, we bring you a detailed overview of recent news and updates about primary decisions, community feedback, or legislative changes relevant to the short-term rental industry. 📰

Hollywood Park, TX

Hollywood Park’s 2023 short-term rental ban faced legal pushback leading to a settlement allowing two homeowners and a real estate company to continue renting under a "non-conforming use" exemption.

They must adhere to regulations including annual fees, tenant limits, and minimum stay rules. The settlement doesn’t extend to other homeowners who would need separate lawsuits. Courts across Texas are issuing mixed rulings on short-term rental bans, with some cities prevailing while others face injunctions blocking enforcement. The legal landscape remains unsettled.

Saratoga Springs, NY

Saratoga County and the city of Saratoga Springs are moving to raise occupancy taxes on short-term rentals and hotels in response to a new state STR law.

The county Board of Supervisors will vote on sending a home rule request to state officials that would allow the county to raise its tax from 1% to 3%, and the city to increase its portion from 5% to 6% bringing the total tax rate to 9%. Officials say the increased revenue would support implementation and enforcement of STR laws while distributing funds to local municipalities.

Cape Coral, FL

Cape Coral officials are facing growing concerns over short-term rental violations with over 9,000 listings in the city. Residents report ongoing party house issues, with properties like one featuring 17 beds in a five-bedroom home causing disturbances.

At a recent council meeting, Mayor John Gunter acknowledged enforcement shortcomings citing 315 listings available for two-night stays despite the city’s rules. Officials plan to strengthen code compliance efforts, while residents are encouraged to report violations to police for documentation. The city has yet to announce specific enforcement measures.

Maui, HI

Maui’s plan to phase out 7,000 short-term rentals to prioritize housing for wildfire victims is facing legal and economic backlash. Property owners and advocacy groups argue the move won’t guarantee affordable housing but will harm tourism, cut tax revenue, and eliminate local jobs.

The uncertainty has already slowed bookings as visitors opt for other destinations. Legal battles are expected, with opponents pushing for alternatives like higher property taxes instead of an outright ban. With no clear resolution, Maui’s short-term rental market remains in limbo.

New Orleans, LA

Airbnb and several New Orleans homeowners have filed a lawsuit against the city, challenging a 2024 law that requires short-term rental platforms to ensure all listings on their sites are legally permitted.

The lawsuit filed on February 14 also contests the 2023 short-term rental regulations that the city council passed, which a federal judge upheld last year. The city planned to enforce the new verification system starting March 1 but had considered delaying implementation until June 1.

Greensboro, NC

Greensboro may soon remove its 750-foot buffer requirement for short-term rentals after legal concerns arose regarding its enforceability. A memo from city planners warns that the rule is at risk of being overturned, citing a North Carolina Court of Appeals decision invalidating a similar restriction in Wilmington.

The City Council will take public comments and vote on the matter at Tuesday’s meeting. The buffer rule was included in a set of regulations passed in 2023, which also limit short-term rental density in multi-family buildings and impose residency and occupancy rules.