Daily Regulatory Notes 10/15/2025
Cities address STRs. New Hampshire handles lawsuit; Galveston, TX debates draft ordinance; Ocean City, MD revisits temporary ban; Clark County, NV reviews enforcement; Tomball, TX raises concern on occupancy tax; Tehachapi, CA introduces updates; Imlay, CA; Little Compton, RI. READ MORE
New Hampshire
A California couple and a New Hampshire property trustee are suing the Kearsarge Lighting Precinct (KLP) in federal court, claiming its short-term rental ordinance is unconstitutional.
The rule requires rentals to be owner-occupied, meaning an owner or family member must stay overnight during every short-term booking. The plaintiffs, Matthew and Erica Simmonds and G. Allen Nitschelm, argue the restriction discriminates against out-of-state owners and violates the U.S. Constitution’s Commerce Clause and Privileges and Immunities Clause. A federal judge approved a stay of proceedings until April 2026 to allow time for local review.
Calls for stronger enforcement dominated Galveston’s short-term rental community forum, where more than 120 islanders debated draft ordinance changes designed to hold problem operators accountable. The ad-hoc committee’s proposal centers on a “three-strike” rule enabling the city to revoke a short-term rental license after three documented violations in a year, with repeat violators facing permanent bans.
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Supporters—including some operators—said the rule targets chronic offenders, but others worried the anonymous complaint hotline could be abused, leading to unfair penalties. City staff emphasized that evidence must substantiate each violation and owners can appeal revocations. The draft also compels delisting of any property with a revoked license.
Ocean City officials are set to revisit the temporary ban on new short-term rental licenses in single-family (R-1) and mobile home (MH) zones. Adopted in January 2025, the moratorium was designed to give staff time to analyze compliance data from the city’s updated occupancy and parking rules.
Planning Director George Bendler and Fire Marshal Joe Sexauer will present the results of the 2025 rental inspection program, detailing violations and corrective actions. The council must determine whether to continue, modify, or end the pause when it meets ahead of the October 28 review deadline.
Short-term rental regulations in Clark County remain a flashpoint as the county faces mounting criticism for its slow licensing rollout under Nevada’s 2021 law, AB363.
Although the measure lifted a longtime ban on rentals, only 208 properties are currently licensed while an estimated 14,000 illegal listings persist, according to Inside Airbnb. A coalition of hosts has filed a federal lawsuit alleging the county’s ordinance is a “ban in disguise,” citing strict spacing rules, owner-occupancy mandates, and an onerous permit process. County officials say the rules protect neighborhoods and the tourism-driven Strip, with Commission Chair Tick Segerblom reaffirming his opposition to expanding short-term rentals.
STRisker Calendar Tracker
Staying ahead of STR regulations isn’t just about deadlines—it’s about knowing what’s coming. Our Calendar Tracker keeps you informed on upcoming meetings, key votes, and policy changes, so you never miss a critical update.
The Tomball City Council is facing pressure from short-term rental operators after residents raised concerns about the city’s new occupancy tax during its October 6 meeting.
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Operators voiced frustration over what they described as confusing implementation and poor communication, particularly as the tax was applied retroactively to 2024 rentals. Resident Byron Shield urged the city to coordinate directly with Airbnb and Vrbo to simplify tax collection, while host Michael Turner called for better outreach to help small operators stay compliant.
The Tehachapi City Council has introduced a package of municipal code updates aimed at refining enforcement and short-term rental rules.
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The draft ordinance would confine new STR permits to a mapped downtown district, grandfather compliant operators elsewhere, and restrict online listings to permitted properties. It also confirms that two-bedroom or larger rentals fall under the city’s transient-occupancy tax. The broader enforcement overhaul would let officers classify violations as infractions or misdemeanors based on severity and allow fine schedules to be set by resolution.
Imlay City is preparing to allow a small number of short-term rentals under new zoning rules.
On October 7, city commissioners approved the first reading of an ordinance that would cap registrations at five rentals citywide and require operators to meet parking and permitting standards. The changes, developed with Wade Trim Professional Services, would permit STRs as a special land use in select residential zones — RM-1, RT, and R-2 — while maintaining consistency with existing bed-and-breakfast rules.
Little Compton’s draft short-term rental ordinance remains unresolved after an Oct. 6 hearing where the Town Council took no vote.
The planning board’s proposal seeks to register all short-term rentals and require inspections and a local contact to improve enforcement. Some residents supported the plan but asked for delayed inspections and phased rollout, while others pushed for stricter limits to address housing loss and neighborhood disruption. The council closed the hearing without action, leaving next steps undecided.
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