🎯 STRisker: Bulletin - Monterey County, CA
Short-Term Rentals Stir Legal Storm in Monterey County
A Deep Dive into Your Area’s STR Updates — Helping You Navigate the Ever-Changing Rental Landscape.
Short-Term Rentals Stir Legal Storm in Monterey County
Monterey County’s long-awaited short-term rental (STR) ordinance is facing serious legal headwinds just months after going into effect.
Passed in August 2023 after more than a decade of debate, the ordinance set a strict cap: short-term rentals would be limited to 4% of parcels in inland unincorporated areas. That decision quickly drew legal fire.
Visit Monterey County Vacation Rental Alliance ( MCVRA)
Leading the opposition is the Monterey County Vacation Rental Alliance (MCVRA) which filed a lawsuit in Superior Court arguing the cap violates property owners’ rights and interferes with their ability to do business. The case has turned into a legal hotbed with multiple parties joining the fray.
Adding fuel to the fire is a separate lawsuit filed in January by Fred H. Faltersack, who says he invested in a STR permit in Carmel Valley in 2023 based on assurances that it would be valid indefinitely. With the new ordinance, he claims that investment is at risk. The county countered saying he’s only entitled to challenge a limited part of the law. However, Superior Court Judge Thomas Wills ruled that Faltersack could continue his legal challenge and even recommended he join MCVRA’s suit for broader impact.
Meanwhile, the Carmel Valley Association attempted to join the case on the county’s side. Their goal? Defend the ordinance and push back against what they see as an overreach by vacation rental operators. Wills denied their request to become official defendants, but encouraged them to file an amicus brief instead giving them a chance to weigh in on the court’s decision-making.
Visit Carmel Valley Association
The legal fight resumes May 13 when county lawyers and MCVRA attorneys return to court. With two lawsuits and a community brief in the mix, the next hearing could reshape how—and where—short-term rentals are allowed in Monterey.
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