Residents of Hollywood Park celebrate their victory to continue short-term rentals.
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Sponsor Our ArticlesHomeowners in Hollywood Park have achieved a legal victory, allowing them to continue short-term rentals despite a recent city ordinance banning the practice. This settlement, reached in the U.S. District Court, grants ‘non-conforming use’ rights to affected homeowners, ensuring they can still offer their properties for rent while adhering to new regulations. Homeowners will face annual fees and strict occupancy limits but can breathe easier knowing they can legally operate their rentals.
In a significant turn of events for residents of Hollywood Park, a federal lawsuit has recently been settled, allowing existing homeowners to continue offering short-term rentals (STRs) despite a ban that was enacted just a few months ago on November 14, 2023. This legal victory comes as a breath of fresh air for homeowners who enjoy the extra income that these rentals provide.
The lawsuit was initiated by two determined homeowners, Bonnie Kay Browning and Scott Troen, along with Champagne Campaign LLC, which is owned by Austin real estate agent Abby Argo. These plaintiffs passionately argued that the ordinance banning STRs unfairly disrupted their investments in their properties. Prior to the ban being imposed, they had already made significant improvements and had started offering their homes for short-term stays.
In filing their lawsuit, they raised concerns that the ban not only violated state and federal laws but also ignored the growing trend supporting short-term rentals across Texas. As many in Hollywood Park hoped to earn a little extra cash by renting out their homes, this lawsuit raised questions that resonated beyond the city limits.
As a result of this legal tussle, a settlement was reached in the U.S. District Court in San Antonio. This agreement not only affirms the validity of the city’s ordinance but also grants *“non-conforming use”* rights specifically for the plaintiffs. This means that Browning, Troen, and Argo can continue operating their short-term rentals legally.
However, there are rules in place for those wanting to continue offering their properties for STRs. Homeowners will need to pay a $100 annual fee for property inspections and disclose which rental platforms they’re using, such as Airbnb or Vrbo. Each rental must stretch over at least two consecutive overnight periods, with a minimum stay of three days.
Additionally, strict occupancy limits are set. No more than two adult tenants are allowed per bedroom, and there are restrictions on the number of non-tenants present during night hours. These regulations aim to maintain neighborhood peace and harmony, ensuring that short-term rentals don’t become sources of disruption.
For homeowners who dare to ignore the ban, the consequences could be steep. Penalties for non-compliance can reach up to a staggering $2,000 a day for those attempting to operate short-term rentals without adherence to the new rules. Clearly, it’s vital for homeowners in Hollywood Park to stay informed and compliant.
The legal battle in Hollywood Park reflects a broader trend seen in cities across the United States, where short-term rentals are increasingly coming under fire. Local government officials often cite complaints about disturbances in neighborhoods and concerns over housing shortages as reasons for these bans. Other Texas cities, such as Austin and New Braunfels, have enacted similar restrictions, facing their own sets of legal challenges from frustrated homeowners.
For residents in Hollywood Park not included in the settlement, hope is not lost. Others interested in challenging the ban will need to initiate their own legal battles, as the settlement only covers the parties directly involved in the original lawsuit.
The settlement allows some homeowners in Hollywood Park to breathe a sigh of relief and continue their short-term rental businesses legally. Despite the challenges, this outcome highlights the ongoing conversation about the balance between community regulations and homeowners’ rights in the ever-evolving landscape of housing and rentals.
Ultimately, as the short-term rental debate continues, both homeowners and city officials will need to navigate carefully, finding common ground that supports the interests of all residents while ensuring the charm and tranquility of this lovely town remain intact.
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