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Austin Appeals Court Strikes Down Significant Parts of Austin STR Ordinance

16 Dec 2019 1:13 PM | Jeremy (Administrator)

On November 27th, 2019, the Texas 3rd Appeals Court in Austin overturned a district court ruling upholding Austin's Short-Term Rental (STR) ordinance that among other things would ban all non-owner occupied STRs in Austin by 2022.  The appeals court decision specifically struck down the ban on non-owner occupied STRs noting that the City of Austin had failed provide due process before infringing on citizens property rights, and had further failed to demonstrate a compelling public interest for the restriction.  The court also ruled that Austin's limit of 10 guests in a rental unit further violated the owner's rights to fully use their properties, and struck down the 10:00pm curfew for STR guest as a constitutional violation of rights to freely assemble, as well as mandatory inspections of homes prior to issuing STR permits on the basis such inspections constitute unconstitutional searches in violation of search and seizure protections.

While the case adds to important judicial precedents supporting rights of STR owners at the appellate court level in Texas, it is expected that the City of Austin will appeal the ruling to the Texas Supreme Court.

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