Friday, September 16, 2022

Ruling in Louisiana court halts Frisco’s plans for a locals-only short-term license type; officials will likely increase cap to 25%

 #colorado #frisco #coloradorealestate



A proposal to provide a short-term license category for residents has gained some traction. However, a recent decision in the U.S. Court of Appeals may prevent a locals-only rule.

“The only federal case law is very much against us,” Frisco Town Attorney Thad Renaud said.

The decision, issued Aug. 22 in the 5th Circuit of the U.S. Court of Appeals, ruled a New Orleans residency requirement to short-term rent was unconstitutional. Judges determined it violated the commerce clause in that it discriminated against out-of-state property owners, and thereby regulated interstate commerce which is the realm of the federal government.

The plaintiffs in the New Orleans case were a group of property owners whose short-term rental licenses were not renewed due to the city’s residency requirement. They also argued the city’s failure to renew their short-term rental licenses violated the takings clause because they had a property interest in the renewal of their licenses.

I wonder if the Breckenridge town council and planning staff have bothered to read it?