District Judge Monica Purdy granted a temporary injunction on Dec. 6 that will allow Dallas short-term rental owners to continue operating while the matter is tied up in litigation. A non-jury trial is set for June 3, 2024.
The Dallas City Council banned short-term rentals from residential neighborhoods in June and vowed to begin enforcing the new initiative in mid-December. However, the Dallas Short-Term Rental Alliance announced on Oct. 2 the hire of “top litigation firm” Lynn Pinker Hurst Schwegmann to sue the City of Dallas, seeking an injunction allowing short-term rentals to continue operating throughout the city limits. Four longtime STR operators: Sammy Aflalo, Vera Elkins, Danielle Lindsey, and Denise Lowry also joined the suit and are named as plaintiffs in Judge Purdy’s ruling.
“Plaintiffs presented evidence that STRs provide temporary lodging for a variety of guests: out-of-state visitors traveling to Dallas for weddings, concerts, to see family members who are hospitalized, or local Dallas citizens who are briefly dislodged from their residence for construction or an emergency,” the ruling states. “Plaintiffs presented evidence that STRs provide needed housing for people who prefer to stay in a home rather than a hotel.”
DSTRA board member Lisa Sievers told daltxrealestate.com in October that the vast majority of Dallas short-term rental operators are good actors who bring value to their neighborhoods.
Based on the temporary injunction, the City of Dallas is prohibited from enforcing the STR ban approved in June. Read the judge’s 12-page ruling here.
“The Court hereby ENJOINS the City of Dallas from any enforcement of the Zoning Ordinance and Registration Ordinance,” the ruling states. “This order does not bar the enforcement of registration, taxation, and general anti-nuisance laws that were in effect before the enactment of those ordinances.”
Representatives from the Dallas City Attorney’s Office and Communications Office responded Wednesday with the following statement:
“On June 14, 2023, the City of Dallas enacted two ordinances to regulate the use of property as a short-term rental (STR), with enforcement scheduled to begin on December 14, 2023. On October 2, 2023, a group representing STR operators filed a lawsuit challenging the ordinances and sought a temporary injunction to prevent the city from enforcing the ordinances. A hearing on the temporary injunction was held on December 1, 2023.
On December 6, 2023, the court entered a temporary injunction prohibiting enforcement of the two STR ordinances. The City is considering its options regarding appeal of the temporary injunction. In the meantime, the City will continue enforcement of its existing ordinances governing minimum property standards, disturbing noises, and private nuisances.”
