Keystone Lake on a warm, sunny day Oct. 28, 2022. (Andy Cross/The Denver Post)
A federal judge has rejected a lawsuit from a group of homeowners in Summit County who questioned the constitutionality of new regulations on short-term rentals there.
Judge Gordon Gallagher appeared sympathetic to the homeowners, writing in a 19-page decision Tuesday that the county ordinance has had “significant consequences” and the “grievances, concerns and potential financial repercussions of the ordinance are valid.”
But “it is important to clearly denote the role of this court, which does not include second-guessing the legislative process or creating policy,” he wrote. “Rather, this court must determine the constitutionality and legality of the ordinance — nothing more and nothing less.”
And because it is constitutional, the ordinance will remain on the books, he decided.
Summit County Resort Homes Inc., a nonprofit group of homeowners in unincorporated parts of the county, sued the government last August, arguing that “blunderbuss” restrictions have created “short-term rental haves and have-nots,” revealed the county’s “unfounded bias against STRs,” violated homeowners’ constitutional right, and threatened their livelihoods.
A state law passed in 2020 made it easier for local governments to restrict short-term rentals. Since then, Summit County has transitioned from STR permits to STR licenses, capped the number of licenses it issues to non-residents who rent out homes in residential areas, and capped the number of bookings all homeowners can accept at 35 per year.
Lawyers for the county asked that SCRH’s lawsuit be dismissed and Gallagher held oral arguments in Grand Junction in April. Two months later, he made his decision.
“Plaintiffs have not established that the right to rent one’s property is a fundamental right,” he wrote, “and concede that they do not have a fundamental right to an STR license.”
Gallagher determined that the county can legally zone resort areas differently than it zones residential areas, can constitutionally limit rentals from out-of-state homeowners, and called it “a possible red herring” for SCRH to accuse the county of discriminating against retirees.
Gallagher’s decision this week is the latest legal setback for Colorado homeowners upset about resort-town restrictions on short-term rentals. His order cites a Denver judge’s decision from February that found fees and regulations in Estes Park were constitutional. Meanwhile, a third case regarding Breckenridge’s restrictions is still ongoing in federal court.
Summit County Resort Homes was represented by lawyers Matthew Arentsen, Justin Cohen, Wayne Forman and Rosa Baum with Brownstein Hyatt Farber Schreck in Denver. The nonprofit group and its attorneys did not answer requests for comment on the decision.
Summit County was represented by County Attorney Jeff Huntley alongside Geoffrey Klingsporn and Josh Marks with the law firm Berg Hill Greenleaf & Ruscitti in Boulder. Huntley and a county spokeswoman likewise did not answer requests for comment.
Keystone Lake on a warm, sunny day Oct. 28, 2022. (Andy Cross/The Denver Post)
A federal judge has rejected a lawsuit from a group of homeowners in Summit County who questioned the constitutionality of new regulations on short-term rentals there.
Judge Gordon Gallagher appeared sympathetic to the homeowners, writing in a 19-page decision Tuesday that the county ordinance has had “significant consequences” and the “grievances, concerns and potential financial repercussions of the ordinance are valid.”
But “it is important to clearly denote the role of this court, which does not include second-guessing the legislative process or creating policy,” he wrote. “Rather, this court must determine the constitutionality and legality of the ordinance — nothing more and nothing less.”
And because it is constitutional, the ordinance will remain on the books, he decided.
Summit County Resort Homes Inc., a nonprofit group of homeowners in unincorporated parts of the county, sued the government last August, arguing that “blunderbuss” restrictions have created “short-term rental haves and have-nots,” revealed the county’s “unfounded bias against STRs,” violated homeowners’ constitutional right, and threatened their livelihoods.
A state law passed in 2020 made it easier for local governments to restrict short-term rentals. Since then, Summit County has transitioned from STR permits to STR licenses, capped the number of licenses it issues to non-residents who rent out homes in residential areas, and capped the number of bookings all homeowners can accept at 35 per year.
Lawyers for the county asked that SCRH’s lawsuit be dismissed and Gallagher held oral arguments in Grand Junction in April. Two months later, he made his decision.
“Plaintiffs have not established that the right to rent one’s property is a fundamental right,” he wrote, “and concede that they do not have a fundamental right to an STR license.”
Gallagher determined that the county can legally zone resort areas differently than it zones residential areas, can constitutionally limit rentals from out-of-state homeowners, and called it “a possible red herring” for SCRH to accuse the county of discriminating against retirees.
Gallagher’s decision this week is the latest legal setback for Colorado homeowners upset about resort-town restrictions on short-term rentals. His order cites a Denver judge’s decision from February that found fees and regulations in Estes Park were constitutional. Meanwhile, a third case regarding Breckenridge’s restrictions is still ongoing in federal court.
Summit County Resort Homes was represented by lawyers Matthew Arentsen, Justin Cohen, Wayne Forman and Rosa Baum with Brownstein Hyatt Farber Schreck in Denver. The nonprofit group and its attorneys did not answer requests for comment on the decision.
Summit County was represented by County Attorney Jeff Huntley alongside Geoffrey Klingsporn and Josh Marks with the law firm Berg Hill Greenleaf & Ruscitti in Boulder. Huntley and a county spokeswoman likewise did not answer requests for comment.
