People walk in the Wellington neighborhood of Breckenridge in this March 12, 2009, file photo. (Helen H. Richardson/The Denver Post)
For the third time since February, a federal judge has sided with a mountain community over homeowners in determining that restrictions on short-term rentals are lawful.
On Tuesday, U.S. District Judge Nina Wang rejected arguments by a nonprofit homeowners’ group in Breckenridge that STR limitations there are unfair and unconstitutional.
“Breckenridge’s desire to limit perceived ill effects of STRs is a legitimate purpose,” Wang wrote in an 18-page order, “and the ordinances are rationally related to this end.”
In November, Colorado Property Owners for Property Rights sued the Town of Breckenridge. COPR, as it abbreviates itself, took issue with ordinances passed in 2021 and 2022 that capped the number of short-term rentals in Breckenridge at 2,200, split the town into four zones with caps for each zone, and made short-term rental licenses non-transferable.
“Although the ordinances have the laudable purpose of increasing the supply and affordability of workforce housing within the town,” its lawsuit said, “the ordinances nevertheless violate the plain language of Colorado’s statutory prohibition on rent control.”
The following month, Breckenridge’s attorneys filed a motion to dismiss the lawsuit, writing that “the short-term rental ordinances are a valid exercise of the town’s police powers.”
Breckenridge asked Wang to dismiss all six claims against the town. Instead, on Tuesday, the judge dismissed the five federal law claims and remanded one state law allegation — that Breckenridge unlawfully imposed rent control — to a state judge in Breckenridge.
Wang found that the town ordinances are “rationally related to controlling associated noise, parking and waste disposal,” do not violate homeowners’ due process rights, do not discriminate against out-of-state homeowners, and do not unduly harm interstate commerce.
“To the extent that the ordinances will have the incidental effect of increasing STR costs, those increased costs are borne by Coloradans and others alike,” the judge determined.
Wang’s decision follows similar rulings in February and June that upheld STR fees and limits in Estes Park and unincorporated Summit County, respectively. Meanwhile, a condo association in Telluride is challenging STR rules there and a motion to dismiss that case is pending.
COPR was represented by Ryan Horace and Jordan May with Frascona Joiner Goodman & Greenstein in Boulder, along with Tim Knapp from Knapp & Associates in Arvada.
“Colorado Property Owners for Property Rights and its leadership were disappointed by the federal court’s partial dismissal of its claims,” the group’s board of directors said in a statement to BusinessDen. “COPR is evaluating its legal options, including a potential appeal.”
The Town of Breckenridge was represented by the attorneys Geoffrey Klingsporn and Josh Marks with Berg Hill Greenleaf & Ruscitti in Boulder.
“The town’s approach to the regulation of short-term rentals was based on extensive stakeholder engagement and a sound understanding of business licensing,” Breckenridge Town Attorney Kirsten Crawford said in a statement Thursday. “The town is pleased to see that the federal court order dismissed the federal claims in their entirety.”
People walk in the Wellington neighborhood of Breckenridge in this March 12, 2009, file photo. (Helen H. Richardson/The Denver Post)
For the third time since February, a federal judge has sided with a mountain community over homeowners in determining that restrictions on short-term rentals are lawful.
On Tuesday, U.S. District Judge Nina Wang rejected arguments by a nonprofit homeowners’ group in Breckenridge that STR limitations there are unfair and unconstitutional.
“Breckenridge’s desire to limit perceived ill effects of STRs is a legitimate purpose,” Wang wrote in an 18-page order, “and the ordinances are rationally related to this end.”
In November, Colorado Property Owners for Property Rights sued the Town of Breckenridge. COPR, as it abbreviates itself, took issue with ordinances passed in 2021 and 2022 that capped the number of short-term rentals in Breckenridge at 2,200, split the town into four zones with caps for each zone, and made short-term rental licenses non-transferable.
“Although the ordinances have the laudable purpose of increasing the supply and affordability of workforce housing within the town,” its lawsuit said, “the ordinances nevertheless violate the plain language of Colorado’s statutory prohibition on rent control.”
The following month, Breckenridge’s attorneys filed a motion to dismiss the lawsuit, writing that “the short-term rental ordinances are a valid exercise of the town’s police powers.”
Breckenridge asked Wang to dismiss all six claims against the town. Instead, on Tuesday, the judge dismissed the five federal law claims and remanded one state law allegation — that Breckenridge unlawfully imposed rent control — to a state judge in Breckenridge.
Wang found that the town ordinances are “rationally related to controlling associated noise, parking and waste disposal,” do not violate homeowners’ due process rights, do not discriminate against out-of-state homeowners, and do not unduly harm interstate commerce.
“To the extent that the ordinances will have the incidental effect of increasing STR costs, those increased costs are borne by Coloradans and others alike,” the judge determined.
Wang’s decision follows similar rulings in February and June that upheld STR fees and limits in Estes Park and unincorporated Summit County, respectively. Meanwhile, a condo association in Telluride is challenging STR rules there and a motion to dismiss that case is pending.
COPR was represented by Ryan Horace and Jordan May with Frascona Joiner Goodman & Greenstein in Boulder, along with Tim Knapp from Knapp & Associates in Arvada.
“Colorado Property Owners for Property Rights and its leadership were disappointed by the federal court’s partial dismissal of its claims,” the group’s board of directors said in a statement to BusinessDen. “COPR is evaluating its legal options, including a potential appeal.”
The Town of Breckenridge was represented by the attorneys Geoffrey Klingsporn and Josh Marks with Berg Hill Greenleaf & Ruscitti in Boulder.
“The town’s approach to the regulation of short-term rentals was based on extensive stakeholder engagement and a sound understanding of business licensing,” Breckenridge Town Attorney Kirsten Crawford said in a statement Thursday. “The town is pleased to see that the federal court order dismissed the federal claims in their entirety.”
