In a much-anticipated decision, the Ninth Circuit Court of Appeals once again ruled against Airbnb and HomeAway in their long-standing challenge to the City of Santa Monica’s short-term rental (STR) regulations. At hand in this matter was a petition filed by Airbnb and HomeAway to have the court rehear the case after it decided in March that Santa Monica’s strict short-term rental regulations are constitutional and not barred by the Communications Decency Act (CDA), as the STR hosting platforms have argued. NMHC, NAA, other real estate trade groups and apartment firms filed an Amicus Brief before the Ninth Circuit Court of Appeals urging the court to reject the petition.
The court ultimately denied the petition for rehearing en banc, without any judge requesting a vote on whether to rehear the matter. AirBnb and HomeAway could move to file an appeal to the U.S. Supreme Court but experts believe that is unlikely.
At the heart of the Ninth Circuit’s original decision in this case is a recognition that Airbnb and other home sharing platforms cannot claim immunity under the CDA to avoid compliance with local STR regulation. This case is similar to one that NMHC and NAA took part in last year arguing that apartment owners and operators must maintain control over their properties and determine whether STR activity is permitted at their communities. NMHC and NAA also asserted that the CDA was being misused by STR platforms and should not allow these companies to avoid liability for knowingly violating apartment community rules and resident leases by facilitating STR activity where it is prohibited. That case, La Park La Brea (Aimco) vs. Airbnb, has since been settled between the two parties.
NMHC and NAA maintain the industry’s long-standing position that multifamily companies and other property owners should have the right to choose whether to participate or not in the short-term rental market. Further, they should be able to restrict the activity at their properties to maintain the security of their properties and to protect the quality of life for their residents.
For more information on short-term rentals, visit our advocacy page.
- Industry Defends Owners Choice for Short-Term Rentals
- Homeaway and Airbnb vs. City of Santa Monica Amicus Brief Regarding Short-Term Rentals
- Court Rules in Favor of Short-Term Rental Regulation
- D.C. Council Votes to Restrict Airbnb and Similar Rentals in Nation’s Capital
- NMHC/NAA Amicus Brief Regarding Short-Term Rentals