Court Throws Out HOA Amendment to Declaration that Prohibited Short-Term Rentals

This case involved a dispute between condominium owners (“Owners”) and their homeowners’ association (“Association”) over the validity of an amendment to Association’s Declaration that prohibited short-term rentals during the period from November 1^st through March 31^st of each year. The term “short-term rental” was defined as “any lease (including subleases, licenses, and other possessory interests, whether oral or written) of one or more Units (or a portion thereof), for which the intended occupancy of the Unit is for a period or periods of less than thirty (30) days, irrespective of the stated term of the lease (including subleases, licenses, and other possessory interests, whether oral or written).”

The plaintiffs filed suit seeking a declaratory judgment that the amendment to the Declaration was unreasonable, and injunctive relief preventing the enforcement of the amendment. The trial court granted summary judgment in favor of Owners and the Association appealed, contending that the amendment was reasonable.

In reviewing the case, the appellate court stated: