Court Says, Absent Prohibitions in the Declaration, HOA Directors Can Impose Short-Term Rental Restrictions by Board Resolution

This case involved a dispute between homeowners (“Owners”) and their homeowners association (“Association”) over Owners’ right to rent their home on a short-term basis through Airbnb despite a resolution adopted by Association’s board of directors which banned rentals under 180 days. Association sued Owners for injunctive relief, statutory civil damages of $200 per day, and attorney’s fees for violating the restriction.

In defense of the Association’s lawsuit, Owners contended that the short-term rental policy adopted by Association’s board of directors was invalid because it was adopted by board resolution, as opposed to by an amendment to the recorded deed restrictions through the required 75% owner vote. Owners also contended that the governing documents did not authorize an award of attorney’s fees.

The trial court granted summary judgment in favor of the Association and awarded the Association damages, injunctive relief, and attorney’s fees. Owners appealed contending: