Phase 1 - Short-Term Rental - Primary Residence Code Amendment

The Denton Development Code (DDC) allows for Short-Term Rental uses within all residential zoning districts, and current regulations require that the Short-Term Rental be the owner’s primary residence. Therefore, staff is proposing to amend the DDC to remove the primary residency requirement.

This proposed Code amendment is in response to a recent 5th Circuit court decision in the case of Hignell-Stark v. City of New Orleans. The 5th Circuit recently held that the City of New Orleans’ regulation requiring Short-Term Rental applicants to demonstrate that the Short-Term Rental dwelling unit was their primary residence was unconstitutional under the dormant federal Commerce Clause; it was determined to be unconstitutional because it discriminated against out-of-state real estate owners who wanted to operate Short-Term Rentals in New Orleans. Because of this court decision, staff determined that the DDC requirement that a Short-Term Rental be the applicant’s primary residence could be legally challenged.

More recently, there has been a lawsuit filed against the City of Fort Worth where Short-Term Rental owners allege that the city’s regulations are essentially a ban on Short-Term Rental uses in residential districts. With this lawsuit, coupled with the 5th Circuit decision, staff believes that it is necessary that the DDC be amended at this time solely as it relates to removing the primary residency requirement in order to minimize any potential litigation against the City of Denton.

The City of Denton Planning and Zoning Commission will hold a public hearing and consider making a recommendation to City Council amending the Denton Development Code related to Short-Term Rental, specifically amendments to Sections 5.3.5T.1.b and 5.3.5T.2.e.iii related to requiring that a short-term rental property is the applicant’s primary residence. After the P&Z meeting, the recommendation of P&Z will be forwarded to the City Council for consideration and final action.


MEETING DETAILS:

Planning and Zoning Commission Public Hearing

Wednesday, July 19, 2023, 6:30 pm

City Hall, City Council Chambers

215 E McKinney St

Denton, TX 76201


City Council Public Hearing

Tuesday, July 25, 2023, 6:30 pm

City Hall, City Council Chambers

215 E McKinney St

Denton, TX 76201

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