BHGR’s Public Entity Group Obtains Dismissal of Two Separate Challenges to Local Short-Term Rental Regulations

Who?

Summit County and the Town of Breckenridge (Breckenridge) are popular destinations for skiers and snowboarders. Many homeowners in these communities rent their mountain properties, often second homes, on a short-term basis to visitors to generate income.

What/When/Where?

Short-term rentals have proved problematic, however. For example, Summit County and Breckenridge both found that short-term rentals reduce the availability of workforce housing. Breckenridge also found that short-term rentals change the character of the area and create significant negative impacts such as loud and excessive noise and improper parking and trash disposal. In response, Summit County and Breckenridge each enacted different short-term rental regulations and licensing programs which require homeowners to apply for a short-term rental license and cap the number of short-term rental licenses within specific zones in the community.

A property owner and a resort homes company sued Summit County. A non-profit property owners group sued Breckenridge. In both cases, the plaintiffs alleged that the short-term rental regulations or ordinances violate multiple provisions of the United States Constitution as well as Colorado’s rent control statute. Summit County and Breckenridge each moved to dismiss the claims against them.

On June 25, 2024, a United States District Court Judge dismissed all the resort home company’s constitutional claims for failure to state a valid claim against Summit County and dismissed the state law claim without prejudice for lack of jurisdiction. Likewise, on July 9, 2024, a different United States District Court Judge dismissed all the non-profit group’s constitutional claims against Breckenridge for failure to state a valid claim and remanded the remaining state law claim to state court.

Why Does it Matter?

As a result of these rulings, the number of short-term rentals in Summit County and Breckenridge remain capped and subject to licensing requirements.

Our team

Josh Marks and Geoffrey Klingsporn of BHGR’s Public Entity Group represented Summit County and the Town of Breckenridge. Learn more about our Public Entity Group here.