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Tex App: Like We Said Before, Property Owners Are Likely To Succeed In Challenge To Short-Term Rental Ban
2025-09-02 15:53 UTC by Robert Thomas (inversecondemnation.com)

Texas court of appeals fifth

Here's the latest in a case we've been following
Recall that a couple of months ago, the court of appeals held that the challengers were likely to succeed in their challenge to Dallas's short-term rental ban. The case was up on appeal from a preliminary injunction, so there wasn't a lot in that decision. 
Now, we have a decision after fuller consideration after the city asked for en banc review. In City of Dallas v. Dallas Short-Term Rental Alliance, No. 05-23-01309 (July 18, 2025), the court again concluded that the challenger property owners were likely to succeed on their claim that the city's ban on short-term renting violated the due-course-of-law requirement under the Texas Constitution:
Under the circumstances, we conclude appellees Dallas Short Term-Rental Alliance, Sammy Aflalo, Vera Elkins, and Denise Lowry proved their probable right to relief against the City’s zoning ordinance under their due-course-of-law argument because they alleged they possessed well-established rights to lease their property and presented evidence tending to show that the City would deny them those rights by enforcing the zoning ordinance at issue.
Slip op. at 8. 
The court also held that the trial court did not abuse its discretion when it concluded that the owners have shown a "probable right to relief" because the city has not attacked the trial court's factual findings that the regulation's restrictions on maximum occupancy and related are unreasonably burdensome and oppressive:
Therefore, we cannot conclude the trial court abused its discretion when it concluded appellees are likely to prevail on their request for declaratory relief because the registration ordinance is likely unconstitutionally oppressive in light of the alleged but presently unsupported governmental interest in limiting the maximum occupancy of short-term rentals.
Slip op. at 11. 
Worth checking out. We shall continue to monitor. 

City of Dallas v. Dallas Short-Term Rental Alliance, No. 05-23-01309-CV (Tex. App. July 18, 2025)


 

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