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America September 12, 2023 3 mins read

NC Short-Term Rentals Ban in Spotlight as Homeowners Association Takes Battle to Appeals Court

America ı By Rochdi Rais

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NC short-term rentals ban

Amidst the scenic beauty of western North Carolina's mountains, a fierce legal storm is brewing. At the heart of the tempest lies the contentious NC short-term rentals ban, pitting homeowners against community associations.

Preserving the Neighborhood Spirit

White Oak Plantation Homeowners Association, a tranquil community nestled in the mountains, seeks to ensure that the peace isn't shattered by the transient footfalls of short-term renters. This Monday, they made a fervent plea to the state Court of Appeals. Drawing parallels to existing neighborhood codes, they stated that short-term rentals such as those featured on Airbnb and Vrbo disrupt the intended serenity of the community. "These provisions signify an intent that the homes be used as stable, long-term residences — not offered as short-term rentals for a fee."

In their quest to uphold the ban, the association didn't hesitate to evoke the sanctity of precedent. They ardently reminded the court that while change is inevitable, amendments to community agreements must be rooted in reason. For White Oak, that reason was clear: preserving the neighborhood's familial essence, far from the chaos of fleeting renters.

Legal Frameworks and Past Judgments

Steeped in their conviction, White Oak cited the 2006 Armstrong v. Ledges Homeowners Association decision. This ruling by the state Supreme Court, they pointed out, resonated with their belief, asserting that capping rental frequencies is within reason.

Yet, they aren't against rentals per se. But there's a catch: renters need to stay for a minimum of 90 days, ensuring they respect the essence of the community. A 1986 judgment, McElveen-Hunter v. Fountain Manor Association, further fuels their confidence, having previously upheld a community's right to regulate short-term rentals.

Venturing further, White Oak proposed a compromise. Even if the Appeals Court found the ban on existing property owners unreasonable, they sought permission to impose restrictions on future homeowners, ensuring the community remains insulated from short, chaotic stays.

Origins of the Dispute: From Peaceful Streets to Legal Arenas

The root of this legal imbroglio lies in a 2020 lawsuit initiated by two homeowners, the McDougalds and Lavignes. They challenged White Oak's decision to ban short-term rentals. A significant event preluded this; in 2018, one of the McDougalds earned a staggering $14,000 a week by renting out their home. This lucrative venture had unintended consequences - a surge in traffic, increased street parking, and a noticeable spike in litter.

Responding to these changes, the association swiftly passed a ban on short-term rentals in 2019. But the narrative took a twist in 2022 when a trial court sided with the homeowners, denouncing the ban as unreasonable. White Oak, unsurprisingly, appealed.

While awaiting the court's verdict, the renting homeowners remain steadfast, asserting that the imposed restrictions aren't reasonable amendments.

As this saga unfolds, the state and its residents eagerly await a ruling that could shape the future of North Carolina's rental landscape.

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Rochdi Rais

Rochdi Rais is the Fractional Head of Growth and financial and legal writer at USA Herald. He has been writing and editing financial, legal and U.S. news for years with over +4000 articles published during his career.

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