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

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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.

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