Vacation Rental Owners and Neighbors of Rancho Mirage v. City of Rancho Mirage CA4/2

BACKGROUND

A. The City’s Regulation of Short-Term Rentals

In November 2020, the city council approved and adopted Ordinance 1174, which

became effective the following month. Ordinance 1174 was added to Title 3 of the City’s

municipal code.

Ordinance 1174 prohibits short-term rentals in all public neighborhoods and in any

common interest development imposing such a restriction. Public neighborhoods are

defined as nongated neighborhoods not governed by conditions, covenants, and

restrictions (CC&Rs) and in which residential parcels abut public streets. Common

interest developments are defined as any development subject to the provisions of the

Davis–Stirling Common Interest Development Act, Civil Code section 4000 et seq. and

as defined in section 4100 of the Civil Code, “including without limitation homeowners

associations, condominium owner associations and similar associations formed pursuant

to the aforementioned Act.” (Boldface and underlining omitted.) Civil Code section

2 4100 provides: “‘Common interest development’ means any of the following: [¶] (a) A

community apartment project. [¶] (b) A condominium project. [¶] (c) A planned

development. [¶] (d) A stock…