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, a majority of the city council approved and adopted Ordinance

No. 1174 (Ordinance 1174), which became effective the following month. 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

1 “SLAPP is an acronym for ‘strategic lawsuit against public participation.’” (Jarrow Formulas, Inc. v. LaMarche (2003) 31 Cal.4th 728, 732, fn. 1.)

2 neighborhoods not governed by conditions, covenants, and restrictions 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.

To rent an eligible property as a short-term rental, an owner must obtain a short-

term rental certificate from the City. The certificate must be renewed annually. Any

property owner who had a valid certificate when Ordinance 1174 became effective for a

property that was made ineligible for short-term rentals by the new law would not…