FAYETTEVILLE, Ark. — A couple from Texas is suing the City of Fayetteville over its rules regarding short-term rentals.
Shelley and Stephen Hause of Round Rock, Texas, filed a complaint against the city on July 14.
The complaint says that the Hauses bought a property in Fayetteville in 2023 to have a place to stay during their trips to visit their daughter, a student at the University of Arkansas who requires regular care due to health concerns.
The couple says that they hoped to rent the home out when not in use in order to help offset costs.
"Given the expense of maintaining a second home, plaintiffs selected the property with the intent of renting it out on a short-term basis between their trips to help offset these costs," the complaint said.
However, an ordinance enacted on April 20, 2021, by the Fayetteville City Council applied stronger regulations on residential real estate offered for rent for fewer than thirty days at a time, according to the complaint.
The complaint says that at the time of purchase, the city had not yet issued the maximum number of short-term rental licenses required by the ordinance.
The couple claims that at the time of purchasing their home in Fayetteville, they weren't provided with "any indication that their proposed use would be disallowed." They submitted their application for a conditional use permit on September 15, 2023, and the maximum had still not yet been reached, the complaint said.
The city approved the couple's application on Sept. 28, but the planning commission denied it on Oct. 23 on city staff's recommendation that "the proposed short-term rental is incompatible with the neighborhood" due to the number of rentals already there.
The Hauses appealed on Nov. 2 but learned later that no members of the city council had agreed to sponsor the appeal, effectively denying it.
"Given their underlying motivation for purchasing the property, the plaintiffs wish to rent it out for fewer than thirty days at a time. However, they have been thwarted by the city's enforcement regime and its arbitrary denial of their application for a conditional use permit to operate a short-term rental," the complaint said.
Court documents show the Hauses are asking the city to pay the damages "for the deprivation of beneficial use" or "the fair market value of said property taken without just compensation by the City."
When 5NEWS reached out for comment, the city said they plan to defend the city's ordinance, but could not release any other information due to it being an open case.
Legal counsel for both parties was present at a hearing in Fayetteville on Aug. 1, and the couple is asking for an injunction. You can read more about that hearing here.
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