AirBnB Loses Battle Against Santa Monica's Home-Sharing Law

SANTA MONICA, CA – A federal appeals court Wednesday affirmed the city of Santa Monica's home-sharing ordinance after Airbnb and HomeAway.com attempted to challenge the city's regulations.

The 9th Circuit Court of Appeals ruling confirms the city's right to regulate home sharing in order to protect its limited housing stock for residents, according to city officials.

"We are thrilled to have confirmation from the Ninth Circuit that our balanced approach to home sharing is working at a time when housing and affordability continue to challenge the region," said Santa Monica Mayor Gleam Davis. "This is a big win for Santa Monica residents and our residential neighborhoods."

The unanimous decision affirms the district court's dismissal of Airbnb and HomeAway's claims that the City's Home-Sharing Ordinance violated the Communications Decency Act and the First Amendment, City Attorney Lane Dilg said.

"This critical local law prevents residences in our community from being converted into de facto hotels; it protects affordable housing and it helps residents stay in their homes," Dilg said.

Santa Monica's Home-Sharing Ordinance regulates two types of short-term rentals: home-sharing and vacation rentals. Santa Monica allows home-sharing for periods of 30 consecutive days or less if at least one of the primary residents lives on-site throughout the visitor's stay. The guest can have non-exclusive shared use of the unit with at least one person who lives at the location, according to the City. Vacation rentals are rentals of any type of unit, in whole or in part, to any person for exclusive use of 30 consecutive days or less when the unit is only approved for permanent residential occupancy. It's prohibited for guests to enjoy exclusive private use of a unit in Santa Monica.

To read more about the home-sharing and rental regulations, visit the City of Santa Monica website.

City News Service contributed to this post