Judge Dismisses AirBnB, HomeAway Lawsuit Against Santa Monica

SANTA MONICA, CA – Home sharing websites AirBnB and HomeAway had their lawsuit dismissed by a federal district court on Thursday; the companies were trying to challenge Santa Monica's home sharing law, officials announced Monday. The lawsuit sought to invalidate sections of the City's law that "penalize online platforms for booking short-term rentals of unlicensed properties," City officials told Santa Monica Lookout.

The judge said Santa Monica has a right to keep the home sharing websites from doing illegal business in the city, the Santa Monica Daily Press reported.

City Attorney Lane Dilg supported the decision, and said it protects housing in Santa Monica.

"Today's decision affirms that cities can take reasonable steps to preserve precious housing supply," Dilg said in a statement to the Santa Monica Lookout.

Santa Monica's laws allow residents to rent to visitors for less than one month, as long as both the resident and visitor are living in the home, apartment, or condominium, the newspaper reported.

Hosts must obtain a business license and register with the City, according to the Santa Monica Daily Press. These rules "maintain the character of local neighborhoods and preserve housing in the midst of a statewide crisis," City leaders told the newspaper.

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