Airbnb Hits Miami With Lawsuit

(Story updated at 10:35 p.m. on Friday) MIAMI, FL — Responding to a crackdown on its services in Miami and Miami Beach, Airbnb filed a lawsuit against the city of Miami on Friday. The suit seeks to block city officials from enforcing a "purported" vacation rental ban against Airbnb and its hosts in Miami.

Officials in Miami and nearby Miami Beach are waging a crackdown on what they view as "illegal" short-term rentals. Miami Beach levies up to a $20,000 per fine on such rentals in residential areas while Miami promises to take action through code enforcement on homes that create a public nuisance and violate residential zoning restrictions. (Sign up for our free Daily Newsletters and Breaking News Alerts for the Miami Patch.)

"The city has recently undertaken an aggressive anti-Airbnb campaign that includes threats against individual Airbnb hosts who attended a city commission meeting to publicly voice their support for vacation rentals in Miami," the lawsuit stated. "The city is now acting to make good on those threats. Airbnb stands together with its Miami hosts in opposing the city’s unlawful efforts, and in particular stands with the brave individuals who have come forward and seek to protect their rights as individual plaintiffs in this action."

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Also named as plaintiffs in the suit are five Miami resident-hosts of the service — Yamile Bell, Ana Rubio, Gary M. Levin, Toya Bowles and Kenneth J. Tobin.

"When those wielding the power of government seek to deprive members of our community of their fundamental rights — property rights, free speech, the right to petition without fear of retribution — we are compelled to act," the lawsuit charged.

In an op-ed published on Patch, Airbnb's Tom Martinelli said on Friday that the service is hoping to work more closely with nearby Coral Gables in the wake of political battles with Miami and Miami Beach. Martinelli is the director of public policy for Airbnb Florida.

While the lawsuit only pertains to the city of Miami, both Miami and Miami Beach are threatening to challenge the Homestead exemptions of violators that could see property taxes for those homeowners double or even triple depending on how long they've owned their properties.

"With cities worldwide rejecting their business model coupled with a pending IPO, I can certainly understand that Airbnb must be highly concerned," Miami Beach Mayor Philip Levine told Patch on Friday night. "The issues in the suit do not seem to pertain to the city of Miami Beach."

The lawsuit alleges that the city of Miami violated the First Amendment rights of Airbnb hosts who spoke out at a public hearing. "Citizens have the right to speak to their government without fear of retribution in our country," the lawsuit stated. The city’s retaliatory action violates the First Amendment to the United States Constitution . . . and is particularly nefarious because the public nature of the city’s declaration has the effect of chilling speech and dissent."

Airbnb is asking the court to issue a declaration that "vacation rentals" are not prohibited in the city's T3 transect zone through the provisions of Miami 21, which serves as an official blueprint for city zoning. The company is also seeking a "declaration that the city is preempted from adopting any new ordinances or resolutions that have the effect, by themselves or in combination with any provisions of Miami 21 or any other law, ordinance or regulation adopted before June 1, 2011, of prohibiting vacation rentals or regulating the duration or frequency of rental of vacation rentals."

Miami Mayor Tomas Regalado pictured at a press conference in which he announced the crackdown against Airbnb. Photo by Paul Scicchitano.