Southold's Short Term Rental Law Challenged by Homeowners, Orient Attorney; Town Supervisor Responds

NORTH FORK, NY - An Orient attorney representing a group of Southold homeowners has posed a challenge to the town's new short-term rental law, demanding that the new transient rental legislation be suspended immediately.

According to a letter sent to the Southold Town Board and Town Attorney Bill Duffy, the legislation, which was adopted in August after months of heated and contentious debate, is "legally flawed in numerous respects."

The legislation bans short-term rentals of less than 14 nights in Southold Town.

During numerous public hearings, those in support of short-term rentals said the new limitations would effectively put the brakes on airbnb and others such sites. Others cried out for relief from quality of life concerns and commercial business operations taking place in their residential neighborhoods.

The homeowners challenging the law are represented by Orient attorney Salem M. Katsh, who also spoke out at last year's public hearings; Katsh, in the letter, asked for a public hearing or meeting with the board as soon as possible.

According to Katsh, "There are ongoing unlawful enforcement efforts now being prosecuted by town enforcement personnel, threatening criminal fines of up to $104,000 for a 13 day rental ($8,000 per day) and jail for up to one year. These illegal activities must be stopped forewith," the letter said.

The letter added that the homeowners are not opposed to "reasonable regulation" of short term rentals in Southold, such as a registry or permit process for which fees could be imposed.

The homeowners, he added, "urge" the board to enforce laws already on the books that regulate and prohibit behavior with an eye toward preserving the area's quality of life.

However, Katsh added, "the new ordinance cannot stand." As a step short of expensive litigation, Katsh said he and his clients are filing an appeal with the Southold zoning board of appeals, to overturn the determinations set forth in various enforcement letters being send out by the town's code enforcement officer.

With enforcement efforts "stayed," Katsh said the opportunity will exist to discuss how the law may be revised to overcome legal issues outlined in his letter.

In addition, Katsh said the board should continue consideration of a comprehensive rental law, something that was discussed during the public hearings last year.

The letter states that the town cannot prohibit homeowners who have already been renting out their homes from continuing to do so in the future, and also, Katsh said it is a violation of a homeowner's First Amendment rights to take away the right to advertise their homes for rent freely in the "commercial marketplace."

Crackdown so far

On Wednesday, Russell said enforcement of the ban on rentals shorter than 14 days is an "ongoing process. We have taken an active approach and have sent out approximately 40 notices. Our first task is to let these owners know that leasing these properties for less than 14 nights is not permitted with our ultimate goal of getting compliance with the new law. I am confident that we will see substantial compliance."

Of the legal challenge, Russell said, "My only comment is that the law is perfectly legal, easily defendable and, above all else, fair."

A town divided

The board voted 4 -1 on August 25, 2015 to adopt the legislation.

The vote came after months of heated debate and long public hearings, as residents stood at the podium and begged the town board to protect their quality of life. Others, second homeowners who rented out their homes on sites such as airbnb said the income was critical to their ability to one day move full-time to their residences; short-term renters said guests provided an influx of business to Southold and were a proven boon to the economy.

The town board, however, maintained that commercial endeavors should not be taking place in residential communities and also felt the short-term rental industry could prove disastrous to an already dwindling year-round housing stock in Southold Town.

Councilwoman Jill Doherty voted "no" to the legislation; she had long advocated for a seven night minimum.

At the time of the vote, the board also moved to hire another part-time code enforcement officer; later, the board instituted an online code complaint hot line so residents can get immediate attention for quality of life concerns and other code violations.