About six years after it started regulating short-term rentals, the City of Fort Worth is fighting to keep them, approving more money for an outside attorney's help.
During Tuesday's meeting, city council members approved about $300,000 to law firm, Kelly Hart & Hallman.
According to a city document, the city hired the firm as outside counsel in September to fight a lawsuit challenging the city's short-term rental ordinances.
The $300,000 comes on top of $150,000 previously approved and "will be needed for the legal services necessary to bring these lawsuits to a successful conclusion," according to the document.
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The document indicated that the law firm was needed "because of the extraordinary complexity of this area of law and importance to the city."
Lauren Brady is one of the plaintiffs in the lawsuit.
“I started hosting in 2017 to assist a disabled family member. We were trying to figure out how to support her and thought that this might be a fun way to earn some income while also supporting our family," she said.
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In 2018, the city passed an ordinance banning short-term rentals (STRs) from residential neighborhoods. Something Brady said she didn't know about until she received her first citation the next year.
“And that's really when I started trying to find allies and other people who were in my situation so that we could band together and hopefully influence some changes within the city," Brady said.
She helped start the Fort Worth Short-Term Rental Alliance in 2022, with the goal of working with the city to educate them and neighbors about the benefits of STRs.
“It's for medical treatments or adopting children or just graduations, or TCU football games. We get to be a part of that and it's a lot of fun and it's something that as an STR host community, we're really proud of. So, we felt like we needed to protect that," she said.
But when the city passed another ordinance in 2023 requiring STRs to register, Brady said they started looking at legal options and ended up suing the city over their rules.
The lawsuit lists over 100 plaintiffs who say the city's regulations are unconstitutional.
"The state of Texas affords every property owner the right to rent their home for any length of time, and we're just asking for the city to protect that right for all Fort Worth homeowners," Brady said.
In a statement to NBC 5, Fort Worth's assistant city manager said the city's policy is designed to strike a balance.
"The City of Fort Worth's short-term rental (STR) policy is designed to maintain community character while still allowing owners in approved areas to generate income from their properties. STRs must be registered with the city, comply with zoning laws, and pay hotel taxes. Additionally, operational standards include limits on guest numbers, bans on outdoor events after 10 p.m., requirements for on-site parking, and adherence to noise and trash ordinances. This policy was informed by practices in other cities with similar neighborhood preservation goals and responsible STR management," wrote Dana Burghdoff.
Fort Worth's 2023 ordinance requiring registration states that the city had gotten several complaints about STRs from neighbors through code enforcement, police, and city council members.
The ordinance says the city didn't have proper contact information for STR owners when trying to investigate complaints, and that registering would also help the city ensure that STRs were paying all required taxes, including hotel taxes.
The lawsuit accuses the city and others of trying to impose rules of "criminalizing short durations of lease."
It also alleges that Fort Worth "has produced no evidence that a single ticket was ever issued for any type of nuisance caused at an STR."
“So, it's very hard to say that this ordinance does actually serve a legitimate governmental interest versus just appeasing people who don't want a short-term rental in their neighborhood," Brady said.
She hopes the rules are reversed, and STRs can operate freely as an affordable bridge in the hotel market that offers a special touch.
"They have a place in the community. They have a place for travelers. So, we want that protected," she said.
A hearing for the case is scheduled for December 18, when Brady said they hope the judge will make a decision.
She said if that doesn't happen, or if the judge rules against them, the plaintiffs plan to take the case to trial.
