Background
Plaintiffs are individuals who own homes in Hood River, Oregon, but reside outside Oregon. They appealed a district court decision granting summary judgment in favor of the City of Hood River. The plaintiffs claimed that the City ordinances regulating short-term rentals violated the dormant Commerce Clause.
The court’s reasoning
The court found that the ordinances do not discriminate against out-of-state interests as they apply equally to owners who reside in Hood River and those who do not. The court also rejected the argument under the balancing test for interstate commerce burdens because the plaintiffs did not introduce evidence that the ordinances impose a substantial burden on interstate commerce. The court found no procedural error requiring a remand.
What it means going forward
The decision upholds the City of Hood River’s ability to regulate short-term rentals by requiring properties to be the primary residence of the owner or a long-term tenant.