Federal judge blocks rollout of Clark County short-term rental rules

Upcoming Clark County rules for Airbnb over short-term rental listings on its platform cannot take effect while a federal lawsuit proceeds, “pending a final decision on the merits,” according to a federal judge.

U.S. District Judge Miranda Du issued the preliminary injunction Thursday, citing a federal provision that grants limited immunity for online platforms.

“Because Plaintiffs have shown that they are likely to succeed on the merits of their Section 230 claim and that they will be irreparably harmed absent preliminary injunctive relief, the Court necessarily finds that the balance of equities tips in their favor and that such relief serves the public interest,” Du wrote in her order.

The rules, which were set to go into effect Monday, would have required the rental platform to monitor listings, verify whether they adhere to county licensing rules and take down those that don’t.

The provision set fines of $500 for a first offense and $1,000 for subsequent violations.

Airbnb Inc. called the ruling a “win for for everyday Nevadans.”

“Fighting against the entrenched multibillion-dollar resort hotel industry, we stand shoulder-to-shoulder with hosts and secured a victory at a crucial moment for Clark County as it faces an economic and tourism slowdown,” a spokesperson wrote in a statement.

Added Airbnb: “While today’s decision is a win, the fight against Clark County’s short-term rental restriction is far from over.”

The county told the Las Vegas Review-Journal that it was reviewing the court order.

“It would be premature to comment at this time,” a spokesperson wrote in a statement.

Ongoing lawsuit

The ruling stems from a complaint filed in late June by the Greater Las Vegas Short-Term Rental Association and Airbnb.

It alleges that the county’s licensing rules are too restrictive and divert from the intention of a 2021 Nevada law that allowed the business model.

Clark County had barred all short-term rentals before Assembly Bill 363 took effect in 2022.

The association is representing 856 homeowners in the lawsuit.

In the complaint, the plaintiffs argued that the county’s licensing ordinance is too burdensome and that it “arbitrarily bars most property owners from applying for a license,” essentially banning short-term rentals.

Licensing is capped at 1 percent of the unincorporated county’s housing stock. Other rules include minimum separation requirements between other short-term rentals and resorts.

A lottery process was implemented to issue initial licenses two years ago and the process hasn’t reopened, according to the lawsuit.

Clark County has issued 174 licenses, though it governs about 1 million residents and roughly 300,000 homes, the lawsuit argued.

“And, of the few applications the County has accepted, processing has been exceptionally slow, leaving most applicants ‘in limbo,” the suit alleges.

“The Clark County Commissioners appear to profit from targeting vulnerable residents — seniors, people with disabilities, and struggling families — with excessive fines for simply renting their homes,” association co-founder Jacqueline Flores wrote in a statement. “While we don’t expect the County to stop its enforcement practices anytime soon, we are actively exploring other options to protect Las Vegas residents from these harmful actions.”

Contact Ricardo Torres-Cortez at rtorres@reviewjournal.com.