Sterling Heights ― The owner of an Airbnb rental known as “Grandma’s Family Fun House” is suing the city of Sterling Heights after the city tried to shut down the property, alleging their conduct is lawful.
The actual property on Rockdale Court is owned by Wyoming-based 5002 Rockdale LLC. In a lawsuit filed in Macomb Circuit Court on April 22, the company alleges the city deprived it of “constitutionally protected rights” by issuing a ticket and notice for “conduct that is lawful,” which interfered with the company’s use of the property and its business operations.
Sterling Heights spokesperson Melanie Davis said the city cannot comment on this specific case due to pending litigation, but shared that operating a property as a short-term rental is not a permissible commercial use in residentially zoned properties in Sterling Heights.
The lawsuit comes as the city is considering banning short-term rentals or allowing them with regulations. Short-term rentals are homes or rooms rented out for fewer than 30 days on platforms such as Airbnb and Vrbo.
Sterling Heights doesn’t allow short-term residential rental properties, but city officials estimated earlier this year that between 70 and 100 rentals of some kind are being advertised on a daily basis in the city, some of which are generating complaints about noise, parking and other issues.
5002 Rockdale LLC’s attorneys couldn’t be reached by press time.
Sterling Heights voiced concerns previously
At a strategic planning meeting in January, Sterling Heights Assistant City Manager Dale Dwojakowski told the City Council about the “Grandma’s Family Fun House” short-term rental, a colonial home with a pool built into the back of the house.
“The neighbors on this small court in Sterling Heights came forward with complaints about the property being rented and the continuous quality of life problems it caused,” he said.
Dwojakowski said police have responded to the home numerous times for civil matters, parking issues, theft and other problems. The city sent a cease-and-desist letter to the property owner, advising him that “the short-term rental had caused substantial nuisance and was not allowed per Sterling Heights zoning regulations,” he said.
The lawsuit doesn’t mention the cease-and-desist letter.
Rockdale Court is part of a quiet residential neighborhood with mainly ranch homes, but some two-story homes. The songs of an ice cream truck rang out in the neighborhood late Friday afternoon.
Ashley Levell lives on the court, several doors away from the property. She has a daughter and a special needs son. She said her family moved onto a court expecting it to be quiet and have less traffic than other areas.
Levell said the Airbnb property has “consistently” been a worry for about a year. She said there is “constant coming and going” of people. She said that when the Airbnb hosts gatherings, the court fills with cars.
“We’ve seen fights,” she said. “Police have been here all the time.”
What the lawsuit said
5002 Rockdale LLC rents out the property for short periods of time on airbnb.com, the complaint for the lawsuit said. On March 27, the company met with the city to discuss short-term rentals in Sterling Heights, and the company advocated for permitting the rentals “due to its interest in operating a short-term rental” in the city, the complaint said.
At the meeting, the city issued a notice of violation for “unpermitted use 3.01” on the property. The same day, the city affixed a notice to the front door of the property that read, “this building not to be occupied until a certificate of occupancy has been issued” and “violation of ordinance 3.01.”
The lawsuit said the home is within a one-family residential district. Section 3.01 of the city’s Charter and Code of Ordinances lists a variety of uses that are permitted in the one-family residential districts, such as “one-family detached dwellings,” city-owned and/or operated libraries, and parks and recreational facilities.
The company said it believes that the property isn’t in violation of this ordinance as the property is used as a “permissible one-family detached dwelling.”
5002 Rockdale LLC also contends that it has a certificate of occupancy.
5002 Rockdale LLC is requesting that the court enter into a declaratory judgment declaring that the company’s use of the property as a short-term rental is “permissible under the Ordinances along with such further relief as this Court deems just and equitable.”
The property owner alleges it has suffered damages, including the cost of the ticket, potential fines and penalties, interference with its business operations and violation of its constitutional rights.
Davis, the city spokesperson, said in a statement that the city of Sterling Heights Zoning Ordinance permits only land uses specifically permitted within a zoning district. She said that if a use isn’t listed as permitted, it’s not allowed.
“The City is reviewing the lawsuit and will respond accordingly,” she said.
asnabes@detroitnews.com
This article originally appeared on The Detroit News: Airbnb owner sues Sterling Heights in dispute over zoning rules
Reporting by Anne Snabes, The Detroit News / The Detroit News
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