Changes to portions of Douglas County VHR ordinance on hold after judge issues order

DOUGLAS COUNTY, Nev. – Douglas County has been issued a temporary restraining order to not implement portions of its new Vacation Home Rental (VHR) ordinance. It temporarily stops the County from limiting VHR occupancy based on parking, prohibiting tandem parking on private property, implementing new fines for violations, requiring a notice be posted for unscheduled VHR property inspections and creating the VHR Advisory Board, as currently constituted, until such time as a final determination can be made regarding the constitutionality of the ordinance.

On the same day the new ordinance was to take affect, July 15, 2021, United States District Court Judge Robert C. Jones issued the order against Douglas County to not enforce the following changes to the ordinance until a hearing on August 26, 2021:

The owner of a home is not required to post a sign that states, “The occupants of a vacation rental home must make the property available for inspection at all times by the Community Development Director or a designee, the Sheriff’s Office or the Code Enforcement Officer on a request made by any of these officials.”

The County can not impose a fine of greater than $5,000 for a single violation (the new ordinance was allowing up to $20,000). Any violation that is currently punishable with a fine greater than $5,000 shall be limited to $5,000 for the duration of this restraining order.

The majority of the advisory board shall be comprised of VHR Tier 1 permit holders and/or non-permit holders. Tier 1 is a home that is owner occupied but rents out rooms/portions of the home.

The occupancy limit of four people per vehicle under shall not be enforced.

Judge Jones ruling says, "These targeted restraints on Defendant’s [Douglas County] regulation of VHRs will protect the constitutional rights of the VHR operators as well as their occupants, while minimally impairing Defendant ability to regulate.

The case was given to Judge Jones on July 8 after the plaintiff, Robert Michael Kalthoff, filed the complaint.

A copy of Judge Jones’ order can be viewed on the County’s VHR webpages at www.douglascountynv.gov/vacationhomerentals.

The next court hearing has been scheduled for Thursday, August 26 at 10:00 a.m. via Zoom. County Staff will continue to provide information as it becomes available.

Staff has answered some questions that may come up due to this court oder:

Does this mean the new ordinance is invalid?

No, the court order does not invalidate Ordinance Number 2021-1582, but it does temporarily suspend the implementation of certain changes to the VHR regulations such as tandem parking and the new fines.

What does this mean for existing permit holder?

Existing permit holders may continue to renew their permits pursuant to Section 20.622.030 of Douglas County Code which has been amended to reflect the changes made effective July 15, 2021. Renewal applications will be subject to the new terms of Ordinance 2021-1582 with the exception of those portions described above that are the subject of the temporary restraining order like limiting occupancy based on parking.

What does this mean for new permits?

The process to obtain a new VHR permit has not changed. On June 3, 2021, Douglas County made significant changes to the Douglas County Vacation Home Rental (VHR) Program including placing a cap on the total amount of VHR permits that may be issued, not to exceed 600. The court rejected the plaintiffs’ attempt to stop the implementation of the VHR caps. Because the demand for permits has exceeded the total number of the permits available, a waitlist application process has been created. Douglas County began accepting waitlist applications on July 1, 2021, and will continue through July 31, 2021. The online application and the PDF application can be found here. Applications for the waitlist will ONLY be accepted during this period. Douglas County created an online registration and application guide to assist applicants with completing the online process. Applicants will need to register first before applying. The public is strongly encouraged to review this guide prior to submitting an online application.