Islamorada, Florida Ordinance Held Up in Court

Judge finds no problems with the law that would cap the number of vacation rentals, and exclude new rentals from happening in single-family neighborhoods.

Islamorada’s vacation rental ordinance passed its first test since becoming law earlier this year, after Circuit Court Judge Luis Garcia upheld the ordinance in a lawsuit filed by several Lower Matecumbe Key property owners.

The suit claims village staff incorrectly interpreted the ordinance by rejecting the plaintiffs’ application for a new rental license during the application period this summer.

The ordinance limits to 331 the number of vacation rentals, which are residences rented for fewer than 28 days.

The ordinance also bans new vacation rentals in residential medium zones, which is typical of single-family home neighborhoods. However, vacation rentals in existence since Dec. 2001 are allowed to continue in those areas.

In the lawsuit, Bennett claimed that although his clients’ homes were located in residential medium zones, they shouldn’t have to apply for “new” licenses since they were continuously operated as vacation rentals since 2003, 2004 and 2005.

However, Planning Director Ed Koconis claimed any applicant who didn’t continuously operate a vacation rental since Dec. 2001 would have to apply for a “new” license, and only those outside of residential medium zones would be accepted.

Garcia agreed with Koconis’ interpretation.

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