Sedona’s Trailer Park Short-Term Rentals Could Face Ban, Judge Decides

A lawsuit brought by the Goldwater Institute against the City of Sedona, its mayor, and city manager has been dismissed. The dispute emerged over the city’s refusal to issue a short-term rental permit for a mobile home park owner.

At the core of the conflict is a 2016 law that prohibits cities from banning short-term rentals. Since its enactment, companies like Airbnb and Vrbo have faced criticism from residents and lawmakers alike. This backlash comes in the context of a declining affordable housing supply within the state.

Sedona has experienced considerable fallout from the expansion of the short-term rental market. Local service industry workers, vital to the area’s hospitality-driven economy, struggle to find housing. This shortage has prompted city leaders to propose controversial measures, including the legal option for individuals to sleep in their cars within the city limits.

The city maintained that the mobile home park was ineligible for a short-term rental permit. According to the 2016 law, the city can only regulate short-term rentals in single-family homes. Mobile home parks have not been explicitly addressed in the legislation.

Initially praised by Governor Doug Ducey and other lawmakers for promoting the short-term rental market, the law has since come under scrutiny. Ducey has suggested lawmakers revisit these regulations, reflecting growing concerns from various municipalities about how to deal with problematic rentals.

This legislation is part of a broader agenda driven by the American Legislative Exchange Council (ALEC), an organization that links corporate interests with state legislators, particularly Republicans. Often, this results in legislation being introduced in multiple states with similar wording.

ALEC’s influence is notable in Arizona, where many GOP members of the House and Senate have connections to the organization. This session, several short-term rental-related bills have emerged in the legislature, but their prospects for becoming law remain uncertain amidst firm opposition from Republican leadership, some of whom are short-term rental owners.

The Goldwater Institute plans to appeal the ruling made by Yavapai County Superior Judge Linda Wallace. Meanwhile, the city of Sedona has not provided a comment regarding this development.