Wilmington, North Carolina's litigation with David and Peggy Schroeder about its short-term rental ordinance has reached a settlement, resulting in nearly $800,000 in payouts. The New Hanover County Superior Court ordered the city to cover $306,619 in charges and attorney fees, and Wilmington has also reimbursed more than $500,000 to residents who had previously registered accommodations as short-term rentals. The Schroeders applied for a rental permit after renovating a house for $75,000 for use as a rental, only to have it be awarded to a neighbor in the lottery. After losing an appeal with Wilmington's board of adjustment, the Institute for Justice backed the couple's case. In 2020, a Superior Court ruled certain provisions within Wilmington's short-term rental ordinance were unconstitutional, revoking its ability to mandate registrations. In April, the city said it would no longer be requiring property owners to register their homes as rentals, and agreed to remunerate anyone who had already paid in. On Aug. 2, the City Council unanimously voted to revise the short-term rental ordinance and will no longer enforce the separation or cap requirements. All other provisions of the ordinance remain in force.
Port City Daily (09/16/22)