INDIANAPOLIS | The town of Ogden Dunes cannot stop homeowners who want to rent out their property for periods of less than a month, the Indiana Court of Appeals ruled Tuesday.
In 2007, the Porter County town of 1,300 people decided to stringently enforce its residential zoning code, which the town claimed prohibited short-term home rentals. The goal was to prevent the lakefront community from becoming a resort area.
Later that year, the town accused Steven and Lauren Siwinski of renting out their beachfront home five times that summer, essentially using their residence for a commercial purpose, which is prohibited. The town sought a $2,500 fine for each day the home was rented.
Porter Superior Court Judge Mary Harper ruled in favor of the town in June.
However, the appeals court found that -- because the zoning ordinance does not specifically prohibit short-term rentals and because the rented home is being used in a residential manner -- short-term rentals do not violate the zoning ordinance.
"Nothing in the designated evidence established that any commerce or other activities not associated with a residence were ever conducted on the Siwinskis' property," wrote Judge James S. Kirsch in the court's 3-0 decision.
"We conclude that it was error to find that the Siwinskis' occasional short-term rental of their property was a commercial and not a residential use," the court said.
The Court of Appeals reversed the earlier Porter County court decision in favor of the town and ordered the Porter court to rule in favor of the Siwinskis.
"We're disappointed, but it is not totally a loss," Ogden Dunes town Attorney Chuck Lukmann said.
While the decision was not in the town's favor, Lukmann said, it did state that not more than one family can live in a house at a time.
"This will curtail a lot of activities," said Lukmann, adding that many of the problems come from when homes are leased to college students and used as "party houses" or when multiple families lease a single-family home at the same time.
"It is a setback, but it does assist with some of the town's goals," said Lukmann, adding it is not only an Ogden Dunes issue.
"Let anyone ask themselves if they would want weekend renters versus one family living there (next door) permanently," he said, adding a similar situation in any community would devalue property.
Lukmann said the Town Council will likely call an executive session to discuss their next course of action. They will have 30 days to decide whether or not they want to appeal the most recent decision.
Tuesday's decision could still be appealed to the Indiana Supreme Court.
