Airbnb Owner Sues Sterling Heights Over Zoning Conflict

The Legal Battle Over a Popular Airbnb Rental

In the quiet residential neighborhood of Rockdale Court in Sterling Heights, a property known as "Grandma's Family Fun House" has become the center of a legal dispute. The owner of this Airbnb rental, 5002 Rockdale LLC, is suing the city after it attempted to shut down the property, claiming that its operations are lawful.

The property, located in Wyoming, is now at the heart of a lawsuit filed in Macomb Circuit Court on April 22. The company argues that the city violated its "constitutionally protected rights" by issuing a ticket and notice for "conduct that is lawful." This, they claim, has interfered with their use of the property and business operations.

Sterling Heights spokesperson Melanie Davis mentioned that the city cannot comment on this specific case due to ongoing litigation. However, she clarified that operating a short-term rental is not considered a permissible commercial use in residentially zoned properties within the city.

Short-Term Rentals and City Regulations

The lawsuit comes as the city is considering whether to ban short-term rentals or allow them under certain regulations. Short-term rentals involve homes or rooms rented out for less than 30 days through platforms like Airbnb and Vrbo.

Although Sterling Heights does not permit short-term residential rental properties, city officials have estimated that between 70 and 100 such rentals are advertised daily in the city. Some of these have led to complaints about noise, parking, and other issues.

5002 Rockdale LLC's attorneys were unavailable for comment at the time of press.

Previous Concerns from the City

Earlier, Sterling Heights voiced concerns about the "Grandma's Family Fun House" short-term rental during a strategic planning meeting in January. Assistant City Manager Dale Dwojakowski highlighted the issues caused by the property, which is a colonial home with a pool built into the back.

"The neighbors on this small court in Sterling Heights came forward with complaints about the property being rented and the continuous quality of life problems it caused," he said. Dwojakowski noted that police have responded to the home multiple times for civil matters, parking issues, theft, and other problems. The city sent a cease-and-desist letter to the property owner, stating that the short-term rental had caused a substantial nuisance and was not allowed per zoning regulations.

The lawsuit does not reference the cease-and-desist letter.

Impact on the Neighborhood

Rockdale Court is part of a quiet residential neighborhood with mainly ranch homes, but some two-story homes. The area is known for its peaceful environment. However, the presence of the Airbnb property has disrupted this tranquility.

Ashley Levell, a resident several doors away from the property, shared her concerns. She moved to the court expecting a quiet neighborhood with less traffic. However, she has been worried about the property for about a year. Levell described the constant activity around the property, including gatherings that fill the court with cars. She has witnessed fights and noted that police are frequently called to the location.

Details of the Lawsuit

According to the lawsuit, 5002 Rockdale LLC rents out the property for short periods on Airbnb.com. On March 27, the company met with the city to discuss short-term rentals in Sterling Heights and advocated for allowing them due to its interest in operating a short-term rental in the city.

During the meeting, the city issued a notice of violation for "unpermitted use 3.01" on the property. The same day, the city affixed a notice to the front door of the property stating, "this building not to be occupied until a certificate of occupancy has been issued" and "violation of ordinance 3.01."

The lawsuit claims that the home is within a one-family residential district. Section 3.01 of the city's Charter and Code of Ordinances lists various permitted uses, such as "one-family detached dwellings," city-owned libraries, and parks. The company argues that the property is used as a "permissible one-family detached dwelling."

Additionally, 5002 Rockdale LLC states that it has a certificate of occupancy. The company is seeking a declaratory judgment to confirm that its use of the property as a short-term rental is permissible under the ordinances, along with further relief deemed just and equitable by the court.

The property owner also alleges damages, including the cost of the ticket, potential fines and penalties, interference with business operations, and violations of constitutional rights.

Davis, the city spokesperson, stated that the city's Zoning Ordinance permits only land uses specifically listed within a zoning district. If a use is not listed as permitted, it is not allowed.

"The City is reviewing the lawsuit and will respond accordingly," she said.