A Michigan short-term rental operator has filed a federal lawsuit against the city, alleging that it violated constitutional protections by issuing a ticket for operating a lawful business.
The property, marketed as “Grandma’s Family Fun House,” is suing the city of Sterling Heights, which is located about 15 minutes from Detroit, after the city tried to shut down the property, according to The Detroit News.
“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,” Sterling Heights Assistant City Manager Dale Dwojakowski told the City Council at a strategic planning meeting in January.
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The property reportedly drew repeated police calls for civil matters, theft, and parking disputes
The complaint claims the city deprived the company of constitutionally protected rights by enforcing a prohibition on short-term rentals in residential zones.
Sterling Heights does not allow STRs in residentially zoned properties, though between 70 and 100 such rentals are advertised daily in the city.
The property, which is a colonial-style home with a pool in the backyard, drew repeated police calls for civil matters, parking disputes, theft, and other issues before the city sent a cease-and-desist letter warning that the rental caused substantial nuisance and violated zoning rules.
The lawsuit does not mention that letter.
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Sterling Heights city officials say the zoning ordinance permits only land uses specifically listed within each district, and short-term rentals are not among them.
The company alleges it suffered damages, including the ticket cost, potential fines, interference with business operations, and violation of its constitutional rights.
The case arrives as the city weighs whether to ban short-term rentals outright or allow them with regulations.
Operators banking on a friendlier regulatory climate in Michigan may find themselves in court instead, with municipalities choosing enforcement over accommodation.
