STR Owners win Court Case Against The Hideout HOA

Attorney Eric Smith to discuss the case at Poconos VRO Conference on March 6

For those in the STR industry in the Pocono, a recent court decision shows promise that vacation rentals in certain communities will not vanish. On February 12, 2025, the Pennsylvania Supreme Court denied The Association of Property Owners of The Hideout, Inc.‘s application for appeal, thereby upholding a prior Commonwealth Court decision that invalidated the community’s short-term rental (STR) regulations.

This outcome reinforces the legal principle that homeowners’ associations cannot impose use restrictions, such as those on STRs, unless explicitly stated in the original deed restrictions and covenants. The Commonwealth Court had previously determined that The Hideout’s “single-family dwelling” restriction pertained to building type rather than usage, rendering the STR regulations unenforceable.

The Supreme Court’s refusal to hear the appeal solidifies the distinction between private deed restrictions and zoning laws, emphasizing that zoning principles cannot be applied to private community regulations without clear authorization in the governing documents.

This decision serves as a reminder to property owners and homeowners’ associations to ensure that any desired use restrictions are explicitly included in their community’s declarations and covenants to be enforceable under Pennsylvania law. More details on The Hideout case can be found at Eric Smith Wins Case Against The Hideout

The case for the STR Owners was made by Attorney Eric Smith who has been successful in a number of property rights cases like this. Eric will be attending the upcoming Poconos STR Conference on March 6 at the Kalahari Convention Center. Should you have any questions about The Hideout Appeal or feel that your community association is wrongfully regulating Short Term Rentals, or otherwise violating its declarations or covenants through overreaching bylaws or rules and regulations, we encourage you to attend the conference, visit him in the exhibit hall and attend his session called: Short-Term Rentals and the State of the Law – HOAs, Restrictions, Slice of Life, Municipal Ordinances.

Thursday, March 6, 3 PM in the Orange Room, Attorney Eric Smith will host a discussion covers the up to the minute status of Short-Term Rental law in the Commonwealth. This session will help you understand what HOAs can and cannot do to restrict rental rights and other rights of lot owners and members, and the long-term effect of those restrictions. The case of Slice of Life will be put into perspective and discussed in the context of Short-Term Rentals. Also to be discussed is how municipalities have put in place both zoning and general ordinances concerning Short-Term Rentals. Eric will discuss how those ordinances might apply, and how they might be successfully challenged if they are deemed to be unreasonable.

For ticket to see Eric Smith at the Poconos STR Conference, visit the Poconos STR Conference or come in person on March 6, tickets on sale at the door.

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