Federal lawsuit pushes ‘dubious legal theory’ that the U.S. Constitution’s Commerce Clause prohibits local jurisdictions from making local land use decisions
SAN FRANCISCO (Nov. 3, 2014) — HomeAway, Inc., an online platform for tourist rentals, filed suit against the City and County of San Francisco in federal court today, alleging that a newly enacted local ordinance that allows San Francisco residents to rent their homes on an occasional basis violates the Commerce Clause of the U.S. Constitution.
In response, City Attorney Dennis Herrera issued the following statement:
“I intend to vigorously defend a law that offers San Francisco residents reasonable flexibility to rent their homes on an occasional basis. HomeAway’s challenge pushes a dubious legal theory that the U.S. Constitution’s Commerce Clause somehow prohibits local jurisdictions from making local land use decisions. San Francisco is well within its authority to ensure that scarce housing resources are used primarily for housing. HomeAway’s lawsuit is without merit, and I’m confident the City will prevail.”
The case is: HomeAway, Inc. v. City and County of San Francisco, U.S. District Court for the Northern District of California, case no. 3:14-cv-04859, filed Nov. 3, 2014.