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Clark County goes ahead with lottery for STR licenses
Clark County goes ahead with lottery for STR licenses
Clark County, Nevada, is proceeding with a lottery for short-term rental (STR) licenses despite a recent court ruling that parts of the county’s short-term rental framework are unconstitutional.
The county has been receiving applications for the lottery since September 15 of last year, and the application window closed March 14. The lottery, which will be closed to the public but livestreamed, will take place March 29. The random drawing will be conducted by Smartplay International Inc., the company used by the Nevada Cannabis Compliance Board to issue licenses for operators of marijuana consumption lounges. Consulting firm Baker Tilly U.S. LLP will certify the results.
Lottery winners will be permitted to apply for short-term rental licenses. The number of short-term rental licenses is capped at 1% of total housing stock in unincorporated county areas.
The county’s STR law was passed in June 2022, following the approval of a state law that required Clark County to regulate vacation rentals. Previously, short-term rentals were banned in unincorporated areas of the county. It’s estimated that 10,000 short-term rental properties are operating illegally in the county.
In February, a Clark County District Court judge ruled that some portions of Clark County’s short-term rental ordinance are unconstitutional. Those provisions include:
- ⇾ A requirement for short-term rental applicants to sign a statement that they would abide by all STR rules under penalty of perjury
- ⇾ A provision for inspections without notice or cause
- ⇾ Vague definitions for what are considered events or disturbances
- ⇾ Allowances for “discretionary fines and penalties”
The ruling came in response to a request for a preliminary injunction against the law filed by the Greater Las Vegas Short-Term Rental Association (GLVSTRA). County officials said that the ruling allows them to move forward with other provisions that were not singled out by the judge. Read on to learn more.