Joanne Moskovic v. City of New Buffalo, Michigan

Petitioner, and many other homeowners in the City of New Buffalo, Michigan, a beach community on the eastern shore of Lake Michigan less than one hour from Chicago, rented out her home to individuals and families for durations of less than one month (short term rental) prior to the City’s passage of a new zoning ordinance which prohibited short term rentals in residential districts. Prior to the passage of the new zoning ordinance, the City passed a regulatory ordinance requiring a permit to rent one’s home out for less than one month. After passing the permit regulatory ordinance, the City placed an 18 month moratorium on the issuance of permits and kept that moratorium in place until the time the new zoning ordinance passed, which prohibited Petitioner from obtaining a permit. When the City passed the new zoning ordinance, it included language in the ordinance that unless a homeowner had already been issued a permit at the time the zoning ordinance passed, no prior lawful nonconforming use could be established. These actions by the City prevent Petitioner from obtaining a short term rental permit, prevent Petitioner from qualifying as a “grandfathered” prior lawful nonconforming use under the City’s new zoning ordinance and the Michigan Zoning Enabling Act, and therefore, prevent Petitioner from continuing to rent out her property on a short term basis. 1. Whether the Appellate Court erred in finding that Petitioner’s use of her home, located in a residential zoning district, as a rental for one month