The Minnesota Supreme Court agreed to hear objections to a city of Winona law that limits how many homeowners on a given block can rent their properties.
The Minnesota Court of Appeals upheld the law in February. Winona limits the number of homes on a block that can be rented at 30 percent.
A group of Winona homeowners appealed the decision, arguing it’s not the city’s job to limit the number of homeowners who want to rent their properties. The court agreed to hear the challenge Tuesday.
Anthony Sanders, an attorney with the Institute for Justice, who represents the homeowners, said the decision by the state’s highest court to hear the case is significant.
“The fact that they have taken this case means that they are taking our arguments very seriously and that they see that this is a major issue of statewide impact, whether or not you have a right to rent out your own home when you’re not harming anyone else,” Sanders said in a statement.
She said homeowners are subject to the “luck of the draw” when it comes to who can rent and who cannot.
Winona city leaders passed the rule in 2005 to control the number of homes being used as rentals near the Winona State University campus. Other Minnesota cities have passed similar caps on rentals, including Mankato, Northfield and West. St. Paul.
Supporters of the 30-percent rule say it’s helped stabilize the neighborhoods closest to the university, where many homes are used as rental properties.