B.C. Court of Appeals Rejects Legal Challenge
A legal bid to overturn British Columbia’s short-term rental restrictions has been dismissed by the B.C. Court of Appeals. The decision, handed down on December 30, upheld a lower court ruling that found the case was brought too early and did not qualify for judicial review.
Why the Case Was Dismissed
The group that launched the challenge included property owners represented by the West Coast Association for Property Rights and a Victoria business owner. They argued that the province’s short-term rental rules hurt their ability to earn income or operate rental businesses. However, the court agreed with the earlier ruling that the lawsuit was premature because the law had not yet taken effect when the case was filed.
Since none of the plaintiffs had been fined, had a rental order issued against them, or faced other government actions under the legislation at the time, judges said there was no specific decision by a public official to challenge. In legal terms, that meant the matter was hypothetical or speculative rather than a concrete dispute suitable for judicial review.
What the Law Does
British Columbia’s Short-Term Rental Accommodation Act, which came into force on May 1, 2024, aims to bring more housing back into the long-term rental market. The rules generally prohibit short-term rentals of properties that are not the host’s primary residence, with some exceptions for secondary suites or accessory dwellings. Municipal powers to grant exemptions are also limited, though some areas that maintain high vacancy rates may qualify for rule changes.
Court Notes on Appeal Options
The appeals judges agreed with the lower court’s reasoning and declined to grant a judicial review or advisory opinion. However, they did note that the legal challenge could potentially be amended and refiled if circumstances change or if the plaintiffs can show they have been directly affected by enforcement actions.
At this point, the provincial rules remain in place and the latest court ruling reinforces that those regulations are not open to challenge unless and until a specific legal issue arises from enforcement.
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