Highlands Amortization Letter

The town of Highlands, a small mountain town in North Carolina, is once again looking to eliminate short-term rental properties using a legally dubious tool. This comes two years after IJ warned Highlands officials over a nearly identical proposal.

Highlands town leaders are considering new legislation targeting legally operating short-term rentals in residentially zoned districts. If the ordinance passes, all of the town’s existing short-term rentals will be forced to shut down by September 15, 2027. Currently, the town considers short-term rental units in R-1 and R-2 zoned districts to be nonconforming uses of land but allows them to operate. 

This is the second time town officials have considered using a likely unconstitutional land-use tool called “amortization” to eliminate short-term rentals. Two years ago, IJ sent a separate letter to town officials urging them to abandon a proposal that would’ve empowered the town to use amortization to require short-term rentals to go through a registration and permitting process. It would’ve forced all short-term rentals to cease operation within three years.

Now, the Institute for Justice sent another letter to town officials in Highlands, calling on them to cease efforts to eradicate short-term rental properties in town. Abusive zoning practices, such as the one Highlands is considering, unfairly stop property owners from using their land as they see fit, and more importantly, violate their constitutional rights.