32 Intervale, LLC v. City of Burlington

CourtSupreme Court of Vermont
DecidedApril 10, 2026
Docket25-AP-248
StatusPublished

This text of 32 Intervale, LLC v. City of Burlington (32 Intervale, LLC v. City of Burlington) is published on Counsel Stack Legal Research, covering Supreme Court of Vermont primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
32 Intervale, LLC v. City of Burlington, (Vt. 2026).

Opinion

NOTICE: This opinion is subject to motions for reargument under V.R.A.P. 40 as well as formal revision before publication in the Vermont Reports. Readers are requested to notify the Reporter of Decisions by email at: Reporter@vtcourts.gov or by mail at: Vermont Supreme Court, 109 State Street, Montpelier, Vermont 05609-0801, of any errors in order that corrections may be made before this opinion goes to press.

2026 VT 9

No. 25-AP-248

32 Intervale, LLC et al. Supreme Court

On Appeal from v. Superior Court, Environmental Division

City of Burlington February Term, 2026

Joseph S. McLean, J.

Liam L. Murphy and Samuel Doxzon of MSK Attorneys, Burlington, for Plaintiffs-Appellants.

Kimberlee J. Sturtevant, City Attorney & Corporation Counsel, and Malachi T. Brennan and Rachel L. Seelig of SRH Law PLLC, Burlington, for Defendant-Appellee.

PRESENT: Reiber, C.J., Eaton, Waples and Drescher, JJ., and Zonay, Supr. J., Specially Assigned

¶ 1. EATON, J. Seventeen Burlington property owners sought a declaratory judgment

from the Environmental Division that the City’s recently passed ordinances regulating short-term

rentals do not apply to their twenty-two nonowner occupied short-term rental properties because

the properties are preexisting nonconforming uses and therefore exempt. The Environmental

Division dismissed plaintiffs’ complaint for lack of jurisdiction. Because we agree that declaratory

relief is inappropriate for plaintiffs’ complaint, we affirm. I. Facts and Procedural History

¶ 2. This case involves a complicated factual and procedural history. Summaries of the

relevant City ordinances and the relevant prior appeal to this Court are helpful to understanding

the issues in the instant appeal.

A. Relevant City Ordinances

¶ 3. In 2022, the City of Burlington passed two amendments to its ordinances addressing

“short term rentals” in the City. According to plaintiffs, because these amendments imposed “strict

new limitations” on short-term rentals and “effectively prohibited short-term rentals in a non-

owner occupied property,” they thereby “jeopardized plaintiffs’ ability to continue lawfully

operating their properties due to the threat of fines or closure.” We summarize each amendment

in detail below.

¶ 4. The “Comprehensive Development Ordinance Short Term Rental ZA #22-08”

(CDO Amendment) went into effect in October 2022, and made the following changes to the City’s

Comprehensive Development Ordinance. See Burlington Comprehensive Development

Ordinance, https://www.burlingtonvt.gov/553/Zoning-Ordinance (incorporating CDO

Amendment). The amendment removed the definitions of “Bed and Breakfast,” “Hostel,” and

“Hotel, Inn or Motel.” See CDO Amendment, § 13.1.2 [https://perma.cc/YXS2-RC38] (omitting

“Bed and Breakfast,” “Hostel,” and “Hotel, Inn or Motel” definitions). In lieu of these definitions,

the CDO Amendment added definitions of “Lodging” and “Short term rental[s].” Id. The CDO

Amendment described “Lodging” as “[a]n establishment providing for a fee three or more

temporary guest rooms and customary lodging services (such as onsite staffing at all hours, lobby

space, and room service), and subject to the Vermont rooms and meals tax.” Id. The CDO

Amendment further explained that “Lodging may, or may not, be owner occupied” but that

“Lodging does not include historic inns or short-term rentals (except when per-building short term

2 rental limits noted in Chapter 18: Minimum Housing Standards of the Burlington Code of

Ordinances are exceeded).” Id. The CDO Amendment defined “Short term rental[s]” as

A dwelling unit that is rented in whole or in part (i.e. renting bedrooms within a unit) to guests for less than thirty (30) consecutive days and for more than 14 days per calendar year” and is subject to the Vermont rooms and meals tax, pursuant to Chapter 18: Minimum Housing Standards of the Burlington Code of Ordinances.

Id. Finally, the CDO Amendment exempted short-term rentals from the requirements of the

ordinance, stating that they “shall not be required to obtain a zoning permit” under the ordinance.

Id. § 3.1.2(c)(19) [https://perma.cc/EG3D-B7DL].

¶ 5. The “Short Term Minimum Housing Ordinance Amendment 8.24” (STR

Amendment) went into effect in August 2022. See also Burlington Code of Ordinances,

https://www.codepublishing.com/VT/Burlington/ (incorporating STR Amendment). The STR

Amendment made adjustments to Chapter 18, Housing, and Chapter 21, Offenses and

Miscellaneous Provisions, of the City’s Code of Ordinances. Relevant to the issues in this appeal,

this amendment included a near-identical definition of short-term rentals as in the CDO

Amendment, but specified that short-term rentals could be either a “Partial Unit,” “meaning a room

located within a host’s primary residence that is used primarily for sleeping purposes by human

occupants that contains at least seventy (70) square feet of floor area” or a “Whole Unit, meaning

an entire dwelling unit.” Burlington Code of Ordinances, Chapter 18, Article I, 18-2

[https://perma.cc/M4PF-YD88]. The STR Amendment also included new requirements for short-

term rentals in addition to the preexisting registration requirements for all rental units. Namely,

the STR Amendment restricted short-term rental use to four separate situations. Burlington Code

of Ordinances, Chapter 18, Article II, 18-15(f) [https://perma.cc/F3CH-YL4D]. Together, these

3 restrictions prohibited nonhost-occupied short-term rentals in Burlington with few exceptions.1 Id.

The Burlington Code of Ordinances also warned that “[i]t shall be a violation of the city minimum

housing ordinance for an owner or host of any rental unit within the city to fail to register a rental

unit as required.” Burlington Code of Ordinances, Chapter 18, Article II, 18-15(d)

[https://perma.cc/F3CH-YL4D]. The STR Amendment explained that “if a dwelling unit operated

1 Specifically, those situations are that:

In addition to registration requirements for all rental units . . . all short term rentals shall be subject to the following standards:

(1) A host may register their primary residence as one (1) whole unit short term rental or the host may register up to three (3) rooms within their primary residence as a partial unit short term rental.

(2) In buildings or lots with less than five (5) dwelling units, a host may register a dwelling unit within the same building or lot as their primary residence as one (1) whole unit short term rental.

(3) A host may register a dwelling unit that is not within the same building or lot as their primary residence as one (1) whole unit short term rental only if either:

i. the dwelling unit is indicated as a seasonal home by the Burlington Assessor; or

ii. the dwelling unit is within a building with two (2) or more dwelling units and the host rents another dwelling unit within the same building or lot, in excess of any applicable required Inclusionary Units, that meets the affordability criteria of Article 9, Inclusionary Zoning, of the Comprehensive Development Ordinance or is rented to a tenant receiving Federal or State rental assistance.

(4) A host may not register more than one (l) whole unit short term rental. If a host registers one (1) whole unit short term rental that is not their primary residence, they may still rent a partial short term rental in their primary residence. A host who is a tenant may only register a short term rental in their primary residence.

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32 Intervale, LLC v. City of Burlington, Counsel Stack Legal Research, https://law.counselstack.com/opinion/32-intervale-llc-v-city-of-burlington-vt-2026.