After Bombshell Court Ruling In Short-Term Rental Lawsuit, Town Says No Enforcement While Appeal Pending

The town of Nantucket issued several statements on Friday responding to Massachusetts Land Court judge Michael Vhay's ruling in the closely-watched lawsuit brought by Silver Street resident Cathy Ward against her neighbors and the Nantucket Zoning Board of Appeals. Vhay ruled against the Town, mostly blocking short-term rentals of dwellings that aren't owner-occupied, prompting a number of questions that the town attempted to answer in the FAQ, which is reprinted below.

Perhaps most notably, the Town clarified that it will not be taking enforcement action against any properties that may be in violation of Vhay’s ruling, other than the property that is the subject of the case, barring further legal action. The Town expects its appeal of Vhay’s decision to act as an automatic hold on the ruling, allowing short-term rentals to continue without incident this summer, while acknowledging that a court may decide a motion to stay the ruling is required, and must be allowed by the judge.

Question: Does the ruling apply to houses outside the Residential Old Historic District (ROH)?

Answer: While the actual judgment applies only to the ROH, arguably, yes, as the rationale stated in support of the decision appears to apply to all residential zoning districts. However, the Town intends to appeal the decision.

Question: Does the Town plan to seek a stay of the ruling pending appeal?

Answer: The Town’s appeal of the ruling should, under applicable procedural rules, act as an automatic stay of the declaratory judgment portions of the ruling, e.g., the declaration that the Zoning Bylaw does not allow vacation rentals of primary dwellings in the ROH for less than 31 days except for “the rental of rooms within an owner-occupied dwelling unit.” However, the order that the ZBA undertake further enforcement proceedings consistent with the decision within 45 days may be governed by different procedural standards requiring a motion to stay to the judge who issued the decision. The Board has authorized both an appeal of the decision, as well as a motion to stay. Should the Court deny the motion to stay, and a single justice of an appellate court does not agree to stay the proceedings, the ZBA may need to proceed with further remand proceedings under numbered paragraph 4 of the Court’s two-page Judgment dated June 6, 2025 (See copy of Judgment here).

Question: How does the Town plan to deal with enforcement of the ruling pending appeal?

Answer: The Court ruling does not require the Town to take zoning enforcement action against any properties other than the property which is the subject of the case. The Building Inspector continues to have discretionary jurisdiction over demands for zoning enforcement, subject to appeal to the ZBA, based on the facts of each case.

Question: We have entered rental agreements already for this Summer or Fall vacation season or are in the process of booking vacation rentals at our property for periods of less than 31 days for this upcoming Summer and/or Fall. Do we need to cancel existing agreements and stop booking further vacation rentals for the remainder of the season?

Answer: The Select Board cannot provide legal advice concerning your private property interests but reiterates that it intends to appeal the decision which should act as an automatic stay of those portions of the ruling described above.

Question: We are hosting a wedding or other event this Summer or Fall and know certain attendees will be renting houses together to attend, although we ourselves are not renting our residence. Do we need to cancel our event or otherwise caution our attendees intending to short-term rent on island?

Answer: Same answer as above. The Town is filing an appeal of the ruling which should act as a stay of the portions of the ruling cited above.

Question: How will the Town Proceed with addressing the Zoning Bylaw and short-term rentals?

Answer: Amendment of the Town’s Zoning Bylaws to provide clarity concerning short-term vacation rentals would eliminate uncertainty regarding Court rulings and appeals, including enforcement requests and lawsuits brought on a case-by-case basis, and would ensure local control over issues of local concern particular to Nantucket. Counsel has recommended formal mediation with a skilled mediator with relevant land use and zoning expertise to work with stakeholders to craft a proposed zoning amendment likely to pass at Town Meeting.