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Castle Hills council imposes up-to-120-day moratorium on new short-term rental permits
Summary
After weeks of neighborhood complaints about noise, trash and property damage, the Castle Hills City Council voted to pause new short-term rental permit approvals for up to 120 days and asked the zoning commission to rewrite the STR ordinance to address occupancy, enforcement and new rental models.
The Castle Hills City Council on April 8 approved a moratorium of no more than 120 days on issuing new short-term rental (STR) permits and directed the zoning commission to recommend ordinance amendments addressing occupancy limits, penalties and newer rental models such as pool or garage rentals.
The move followed extensive resident testimony about disruptive activity at privately operated rentals. Katherine Joyce, who lives at 108 Sir Arthur Court, recounted more than a month of problems at a nearby listing: "Construction crews broke one brick column...five times trash has been a problem...Two late night parties, one at 3:00 a.m." She asked the council to “tighten up the restrictions on these properties that are disruptive to Castle Hills neighbors.”
Councilmember Gilbert Joyce (identified in the meeting as Mr. Joyce) proposed the motion to task planning and zoning with drafting ordinance changes and to establish a moratorium “no longer than 120 days” while staff and the commission complete studies and public hearings. The motion was seconded, discussed at length, and approved with one recorded abstention: Mr. May.
Council members and residents weighed specific options for the ordinance. Suggestions included stricter occupancy and bedroom-capacity rules, clearer limits on converting garages or accessory structures to sleeping areas, banning hard-surface parking or sport courts tied to rental activity, requiring a local contact who can respond to complaints within one hour, and stiffer fines or temporary permit suspension after repeated violations. Several speakers and council members also urged the city to locate and bring unpermitted listings into compliance and to ensure operators remit hotel-motel tax.
City staff and the council clarified that the moratorium would not interrupt processing of permit applications filed before the council action; pending applications must continue under state law. The council also emphasized that properties operating without permits remain subject to immediate code enforcement and can be shut down independently of the moratorium.
The zoning commission will hold public hearings and return recommendations to council for any ordinance amendments; staff was directed to report back on legal precedents, enforcement approaches and options for outreach to hosts and neighbors.
What happens next: zoning will begin its review and schedule hearings; the moratorium will remain in place for up to 120 days while proposed amendments are developed and considered.
