Property owners sue Dearborn over B&B ban

Dearborn property owners are suing the city government in federal court after officials banned short-term rentals in much of the city.

Sultan Bzeih, Bruno and Antonia Morabito, Samir Alley, and Ali Srour sued the city Jan. 8 in the United States District Court for the Eastern District of Michigan, challenging a city ordinance that targets rentals of less than 30 days.

“That ordinance arbitrarily and capriciously bans the use of the subject properties (and all other properties in residential zoning districts) as short-term rentals despite the historical approval of such use of the properties by the city and deprives property owners in the city of their fundamental rights to lease the property and their right to include others on the property, in direct conflict of the Takings Clause of the U.S. Constitution,” the lawsuit reads.

If the city enforces the ban, enacted in July 2025, property owners will be forced to cancel bookings, decline new bookings, and remove their homes from short-term rental listings, the lawsuit said.

The 25-page court filing says the city of Dearborn chose to ban most short-term rentals rather than enforce existing nuisance rules.

“For homeowners who have previously used their homes as short-term rentals, the loss is particularly stark, as they are losing not only a right inherent in homeownership, but also one that they have actively exercised and that has undeniably vested,” the property owners said.

Dearborn violated due process and the takings clause of the U.S. Constitution, the lawsuit says, and the city must provide just compensation if it interferes with homeowners’ rights.

“[T]he city cannot simply ban a legitimate land use by merely asserting that it is a public nuisance without any proof,” the lawsuit said. “A bare assertion, unsupported by factual findings or proof, does not satisfy basic Constitutional Due Process requirements.”

Dearborn by mcclallen

Other local governments, including Park Township and New Buffalo, have attempted to regulate or ban short-term rentals.

Short-term rentals drive up housing prices and attract disruptive parties, many governments claim, though those rentals are subject to the same nuisance laws as other properties.

The city of Dearborn did not respond to a request for comment.