Folly Beach builder files lawsuit over pause on short-term rentals

FOLLY BEACH, S.C. (WCSC) - A builder filing a lawsuit against the city of Folly Beach claims the city’s pause of short-term rentals on Folly Beach is unconstitutional.

Builder Michael Riffert with Folly East Indian Co., LLC says his business has been greatly affected by the pause on development, as well as the potential cap on short-term rentals.

Related: Folly Beach residents discuss pros and cons of short-term rentals

Riffert claims Folly Beach City Council has repeatedly done the right thing by not approving a cap on short-term rentals in three prior votes. However, due to a recent petition forcing a referendum to put a cap on these licenses, Riffert felt he needed to step in.

“It was not to stop a vote,” he said. “It was basically to stop our property rights being stepped on.”

Riffert has short-term rental licenses for numerous properties, including two homes in the commercial district.

“I have them for sale,” Riffert said. “And when the moratorium went on, all of my customers pretty much went away.”

He says people were hesitant to buy because they did not know if renting it out would be an option down the road.

Riffert filed a lawsuit against the city that states the moratorium does not comply with constitutional law. He wants to prevent the city from enforcing the moratorium and does not want them to act on the petition restricting short-term rentals.

“The petition is something that steps on your property rights, your 12th, and 14th Amendment rights, and I just feel like something needed to happen,” Riffert said.

Officials with the city of Folly Beach provided a statement in response to the suit:

The city supports the referendum process and the direct involvement of residents in our democratic process. As such, the city is defending our residents’ right to vote on this important issue. It is our hope that the judge allows this vote to go forward.

“We’re a tourist destination...” Riffert said. “If we lose that, the city’s going to hurt, we’re going to hurt, and we need to vote ‘no’ to have the city’s ruling, the city council’s ruling, to go back to the way it was.”

Riffert and his attorney decided to wait until the short-term rental cap special vote on Feb. 7 is final before they go before a judge.

The lawsuit can be viewed below:

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