By Rick Maranon, FOX23 News
OKLAHOMA CITY, Okla. — The Oklahoma State Supreme Court ruled that a homeowners association can use neighborhood covenants to stop houses from being used as short-term rentals as long as the specific language enforcing such a ban is part of the neighborhood’s governing covenants.
The state’s high court upheld a homeowners association’s effort to stop an Edmond homeowner from renting his house to short-term guests, ruling that the operation violated Silverhawk’s restrictions on business use.
In a 5-4 opinion issued Tuesday, the court affirmed a district court judgment against Adewale Tawose, including an injunction barring him from operating the rental and $8,528 in HOA assessments and penalties. The court also left an attorney fee award undisturbed, finding Tawose had not properly preserved his challenge to it.
The case centered on The Silverhawk neighborhood’s covenants, which say lots may be used “for private residence purposes only” and prohibit a store or business from being maintained there. The Supreme Court concluded that Tawose’s rental operation was a commercial use barred by that language.
Tawose bought the home in 2015 and later began advertising it for short stays. Evidence in the case showed 36 stays and 141 guests between late 2021 and late 2023. The district court also cited the rental’s check-in and check-out times, services and supplies for guests, and the hotel and motel taxes associated with the operation.
The HOA sued in November 2021, seeking to stop the rentals and recover damages, including for alleged nuisance. After a five-day trial, the district court ruled for the HOA. It found the short-term rental violated the covenants and that some guests’ late-night gatherings and disruptive behavior also amounted to a nuisance. Tawose’s breach-of-contract counterclaim against the HOA was rejected.
A Court of Civil Appeals panel later reversed parts of the district court’s decision and sent the case back for further proceedings. The Supreme Court vacated that appellate opinion and reinstated the district court judgment.
Four justices dissented. They argued the covenant’s business ban did not clearly ban short-term rentals and that guests used the home as a residence, regardless of how briefly they stayed. The dissent said communities can prohibit short-term rentals, but must do so with clear language in their covenants.
The ruling concerns the specific wording of Silverhawk’s covenants; it does not mean every HOA in Oklahoma can prohibit short-term rentals. It all depends on the specific language of a neighborhood and its covenants.
