CORPUS CHRISTI, Texas — The City of Corpus Christi has paused its review of proposed changes to its short-term rental rules after receiving a claim filed under a state law that lets people challenge local ordinances they believe conflict with state law.
The City Secretary's Office received the notice of claim Sept. 29 on behalf of Coastal Family Homes, the city said in a statement to KRIS 6 News. The claim challenges portions of the city's short-term rental ordinance, along with related permitting and enforcement actions, according to the city.
House Bill 2127, passed by the Texas Legislature in 2023, allows a person to file a notice of claim against a local ordinance they believe is preempted by state law. The city's statement said the law is often called the “Death Star Bill.”
The city's Legal Department is reviewing the claim. Because of that review, and pending further direction from City Council, the Short-Term Rental Committee will temporarily pause its work on proposed ordinance revisions, the city wrote.
An earlier city email to committee members, obtained by KRIS 6 News, said all committee meetings would be canceled until the legal review is complete. The email encouraged members to keep reviewing materials and send suggestions to city staff. The city expects to reconvene the committee “as soon as possible once legal guidance has been issued,” according to the email.
The pause follows an Aug. 25 City Council meeting where residents near Ocean Drive described large groups, noise, and trespassing at nearby short-term rentals. Resident Missy Medary told council neighbors "routinely see 40 or more people" at the homes.
Police Chief Mike Markle said officers had responded to 39 calls in recent months and usually break up gatherings, which often do not rise to a noise violation.
Christopher Munro, the founder and managing partner of Coastal Family Homes, told council he worked with the city to follow its rules, and that the city issued and renewed his permits.
Attorney Michael Shaffer, who told council about a third of his practice involves real estate, warned that changing the rules, or how the city enforces them, would drag the city into "a lawsuit that it will lose very expensively."
Council did not adopt a proposed ordinance change that would have required a homestead exemption for owner-occupied, or Type 1, rental permits. Instead, council passed two motions.
The first stops the city from issuing new Type 1 permits until Nov. 17, 2026. The second reaffirms that short-term rentals may not exceed 15 percent of a block face, with a minimum of one, for any new permit or renewal.
City staff told council they would work with stakeholders, including residents, realtors and rental operators, and aimed to bring proposed revisions back to council by mid-November. The city has 1,547 short-term rentals, staff said at the meeting.
KRIS 6 News asked the city whether the pause on new Type 1 permits remains in effect through Nov. 17, and how the committee's pause affects plans to bring revisions to council in November. The city did not answer those questions.
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