A Summit County judge has recused himself from a lawsuit that claims the county government’s short-term rental regulations violate the state constitution and state law.

Judge Reed Owens earlier this month granted a motion filed by the plaintiffs in the lawsuit, Summit Resort Homeowners Inc., to disqualify himself from overseeing the case due to his marriage to Breckenridge Mayor Kelly Owens.

“The past involvement of Mayor Owens in short-term rental regulations in the area appears extensive and is not just limited to Breckenridge,” Reed Owens wrote in an order disqualifying himself. “Thus, a reasonable and objective observer may feel that Mayor Owens’ involvement is too high for Judge Owens to escape the appearance of impropriety.”

Summit Resort Homeowners Inc., a group that says it represents 100 homeowners in Summit County, filed the lawsuit against the Summit Board of County Commissioners in Summit County court on Sept. 20.

The lawsuit questions county regulations that limit the number of properties that can hold short-term rental licenses in the unincorporated county’s various basins, ranging from 5% to 18%. There is no limit in areas defined as “resort overlay zones,” such as Copper Mountain. The rules also limit the number of annual bookings for short-term rentals to 35 and create a per-bedroom occupancy limit for short-term rentals.

Reed Owens notified the parties in the case in November that his marriage to Kelly Owens could present a potential conflict of interest because as mayor, Kelly Owens “is involved in the major decisions and issues concerning the Town of Breckenridge,” including short-term rental regulations. He noted that Kelly Owens, as mayor, was involved in a 2023 lawsuit about short-term rental regulations when property owners sued the town.

In a motion, an attorney for Summit Resort Homeowners wrote that, as mayor, Kelly Owens has a “substantial interest in enforcing” short-term rental regulations which could be impacted by the outcome of the lawsuit. Neither Breckenridge or Kelly Owens are parties to the ongoing lawsuit.

The lawsuit claims that the short-term rental regulations violate the Colorado Constitution, which states “all persons have certain natural, essential and inalienable rights, among which may be reckoned the right of enjoying and defending their lives and liberties; of acquiring, possessing and protecting property; and of seeking and obtaining their safety and happiness.” It claims that Colorado law recognizes a right to unrestricted use of property.

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The complaint further alleges that the short-term regulations violate Colorado laws related to “nonconforming uses,” or uses that were once allowed in a particular zoning area but are no longer allowed. It claims that short-term rentals are a legal nonconforming use and therefore under state law local governments cannot enforce regulations “that requires a nonconforming use that was lawful at the time of its inception to be terminated.”

The state lawsuit alleges harm to property owners’ livelihoods and states that short-term rentals are “a supplemental source of income for homeowners, many of whom rely on that income to pay their mortgages or for other basic needs.”

The complaint lists multiple plaintiffs who it claims will lose tens of thousands of dollars and may not be able to pay their mortgages because of the regulations. It states that the homeowners’ voices “were ignored by the county.”

Commissioners have said the regulations were designed to mitigate the impact of short-term rentals on housing supply and neighborhoods.

Summit Resort Homeowners filed the lawsuit in state court after a judge dismissed a similar case brought by the group in federal court. The federal judge wrote that the homeowners “have not established that the right to rent one’s property is a fundamental right” under the U.S. Constitution.

A judge has not yet been selected to replace Reed Owens in the Summit County court case, according to court filings.

“We believe the decision was commendable and appreciate the Judge’s thoughtful approach,” Summit Resort Homeowners director Todd Ruelle said in a statement on Reed Owens’ decision to recuse himself.