INDIAN ROCKS BEACH, Fla. (WFLA) — The Indian Rocks Beach City Commission moved forward on loosening restrictions on short-term rentals Tuesday as the threat of a multi-million-dollar claim loomed.

Short-term rentals have been a source of controversy for more than a decade.

It’s a fight people here in Indian Rocks Beach know all too well.

Some lawmakers have been trying to give the state more control over the rentals since 2011, but they’ve received push back from local governments.

Last year, it took center stage in Tallahassee as Gov. Ron DeSantis vetoed a bill that would have erased local regulation of vacation rental properties and turned power over to the state.

Diane Daniel lives in Indian Rocks Beach part time and rents out her home for the remainder of the year.

She said the regulations did make managing her rental a little harder, but she didn’t mind.

“I did have to do some things,” she said. “I had to hardwire some things, some lighting, and I have a very small house. And I had to put an exit sign in my living room which I found to be a bit overkill, but on the other hand it’s like OK, whatever.”

The city attorney said this is only a conversation because of a $2.65 million Harris Act claim.

Rhett Parker, the attorney on the other side of that claim, said the problem is the property in question was bought in 2021 with an expectation.

“At that time, with what you would call under the law, the investment backed expectations of the purchaser were that we could rent the property as we had been,” he explained. “Fast forward to 2023 when this ordinance that we’ve challenge was enacted, it eviscerated that right, right?”

“That property right that existed,” he clarified. “And that’s the basis of it.”

City commissioners passed the first reading of an ordinance that would roll back restrictions on short-term rentals.

Some of the changes are allowing an occupancy of 12 instead of 10, provided a property has enough habitable living space for 12 people, according to the new calculations.

It also would remove language about suspension and revocation of the short-term rental license.

The city attorney clarified that short-term rental owners would still need to be compliant with code and would still be subject to code enforcement.

The new ordinance still needs to pass a second reading to go into effect.