Santa Barbara County Motel Sues City Over New Avenue of Flags Housing Ordinance

A motel owner in Buellton has filed a lawsuit against the city over a recently adopted housing ordinance that mandates some properties on the Avenue of Flags to stop offering long-term housing and return to operating as traditional motels.

Farmhouse Motel owner Kerry Moriarty filed a lawsuit against the City of Buellton in late May, challenging Ordinance No. 26-03.

The new ordinance restricts long-term housing at motels along the Avenue of Flags to maximize efforts to revitalize the corridor and requires properties to phase out long-term renters, according to a Santa Maria Sun report.

Under the new ordinance, stays will be limited to 30 days or less.

Farmhouse, a 60-year-old motel that has offered long-term affordable housing for almost three decades, will have to revert its 22 residential units to traditional motel rooms as part of the new regulation.

In the lawsuit, Moriarty and co-owners Glenn and Peggy Wilson argued that complying with the ordinance will require them to remove all existing residents and convert the motel into a full-service motel, something that has not existed at the site for decades.

According to the complaint, the city was aware of the motel being used for residential purposes for years, but authorities never pursued enforcement action before adopting the ordinance.

The complaint alleged that the city specifically targeted Farmhouse “based on redevelopment and aesthetic preferences, which do not constitute a legitimate zoning rationale,” according to the Santa Maria Sun.

Filed in Santa Barbara County Superior Court, the petitioners have demanded a trial by jury, according to the report.

In addition to seeking damages and attorney fees, the Farmhouse owners have asked the court to invalidate the ordinance.

The city has not yet responded to the lawsuit, the Santa Maria Times reported.

The housing ordinance was approved in a 4-0 vote in March 2026, following months of public hearings and revisions, according to a previous Santa Maria Sun report.

In November 2025, city staff held several meetings with the California Department of Housing and Community Development for input on the motel conversion regulation, the report added.

In addition to the Farmhouse Motel, the new ordinance affects San Marcos Motel and Red Rose Court on Avenue of Flags, according to the Santa Maria Times.

The San Marcos Motel has operated as a traditional transient lodging property without long-term residents, according to the report.

Consisting of 20 units, Red Rose Court is a former motel that currently functions as an apartment-style complex and is exempt from the ordinance.

Citing city records, the Santa Maria Times said that Red Rose Court’s exemption is based on its historic designation and long-term single-room occupancy use.