The Minnesota Court of Appeals will have 90 days to issue a ruling on an appeal from a group of Winona residents who are challenging the City of Winona's 30-percent housing rule.
The rule, established in 2005, limits the number of rental units on any one block to 30-percent of the block.
The homeowners teamed up with the Institute for Justice to present their case to the three-judge Appeals Court Thursday.
They are appealing a decision by the Winona District Court that the 30-percent rule is constitutional.
Similar laws currently exist in Northfield, Mankato, and West St. Paul.