A federal judge has dismissed a lawsuit challenging Lawrence rental housing laws but gave the plaintiffs two weeks to make fresh arguments in the case.

U.S. District Judge Kathryn Vratil said City Hall was within its rights in 2001 when it passed an ordinance prohibiting more than three unrelated roommates to occupy such housing and started a rental licensing and inspection program to enforce the new law.

“Here, the ordinance advances a policy of ensuring safe housing — a policy which directly serves the government interest in health and welfare,” Vratil wrote in her 30-page order dismissing the case.

The ruling was issued Wednesday but not made public until Thursday.

“I’m disappointed, of course,” said Lawrence landlord Bob Ebey, who organized the coalition of 11 landlords and tenants who filed the suit in July 2003. “I’ll have to talk to Chris (Miller, the landlords’ attorney), but I’m sure we’ll resubmit it.”

Miller declined comment, saying he hadn’t seen the ruling.

City officials were cautiously optimistic, noting plaintiffs could resubmit fresh arguments.

“We’ll see what happens on that,” said Assistant City Manager Dave Corliss, the city’s director of legal services. “The city is pleased with the result of this litigation so far.”

Members of the Lawrence City Commission were unavailable for comment.

Two tenants and nine landlords — including Mark Lehmann, who ran a failed 2001 Lawrence City Commission campaign based on the issue — were plaintiffs in the case.

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The lawsuit challenges the two ordinances passed by the Lawrence City Commission in 2001:

l The first capped at three the number of unrelated roommates allowed in a rental house in an area zoned for single-family dwellings. The limit had been four people.

Landlords said the cap denied them the full value of their property; tenants said it denied them the right “to freely associate with whom they choose.”

l The second ordinance created a registration and inspections requirement for landlords of rental properties in areas zoned for single-family housing.

More than 2,300 properties have been registered under the program, city officials said Thursday. More than 2,700 inspections have been conducted.

Landlords said the registration was costly and inspections were violations of their rights to be free from unreasonable searches and seizures. Tenants said their rights were being violated.

“It’s devalued our property and cost us money,” Lehmann said Thursday. “And that’s hurt our maintenance budgets.”

Arly Allen, a Centennial neighborhood resident who fought for the roommate limits as a method of preserving single-family neighborhoods, was unavailable for comment.

“Maintaining the single-family character of neighborhoods is a legitimate public interest,” Vratil said in the ruling, and added: “The city has articulated a rational basis for the occupancy limit and permit system.”

Plaintiffs have until June 18 to resubmit arguments.