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HomeMy WebLinkAbout06.10.24CITY OF ST. JOSEPH www.cityofstjoseph.com 75 Callaway Street East | Saint Joseph, Minnesota 56374 Email: cityoffices@cityofstjoseph.com | Phone: 320.363.7201 | Fax 320.363-0342 St. Joseph Planning Commission Monday, June 10th, 2024 6:00 PM St. Joseph Council Chambers 75 Callaway St E **The meeting will also be available through Zoom** 1.Call to Order 2.Pledge of Allegiance 3.Public Comment 4.Agenda Review and Adoption 5.Approval of May 13th, 2024 minutes 6.New Business a.PUBLIC HEARING Interim Use Permit 409 College Ave N 7.Old Business a.Short-term rental discussion b. Honeybee discussion c.General updates 8.Other Business a.None 9. Adjourn ZOOM INFORMATION Join Zoom Meeting https://us06web.zoom.us/j/87642407431?pwd=bXlkL3NlM2VKNXVMdmk2MC91blYxUT09 Meeting ID: 876 4240 7431 Passcode: 797162 One tap mobile +19292056099,,87642407431#,,,,*797162# US (New York) Dial by your location Find your local number: https://us06web.zoom.us/u/kblhxKat7W 1 May 13th, 2024 Page 1 of 5 Pursuant to due call and notice thereof, the Planning Commission for the City of St. Joseph met on Monday, May 13th, 2024, at 6:00 PM in the St. Joseph City Hall opening with the Pledge of Allegiance. Planning Commission Members Present: Commissioners Keith Louwagie, Adam Scepaniak, Jon Hazen, Isabella Margl, Mark Thompson Absent: Carmie Mick, Gina Dullinger Staff Present: Nate Keller Public Comments: None. Agenda Review & Adoption: Thompson made a motion to approve the agenda review and adoption. The motion was seconded by Scepaniak and passed unanimously by those present. Approval of March 11th, 2024, minutes: Scepaniak made a motion to approve the March 11th minutes. The motion was seconded by Margl and passed unanimously by those present. New Business: a.Outdoor Patio Permit – The LaPlayette 1.Permit Appeal: Keller provided an overview of an outdoor patio permit received from LaPlayette. Staff directed the applicant to submit the permit and appeal the denial. Staff are requesting direction from the PC and the Council to process the request which may require direction on potential code changes. The applicant intends to block off a portion of the rear of their building. During Covid a patio was installed in that location. The patio remained up for three years due to the covid restrictions. Leniency was given because of covid restrictions and for a while thereafter. The City Code conflicts with the applicant’s proposal with respect to parking spaces. Currently there are 23 spaces on the north and rear of their parking lot. After the patio is installed and after considering the two spaces for their dumpster 16 spaces will remain available. The application cannot be approved administratively due to a city code restriction which states that parking restrictions must be maintained. Keller gave suggestions on potential ordinance revisions, ordinance suspension, and various other recommendations available to the PC. The PC had questions tied to the location of the outdoor patio. Shawn Reisner, Owner of LaPlayette: Reisner explained in the past they had an old truck where acoustic music would be played from in the rear of their building. They will not be bringing the truck back this year, rather they are constructing a fence that is held up with flower boxes. Reisner shared that although they have signage up in their parking lot stating the parking is for LaPlayette only, often there are vehicles parked in those spots that are not patronizing the LaPlayette. The Commission inquired about Tacoholic’s access if this patio structure is approved. Keller shared there is a private easement between LaPlayette and Tacoholic’s, therefore Tacoholic’s has access to their business for deliveries and such. Shawn Reisner, Owner of LaPlayette: Reisner shared there are three parking spaces in the parking lot reserved for Tacoholics; 2 of which are marked with signage. A private 4’ easement exists along the back of the building and along the curb which allows Tacoholic’s access to their building. Staff and PC discussed recommendations to code, current code and future recommendations regarding parking. 2 May 13th, 2024 Page 2 of 5 Scepaniak made a motion to temporarily suspend the ordinance enforcement (allowing applicant to proceed forward with patio). The motion was seconded by Thompson and passed unanimously by those present. 2.Building Materials: Keller explained the applicant is also requesting approval of materials for the potential patio structure. The proposed materials are not specifically approved due to the location of the LaPlayette. City Code allows the City Council to approve alternative durable materials after review and recommendation from the PC. The Commission asked what kind of materials are going to be used for constructing the new patio. Shawn Reisner, Owner of LaPlayette: Reisner shared once they have approval on the structure; they will move forward with the design phase of the project. Keller provided an overview of materials that are currently allowable and asked the PC to offer their thoughts and recommendations so that Reisner has a place to start when beginning the design components. Scepaniak shared because this patio is in an alleyway and not street facing the materials can be negotiable. Consensus from the Planning Commission is for the LaPlayette to return with the proposed materials and a rendering of what the structure will look like once the design phase has been completed. b.Public Hearing – Zoning Text Amendment Application Tyler Braegelmann – City Code 502.12 Subd 6 Section E: Keller gave an overview of a zoning text amendment application received from Tyler Braegelmann. Staff have worked with Braegelmann for the past few months on a proposed development in the Industrial Park. Over time, Braegelmann would like to construct 7 buildings on two lots. These buildings would be leased out to different tenants. The idea is that a small company would lease the space until they grow out of it and need to move into a larger building or build their own facility in the industrial park. Phase 1 of the project includes constructing two buildings on the northern part of the 1st parcel as indicated on the map included in the packet. Currently code does now allow more than 1 principal structure on a lot. Staff worked with Mr. Braegelmann and legal on a few different solutions to the code conflict. After discussion Mr. Braegelmann decided to move forward with the zoning text amendment. Mr. Braegelmann is proposing to change the existing code language to allow more than one principal structure on one lot. Staff supports the change and suggests specifying that single-family districts cannot have more than one building per lot. This will ensure consistency with historic enforcement of the code. A public hearing is required to change the ordinance. Louwagie opened the public hearing at 6:33PM. Adam Hansen, Hansen Companies: Hansen asked if each building would have its own sprinkler system. Keller shared that the sprinkler system comes down to the size of each building. Adam Hansen, Hansen Companies: Hansen shared that with several buildings so close together even if the buildings do not meet code requirements for a sprinkler system, making sprinkler them a requirement may be beneficial. Louwagie closed the public hearing at 6:35PM. Hazen asked Braegelmann to explain future phases of the project. Additionally, Hazen asked if anyone is interested in leasing any of the buildings at this point. 3 May 13th, 2024 Page 3 of 5 Tyler Braegelmann, Applicant: Replied that he does have a tenant interested in one of the buildings but otherwise has not advertised. Phase 1 will be construction of 2 buildings, subsequent phases will depend on how fast the initial buildings are leased as well as interest in the future buildings. The planning commission verified with staff that parking, landscaping, and building distance would all meet the city’s current code. Scepaniak made a motion to approve Ordinance 2024-001, an Ordinance Amending Ordinance 502, section 502.12 subdivision 6, section E. The motion was seconded by Hazen and passed unanimously by those present. c. Public Hearing – Vacation of Interior Easements Hansen Companies Keller explained Adam Hansen, owner of Hansen Companies is proposing to construct a new 82,000 square foot manufacturing facility which includes 6,000 square feet of offices. Hansen and Companies is a cabinet manufacturer that has been based in St. Joseph since 2005. The new location would be off Jasmine Court and 21st Ave NE. The proposal has multiple action items including on-site parking, vacating easements, and building materials. Hansen and Companies are requesting to vacate interior easements between lots 4, 5, 6, and 7 Block 1 of Northland Business Center. The easements are standard utility and drainage easements dedicated during the original plating of Northland Business Center. There are no city utilities running through the parcels. Hansen has letters from local utility providers approving the vacating of the easements. The purpose of the request is for the applicant to combine the lots into one and construct the building over vacated easement lines. This request requires a public hearing. Louwagie opened the public hearing at 6:41 PM. As no one wished to speak, Louwagie closed the public hearing at 6:42 PM. Hazen made a motion to approve Finding of Fact 2024-027 Vacating interior drainage and utility easements for lots 4, 5, 6, and 7, Block 1 of Northland Business Center plat. The motion was seconded by Scepaniak and passed unanimously by those present. d. Public Hearing – Variance to the parking lot materials – Hansen Companies Keller shared Hansen is proposing to pave the entire site minus the loading area in the rear of the building. The rear area would be covered with crushed granite/asphalt as an alternative. Because City Code 502.10 Subd. 3 Section N states “all off-street parking and loading spaces together with driveways, aisles, and other circulations areas, shall be a hard surface constructed of concrete, bituminous, or paver stone” a variance and public hearing are needed to approve Hanen’s request. Louwagie opened the public hearing at 6:43 PM. As no one wished to speak, Louwagie closed the public hearing at 6:43 PM. Hazen asked how many spots are available for truck parking in the rear of the building. Adam Hansen, Hansen Companies: Hansen informed Hazen the rear of the building will be used for loading and unloading rather than parking. Hazen made a motion to approve Finding of Fact 2024-028 approving application for a variance to the minimum parking lot material standards. The motion was seconded by Scepaniak and passed unanimously by those present. e. Proof of Parking Plan - Hansen Companies 4 May 13th, 2024 Page 4 of 5 Keller outlined the parking plan proposed by Hansen Companies. The City Code requires 3 spaces per 1,000 square feet of manufacturing space and 1 space per 300 square feet of office space. According to code with the square footage of the building and office space Hansen would be required to have 266 parking spaces. According to Hansen’s plans it is feasible to have 218 parking spaces; however, Hansen is proposing to construct 72 parking spaces. With the number of employees and daily traffic Hansen feels 72 spaces will be more than adequate. Hazen verified with Hansen that the current day shift has 55 employees and 6-night shift employees. With the addition of 13 employees in the next 6 years Hazen asked for clarification on how many employees would be added to the day and night shift. Adam Hansen, Hansen Companies: Hansen explained there would be 7 or 8 additional day shift employees, the rest would be on night shift, with some employees moving to a 3rd shift. Hazen asked how often parking spaces are utilized by non-employees. Adam Hansen, Hansen Companies: Hansen explained that they do not build residential cabinets; the only traffic other than employees are vendors. Hazen asked if Hansen has considered where he would add additional parking if needed due to future growth beyond current expectations. Adam Hansen, Hansen Companies: Hansen explained additional spots would be added in front of the building. Scepaniak made a motion to approve the parking plan as proposed by the applicant to allow a reduction in the amount of required parking spaces needing to be constructed. The motion was seconded by Margl and passed unanimously by those present. f.Building Materials – Hansen Companies Keller gave an overview of the City’s Code on exterior building materials. Keller explained that properties located in the Industrial Park that face streets must meet the requirement of 25% material breakage on the street facing side. Because Hansens proposed building will be street facing on three sides, he is required by code to meet the standards on all three sides. Hansen is proposing an “exterior built with a precast concrete panel with a finish of a steel form with cast in reveals.” The walls will have a textured architectural look and the reveals will have a color change for a break in the look. Overall, the architectural break of the proposed materials will allow for a 25% break in the exterior of the building. The material Hansen is proposing is not on the list of “allowable” materials; however, are better in quality than the current list of allowable materials. Adam Hansen, Hansen Companies: Hansen explained the color of the building will be black, white, and grey. He also explained that the building will be smooth as the proposed material is metal precast which will have horizontal pieces allowing for a break in pattern. Scepaniak made a motion to approve the interpretation of City Code 502.62 Subd. 10 Section C to allow alternative exterior Building Materials as proposed by applicant. The motion was seconded by Hazen and passed unanimously by those present. Old Business: a.General Updates: •Keller shared all the items from the March 11th Planning Commission meeting were approved by City Council. •House of Hern will break ground on the food hall in July. •Lambert Outdoor Storage received their permit to install plantings along the Wobegon Trail. Those plantings should be in. Keller will confirm. 5 May 13th, 2024 Page 5 of 5 •Construction will begin at Rivers Bend Park toward the end of summer. Other Business: a.General Updates: None. Adjourn: Thompson moved to adjourn the meeting at 7:04PM. The motion was seconded by Scepaniak and the motion carried. Minutes approved by: Nate Keller Community Development Director 6 Planning Commission Agenda Item 6a MEETING DATE: June 10th, 2024 AGENDA ITEM: 6a. Public Hearing - Interim Use Permit- 409 College Ave N ACTION REQUESTED: Approval of Interim Use Permit renewal for residential rental in Commercial district PREVIOUS PLANNING COMMISSION ACTION: Commission approved an IUP in 2017. BACKGROUND INFORMATION: KMKM, LLC owner is requesting approval of a renewal for their Interim Use permit. The IUP allows for the continuation of a residential rental in an existing single-family home at property addressed 409 College Ave N. The property is located in a B-2 Highway Commercial District. The property is an identified commercial redevelopment area. An existing single-family dwelling unit in the B-2 District is allowed as an Interim Use for a maximum term of five years but may be less as approved by the City Council and after a review and recommendation by the Planning Commission. The block where the subject property is located has mostly IUP rentals. There are a couple Commercial uses to the East and South closer to Highway 75 corridor. 7 City ordinance states the following for Interim Use rentals in Commercial: 502 Subd. 6 Section B 1. Single-family residential dwelling units in areas that have been rezoned to commercial from residential shall be allowed an Interim Use Permit as a rental unit for a limited period of time to allow for a transition in use to commercial. When a majority of the block is a commercial use, no additional interim use permits shall be granted or extended and single family rental dwellings shall transition to a permitted use in compliance with this Ordinance. The maximum density for rental units under the Interim Use Permit shall be limited to the density which is allowed in the R-1 Single Family Residential District. 2.The Interim Use as a rental shall be obtained through the interim use procedures set forth in this Ordinance. 3.The maximum term for an interim use permit shall be five years but may be less as approved by the governing body. ATTACHMENTS: IUP application Resolution approving IUP renewal for another five years REQUESTED PLANNING COMMISSION ACTION: 1.Open and close Public Hearing 2.Motion to Approve Resolution Adopting Findings of Fact recommending the City Council issue an Interim Permit renewal for five years Subject property Rental Rental Rental Rental Commercial CommercialCommercial Rental 8 9 RESOLUTION 2024-IUP A RESOLUTION ADOPTING FINDINGS OF FACT AND APPROVING AN INTERIM USE PERMIT RENEWAL FOR THE PURPOSE OF A RESIDENTIAL RENTAL IN A B-2 HIGHWAY COMMERCIAL DISTRICT WHEREAS, KMKM LLC , owner, has properly applied for an Interim Use permit renewal for a residential rental in a B-2 Highway Commercial Business District on the property generally described as 409 College Ave N, St. Joseph, MN; Property ID 84.53638.0000 and legally described as follows: Lot 004 Block 001 of Loso’s Third Addition “Subject Property” WHEREAS, the St. Joseph Planning Commission held a public hearing on the Interim Use permit on June 10th, 2024 at which time all persons wishing to be heard regarding the matter were given an opportunity to be heard; and WHEREAS. The public hearing notice was duly published and notice provided to all property owners within three hundred and fifty (350’) of the subject property; and WHEREAS, on June 10th, 2024, the St. Joseph Planning Commission reviewed the proposed Interim Use permit and adopted Findings of Fact in support of granting an Interim use permit and recommended approval of the request for an Interim use permit to the City Council. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ST. JOSEPH, MINNESOTA, hereby makes the following Findings of Fact: 1.That the Subject Property is zoned B-2 Highway Commercial Business District and a single- family residential rental is a permitted Interim use. 2.That the Interim Use will not be detrimental to or endanger public health, safety, morals, comfort, or general welfare of the neighborhood and will be harmonious to the to the objectives of the Comprehensive Plan of the City. 3.That the residential rental will be located within the existing single family detached dwelling on the Subject Property and is designed and constructed and will be operated and maintained so as to be harmonious and appropriate in appearance with character of the area and will not be hazardous or disturbing to existing or future neighboring uses. 4.That adequate utilities and services, including utilities, streets, drainage and other necessary facilities have been provided and will not create excessive additional costs for services and/or be detrimental to the economic welfare of the community. 5.That the Interim use will not involve activities, processes, materials, equipment and conditions of operation that will be detrimental to any persons, property, or general welfare because of excessive production of traffic, noise, smoke, fumes, glare or odors. 6.That the existing access from the alleyway off College Ave N provides access to the Subject Property and the access will not create traffic congestion or interfere with traffic or surrounding public thoroughfares. 7.That the existing driveway will provide sufficient off-street parking and loading space to serve the proposed use. 10 8.That the Interim use will not result in the loss or damage of natural, scenic or historic feature and the soil conditions are adequate to accommodate the use. BE IT FURTHER RESOLVED BY THE CITY COUNCIL OF THE CITY OF ST. JOSEPH, MINNESOTA, as follows: 1.Based on the aforementioned Findings of Fact, an Interim Use permit (“Permit”) renewal to allow for a residential rental unit on the Subject Property is hereby approved. 2.The property owner shall obtain yearly rental licenses prior to renting and license should be renewed annually. Typical rental permit and inspection fees will apply and be the responsibility of the property owner. 3.The property owner will manage the Subject Property in compliance with the St. Joseph Code of Ordinances. 4.The residential rental on the Subject Property shall be limited to a family as defined within the St. Joseph Code of Ordinances. 5.The dwelling shall be maintained as a single-family dwelling defined as a dwelling occupied by one family and so designed and arranged as to provide cooking and kitchen accommodations and sanitary facilities for one family only. 6.The property owner is responsible for meeting all Federal, State, Local, and City requirements and obtaining any and all permits and licenses. 7.Revocation: The City Council shall revoke the interim use permit when it determines that the terms and conditions of the permit as issued are no longer being complied with. 8.Expiration: The Permit shall expire within five years on June 17th, 2029. If within one (1) year after issuance of granting an Interim Use permit, the use permitted has not started, then the permit is null and void, unless the City Council has approved a petition for an extension. The interim use permit shall expire if the authorized use ceases for any reason for more than one (1) year. 9.The City Administrator and/or his/her designee shall have the right to inspect the premises for compliance and safety purposes annually or at any time upon reasonable request. 10.St. Joseph Code of Ordinances 520.50 Subd. 11 provides property owners in a B2 Highway Commercial Business Zoning district to seek an Interim Use Permit to allow a residential rental unit until the property is ready for transition to the business use. Said provisions allow the Planning Commission and City Council to place a termination date on the Interim Use Permit and require an annual review of the same. Whereupon said resolution was declared duly passed and adopted by the St. Joseph City Council this 17th day of June, 2024. CITY OF ST. JOSEPH By ATTEST Rick Schultz, Mayor By David Murphy, City Administrator 11 Planning Commission Agenda Item 7a MEETING DATE: June 10th, 2024 AGENDA ITEM: 7a Short-term rental discussion SUBMITTED BY: Community Development STAFF RECOMMENDATION: Discussion only at this point PREVIOUS PLANNING COMMISSION ACTION: Brief discussion few months ago. At that time PC discussion centered around short-term rentals within the Downtown District only. BACKGROUND INFORMATION: Staff would like input and discussion on short-term rentals (STR’s). The Council held a workshop in May where brief discussion occurred on STR’s. The Council would like to explore the use in all Zoning districts. Over the course of the next several months the Planning Commission will pick away at the items below and craft some drafted language for consideration. As discussions continue with the PC staff will share updates to the Council at upcoming Council workshops (to get more feedback). Important items to consider for STR’s (staff will go through these at the meeting): 1)Determine areas where the use would be appropriate (allowed Zoning districts) a)Downtown Commercial District b)Highway Commercial District c)R-1 Single Family District d)R-2 Two Family District e)R-3 Multi-Family District f)R-4 Townhouse/Patio Home District g)RR Rural Residential District i)If allowed in Residential 1.Owner occupied A)Supports protection of long-term housing and not losing dwelling units in (negative impacts to the housing supply) 2.Non-owner occupied A)Limiting or not allowing. Potential concerns on losing some housing units in the city if allowed to be non-owner occupied 3.CAPS on the total number allowed A)Percentage of the total housing units in the city or for multi-family structures percentage of the total units. Could protect long-term housing units from being converted into short-term and further depleting the housing supply in the city ii)If allowed in Commercial 1.Limits on the sole use being STR. Similar to how long-term rental is regulated through an Interim Use permit 2.Encourage use to be a mixed use? 2)Determine method to allow for each Zoning district i)Via license (like an annual rental type license)12 1.Proof of proper lodging license through the State and County ii)Via Interim Use permit iii)Via Conditional Use permit 3)Definitions a)Defining what is a STR (unit rented out between 1-27 days) b)Primary residence or owner occupied (requiring a affidavit or residency) 4)Limits on the allowed number of units that can be rented in a dwelling a)Multi-family CAPs (typically a percentage of the overall building) b)Duplex and Tri-plex CAPS (typically maxed at 2 per structure) c)Single Family CAPS (typically maxed at 1 per structure) d)Limits on the number of rooms e)Limits on the number of guests 5)Other regulations to consider a) Parking 1.Ensuring adequate parking is available on-site and matches the quantity of units being rented within the space b)Signage 1.Limits on size, type, location, etc. 2.Posting of owner contact info and displaying of permit stating the unit is a STR c)Events 1.Limits or language stating not allowed d)Violations (three strike policy? Fines? Etc) 1.Suspension and revocation language 2.3 strike policy? 3.Impacts to renewal e)Enforcement (who, what, how, etc.) and Inspections 1.Responsible parties 2.How often inspections are needed (group in with annual rental license inspections?) 3.What resources are needed and staff time f)Noise and Nuisances g)Number of occupants 1.Limits on the total maximum number h)Collection of lodging tax 1.Consider how lodging tax would apply 2.Require proof that the STR has obtained proper lodging license through the State ATTACHMENTS: STR guide from National League of MN Cities and STR Ordinance examples. REQUESTED PLANNING COMMISSION ACTION: 1.Discussion and input only at this point 13 NATIONAL LEAGUE OF CITIES Short-Term Rental Regulations: A GUIDE FOR LOCAL GOVERNMENTS 14 NATIONAL LEAGUE OF CITIES About the National League of Cities The National League of Cities (NLC) is the voice of America’s cities, towns and villages, representing more than 200 million people. NLC works to strengthen local leadership, influence federal policy and drive innovative solutions. NLC’s Center for City Solutions provides research and analysis on key topics and trends important to cities, creative solutions to improve the quality of life in communities, inspiration and ideas for local officials to use in tackling tough issues, and opportunities for city leaders to connect with peers, share experiences and learn about innovative approaches in cities. 2022 ©National League of Cities. All Rights Reserved. All photo credited to Getty Images, 2022. Authors Tina Lee, Senior Research Specialist, National League of Cities Lauren Lowery, Director, Housing & Community Development, National League of Cities Lena Geraghty, Director, Sustainability and Innovation, National League of Cities Kyle Funk, Program Specialist, National League of Cities Samantha Carr, Housing & Community Development Intern, National League of Cities Acknowledgments The authors wish to recognize Matthew Disler of the Harvard Berkman Klein Center for Internet & Society for his contributions to this report and Kristin Szakos for copy editing. The authors also wish to thank the city staff and elected officials who agreed to be interviewed to inform this report, including those from Fayetteville, AR, San Diego, CA, Charleston, SC, Lake Placid, NY, Columbus, OH, and Henderson, NV. Contents 4 Foreword 7 Introduction 8 Defining Short-Term Rentals 8 What is a Short-Term Rental? 9 What Can Communities Regulate? 10 The Issue 12 Recommendations: Short-Term Rental Regulations 14 Understand the Landscape 14 Gather Data 15 Engage a Diverse Group of Stakeholders 18 Identify Policy Goal(s) 20 Develop and Pass Regulations 20 Apply a Racial Equity Lens 21 Pass Regulations Early 21 Craft Simple Regulations 24 Institute a Permit Requirement 25 Determine Fines and Fees 27 Establish a Clear Taxing Model 28 Negotiate an Agreement with Platforms 30 Enforcement 30 Dedicate Resources to Enforcement 32 Ensure Extensive Communication and Marketing 33 Move Registration and Administration Systems Online 35 Revisit and Adapt 35 Establish a Feedback Loop 37 Conclusion 38 Appendix 38 Voluntary Collection Agreements (VCAs) 40 Endnotes INTERACTIVE 15 4 Short-Term Rental Regulations: A Guide for Local Governments Foreword IN RECENT YEARS, short-term rentals have increased in cities, towns and villages across the United States. As a result of this growth, local leaders have had to grapple with competing benefits and challenges – in particular, how to ensure a healthy stock of affordable housing and how to support local tourism and economic development opportunities. One of the top priorities for city leaders today is to ensure that residents and visitors to their communities have access to safe, affordable lodging. These competing priorities make passing regulations difficult, which is why it’s not surprising that short-term rentals have become a common topic of discussion among our members at the National League of Cities (NLC). Members faced with these challenges often ask us: “What tools are available to assist me with regulating short-term rentals in my community?” This persistent question led NLC to research short-term rental regulations in cities across the country and ultimately produce Short-Term Rental Regulations: A Guide for Local Governments. Based on an analysis of 60 short-term rental ordinances, this action guide lays out a detailed overview of best practices for cities to develop and pass short-term rental regulations in their communities. While no two municipalities face the same opportunities and challenges when it comes to regulating short-term rentals, this research provides insight into how to chart a path forward successfully. This guide recommends local leaders create and enforce firm and fair regulations by focusing on clear policy objectives, centering racial equity as a critical component in their planning and actively engaging with relevant stakeholders throughout the process. Short-term rentals can open a swath of opportunity for homeowners looking to make additional dollars, while also providing economic development opportunities in neighborhoods that may not generally see high levels of tourism. By bringing community and industry leaders together, local leaders can create policies that work for both – and maximize the potential value of short-term rentals for hosts, guests and neighbors alike, all while protecting the affordability of neighborhoods. While short-term rentals are a prominent issue today, this challenge is not a new one for local leaders. There are often difficulties that come with maximizing economic growth while protecting community interests. Mayors, councilmembers and other local elected officials are well-equipped to help bring stakeholders together to understand and navigate potential trade-offs. Local leaders have an incredibly important role to play in capitalizing on the benefits of short-term rentals and minimizing potential negative impacts. I hope this resource will help your community make decisions about short-term rentals that are best for your residents. Clarence E. Anthony CEO AND EXECUTIVE DIRECTOR National League of Cities 16 NATIONAL LEAGUE OF CITIES 7 Introduction THE RAPID GROWTH of short-term rentals in cities, towns and villages across the U.S. has caused much controversy. From contentious City Hall meetings where residents advocate for more stringent or more relaxed regulations to lengthy and expensive legal battles between cities and short-term rental platforms, cities can get caught in the cross-hairs of a complicated policy issue. Short-term rentals present no shortage of challenges for local leaders, as they can affect housing availability and affordability, local tourism and economic development, neighborhood wellbeing, and health and safety. However, many cities have learned important lessons in navigating these complex issues and offer some best practices for others to learn from. Regulation of short-term rentals has proven to be an important and effective tool in making short-term rentals work for all parts of the community. Regulations that define what short-term rentals are and have appropriate mechanisms in place should intervention be necessary have helped city leaders steer the conversation toward solutions and meeting community needs. The purpose of regulating short-term rentals is not to be overly punitive or to prohibit them, but to put safeguards and appropriate enforcement mechanisms in place for when problems arise. This Action Guide will not settle debates about the specific impacts of short- term rentals on each community. Instead, it aims to equip local leaders with appropriate information and tools to adopt or amend ordinances that serve their community best: policies that are equitable; that protect municipal interests such as health and safety and housing affordability; that preserve the residential quality of neighborhoods; and that enable responsible and eligible residents to earn some additional income. 17 NATIONAL LEAGUE OF CITIES 9 9 What Can Communities Regulate? Regulations vary, depending on the needs of the locality issuing them. In a community where vacant properties are a problem, regulations might focus on upkeep and oversight. In a community where housing stock is scarce, regulations might be put in place to limit the number of properties lost to residential rentals. Generally, however, regulations include some combination of the following provisions: PROVISIONS DETAILS LOCATION AND USE Geographic limits: Cities can decide to limit the availability of STRs in specific areas of cities, such as particular residential areas or neighborhoods with specific historic character. Commercial-residential distinctions: Cities can establish different rules for properties in residential and commercial areas to account for the different interests of communities in each of these areas. TIMING Primary residence requirements: Cities can require that the STR is occupied by the host for most of the year, and/or that the rental is in or part of the owner’s primary residence. Day limits: Cities can include provisions capping the number of days per year that hosts can rent their STR. MANNER OF RENTAL Registration and licensing: Cities can require hosts to register their properties with the city and can require rental platforms (e.g., Airbnb, Vrbo, etc.) to ensure that properties listed on their sites are properly registered. Taxes: Cities can require that hosts pay transient occupancy taxes, which are taxes on what guests pay for temporary lodging in the city and are usually collected and remitted by hotels, motels and similar businesses. Cities can also work with STR platforms and other third-party providers to minimize the burden of tax remittance. Occupancy limits: Cities can limit the number of guests per stay, usually by establishing a guests-per-bedroom or per-property cap. Health and safety regulations: Cities can require STRs to have fire safety equipment and carbon monoxide detectors; display emergency information for guests; adopt measures to maintain a sanitary residence; and adopt plans for emergencies, among other requirements. Noise and event regulations: Cities can restrict the use of STRs for large gatherings and events, and they may explicitly require that guests comply with existing noise, trash and parking ordinances. Defining Short-Term Rentals What is a Short-Term Rental? In general, short-term rental (STR) refers to an activity in which one party, the “host,” agrees to rent out all or part of a home to another party, the “guest,” on a temporary, time-limited basis. The precise legal definition of a short-term rental varies by community. Most short-term rental ordinances include details on the following types of provisions that define short-term rentals for a particular community: LOCATION AND USE: Where and how many short-term rentals are allowed TIMING: How long short-term rentals can be rented for MANNER OF RENTAL: Additional requirements for hosts and guests 18 NATIONAL LEAGUE OF CITIES 11 The Issue Short-term rentals are not a new concept. Companies like Vrbo, HomeAway, Couchsurfing and Craigslist have offered consumers short-term rental options since the late 1990s without much controversy.1 The meteoric growth of the short-term rental industry in the 2010s changed that. Companies like Airbnb, Vrbo, HomeAway and FlipKey grew in popularity while consumer appetite for more original, authentic and local experiences increased, driving demand higher. As short-term rentals become more accessible to both hosts and users, use skyrocketed over a short period. But the meteoric success of short-term rental platforms has not been welcomed unreservedly. Common complaints are that short-term rentals can drive up local rents, limit the availability of long-term residential rentals, attract an influx of tourists and create excessive noise.2 Local leaders attempting to chart the pathway forward for short-term rentals in their communities must respond to many competing interests, making passing regulations and balancing those interests difficult. Some of these issues that must be considered include: Housing The research is divided on whether short-term rentals contribute to the housing crisis. Regardless of whether the exact impact on the housing market is measurable, it is undeniable that many cities in the U.S. face a housing crisis – due to a shortage of affordable housing, steady decline in federal investment in low-income housing, wage growth stagnation, etc. – and that short-term rentals may contribute to housing unaffordability and unavailability. Tourism Short-term rentals outside of the typical tourism areas in cities can be a boon to local economies, spreading dollars across the cities in ways that traditional lodging accommodations do not. On the other hand, cities with high tourism rates face a greater share of the negative impacts of short-term rentals in communities. In high-tourism communities, large numbers of whole home rentals can affect neighborhood cohesion, as they may stand empty for weeks at a time or experience high turnover in guests. Preemption Preemptive state laws can limit cities’ ability to regulate short-term rentals. The impacts of preemptive laws can range from a complete inability to regulate, to restrictions on the kinds of regulations that can be imposed. Public Health and Safety Poorly regulated and unsupervised short-term rentals can threaten the safety of neighborhoods for residents and guests alike. Party houses have become a significant point of contention in some communities. Guests may ignore or be unaware of noise, trash and parking ordinances. For myriad reasons — both within and outside of city control — cities may find it difficult to enforce the regulations they do have. Some ordinances are difficult for hosts and residents to understand and difficult for the city to enforce because they are overly complicated or poorly publicized. In other instances, cities may have no systematic way to identify hosts who are not in compliance or to keep track of what properties are being used for short-term rentals, and when. Understanding the most common barriers to effective regulation — unclear rules and lack of data — is key to making sound policy choices. Despite the limitations and challenges that city leaders face, local leaders can pass regulations that effectively balance competing interests, fit community needs, and most critically, are enforceable. 19 NATIONAL LEAGUE OF CITIES 13 THE NATIONAL LEAGUE of Cities analyzed 60 short-term rental ordinances to inform this report across 30 indicators, including the legal definition of short-term rentals, regulations and enforcement. At least one city, town or village was selected in each state, with two cities, towns or villages selected for the top ten states by population (California, Texas, Florida, New York, Pennsylvania, Illinois, Ohio, Georgia, North Carolina and Michigan) to ensure that a diversity of local context was represented in the analysis. The recommendation sections (Understand the Landscape, Develop and Pass Regulations, Enforcement, and Revisit and Adapt) are meant to build off each other and should therefore be executed in chronological order. They are detailed in the section below. Recommendations: Short-Term Rental Regulations This Action Guide will help local leaders break down the process of developing a short-term rental ordinance, provide relevant city examples and identify key tips. The following recommendations are a menu of policy principles and good practices that cities should explore when establishing or updating their regulations, based on research into short-term rental ordinances and policies across the country. UNDERSTAND THE LANDSCAPE DEVELOP AND PASS REGULATIONS ENFORCEMENT REVISIT AND ADAPT ŠGather Data ŠEngage a Diverse Group of Stakeholders ŠIdentify Policy Goal(s) ŠApply a Racial Equity Lens ŠPass Regulations Early ŠCraft Simple Regulations ŠInstitute a Permit Requirement ŠDetermine Fines and Fees ŠEstablish a Clear Taxing Model ŠNegotiate an Agreement with Platforms ŠDedicate Resources to Enforcement ŠEnsure Extensive Communication and Marketing ŠMove Registration and Administration Systems Online ŠEstablish a Feedback Loop 20 NATIONAL LEAGUE OF CITIES 15 14 Short-Term Rental Regulations: A Guide for Local Governments UNDERSTAND THE LANDSCAPE Before passing regulations, understand the local short-term rental landscape. This should involve extensive information gathering and thorough engagement with relevant stakeholders. Be mindful of what issues are associated with short-term rentals in your community to determine the goals your policy should meet. GATHER DATA While anecdotes are powerful, they are not a proxy for actual data to estimate the number and location of short-term rentals operating in a community. In some cases, data may be available through third-party platforms such as Inside Airbnb or AirDNA. Knowing approximately how many units may be on the market is critical to understanding the scope of the issue. KEY DATA POINTS INCLUDE: How many short-term rentals are operating in your community? What is the breakdown between hosted room rentals vs. whole home rentals? Where are short-term rentals operating in your community? What neighborhoods are most affected? What is the average daily price of short-term rentals vs. hotels? What is the occupancy rate of short-term rentals vs. hotels? How much revenue are short-term rental properties generating vs. hotels? Additional data sources that can help supplement short-term rental-specific data to develop a comprehensive picture of the local landscape can include tourism, housing and complaint data. Connect with local tourism boards to gather information such as how much money visitors are spending, where visitors are spending their money, where they are staying, where they are spending their time and how long they are staying. Leverage data sources such as the American Community Survey to understand the breakdown in renter vs. homeownership BULLSEYE-POINTER rates, vacancy rates and demographic information in different neighborhoods to contextualize short-term rentals in the broader housing landscape. Records of noise and nuisance complaints (e.g., through 311 calls or similar complaint or service request software) can also help cities understand where these complaints are filed and what they are. ENGAGE A DIVERSE GROUP OF STAKEHOLDERS Engage a network of stakeholders, including but not limited to tenants, landlords/homeowners, hotel and motel industry representatives, neighborhood organizations, housing advocates, tourism agencies and short-term rental platforms. This mix will look different for each city, but identifying relevant stakeholders will be key to understanding the challenges and opportunities each city faces. Hold virtual or in-person town hall meetings, drop in on various group meetings (e.g., landlord associations, property owner groups, neighborhood associations, etc.) and solicit comments from members of the public to gauge the perceptions of short-term rentals directly from community members. Cities can, for example, work with neighborhood associations to map areas especially strained by short- term rentals or tourism. Residents have the closest ear to the ground. City leaders should leverage this knowledge to their advantage. Cities have a lot to gain by partnering with platforms, but the relationship-building process can be contentious at times. These relationships are more likely to be positive when cities come to the discussion table with a clear goal in mind and communicate it with the platforms. POTENTIAL STAKEHOLDERS INCLUDE: Motel and lodge union or association Hotels or hotel union or association Realtor groups or associations Restaurant associations City Council Local planning groups and organizations Existing short-term rental operators Platforms (e.g., Airbnb, Expedia, etc.) Neighborhood associations Housing advocates Tourism agencies BULLSEYE-POINTER 21 NATIONAL LEAGUE OF CITIES 17 16 Short-Term Rental Regulations: A Guide for Local Governments CITY SPOTLIGHT: SAN DIEGO, CA While drafting its short-term rental ordinance, the City of San Diego engaged a wide variety of stakeholders including: C ITY SPOTLIGHT: FAYETTEVILLE, AR In 2018, the City of Fayetteville’s Sustainability Department worked with the University of Arkansas’ Public Policy Department to explore short-term rentals. The students leveraged data sources such as AirDNA to gather the following information: ŠActive rentals ŠAverage booked properties ŠOccupancy rate ŠAverage booking rate per night ŠAverage Airbnb private room price (Fayetteville) ŠAverage hotel room price (Fayetteville) ŠAverage Airbnb private room price (Downtown Fayetteville) ŠAverage hotel room price (Downtown Fayetteville)3 Based on this information, the students generated maps of short-term rental locations in the Fayetteville area, noting a large concentration of Airbnb rentals in the downtown area. This analysis was presented to city staff and elected officials in December 2018 to inform their discussion on short-term rentals in Fayetteville. ŠUnite Here, a union for motel/lodges ŠNeighborhood groups ŠHotel stakeholders, including the hotel/motel association ŠRealtor groups and associations ŠThe restaurant association ŠCity Council ŠLocal planning boards and organizations ŠPre-existing STR operators ŠExpedia Group and Airbnb A staff member from the San Diego City Council conducted meetings with the stakeholders. The meeting format and length varied. The city representative sometimes met stakeholders individually or invited them to speak at public meetings. Those interested in engaging longer-term were invited to a permanent stakeholder group. The stakeholder group continues to provide input on short-term rental regulation implementation. Compromise was eventually reached, most notably in the form of a memorandum of understanding (MOU) between Unite Here and Expedia Group. Through the MOU, these two major stakeholders with different perspectives agreed to partner to help regulate the short-term rental market. The MOU also laid the foundation for the regulations that the city would push forward when engaging with other stakeholder groups. Following this engagement process, the ordinance was presented to the public, Planning Commission, mayor and Coastal Commission. The city found that putting the time in to build relationships and establish trust between the municipality and short-term rental platforms was essential to the ordinance’s success. Further, going into the process with a clear goal, while being mindful of what compromises could be made, allowed the city to achieve buy-in from a diversity of stakeholders. 22 NATIONAL LEAGUE OF CITIES 19 18 Short-Term Rental Regulations: A Guide for Local Governments CITY SPOTLIGHT: CHARLESTON, SC The City of Charleston began regulating short-term rentals in 2012, when it adopted regulations that allowed commercially zoned properties to be rented as short-term rentals in the Cannonborough Elliotborough neighborhood. The goal of the regulation was to bring reinvestment into vacant, abandoned and distressed properties in the neighborhood. In subsequent years, the city saw an increase in the number of short-term rental units in Cannonborough Elliotborough and throughout Charleston. With a growing number of short-term rentals and an incoming mayor interested in revisiting short-term rental regulations, the policy moved to the forefront of Charleston’s agenda again. In 2016, the mayor and City Council began the process of updating short-term rental regulations by appointing a committee of local citizens to study and provide recommendations on short-term rentals. The committee included residents, representatives of the city’s preservation and historical societies, and tourism interests. Over time, a consensus was built around the goal to preserve the historic nature of downtown Charleston and allow short-term rentals to contribute to the local tourism economy, but only in such a way that did not alter the character of the city and negatively affect residents’ quality of life. Based on this consensus, the city developed a category-based short-term rental permitting system that requires most short-term rentals to be owner- occupied, and details additional requirements for properties located in downtown Charleston or in properties listed with the National Register of Historic Places. IDENTIFY POLICY GOAL(S) Develop a clear and concise policy goal for the short-term rental ordinance, driven by the city’s overarching goals and community input. Review strategic city plans (e.g., comprehensive housing plans, 5- and 10-year city visions, master plans) and identify top city priorities that may dovetail with priorities for short- term rentals. For example, a city may have a broader goal to advance housing affordability and may choose to focus on preserving the stock of affordable housing as a policy goal. Or a city may have the broader goal to attract more tourism and choose to focus its regulations on enabling short-term rentals with appropriate guardrails in place as the tourism industry continues to grow. Cities should be intentional about setting a goal or priority before drafting regulations. Without a clear “end goal,” cities can pass regulations that may not align with community priorities, and do not have effective mechanisms to accomplish them. By deciding on a policy and community goal, cities can craft a simpler and more targeted ordinance. Common goals, based on NLC’s analysis of 60 cities, include: ŠPrevent the loss of rental housing stock ŠSlow or prevent the overgrowth of STRs ŠBalance the needs and rights of property owners and neighbors ŠSupport tourism in a balanced way ŠCapture tax revenue ŠPreserve the residential quality of neighborhoods ŠCombat displacement ŠEnsure health and safety for guests and residents ŠAllow economic gain for residents KEY CONSIDERATION Balance competing expectations. By their nature, short-term rentals can be a contentious issue, with strongly vested interests on all sides. Each stakeholder will have to make concessions from their vision of “ideal” regulations, so helping the community and STR platforms understand that compromise is needed is critical to setting realistic expectations. Having a clear policy goal will also help coalesce stakeholders around the city’s broader vision and help justify policy choices. BULLSEYE-POINTER 23 NATIONAL LEAGUE OF CITIES 21 20 Short-Term Rental Regulations: A Guide for Local Governments DEVELOP AND PASS REGULATIONS As the short-term rental industry continues to mature, it has become clear that complex regulations are not only cumbersome for hosts and residents of the city but are also unenforceable. Policies with clear goals, fair implementation and mechanisms for enforcement will help everyone. APPLY A RACIAL EQUITY LENS One of the most commonly cited benefits of short-term rentals is that they allow hosts to generate extra income from existing assets. While this may be true, hosting is most commonly available to those who own a home. Homeownership is inseparable from race and inequality in America. According to the latest estimates from the U.S. Census Bureau, the homeownership gap between White and Black households was 30 percent in 2020.4 According to NLC’s ordinance analysis, only 38 percent of cities surveyed specifically allowed tenants to host a short-term rental. Even then, cities that do explicitly state that tenants are allowed to host require them to acquire written consent from their landlords or a have a rental contract that allows them to sublet their unit. Tenants face a high barrier to host even in the minority of cities that allow them to. The ability of short-term rentals to democratize the tourism industry is overstated when a majority of Black, Indigenous and People of Color (BIPOC) do not have access to homeownership. Given the divide in homeownership in America, the direct economic benefit of short-term rentals may exacerbate existing inequality. There is also evidence that hosts may discriminate based on race and ethnicity. A 2017 study of Airbnb data found that “applications from guests with distinctively African-American names are 16 percent less likely to be accepted relative to identical guests with distinctively White names.”5 Airbnb has since made moves to fight bias and discrimination, including changing when guest pictures are shown to a host in the booking process.6 The city of Columbus, OH, passed a discrimination clause in its ordinance stipulating that a host shall not decline a potential guest, impose different terms or conditions, or discourage or indicate a preference for or against a guest based on race, gender, sexual orientation, gender identity or expression, color, religion, ancestry, national origin, age, disability, familial status or military status.7 KEY CONSIDERATION Recognize the role that short-term rentals play in exacerbating housing unaffordability. Consider dedicating some portion of STR permit or tax revenue towards affordable housing funds or homeownership opportunities, or earmarking general fund dollars for similar programs. Boulder, CO stipulates in its ordinance that “after administration expenses are met, any additional funds shall be placed in the city’s affordable housing fund."8 PASS REGULATIONS EARLY The short-term rental industry is rapidly growing. Given the complexity of the policy and regulatory space, be proactive and establish regulations before short-term rentals have a negative impact on the community. Establishing regulations gives cities the power to intervene when necessary. It is much easier to limit the spread of short-term rentals before they have proliferated than it is to retroactively remove them from the market. Establishing regulations also becomes increasingly controversial as more stakeholders have a vested interest in seeing them maintained. Even cities that have not yet faced the negative impacts of short-term rentals should pass regulations to regulate the STR market before they proliferate. KEY CONSIDERATION A common hurdle that cities face is what to do with pre-existing short-term rentals once a new ordinance is passed. In 58 percent of the cities reviewed in the NLC ordinance analysis, cities required existing hosts to comply with regulations or apply for a permit or license. Cities must communicate early and clearly with existing hosts about their responsibilities under a newly passed or revised ordinance to give them time to meet new regulations. CRAFT SIMPLE REGULATIONS Craft simple ordinances that are clear about policy goals. This will better equip leaders to engage in conversation with platforms, residents, property owners and other stakeholders invested in the ordinance outcome. Below is a list of common goals found in the ordinance analysis, and key ordinance elements to achieve those goals. BULLSEYE-POINTER BULLSEYE-POINTER 38% of cities surveyed specifically allowed tenants to host a short- term rental. 24 NATIONAL LEAGUE OF CITIES 23 22 Short-Term Rental Regulations: A Guide for Local Governments Policy Levers to Pull to Achieve Common Policy Goals POLICY GOAL POLICY LEVERS PREVENT THE LOSS OF RENTAL HOUSING Prevent long-term rental properties from being converted to short-term rentals. Adopt a permit requirement and institute a host residency requirement, which should prevent homeowners from renting properties solely as short-term rentals and prevent properties from being purchased for the sole purpose of operating as short-term rentals. SLOW OR PREVENT THE OVERGROWTH OF STRS Prevent residential neighborhoods from being “overtaken” by guests to the detrimental of the neighborhood and residential feel of a neighborhood. Adopt a permit requirement and set a specific quota (number or percentage) on the number of short-term rental permits that will be distributed in a particular geographic area (e.g., neighborhood, census tract, ZIP code, etc.). COMBAT DISPLACEMENT The presence of short-term rentals can be particularly contentious in certain neighborhoods (e.g., neighborhoods that are experiencing displacement). Adopt a permit requirement and set a quota on the number of short- term rentals that are allowed to operate in a specific zoning district or neighborhood, particularly areas of the city that are at risk of, or are currently experiencing displacement pressure. Beware that such quotas can limit existing low-income homeowners’ ability to earn revenues from their homes. Therefore, consider how to equitably distribute permits. Consider dedicating some revenue generated from permit fees or taxes to affordable housing or home-ownership programs. Explicitly restrict affordable housing units from being rented out as short-term rentals. PRESERVE THE RESIDENTIAL QUALITY OF NEIGHBORHOODS Limit problem properties such as party houses or houses with complaints. Adopt a permit requirement and include a limit to the number of people that can stay in a short-term rental. This limit can be tied to the number of bedrooms in a short-term rental, or a total cap on the number that can stay in any type of property. A common limit that cities institute is two adults per bedroom. Require that short-term rental hosts provide their guests with a “Good Neighbor Guide” that summarizes all ordinances that guests are required to comply with during their stay (e.g., noise, trash, parking, etc.). Set restrictions on the number or percentage of short-term rentals that are allowed to operate in a particular neighborhood (or other geographic areas, such as census tract, ZIP code, etc.). BALANCE THE NEEDS AND RIGHTS OF PROPERTY OWNERS AND NEIGHBORS While lawful hosts have the right to rent their properties out, they should not infringe on the rights of neighbors. Enable hosts to rent out their homes while also ensuring that residents know where and how to file a complaint. Adopt a permit requirement and establish a process for revoking permits from properties in violation, such as a “three strikes” rule. If three verified complaints are filed within a certain time, the city can revoke a host’s permit. Establish a 24/7 hotline that residents can phone to report non-emergencies without calling the local police department or law enforcement. Require short-term rental permit hosts to list a local contact who can be reached should an issue arise.9 POLICY GOAL POLICY LEVERS ENSURE HEALTH AND SAFETY OF GUESTS AND RESIDENTS Ensure the safety of guests and residents, including minimizing public safety risks and noise and trash complaints. Adopt a permit requirement that requires each listing to include a local contact who can be reached at any time. Use this emergency contact if a complaint is filed. Stipulate that if the registered contact is not responsive, the host’s permit risks being terminated. Institute a permanent residency requirement. City leaders report that most complaints come from non-owner-occupied units. Hosts may be more invested in their property if they, too, call it home. Require that short-term rental hosts provide their guests with a “Good Neighbor Guide” that summarizes all ordinances that guests are required to comply with during their stay (e.g., noise, trash, parking, etc.). Require an inspection, or, if the city cannot carry out inspections, stipulate that the city has the right to inspect a property should sufficient suspicion arise that the property is not up to code. Institute a process for revoking permits from properties in violation, such as a “three strikes” rule. If three verified complaints are filed within a certain time, the city can revoke a host’s permit. CAPTURING TAX REVENUE Ensure that revenue is being collected. Adopt a permit requirement that will make it easier to identify whether hosts are complying and paying the appropriate taxes. Use permit and tax revenue to either hire additional staff or a third-party provider to help monitor compliance. Reach an agreement with platforms that requires them to automatically collect and remit taxes back to the city. Be wary of the transparency of the tax remittance process and ensure that the city’s enforcement powers are not stifled. SUPPORT TOURISM IN A BALANCED WAY Tourism is a key component to many local economies and short-term rentals can play a role in facilitating tourism without impacting residents if done in a balanced way. Adopt a permit requirement and set an annual permit reapplication. Make clear that applications can be denied if regulations change. Adopting a formal permit requirement will not deter hosts from participating, so long as the permitting process is not overly cumbersome. Ensure the permit fees are reasonable and tied to the cost of administering the permit program. ALLOW FOR ECONOMIC GAIN FOR RESIDENTS Short-term rentals can support wealth building for community members, although city leaders must pay attention to who is eligible to host. Adopt a permit requirement. The permit system should be simple and easy to navigate, particularly if the city is trying to encourage more permanent residents to host on a part-time basis. If the administrative burden is too high, few will be willing to put in the effort. 25 NATIONAL LEAGUE OF CITIES 25 24 Short-Term Rental Regulations: A Guide for Local Governments INSTITUTE A PERMIT REQUIREMENT Enforceable short-term rental ordinances require owners who want to host short- term rentals to acquire a permit before renting. In general, a permit requirement allows local governments to create and maintain a database of units and contact information for properties that are operating as short-term rentals. The information provided in an application is key to enforcing the ordinance, allowing the city to have a point of contact to check in with when a property is not in compliance.10 Without information on who is operating short-term rentals, cities are effectively rendered helpless in enforcing their regulations. Having an active database of short-term rentals in operation is key to moving from a reactive to a proactive approach to enforcement. To ensure that hosts are acquiring permits, the city must have a mechanism to check to ensure compliance. Some cities, like San Francisco, have negotiated agreements with platforms that require the platform to put a permit number on the host listing.11 In other cases, cities have hired third-party platforms to aid their enforcement efforts. The City of Nashville, TN, uses Granicus’s Host Compliance, a short-term rental compliance monitoring platform, to support enforcement efforts. According to Nashville officials, the Code Department was struggling to enforce its regulations when they were relying on a complaint-based process. The city was manually identifying STR addresses. With more than 60 active rental websites and private addresses and contact information, it proved to be too herculean an effort to maintain. Host Compliance’s online portal enables the city to identify illegal operators before there is a complaint, moving from reactive to proactive enforcement. Since implementing Host Compliance, Nashville has more than doubled its compliance rate to 91 percent.12 KEY CONSIDERATION Without a clear and streamlined application or licensing process, applications may backlog. This leads to an unhappy and distrustful community and may encourage illegal rentals to operate while they are in the process of being considered for a permit. In some cases, operators will purposely and continuously file for permits and operate while under consideration. Always tie the permit to the person, not the parcel. This will allow for natural attrition over time (e.g., someone sells their home, and the new owner must reapply for a short-term rental permit). BULLSEYE-POINTER DETERMINE FINES AND FEES Many cities adopt fine structures to incentivize compliance by short-term rental hosts. According to NLC’s analysis, fines range from $200 a day to $2,000 per violation, which may escalate each day. Beyond deciding the fine structure, cities must have adequate staff and resources to identify hosts who are not in compliance and communicate to hosts how to stay in compliance and avoid violations. Fines should be proportionate to or more than the economic gains that potential violators can realize from breaking the rules, and should escalate for repeat violators, including the threat of revocation of a permit or license. Host Compliance offers the following fines and fees schedule for cities to consider: Example Fine Schedule 1st violation 2nd violation 3rd violation 4th violation Fine for advertising a property for short-term rent (online or offline) without first having obtained a permit or complying with local listing requirements $200 per day $400 per day $650 per day Upon the fourth or subsequent violation in any twenty- four month period, the local government may suspend or revoke any permit. The suspension or revocation can be appealed.Fine for violating any other requirements of the local government’s short-term rental regulation $250 per day $500 per day $750 per day Notes: a.Any person found to be in violation of this regulation in a civil case brought by a law enforcement agency shall be ordered to reimburse the local government and other participating law enforcement agencies their full investigative costs, pay all back- owed taxes, and remit all illegally obtained short-term rental revenue proceeds to the local government. b.Any unpaid fine will be subject to interest from the date on which the fine became due and payable to the local government until the date of payment. c.The remedies provided for in this fine schedule are in addition to, and not in lieu of, all other legal remedies, criminal or civil, which may be pursued by the local government to address any violation or other public nuisance. Source: Host Compliance 26 NATIONAL LEAGUE OF CITIES 27 26 Short-Term Rental Regulations: A Guide for Local Governments CITY SPOTLIGHT: LAKE PLACID, NY The Village of Lake Placid collaborated with its justice court to define a short-term rental fine structure based on other successful cases. Lake Placid’s short-term rental fines range from $350 to $1,000 for the first violation plus the costs that the village has incurred for enforcement (e.g., staff time and attorney fees). Each week that the violation is not remedied constitutes a separate offense. The second violation that occurs within five years will incur a fine of between $1,000 and $3,000. Short-term rental violations can be appealed within 30 days to the joint Town of North Elba/ Village of Lake Placid Short-Term Rental Appeals Board by either the short- term rental property owner or the complainant.13 In most cases, hosts do not intentionally violate regulations, and disputes are often settled without the host incurring a fine. ESTABLISH A CLEAR TAXING MODEL Be mindful that there are multiple ways to capture revenue. In most cases, the owner/host is responsible for remitting taxes back to the city; however, several cities are trying to move the collection burden from hosts to the platforms. According to NLC’s analysis, 82 percent of surveyed cities require the host to remit taxes directly to the city, while just 5 percent require the platform to collect and remit taxes on their behalf. Cities like Annapolis, MD, and Charleston, SC, require platforms to remit taxes back to the city on behalf of hosts, automatically collecting tax revenue from a booking when it is made. While it may be easier for cities to require platforms to remit taxes, beware that there is some ongoing controversy around whether cities get back all the taxes they are owed. Several cities in South Carolina, including Charleston, are suing platforms, alleging that they are not remitting full taxes.14 In addition to the transient occupancy tax, some city councils may add an additional tax or surcharge on short-term rentals. For example, Chicago, IL, passed a 4 percent surcharge in 2016 and another 2 percent surcharge in 2018.15 The surcharge funds supportive homelessness services and enforcement of the ordinance.16 KEY CONSIDERATION Be mindful of how difficult it may be for hosts to remit taxes to the city. If a host has to remit taxes directly, consider how to make that process as simple and streamlined as possible. This not only makes it easier for hosts but ensures that the city is capturing more of the tax revenue it is owed. Include clear and concise instructions on how to remit taxes on the city’s webpage and a user-friendly platform to make payments. Consider sending notifications to all short-term rental hosts about upcoming tax payments. BULLSEYE-POINTER 82% of cities require the host to remit taxes directly to the city, while 5 percent require the platform to collect and remit taxes of hosts behalf. 27 NATIONAL LEAGUE OF CITIES 29 28 Short-Term Rental Regulations: A Guide for Local Governments NEGOTIATE AN AGREEMENT WITH PLATFORMS Cities have had varying success in building helpful agreements with platforms. Cities have a lot to gain by partnering with platforms; however, the relationship-building process can be contentious at times. These relationships are more likely to be positive when cities come to the discussion table with a clear goal in mind and communicate it with platforms. Cities may have the opportunity to negotiate agreements with platforms, such as voluntary collection agreements (VCAs) or memorandums of understanding (MOUs). Voluntary Collection Agreements A Voluntary Collection Agreement (VCA) typically involves a short- term rental platform agreeing to collect and remit transient occupancy taxes on behalf of its hosts. Agreements generally allow local governments to audit the platform, rather than the operator, but do not allow local governments to access information that could identify operators outside of the terms of the agreement. Many short-term rental platforms have agreements with local governments. As of March 2019, Airbnb had more than 350 VCAs with state and local governments in the U.S.17 While VCAs allows local governments to receive a steady stream of transient occupancy taxes, officials in several states have expressed concerns that these agreements allow platforms to remit less to governments than they owe, a problem compounded by VCA provisions that hinder tax authorities’ ability to audit platforms.18 See the Appendix for more information on VCAs. Memorandum of Understanding A memorandum of understanding (MOU) typically focuses on issues such as disclosing data, posting property registration numbers and removing illegal listings. Be aware that an MOU can include provisions that limit cities’ enforcement power or create additional duties for cities. For example, in its draft MOU with the City of Denver, Airbnb included provisions that would have made the MOU confidential and require the city to resort to arbitration to resolve disputes. Together, these provisions would have limited transparency and hampered the city’s ability to use the courts for its enforcement actions. Denver rejected the draft.19 MOUs may create additional duties for cities, such as when an MOU requires a platform to take down listings for unregistered properties but places the burden on cities to inform the platform about suspicious properties — a resource-intensive task. Cities may attempt to shift some of these burdens onto the platform. In one settlement with New York City, Airbnb agreed to automatically provide information for certain listings that met specific criteria.20 In the City of Portland, OR’s MOU with Airbnb, the two parties share duties: Airbnb is responsible for regularly reporting data about hosts and properties, and Portland is responsible for using the information it receives to verify that hosts have properly registered.21 KEY CONSIDERATION Approach negotiated agreements well informed and with a clear policy goal in mind. Because VCAs and MOUs tend to be offered with standard language and provisions that benefit platforms and hinder city oversight efforts, cities should be prepared to analyze the agreements and decide whether and how to negotiate more favorable conditions. BULLSEYE-POINTER Voluntary Collection Agreement (VCA): A VCA typically involves a short-term rental platform agreeing to collect and remit transient occupancy taxes on behalf of its hosts. Memorandum of Understanding (MOU): A MOU typically focuses on issues such as disclosing data, posting property registration numbers and removing illegal listings. 28 NATIONAL LEAGUE OF CITIES 31 30 Short-Term Rental Regulations: A Guide for Local Governments ENFORCEMENT The purpose of regulations should not just be to capture additional revenue but to minimize and mitigate the negative side effects associated with the uncontrolled growth of short-term rentals. Cities need to move away from reactive to proactive enforcement when possible. Effective enforcement is key to an ordinance’s success. Without regulations that clearly define what a short-term rental is, a database of units being operated, and contact information for those units, cities are effectively rendered helpless in enforcing their regulations. DEDICATE RESOURCES TO ENFORCEMENT Dedicated resources, time, staff and money are necessary for successful enforcement. Short-term rental regulation enforcement can be revenue neutral or positive for municipalities when license, permit and tax revenue offsets costs.22 In some cases, cities can also leverage existing resources such as 311 service to take in short-term rental complaints. Some examples of key enforcement components that require dedicated resources include: ŠHiring additional code enforcement officers to identify and flag repeat offenders ŠHiring a third-party platform to help with data collection and enforcement ŠHiring a web developer to create a “one-stop-shop” website for STR hosts and residents ŠHiring additional staff to set up and service a complaint hotline ŠInstituting (re)inspections for violating properties CITY SPOTLIGHT: COLUMBUS, OH The most recent ordinance amendment in the City of Columbus allows the licensing department to deny, revoke or suspend a permit if there are three or more emergency calls made on a specific property in the previous 12 months (i.e., “three-call rule”). To help facilitate this system, the city’s technology department created an internal database that connects the 311 service with the city’s computer-aided dispatch software to allow enforcement to search the address on the map and know what type of emergency service was requested. City staff reference this database when an application is made or when a complaint about a property is filed. This allows the city to identify properties that have violated the ordinance or have passed the “three-call rule.” 29 32 Short-Term Rental Regulations: A Guide for Local Governments ENSURE EXTENSIVE COMMUNICATION AND MARKETING Transparent and clear communication and marketing are critical to the success of an ordinance. Clear communication will support the ordinance’s success (e.g., hosts, guests and residents know what the rules and regulations are) and is key to preventing community backlash when an ordinance is established or revisited. Consistent contact with landlord associations and property owner groups allows the city to convey to hosts how to remain in compliance. This may be an opportunity to develop relationships with trusted voices in key groups who can serve as a liaison with the broader community and as a spokesperson for good hosting etiquette. Regular contact with residents means that cities can convey the best way to file nuisance and safety complaints should there be a violation at a short-term rental. This helps communities feel like they have a trusted partner in the city to ensure community safety. KEY CONSIDERATION Consider hiring or assigning specific city staff to be liaisons with the community. Doing so may help establish trust among hosts, residents and the city, making room for more constructive conversations should something go awry. In addition, developing relationships with specific community members (e.g., hosts or residents) can help broaden the city’s reach into the community. For example, hosts who have good relationships with the city can promote good hosting etiquette in the community. BULLSEYE-POINTER MOVE REGISTRATION AND ADMINISTRATION SYSTEMS ONLINE To the extent possible, cities should limit the administrative burden on city staff and platform users. Moving registration or licensing systems online (while keeping the paper application option open) makes the process more seamless for hosts and less cumbersome for city staff who process those applications. Beyond moving the registration or licensing system online, consider launching a centralized, accessible and easy-to-use webpage with all relevant short- term rental information. One common complaint that cities receive is that short-term rental regulations are difficult to understand. In most cases, it is not that the regulations themselves are too complex, but that regulations are not transparent and explained in an accessible way. Launching a webpage that is regularly updated keeps the community informed. According to a recent 2022 report and survey from Rent Responsibly and the College of Charleston, 49 percent of surveyed short-term rental hosts got information from government websites about local regulations that affect short-term rentals.23 Furthermore, this webpage can serve as a resource for city staff who are not experts on short-term rentals but may be required to liaise with the public about them. 30 NATIONAL LEAGUE OF CITIES 35 34 Short-Term Rental Regulations: A Guide for Local Governments CITY SPOTLIGHT: HENDERSON, NV The City of Henderson set up an easily navigable webpage with information on short-term rentals, including application materials and answers to frequently asked questions.24 This webpage serves as a “one-stop-shop” for hosts, residents and staff. The short-term rental webpage has the second-highest number of hits on the Henderson website. On the webpage hosts can: ŠFind the most up-to-date short-term rental ordinance and state laws that apply to short-term rentals ŠRegister their short-term rental ·Find city contact information to support them through the registration process ·Find clear lists on how to apply and what documents are needed ·Find application forms that are easy to download or file online ŠRenew their short-term rental registration ŠPay their transient lodging tax and fees ·Find tax forms that are easy to download On the webpage residents can: ŠFind relevant short-term rental regulations, including the city ordinance and state laws that apply to short-term rentals ŠLocate the complaint phone hotline to report any illegal short-term rental or to file noise, trash, parking, occupancy or other nuisance complaints ŠAccess the complaint website to submit a complaint online REVISIT AND ADAPT The short-term rental market is consistently in flux, meaning regulations may have to change to meet the market and evolving community needs. Regularly revisit your ordinance to ensure that it still has the right balance of competing expectations and alignment with city goals. ESTABLISH A FEEDBACK LOOP Particularly when first passing an ordinance, be intentional about setting metrics of success that align with policy goals. These qualitative and quantitative policy goal-aligned metrics will determine how performance is evaluated. Setting a dedicated evaluation period following the passage of a short-term rental ordinance will allow for better evaluation and help generate ideas of how to improve an ordinance. Make sure the public and the hosts understand that the regulation may change at the end of the evaluation period. Build in a recurring check-in with relevant stakeholders to determine whether the short-term rental ordinance is meeting the city’s originally stated goal, and if not, what needs to be adjusted. This is where the feedback loop is particularly important. Keep an open line of communication with relevant stakeholders (e.g., landlord associations, property owners, residents, housing advocates, community groups, hotels, tourism agencies, etc.) to better understand how the implementation of the ordinance is playing out. In Fayetteville, AR, the city authorizes a 20-month sunset clause in its ordinance, allowing city leaders to conduct regular review and reauthorization of the ordinance.25 Some adjustments have been made following these regular review periods, including increasing the occupancy tax rate to better fund the cost of enforcement, adjusting the cap on the number of short-term rentals allowed in the community and requiring a unit inspection. KEY CONSIDERATION If there is a recurring evaluation period for the ordinance, tell the community early on. Transparency is key to making sure hosts and residents know that regulations may change in the future. This may limit the potential backlash of changing regulations after passing them. BULLSEYE-POINTER 31 NATIONAL LEAGUE OF CITIES 37 Conclusion SHORT-TERM RENTALS ARE here to stay and, when regulated with care and the proper safeguards in place, can be integrated into the fabric of a community. STRs can enhance tourism, stimulate economic growth in targeted neighborhoods and give residents a way to supplement their income, but can also exacerbate racial inequity, put pressures on affordable housing and disrupt neighborhoods. With proper regulation, cities can enjoy the benefits of STRs and limit their negative impacts. Regulating short-term rentals is not about limiting their potential, but about enacting the appropriate mechanisms to keep competing priorities and interests balanced. As cities consider regulations to address short-term rentals in their communities, it is important that they act promptly, remain focused on a clear policy objective, consider racial equity, actively engage with relevant stakeholders, develop and enforce clear regulations, and provide continuous review of ordinances. The resources found in this Action Guide can help our communities find the proper balance to effectively support and regulate this growing industry. 32 38 Short-Term Rental Regulations: A Guide for Local Governments NATIONAL LEAGUE OF CITIES 39 Appendix Voluntary Collection Agreements (VCAs) COMMON PROVISIONS THINGS TO WATCH OUT FOR COLLECTION AND REMITTANCE Platforms agree to collect transient occupancy taxes from guests and remit the amount collected to the government taxing authority. Without this provision, the platform may refuse to collect the tax, arguing that hosts are responsible for collection. Even with the provision, some platforms have been accused of under delivering taxes remitted to cities. REPORTING AGGREGATE INFORMATION The platform agrees “reasonably to report aggregate information” related to its collection and remittance of transient occupancy taxes to the tax authority. Aggregate information includes the total amounts of receipts, exemptions, adjustments and so forth, but does not include individualized information for specific properties. Aggregate information does not allow cities to gather individualized information on particular properties. DETERMINING LIABILITY FOR TAXES The platform agrees to be held legally responsible for failure to report, collect or remit the transient occupancy taxes, and the tax authority agrees not to hold individual hosts responsible for reporting, collecting or remitting taxes on their property. WAVIER OF LOOK-BACK The tax authority agrees not to pursue any actions to recover unpaid taxes that had been due before the date the agreement went into effect. If the city has not yet received payments from a large proportion of STRs, then waiving all claims on taxes owed before the VCA’s implementation will result in the city potentially forfeiting a significant amount of tax revenue. On the other hand, a city may not have the capacity to go after back taxes, and be mostly concerned with collection of future taxes, making waiver of past tax liability a lower priority. NOTIFICATION TO HOSTS AND RENTERS The platform agrees to notify hosts and renters that it will be collecting and remitting transient occupancy taxes for their transactions. COMMON PROVISIONS THINGS TO WATCH OUT FOR AUDITING The tax authority agrees to audit the platform on the basis of its tax returns and supporting documentation, rather than on audits of individual renters or hosts. Some VCAs also state that the tax authority cannot audit individual renters or hosts until it has finished auditing the platform and a tax issue remains unresolved. All transaction and tax data reviewed by a city tax authority must be anonymized. If the city suspects wrongdoing on the part of a specific host, it must first audit the anonymous data, then pick out suspicious transactions, and then finally obtain a subpoena to get identifiable data from the platform. The tax authority agrees to limit the number of times it will audit the platform (e.g., to only audit the platform once every two years, and to only audit transactions conducted over a 12-month stretch.) This may limit the tax authority’s access to data and ability to audit individual hosts and affect city efforts to enforce home-sharing laws. Cities such as Culver City, CA, have negotiated alternative provisions ensuring that they can continue to audit individual hosts if they receive information about the property’s violations from another source.26 Anonymized data may mean that cities can only use aggregate information, which prevents cities from investigating individual cases of violation. For example, Snowmass, CO, states that it will audit “on an anonymous numbered account basis,” suggesting that disaggregation is not required.27 Cities can also suggest alternative kinds of privacy protection that allow for individualized reports, such as pseudonymizing information. VCAs typically provide that all information about hosts and guests will remain anonymous unless the city has completed an audit of the platform and served the platform with a subpoena or similar legal process. Cities may want to negotiate changes to this provision to allow them to ensure that properties are registered. For example, if cities have already passed ordinances requiring registration, their audits might request information about the registration number. Cities can negotiate limits on audit frequency to allow for more frequent and tailored enforcement efforts. For instance, the audit frequency in Pacific Grove, CA, is once every 36 months; although this period may still be too long for many cities to effectively audit home- sharing, it does indicate that VCAs’ time provisions can vary.28 33 40 Short-Term Rental Regulations: A Guide for Local Governments NATIONAL LEAGUE OF CITIES 41 Endnotes 1 The history of short-term rentals (n.d.). Keycafe Blog. https://web.archive.org/ web/20220310191702/https://blog.keycafe.com/the-history-of-short-term-rentals/ 2 Barron, K., Kung, E., & Proserpio, D. (2020, March 4). The effects of home-sharing on house prices and rents: Evidence from Airbnb. Marketing Science, 40(1), 1 – 191. http://dx.doi.org/10.2139/ssrn.3006832 3 Resolution: 172-19 A Resolution to Request That City Staff Study and Develop an Ordinance to Regulate Short-Term Rentals in the City of Fayetteville (2019, July 16). Fayetteville City Code. https://web.archive.org/web/20220310192617/https://www.fayetteville-ar.gov/ DocumentCenter/View/19304/Short-Term-Rentals-Study-SIGNED-RES-172-19 4 U.S. Census Bureau. (n.d.). Quarterly homeownership rates by race and ethnicity of householder for the United States: 1994-2020. https://www.census.gov/housing/hvs/data/charts/fig08.pdf 5 Edelman, B., Luca, M., & Svirsky D. (2017). Racial discrimination in the sharing economy: Evidence from a field experiment. American Economic Journal: Applied Economics, 9(2), 1–22. https://doi.org/10.1257/app.20160213 6 Airbnb. (2019, September 2019). An update on Airbnb’s work to fight discrimination. https://news.airbnb.com/an-update-on-airbnbs-work-to-fight-discrimination/ 7 Chapter 598 Hotel/Motel and Short-Term Rental Operations (2018, January 30). Columbus City Codes. https://library.municode.com/oh/columbus/codes/ code_of_ordinances?nodeId=TIT5BURELICO_CH598HOMOSHRMREOP 8 Chapter 15 - Short-Term Rental Tax: Legislative Intent (2015, September 1). City of Boulder, Colorado Charter and Revised Code. https://library.municode.com/co/boulder/ codes/municipal_code?nodeId=TIT3RETA_CH15SHRMRETA_3-15-6--3-15-12RE 9 Binzer, U. (n.d.). A practical guide to effectively regulating short-term rentals on the local government level. Host Compliance. https://web.archive.org/web/20220317135940/https:// www.cityofsantacruz.com/home/showpublisheddocument/57754/636177355568470000 10 Binzer, U. (n.d.). Home-sharing & short-term rentals regulations FAQs. Granicus. https://granicus.com/pdfs/Home-Sharing-Short-Term-Rentals-FAQ.pdf 11 San Francisco’s registration process: Frequently asked questions. (n.d.). Airbnb. https://www. airbnb.com/help/article/1849/san-franciscos-registration-process-frequently-asked-questions 12 Nashville, Tennessee: How the codes department achieves 90%+ compliance with Host Compliance. (n.d.). Granicus. https://granicus.com/how-the-codes- department-achieves-90-compliance-with-host-compliance/ 13 A Local Law “Amending the Village of Lake Placid/Town of North Elba Land Use Code to Add Regulations Pertaining to Short-Term Rentals (2020). Village of Lake Placid/Town of North Elba Land Use Code. http://www.northelba.org/files/TownLocalLawSubmissiontoNYSDOS.pdf 14 Brown, A. (2021, July 1). SC cities sue Airbnb and other short-term rental companies for not paying local taxes. The Post and Courier. https://www.postandcourier.com/ business/real_estate/sc-cities-sue-airbnb-and-other-short-term-rental-companies-for- not-paying-local-taxes/article_f44f0f60-9bb9-11eb-a4b5-636eb8976c0f.html 15 Amendment of Municipal Code Section 3-24-030 Regarding Surcharge Associated with Vacation Rentals and Shared Housing Units (2018, June 27). Municipal Code of Chicago. https://www.civicfed.org/sites/default/files/o2018-4988.pdf 16 Reuters, T. (2016, November 3). Chicago passes short-term rental ordinance. Hospitality Lawyer. https://hospitalitylawyer.com/chicago-passes-short-term-rental-ordinance/ 17 Martineau, P. (2019, March 20). Inside Airbnb’s ‘guerrilla war’ against local governments. Wired. https://www.wired.com/story/inside-airbnbs-guerrilla-war-against-local-governments/ 18 Bucks, R. D. (2017, March). Airbnb agreements with state and local tax agencies. A formula for undermining tax fairness, transparency and the rule of law. https:// www.ahla.com/sites/default/files/Airbnb_Tax_Agreement_Report_0.pdf 19 Swanson, C. (2020, February 14). Frustrated Denver officials reject deal with Airbnb. The Denver Post. https://www.denverpost.com/2020/02/14/denver-airbnb-agreement 20 Martineau, P. (2019, May 24). Airbnb and New York City reach a truce on home-sharing data. Wired. https://www.wired.com/story/airbnb-new-york-city-reach-truce-on-home-sharing-data/ 21 Templeton, A. (2019, September 4). Portland reaches rental data sharing agreement with Airbnb. Oregon Public Broadcasting. https://www.opb.org/ news/article/portland-airbnb-reaches-rental-data-sharing-agreement/ 22 Binzer, U. (n.d.). Home-sharing & short-term rentals regulations FAQs. Granicus. https://granicus.com/pdfs/Home-Sharing-Short-Term-Rentals-FAQ.pdf 23 Rent Responsibly & College of Charleston. (2022, January). 2022 report state of the short-term rental community. https://www.rentresponsibly.org/wp-content/ uploads/2022/01/2022-State-of-the-STR-Community-Report-January-2022.pdf 24 City of Henderson, NV. (n.d.). Short-term vacation rentals. https://www.cityofhenderson.com/ government/departments/community-development-and-services/short-term-vacation-rentals 25 Short-Term Regulations (2021, April 20). Fayetteville City Code. https://www.fayetteville- ar.gov/DocumentCenter/View/23281/Ordinance-6427-Short-Term-Rental 26 Voluntary Collection Agreement for City of Culver City, California, Transient Occupancy Tax (2018, September 25). https://www.culvercity.org/files/assets/public/documents/ city-manager/short-term-rentals/vca-agreement-with-airbnb_1.pdf 27 Voluntary Collection Agreement for Town of Snowmass Village Sales and Lodging Taxes (2016, November 30) http://nwccog.org/wp-content/ uploads/2018/07/AIRBNB-Voluntary-Collection-Agreement.pdf 28 Mayberry, C. (2017, October 19). Pacific Grove’s new short-term rental policy includes agreement with Airbnb. Monterey Herald. https://www.montereyherald.com/2017/10/19/ pacific-groves-new-short-term-rental-policy-includes-agreement-with-airbnb/ 34 35 1 AN ORDINANCE OF THE CITY OF PROCTOR, MINNESOTA CONCERNING THE PERMITTING OF SHORT-TERM VACATION RENTALS The City Council of the City of Proctor does ordain as follows: Section 1. Purpose: The purpose of this ordinance is to ensure that the short-term rental of dwelling units within the City is conducted, operated and maintained in a manner so as to protect the public health, safety and welfare of the citizens of the City of Proctor, and so as to not become a nuisance to the surrounding neighborhood. Section 2. Definitions: The following terms, as used in this Section, shall have the meanings stated: 1. “Dwelling.” Any building or portion thereof which is designed for or used for residential purposes. 2. “Dwelling unit.” Any room or group of rooms located within a dwelling and forming a single habitable unit equipped and intended to be used for living, sleeping, cooking and eating. 3. “On-premise sign.” As defined in Proctor City Code, §1002.13. 4. “Operate.” To charge a rental charge for the use of a unit in a dwelling. 5. “Owner.” Any person who, alone or jointly or severally with others: (a)Shall have legal title to any dwelling or dwelling unit, with or without accompanying actual possession thereof; or (b)Shall have charge, care or control of any dwelling or dwelling unit, as owner or agent of the owner, prime tenant, or as executor, executrix, administrator, administratrix, trustee or guardian of the estate of the owner. Any such person thus representing the actual owner shall be bound to comply with the provisions of this Section, to the same extent as if such person were the owner. 6. “Person.” Any individual, firm, corporation, association or partnership. 7. “Recreational Vehicle.” The term “recreational vehicle” means any of the following: (a)“Travel Trailer” – vehicular, portable structure built on a chassis designed to be used as a temporary dwelling for travel, recreational and vacation uses, permanently identified “Travel Trailer” by the manufacturer of the trailer. 36 2 (b)“Pick-up Coach” – A structure designed to be mounted on a truck chassis for use as a temporary dwelling for travel, recreation and vacation. (c ) “Motor Home” – A portable, temporary building to be used for travel, recreation and vacation, constructed as an integral part of the self-propelled vehicle. 8. “Short-term rental.” The rental or lease of a dwelling unit, in whole or in part, for thirty (30) days or less. 9. “Short-term rental permit.” The permit issued by the City for the rental or lease of a dwelling unit, in whole or in part, for thirty (30) days or less. 10. “Solid waste.” Garbage, refuse or any other discarded solid organic or inorganic materials. 11. “Tenant.” Any person who is occupying a dwelling unit in whole or in part under any agreement (written or oral), lease or contract. Section 3. Exemptions. This Ordinance shall not apply to hospital units or rooms, nursing homes, retirement homes, hotels, motels, bed and breakfasts, or other similar rental space that is otherwise licensed by the State of Minnesota or the City of Proctor. Section 4. License Required. No owner shall undertake the short-term rental of any dwelling unit to a tenant or tenants unless properly permitted by state, county and any other governmental regulations, and as hereinafter provided. Section 5. Application. An owner desiring to undertake or allow the short-term rental of a dwelling unit in the City shall apply for a short-term rental license. The application shall be submitted by the owner. The permit application shall be on a form prescribed by the City and shall include all required information. Section 6. Lodging Tax. Short-term rentals are subject to lodging tax as provided for in the City of Proctor City Code. An application for a short-term rental license must be accompanied by a lodging tax form as prescribed by the City including all required information. A short-term rental permit holder is required to file monthly lodging tax reports. Section 7. Expiration of License. Short term rental license shall expire annually on December 31st of each year unless suspended or revoked as provided for in this Ordinance. Section 8. Renewal of License. Applications for renewal of an existing short-term rental license must be made at least sixty (60) days prior to the expiration of the current short-term rental license. All such applications shall be made to the City on forms provided by the City. 37 3 Section 9. Permitted Premises. Short-term rentals shall only be licensed for dwelling units located on conforming lots as defined in the City of Proctor Zoning Ordinance. All licensed premises must be hooked up to City water and sewer services. Section 10. Recreational Vehicles. The short-term rental of recreational vehicles parked or otherwise located on property outside of designated campsites within the City is prohibited. Section 11. Licenses Not Transferable. No short-term rental licenses shall be transferable to another person or another dwelling unit. Every person holding a short-term rental license shall give notice in writing to the City within five (5) business days after having legally transferred or otherwise disposed of the legal control of any dwelling unit for which a short-term rental license has been issued. Such notice shall include the name and address of the person succeeding to the ownership or control of such dwelling unit. Section 12. Registered Agent Required. No short-term rental permit shall be issued without the designation of a local agent. The agent must live and work within 30 miles of the dwelling unit. The agent may, but is not required to be, the owner. One person may be the agent for multiple dwelling units. At all times, the agent shall have on file with the City a primary and secondary phone number as well as current address. The agent or a representative of the agent shall be available 24 hours a day during all times that the dwelling unit is being rented as the primary or secondary phone number to respond immediately to complaints and contacts relating to the dwelling unit. The City shall be notified in writing within five (5) business days of any change of agent. The agent shall be responsible for the activities of tenants and the maintenance and upkeep the dwelling unit and shall be authorized and empowered to receive notice of a violation of the provisions of City ordinances and state law, to receive orders, and to institute remedial action to effect such orders, and to accept service of process pursuant to law. Section 13. Responsibility of Owners. No owner shall undertake or allow the short-term rental of a dwelling unit that does not comply with all applicable City ordinances, the laws of the State of Minnesota, and this Section. It shall be the owner’s responsibility to ensure compliance with the following: (a)Maintenance Standards. Every dwelling unit used for short-term rental shall conform to all building and zoning requirements of the City of Proctor and laws of the State of Minnesota. (b) Parking. All short-term rentals shall have its own designated off-street parking and own drive not shared with another dwelling or business. (d)Signs Prohibited. On-premise signs are prohibited. (e) Tenants. Owner or registered agents shall maintain a list of all current and prior tenants of each dwelling unit, including dates stayed at the dwelling units. The owner or registered agent shall make the list available to City staff and/or law enforcement upon request. 38 4 (f) Emergency Contact. The owner shall post within the dwelling unit the name, address, email and primary and secondary telephone number of the owner or any registered agent that can be utilized twenty-four (24) hours a day by tenants or their guests. (g)Noise Standards. Quiet hours shall be between 10 p.m. and 8 a.m. Any outdoor amplified sound during this time that can be heard by neighboring property owners is prohibited. (h)Solid Waste. Owner shall ensure that appropriate solid waste and/or recycling bins are available for use by tenants and guests and shall not be stored in public view. (i)Posted Notice. Owner shall post within the dwelling unit, notice of all use restrictions as set forth in this Ordinance. Section 14. Disorderly Conduct Prohibited. Disorderly conduct is prohibited on all permitted premises. It shall be the responsibility of the owner to ensure that all tenants occupying the permitted premises and their guests conduct themselves in such a manner as not to cause the permitted premises to be disorderly. For purposes of this section, disorderly conduct refers to any disorderly conduct violation under Minnesota Statutes or City of Proctor Ordinances. Section 15. Permit Revocation. Every short-term rental permit is subject to revocation for violations of this Section or any other provision of Minnesota or City of Proctor Ordinances. A. Violations. Violations of this Section shall be reported to the City Clerk’s Office and Orr City Council. The City Council shall review the violation and provide written notice to the permit holder of the violation and any necessary remedial actions. B. Revocation. If a license holder fails to correct a violation or receives three (3) violations within any twelve (12) month period, the City Council shall recommend revocation of the short-term rental license. The City Council and City Clerk shall provide written notice to the owner and any registered agent of the revocation. The notice shall inform the owner and agent of the right to appeal the decision of the Proctor City Council. C. Appeal. A license holder aggrieved by the revocation of a short-term rental license may appeal to the City Council. Such appeal shall be taken by filing with the City Clerk’s office within ten (10) days after date of issuance of the written revocation notice, a written statement requesting a hearing before the City Council and setting forth fully the grounds for the appeal. A hearing shall be held within thirty (30) days of receipt of the request. Notice of the hearing shall be given by the City Clerk in writing, setting forth the time and place of the hearing. Such notice shall be mailed, postage prepaid, to the permit holder at his/her last known address at least five (5) days prior to the date set for hearing. 39 5 D. Effect of Revocation. If a short-term rental permit is revoked, it shall be unlawful for anyone to thereafter allow any new short-term rental occupancies of the dwelling unit until such time as a valid short-term rental permit is issued by the City. No person who has had a permit revoked under this Section shall be issued a short-term rental permit for one year from the date of revocation. Section 16. Violation. Any person who undertakes or allows any violation of this section shall be guilty of a misdemeanor. Section 17. Zoning. Short-term rentals shall only be allowed uses in R-3 zones and up, and shall only be allowed pursuant to conditional use permits. Further, the conditional use permit issued to a licensed short term rental owner shall cease if the property is sold, either through a conveyance or through the conveyance of a controlling interest in a business entity. Section 18. Current Short-Term Rentals. Existing short-term rental properties which are not in an allowed zone shall only be permitted to operate as a short-term rental for an additional period of six (6) months after the passage of this ordinance. Existing short-term rental properties which are in zones permitted by this ordinance shall only be permitted as allowed herein, by obtaining a conditional use permit and licensure. 40 ORDINANCE NO. __________ AN ORDINANCE OF THE CITY OF LA CRESCENT REGULATING SHORT TERM RENTALS IN THE CITY OF LA CRESCENT, MINNESOTA I.PURPOSE The purpose of this Section is to ensure that the short-term rental of dwelling units in the City is conducted, operated, and maintained so as not to become a nuisance to the surrounding neighborhoods or an influence that fosters blight and deterioration or creates a disincentive to reinvest in the community. II.SCOPE This section applies to the short-term rental of all dwelling units located within all zoning districts of the City of La Crescent. III.DEFINITIONS The following words and terms when used in this Section shall have the following meanings unless the context clearly indicates otherwise: Bedroom: A habitable room within a single-family dwelling which is used, or intended to be used, primarily for the purpose of sleeping, but shall not include any kitchen, dining room, or living room. Building Official: An employee of the City designated as the Building Official. The term Building Official also includes all City employees authorized to issue citations. Dwelling unit: One or more rooms physically arranged so as to create an independent housekeeping establishment for occupancy by one family with separate toilets and facilities for cooking and sleeping. Occupant: Any person who occupies a dwelling unit or part of the same. Owner: A person having legal or equitable interest in the dwelling unit or its premises. Off-street parking space: An area on the permitted premises or within a building on the permitted premises intended for the use of temporary parking of a motor vehicle which has a means of access to a public street. Permitted Premises: The platted lot or part of such lot or unplatted parcel of land on which a dwelling unit permitted as a short-term rental is located. Public waters: Any waters as defined in Minnesota Statutes § 103G.005, Subd. 15. Short-term rental: The rental or lease of a dwelling unit in whole or in part for thirty (30) days or less. Short-term rental permit: The permit issued by the City for the rental or lease of a dwelling unit for short-term rental. 41 Tenant: Any person who is occupying a dwelling unit under any agreement, lease, or contract, whether oral or written, which requires the payment of money as rent for the use of the dwelling unit. Watercraft: Any vessel, boat, canoe, raft, barge, sailboard, or any similar device used or useable for carrying and transporting persons on the public waters. IV.PERMIT REQUIRED No person shall undertake the short-term rental of any dwelling unit, or advertise such dwelling unit for rental, to a tenant or tenants unless properly permitted as hereinafter provided. Application: A person desiring to undertake or allow the short-term rental of a dwelling unit in the City shall apply to the Building Official for a short-term rental permit. The application shall by submitted by the owner. The permit application shall be on a form prescribed by the City and include all required information. Permit Fee: Each application shall be accompanied by payment in full of the required permit fee. The annual permit fee shall be determined by the City Council and set forth in the City fee schedule. The fee shall not be prorated. Issuance of Short-Term Rental Permit: 1. If the Building Official determines that an applicant has met the requirements for issuance of a short-term rental permit, the Building Official shall issue the applicant a short-term rental permit. 2. If the Building Official determines that an applicant has not met the requirements for issuance of a short-term rental permit, the Building Official shall endorse on such application his/her disapproval and his/her reasons for the same and provide the application and recommendation for denial to the City Administrator. The City Administrator may either: (i) deny the application and return the endorsed application to the applicant to notify the applicant that his/her application is denied and that no permit will be issued; or (ii) direct the Building Official to issue the applicant a short-term rental permit. Expiration of Permit: Except as otherwise provided in this Section, all short-term rental permits shall expire annually on December 31 of each year unless suspended or revoked earlier. Renewal of Permit: Applications for renewal of an existing short-term rental permit shall be made at least thirty (30) days prior to the expiration of the current short-term rental permit. All such applications shall be submitted to the Building Official on forms provided by the City and shall be accompanied by the required fee. Permit Not Transferable: No short-term rental permit shall be transferable to another person or to another dwelling unit. Every person holding a short-term rental permit shall give notice in writing to the Building Official within five (5) business days after having legally transferred or otherwise disposed of the legal control of any dwelling unit for which a short-term rental permit has been issued. Such notice shall include the name and address of the person succeeding to the ownership or control of such dwelling unit. 42 Resident Agent Required: No short-term rental permit shall be issued without the designation of a local agent. The agent must live within 30 miles of the dwelling unit. The Agent may, but is not required to be, the owner. One person may be the agent for multiple dwelling units. At all times, the agent shall have on file with the Building Official a primary and a secondary phone number as well as a current address. The agent or a representative of the agent shall be available 24 hours a day during all times that the dwelling unit is being rented at the primary or secondary phone number to respond immediately to complaints and contacts relating to the dwelling unit. The Building Official shall be notified in writing within two (2) business days of any change of agent. The agent shall be responsible for the activities of the tenants and maintenance and upkeep of the dwelling unit and shall be authorized and empowered to receive service of notice of violation of the provisions of City ordinances and state law, to receive orders, and to institute remedial action to affect such orders, and to accept all service of process pursuant to law. Denial of Short-Term Rental Permit: Any applicant aggrieved by the denial of a short-term rental permit, or the non-renewal of an existing permit may appeal to the City Council. Such appeal shall be taken by filing with the City Administrator within ten (10) days after the date of issuance of the written denial, a written statement requesting a hearing before the City Council and setting forth fully the grounds for the appeal. A hearing shall be held within sixty (60) days of receipt of the request. Notice of the hearing shall be given by the City Administrator in writing, setting forth the time and place of hearing. Such notice shall be mailed, postage prepaid, to the applicant at his/her last known address at least five (5) days prior to the date set for hearing. V.RESPONSIBILITY OF OWNERS: No owner shall undertake or allow the short-term rental of a dwelling unit in a Residential Use District that does not comply with all applicable City ordinances, the laws of the State of Minnesota, and this Section. It shall be the owner's responsibility to ensure that all tenants, occupants, and guests comply with the following: Maximum Overnight Occupancy: The number of overnight occupants allowed for a short-term rental shall be limited as set out below. Children under three (3) years of age are not to be counted toward the limit. For lots of 1/2 acre or more if the livable square footage of the primary building is: ▪ Under 1,500 square feet: 6 occupants ▪ 1 ,500 square feet to 1,999 square feet: 8 occupants ▪ 2,000 square feet or more: 12 occupants For lots of less than 1/2 acre: ▪Under 1 ,500 square feet:4 occupants ▪1 ,500 square feet to 1,999 square feet: 6 occupants ▪2,000 square feet or more:8 occupants Off-Street Parking: The permitted premises shall contain off-street parking spaces equal in number to the number of bedrooms contained in the dwelling unit. Mooring and Storage of Watercraft: 43 1. No more than two (2) restricted watercraft may be moored at the permitted premises at any one time. Any restricted watercraft moored at the permitted premises must be registered and owned by either the property owner or the current tenant. 2. No watercraft shall be permanently or temporarily placed or stored within the side yard setback of the permitted premises. Maintenance Standards: Every dwelling unit used for short-term rental shall conform to all building and zoning requirements of the City Code, permits issued by the City, and the laws of the State of Minnesota. Rental Limit: No dwelling unit shall be rented out more than 120 times per calendar year. Occupants: The agent shall maintain a fully executed lease for all tenants and a list of all current occupants of each dwelling unit. The agent shall make the lease and list available to City staff and/or law enforcement upon request. In addition, a copy of the fully executed lease shall be kept available at the dwelling unit at all times during the lease term. Lodging Tax: The state legislature has authorized the imposition of a tax upon short-term-rental properties. The City has imposed such a lodging tax to provide funding to stimulating tourism within the community. The lodging tax is administered by the Minnesota Department of Revenue as per Ordinance No. __________. It shall be the responsibility of the owner and STR-permit holder to ensure that all lodging taxes are paid as required by the Minnesota Department of Revenue. VI. DISORDERLY CONDUCT: Disorderly Conduct Prohibited: Disorderly conduct is prohibited on all permitted premises. It shall be the responsibility of the owner to ensure that all tenants occupying the permitted premises and their guests conduct themselves in such a manner as not to cause the permitted premises to be disorderly. For purposes of this Section, disorderly conduct includes but is not limited to, a violation of any of the following statutes or ordinances: 1. Minn. Stat. §§ 609.75 – 609.76, which prohibit gambling; 2. Minn. Stat. §§ 609.321 – 609.324, which prohibit prostitution and acts relating thereto; 3. Minn. Stat. §§ 152.01 – 152.027, which prohibit the unlawful sale or possession of controlled substances; 4. Minn. Stat. § 340A.401, which prohibits the unlawful sale of alcoholic beverages; 5. Minn. Stat. § 340A.503, which prohibits the underage consumption of alcoholic beverages; 6. Minn. Stat. § 609.595, which prohibits damage to property; 7. Minn. Stat. §§ 97B.021, 97B.045, 609.66-609.67, and 624.712-624.716, and City Code Section 804, which prohibit the unlawful possession, transportation, sale, or use of a weapon; 8. Minn. Stat. § 609.72, which prohibits disorderly conduct, when the violation disturbs the 44 peace and quiet of the other occupants of the permitted premises or other surrounding premises; 9. Minn. Stat. § 152.027, subd. 4, which prohibits the unlawful sale or possession of small amounts of marijuana; 10. Minn. Stat. § 152.092, which prohibits the unlawful possession or use of drug paraphernalia; 11. Minnesota State Fire Code 302 and 307-307.5, which limit recreational fires to no larger than 3' X 3' feet, natural wood only, attended until extinguished, conditions permitting; and 12. Minn. Stat. §§ 624.20-624.21 which prohibits exploding fireworks. Determination of Disorderly Conduct: 1. A determination that the permitted premises has been used in a disorderly manner as described in Article VI shall be made by the Building Official upon evidence to support such a determination. It shall not be necessary that criminal charges are brought to support a determination of disorderly use, nor shall the fact of dismissal or acquittal of such a criminal charge operate as a bar to adverse permit action under this Section. 2. Upon determination by the Building Official that a permitted premises was used in a disorderly manner, as described in Article VI, the Building Official shall notify the owner and agent by certified mail of the violation and direct the owner and/or agent to take appropriate action to prevent further violations. 3. If a second instance of disorderly use of the permitted premises occurs within one year of an incident for which notice in Article VI was given, the Building Official shall notify the owner and agent by certified mail of the violation and shall also require the owner and agent to submit within 15 days a written report of the actions taken, and proposed to be taken, by the owner and/or agent to prevent further disorderly use of the permitted premises. 4. If a third incident of disorderly use of the permitted premises occurs within one year after the second of any two previous instances of disorderly use for which notices were sent to the owner and agent pursuant to this subsection, the short-term rental permit may be revoked, suspended, or not renewed. An action to revoke, suspend, or not renew a permit under this Article VI shall be initiated by the Building Official in the manner described below. VII. PERMIT SUSPENSION OR REVOCATION: Procedure: 1. Every short-term rental permit issued under this Section is subject to suspension or revocation by the City Administrator for any violation of this Section or any other ordinance of the City or the law of the state. 2. The Building Official may recommend suspension or revocation of a short-term rental 45 permit to the City Administrator. The City Administrator shall review the recommendation and the reasons supporting the recommendation and may suspend or revoke the permit. The City Administrator shall provide written notice to the owner and agent of the suspension or revocation. The notice shall inform the owner and agent of the right to appeal the decision of the City Administrator to the City Council. 3. Any applicant aggrieved by the suspension or revocation of a short-term rental permit may appeal to the City Council. Such appeal shall be taken by filing with the City Administrator within ten (10) days after date of issuance of the written suspension or revocation notice, a written statement requesting a hearing before the City Council and setting forth fully the grounds for the appeal. A hearing shall be held within thirty (30) days of receipt of the request. Notice of the hearing shall be given by the City Administrator in writing, setting forth the time and place of hearing. Such notice shall be mailed, postage prepaid, to the applicant at his/her last known address at least five (5) days prior to the date set for hearing. Effect of Suspension or Revocation: If a short-term rental permit is suspended or revoked, it shall be unlawful for anyone to thereafter allow any new short-term rental occupancies of the dwelling until such time as a valid short-term rental permit is restored by the City. Effect of Revocation: No person who has had a permit revoked under this Section shall be issued a short term rental permit for one year from the date of revocation. VIII. APPEAL The decision of the City Council to deny, suspend, or revoke a short-term rental permit following a hearing as provided can be appealed by petitioning the Minnesota Court of Appeals by a writ of certiorari. IX.POSTING The following language shall be posted at or near the entrance of every short term rental dwelling unit. The posting shall be printed in a minimum 18 point font. All short term rental of dwelling units shall comply with this ordinance. These posted regulations are a summary of a portion of the short term rental regulations. For additional information please refer to Ordinance No. ______ or contact City Hall. ▪No person shall undertake the short-term rental of any dwelling unit without a City permit. ▪A copy of the lease shall be available at the dwelling unit at all times during the lease term. ▪Every permitted premises shall have an agent within 30 miles available during all times the unit is rented, 24 hours a day at the following phone numbers: and/or to respond immediately to complaints and contacts relating to the dwelling unit. ▪The Maximum Overniqht Occupancy for this dwelling unit is: occupants. Not counting children under three (3) years of age. 46 ▪No watercraft shall be permanently or temporarily placed or stored within the side yard setback of the permitted premises. ▪Disorderly conduct is prohibited. All disorderly conduct will be reported to the property's agent and the La Crescent Police Department. ▪Increased noise regulations are in place between the hours of 10 p.m. and 7 a.m. ▪Littering is prohibited. ▪Recreational fires are limited. Please check with the City to determine what prohibitions exist for current conditions. ▪Any violation of this Section shall constitute a misdemeanor. X.Compliance If the City has reason to believe that any provisions in this Section are not being complied with, the City has the authority to require the submittal of an executed lease or other information needed to establish compliance. XI. PENALTY Any person who undertakes or allows any violation of this Section shall be guilty of a misdemeanor and shall, upon conviction thereof, be punished by a fine or by imprisonment, or both, in accordance with the provisions of Minnesota State Statutes. 47 48 Mille Lacs County Short-Term Rental License Ordinance October 4, 2022 2 Revised March 19th, 2024 ARTICLE TWO: GENERAL PROVISIONS 201 DEFINITIONS: Unless specifically defined, words or phrases used in this ordinance shall be interpreted to give them the same meaning they have as defined in Minnesota Statutes and give this ordinance it’s most reasonable application. For the purpose of this ordinance, the words “must” and “shall” are mandatory and not permissive. All distances, unless otherwise specified, are measured horizontally. BEDROOM: An area that is (A) – a room designed for sleeping; or (B) – a room or area of a dwelling that has a minimum floor area of 70 square feet with access gained from the living area or living area hallway. Architectural features that affect the use as a bedroom under this item may be considered in making the bedroom determination. OWNER: Owner means the property owner or a person who has written designation to act on behalf of the property owner. SHORT-TERM RENTAL: Any home, cabin, condominium or similar building that is advertised as, or held out to be, a place where sleeping quarters are furnished to the public on a nightly, weekly, or less than thirty (30) day time period and is not a bed and breakfast, resort, planned unit development whose legal documents regulate unit rentals, hotel, or motel. SSTS: “Subsurface Sewage Treatment System” is either an individual SSTS as defined in Subpart 41 of rule 7080.1100 or a midsized SSTS as defined in Subpart 4 of rule 7081.0020, as applicable. ARTICLE THREE: ANNUAL LICENSE REQUIRED 301 LICENSE REQUIRED. No short-term rental may be operated without a valid Short- Term Rental license issued pursuant to this Ordinance. 302 ENACTMENT. All new Short-Term Rental operations as of the enactment date of this Ordinance shall obtain a license from the County prior to commencing operations. 303 SEPARATE PARCELS. A separate Short-Term Rental license is required for each unit on a parcel that has Short-Term Rental operations conducted in it. 304 ANNUAL LICENSE. All Short-Term Rental licenses are an annual license and must be renewed by January 31st each year. License renewal applications for rental operations in the following year must be submitted prior to any rental activity. 305 PROPERTY ACCESS. The Owner shall permit access to the property and all permitted units at any reasonable time for the purpose of inspection upon request by Mille Lacs County. 49 Mille Lacs County Short-Term Rental License Ordinance October 4, 2022 3 Revised March 19th, 2024 ARTICLE FOUR: LICENSE APPLICATION REQUIREMENTS 401 APPLICATION REQUIREMENTS. The following information shall be provided to the County on the Short-Term Rental license application: (A) The name, mailing address, email address and telephone number of the owner of the Short-Term Rental home for which the license is to be issued. (B) Physical address and parcel identification number. (C) All other information that is requested on the Short-Term Rental License application. (D) No application for initial or renewal license will be accepted if there are any past due property taxes or record of a violation with the Mille Lacs County Zoning Office on the property described in the license application. 402 APPLICATION PROCESS. Applications for Short-Term Rental licenses may be filled out online at the County’s permitting website. Once the application is received, along with supplemental information and payment of fee, Mille Lacs County will issue or deny the license in accordance with the timelines established under Minnesota Statute 15.99, during which time the County may contact the Owner for additional information. If the permit is denied, written communication will accompany the denial explaining the reasons for the denial, and the Owner may reapply once the conditions surrounding the application denial are corrected. ARTICLE FIVE: GENERAL REQUIREMENTS 501 SEPTIC/SOLID WASTE: (A) The Short-Term Rental must be connected to an approved SSTS, or served by a central sanitary sewer system. (B) A valid Certificate of Compliance, which is a certificate that was issued on a new septic system installed within the past five (5) years, OR a copy of a compliance inspection form which was performed within the past three (3) years. Rental units being serviced by a holding tank are required to submit monthly pumping reports to the County. (C) At least once every three (3) years thereafter the Owner shall provide an updated certificate of septic testing showing that the system is compliant for the number of bedrooms indicated in the application. (D) Disposal of solid waste must comply with Mille Lacs County Solid Waste Ordinance, or its successor or replacement. 50 Mille Lacs County Short-Term Rental License Ordinance October 4, 2022 4 Revised March 19th, 2024 (E) Garbage, refuse, or recycling shall be stored completely enclosed within designated refuse containers. The owner or operator of the rental unit shall provide sufficient trash storage containers and service to accommodate the demand of the occupants. 502 OCCUPANCY. (A) The overnight occupancy of a Short-Term Rental shall be limited to no more than four (4) people per bedroom plus one (1) additional person per unit. (B) Use of recreational vehicles, tents, accessory structures or fish houses to obtain additional occupancy is prohibited. (C) The licensee shall not advertise the property as containing any more than the number of bedrooms identified on the license. (D) The licensee shall not advertise the property as available to more guests than the occupancy limit defined on the license. 503 NOISE. Quiet hours are between the hours of 10 pm to 7 am, Sunday through Thursday; and 12 am to 7 am, Friday and Saturday. The owner of the Short-Term Rental is expected to enforce this rule. Failure to do so may result in enforcement action as provided in Section 6. 504 PARKING. Parking cannot restrict access by emergency vehicles or the traveling public and shall not impede any ingress or egress of property owner. In addition, parking cannot encroach neighboring properties. 505 PROPERTY CONTACT INFORMATION. The Owner shall keep on file, with the County, and shall notify each renter, in writing, of the contact information for the Owner who shall be available 24 hours a day, seven (7) days a week, whenever the property is being rented for Short-Term Rental purposes. The Owner shall respond to any issue or complaint raised within one (1) hour of any such point of contact being notified of the issue or complaint. Property contact information shall be accessible to the public 24/7 on the Mille Lacs County website. 506 LICENSE FEES. License fees will be established by the Mille Lacs County Board of Commissioners and published in the County Fee Schedule. 507 MINNESOTA DEPARTMENT OF HEALTH LICENSE. It is the Owner’s responsibility to contact the Minnesota Department of Health about lodging license requirements. Proof of this lodging license is required with the Mille Lacs County Short-Term Rental license application. 508 LICENSE TRANSFER The Short-Term Rental license shall not be transferrable upon any change in ownership of the licensed property, or otherwise. 51 Mille Lacs County Short-Term Rental License Ordinance October 4, 2022 5 Revised March 19th, 2024 ARTICLE SIX: ENFORCEMENT 601 ENFORCEMENT. Mille Lacs County will investigate all complaints and alleged violations of this Ordinance. Mille Lacs County will follow up with all Owners and Complainants within a reasonable period of time. The Owner shall address any substantiated complaints/violations as directed by Mille Lacs County. All substantiated complaints/violations not resolved as directed will result in enforcement action as provided in Provision 604. 602 REVOCATION. If three (3) substantiated complaints/violations have occurred at a Short-Term Rental unit within one year, the license may be subject to revocation as determined by Mille Lacs County. 603 FALSE REPORTING. The intentional false reporting of a violation of this ordinance shall be considered a violation of this ordinance. The penalty for intentional false reporting of a violation will be $100.00 for a first offense, $150.00 for a second offense, and $1,000.00 for a third or subsequent offense. 604 FAILURE TO COMPLY. Any Owner who fails to comply with a directive of Mille Lacs County as provided in Provision 601; or who violate, disobey, omit, neglect, refuse to comply with, or who resist enforcement of any of the provisions of this Ordinance may be subject to Misdemeanor prosecution, forfeiture of their license, or both. 605 REVOCATION PERIOD. Any license revoked under this section will not be reissued for a period of one (1) year from the date of revocation. SECTION SEVEN: APPEALS 701 APPEALS. Appeals from any order, requirement, decision, or determination regarding this ordinance shall first be made to the County Administrator. 52 53 Mille Lacs County Short-Term Rental License Ordinance October 4, 2022 7 Revised March 19th, 2024 AMENDMENTS Approved by Board Amendment Document Number March 19th, 2024 Section 701 A440687 54 1 CITY OF STILLWATER WASHINGTON COUNTY, MINNESOTA AN ORDINANCE AMENDING SECTION 41-8 OF THE STILLWATER CITY CODE REGARDING SHORT TERM HOME RENTAL REGULATIONS The City Council of the City of Stillwater does ordain: SECTION 1. REPEAL AND REPLACE. Stillwater City Code Chapter 41-8 regarding short term home rental regulations is hereby repealed and replaced as follows: Sec. 41-8. – Short term home rental dwelling units. Subd. 1. Purpose. It is the purpose of this section to protect the public health, safety and welfare of those who stay in short term rental dwelling units by adopting a rental dwelling license program. The operation of rental properties is a business enterprise that includes certain responsibilities. Rental owners, operators and managers are responsible to take such reasonable steps as are necessary to ensure that the guests who occupy such rental dwelling units, as well as neighboring properties, may pursue the quiet enjoyment of the normal activities of life in surroundings that are safe, secure, and sanitary, free from noise, nuisances and annoyances, and free from unreasonable fears about safety of persons and property. Subd. 2. Definitions. Words used in this section shall have the following meanings unless otherwise defined in this section. (1)City Inspection Report means a rental dwelling inspection report prepared and signed by the fire department and building department. (2)City Administrator means the Stillwater City Administrator or designee. (3)Operator or Manager means any person who has charge, care or control of a rental dwelling unit. (4)Owner or Licensee means any person agent, operator, firm or corporation having a legal or equitable interest in the property or recorded in the official state, county or city records as holding title to the property or otherwise having control of the rental dwelling unit property. (5)Person means an individual, corporation, firm, association, company, partnership, organization or any other group acting as a unit. (6)Reinspection means a follow-up city inspection that is: a.Conducted to determine if a code violation has been corrected; b.Necessary because a licensee, owner or other responsible party fails to attend a scheduled inspection; c.Necessary because a scheduled inspection does not occur or is prevented from occurring due to an act of a property owner or agent; or 55 2 d.Any inspection following an initial inspection. (7)Rental Dwelling means any dwelling used for residential occupancy by one or more persons who are not the owner. (8)Rental Dwelling Unit means any room or rooms, or space, in any rental dwelling designed or used for residential occupancy by one or more persons who are not the owner. (9)Short Term Home Rental means a rental dwelling or rental dwelling unit that is offered to transient guests for a period of less than 30 consecutive days. Subd. 3. License Required. (1)General Rule. No person, partnership, business entity, or corporation shall operate a short term home rental dwelling or rental dwelling unit in the city without a license. (2)City council action. Upon receipt of a completed application, the City Council may take any of the following actions on new license applications: a.Approve the license; b.Deny the license; c.Approve a provisional license; d.Approve the license with reasonable conditions; or e.Continue the license application for good cause. (3)Applications. The license application must be submitted on a form provided by the city and must include all the information requested on the application form, in addition to the following information: a.Property Owner Information. i.The name, address and complete information of the property owner, if the property owner is an individual, including social security number. ii.The name, address and complete information of at least one officer, manager or director, if the property owner is a business entity, including the name of the business entity, the state of formation, the applicants federal tax identification number and state employer identification number. b.Property contact information. The applicant must provide 24-hour contact information for one person in any of the following categories: i.At least one owner of the rental dwelling or rental dwelling unit; or ii.At least one person, if different from the owner, who is responsible for compliance with this and any other code requirement pertaining to the rental dwelling or rental dwelling unit, such as a property manager, who must reside in the Twin Cities 7-County metropolitan area or is able to respond to complaints within 60 minutes or less; or iii.Any of the owner’s agents responsible for management of the rental dwelling or rental dwelling unit, such as a property management company 56 3 and the name and contact information of a person at the property management company; or iv.Any vendors and all vendees, if the rental dwelling or rental dwelling unit is being sold pursuant to a contract for deed. The City Clerk must be notified in writing of any changes to the name(s) provided on the application. c.Insurance. The licensee must provide proof of sufficient and suitable insurance with the license application. d.Inspection report. The application must be accompanied by a satisfactory city inspection report signed by the fire department and building department. A property owner or agent is required to be onsite during the scheduled inspection. A property owner or agent may cancel or re-schedule an inspection no less than 24 hours of the scheduled inspection time or a re-inspection fee will apply. The inspection must have been completed no more than 60 days prior to submission of the license application. If the inspection identifies items that must be corrected, all corrections must be completed and verified by the city before the license will be considered. e.License fee. The application must be accompanied by payment in full of the required license fee. The license application fee will be determined by the City Council and listed in the city fee schedule. (4)Background Investigations. a.For all new applications, a background investigation will be conducted on the property owners and managers listed on the application, consistent with Minn. Stat. §299C. The city may request additional information from the license applicant regarding all property owners, if the property is owned by individuals or regarding all officers, managers or directors, if the property is owned by a business entity, and may conduct additional background investigations as it deems necessary. The applicant shall pay a background investigation fee for each background investigation conducted. b.For renewal applications, background investigations are not required and no background investigation fee shall be required, however, the Police Department may conduct a background investigation at its sole discretion, with consent of the applicant. (5)Changes in ownership. A license is non-transferable. If there is a change in the ownership of the rental dwelling or rental dwelling unit, a new license is required. (6)License term. The term of the license is three (3) years. (7)Renewal applications. Renewal applications shall submit and comply with all of the requirements of a new application, except for the background investigation. If all the requirements are met, no changes have been made on the application since the previous application, a satisfactory inspection report is submitted, and there have been no violations of this ordinance in the previous 3 years, renewal applications may be approved administratively by the Community Development Department. 57 4 (8)Guest register. As a condition of the license, the applicant must, as a continuing obligation, maintain a current register of guests and other persons who have a lawful right to occupancy of rental dwellings or rental dwelling units. In its application, the applicant must designate the name of the person or persons who will have possession of the register and must promptly notify the City Administrator or designee of any change in the identity, address or telephone numbers of such person. The register must be available for inspection by city officials at all times. (9)Display of license certificate. The license certificate must be exhibited in a conspicuous place at or near the entrance to the rental dwelling or rental dwelling unit. Subd. 4. Exemptions. This section does not apply to and no license is required for the following: (1)Hotels (2)Motels (3)Bed and breakfasts, which are subject to requirements in City Code section 31-504 (4)State-licensed residential care facilities (5)Nursing homes Subd. 5. Rental license caps for short term rental licenses. For all zoning districts where short term rental dwelling or dwelling units are allowed, no more than 50 licenses shall be approved in total. The rental cap restrictions imposed by this section does not apply to the Central Business District, as long as the licensee can meet all other conditions of this ordinance. Subd. 6. Performance Standards. All rental dwelling or rental dwelling units shall be subject to the performance standards identified below. (1)Zoning. Short term home rentals shall only be allowed in specific zoning districts as identified in City Code section 31-315 (allowable uses for residential zoning districts) and section 31-325 (allowable uses for non-residential zoning districts) (2)Parking requirements. In all zoning districts, including the CBD, all guest parking for a rental dwelling or rental dwelling unit must be on an improved driveways and improved parking surfaces that is located on-site. In addition, the rental dwelling or rental dwelling unit must meet the parking requirements in the applicable zoning ordinance for that use (Chapter 31). For current license holders (as of the date of adoption of the ordinance) that are legal nonconforming in regard to these parking requirements, the license holder may continue to renew the license, but may not expand the use. If the license is discontinued, revoked, suspended or terminated, or otherwise lapses, the license may not be reapproved without meeting the parking requirements herein. (3)Events. Events are not allowed to be hosted by guests on the premises. For purposes of this section 41-8, an event means a gathering on the premises of more than three un-registered guests. Events hosted by the property owner are allowed but must comply with all applicable city ordinances and policies, including the prohibition on renting out private residential property for events. (4)There shall be no change in the exterior appearance of the rental dwelling, rental dwelling unit or premises, or other visible evidence of the conduct of a short term home rental, except that additional on-site city code compliant parking may be provided. 58 5 (5)Maintenance standards. It is the responsibility of the licensee to assure that every rental dwelling or rental dwelling unit is maintained in compliance with all city ordinances and state laws. A violation of any of the following laws and ordinances constitutes a public nuisance: a.Building Code (Chapter 33); b.Animal regulations (Chapter 27); c.Minnesota State Fire Code (Section 23-1, subd. 1); d.Public nuisance regulations (Chapter 38); e.Parking violations (Chapter 51). Subd. 7. Responsibility for acts of manager. Licensees and owners are responsible for the acts or omissions of any manager. Subd. 8. Additional Inspections. The Building Official, Building Inspector, Fire Department personnel, police officers and their respective representatives, are authorized to make inspections reasonably necessary to enforce this ordinance. All authorized inspectors have the authority to enter any rental dwelling or rental dwelling unit at all reasonable times. Each owner of a rental dwelling or rental dwelling unit shall give the authorized city official access to any part of such rental dwelling or rental dwelling unit at reasonable times for the purpose of inspection, maintenance, repairs or alterations as are necessary to comply with the provisions of this ordinance. If any owner, owner’s agent or occupant of a rental dwelling or rental dwelling unit fails or refuses to permit entry to a rental dwelling or rental dwelling unit for an inspection pursuant to this subdivision, the inspector may seek an administrative search warrant authorizing such inspection. Subd. 9. Summary action. (1)Emergency. When the conduct of any owner or owner’s agent, representative, employee or guest, or the condition of the rental dwelling or rental dwelling unit, or the property in or on which it is located, is detrimental to the public health, sanitation, safety and general welfare of the community, or guests of the rental dwelling or rental dwelling unit so as to constitute a nuisance, fire hazard or other unsafe or dangerous condition and thus give rise to an emergency, the Building Official has the authority to summarily condemn or close individual rental dwelling units or areas of the rental dwelling as the Building Official deems necessary. (2)Posted to prevent occupancy. Whenever any rental dwelling or rental dwelling unit is found to be unfit for human habitation under Section 41-8, subd. 9(1), it shall be posted by the Building Official on the door of the rental dwelling or rental dwelling unit, whichever the case may be, to prevent further occupancy. No person, other than the Building Official or their designee, shall remove or alter any posting. The Building Official will post the date the rental dwelling or rental dwelling unit shall be vacated and no person shall reside in, occupy or cause to be occupied that rental dwelling or rental dwelling unit until the Building Official permits it. Subd. 10. License denial, suspension or revocation. Depending upon the circumstances, nature and severity of the violation of any of the above-stated provisions, the City Council may hold a license hearing for consideration of suspension, revocation or conversion to a provisional license, 59 6 if deemed appropriate. Any short term home rental license may be suspended or revoked for one or more of the following reasons: (1)It is the third substantiated and relevant complaint or violation of the ordinance within a 12-month period. (2)The licensee has failed to pay all of the appropriate fees related to the license, or is delinquent on any other city fees; (3)The licensee has made fraudulent statements, misrepresentations, not fully disclosed information or made false statements in the application for or in the course of the licensee’s business; (4)The licensee has been convicted of any crime or offense in the previous five years involving or relating to the short term home rental business and the licensee has failed to show competent evidence of sufficient rehabilitation and present fitness to perform the duties of the business; (5)The licensee has acted in an unauthorized manner or beyond the scope of the license granted. Subd. 11. Violations. A violation of this ordinance is a misdemeanor. However, the city may use alternative enforcement methods, including issuing an administrative citation pursuant to Section 22-10. Subd. 12. Lodging and Sales taxes. In addition to state sales tax, short term home rentals are required to pay the city lodging tax directly to the city on a quarterly basis. The property owner must provide information on a web-based booking service(s) used for the property. If no sales are made during a quarter, a report must be submitted to the city stating that no sales were made or lodging tax collected during that quarter. Subd. 13. No warranty by city. By enacting and undertaking to enforce this section, neither the city, nor its City Council, agents or employees warrant or guaranty the safety, fitness or suitability of any rental dwelling or rental dwelling unit in the city. Owners and guests should take appropriate steps to protect their interests, health, safety and welfare. SECTION 2. SUMMARY PUBLICATION. Pursuant to Minnesota Statutes, Section 412.191, in the case of a lengthy ordinance, a summary may be published. While a copy of the entire ordinance is available without cost at the office of the City Clerk, the following summary is approved by the City Council and shall be published in lieu of publishing the entire ordinance. The ordinance regarding short term home rental regulations has been amended to eliminate the class A, B, C and D licenses. All short term home rentals, except bed and breakfasts, will require a license from the City Council and renewal applications may be administratively approved. The ordinance establishes that no more than 50 licenses will be issued to all zoning districts in which they are allowed, except the Central Business District, which has no cap on the number of licenses. SECTION 3. EFFECTIVE DATE. This ordinance shall be effective after its passage and publication according to law. 60 AN ORDINANCE AMENDING CITY CODE CHAPTER 31, SECTION 31-315 AND SECTION 31-325 REGARDING SHORT TERM HOME RENTAL LICENSE LOCATIONS The City Council of the City of Stillwater does ordain: SECTION 1 AMENDMENT. Chapter 31, Article III, Division 2, Section 31-315 of the City Code, Allowable Uses in Residential Districts, is hereby amended as follows: SECTION 2 AMENDMENT. Chapter 31, Article III, Division 3, Section 31-325 of the City Code, Allowable Uses in Non-Residential Districts - Retail, is hereby amended as follows: SECTION 3 SUMMARY PUBLICATION. Pursuant to Minn. Stat. § 412.191, in the case of a lengthy ordinance, a summary may be published. While a copy of the entire ordinance is available without cost at the office of the City Clerk, the following summary is approved by the City Council and shall be published in lieu of publishing the entire ordinance: The ordinance establishes areas of the City that will allow Short Term Home Rentals to operate. Short Term Home Rentals will be allowed in all residential districts and will be limited to the commercial properties within the Central Business District, Highway Mixed Use District and Neighborhood Commercial Districts. Short Term Home Rentals require issuance of a Short Term Home Rental License from the City Council. SECTION 4 EFFECTIVE DATE. This Ordinance shall be in full force and effect from and after its passage and publication according to law. ALLOWABLE USES ZONING DISTRICTS AP LR CTR RA TR CCR RB CR TH CTH R RCL RCM RCH RR HMU Short Term Home Rentals P P P P P P P P P P P P P P P ALLOWABLE USES ZONING DISTRICTS CA CBD VC BP-C BP-O BP-I CRD PA PWFD PROS HMU NC Re t a i l Short Term Home Rentals P P P 61 Planning Commission Agenda Item 7b MEETING DATE: June 10th, 2024 AGENDA ITEM: 7b Honeybee discussion SUBMITTED BY: Community Development STAFF RECOMMENDATION: Discussion only at this point PREVIOUS PLANNING COMMISSION ACTION: None BACKGROUND INFORMATION: Staff would like input and discussion on regulatory framework to formally allow residents to have honeybee hives in residential areas. The Council held a workshop in May where brief discussion occurred on honeybees with Council interested in supporting ordinance amendments to potentailly permit the use. 1)Determine areas where the use would be appropriate (allowed Zoning districts) a)R-1 Single Family District b)R-2 Two Family District c)R-3 Multi-Family District d)R-4 Townhouse/Patio Home District e)RR Rural Residential District 2)Determine method to allow i)Via license (like an annual rental type license) ii)Via Conditional Use permit iii)Allow outright with no permit or license iv)Don’t allow 3)Definitions a)Define honeybee b)Flyaway barriers c)Hive d)Apiary 4)Limits on the allowed number of hives a)Based on size of lot. Larger lot = more hives b)Rural Residential allowed more than single-family subdivided city lots 5)Other regulations to consider a)Signage 1.Limits on size, type, location, etc. 2.Posting of sign stating the residence keeps hives on the property. Posting of sign in a clear and visually unobstructed location. Signs and verbiage should be similar in design. 62 b)Violations 1.Suspension and revocation 2.Impacts to renewal c)Enforcement (who, what, how, etc.) and Inspections 1.Responsible parties 2.How often inspections are needed 3.What resources are needed and staff time ATTACHMENTS: Sample ordinance language and materials from City of Sartell (please note Sartell did not officially adopt the ordinance so honeybees are still not permitted). Please also see these resources: •The University of Minnesota sampling of City Policies on beekeeping: https://beelab.umn.edu/ordinances •Model Ordinance from MNBeekeepers: https://mnbeekeepers.com/wp- content/uploads/MHBA-Model-Ordinance-2018.pdf REQUESTED PLANNING COMMISSION ACTION: 1.Discussion and input only at this point 63 64 65 66 67 68 69 70 71