Bulletin - Suffolk County, NY News Today

The North Fork town's draft code would replace a decade-old ban with a 1% per-hamlet cap, a biennial permit lottery, $3,000 minimum fines and a proposed January 2028 start

Bulletin - Suffolk County, NY News Today
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Suffolk County's Southold Moves to Cap Short-Term Rentals at 119 Lottery Permits

The North Fork town's draft code would replace a decade-old ban with a 1% per-hamlet cap, a biennial permit lottery, $3,000 minimum fines and a proposed January 2028 start

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The Town Board of Southold on Long Island's North Fork in Suffolk County agreed at its October 21 Code Committee meeting to cap short-term rental permits at 1% of the housing stock in each hamlet which would allow 119 rentals townwide under a new permit system that replaces the current ban on stays of fewer than 14 nights. Board members called the figure an initial decision, and it settles one of the last open questions before public hearings.


A page from Southold’s proposed short-term rental code outlining changes to existing rental regulations. Source: Town of Southold Draft Code

From a Ban to a Lottery

Southold has prohibited rentals of fewer than 14 consecutive nights since 2015 yet the town estimates that nearly 1,000 operate anyway and in April it began using Rentalscape software to flag unpermitted listings. The draft Article XXXVIII of the zoning code would redefine a short-term rental as any stay under 30 consecutive days and hand out two-year permits only through a random public lottery with no right to renewal and no priority for past applicants.

Southold plans 80% cut in Airbnb-style rentals, permit lottery amid housing crisis - The Suffolk Times
Southold Town leaders backed a plan to severely curtail Airbnb-style rentals amid the North Fork’s housing crisis — with a lottery next fall that would decide which homeowners get permits. The proposal, discussed during a nearly two-hour Code Committee meeting Wednesday, would limit permits to 1% of the single-family homes in each of the town’s…

Each owner could hold one permit and an interest in no more than one short-term rental in town and planners proposed opening applications in June 2027 so the first permits start in January 2028. A companion draft of the accessory apartment rules would also bar accessory units from short-term or seasonal use and allow them to be rented only year-round under a rental permit.

How the 119 Cap Breaks Down

The town’s percentage analysis spreads the permits across nine hamlets from 35 in Southold hamlet down to 2 in New Suffolk with a 2% cap that will allow 239 permits. Planners told the board the program would cost an estimated $643,000 over two years which works out to $5,403 per permit at 1% against $2,690 at 2% and Supervisor Al Krupski said the board landed back on 1% after its review.

Southold’s short-term rental analysis breaks down proposed permit caps by hamlet, allowing 119 rentals under the 1% limit and estimates annual program costs at $321,500. | Source: Town of Southold Short-Term Rental Analysis

The analysis counts only single-family homes while the draft defines the cap by residential dwelling units so the final number could shift once the Planning Department sets the count. Planners said Fishers Island would sit outside the cap, a question the draft still leaves open.

Operator Requirements and Penalties

Owners would first need a standard $300 rental permit with the lottery permit fee left to a later board resolution. Applications must include a parking plan, a waste removal plan, and proof of at least $1 million in liability coverage which platform insurance cannot satisfy while properties on cesspools are ineligible.

Southold Town Zoning Update | Progress Reports

Southold’s official zoning update page provides meeting summaries, proposed code revisions, and supporting documents for the town’s housing and short-term rental regulations. | Source: Town of Southold Zoning Update, Progress Reports.

Listings must show the permit number and an operator must be reachable around the clock and answer complaints within 60 minutes. A first offense would carry a fine of $3,000 to $10,000, a second offense within five years would bring $5,000 to $20,000 and revocation with each week of violation counted separately.

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Compliance Snapshot

⦾ Status: Draft code under Code Committee review; not yet adopted
⦾ Definition: Any rental of less than 30 consecutive days (currently, rentals of fewer than 14 nights are banned)
⦾ Permit cap: 1% of housing stock per hamlet, 119 permits townwide; Fishers Island excluded from the count
⦾ Allocation: Random public lottery every two years; two-year permits with no renewal right
⦾ Limits: One permit per owner; cesspool-served properties ineligible
⦾ Fees: $300 base rental permit (per planners); lottery permit fee to be set by Town Board resolution
⦾ Requirements: Parking plan, waste removal plan, $1 million liability insurance, permit number on listings, 60-minute operator response
⦾ Penalties: $3,000 to $10,000 first offense; $5,000 to $20,000 plus revocation for a second within five years; up to $1,000 for unpermitted occupants
⦾ Proposed timeline: Applications June 2027, lottery fall 2027, permits from January 2028 (the draft text still says it takes effect upon state filing)
👀
What to watch: The Code Committee meets again on November 5 and the Town Board is expected to schedule public hearings later this year and it must still decide on Fishers Island, the lottery fee and the conflicting effective date.

In case you missed it:

Bulletin - Beverly Hills, CA News Today
The City Council voted 4-0 to draft rules letting up to 44 Aman-managed condos rent by the night under a 19% combined tax with a final vote set for November 10
Bulletin - Birmingham, MI News Today
Current licenses expire April 15, 2027 without renewal and city documents describe a single exemption for post-closing occupancy after home sales
Bulletin - Erie, CO News Today
Ordinance No. 035-2026 takes effect October 24 with a one-permit-per-person limit, occupancy caps, a 250-foot separation rule in Old Town and a special event permit for festival periods while voters weigh a 3.5% lodging tax

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