Daily Regulatory Notes 02/10/2025
Cities address STRs. Myrtle Beach, SC handles lawsuit; West WIndsor, VT reviews ordinance; Los Angeles, CA discusses price gouging; New Orleans, LA reviews law; Nevada City, CA schedules meeting; Ocean City, MD enacts moratorium; Kentucky introduces a bill; Massachusetts enforces law. READ MORE.
Every day, we bring you a detailed overview of recent news and updates about primary decisions, community feedback, or legislative changes relevant to the short-term rental industry. đź“°
Myrtle Beach, SC
MBSC Property South has filed a lawsuit against Myrtle Beach alleging the city’s short-term rental overlay illegally blocks the conversion of vacation rentals into long-term housing.
The company which invested over $16 million in 169 condos for workforce housing argues that the city’s restrictions are an unconstitutional use of zoning power and a violation of property rights under South Carolina law. The lawsuit claims the policy benefits the city’s tourism industry at the expense of affordable housing and seeks to have the overlay overturned. Myrtle Beach officials have yet to comment.
West Windsor, VT
West Windsor’s short-term rental ordinance faces a potential repeal vote at Town Meeting on March 4 after a petition from rental owners seeking more discussion on the issue.
Read the full ordinance here.
The ordinance originally approved by the Selectboard in September would require licensing, annual fees, and compliance with state safety standards with fines of up to $800 per day for violations. If repealed, the town will have to revisit the issue, but if upheld, the rules will take effect May 1.
```Los Angeles, CA
According to a report from Better Neighbors LA, short-term rental prices surged in Los Angeles County following the Eaton and Palisades fires with some Airbnb hosts raising rates beyond the 10% limit set by California’s price gouging law.
The group claims to have documented over 3,200 cases of illegal price hikes prompting calls for city enforcement. L.A. City Attorney Hydee Feldstein-Soto has already taken legal action against mid-term rental operator Blueground, and City Council members are now under pressure to crack down on similar violations in the short-term rental market.
New Orleans, LA
New Orleans’ short-term rental law faces renewed legal scrutiny as a federal appeals court panel questioned its permit cap, live-in operator mandate, and corporate ownership ban.
The ordinance which limits STRs to one per block and requires an on-site operator was designed to comply with a previous court ruling that invalidated an earlier version. A decision is pending and if the law is overturned, city officials have hinted at stricter measures including a potential residential STR ban.
Nevada City, CA
Nevada City officials have scheduled a follow-up meeting on February 10 at 6 p.m. in City Hall to discuss potential updates to the city's short-term rental ordinance.
This meeting builds on an October 21 workshop where residents raised concerns about the increasing number of short-term rentals, their impact on neighborhood character, and local housing availability. City officials are considering ordinance revisions to address community feedback, and public input is encouraged either in person or via email before the meeting.
```Ocean City, MD
Genelaine Urbano
Continuation from Daily Notes 02/04/2025
Ocean City officials have enacted an 11-month moratorium on new short-term rental licenses in single-family and mobile home districts to evaluate the impact of recent regulatory changes.
The emergency ordinance, approved by a 6-1 vote, allows applications submitted before Jan. 28 to proceed and permits license transfers within families in cases of inheritance. The moratorium will be revisited in October to determine future policy direction.
Kentucky
Kentucky lawmakers have introduced Senate Bill 110 which would prevent cities from imposing density limits or requiring conditional use permits for short-term rentals.
Proponents including Airbnb argue that the bill supports tourism by simplifying regulations, while critics warn it would strip local governments of necessary oversight. The debate unfolds as Airbnb faces lawsuits over unpaid hotel taxes to various Kentucky cities, further complicating the ongoing tension between state legislation and local short-term rental regulations.
Massachusetts
Massachusetts’ new law allowing accessory dwelling units (ADUs) by right in single-family zoning districts has officially taken effect enabling homeowners in 350 municipalities to build ADUs regardless of local zoning restrictions.
The law signed by Gov. Maura Healey in August, aims to create up to 10,000 ADUs over five years by permitting internal, attached, or detached units with a maximum size of 900 square feet or half the primary residence’s floor area.