Daily Regulatory Notes 06/24/2025
Cities address STRs. Chicago, IL precinct veto bid; New York, NY sues illegal operator; South Lake Tahoe, CA permit reboot; Kansas City, MO tax reclass; Columbia, SC permit moratorium. 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. 📰
Ald. Anthony Napolitano (41st) proposes letting aldermen bar new short-term rentals precinct-by-precinct: listings would be blocked unless platforms collect signatures from 10 % of precinct voters (≈150–200). The measure mirrors liquor-license powers and responds to party complaints in Edison Park and other O’Hare-area neighborhoods. Existing rentals remain untouched; current law requires residents to petition with 25 % support to impose a ban.
Airbnb calls the plan unconstitutional and says it could drain tax revenue that funds homelessness and domestic-violence programs, noting a 78 % drop in party reports since 2020 and $191 million earned by Chicago hosts last year. Host Jackeline Torres argues a ban would cut income that offsets rising property taxes, while Ald. Jessie Fuentes contends dense clusters in gentrifying East Humboldt Park reduce housing supply, inflate rents, and spark disruptive parties.
The proposal is up for a full Council vote this week.
The County Legislature has passed Ordinance 5987, a short-term rental measure introduced by Legislator Sean Smith to prepare for the 2026 FIFA World Cup. County Executive Frank White Jr. directed the assessor to implement it, reclassifying STR properties from commercial to residential for tax assessment; revised notices will be mailed over time, and 2025 implementation is paused while records are updated.
White blames outdated state tax laws that treat an occasional host the same as corporations operating hundreds of rentals, saying this practice inflates property values, tightens long-term housing supply, and burdens neighborhoods. He urges the County Legislature to revisit the issue before the 2026 tax year and calls on the Missouri General Assembly to modernize statutes to differentiate small-scale resident hosts from large commercial operators, protecting community stability and fairness.
Read Jackson County Executive Frank White, Jr.’s full statement here:
The city has brought its first Local Law 18 lawsuit, accusing Incentra Village House of running 12 illegal short-term rentals in two West Village townhouses. Officials say the operator advertised stays of fewer than 30 days on Airbnb, Booking.com, Expedia/VRBO, TripAdvisor, and its site without registering the units or ensuring an on-site host, as the law requires for buildings with three or more apartments.
Enacted in January 2023, Local Law 18 (Short-Term Rental Registration Law) demands a registration number on all listings; unregistered hosts can be fined up to $5,000 and platforms up to $1,500 per listing. Since then, tens of thousands of illegal listings have vanished and almost 14,000 buildings have joined the city’s prohibited-building list, banning any short-term rentals inside. Citing a 1.4 % vacancy rate, Mayor Eric Adams said the lawsuit shows the city will “flex the muscle of Local Law 18” to safeguard housing stock and hold bad actors accountable.
Columbia City Council has imposed a one-year moratorium on new short-term-rental permits after a deadly Airbnb shooting on Lincoln Street. Approved Tuesday on second reading, the pause lets officials review regulations and address neighbor complaints about trash, noise, parking, and accountability, said Elmwood Park Neighborhood Association’s Robbie Birnie.
Meanwhile, state lawmakers are weighing bills that could set statewide policy. Rep. Lee Hewitt’s proposal would bar local bans, threatening loss of state funds, while a companion bill would create uniform rules—parking, occupancy, a 15–20-minute local contact—and require hosts with three or more rentals to hold a real-estate or property-management license. Hewitt says only “one or two percent” of hosts cause problems. Any law adopted when the General Assembly returns in January could override Columbia’s moratorium.
A vacation-home rental ordinance takes effect July 17, with a 60-day permit window opening June 23. Priority goes to owners whose VHR licenses expired in 2021 and to “qualified” hosts whose permits were voided in April after a judge struck down 2018’s Measure T; applications open to all once the window closes.
The law removes the overall permit cap but adds a 150-ft buffer between rentals and requires in-person or virtual check-ins, 24/7 local contacts, indoor noise monitors, exterior cameras, defensible-space inspections, animal-resistant recycling carts, and stiffer penalties. Occupancy is limited to two people per bedroom, plus up to five children under 13. Permits—now issued by the Police Department—are capped at 150 per month. City staff expect about 480 owners could apply, though the buffer may trim approvals to roughly 325; denials or revocations can be appealed to the Planning Commission.
Last June 17, City Council adopts an ordinance amending the VHR regulations and a resolution to provide an initial application period. READ MORE
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Genelaine Urbano
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