Daily Regulatory Notes 08/13/2025
Cities address STRs. New Hampshire files lawsuit; Grand Haven, MI approves zoning change; Youngstown, NY advances regulations; Talbot County, MD reviews proposed rules; Avalon, CA introduces ordinance; Atlanta, GA reviews enforcement; Pittsburgh, PA weighs down rules. READ MORE.
New Hampshire
A California couple and a New Hampshire property owner have filed a federal lawsuit challenging the Kearsarge Lighting Precinct’s ordinance requiring short-term rentals to be owner-occupied.
The plaintiffs argue the rule violates the U.S. Constitution’s dormant Commerce Clause and Privileges and Immunities Clause by effectively barring out-of-state owners from competing equally in the local STR market. Under the ordinance, owners—or adult family members—must stay overnight in the property during each rental under 30 days, a rule the plaintiffs say discriminates against nonresidents. The suit comes after KLP warned the California owners they faced daily civil penalties for noncompliance, and follows a recent state court ruling upholding the owner-occupancy requirement against another couple.
Grand Haven’s City Council has unanimously approved a zoning change that would allow short-term rentals by special land use in the Centertown Overlay of the Neighborhood Mixed-Use District, opening the door for 23 more parcels to become eligible.
While officials had earlier considered permitting STRs by right, they opted for a more controlled approach requiring applicants to seek approval and follow existing rules. Key requirements include meeting parking standards and keeping all first-floor space on Washington Avenue and Seventh Street fully commercial, effectively limiting rentals to upper floors. The city currently has about 350 short-term rentals in operation.
After years of moratoriums and study, Youngstown is moving closer to finalizing its first set of short-term rental regulations, with a vote possible as early as Aug. 21.
The draft rules—introduced at a July 17 public hearing—would limit STRs to the Commercial District, mainly near Lockport and Second streets, while grandfathering in existing rentals outside that zone for current owners only. Properties could host no more than two guests per bedroom plus two additional people and would be prohibited from being rented for events like weddings or parties. The proposal also bans STRs in multi-family buildings or those under affordable housing agreements and calls for an annual per-parcel fee, currently suggested at $100, to cover compliance.
Talbot County’s Planning Commission has dramatically scaled back a proposed rewrite of the county’s short-term rental rules, setting up a new round of debate when the legislation returns to the County Council.
In a unanimous vote, the commission recommended eliminating several controversial provisions pushed by council members Lynn Mielke and Pete Lesher, including a seven-night minimum stay in certain districts, mandatory landlines, detailed occupancy logs, and a two-tier licensing system tied to primary residence. The commission’s edits also reduce some regulations, such as allowing more time—60 days—for license renewal applications. Current rules require property owners to get initial approval from a review board, then renew after one year and every two years thereafter.
Avalon’s City Council has unanimously introduced an updated short-term rental ordinance, ending its recent moratorium and introducing a cap of 410 units, including existing licenses, CUPs, and grandfathered properties.
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The proposal sets steep fines for violations tied to public health and safety—$1,500 for the first offense, $3,000 for the second, and $5,000 for the third—while lesser infractions carry smaller penalties. Other changes include requiring owners to attend licensing hearings in person or virtually, respond to complaints within 30 minutes, and encourage at least 10 annual uses to meet California Coastal Commission access goals. Repeat violations—three adjudicated offenses—could lead to permanent license or CUP revocation, though new owners may reapply.
Atlanta’s Landmark condominium has become the epicenter of a years-long battle over short-term rentals, with residents, investors, and city officials deeply divided over the building’s future.
Councilmember Michael Julian Bond is pushing an ordinance that would cap STRs at 10% in condo buildings, but repeated delays have left residents frustrated by the city’s lack of enforcement. Longtime owners say the Landmark now feels like a hotel, with only about 20 full-time residents left out of 200 units, and rising HOA fees, special assessments, and reduced amenities driving them out. Investor-owners argue STR income is keeping the financially strapped building afloat, but critics accuse the HOA board—dominated by non-resident owners—of mismanagement.
Pittsburgh is weighing new short-term rental rules that would limit operators to living within 25 miles of their properties and cap the number of units they can manage, with stricter limits for smaller buildings.
Introduced by Councilmember Deb Gross, the bill targets concerns over disruptive behavior, housing loss, and absentee landlords, especially corporate investors running “scattered site hotels.” Out-of-state owners would need local property managers and a zoning permit before getting a license.
In case you missed it:
Genelaine Urbano
READ: Daily Regulatory Notes 08/12/2025
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