Daily Regulatory Notes 08/14/2025
Cities address STRs. North Carolina enforces legislation; Los Angeles, CA addresses budget shortfalls; Sarasota, FL reviews compliance; Sister Bay, WI discusses court ruling; Lexington, KY; Gary, IN. READ MORE.
North Carolina
North Carolina’s new House Bill 971, effective this month, requires hotels, motels, and vacation rentals to train staff every two years on recognizing and reporting sex trafficking, post awareness signage, and maintain reporting systems.
Noncompliance can result in fines up to $2,000. While many large hotel chains had already implemented similar measures, advocates say the most significant change may be tougher penalties for buyers—making a first offense a felony.
The “Save Our Services” campaign in Los Angeles seeks to address budget shortfalls by allowing short-term rentals of second homes, potentially generating $80 million a year in new tax revenue.
Airbnb is a backer of the initiative but remains absent from campaign materials, which present the plan under the guise of saving city services. Residents already involved in Airbnb rentals say the change could influence future property purchases, while critics, including housing advocates and union representatives, caution that increasing short-term rentals could remove housing from the long-term market and exacerbate the city’s housing crisis.
Sarasota’s push for stricter vacation rental compliance was in focus during an August 7 Code Compliance Hearing, where a New York-based property owner was fined $490 for operating an Airbnb without the required registration.
The violation, first cited in April, led to the listing’s removal, but a delay in reading the notice meant the compliance deadline was missed. City officials acknowledged the owner’s prompt removal of the listing but stressed that timely communication is the owner’s responsibility. The magistrate noted the swift action reduced the penalty, which included a $100 fine and $390 inspection cost, and reminded all operators of the importance of adhering to registration rules.
Pender County commissioners voted 3-2 on July 28 to tighten the county’s noise ordinance, adding dirtbikes to its vehicle definitions and setting a 70-decibel limit measured from a neighbor’s property line at any time of day.
The change follows months of complaints about noise from Salty Acres Adventure Park in Rocky Point, an Airbnb property offering motocross tracks and other outdoor activities. Commissioners updated the ordinance in December 2024 to address vagueness but said further revisions may come after more public input.
STRisker Updates Tracker
How do you keep up with the regulatory rollercoaster in your market? STRisker's Updates Tracker can be your guide - start tracking latest events as they happen and get access to essential documents as they come in. We know the struggle, which is why we built this product to capture every twist and turn in the regulatory saga so you never miss a beat.
At its Aug. 7 meeting, Frisco’s Planning Commission endorsed a revised proposal for “The Glade,” an 11-unit residential project on Seventh Avenue that will include some short-term rentals under tighter controls.
Developers reduced the scale from 19 units to 11, lowered building heights, and dropped a commercial component after months of negotiations with neighbors. The approved plan includes a four-night minimum for STRs, noise and parking restrictions, and HOA-managed enforcement, along with extra guest parking, stop signs at development entrances, and willingness to add “no parking” signs nearby.
A recent court ruling in Sister Bay confirmed the legality of the village’s ordinance limiting short-term rental properties to four bedrooms, rejecting claims from four property owners who argued their sites should be grandfathered in.
The ordinance that was updated last year after months of community meetings and concerns over incomplete applications, violations, and resident complaints, continues to allow homeowners to rent their entire residence but restricts the number of bedrooms used for rentals. While the court upheld the limit, it clarified that owners are not required to lock unused bedrooms, allowing them to be repurposed for non-sleeping uses.
At its August 11 meeting, the Lexington Board of Adjustment reviewed several conditional use permit requests for unhosted short-term rentals in single-family residential zones.
The board unanimously approved a permit for 3853 Plantation Drive with a six-person occupancy limit and also approved 225 Floral Park under four staff-recommended conditions. However, the board denied House and Home LLC’s request for 605 Lane Allen Road due to two existing STRs within the required 600-foot buffer, despite the applicant’s arguments highlighting her spotless operating history and neighborhood support. Board members emphasized that while individual circumstances matter, strict adherence to zoning regulations is essential.
Gary officials approved a new short-term rental permit while hinting at a possible citywide policy review. The 8-0 vote for a Miller neighborhood home prompted Councilman Darren Washington to caution against unchecked Airbnb growth in the 1st District, which he fears could push out residents amid economic growth.
Chief of Staff Ellis Dumas promised strict enforcement against rule-breaking operators and said Mayor Eddie Melton will outline an official stance soon. Council President Lori Latham emphasized that locally managed rentals tend to better maintain their properties compared to corporate-run listings.
In case you missed it:
Genelaine Urbano
READ: Global Regulatory Notes (15)
👍 We’d love your feedback.
Which stories hit? Which ones missed?
We're constantly refining Daily Notes to make it even more useful for you.
✉️ Just reply directly to this email. We read and respond to every message!
-Will McClure
🙋 P.S.
Know someone else who should be reading Daily Notes? Feel free to forward this along. We’re opening a few more spots.