Daily Regulatory Notes 09/22/2025
Cities address STRs. Daphne, AL weighs ban; Killeen, TX revisits enforcement on HOT; Garland, TX approves rules; Elgin, IL cracks down rentals; Portsmouth, VA drafts ordinance. READ MORE.
Lake Forest’s HOA is weighing a ban on short-term rentals, but owners are fighting back, saying crime and safety concerns are being exaggerated.
A police review of STR-related calls showed only a handful of minor issues over the past year, undermining claims that STRs are linked to drugs or squatters. Others noted the lack of transparency saying they learned of the proposed amendment too late or received no response to questions. The HOA board says it is still drafting changes, with no date set for a vote.
The city of Killeen has cut its arts funding by more than half, citing shortfalls in hotel occupancy tax collections linked to short-term rental operators who have fallen short on remitting taxes.
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The Arts Commission’s share dropped from $305,200 last year to $125,000 for 2026, a reduction city officials say stems from declining hotel stays, the absence of federal relief dollars, and challenges in tracking STR contributions. While the commission is authorized to receive up to 15% of hotel tax revenue, only 7% was allocated this year, leaving local arts groups scrambling with partial grants. Vive Les Arts Societe will receive the largest share at $76,202, while last year’s top grantee received nothing.
Garland has joined the growing list of North Texas cities tightening rules on short-term rentals, with new regulations now requiring a 48-hour minimum stay, a $500 annual license fee, annual inspections, proof of liability insurance, and a ban on street parking for guests.
City officials say the changes, approved this month, give them more enforcement tools to deal with problem properties, including the ability to suspend licenses or force repeat violators into compliance agreements. Residents had pressed for stronger oversight, citing frequent complaints about parking violations and disruptive gatherings, while officials noted the longer minimum stay is designed to discourage one-night party rentals.
Elgin officials are cracking down on short-term rentals after discovering 12 properties operating without the required special use permits or remitting state-mandated hotel occupancy taxes.
At the September 16 council meeting, staff said they will notify owners and guide them through the compliance process, noting no major pushback so far. The Planning and Zoning Commission has also asked staff to study how neighboring communities regulate STRs, with findings expected to help shape potential policy adjustments.
City leaders in Portsmouth are drafting their first short-term rental ordinance following mounting safety issues, nuisance complaints, and lost revenue.
At a Sept. 9 session, staff noted most of the city’s Airbnb and Vrbo listings are noncompliant with state law, which only allows owner-occupied rentals by right. Officials are reviewing regional approaches on permits, licensing, inspections, and tax collection to shape local rules. A draft policy is expected back for review in the coming months ahead of a June 2026 vote.
In case you missed it:
Genelaine Urbano
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