Daily Regulatory Notes 11/18/24

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. 📰

New York, NY

The New York City Council is considering a bill to allow short-term rentals in one- and two-family homes. This would mark a potential reversal of the city’s strict short-term rental laws enacted last year under Local Law 18, which eliminated over 10,000 Airbnb listings. The new proposal, introduced by Councilmember Farah Louis, would permit homeowners to rent their properties for stays under 30 days without requiring the owner to be present, provided they register with the city.

Proponents, including homeowner advocacy groups like RHOAR, argue the measure provides critical income for homeowners facing rising costs, particularly those on fixed incomes. However, tenant advocates and housing activists warn the bill could exacerbate New York’s housing crisis by incentivizing property speculation and reducing long-term rental availability.

The bill, INT 1107:

Portland, ME

Scottsdale is pushing back against Arizona's new "Casita Law" (House Bill 2720), which mandates municipalities allow accessory dwelling units (ADUs) like guest houses for short-term rentals. The Planning Commission has interpreted the law narrowly, using definitions of “vicinity of an airport” to exclude much of Scottsdale from the law’s application. This strategy blocks ADUs in areas near Phoenix Sky Harbor and Scottsdale airports.

Other than this, while the new casitas law states that owners can build and rent ADUs to their description, in a presentation to the Planning Commission, the city also wants to:

“Exclude areas as permitted by State Law
- HOA neighborhoods can privately restrict;
- Require an owner of an ADU that is used as vacation or short-term rental after Sept. 14, 2024, to reside on property;
- Restrict size of multiple ADUs;
- Ensure sufficient water supply and sewer capacity.
- Scottsdale law prohibits “guest houses” from being rented.”

Dana Point, CA

Voters in Dana Point have decided to maintain the city’s existing short-term rental program by defeating Measure T, with 64.1% opposing the proposal. The measure would have replaced the 2022 ordinance with stricter caps on STR permits—tying them to housing stock percentages—and introduced annual permit renewals and a prioritization system favoring homestay rentals.

The current ordinance, which limits permits to 115 within the coastal zone and provides comprehensive oversight of STR operations, remains in effect.

More on Dana Point's Short-Term Rentals.

Saugatuck, MI

'The new ordinances must be declared invalid and the city must follow its charter,' the lawsuit reads. - HollandSentinel.com

Saugatuck’s recently enacted 20% cap on short-term rentals (STRs) in R-1 Residential zones has sparked heated debate and a lawsuit from the advocacy group Saugatuck Neighbors.

The group, formed in August, alleges financial conflicts of interest among city council members who supported the cap, particularly Mayor Lauren Stanton, claiming her property outside R-1 zones could benefit from increased value. While city officials deny the claims, the lawsuit argues the cap significantly impacts property values and rental income potential, and procedural violations occurred during the ordinance’s passage.

Mono County, CA

Measure K's approval will raise the Transit Occupancy Tax (TOT) from 12% to 15%, effective December 13, 2024, applying to all hotel and short-term rental stays, including existing reservations starting on or after that date.

Short-term rental operators are advised to update reservation and payment systems to reflect the higher TOT rate and prepare for revised tax return processes by the year’s end.

Highland Village, TX

During a Nov. 12 work session, Highland Village City Council explored potential short-term rental (STR) regulations reviewing options like requiring property registration, inspections, and implementing a hotel occupancy tax. The city also discussed potential revenue, estimating $15,840 annually from hotel occupancy taxes. The council has yet to decide on the proposed measures.

Check out the full November 12 Agenda Packet:

Lafayette, LA

Lafayette City Council will on Nov. 18 to potentially allow single-family homes and duplexes in the downtown district to operate as short-term rentals. To recall, a city-wide ban on short-term rentals in suburban neighborhoods took effect last October.

If approved, property owners must obtain a $100 annual license by Jan. 31, 2025. Existing homes can convert to short-term rentals, but current zoning prohibits new home or duplex construction downtown.

Saratoga Springs, NY

The Saratoga Springs City Council is set to hold a public hearing on recent proposed short-term rental regulations.

The proposal includes a two-license cap per individual, annual fees ranging from $100 for primary residences to $1,000 for non-primary or commercial properties, and a $1 million insurance requirement,

After some concerns against the impact of the license cap and the required site plan were raised, revisions to the draft include removing criminal penalties for violations, with fines starting at $2,500 for first offenses and increasing for repeated violations. The proposal’s final draft may depend on state-level short-term rental legislation awaiting Governor Hochul’s approval.

Plainview, TX

The Plainview City Council is advancing an ordinance to regulate short-term rentals, requiring owners to register their properties and pay a combined 13% state and city hotel occupancy tax.

Passed on its first reading, the ordinance mandates annual permits costing $100 and compliance with zoning and safety rules, with revocation possible for noncompliance. The measure will undergo a second reading on Nov. 26 and, if passed, take effect in January.