Daily Regulatory Notes 11/25/2024
INSIDE: Short-term rental regulations are tightening across the U.S., with Ithaca, NY, and Gulf Breeze, FL, introducing new rules. Dexter Township, MI, is studying zoning changes, and Glens Falls, NY, plans a five-year phase-out for unhosted rentals. Summit County, UT, is evaluating policy changes.
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. 📰
Ithaca, NY
During its November 20 meeting, the Ithaca Common Council reviewed the progress on short-term rental regulations passed earlier this year. The rules aim to address the growing number of vacation rentals displacing long-term housing for residents.
- ```Alderperson David Shapiro highlighted the council's goal of limiting this trend to preserve community integrity.
“What we thought was happening in Ithaca [was] too many homes were being rented out as vacation rentals and not [to] the people living here in our community. We implemented a lot of regulations to limit that from happening.” Alderperson David Shapiro said. The Cornell Daily Sun
Megan Wilson, deputy director of planning and development, announced plans to educate rental owners through letters before stricter enforcement begins in June 2025. Violators could face fines of up to $500 daily if noncompliance persists. Applications for rental permits will open in January 2025, allowing operators to meet compliance requirements ahead of stricter enforcement.
A look into the ordinance: ORDINANCE NO. 2024-01
Dexter Township, MI
Dexter Township is taking significant steps to address short-term rental (STR) concerns by forming a study committee to explore legal and regulatory options. These include potential amendments to its zoning ordinance, which currently prohibits STRs except for bed-and-breakfasts.
Check out the proposed ordinance here.
At its November 19 meeting, the Board of Trustees approved the committee's formation and a temporary suspension of enforcement actions against STR operators, except for nuisance-related violations.
```The decision follows an October 22 Planning Commission meeting that drew over 50 attendees with mixed opinions on STRs, stemming from a neighbor's complaint about a historically used STR property.
Gulf Breeze, FL
The City of Gulf Breeze held a public hearing on a proposed ordinance requiring short-term rental owners to register their properties, sparking mixed feedback from the community.
```The ordinance mandates annual registration with a $40 fee per unit, limits occupancy to two people per bedroom over 100 square feet, and requires safety information and emergency contacts to be posted in rental units.
Check out Ordinance 05-2024 here.
Mayor Cherry Fitch explained that short-term rentals operate as businesses and need regulation to protect the community, while Fire Marshal Gabe Johnson emphasized safety as his top concern. Director of Community Services Craig Carmichael noted the registry would improve enforcement of city ordinances and respond to complaints about trash and noise violations.
"The way the current laws stand now, local governments cannot limit the frequency of our minimum duration of short-term rentals. Local governments can impose safety, sanitation and other public health issue regulations but cannot selectively enforce these against short-term rentals," said Carmichael. Gulf Breeze News
Critics, however, argued the ordinance does little to prevent disruptions caused by vacation rentals and unfairly imposes restrictions that don’t apply to long-term rentals.
Glenn Falls, NY
The finalized draft rules for short-term rentals in Glens Falls will head to the Common Council on Nov. 26, with a public hearing scheduled for Dec. 10.
```The draft includes zoning restrictions, distinctions between hosted and non-hosted rentals, and a five-year sunset period for non-hosted rentals in R1 and R2 residential zones, allowing landlords time to comply with the new rules.
Catch the livestream of the meeting on Glen Falls' YouTube channel.
Some residents expressed concern that the five-year window is too short to recover investments in rental properties. Permit fees are set at $150 for hosted and $300 for non-hosted rentals, with no additional city occupancy tax planned for now. The council will gather community input during the hearing before moving forward.
Summit County, UT
Summit County, home to the largest share of Utah’s short-term rentals (STRs), is grappling with the dual impacts of STR growth on housing affordability and community character.
Check out Summit County's current Short-Term Rental regulations.
According to a Kem C. Gardner Institute report, STRs have surged nearly 40% since 2021, with Summit County leading the trend as 23.8% of its housing stock is now STRs. Officials like Jeff Jones and Peter Barnes warn that STRs inflate housing prices, divert homes from long-term use, and reduce neighborhood cohesion.
“There is a direct correlation between the number of short-term rental licenses being issued and housing prices and affordability. When housing becomes an investment, prices rise, and we’re already in a very tricky market. We’re making housing affordability harder for those people who need long-term rental units. It’s an increasingly popular form of property investment, which has implications for all of us as a society. I don’t think we really know how to deal with it yet.” Peter Barnes said. The Park Record
While Summit County currently only requires business licenses for STRs, discussions are underway about potential regulations, inspired by models like Palm Springs, which limits STR licenses. The county plans further research to assess STR locations and numbers before considering stricter policies.
Park Township, MI
An Ottawa County judge recently ruled in favor of Park Township, dismissing a lawsuit from short-term rental owners seeking to overturn the township’s ban on vacation rentals in residential areas.
The plaintiffs had argued that the township's zoning amendments were improperly applied to short-term rentals. However, the judge found that the township had lawfully amended its ordinances in March 2024 to prohibit short-term rentals in all but one commercial district.
"When (the) defendant properly amended the zoning ordinance in March 2024, the entire posture of this case changed," Hulsing wrote in the opinion. "In reality, there is no longer a legally recognized dispute before the Court." Crain's Grand Rapids Business
With the case now deemed moot, the judge ruled that any exemption requests must go through the township's zoning board of appeals.
Learn more about Park Township's Short-Term Rental use here.
Burlington, VT
Superior Court Judge Samuel Hoar ruled in favor of Burlington’s short-term rental regulations, affirming that the city has broad authority to impose such rules. The regulations in question include requirements that property owners must live on-site and impose fines for violations.
“The relationship between a lack of available long-term housing and strains on the housing market, with impacts on homelessness, is intuitive, as is the consequent impact on a municipality’s general welfare,” Hoar said in his decision. “Thus, the City’s regulation of short-term rentals bears an obvious and rational relation to public welfare, health, and safety.” Vermont Public
The lawsuit contended that these restrictions did not serve the purposes of promoting public health, safety, and welfare as allowed under state law. However, Hoar ruled that Burlington’s regulations are a valid response to the city's housing crisis, aiming to free up more long-term rental units.
Check out the full Ordinance here.