Daily Regulatory Notes 12/19/2024
Cities address STRs: Scottsdale, AZ works on regulations; Saratoga Springs, NY adopts rules; Tisbury, MA considers new policies; South Euclid, OH approves a moratorium; Palm Coast, FL advances its ordinance; Olean, NY enacts occupancy tax; Seabrook, SC votes on new rules. READ MORE.
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. đź“°
Colorado
Genelaine Urbano
Continuation from Daily Notes 12/10/2024...
Policymakers in Colorado are preparing for a potential legislative session in 2025 that may introduce a tax on vacant homes, but short-term rentals (STRs) are now set to be exempt from the proposal.
READ: Senate Bill 24-033
The Colorado Association of Ski Towns announced the decision after discussions with lodging industry leaders, acknowledging that local governments already regulate STRs effectively. The tax would aim to incentivize long-term rentals in areas struggling with affordable housing shortages, with revenues supporting workforce housing and other community needs.
Scottsdale, AZ
New Arizona state laws are set to significantly reduce Scottsdale’s regulatory power over short-term rentals and housing development starting Jan. 1, sparking concerns among city leaders.
The casitas law (HB 2720) mandates that Scottsdale must permit up to three accessory dwelling units (ADUs) on single-family lots, potentially increasing density and enabling more short-term rentals. The adaptive reuse law (HB 2297) allows commercial properties to be converted into apartments without local approval.
Saratoga Springs, NY
Saratoga Springs has adopted new short-term rental regulations with a unanimous 5-0 vote, introducing changes to meet state-mandated requirements. Key updates include no initial cap on licenses, adherence to state insurance requirements, and removal of site plan and septic inspection mandates though owners must inform tenants about septic and parking restrictions.
Read the full regulations here.
Licenses are non-transferable, necessitating reapplication if ownership changes, and property contacts now need to be within 50 miles instead of 25. These regulations coincide with state laws requiring a registry and tax collection.
Tisbury, MA
Tisbury’s special town meeting on Dec. 17 addressed major proposals, including $4.4 million in funding for Vineyard Haven Library renovations and upgrades. The meeting also considered short-term rental regulations that limit properties to 75 rental nights annually, prohibit multiple short-term rental ownerships, and mandate registration with the town.
New accessory dwelling unit (ADU) rules are also on the table, allowing one unit per single-family home with restrictions on size, parking, and rental use.
```South Euclid, OH
South Euclid City Council has approved a six-month moratorium on short-term home rentals following a shooting at an Airbnb property on Felton Road that left three people injured.
STR Moratorium. You can also read it on the file attached below.
The temporary ban, passed during the first council meeting since the incident, halts permits and certificates of occupancy for short-term rentals while officials review local zoning laws. Neighboring cities, including Mayfield Heights and Richmond Heights, have recently passed their own restrictions, while Ohio lawmakers consider HB 563, a bill aiming to create statewide short-term rental standards.
```Lansing, MI
Michigan Representative Joey Andrews expressed disappointment as the Michigan House concluded its session without voting on his proposed legislation to regulate short-term rentals (STRs).
Andrews’ bill aimed to balance community controls with revenue generation for municipalities but was blocked from a vote despite bipartisan support. Andrews accused Tate of catering to the Realtors Association, suggesting Tate's potential Detroit mayoral campaign played a role.
Palm Coast, FL
Genelaine Urbano
Continuation from Daily Notes 12/16/2024...
Palm Coast has advanced an ordinance to regulate short-term rentals, addressing parking, noise, and occupancy concerns in residential neighborhoods.
Approved 4-0 on first reading, the ordinance limits occupancy to 10 people per property and requires short-term rental owners to meet strict licensing and response standards. Background checks are now narrowed to the main renter, with renters certifying their group complies with restrictions.
While owners worry about revenue impacts, city leaders highlighted STRs’ benefits, like boosting tourism revenue in a city with limited hotel options. If passed in a second reading, the rules will take effect March 3, 2025.
Read more about the proposed ordinance here.
Olean, NY
Olean has enacted a 5% occupancy tax on short-term rentals, including hotels, Airbnb properties, and bed-and-breakfasts, effective in 2025. The tax was approved unanimously by the Common Council following the state’s authorization of the measure in Senate Bill S6671.
At least 96% of the revenue generated will support community development, planning, and tourism, with up to 4% allocated for administrative costs. Short-term rentals funded by public assistance will be exempt from the tax.
Rochester, MA
Rochester’s Special Town Meeting in January 2025 will include decisions on housing-related bylaws, including a requirement for short-term rental registration.
Preview of the proposed rules. Read the full regulations here.
Although there’s only one known rental currently listed, the proposed rules aim to mitigate future impacts on neighborhoods and housing prices. A separate vote will address a new bylaw formalizing accessory dwelling units (ADUs), and secondary residences allowed under state law to increase housing options.
```Seabrook, SC
The Seabrook Island Town Council voted on new short-term rental regulations that would introduce caps for the first time. Under the proposed ordinance, 540 short-term rentals would be allowed in the "overlay district" near the beach, encompassing townhomes, condos, and single-family homes, while other single-family residential areas would have a limit of 105.
Preview of Ordinance 2024-06. Read the full ordinance here.
Adjustments made in November include removing the option for legal residents to rent out properties for up to 72 days annually and revising the violation point system to increase penalties for certain infractions.
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