Daily Regulatory Notes 12/30/2024

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. 📰

Citrus Heights, CA

Facing low compliance rates among short-term rental (STRs) operators, the City of Citrus Heights has introduced a new online payment portal to encourage adherence to its licensing and tax regulations. Further, STR operators must hold a $108 annual business license and remit a 12% Transient Occupancy Tax (TOT) on quarterly rental revenue.

The city's online platform simplifies this process by calculating TOT based on reported earnings, which include nightly rates, cleaning fees, and other charges. City officials announced plans to proactively address non-compliance in the coming weeks, aiming to bring the majority of STR operators into compliance after identifying widespread violations.

Kingston, NY

Kingston is grappling with redefining "affordable" and "workforce housing" in its form-based zoning code amidst growing concerns about housing accessibility.

At a public hearing, residents emphasized the urgent need for housing accessible to essential workers, while property owners argued that regulations discourage development. Current policies require 10% of units in new developments with seven or more units to be affordable at 80% AMI and larger projects to include workforce housing at 120% AMI. However, critics claim these metrics are misaligned with Kingston’s lower median income.

Franklin, NH

The Franklin Legislative Committee is tackling issues with short-term rentals around Webster Lake after residents raised concerns about noise, illegal parking, and disturbances.

While no action was taken, City Manager Judie Milner has convened a team of city officials to draft potential solutions including a possible ordinance to be reviewed by the City Council.

Birmingham, AL

Birmingham city officials are debating new regulations for short-term rentals, spurred by growing complaints and safety concerns. Proposals include capping rentals at 1% of residential units, prohibiting them in residential areas, and requiring local managers or operators to take a training course.

The City Council's Planning and Zoning Committee reviewed a draft ordinance on Dec. 11 and plans to revise it with public input before presenting it to the council in January 2025.

Hawaii

A sharp decline in Hawaii's vacation rental demand highlights growing tensions between residents and the tourism industry. The latest HTA report reveals a 38.3% drop in demand and occupancy falling to 48.4% compared to pre-pandemic levels, as stricter regulations loom.

Nantucket, MA

Nantucket’s ongoing battle over short-term rental (STRs) regulations highlighted deep divisions within the community, with no comprehensive policy agreed upon despite repeated Town Meetings.

While May’s vote banned corporate ownership of multiple STRs, attempts to regulate STR-use through zoning bylaws were stalled by confusion and opposition. September’s Special Town Meeting featured two high-profile proposals: Article 2, which imposed residency requirements for STR operators, and Article 1, a compromise to limit investor-driven STRs while protecting existing owners. Neither proposal achieved the two-thirds majority required.

With this deadlock, Select Board members warn the issue may ultimately be resolved in court, underscoring the difficulty of reconciling competing priorities between year-round residents and property owners.

Norfolk, VA

Norfolk is proposing updates to its short-term rental regulations, including operator certifications, expedited permit renewals, and a rapid response team for violations.

With most registered rentals concentrated in Ocean View and East Beach, community leaders want revenue reinvested locally while operators criticize the costly and lengthy approval process. Suggestions like exempting smaller multi-unit properties from conditional use permits remain unaddressed, leaving some operators frustrated.