Regulatory Context Weekly (41)
Your go-to summary of key developments in short-term rental regulations nationwide.
🚨 Top Stories This Week 🚨
- 🌲 Monterey County, CA: New STR Regulations Set to Take Effect October 14
Monterey County’s new short-term rental rules will soon take effect, adding significant complexity to operating vacation rentals. The ordinances establish three types of rentals:- Homestays: Owners must reside in the home while it’s rented.
- Limited Vacation Rentals: Rentals limited to three or fewer stays annually.
- Commercial Vacation Rentals: Prohibited in specific residential zones but permitted elsewhere with a use permit.
➡️ Key Insight: Operators in areas like Big Sur and Carmel Highlands must act fast to comply, or face potential fines. The county will hold a public webinar on October 14 to explain these new regulations and answer questions.
- 🏛️ Idaho: Airbnb No Longer an Option for Foster Youth Housing
Following the passage of SB 1379, Idaho state agencies have stopped using Airbnbs to house difficult-to-place foster children. Between November 2022 and November 2023, the state placed 179 youth in STRs due to a lack of housing options. The law aims to prevent this practice going forward, highlighting the need for better infrastructure to support vulnerable populations.
➡️ Why It Matters: The transition reflects increasing scrutiny of using STRs for non-tourism purposes and signals a broader shift towards more regulated housing solutions. - 🏢 Springfield, MO: Major Overhaul of STR Rules in Progress
Springfield is revising its STR ordinance for the first time since 2019 to simplify application processes and limit appeals.
Under the new rules:- A protest model will replace the consent-based approval system.
- If two or more neighboring property owners protest, an application can be denied.
- Hosting platforms must ensure only licensed properties can book stays.
➡️ Impact: These updates reflect a growing trend toward streamlining compliance while balancing neighborhood concerns. A public hearing is set for November 4, where the council will seek input on the draft ordinance.
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For more info check out our Daily Note from Friday
Daily Regulatory Notes 10/11/2024
Springfield, MO During its meeting Thursday night Springfield Planning and Zoning Commission considered significant changes to its short-term rental ordinance first passed in 2019. The changes would attempt to simplify the the current application process by standardizing the the application process and density determination while limiting the ability for an
William McClure
🌎 Regional Highlights
- Pitkin County, CO: Updates are underway for the county’s STR application process. Officials are reviewing rules first implemented in 2022 and will return with new recommendations at a future meeting.
➡️ Takeaway: As one of Colorado’s premier vacation spots, any changes in Pitkin County could serve as a model for other resort towns. - Maine: The rollout of LD 2003 has created tension between state policy and local authorities. Towns like Boothbay and Edgecomb are imposing minimum stay requirements to discourage developments ADUs for use as short-term rentals .
➡️ Insight: Limited financing products (usually limited to lines of credit) creates challenges for local residents to build ADUs. This complicates the situation and makes it harder for homeowners to bring these units live for family or rental use.
📈 Emerging Trends
- 🏠 Short-Term Rental Zoning Caps
Counties like Monterey in California and cities such as Springfield, MO and Lafayette, LA are implementing and considering stricter zoning rules, capping the number of STRs or limiting stays. Particularly in single family zones while trying to push more use towards multi-family zones. Expect to see more municipalities adopt similar models to balance tourism <> housing affordability . - 💼 Compliance Burdens Shift to Platforms
Increasingly, cities are holding platforms like Airbnb and VRBO accountable for ensuring compliance. Monterey’s new rules and Springfield’s proposal to enforce booking restrictions through platforms indicate a new frontier in regulation. - 🧠 ADU Laws Face Real-World Challenges
Maine’s ADU law aims to expand housing options for residents, but local resistance and financing barriers are barriers for development. This trend suggests that policy changes alone are not enough—market realities also play a crucial role in shaping outcomes.
🔍 Let's dive in: The Evolution of STR Zoning—A Shift Toward Targeted Restrictions
Zoning battles are becoming more sophisticated as cities attempt to balance STRs with community needs. Monterey County’s approach—allowing homestays while banning commercial STRs in certain areas—reflects a shift towards precision in short-term rental regulations.
What This Means:
- More Community Input: Cities are increasingly leaning on neighborhood consent or protest models to shape STR policy.
- Platform Requirements are increasing: More cities (not just in California) are requiring platforms (Airbnb, VRBO, etc.) to act as true intermediaries between hosts/owners and municipalities. They will need to handle not only tax collection and remittance, but increasingly determine the legality of individual operators to operate in a location.
What to Watch for Next Week
- October 14: Monterey Housing and Community Development Department is hosting a webinar for residents to learn about the new vacation rental ordinances on Monday, Oct. 14, from 5 to 6 p.m. (Webinar ID: 945 6627 0205; Passcode: 971935; Dial in: +1 669 900 6833).
- October 16 - 4:00 pm: Gilmer County, GA hosts a Public Hearing to allow comments on amendments to its Short Term Rental Ordinance.
- October 17 - 7:00 pm: Town of Luray's Planning Commission is having a meeting on Thursday, Oct 17 at 7pm (agenda) to consider 3 SUPs at 142 Caterpillar Drive (PND), 330 Mechanic Street (R-3), and 401 Mechanic Street (R-3). Discussion on how a new Village Residential Zone would prohibit short-term rentals.
- October 17 - 10:00 am: Danville, VA's Zoning Board of Appeals is considering 3 special exception permits for short-term rentals.