Regulatory Notes 10/1/2024

Summit County, CO 

After having their lawsuit dismissed in federal court, Summit Resort Homeowners has filed suit in Summit County court.

The lawsuit claims that the short-term rental regulations violate the Colorado Constitution, which states 'all persons have certain natural, essential and inalienable rights, among which may be reckoned the right of enjoying and defending their lives and liberties; of acquiring, possessing and protecting property; and of seeking and obtaining their safety and happiness.' It claims that Colorado law recognizes a right to unrestricted use of property. - Summit Daily

Scottsdale, AZ

Scottsdale, AZ has seen the number of citations for short-term rentals sky rocket this year, increasing from 25 the year before to 738 from July 2023 to June 2024.

Police issued 738 charges for short-term rental-related issues such as nuisance parties and operating without a license during this fiscal year, which ran from July 2023 to June 2024. That's nearly 30 times as many as the 25 charges filed last fiscal year. - Scottsdale police report 30-fold jump in short-term rental citations this year - Arizona Republic

Pacific Grove, CA

Pacific Grove City Council in Monterey County, CA will discuss a proposal to increase penalties for operating a short-term rental illegally. The proposed ordinance that would add fines of up to $5000 per occurrence will be discussed during Wednesday night’s meeting starting at 6:00pm.

Draft Ordinance

(a) Penalty provisions set by this Section shall apply only to infractions that pose a threat to public health or safety as enumerated in subsection (g). In no case shall such penalties exceed maximum fine amounts established pursuant to California Government Code Section 36900 et seq., or future amendments thereof.
(b) A fine shall not exceed $100.00 for a first violation for failure to license a short-term rental where short-term rental use of the residential property is an allowed use. Where short -term rental use of the residential property is not an allowed use, 7.40.195(c) shall apply.
(c) A fine shall not exceed $1,500 for any other first violation of Chapter 7.40;
(d) A fine shall not exceed $3,000 for a second violation of Chapter 7.40 within twelve consecutive months; and,
(e) A fine shall not exceed $5,000 for each additional violation of Chapter 7.40 within twelve consecutive months from the date of the first violation.

Dana Point, CA

During the November election Dana Point voters will determine the fate of Measure T. Amongst several changes it would prioritize hosted stays, create a lottery system for investor owned properties, require the city issued permit number to be displayed in the listing, and require hosting platforms to remit occupancy taxes.

Muskegon, MI

The Muskegon Planning Commission considered a change to how short-term rentals are regulated during its September 26 meeting. A major sticking point about the new ordinance was the transferability of licenses. The City Council will ultimately have the last say on whether to allow transfers as they’ll determine during their September 8 meeting.

The transferability of short-term rental licenses is in question following a vote by the Muskegon Planning Commission on a new ordinance.

The planning commission held a special meeting on Sept. 26 to review the new ordinance written by city staff and approved it, but with the exception that transferability of licenses in a change of ownership or sale be removed. Short-term rental owners, planning commission clash over ability to transfer licenses - M Live

The most impactful portions of the new ordinance:

Section 2314: Short-Term Rental Overlay District A Short-Term Rental Overlay District is hereby created as outlined in Figure 23-3. Within said overlay district, a certain number of short-term rentals are licensed in each zone pursuant to City Code Sections 10-353 through 10-379. The zones were created using census tract information and will be periodically reviewed to ensure that this ordinance reflects the appropriate balance of short-term rentals among other use types.

1. Overlay District:
a. Location: See Figure 23-3 for the location of the overlay district, which is separated into 11 different zones, each allowing their own maximum number of short-term rentals.
b. Number of short-term rentals allowed per zone. A short-term rental must be located in a unit designated for residential use.

The number of short-term rentals allowed in each zone is as follows:
Zone 1 – 34
Zone 2 – 68
Zone 3 – 60
Zone 4 – 70
Zone 5 – 79
Zone 6 – 25
Zone 7 – 80
Zone 8 – 50
Zone 9 – 95
Zone 10 – 77
Zone 11 – 13

Montcalm Township, MI
The Daily News in Michigan is out with the latest info on Montcalm Township’s consideration of new requirements for short-term rentals.

With no less than six short-term rentals in operation — all of them lakeside cottages — planners of this township are debating whether or not more protections are needed for residents and renters alike. 

Additionally, of those half-dozen units available for rent on platforms such as VRBO and Airbnb, half of them are non-registered as required by the township’s existing short-term rental ordinance. 

Park Township, MI
Some property owners are suing over an ordinance that has impeded them from renting their properties as short-term rentals.

“STRs have not been lawfully allowed within the Township (except in the C-2 commercial/business zoning district) since the current zoning regulations were enacted by the Township in 1974,” language in the ordinance passed this year says.