🎯 STRisker: Bulletin - Sandpoint, ID
Sandpoint’s STR Cap Heads to City Council as State Law Forces a Rethink
Sandpoint Balances STR Control and State Law as Cap Removal Advances
After a long pause and plenty of soul-searching, Sandpoint’s Planning and Zoning Commission reluctantly sent major changes to the city’s short-term rental ordinance up the chain. In a unanimous vote, commissioners recommended removing the citywide cap on non-owner-occupied short-term rentals, acknowledging that state law, not local preference, is now driving the conversation.
The discussion stretched past an hour and included public testimony, legal guidance, and a clear sense of frustration. Commissioner Reid Weber summed it up plainly: the state’s Short-term Rental and Vacation Rental Act, reinforced by a recent Idaho Supreme Court ruling, left little room for debate. In his words, taking on the state would be an uphill legal battle the city was unlikely to win.
At the center of the change is the elimination of Sandpoint’s 35-unit cap on non-owner-occupied STRs in residential zones. City officials said that cap has become legally risky following the Supreme Court’s decision in Idaho Association of Realtors v. City of Lava Hot Springs. In that case, the court ruled that cities may regulate short-term rentals, but not prohibit them outright, or indirectly through unreasonable limits.
City Legal Counsel Zachary Jones explained that even a numerical cap can cross that line. Whether the limit is 35 or 500, he said, someone eventually becomes “the prohibited applicant,” opening the door to a legal challenge. Sandpoint’s cap, city staff warned, had already put the city in the crosshairs.
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While the cap is coming off, the city is tightening what it can. Updated regulations increase scrutiny around parking, occupancy, and high-capacity rentals. Any short-term rental advertised for 11 or more guests would now require a high-occupancy permit, triggering a public hearing and review by the Planning and Zoning Commission.
Community feedback was limited but passionate. Two speakers urged the city to stand its ground and defend the cap, arguing it was a reasonable regulation. One speaker, a local real estate agent, supported the change, saying the cap forced him to sell property he otherwise would have kept in Sandpoint.
Still, concerns linger. Commissioners voiced worries about Sandpoint becoming a magnet for investment properties. At the same time, staff warned that a new Airbnb-backed bill expected in the Idaho Legislature could further weaken local control altogether.
The amended ordinance now heads to Sandpoint City Council for final consideration at a meeting scheduled for next year where the real decision, and debate, continues.
✍️ Daily notes and the Bulletin will resume December 26. Wishing all our readers a fruitful holiday season! 🎁
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