🎯 STRisker: Bulletin - Virginia Beach, VA

Virginia Beach Moves to Shrink Oceanfront STR Zone as Illegal Rentals Top 40 Percent

Photo by Daniel Halseth on Unsplash

Virginia Beach is proposing to significantly contract the geographic boundary within which new short-term rentals may legally operate at the Oceanfront while also closing a parking loophole that allows STR operators to lease spaces in city-owned garages to satisfy zoning requirements.

The proposals come as city officials acknowledge that roughly 40% of the more than 450 STRs currently inside the Oceanfront overlay are operating without a valid permit, a compliance failure that is now driving both moves.

📋 The Current Framework

Under Virginia Beach's current rules, short-term rentals are permitted with a city-issued zoning permit inside two designated STR Overlay Districts: the Oceanfront Resort area and the Sandbridge Special Service District. Properties outside those zones registered with the Commissioner of the Revenue before July 1, 2018 are grandfathered but must still meet Section 241.2 of the Virginia Beach City Code. Newly registering properties within the Oceanfront overlay must also obtain a conditional use permit (CUP) from City Council before completing the annual $500 zoning permit process.

🗺️ Proposed Boundary Change

The revision presented by city zoning administrator Hannah Sabo to the Resort Advisory Commission's parking subcommittee would redraw the Oceanfront overlay's western boundary, pulling it back from North Birdneck Road. The Resort Beach neighborhood, Atlantic Park, and the convention and sports center areas would fall outside the permissible zone entirely. The Virginia Beach Planning Commission has until July 20 to issue a formal recommendation before City Council holds a public hearing and vote. Sabo noted the boundary remains subject to revision before that deadline.

🔒 Grandfathering Conditions

The use regulations of this section shall not apply to short-term rentals within a Short-term Rental Overlay District that were grandfathered at the time of adoption of the short-term rental ordinance, which properties shall be subject exclusively to the provisions of section 241.2.

- From Zoneomics.com about Virginia Beach City Zoning Code

The redrawn boundary would leave 281 compliant and 107 noncompliant STRs within the new overlay footprint. STRs currently permitted inside the existing overlay that land outside the new boundary would be grandfathered, but the dwelling cannot be expanded by more than 25% or 1,000 square feet, whichever is less, and any rental unused for two consecutive years would forfeit that status. The city is actively working with the 107 noncompliant operators inside the proposed new boundary to bring them into compliance.

🅿️ The Parking Rule Change

The city is also proposing to end the practice of leasing spaces in publicly owned garages to satisfy the one-space-per-bedroom off-street parking requirement. Currently, 29 STRs have leased 76 spaces across two Oceanfront city garages. Those arrangements would continue as a carve-out if changes are approved, but no new garage leases would be permitted going forward.

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