Weekly Regulatory Briefing (46)

Each week, we bring together the biggest updates in short-term rental regulations from coast to coast. Whether it’s fresh local regulations, emerging trends, or major discussions, our briefing provides all you need to stay in the know.

🏡 Top Stories This Week

• Menlo Park, CA: Measure CC, a ballot initiative to increase the city’s transient occupancy tax (TOT) on short-term rentals like hotels and Airbnb by 3.5%, is on track for approval, with strong voter support shown in preliminary counts. Read the full measure here.
• Medina, OH: Medina City Council is moving forward it’s proposed regulations to its first reading. The ordinance aims to allow STRs primarily in the C2 commercial and MU mixed-use zones, and conditionally in R2 and R3 residential districts within 4,000 feet of the center of the town. This is covered in their November 12 Meeting Agenda.
• Dallas, TX: Dallas faces an ongoing court challenge to its 2023 ordinance restricting short-term rentals (STRs) from single-family neighborhoods. As the lawsuit continues, STR operations remain active, with the case potentially setting a significant precedent for similar regulations nationwide.

🌍 Regional Highlights

California: The housing crisis has prompted U.S. cities to scrutinize short-term rentals, with mixed results. As an example, in Irvine, California, a six-year ban on platforms like Airbnb has gained resident approval and reportedly lowered rents by 3% while boosting long-term rental availability. Yet, Irvine's housing affordability remains an issue, with rents far above the national average.

Experts argue short-term rentals have varying impacts, often dependent on local market dynamics, and a 2019 Harvard study found only a negligible link between increased listings and rising rents. More about it here.

📜 New Ordinances Approved

• Matthews, NC: Matthews has officially revised its short-term rental ordinance to classify rentals under bed-and-breakfast regulations, limiting future operations to room-only rentals within homes, not whole-house arrangements. Read the full Unified Development Ordinance here.
• Putnam Township, MI: Putnam Township has passed a new ordinance effectively banning short-term rentals in single-family homes and on lakes, requiring operators to cease new bookings by June 21 and honor existing ones only until Labor Day. Full ordinance here.
• Rockford, IL: The city now requires new regulations for short-term rentals such as limiting parking, banning large gatherings, requiring owners to obtain a permit, and more. The proposed ordinance:

• Walton, KY: Walton’s City Council has approved a new ordinance requires owners to pay a $500 annual fee—up from the original fee of $15—and raises violation penalties from $25 to $100. More on the ordinance here: LINK nky

💬 Catch Up on Discussions

• Dallas, TX: Last November 6, Dallas City Council members debated on whether or not they should revise or repeal an existing short term rental ordinance. Here’s the ordinance.
• Ocean City, MD: Proposed changes to the city’s zoning code would impose new occupancy limits and minimum stay requirements for short-term rentals in single-family and mobile home zoning districts. You can read more about it here: Proposed Rental Revisions.
• Waukegan Township, IL: Waukegan officials are considering a new short-term rental ordinance that would require property owners to obtain a license, addressing growing uncertainty as the number of rentals increases. Read more about it here: Chicago Tribune.
• Clovis, CA: After a staff report highlighted some concerns over the city’s STR units, Clovis City Council is considering implementing regulations such as occupancy limits, increased data tracking, and capping rentals per neighborhood.

• Irondequoit, NY: A community survey on short-term rentals revealed a substantial resident concern over potential risks to neighborhood stability, safety, and property values, with 41% strongly opposing these rentals in their neighborhoods. 🗃️ Read the full report in our 11/13 note.

Daily Regulatory Notes 11/13/2024

Medina, OH Medina City Council Meeting Oct 15, 2024 - 19:30 This is a Local Council meeting. Is a vote scheduled? TBD. Summary: The Medina City Council held a public hearing for various amendments to the Zoning Code. It addresses topics including short-term rentals. Documents: More details - Agenda

STRisker - Short-term regulatory news and changesDane Artisola

• Folly Beach, SC: The city council revisited its short-term rental ordinance to clarify details following last year’s cap. Topics include potential leniency for late license submissions, ISTR inheritance eligibility, and license rules for relocated properties. Read more about the short-term rental history: STR Timeline

Let’s Explore: Emerging Trends 🌱

As cities navigate the expanding short-term rental (STR) industry, a clear shift toward balance and accountability is emerging. From zoning restrictions to community-driven initiatives, local governments and residents alike are shaping the future of STR regulations.

What This Means:

• Cities are increasingly moving toward stricter zoning enforcement to control the spread of STRs, as seen in Medina, OH, and Ocean City, MD, where zoning codes are being revised to limit STRs to specific districts or impose occupancy and stay minimums. This shift reflects growing concern about balancing STR growth with neighborhood stability.
• Escalation of licensing and fees: Walton, KY, for instance, raised annual fees from $15 to $500 and increased penalties for violations, signaling a push to ensure STR operators bear a fair share of community costs. Similarly, Putnam Township, MI, has taken a firmer stance, effectively banning STRs in single-family homes and lakeside properties to prioritize long-term residential use.
• Community input and surveys are becoming central to policy-making, as evidenced in Irondequoit, NY, and Burlington, VT, where resident feedback is helping shape future regulations. This participatory approach underscores a growing recognition of community concerns over STR impacts on housing affordability, neighborhood safety, and property values.
• Platform accountability remains a priority, with municipalities working to ensure compliance through more stringent licensing programs and data tracking measures, such as Clovis, CA’s focus on monitoring rental activity.

📅 Future Meetings and Public Hearings/Comments:

• Burlington, VT: The city of Burlington is seeking public input as it prepares to establish a Short-Term Compliance and Licensing Program. The survey is available here, and will remain open until Friday, Nov. 29.
• Ocean City, MD: A public hearing will be held on the city’s proposed zoning code changes on November 19. Public comments can also be submitted online or via email (gbendler@oceancitymd.gov).

• Waukegan Township, IL: The Waukegan City Council’s Community Development Committee will continue its discussion of the proposed short-term rental ordinance on Dec. 2.

• Rhode Island: The Rhode Island special commission studying short-term rental impacts is actively seeking public input. Anyone wishing to submit written testimony is asked to email it, preferably in PDF format, directly to either Representative Carson at rep-carson@rilegislature.gov or Representative Cortvriend at rep-cortvriend@rilegislature.gov on or before November 20.