Weekly Regulatory Briefing (10)

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.

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🏡 Top Stories This Week

• 🏘️ Hudson, WI: Hudson officials are gathering public input on potential short-term rental regulations ahead of the city’s moratorium expiration in June.

• 🗳️ West Windsor, VT: West Windsor voters upheld the town’s short-term rental ordinance in a 99-15 vote during Town Meeting, rejecting a proposed repeal.
• 🏠 Pittsburgh, PA: Mayor Ed Gainey updated the public on Pittsburgh’s voluntary rental registration program emphasizing its goal of improving housing safety.
• 🏘️ Falmouth, MA: The Falmouth Select Board unanimously approved a mission statement for the newly formed Short-Term Rental Advisory Committee, which was created to develop updated regulations.

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🌍 Regional Highlights

• 🏔️ Colorado: A study presented on Feb. 18 found that short-term rentals in Colorado’s mountain resort communities are not the primary driver of rising housing prices, with vacation homes and economic trends playing a larger role.
• 🏛️ New York: New York’s new short-term rental bill A05686 has drawn support from lawmakers who see it as a way to balance housing concerns with local control.

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📜 New Ordinances Approved

• 📌 Austin, TX: The Austin City Council has approved updates to short-term rental regulations, shifting STRs from the land development code to the business code and requiring platforms to collect hotel occupancy tax starting April 1.
• 🏡 Pooler, GA: Pooler City Council approved its first short-term rental ordinance in a tie-breaking vote by Mayor Karen Williams, set to take effect on March 18.
• 🔢 Lewisville, TX: Lewisville City Council has approved a new ordinance capping short-term rental permits at 130 citywide.

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💬 Catch Up on Discussions

• 💰 Catskill, NY: The Catskill Village Board of Trustees voted to request state approval for a 4% occupancy tax on short-term rentals, including hotels, motels, and STR platforms like Airbnb and VRBO.
• 🏢 Birmingham, AL: Birmingham city officials are working to establish new short-term rental regulations aimed at enhancing enforcement and public safety.
• 🚧 Atlanta, GA: Atlanta City Council is considering amendments to strengthen short-term rental regulations and improve enforcement against party houses.
• 🚫 Hermosa Beach, CA: Hermosa Beach remains firm on enforcing its ban on short-term rentals in the residential coastal zone despite legal challenges.
• ❌ Pagosa Springs, CO: The Pagosa Springs Town Council denied a request to grant a one-time variance to short-term rental rules, which would have allowed a family to bypass the town's two-year ownership requirement after inheriting a permitted STR property.
• 🏠 Ocean City, MD: Ocean City’s mayor and council held a third public hearing on an amended short-term rental ordinance that increases the minimum stay in R1 and MH zones from five nights to 31.
• ⚖️ Indian Rocks Beach, FL: Indian Rocks Beach commissioners voted 4-1 to fight a lawsuit from a vacation rental company challenging the city's 2023 short-term rental ordinance which limits occupancy to 10 guests.
• 🔥 Hilton Head, SC: Hilton Head Island Town Council is considering amendments to its short-term rental ordinance to improve fire safety following concerns over increased fire-related incidents in STRs.
• ⏳ Pacifica, CA: Pacifica’s city council delayed approving its revised short-term rental ordinance after extensive public feedback highlighted unresolved issues.
• 🗳️ South Haven, MI: South Haven City Council postponed a vote on proposed short-term rental regulations after a public hearing drew strong opposition from residents and business owners.
• 📊 Lexington, KY: Lexington’s General Government and Planning Committee received an update on short-term rental enforcement from Revenue Director Wes Holbrook on Tuesday.
• 🏢 Pinellas County, FL: Pinellas County commissioners are advancing a short-term rental ordinance aimed at improving oversight in unincorporated areas with a final vote expected after a second hearing next month.
• 🚫 Darien, IL: Darien is considering strengthening its nearly two-year-old short-term rental ban by prohibiting property owners from even listing rentals on platforms like Airbnb and Vrbo.
• 📄 Saugatuck, MI: The Saugatuck City Council held a study session on Wednesday at 4 PM to discuss potential updates to Bed and Breakfast rules and the implementation of new short-term rental regulations.
• 🏡 East Haven, CT: East Haven is advancing a proposed short-term rental ordinance that would require rentals to be a primary residence for at least 183 days per year, limit rentals to 105 days annually, and set a minimum stay of seven days.

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Let’s Explore: Emerging Trends 🌱

As the short-term rental (STR) landscape continues to change, communities are taking action to address growing challenges. Enhanced enforcement, legal disputes, and efforts to reduce neighborhood disruptions reflect the evolving nature of STR regulations and their impact on local areas.

What this means:

📝 Increased Public Engagement in STR Regulation: Many cities and towns are actively involving residents in discussions about short-term rental (STR) regulations. Hudson, WI is gathering public input ahead of a moratorium expiration, while South Haven, MI delayed its vote due to strong community opposition. Meanwhile, East Haven, CT is advancing an ordinance with a public hearing scheduled, and Hudson, WI has multiple listening sessions planned. This trend highlights the growing role of local communities in shaping STR policies and the demand for balanced regulations that address both housing concerns and economic impacts.

👨 Stronger Local Control Through New Ordinances: Municipalities continue to refine their STR policies to fit local needs with some approving new regulations and others reinforcing existing ones. Austin, TX shifted STR oversight to the business code while requiring platforms to collect occupancy taxes, and Pooler, GA passed its first-ever STR ordinance. Meanwhile, places like Hermosa Beach, CA, and Darien, IL are doubling down on restrictions, maintaining bans despite legal and enforcement challenges. This shift signals that local governments are asserting more control over STR operations, rather than relying solely on state-level regulation.

🏠 Balancing STRs With Broader Housing Policies: Policymakers are increasingly viewing STRs in the context of broader housing affordability and availability issues. A study in Colorado found that STRs are not the main driver of rising housing costs, while New York’s new STR bill seeks to balance housing concerns with local decision-making power. In some cases, cities are adjusting ordinances to mitigate specific impacts, such as Hilton Head, SC considering fire safety measures or Ocean City, MD extending minimum stays in certain zones. These actions reflect a more nuanced approach to STR regulations, integrating them into comprehensive housing strategies rather than treating them as isolated issues.

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📅 Future Meetings and Public Hearings/Comments:

• East Haven, CT: A revised ordinance will be discussed at a March 11 public hearing, with a vote expected immediately after.

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• Indian Rocks Beach, FL: The case will proceed to mediation before a potential court date March 11.

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• South Haven, MI: Following community concerns about economic impacts and job losses, the council delayed the decision until March 17 to further review the proposal.

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• Hudson, WI: Residents can participate in listening sessions with Alderperson Sarah Bruch on March 15 and March 29, or attend a Public Information Open House on March 18 at the Hudson Fire Hall.

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• Birmingham, AL: The City Council will review the proposals on March 19, followed by a public hearing for community input before a final decision.