Weekly Regulatory Briefing (12)

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

• 🏔️ Woodland Park, CO: A Teller County District Judge has upheld Woodland Park’s Ordinance 1469, which prohibits short-term rentals in residential zones unless the owner lives on-site.
• 🏖️ Nantucket, MA: The Zoning Board of Appeals in Nantucket declined to rule on whether a Monomoy Road home’s exclusive use as a short-term rental violated zoning laws, citing mootness after the owner pledged to stop renting.

🌍 Regional Highlights

• 🐎 Kentucky: Kentucky’s Senate Bill 61 (SB 61) which aims to prevent cities from regulating short-term rental (STR) density has passed the State House last Friday but has not yet been approved by the Senate. In other news, Kentucky mayors voiced frustration over legislative tactics used to push statewide short-term rental (STR) deregulation with local officials criticizing efforts to override municipal authority.
• 🌊 North Carolina: A new senate bill for North Carolina was introduced during the recent legislative meeting. North Carolina Senate Bill 291 seeks to clarify homeowners' rights to operate short-term rentals while outlining what local governments can regulate.
• 🌾 Arkansas: Arkansas renters and housing advocates are pushing back against proposed state legislation that would limit local control over rental regulations.

📜 New Ordinances Approved

• 🏖️ Santa Cruz County, CA: Santa Cruz County approved new restrictions on short-term rentals to alleviate the county's housing crisis.

Daily Regulatory Notes 03/17/2025

Cities address STRs. Kentucky reviews amendment; Houston, TX receives feedback; Ocean City, MD rallies against ordinance; Fayetteville, AR evaluates enforcement; Covington, KY debates bill; Santa Cruz County, CA approves restrictions; Kamas, UT approves moratorium. READ MORE.

STRisker - Short-term regulatory changes and newsGenelaine Urbano

• ⛰️ Kamas, UT: Kamas City has put a temporary freeze on new short-term rentals giving the City Council time to craft a more detailed regulatory framework.
• 🌳 Hattiesburg, MS: Hattiesburg’s City Council has approved a new ordinance regulating short-term rentals, requiring operators to obtain a privilege tax license, register with the city, and pass safety inspections.
• 🌲 Humboldt County, CA: Humboldt County’s Board of Supervisors has adopted stricter short-term rental (STR) regulations than initially recommended by staff and the Planning Commission.

💬 Catch Up on Discussions

• 🏙️ Houston, TX: Houston is pushing forward with a long-awaited short-term rental ordinance amid growing frustration from residents over "party houses" disrupting neighborhoods.
• 🌲 Fayetteville, AR: Fayetteville residents and officials are seeing the impact of stricter short-term rental enforcement with a recent investigation identifying 155 illegal properties—many concentrated in wards near the University of Arkansas and downtown.
• 🏛️ Covington, KY: Kentucky lawmakers are debating Senate Bill 110 which would strip local governments of their ability to regulate short-term rentals, eliminating permitting requirements and density restrictions.
• 🏝️ Tybee Island, GA: Tybee Island City Council is considering amendments to its short-term rental (STR) ordinance passed in June 2024 but has delayed action for now.
• 🏔️ South Lake Tahoe, CA: The El Dorado County Superior Court has overturned South Lake Tahoe’s Measure T, a 2018 voter-approved ban on short-term rentals in residential neighborhoods.
• 🏡 East Haven, CT: The East Haven Town Council has postponed its vote on a proposed short-term rental ordinance following pushback over a residency requirement.
• 🏔️ Glacier, WA: Housing availability in Glacier, Washington is tightening as short-term rentals (STRs) proliferate, with local workers struggling to find long-term options.
• 🌆 Los Angeles, CA: The Los Angeles City Council is considering measures to strengthen enforcement of its home-sharing ordinance and residential hotel policies including a request for 18 new positions in the Housing Department to investigate violations and issue citations.
• 🎰 Las Vegas, NV: As Spring Break brings an influx of visitors to Las Vegas, short-term rental operators and local authorities are stepping up efforts to prevent disruptive parties.
• 🏖️ Milton, DE: Milton is considering new short-term rental regulations that would establish a dedicated section within the town code, following trends in nearby communities like Lewes and Ocean City.
• 🏘️ West Chester Township, OH: West Chester Township is considering zoning changes that would allow short-term rentals in designated districts while maintaining restrictions elsewhere.
• 🌊 Morro Bay, CA: Morro Bay’s City Council recently reviewed its short-term rental ordinance highlighting the city’s reliance on transient occupancy tax (TOT) revenue while addressing concerns over inactive rental permits.
• 🏡 Franklin, NH: Franklin’s working group on short-term rentals (STRs) presented two regulatory options at a community forum: increasing restrictions or enforcing existing ordinances.
• 🏛️ Petersburg, VA: The Petersburg Planning Commission reviewed proposed regulations that would legalize and regulate short-term rentals, which are currently unrecognized by the city's zoning ordinance.

Let’s Explore: Emerging Trends 🌱

As the short-term rental (STR) market continues to evolve, communities are adopting new strategies to address emerging challenges. Tighter enforcement, legal actions, and efforts to reduce neighborhood disruptions reflect the shifting nature of STR regulations and their impact on local areas.

What this means:

📒 Increased Legal Challenges and Court Rulings: Cities and counties are increasingly seeing their short-term rental (STR) regulations challenged in court, with mixed outcomes. Woodland Park, CO, secured a judicial victory upholding its residential zoning restrictions, while South Lake Tahoe, CA, saw its voter-approved ban overturned. Meanwhile, Nantucket, MA, avoided a legal precedent by declining to rule on a zoning dispute.

🏡 State-Level Preemption of Local STR Regulations: Several states are moving toward limiting municipal control over STRs through preemptive legislation. Kentucky’s SB 61 aims to prevent cities from regulating STR density, while Arkansas and North Carolina are debating bills that would standardize rental laws statewide. Local officials, particularly in Kentucky, have voiced strong opposition, arguing that these measures undermine local governance and community-specific needs.

🕕 Expanding Municipal Enforcement and Regulation: Santa Cruz County, CA, approved new restrictions to address housing concerns, while Houston, TX, and Los Angeles, CA, are enhancing enforcement mechanisms to curb unpermitted rentals and disruptive party houses. Additionally, Hattiesburg, MS, and Humboldt County, CA, passed new ordinances introducing stricter permitting, taxation, and safety requirements. These efforts reflect a broader trend toward stricter oversight at the local level.

📅 Future Meetings and Public Hearings/Comments:

• West Chester Township, OH: The proposal was recommended for approval by the zoning commission and will go before the Board of Trustees on April 8 for a final decision.

• Marion, MA: Marion’s Planning Board has introduced a short-term rental bylaw for consideration at the May 12 Town Meeting.