Weekly Regulatory Briefing (13)

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

• 🌊 Hermosa Beach, CA: Hermosa Beach resident Todd Koerner has filed a lawsuit challenging the city’s short-term rental ban in the coastal zone, arguing it is unlawful without Coastal Commission approval.
• 🏠 Canton Township, OH: A Canton resident, Michael E. Cheek, is challenging the city's zoning laws after being barred from using his single-family home as a short-term rental.

🌍 Regional Highlights

• 🏔️ Montana: The Montana Supreme Court is reviewing a dispute over whether a short-term rental in Whitefish violates neighborhood covenants restricting commercial use.
• 🌲 Idaho: An Idaho Senate committee sent back a bill for revisions that aims to prevent cities and counties from imposing stricter regulations on short-term rentals than on long-term rentals.
• 🏜️ Arizona: Northern Arizona mayors are calling for the repeal of a 2016 state law that prevents cities from regulating short-term rentals, arguing that local control is necessary to address community-specific issues.
• 🌉 California: A new bill introduced in California aims to increase transparency in short-term rental operations by requiring platforms like Airbnb and VRBO to share detailed property information when remitting hotel taxes to local governments.

📜 New Ordinances Approved

• 📓 New Milford, CT: New Milford has adopted new guidelines for regulating short-term rentals, defining them as properties rented for 30 days or less.
• 🏨 Moore County, NC: The Moore County Board of Commissioners has approved a 3% increase in the hotel occupancy tax, doubling it to 6% as requested by the Pinehurst, Southern Pines, Aberdeen Area CVB.
• 🏡 Pinellas County, FL: Pinellas County commissioners have adopted a new short-term rental ordinance, requiring owners in unincorporated areas to obtain a Certificate of Use for rentals of fewer than 30 days more than three times a year.
• 🏠 Manistee, MI: Manistee’s Planning Commission has approved a proposed short-term rental ordinance which will now go before the City Council. The ordinance establishes a registration system with a $250 annual fee, triennial inspections, and penalties for non-compliance.

💬 Catch Up on Discussions

• 🏛️ Houston, TX: Houston’s City Council voted on an ordinance requiring short-term rental operators to register annually at $275 per unit, disclose platform listings, and provide a 24-hour contact.
• 🏖️ Cocoa Beach, FL: Cocoa Beach city commissioners approved a 30-day grace period for short-term rental registration fees allowing new registrants to pay a reduced $500 fee instead of the recently increased rates.
• 🌄 Deadwood, SD: Black Hills communities are reevaluating short-term rental regulations in response to increased demand since the pandemic, with Rapid City seeing a 75% rise in listings.
• 🏘️ Traverse City, MI: Traverse City planning commissioners are refining proposed short-term rental (STR) restrictions aiming to reduce the number of units allowed in multiple zoning districts.
• 🏗️ Pittsfield, MA: Pittsfield’s Community Development Board has advanced a zoning amendment to regulate short-term rentals addressing a legal gap that previously made enforcement difficult.
• 🏡 Nacogdoches, TX: Nacogdoches is working on its first short-term rental ordinance which would require permits, annual inspections, and renewal fees for properties rented for less than 30 days.
• 🏙️ Buffalo, NY: Buffalo lawmakers are set to pass amendments tightening short-term rental regulations, focusing on restricting non-owner-occupied rentals in residential neighborhoods while shifting STR activity to commercial corridors.
• ⛰️ Eagle County, CO: Eagle County commissioners reviewed three potential approaches for regulating short-term rentals, acknowledging the complexity of enforcement given that 87% of STRs are in Beaver Creek and already monitored.
• 🏡 Waynesville, NC: After 18 months of review, Waynesville’s planning board is advancing a draft policy that would allow short-term rentals in all residential zoning districts while implementing regulations for parking, trash disposal, and emergency contact postings.
• 🏔️ Saranac Lake, NY: The Saranac Lake Board of Trustees is reviewing amendments to its short-term rental law, including removing special circumstances caps and exempting owner-occupied rentals from existing permit limits.
• 🌊 Lincoln County, OR: Lincoln County commissioners have voted to reduce the number of short-term rental licenses in two zones east of Highway 101 instead of issuing the 17 currently available.
• 🏙️ Cleveland Heights, OH: Cleveland Heights City Council is working to finalize long-debated short-term rental regulations but potential state legislation may limit local enforcement.
• ❄️ Juneau, AK: Juneau’s newly formed short-term rental task force is evaluating whether stronger regulations are needed for the city’s growing Airbnb and VRBO market, currently estimated at 300-400 units.
• ☀️ Clewiston, FL: Clewiston city commissioners approved the first reading of an ordinance introducing new oversight for short-term rentals, addressing safety and zoning concerns.

Let’s Explore: Emerging Trends 🌱

As the short-term rental (STR) landscape shifts, communities are adopting new measures to address emerging challenges. Enhanced enforcement, statewide initiatives, and neighborhood protections underscore the evolving impact of STR regulations on local areas.

What this means:

📒 Legal Challenges to Local STR Bans: Lawsuits are emerging as a key strategy for short-term rental (STR) operators challenging local bans, particularly in areas with conflicting state or regional oversight. In Hermosa Beach, CA, a resident has filed a lawsuit arguing the city’s STR ban in coastal zones requires approval from the Coastal Commission. Similarly, in Canton Township, OH, another lawsuit disputes zoning laws that restrict short-term rentals in single-family homes. These legal battles highlight growing tensions between local governments seeking stricter controls and property owners asserting their rights.

🌎 Push for Local Control vs. State-Level Regulation: A recurring trend is the struggle between state and local governments over who should regulate STRs. In Arizona, mayors are calling for the repeal of a 2016 law that limits cities' ability to impose STR restrictions, while Idaho lawmakers are debating a bill that would prevent cities from enacting stricter STR rules than those for long-term rentals. Meanwhile, Cleveland Heights, OH, is working on local STR regulations but remains cautious of potential state legislation that could override its efforts. This conflict reflects a broader debate over balancing statewide uniformity with local autonomy.

🏧 Increasing STR Transparency and Compliance Measures: Many municipalities are adopting stricter compliance and reporting requirements to regulate STRs more effectively. California’s proposed bill would require Airbnb and VRBO to share property details with local governments when remitting taxes, enhancing transparency. Cities like Houston, TX, and Pinellas County, FL, are mandating STR registrations and implementing annual fees, while Buffalo, NY, is working on restricting non-owner-occupied rentals in residential areas.

📅 Future Meetings and Public Hearings/Comments:

• Cleveland Heights, OH: The Housing and Building Committee aims to advance the legislation at its April 7 meeting though the city is also monitoring state-level efforts that could impact its regulatory authority.