Weekly Regulatory Briefing (7)

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

• 💼 Dallas, TX: A Texas appeals court has upheld a lower court ruling that blocks Dallas from enforcing its short-term rental ordinance which would have banned 90% of STRs in single-family residential zones.
• 📓 Myrtle Beach, SC: MBSC Property South has filed a lawsuit against Myrtle Beach alleging the city’s short-term rental overlay illegally blocks the conversion of vacation rentals into long-term housing.
• 🏠 Sedona, AZ: The Sedona City Council passed a resolution declaring a housing shortage emergency attributing the crisis to the growing number of short-term rentals (STRs) which now account for 18% of the city's housing stock.

🌍 Regional Highlights

• 🏨 Kentucky: Kentucky lawmakers have introduced Senate Bill 110 which would prevent cities from imposing density limits or requiring conditional use permits for short-term rentals.
• 🏘️ Massachusetts: Massachusetts’ new law allowing accessory dwelling units (ADUs) by right in single-family zoning districts has officially taken effect enabling homeowners in 350 municipalities to build ADUs regardless of local zoning restrictions.
• 🕴️ Colorado: Short-term rental regulations in Colorado remain a contentious issue as local governments like Aspen and Snowmass Village enforce distinct permitting rules, while state legislators explore broader restrictions.
• 👓 New York: In a scaled-back revision of her short-term rental reform bill, Council Member Farah Louis has introduced an amendment to Local Law 18 that would allow one- and two-family homeowners to register their properties for short-term rentals and secure personal spaces while hosting guests.

📜 New Ordinances Approved

• 🌊 Ocean City, MD: Ocean City officials have enacted an 11-month moratorium on new short-term rental licenses in single-family and mobile home districts to evaluate the impact of recent regulatory changes.
• 🚓 AuSable Township, MI: AuSable Township has officially adopted Ordinance Number 143 setting new rules for short-term rentals with a focus on enforcement and compliance.

Daily Regulatory Notes 02/12/2025

Cities address STRs. Sedona, AZ declares housing shortage emergency; Indian Rocks Beach, FL votes on regulation; AuSable Township, MI adopts ordinance; Kodiak, AK considers new regulations; Mitchell, SD launches zoning code update; Fayetteville, AR reintroduces bill. READ MORE.

STRisker - Short-term regulatory changes and newsGenelaine Urbano

• 🏘️ Arkansas: Arkansas lawmakers advanced HB1445 – a bill that would prohibit cities and counties from capping the number of short-term rentals and classify them strictly as residential properties.

Daily Regulatory Notes 02/13/2025

Cities address STRs. Yavapai County, AZ discusses STR crisis; Arkansas advances bill; East Drumore Township, PA drafts amendment; Basalt, CO proposes annual fee; Alexandria, VA discusses regulations; Arvada, CO reviews enforcement; Austin, TX schedules vote; New York introduces amendment. READ MORE.

STRisker - Short-term regulatory changes and newsGenelaine Urbano

💬 Catch Up on Discussions

• 🧢 Austin, TX: Austin’s Planning Commission approved a proposed overhaul of short-term rental regulations advancing the ordinance to City Council for a final vote on Feb. 27.
• 🚒 Los Angeles, CA: According to a report from Better Neighbors LA, short-term rental prices surged in Los Angeles County following the Eaton and Palisades fires with some Airbnb hosts raising rates beyond the 10% limit set by California’s price gouging law.
• 🗺️ New Orleans, LA: New Orleans’ short-term rental law faces renewed legal scrutiny as a federal appeals court panel questioned its permit cap, live-in operator mandate, and corporate ownership ban.
• 🐦 Nevada City, CA: Nevada City officials have scheduled a follow-up meeting to discuss potential updates to the city's short-term rental ordinance.

Daily Regulatory Notes 02/10/2025

Cities address STRs. Myrtle Beach, SC handles lawsuit; West WIndsor, VT reviews ordinance; Los Angeles, CA discusses price gouging; New Orleans, LA reviews law; Nevada City, CA schedules meeting; Ocean City, MD enacts moratorium; Kentucky introduces a bill; Massachusetts enforces law. READ MORE.

STRisker - Short-term regulatory changes and newsGenelaine Urbano

• 🚧 Edgartown, MA: A new Massachusetts law allowing homeowners to build accessory dwelling units (ADUs) without special permits has sparked debate in Edgartown over whether these units should be used as short-term rentals.
• 🚀 Hudson, WI: The Hudson City Council has opted to use in-house staff for its review of short-term rental regulations, aiming to finalize potential ordinance amendments before the moratorium expires in June.
• 👣 Falmouth, ME: Falmouth officials are advancing updates to the town’s short-term rental ordinance requiring annual registration with a $300 fee, an emergency contact, and proof of insurance.
• ✏️ Indian Rocks Beach, FL: Indian Rocks Beach city commissioners voted on a proposed rollback of short-term rental regulations following years of debate over restrictions imposed due to neighborhood complaints.
• 📒 Kamas, UT: The Kamas Planning Commission is working to solidify its ban on short-term rentals (STRs) by drafting an ordinance that would explicitly prohibit them and establish enforcement measures.
• 🎩 Kodiak, AK: The Kodiak Island Borough Assembly is considering new short-term rental (STR) regulations starting with a licensing requirement by July 1, followed by potential restrictions and a cap on new STRs.
• 🎤 Yavapai County, AZ: The mayors of Lake Havasu City and Sedona, Cal Sheehy and Scott Jablow discussed the growing short-term rental crisis in their cities on Yavapai Speaks.
• 🧶 East Drumore Township, PA: East Drumore supervisors advanced a draft zoning amendment defining and regulating short-term rentals including bed-and-breakfasts as transient lodging for 30 days or less.
• 🏦 Basalt, CO: The Basalt Town Council discussed a proposed $2,532 per bedroom annual regulatory fee for short-term rentals aiming to curb STR growth and support affordable housing.
• 👓 Alexandria, VA: Alexandria's Department of Planning and Zoning is prioritizing potential new short-term rental regulations as part of its Long-Range Planning Interdepartmental Work Program for FY 2026-27.
• 📔 Arvada, CO: Arvada City Council is addressing issues with short-term rental enforcement as most properties operate without a license, complicating compliance efforts.

Let’s Explore: Emerging Trends 🌱

As the short-term rental (STR) landscape changes, communities are implementing new measures to tackle emerging challenges. Stricter enforcement, statewide initiatives, and efforts to reduce neighborhood disruptions highlight the evolving impact of STR regulations on local areas.

What this means:

⚖️ Legal Battles Over Local Short-Term Rental Bans: Cities attempting to regulate or ban short-term rentals are facing increasing legal challenges. In Dallas, TX, a Texas appeals court blocked the city's effort to enforce an ordinance that would have banned most STRs in residential zones, while Myrtle Beach, SC, is being sued over its STR overlay, which allegedly prevents property owners from converting vacation rentals into long-term housing. These cases highlight the growing legal pushback against restrictive short-term rental regulations and could set important precedents for other municipalities.

📒 State-Level Preemption of Local STR Rules: Several states are considering or passing laws that limit local governments' ability to regulate short-term rentals. Kentucky's Senate Bill 110 seeks to prevent cities from imposing density limits or requiring special permits, while Arkansas lawmakers advanced HB1445, which would prohibit local caps on STRs and classify them strictly as residential properties. This trend suggests a growing state-level effort to override local STR restrictions, favoring property rights and tourism growth over municipal control.

🏘️ STR-Related Housing Shortages Prompt Emergency Action: Some cities are linking short-term rental growth to housing shortages and taking emergency measures in response. Sedona, AZ, declared a housing emergency, citing STRs as a major factor, while Basalt, CO, is considering a hefty per-bedroom annual fee to curb STR expansion and support affordable housing. With STRs impacting local housing markets, municipalities are increasingly adopting urgent measures, such as moratoriums and new fees, to balance tourism benefits with residential needs.

📅 Future Meetings and Public Hearings/Comments:

• West Windsor, VT: West Windsor’s short-term rental ordinance faces a potential repeal vote at Town Meeting on March 4 after a petition from rental owners seeking more discussion on the issue.

• Wareham, MA: The Wareham Planning Board will hold a public hearing on February 24 to discuss revisions to its accessory dwelling unit (ADU) bylaw, following concerns raised at the Jan. 13 Special Town Meeting.

• Austin, TX: Austin’s Planning Commission approved a proposed overhaul of short-term rental regulations advancing the ordinance to City Council for a final vote on February 27.

• Fayetteville, AR: Arkansas lawmakers have reintroduced a bill to limit municipal short-term rental regulations, sparking concerns in cities like Fayetteville and Bella Vista. Fayetteville’s City Council will vote on a resolution opposing the bill on February 18 as cities prepare to engage with state legislators.