2. Background
⢠Municipal regulation of short-term rentals
o Establishes a process of permitting and enforcing STRs
o Requires collection and remittance of Hotel Occupancy Tax
⢠Presentation of draft ordinance April 23, 2020
o STR permitting process, including life safety inspection
o Other elements: informational brochure, guest conduct
o Council direction to move forward with proposed ordinance:
ď§ Additional examination of owner-occupancy
ď§ Impact on existing Bed and Breakfast facilities
ď§ More regular STR inspections
3. Short-Term Rental Permit
⢠STR hosts must apply for and be issued an STR permit
o Unique permit number for each unit
o Must be included in all advertisements (including internet booking
sites)
⢠Permits may not be transferred and do not convey with sale
of property
⢠Valid for 1 year from date of issuance
o May be renewed for successive years
4. STR Permit Application
⢠Required information:
o Name, address, email address, telephone number of property
owner/operator
o Name, address, email, 24-hour telephone number of local contact
o Physical address of STR
o Statement that owner will comply with requirements of STR
ordinance
o Verification applicant has no delinquent HOT
5. STR Permit Requirements
⢠Life Safety inspection
o Working smoke detectors
o At least one working carbon monoxide detector (if using
gas/propane)
o At least one working fire extinguisher per floor of dwelling
⢠Informational brochure
o Operatorâs 24-hour contact information
o Pertinent neighborhood information
o Information to assist guests in case of emergency
⢠HOT collection and remittance
6. STR Permit Requirements
⢠Violations/penalties
o Unlawful to operate STR without securing a permit
o Noncompliance with any provision of STR ordinance or other laws
o Failure to timely pay HOT
o Violations of any provision result in action provided in Section 1-7 of
Code of Ordinances
⢠Denial of permit
⢠Revocation of permit
7. Proposed Changes - Definitions
⢠Add definition of âBed & Breakfast Facilityâ
o Bed and breakfast facility means an accessory to a single-family
dwelling in which no more than four (4) unrelated individuals
occupy the property overnight, maintain a residential appearance
and be the permanent residence of the proprietor, no more than four
(4) rooms where shared/common bathrooms are provided, and no
cooking facilities permitted in individual rooms.
⢠Add definition of âowner-occupiedâ
o Owner-occupied means the propertyâs owner of record that utilizes
the dwelling as the ownerâs primary residence.
8. Proposed Changes â
STR Categories
⢠Short Term Rental I
o Bed and Breakfast Facility located in a residential zoning district
o Single-family dwelling; permanent residence of the proprietor
o No more than four (4) unrelated individuals occupy the property
overnight
o No more than four (4) rooms where shared/common bathrooms are
provided and permitted
o No more than one (1) meal is served daily
9. Proposed Changes â
STR Categories
⢠Short Term Rental II
o Owner-occupied within General Suburban (GS), Restricted
Suburban (RS), or Wellborn Restricted Suburban (WRS)
o May include an accessory dwelling located on the property
ď§ If so, owner/local contact is required to be on the premises during the rental
⢠Short Term Rental III
o Either owner-occupied or non-owner-occupied within a residential
zoning district other than GS, RS, or WRS
o Owner/local contact not required to be on-site
10. Proposed Changes â
Permit Application
⢠For STR I and II, proof that the premises is the primary
residence of the applicant â must provide 2 of the following:
o Motor vehicle registration
o Driverâs license
o Texas State Identification card
o Voter registration
o Tax documents
o Utility bill
⢠Owner may be listed as the local contact
11. Proposed Changes â
Permit Requirements
⢠Life safety inspection may be waived when renewing a
permit if the following apply:
o Unit is classified as STR I;
o Operator self-certifies compliance with life safety standards; and
o Operator has not been found in violation of STR ordinance
⢠Benefits to Bed and Breakfast facilities:
o No on-site inspection at renewal
o Reduced renewal fee
12. Additional Considerations
⢠Initial draft â updated with Bed and Breakfast inclusion &
clarification of HOT collection and remittance
⢠Implementation timeline
⢠Permit fee structure
⢠Program administration: permitting, inspections, compliance
13. Staff Recommendation
⢠Recommend approval of the STR ordinance with an effective
date of 9/1/2020
⢠Return with an updated fee ordinance
⢠Utilize external partner for program administration (STR
permitting, Hotel Occupancy Tax collection)
⢠STR inspections to be completed by City staff
Editor's Notes
Good evening Mayor and Council. Brian Piscacek with the City Managerâs Office.
Permitting process includes: application fee, inspection, and annual renewals
August 8, 2019: Presentation to City Council on Airbnb, short-term rentals
Fall 2019: Benchmarking research â policy and implementation
November 18, 2019: Short-term rental stakeholder meeting
January 23, 2020: Presentation on municipal regulation
February-April 2020: Draft STR ordinance development
April 23, 2020: Workshop presentation of draft STR ordinance
Benchmark cities: Lubbock, Galveston, San Marcos, New Braunfels, Waco
Fees:
Lubbock - $100 permit fee, $100 renewal
Galveston - $50 permit fee, no renewals
San Marcos - $50 permit fee, $50 renewal fee
New Braunfels - $200 permit fee, $125 renewal fee
Waco - $150 permit fee, $50-75 renewal fee (depends on inspection)
Renewing a permit. An operator may file an application for renewal of the permit.
The Administrator may deny the renewal if there is reasonable cause to believe that:
The applicant has violated any ordinance of the city, or any state, or federal law on the property or has permitted such a violation on the property by any other person; or
(2) There are grounds for revocation or other sanction as provided in this article.
Local contact must: (1) respond in person within one hour to complaints regarding the condition, operation, or conduct of occupants of the short term rental unit; and (2) take remedial action to resolve such complaints.
Prior to issuance of a short term rental permit, the Operator shall allow, with reasonable notice, an on-site inspection of the short term rental unit by the City Building Official or designee to ensure compliance with minimum health and safety requirements for use and occupancy. If a premises fails to pass an inspection, a re-inspection fee may be charged for each subsequent inspection in accordance with the fee established by resolution. If, upon completion of an inspection, the premises are found to be in violation of one or more provisions of applicable city codes and ordinances, the city shall provide written notice of such violation and shall set a re-inspection date for a violation to be corrected prior to its occupancy.
Pertinent neighborhood information: parking restrictions, restrictions on noise and amplified sound, and trash collection schedules
Emergency and non-emergency telephone numbers for police, fire, and emergency medical services providers and instructions for obtaining severe weather, natural or manmade disaster alerts and updates
Denial of permit
False statement
Nonpayment of application fee
Revocation of permit within the preceding 18 months
Revocation of permit
Failure to comply/in violation of any provision of the permit, City ordinances, or other applicable laws
False statement
Poses a serious threat to public health, safety, or welfare
Failure to remit HOT
The applicant may appeal a denial of a permit by submitting in writing a notice to appeal, delivered to the City Managerâs office no later than five (5) business days after the denial or revocation decision.
The notice of appeal must be in writing and state the grounds for the appeal and why the determination should be reversed or modified. If the applicant makes a timely, written request for appeal, the City Manager or designee shall hold a hearing within ten (10) business days.
(c) The applicant shall have the opportunity to be heard at the hearing.
(d) After the close of the hearing, the City Manager or designee shall make a determination concerning approval, denial, or modification of the permit within five (5) business days.
Section 1-7
Except as otherwise provided by law or ordinance, a person convicted of a violation of this Code shall be punished:
(1) By a fine of not less than $25.00 and not more than $500.00.
Except as otherwise provided by law or ordinance:
(1) With respect to violations of this Code that are continuous with respect to time, each day that the violation continues is a separate offense.
(2) With respect to other violations, each violation constitutes a separate offense
Noise: Sec 26-8. Regulations regarding the decibel level (daytime and nighttime rules, 10pm-7am)
Definition is consistent with what currently exists in the UDO
The initial draft (attached to this agenda as âOrdinance Draft 1â) is included for your consideration as well.
City policy allows for full cost recovery. An annual fee to receive and maintain a permit will be applied at application and renewal. Fiscal Services will bring back the fee ordinance at a future Council meeting to incorporate the fees associated with STR permitting and inspections.
OTHER NOTES:
Recent court decisions
Texas Supreme Court: Tarr v Timberwood Park Owners Association, Inc.
opinion delivered 5/25/2018
Residential versus commercial use
Texas Court of Appeals, 3rd District (Austin): Zaatari v. City of Austin
opinion delivered 11/27/2019
Struck down portions of City of Austinâs short-term rental ordinance:
Provision phasing out certain types of STRâs
Provision limiting certain conduct and assembly at STR properties
Possible State legislation in 2021
Community Discussion on short-term rentals was held on Monday, November 18, 2019 at the CSU Meeting & Training Facility.
67 attended from the community, not including a number of staff members from various City departments
- 65% CS residents, 15% real estate professionals, 10% STR hosts, 5% commercial lodging operators, 5% other
Summary of Responses
Generally supportive of regulating STRs
Support: local contact, educational materials, life safety, annual certification, tax compliance
Oppose: restricting social gatherings/parties
133 open-ended comments
Open-Ended Questions
What elements of the example ordinances do you like?
What elements of the example ordinances do you not like?
What are your primary concerns with regulating STRs?
Councilman Crompton requested that we, on the operational side, review the potential for 3rd party inspections
I reached out to our Building Official who felt these inspections could be carried out within their existing workloads
In times of high volumes, we could also rely on additional staff support from our Code Enforcement division, for example
Ultimately, we feel the inspection requirement is not overly burdensome to either the STR host or City staff administering the inspection
And it should serve to better protect the health, safety, and welfare of the guests and neighbors