SHORT-TERM RENTALS. PLANNING COMMISSION January 10, Presented by: Michael Dice Policy Administrator

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1 SHORT-TERM RENTALS PLANNING COMMISSION January 10, 2017 Presented by: Michael Dice Policy Administrator 1

2 BACKGROUND Online services have led to rapid increase of home sharing Part of the sharing economy Homeaway AirBnB VRBO Uber and Lyft No current state or local regulation for STRs SB 451 HB 2551 Similar uses in the UDC Single Family Residences Bed and Breakfasts Hotels 2

3 COUNCIL CONSIDERATION REQUEST (CCR) Sponsored by former Councilman Mike Gallagher (CD 10) Submitted on February 1, 2017 Goal: Review current ordinances and city code procedures for short-term rentals (STR) Focused on 5 areas 3

4 PROCESS 16 General and Task Force meetings between March and November, 2017 Goals Balanced representation of stakeholders Transparent approach to regulation Monte Vista NA Beacon Hill NA King William NA Monticello NA Northwest Alliance San Antonio Hotel Lodging Association San Antonio Apartment Association Real Estate Council of San Antonio San Antonio Board of Realtors AirBnB Austin STR Operators HomeAway Austin 4

5 CCR s Focus Areas Impact on property values and safety Lorem Ipsum is simply dummy text of the printing and Updates codes/ordinances in other cities Hotel Occupancy Taxes - HOT Options for registering and permitting Policies and procedures to enhance public safety

6 Impacts on Property Values and Safety Cornell University Study General Review of Regulations Found that STRs protect property values Insulate owners from negative housing markets Williams University Study Increased STR availability led to increased property values MIT/UCLA/USC Study 10% increase in STRs led to property value increases 6

7 CODES AND ORDINANCES IN OTHER CITIES CITY YEAR REG./PERMI T FEE RENEWAL/ INSPECTION FEE HOT INSURANCE BACKGROUND CHECKS ENFORCEMENT NOTES Austin 2013 Yes/$443 Yes/$236- $479 Yes Basic No Denial of renewal for 12 mos. for repeated violations, fines, additional fees al renewal $50 Notification fee; proof of payment of HOT; specific noise restrictions; Type 2 will not be allowed after 2022 Houston Uses B&B and hotel regulations; specifically properties offering transient rooms must be commercial in character New Orleans 2017 Yes/$50- $500 (by type) Yes/$50- $500 (by type) Yes $500,000 No Fines, license revocation, property liens, electrical services disconnect Denver 2016 Yes/$25 $25 Yes Basic No License suspension and fine of $999 per incident Nashville 2014 $50 $50 Yes Insurance & Liability of $1 M No Revocation of permit after 3 or more complaints Up to 5 bdrm. or max. 10 guests; best efforts to notify neighbors of STR; prohibited in certain zones Allowed as an accessory use in residential and mixed-used commercial Three types: hosted (single & multi-family, duplex); unhosted (single-family & duplex); unhosted multi-family (apartments & condominiums) 7

8 Hotel Occupancy Tax (HOT) Required to be paid for any stay less than 30 days Total tax rate is a mix State County City Convention Center taxes City s 7% rate VisitSA Convention Facilities Arts History and Preservation 8

9 PROPOSED ORDINANCE Regulation and permitting through DSD 2 types of STRs Type 1 - Hosted sharing Owner or lessee-occupied Allowed by Right in Residential & Commercial Type 2 - Un-hosted sharing Owner or lessee do not occupy property as primary residence Allowed with Special Exception in Residential Allowed by Right in Commercial 9

10 ZONING VS. SPECIAL EXCEPTION Question Zoning Special Exception Is permanent with the land? Yes No Can expire with change of ownership? No Yes Can be limited with time period? No Yes Can require a Renewal Process? No Yes Can have conditions placed on use? Yes (Dependent) Yes Requires a Public Input Process? Yes Yes 10

11 PROPOSED ORDINANCE Top issues discussed: Density Residential zoning Type 2 distance requirements 300 ft. lateral 150 ft. perpendicular Parking 1 parking space per STR unit 11

12 PROPOSED ORDINANCE Top issues discussed: Legal non-conforming use Enforcement/bad actors SAPD and Code Enforcement Respond to complaints Enforce proposed and existing city ordinances Relay enforcement data to Building Official Repeated violations can result in revocation of permits 12

13 PERMIT APPLICATION PROCESS Registration with Finance Department for HOT tax List of owners/operators with 24 hour contact information and address Minimum insurance requirements Site plan Floor plan Inspection process Enforcement requirements/penalties Special exception for Type 2 13

14 APPLICATION FEES Purpose Fee Amount Initial Registration Fee New $ Renewal Fee (every 3 years) New $ Re-inspection Fee Existing $51.50 Special Exception Fee Existing $

15 RECOMMENDATION Board of Adjustment recommended approval with a modification: Add a criterion to (i) which states: F. The special exception will not alter the essential character of the district and location in which the property for which the special exception is sought. This criterion allows BOA to consider density and propagation of STRs in neighborhoods Staff recommends approval of the proposed amendments to Chapter 35 of the UDC and to move forward to City Council for final consideration Thank you to all stakeholders and Task Force members 15

16 SHORT-TERM RENTALS PLANNING COMMISSION January 10, 2017 Presented by: Michael Dice Policy Administrator 16