Short-Term Rentals Community Open House City of Salem Planning Division February 1, 2017
Background Why are we here tonight? Discuss proposed amendments relating to short-term rentals. Receive public input. Why are the amendments needed? Increasing demand of home-sharing (websites like Airbnb, FlipKey, VRBO, HomeAway, etc.). Allows source of supplemental income for residents. Allows increased lodging opportunities. Cities across country are allowing this form of lodging. Salem s code in need of update. Will allow collection of additional TOT tax.
What are Short-Term Rentals? Residential dwelling units rented on short-term basis. Can take variety of forms. Bed & Breakfasts Vacation Rentals Home-Sharing Can be operated in variety of dwelling unit types. Single family dwellings. Duplexes. Multi-family buildings.
Short-Term Commercial Lodging Short-Term Commercial Lodging Hotels, Motels, Inns, B&Bs, Home-Sharing, Vacation Rental, etc. Home-Sharing & Vacation Rentals Houses, dwellings, guestrooms, and shared rooms Bed & Breakfasts Single Family dwellings w/morning meal 2
What s Currently Allowed? Flexible Zone Districts Short-Term Commercial Lodging (Permitted Use) Most Commercial, Mixed-Use, & Industrial zones Bed & Breakfasts (Permitted Use) Multi-Family & Mixed-Use zones; Commercial Office (CO) Zone Bed & Breakfasts (Conditional Use) Single-Family zones (RA, RS, & RD) Limited Focus of Amendments 2
Purpose and Goals of Amendment Update code to address increasing demand for home-sharing Simplify approval process Promote neighborhood compatibility Preserve City s needed housing supply Support tourism in Salem Promote equity Clear, simple, & enforceable standards 5
What Do Other Cities Allow? Variety of other cities examined. Mix of different terms and variety of different approaches used. Oregon Examples: Portland, Bend, Lincoln City Portland: Up to 2 rooms with permit. 3 to 5 rooms with Conditional Use approval. 6 or more rooms not allowed in residential zones. Must be operated by owner of renter who lives there. Entire home can be rented for limited period. Guestroom safety and inspections required. 4
Other Cities (continued) Bend: Up to 2 rooms (owner occupied) with permit. Rented less than 30 days per year with permit. 250-foot separation requirement for certain types. Parking = 1 space per bedroom. Lincoln City: Vacation rentals (entire home) with land use review and license approval. Owner may not operate more than one vacation rental. Vacation rental zoning applied in some areas. Bed & breakfast up to 2 rooms (owner occupancy required). Parking = 1 space per bedroom Guestroom safety and inspections required.
What Do Other Cities Allow? (continued) Common Themes: License and/or permit and land use approvals required. Limits on number of rooms. Limits on number of guests. Ownership requirements. Parking required. Safety requirements and inspections. Payment of TOT tax. 4
Proposed Amendment - Overview Introduces Flexibility. Allows small-scale short-term rental activities without Conditional Use Approval (Accessory Short-Term Rental). Promotes Safety and Ensures Level Playing Field. License required. Safety inspections. Payment of TOT tax. Short-Term Rental Accessory Short-Term Rental
Amendment Overview (continued) Maintains Protection of Neighborhoods. Short-term rentals allowed without Conditional Use permit limited: Resident operator required. Max. limit on guestrooms & guests. Min. off-street parking required. Conditional Use process maintained for other short-term rentals. Preserves Housing Supply. Limits types of dwelling units used for short-term rentals.
Short-Term Rental Modified Bed & Breakfast. Definition expanded to include condo units. Morning meal no longer required. Allowed in same zones where B&Bs are currently allowed. Zones Allowed Conditional Use Permitted Use RA, RS, & RD Multi-Family, Commercial, & some Industrial Zones No Change Conditional Use Review Allows for conditions to be placed on use to minimize potential impacts. Parking: Min. 1 space per guestroom. License Required.
Accessory Short-Term Rental A Limited Form of Short-Term Rental. Zones Allowed Special Use Permitted Use RA, RS, RD, FMU (LI Area), & PM Zones where Short-Term Rentals are permitted. Special Use Standards (SRC Chapter 700): Accessory to Single Family or Two Family Use (condo units included). Operated by resident family. Must live there a minimum 270 days per year. May be hosted or non-hosted (with limits). Located within a lawfully approved dwelling unit. Cannot be operated in conjunction with other accessory uses: ADUs, Guest Houses, Taking of Boarders/Leading of Rooms Can only be used for lodging. Parking: Min. 1 space per guestroom. License Required.
License Requirements Annual license required (SRC Chapter 30): License Requirements Guest Registry Payment of Transient Occupancy Tax Liability Insurance Safety Requirements -Accessory short-term rental requirements -Multi-family licensing requirements Yearly Inspection Short-Term Rental Accessory Short- Term Rental Inspection not required if applicant certifies no changes have been made to guest rooms and on-site parking.
Next Steps Refinement of Amendments & Drafting Ordinance Planning Commission Public Hearing (March 7, 2017) Consider public comments. Make recommendation to City Council. City Council: First Reading of Ordinance. Council Public Hearing (Optional). Second Reading of Ordinance. Ordinance Effective. (Target: May 2017) 6
Questions? 7