HomeMy WebLinkAbout11142022 City Council LAYDOWN - Ord 22-016221114 LAYDOWN for CC Regular Meeting
Bickling - Intro of Ordinance 2022-016
Short Term Rental Regulation
SEWARD CITY COUNCIL MEETING
NOVEMBER 14TH1 2022
Goals of Legislation
STR Regulation is an important part of addressing the housing issue — along with promoting new
housing development and other code changes for more efficient land use.
Protect Future Residential Development
Protect Single Family Homes in all zones
Protect Residential Neighborhoods
Current STR Operators — help keep value in investment of business
Reduce demand from land speculators / investors (artificially increases prices)
Background
Research (many communities like ours have been regulating for over 5 years) — more restrictive
or complete prohibition. Learning from how different regulations have worked.
Worksessions: April 191", June 21St, July 191", September 271" —well attended, significant input
Initial Cap Concept — modified to fit the needs of the community/situation
Discussions with business owners in person, email, phone calls
October 11t" P&Z Unanimous, approval — adoption of attorney recommendations
Current STR Properties
Properties that have historically operated as short term rental (legally) can continue to do so and
can be bought/sold as a short term rental property. (although no longer allowed in by the new
code) These properties will be considered a non -conforming use by code. If the property ceases
to operate at a short term rental, it can no longer be used as such in the future.
*"Historically operated" is defined by having at least 60 rental nights as demonstrated by bed
tax in one of the last five years 2018, 20191 20201 2021, or 2022.
*Continuing to operate as a short term rental requires 60 rental nights per calendar year as
demonstrated by bed tax.
Residential Zones
No whole house rentals in residential zones (adding UR and R3).
Owner Occupied (traditional Bed and Breakfast) are allowed in residential zones up to 50% of
bedrooms, with a maximum of three.
*A dwelling may be considered owner -occupied if it is being occupied by a renter with a legally
binding one-year or longer rental agreement. (The owner can long term rent and short term
rent; renter cannot sublease short term)
Commercial Zones
Single family structures that are not currently operating as a short-term rental may not be
converted to a short term rental in the future.
Whole house rentals are allowed in commercial zones if they are in a multi -family structure.
If a multi -family property is not operating as a short term rental (ie long term rental) and is
purchased, the purchaser must wait 4 years to apply for a short term rental permit.
*A dwelling may be considered owner -occupied if it is being occupied by a renter with a legally
binding one-year or longer rental agreement. (The owner can long term rent and short term
rent; renter cannot sublease short term)
General
If someone owns an undeveloped property with plans for a short term rental development (that
would be non conforming), they must be in active development within two years.
There will be an annual fee associated (through the fee schedule — proposed $50) for each
individual advertised short-term rental unit to help with processing and compliance costs. (This is
very low based on recommendations and common practices)
Specific short-term rental insurance (not home owners) will be required by code. We currently
ask for proof but it's not enforceable because it's not in code.
We are simplifying the STIR application process — the first year will be a little more "heavy lifting"
for the original inpu but future years will be able to be copied over within the system.