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WS Item 3 - Regulation of STRs revised Regulation of Short Term Rental (STR) Properties in Residential Areas Item #3 Work Session Good evening mayor and members of City Council. The purpose of this work session item is to discuss with City Council possible approaches to the regulation of residential units that are used as short term rentals (STRs). The staff will present three (3) possible STR regulatory options to the City Council for consideration. Following the discussion the staff requests that City Council provide direction on a preferred option. If a preferred option is selected staff will begin work on the development of an ordinance and present recommendations for City Council consideration at a future meeting. 1 Short-Term-Rentals (STR) 2 As discussed at your September 5, 2017 work session -- short term rental services allow individuals to rent a home or even a single bedroom for a short duration, usually just a few days at a time, using a web based platforms that advertises to travelers. These web based platforms include such site as Air B & B, Vacation Rental by Owner and Flipkey. (STOP) Proponents of STR s believe that the rental service provides for lower cost lodging to visitors, while allowing property owners to earn returns. Opponents typically cite noise, traffic and disruption to residential neighborhoods. Regulations of STRs by cities in the State vary greatly. Some cities have an absolute prohibition on STRs. Some cities have specific regulations which include registration, establishing licensing requirements, inspection, required payment of hotel/lodging taxes, and the establishment enforcement tools. Many cities in Texas have no regulations in place or regulate this use through existing residential zoning regulations. 2 September 5 Work Session Also atthe work session staff provided an overview on the manner in which the City currently regulates STR properties, provided examples on how other cities regulate STR properties, and provided an overview on proposed State regulations considered at the past legislative session that if were passed would have exempted. Texas Cities from banning STRs less than 30 days. Also, during the work session the City Council allowed the public to comment on STR properties. Council also asked staff to meet with the HOA representatives present at the September meeting to discuss some of the issues/challenges that the HOAs where facing in addressing short term rentals. Staff met with representatives from Kirkwood Hollow and Stone Lakes HOAs and received information from the Oak Tree HOA. Immediately following the staff set up a “STR” page on the City’s web site to keep the public informed on this topic and allow for written comments to be submitted. Written public comments are provided electronically in your packet.   3 Possible Options for the Regulation of STRs Prohibition of STR properties Establish standards for permitting, registration, and performance Utilize existing Zoning and noise regulations Staff has identified three (3) possible options for City Council to consider for the regulation of STR properties. Each option is outlined in the memo along with a framework example on possible regulatory components of that option. The framework examples provided are intended only to demonstrate how regulations would be structured and is not necessarily intended to be proposed to be final ordinance language. 4 Option #1 - Prohibition Amend the City Code through the adoption of an ordinance to prohibit “short term rental” properties as an allowable use. This option would result in the complete prohibition of STR properties in the City as defined. Staff is recommending that if this option is selected that leasebacks to a home seller be exempt from the ordinance requirements. 5 Option #1- Prohibition The structure of the ordinance would include: 6 Option #2 – Establish Regulations Amend the City Code through the adoption of an ordinance to regulate “short term rental” properties. The City Code language will establish procedures and requirements for inspections, registration, permits, insurance, parking, life-safety, conduct on the premise, tenant indoor notification, enforcement, revocation of permits and appeals. A definition section will also be established. Under this option if an applicant meets the requirements of the established ordinance regulations, a property will be permitted to operate as a STR. 7 Option #2 Registration Licensing Permit Application Req. Expiration and Renewal Maximum Occupancy Permit Display Life & Safety Verification Conduct on the premises Advertisement Tenant Indoor Notification Inspections Enforcement, Penalty and Revocation Option #2 ARTICLE XX(XXX) - SHORT TERM RENTALS City Code Sec.X.XX.XXX - Purpose. (a) The purpose of this article is to establish regulations for the protection of the health and safety of occupant(s) of short term rental properties, and to protect the integrity of the neighborhoods in which short term rental properties operate. City Code Sec.X.XX.XXX - Definitions. Adult, Agent, Occupant, Owner, Parking area, Short term rental, Sleeping areas, and zoning district. City Code Sec.X.XX.XXX - Authority of the Director. Provides the Zoning Adminsitrator the authority to enforce the ordinance and revoke permits. City Code Sec.X.XX.XXX - Permit Required. This section will provide that no short term rental shall operate in the City without a permit. City Code Sec.X.XX.XXX - Permit Application Requirements. This section will provide the application submittal requirements. Components likely to include:  List of owner, address, email address, location, zoning  A sketch and narrative describing the location of parking spaces  A sketch of the floor plan which identifies sleeping areas, maximum number of guests, evacuation routes, location of fire extinguishers  24 hour telephone number and a list of contacts  Proof of hotel occupancy tax compliance – (Proof of registration from Finance)  Proof of coverage under a homeowners property insurance policy  Proof of coverage under a Commercial General Liability Insurance policy with minimum limits per occurrence and aggregate established, including Host Liquor liability coverage. City Code Sec.X.XX.XXX- Expiration and Renewal of Permit. This section will establish the length of valid permit (i.e. 1 year). It will require the permit holder to apply for a renewal at least 30 days before expiration of the permit. It will also establish a permit fee. 8 9 Option #3 – Existing Regulations Option #3  The zoning ordinance identifies “Residential Uses” as a permitted use all residential zoning districts.  Residential districts do not allow commercial uses such as bed and breakfast.  Provides a definition for “Family” FAMILY -One (1) or more persons who are related by blood or marriage, living together and occupying a single housekeeping unit with single kitchen facilities, or a group of not more than five (5) unrelated persons living together by joint agreement and occupying a single housekeeping unit with single kitchen facilities, on a non-profit, cost-sharing basis.  Southlake Parking Standards Ordinance 480 –Must park vehicles on a hard weather all-weather surface.  Southlake Noise Ordinance 778 10 Questions 11