Short-Term Rentals Community Open House City of Salem Planning - - PowerPoint PPT Presentation

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

• f lodging.

 Salem’s code in need of update.  Will allow collection of additional TOT tax.

What are Short-Term Rentals?

 Residential dwelling units rented

• n 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.

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Short-Term Commercial Lodging

Bed & Breakfasts

Single Family dwellings w/morning meal

Home-Sharing & Vacation Rentals

Houses, dwellings, guestrooms, and shared rooms

Short-Term Commercial Lodging

Hotels, Motels, Inns, B&Bs, Home-Sharing, Vacation Rental, etc.

 Short-Term Commercial Lodging (Permitted Use)  Bed & Breakfasts (Permitted Use)  Bed & Breakfasts (Conditional Use)

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What’s Currently Allowed?

Flexible Limited Focus of Amendments

Most Commercial, Mixed-Use, & Industrial zones Multi-Family & Mixed-Use zones; Commercial Office (CO) Zone Single-Family zones (RA, RS, & RD)

Zone Districts

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

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What Do Other Cities Allow?

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 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.

 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

• ccupancy required).

 Parking = 1 space per bedroom  Guestroom safety and inspections required.

Other Cities (continued)

What Do Other Cities Allow? (continued)

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 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.

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 RA, RS, & RD Permitted Use Multi-Family, Commercial, & some Industrial Zones

 Conditional Use Review

 Allows for conditions to be placed on use to minimize potential impacts.

 Parking: Min. 1 space per guestroom.  License Required.

No Change

Accessory Short-Term Rental

 A Limited Form of Short-Term Rental. Zones Allowed

Special Use RA, RS, RD, FMU (LI Area), & PM Permitted Use 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

License Requirements

Short-Term Rental Accessory Short- Term Rental Guest Registry Payment of Transient Occupancy Tax Liability Insurance Safety Requirements

• Accessory short-term rental requirements
• Multi-family licensing requirements

Yearly Inspection

 Annual license required (SRC Chapter 30):

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)

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Questions?