Municipal Policy Committee September 5, 2017
Municipal Policy Committee September 5, 2017
•
Today’s Agenda: Examples of STR’s (Not exclusive to SFR) Options for Consideration Policy Objective Considerations (Handout)
City of Arlington, Texas
2
City of Arlington, Texas
3
City of Arlington, Texas
4
Consider prohibiting short-term rentals in SF units
PROS: Addresses the perception of commercial use in a
residential neighborhood Potentially minimizes adverse impacts to neighborhoods;
and reduces impacts to residential character Reduces the competition for the hotel/motel industry
City of Arlington, Texas
5
Consider prohibiting short-term rentals in SF units
CONS: Loss of potential income for the property owners renting it out
as vacation rentals Potential for inverse condemnation lawsuits by property
owners Property owners are likely to continue renting as STRS;
difficult and costly to regulate; may only serve to create an untaxed “underground market” City of Arlington, Texas
6
Consider prohibiting short-term rentals in SF units New information from UDC research:
SF Dwelling Units fall under the category of “Household Living”
This use category is characterized by residential occupancy of a dwelling unit by a household. Tenancy is arranged on a month-to-month or longer basis.
When tenancy is arranged for a period of less than 30 days, those uses are classified under the “Lodging Facilities” category, which does not include SF dwelling units. City of Arlington, Texas
7
“Lodging Facilities” use category
When tenancy is arranged for a period of less than 30 days, those uses are classified under this use category.
Specific use types include: Bed & Breakfast Inn Hotel, (Boutique/Full Service/ Limited Service/ Residence) Overnight Parking Facility Trailer Camp / RV Park
City of Arlington, Texas
8
INFERENCES: Short-term Rentals (typically rented out for a weekend or one
week) is NOT allowed in Single Family Dwelling Units, per UDC If Council chooses to allow Short-term Rentals in SF units, the
following options are:
Revise definition of Bed & Breakfast to include this (requires a SUP); or Add a new definition in the ‘Lodging Facilities’ Use Category with restrictions/regulations Create a STR ordinance using Best Practices City of Arlington, Texas
9
Consider creating a new definition for STR or modify definition of existing uses such as Bed & Breakfast in the ‘Lodging Facilities’ Use Category
City of Arlington, Texas
10
Create/modify UDC definition and add regulations PROS: Potential to create and capture HOT
Allows for tracking of STR properties through registration
or permitting process STR owners realize income generation Limits location of STRS where they have greatest
potential to disrupt single-family residences May require SUP with supplemental use standards City of Arlington, Texas
11
Create/modify UDC definition and add regulations CONS: Requires differential enforcement across jurisdiction
City of Arlington, Texas
12
Allow STRS with restrictions – Require permit/fee PROS: Allows for tracking, monitoring & determining growth
trends Provides owner information for purposes of enforcement & emergency contact
City of Arlington, Texas
13
Allow STRS with restrictions - Require permit/fee CONS: Requires staff time and other resources to manage and
enforce Any new requirement is likely to be met with some
resistance from stakeholders May impose additional operational costs for STR owners
City of Arlington, Texas
14
Allow STRS with restrictions – Provide for local contact PROS: Create owner accountability
Protects integrity of neighborhood
City of Arlington, Texas
15
Allow STRS with restrictions – Provide for local contact CONS: Staff time required for monitoring and enforcement
City of Arlington, Texas
16
Allow STRS with restrictions – Proof of registration in HOT program for state and City PROS: Places equal burden on STR and hotel owners for a more
fair taxation structure
City of Arlington, Texas
17
Allow STRS with restrictions – Proof of registration in HOT program for state and City
CONS: Staff time required to monitor and collect taxes
City of Arlington, Texas
18
Allow STRS with restrictions – Consequences for complaints or violations PROS: Provides for accountability of property owner to monitor
guests Potential revocation / suspension of permit
City of Arlington, Texas
19
Allow STRS with restrictions – Consequences for complaints or violations
CONS: Staff time required for monitoring and enforcement
City of Arlington, Texas
20
Allow STRS with restrictions – Neighborhood notification PROS: Alerts neighbors of STR restrictions and provides property
owner contact information
City of Arlington, Texas
21
Allow STRS with restrictions – Neighborhood notification requirement
CONS: Staff time required for monitoring and enforcement STR owner privacy concerns
City of Arlington, Texas
22
Allow STRS with restrictions – Parking restrictions
PROS: Decrease negative effects on residents residing in
neighborhood Protect property values
City of Arlington, Texas
23
Allow STRS with restrictions – Parking restrictions
CONS: Staff time required for monitoring and enforcement May impose additional operational costs for STR owners
City of Arlington, Texas
24
Allow STRS with restrictions – Require health and safety inspections PROS: Protect the safety and health of renters Places burden of responsibility on owners Promotes fairness and equity with hotel/motel inspection
requirements
City of Arlington, Texas
25
Allow STRS with restrictions – Require health and safety inspections
CONS: Staff time required for inspection and enforcement May impose additional operational costs for STR owners
City of Arlington, Texas
26
Allow STRS with restrictions – Maximum occupancy
PROS: Protect the safety of renters Create accountability for owners Decrease negative effects on residents residing in
neighborhood
City of Arlington, Texas
27
Allow STRS with restrictions – Maximum occupancy
CONS: Staff time required for monitoring and enforcement Potential equal protection challenge City of Austin litigation
City of Arlington, Texas
28
Allow STRS with restrictions – Require to be owner occupied PROS: May decrease total number of STRS
City of Arlington, Texas
29
Allow STRS with restrictions – Require to be owner occupied
CONS: Difficult to enforce Some STR owners will continue to operate non-owner
occupied STRS
City of Arlington, Texas
30
Allow STRS with restrictions – Narrowly-tailored regulations PROS: Limits the potential for over-regulation Requires permit/registration as a result of documented
recurring violations Reduces staff time for monitoring and enforcement
City of Arlington, Texas
31
Allow STRS with restrictions – Narrowly-tailored regulations
CONS: May not reassure residents that neighborhood integrity is
a priority Does not ensure collection of HOT
City of Arlington, Texas
32
Allow STRS with restrictions – Cap the number, percentage, or proximity of STR homes PROS: Allows STRS to continue operating/limits the concentration
in any single neighborhood
City of Arlington, Texas
33
Allow STRS with restrictions – Cap the number, percentage, or proximity of STR homes
CONS: Determining geographic boundaries Potential challenges over fairness/Too many current STRs
operating in one neighborhood or census tract
City of Arlington, Texas
34
Categorize by type of STR Type 1 (Owner-Occupied) Located in RE, RS-20, RS-15, RS 7.2, RS-5, RM-12, RMF-22 zoned districts Owner-occupied or associated with an owner-occupied principal residence Provides for the rental of an entire dwelling unit Provides for if part of the unit is rented, a minimum of a sleeping room with shared full bathroom is required, and owner is generally present during rental Provide for not more than one partial unit at the property is simultaneously rented City of Arlington, Texas
35
Categorize by type of STR (Type 1)
PROS: Allows STRS to continue operating Provides for accountability of property owner to monitor
guests Allows for tracking & monitoring
City of Arlington, Texas
36
Categorize by type of STR (Type 1)
CONS: Staff time required for monitoring and enforcement Difficult to enforce
City of Arlington, Texas
37
Categorize by type of STR Type 2 (Not Owner-Occupied) Located in RE, RS-20, RS-15, RS 7.2, or RS-5 zoned districts Are not owner-occupied or associated with an owneroccupied principal residence Provides for no more than 3% of single-family residential units within the census tract of the property are STR
City of Arlington, Texas
38
Categorize by type of STR (Type 2)
PROS: Allows STRS to continue operating/limits the concentration
in any single neighborhood Allows for tracking & monitoring
City of Arlington, Texas
39
Categorize by type of STR (Type 2)
CONS: Potential challenges over fairness/too many current STRs
operating in one neighborhood or census tract May not reassure residents that neighborhood integrity is
a priority
City of Arlington, Texas
40
Categorize by type of STR (Type 3) Type 3 (Not Owner-Occupied) Located in RMF-22 zoned districts Are not owner-occupied or associated with an owneroccupied principal residence Are part of a multifamily use (apartments/condominiums) Provides for no more than 3% of the total number of dwelling units at the property and no more than 3% of the total number of dwelling units located within any building at the property are STR City of Arlington, Texas
41
Categorize by type of STR (Type 3)
PROS: Allows STRS to continue operating/limits the concentration
in any single complex Allows for tracking & monitoring
City of Arlington, Texas
42
Categorize by type of STR (Type 3)
CONS: Potential challenges over fairness/too many current STRs
operating in any single complex
City of Arlington, Texas
43
Policy Consideration
Pros
Cons
Utilize third-party vendor to provide STR • Reduces staff location and operator data (Offset by permit research time fee) • Increases accuracy of identifying STRS
• May impose additional operational costs for STR owners
• Reduces staff time • Reassures residents that neighborhood integrity is a priority
• May impose additional operational costs for STR owners
Utilize third-party vendor to provide telephone/email hotline for residents (Offset by permit fee)
Discussion
•
Today’s Agenda: Examples of STR’s (Not exclusive to SFR) Options for Consideration Policy Objective Considerations (Handout)
City of Arlington, Texas
2
City of Arlington, Texas
3
City of Arlington, Texas
4
Consider prohibiting short-term rentals in SF units
PROS: Addresses the perception of commercial use in a
residential neighborhood Potentially minimizes adverse impacts to neighborhoods;
and reduces impacts to residential character Reduces the competition for the hotel/motel industry
City of Arlington, Texas
5
Consider prohibiting short-term rentals in SF units
CONS: Loss of potential income for the property owners renting it out
as vacation rentals Potential for inverse condemnation lawsuits by property
owners Property owners are likely to continue renting as STRS;
difficult and costly to regulate; may only serve to create an untaxed “underground market” City of Arlington, Texas
6
Consider prohibiting short-term rentals in SF units New information from UDC research:
SF Dwelling Units fall under the category of “Household Living”
This use category is characterized by residential occupancy of a dwelling unit by a household. Tenancy is arranged on a month-to-month or longer basis.
When tenancy is arranged for a period of less than 30 days, those uses are classified under the “Lodging Facilities” category, which does not include SF dwelling units. City of Arlington, Texas
7
“Lodging Facilities” use category
When tenancy is arranged for a period of less than 30 days, those uses are classified under this use category.
Specific use types include: Bed & Breakfast Inn Hotel, (Boutique/Full Service/ Limited Service/ Residence) Overnight Parking Facility Trailer Camp / RV Park
City of Arlington, Texas
8
INFERENCES: Short-term Rentals (typically rented out for a weekend or one
week) is NOT allowed in Single Family Dwelling Units, per UDC If Council chooses to allow Short-term Rentals in SF units, the
following options are:
Revise definition of Bed & Breakfast to include this (requires a SUP); or Add a new definition in the ‘Lodging Facilities’ Use Category with restrictions/regulations Create a STR ordinance using Best Practices City of Arlington, Texas
9
Consider creating a new definition for STR or modify definition of existing uses such as Bed & Breakfast in the ‘Lodging Facilities’ Use Category
City of Arlington, Texas
10
Create/modify UDC definition and add regulations PROS: Potential to create and capture HOT
Allows for tracking of STR properties through registration
or permitting process STR owners realize income generation Limits location of STRS where they have greatest
potential to disrupt single-family residences May require SUP with supplemental use standards City of Arlington, Texas
11
Create/modify UDC definition and add regulations CONS: Requires differential enforcement across jurisdiction
City of Arlington, Texas
12
Allow STRS with restrictions – Require permit/fee PROS: Allows for tracking, monitoring & determining growth
trends Provides owner information for purposes of enforcement & emergency contact
City of Arlington, Texas
13
Allow STRS with restrictions - Require permit/fee CONS: Requires staff time and other resources to manage and
enforce Any new requirement is likely to be met with some
resistance from stakeholders May impose additional operational costs for STR owners
City of Arlington, Texas
14
Allow STRS with restrictions – Provide for local contact PROS: Create owner accountability
Protects integrity of neighborhood
City of Arlington, Texas
15
Allow STRS with restrictions – Provide for local contact CONS: Staff time required for monitoring and enforcement
City of Arlington, Texas
16
Allow STRS with restrictions – Proof of registration in HOT program for state and City PROS: Places equal burden on STR and hotel owners for a more
fair taxation structure
City of Arlington, Texas
17
Allow STRS with restrictions – Proof of registration in HOT program for state and City
CONS: Staff time required to monitor and collect taxes
City of Arlington, Texas
18
Allow STRS with restrictions – Consequences for complaints or violations PROS: Provides for accountability of property owner to monitor
guests Potential revocation / suspension of permit
City of Arlington, Texas
19
Allow STRS with restrictions – Consequences for complaints or violations
CONS: Staff time required for monitoring and enforcement
City of Arlington, Texas
20
Allow STRS with restrictions – Neighborhood notification PROS: Alerts neighbors of STR restrictions and provides property
owner contact information
City of Arlington, Texas
21
Allow STRS with restrictions – Neighborhood notification requirement
CONS: Staff time required for monitoring and enforcement STR owner privacy concerns
City of Arlington, Texas
22
Allow STRS with restrictions – Parking restrictions
PROS: Decrease negative effects on residents residing in
neighborhood Protect property values
City of Arlington, Texas
23
Allow STRS with restrictions – Parking restrictions
CONS: Staff time required for monitoring and enforcement May impose additional operational costs for STR owners
City of Arlington, Texas
24
Allow STRS with restrictions – Require health and safety inspections PROS: Protect the safety and health of renters Places burden of responsibility on owners Promotes fairness and equity with hotel/motel inspection
requirements
City of Arlington, Texas
25
Allow STRS with restrictions – Require health and safety inspections
CONS: Staff time required for inspection and enforcement May impose additional operational costs for STR owners
City of Arlington, Texas
26
Allow STRS with restrictions – Maximum occupancy
PROS: Protect the safety of renters Create accountability for owners Decrease negative effects on residents residing in
neighborhood
City of Arlington, Texas
27
Allow STRS with restrictions – Maximum occupancy
CONS: Staff time required for monitoring and enforcement Potential equal protection challenge City of Austin litigation
City of Arlington, Texas
28
Allow STRS with restrictions – Require to be owner occupied PROS: May decrease total number of STRS
City of Arlington, Texas
29
Allow STRS with restrictions – Require to be owner occupied
CONS: Difficult to enforce Some STR owners will continue to operate non-owner
occupied STRS
City of Arlington, Texas
30
Allow STRS with restrictions – Narrowly-tailored regulations PROS: Limits the potential for over-regulation Requires permit/registration as a result of documented
recurring violations Reduces staff time for monitoring and enforcement
City of Arlington, Texas
31
Allow STRS with restrictions – Narrowly-tailored regulations
CONS: May not reassure residents that neighborhood integrity is
a priority Does not ensure collection of HOT
City of Arlington, Texas
32
Allow STRS with restrictions – Cap the number, percentage, or proximity of STR homes PROS: Allows STRS to continue operating/limits the concentration
in any single neighborhood
City of Arlington, Texas
33
Allow STRS with restrictions – Cap the number, percentage, or proximity of STR homes
CONS: Determining geographic boundaries Potential challenges over fairness/Too many current STRs
operating in one neighborhood or census tract
City of Arlington, Texas
34
Categorize by type of STR Type 1 (Owner-Occupied) Located in RE, RS-20, RS-15, RS 7.2, RS-5, RM-12, RMF-22 zoned districts Owner-occupied or associated with an owner-occupied principal residence Provides for the rental of an entire dwelling unit Provides for if part of the unit is rented, a minimum of a sleeping room with shared full bathroom is required, and owner is generally present during rental Provide for not more than one partial unit at the property is simultaneously rented City of Arlington, Texas
35
Categorize by type of STR (Type 1)
PROS: Allows STRS to continue operating Provides for accountability of property owner to monitor
guests Allows for tracking & monitoring
City of Arlington, Texas
36
Categorize by type of STR (Type 1)
CONS: Staff time required for monitoring and enforcement Difficult to enforce
City of Arlington, Texas
37
Categorize by type of STR Type 2 (Not Owner-Occupied) Located in RE, RS-20, RS-15, RS 7.2, or RS-5 zoned districts Are not owner-occupied or associated with an owneroccupied principal residence Provides for no more than 3% of single-family residential units within the census tract of the property are STR
City of Arlington, Texas
38
Categorize by type of STR (Type 2)
PROS: Allows STRS to continue operating/limits the concentration
in any single neighborhood Allows for tracking & monitoring
City of Arlington, Texas
39
Categorize by type of STR (Type 2)
CONS: Potential challenges over fairness/too many current STRs
operating in one neighborhood or census tract May not reassure residents that neighborhood integrity is
a priority
City of Arlington, Texas
40
Categorize by type of STR (Type 3) Type 3 (Not Owner-Occupied) Located in RMF-22 zoned districts Are not owner-occupied or associated with an owneroccupied principal residence Are part of a multifamily use (apartments/condominiums) Provides for no more than 3% of the total number of dwelling units at the property and no more than 3% of the total number of dwelling units located within any building at the property are STR City of Arlington, Texas
41
Categorize by type of STR (Type 3)
PROS: Allows STRS to continue operating/limits the concentration
in any single complex Allows for tracking & monitoring
City of Arlington, Texas
42
Categorize by type of STR (Type 3)
CONS: Potential challenges over fairness/too many current STRs
operating in any single complex
City of Arlington, Texas
43
Policy Consideration
Pros
Cons
Utilize third-party vendor to provide STR • Reduces staff location and operator data (Offset by permit research time fee) • Increases accuracy of identifying STRS
• May impose additional operational costs for STR owners
• Reduces staff time • Reassures residents that neighborhood integrity is a priority
• May impose additional operational costs for STR owners
Utilize third-party vendor to provide telephone/email hotline for residents (Offset by permit fee)
Discussion
