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HomeMy WebLinkAbout2023 12 20 - Short Term Rentals - Brent butler 1 JEFFERSON COUNTY PLANNING COMMISSION TO: Honorable Chair and Members of the Planning Commission FROM: Brent A. Butler, AICP, Chief Strategy Officer DATE: December 20, 2023 SUBJECT: Regulations governing rentals for less than 30 days STATEMENT OF ISSUE: In consultation with the Board of County Commissioners (“BoCC” or “Board”), the County Administrator requested the Chief Strategy Officer (“CSO”) to review short-term rental regulations as one of his six assigned projects. Commissioner Kate Dean is the CSO’s liaison to the BoCC on this planning topic. To consider revisions to the regulations governing short term rentals, which are defined as those rentals that are for less than 30 days and cover a broad range of housing types commonly known among other terms as short-term rentals, transient accommodations, HIP Camp, Glamping, Arbnb, VRBO, home sharing, the CSO discussed short term rentals with the BoCC on November 6, 2023, as part of their regular Monday agenda. Outreach Proposal To begin the process, the CSO proposes convening meetings within each of the three commissioner districts during the month of January 2024 with the goal of hearing from community members living in that district prior to drafting an ordinance for the Planning Commission’s review. This approach enables the CSO, and the Commissioners of that district to understand any local variation in how the ordinance should be crafted. This approach borrows from the geographical approach used by San Juan Island County, whose ordinance includes maximum number of rentals (caps) based on geography. At each of these meetings, the CSO will request that the Commissioner for that district attend. To reduce the workload and burden on staff, the CSO would publicly notice these meeting but request that only those Commissioners of that district to attend. This avoids triggering the additional responsibilities and work associated with meetings convened in accordance with the open public meetings act. The Commissioners in attendance would be able to report out to the Planning Commission at their regular meeting. Current Regulations As part of this agenda item, the CSO seeks to share current regulations. Significant distinctions exist between transient rentals in structures for which a septic permit was designed and properly permitted and HIP Camp or glamping type accommodations, which may not include septic permit approvals unless permitted in accordance with the conditional use provisions of the Jefferson County Code (JCC). For purposes of this agenda item, HIP Camp type of short-term rentals are considered separately, and identified as transient rentals without structures. 2 Considerations Affecting Both Types of Short-Term Rentals The municipal research service center has broadly discussed the concerns associated with these types of uses and writes: “Airbnb and other short-term transient rental websites, such as HomeAway and FlipKey, seem to be in the news on a daily basis. Depending upon your perspective, these commercial enterprises can be many things: shining examples of the “sharing economy,” unwelcome intruders into established residential neighborhoods, ways for homeowners to help pay their monthly mortgages, businesses skirting their local financial and regulatory obligations, and the list goes on. Regardless of your feelings, it is probably time to consider whether your community needs to establish or update its short-term transient rental regulations. Some local governments have focused their zoning regulations on more traditional travel accommodations, like hotels/motels, and tried to prohibit short-term rentals altogether, but such bans have met with limited success. So, if a community wants to adopt standards to regulate short-term transient rentals, where should it start? I would advise that local governments begin by identifying what issue(s) they want to address. Is it: 1. Lack of lodging and sales tax collection on these short-term rental stays; 2. Unregulated traffic, parking, and noise impacts on the surrounding neighborhood; and/or 3. Non-compliance with life/safety standards that are commonly applied to other types of lodging establishments (such as hotels, motels, and bed-and-breakfasts)?” You can access more information on this topic by going to: https://mrsc.org/stay-informed/mrsc-insight/february-2016/local-government-catching-up-with-airbnb Transient Rentals without Structures (TRWS) Community issues surrounding short term rentals of existing housing units is similar to but somewhat different than the issues surrounding the renting of properties in open space areas without structures which, as stated, are currently permitted through the conditional use permit process. Generally, such uses are considered for approval under the “small-scale recreation” requiring a conditional use permit after public notice, a written public comment period and, at the discretion of the administrator, a public hearing procedure. While there has been significant concern raised by abutting neighbors in Marrowstone Island and the Tri-Area about unauthorized HIP camps or glampers in the past year, staff generally sees the existing conditional use permit process as working. Staff has, however, looked at ways to streamline this process and in the analysis, identifies the potential pitfalls. Permitting pathway for TRWS As stated, Jefferson County established a permitting process for short term rentals such as HIP Camps, which involve a conditional use permit as set forth in JCC 18.15.040 Categories of land use. Significantly, this is similar to how Clallam County also known as a tourist destination permits these types of uses. 3 Short Term Rentals in Structures (STRS) Short term rentals, alternatively, are broadly permitted throughout the county in the zoning districts abbreviated as AG, CF, RF,IF, RR:1:5,RR1:10,RR1:20 & RVC and also in the Port Ludlow Master Planned Resort’s RC/CF Zone. Additionally, the county code requires that at least 65% of the accommodations in the Pleasant Harbor Master Planned Resort consist of short-term rentals, as it is envisioned as a tourist destination (see JCC 17.60.070 Resort cap and residential use restrictions and JCC 18.15.123 Allowable uses, where subsection (2) clearly states that short term visitor accommodations, including, but not limited to, hotels, motels, lodges, and other residential uses…constitute no less than 65%). It is also more broadly discussed in the definitions as permissible in Master Planned Resorts (see, 18.10.130 M definitions “Master Planned Resort”, and JCC 18.15.126 Requirements for master planned resorts) ANALYSIS Short term rentals in Structures Currently the county has identified 76 short term rentals (exclusive of HIP Camp and Glamping). A previous discussion with Granicus, a for-profit firm which tracks these and provides enforcement services, more than 400 short term rentals were identified suggesting a gargantuan enforcement challenge. Currently, Jefferson County generally addresses two of the three core issues identified by the municipal 4 research service center, namely: (1) Spillover impacts, and (2) Life-safety. Regulations are established in JCC 17.60.070, 18.10.130M, 18.10.201 T, which permit this use, may not adequately address the enforcement challenge associated with them. Additionally, tourists are frequently unfamiliar with how to shut off water or electricity in the event of an issue, where to walk there dogs, as there are communities that prohibit off-leash dogs. Nonetheless, as part of this review, the county could borrow legislation that looks at additional regulations that touch upon geography, e.g., San Juan Island County or occupancy, e.g., Chelan County, which establishes a tiered system. What is the difference between the tiers? • Tier 1: The short-term rental is owner-occupied and has an occupancy limit of no more than eight people. Caps do not apply to Tier 1 operations. • Tier 2: The short-term rental is nonowner-occupied and has an occupancy limit of no more than 12 people. Caps apply. • Tier 3: The short-term rental can be owner- or nonowner-occupied and has a limit of no more than 16 people. Caps apply. Short Term Rentals without Structures HIP Camp/Glamping - At this point, the county has not received any applications to establish a HIP Camp or its alternative, glorious camping sites. A pre-application did occur. As stated, Jefferson County could establish a new process but staff is not yet aware of other models outside of the conditional use permitting process or would welcome ideas about how best to streamline permitting given that the most significant issues arise out of the septic and solid waste issues. RECOMMENDATION: Consider the outreach proposal and any specific areas of interest you may have regarding the existing regulations.