HomeMy WebLinkAboutHEARING CONTINUATION re STRs JEFFERSON COUNTY
BOARD OF COUNTY COMMISSIONERS
AGENDA REQUEST
TO: Board of County Commissioners
Mark McCauley, County Administrator
FROM: Josh D. Peters,AICP, Community Development Director
Brent A. Butler, AICP, Chief Strategy Officer
Greg Ballard, Development Code Administrator
DATE: March 24, 2025
SUBJECT: HEARING CONTINUATION and POSSIBLE ACTION re: Amendments to Jefferson
County Code regarding Short-Term Rentals (STRs)
STATEMENT OF ISSUE:
The Board of County Commissioners(BoCC)adopted Ordinance 03-0610-24 on June 10, 2024,
establishing a moratorium on acceptance and processing of development permit applications for Short-
Term Rentals(STRs, rentals for less than 30 days), as regulated under Title 18 of the Jefferson County
Code(JCC). The moratorium ends at 11:59 p.m. on April 7,2025. The BoCC began deliberations the
Planning Commission's recommended short-term rental (STR)ordinance during a duly noticed hearing
on March 17, 2024. The BoCC will continue deliberations on March 24, 2025.
Attachments to this Agenda Request Appendixes:
A. Comparison Chart(compares Planning Commission's Recommended STR Ordinance, DCD
staff recommended changes,and provides an explanation for each section).
B. Combined Version of STR Ordinance (includes both PC and DCD recommendations and
annotated explanations)
C. PC Recommendation(as originally submitted by the Planning Commission)
D. DCD Staff Recommendations to PC Recommendation((March 14, 2025, as amended March
18, 2025)
E. Zip Code Table(2020 Census housing units)
F. Planning Commission Materials(written comments received during formal comment period)
BACKGROUND:
As required by the approved work plan for Ordinance No. 03-0610-24,the PC held a public hearing on
February 5, 2025 and deliberated on the record during the February 19, 2025 regular meeting. The PC
recommended a draft STR ordinance to the BoCC as required by JCC 18.05.050(2)and 18.45.090(3).
The BoCC held a workshop on March 3, 2025 to review the PC recommended STR ordinance,
determined that a change in the PC's recommended STR ordinance was necessary and chose to hold its
own public hearing pursuant to JCC 18.45.090(4)(b). Thus,the BoCC is authorized by JCC 18.45.090(4)
to modify the PC's recommended STR ordinance.
The BoCC approved a notice of public hearing for March 17, 2025, 10:30 AM,which was published in
the March 5 and 12 editions of The Leader newspaper. On March 14,2025,DCD staff recommended
1
changes to the PC's recommended STR ordinance. DCD's recommended changes to the PC's
recommended STR ordinance were posted for public viewing on March 14, 2025.
The BoCC held a public hearing on March 17,2025.The BoCC considered the DCD staff's
recommended changes at the public hearing. Representatives from the PC provided testimony as to the
PC's recommended STR ordinance during the presentation portion of the hearing. The BoCC heard public
comments and considered the PC's recommended STR ordinance. The BoCC closed the hearing to further
oral testimony, but continued the written comment period until 4:00 p.m. on Friday March 21,2025. The
BoCC may take action on the STRs after deliberations on the BoCC's March 24 agenda, which is set to
begin at 2:00 p.m.
DCD Staff participated in the BoCC's deliberations on March 17, 2025 and discussed its proposed
changes to the PC's recommended STR ordinance. Based on the deliberations, DCD has additional
suggested changes to the PC's recommended STR ordinance. These addition suggested changes are
shown on DCD Staff's proposed revisions in Appendix B (Combined Ordinance). Appendix B
(Combined Ordinance)tracks changes to the PC's recommended STR ordinance that were published on
March 14, 2025 and the additional DCD staff recommendations based on the BoCC's deliberations on
March 17, 2025.
The moratorium expires on April 7, 2025,though it may be lifted sooner, along with establishment of
updated STR development regulations.
ANALYSIS:
Consistent with RCW 36.70.630 and JCC 18.45.090(4),the BoCC may adopt changes to the PC
recommendation by conducting its own public hearing. RCW 36.70.630 requires the BoCC to"adopt its
own findings of fact and statement setting forth the factors considered at the hearing and its own analysis
of findings considered by it to be controlling."The BoCC may rely upon DCD staff recommendations to
assist the BoCC during deliberation. DCD staff has been collaborating with the Prosecuting Attorney's
Office (PAO)to review proposed updates to the STR development regulations comply with state and
federal laws. The objective of the staff recommendation aims to align with Resolution 17-19 on regulatory
reform. All versions of the STR ordinance have been reviewed by the PAO.
An outline of key DCD staff recommendations to the proposed STR ordinance is below. DCD staff also
prepared a Comparison Chart(Appendix A)to help illustrate differences between the recommendations.
Key DCD staff recommendations include:
• Clarify the permitting process is dependent on the number of bedrooms or occupants in Table
3-1;
• (3)(n) is revised to include a 6-month grace period to all STRs prior to implementation of the
4%cap; also corrected the percentage of STRs allowed in the Port Townsend zip code from
20%to 30%based on the 2020 census data;
• (4)(a)(ii) is revised to reflect the grace period is 6 months, consistent with the provision in
(3)(n);
• (4)(b) is updated to address those existing STRs that were permitted after January 16, 2001,
the effective date of the Unified Development Code(UDC);
• The renting of rooms for less than 30 nights within an owner-occupied permitted dwelling is
not subject to the STRs permit requirements. These type of hospitality establishments will be
2
reviewed pursuant to JCC 18.20.210(1)Bed and Breakfast Inns or(2)Bed and Breakfast
Residence. The STRs regulations apply to the renting of the entire primary of accessory
dwelling; and
• Based on feedback during the March 17 hearing, DCD staff has included a new provision
(4)(f), requiring the short-term rental operator shall include a valid permit number on any
advertisement.
FISCAL IMPACT/COST-BENEFIT ANALYSIS:
The General Fund supports this planning process.No significant fiscal impact from the decision to hold a
public hearing, other than the fee charged by the newspaper of record.
RECOMMENDATIONS:
(1) Continue the public hearing on March 24, 2025, beginning at 2:00 p.m., deliberate, and potentially
take final action on the proposed amendments to Jefferson County Code regarding Short-Term
Rentals(STRs).
(2) Consider and possibly adopt DCD staff s proposed changes reflected in Appendix B (Combined
Version).
(3) If no final action is taken on March 20, provide DCD staff with clear guidance regarding whether
BoCC desires to continue the public hearing to April 7, 2025 or extend the moratorium.
REVIEWED BY:
y -,
-."'4
Mark McCauley,b
unty Administrator Date
3
APPENDIX A
Comparison Chart
SHORT-TERM RENTALS-The followings denote the main differences among the current Jefferson County Code,the Planning
Commission(PC)Recommendation and Staff Recommendation:
Section Number Jefferson County Planning Commission's Staffs Recommended Explanation
Code(JCC),current Recommended STIR Changes
through Ordinance I Ordinance
03-0610-24,passed
June 10 2024
Appendix A—Changes to JCC 17,60,070
JCC 17.60.070 '... Short-term visitor Revised to read less than Revised"days"to DCD recommends
accommodation units 30 days. "nights." revising for consistency
and short-term rental with chapter 64.37 RCW,
units shall be construed which uses"nights"
to mean occupancies instead of"days."
eaual to or less than 30
days."
Appendix B--Chapter 18.10 3CC
JCC 18.10 "Transient Added new Definitions in Added new Definitions in DCD recommends not
accommodations" JCC 18.10.120 for JCC 18.10.190 for using added definition of
means a commercial "Landlord", 18.10.160 for "Short-term rental", "landlord"as
use involving the rental "Primary Residence", "Short-term rental unnecessary,and to
of any structure or 18.10.190 for"Short-term advertisement","Short- avoid a conflict with
portion thereof for the rental","Short-term rental term rental operator", chapter 64.37 RCW,that
purpose of providing advertisement","Short- "Short-term rental might lead to an
lodging for periods less term rental operator", platform"; unnecessary preemption
than 30 days. "Short-term rental challenge.
platform"; Removed Definitions in
"Transient residence"or JCC 18.10.200 for DCD recommends not
"transient ADU"means Removed Definitions in "Transient adding"Primary
a single-family JCC 18.10.200 for accommodations"and Residence".This
residential unit or ADU "Transient "Transient residence"or definition is related to a
used accommodations"and "Transient ADU" residency requirement
"Transient residence"or that is not
"Transient ADU" recommended.
Page 1 of 14
Section Number Jefferson County Planning Commission's Staff's Recommended Explanation
Code(JCC),current Recommended STR Changes
through Ordinance Ordinance
03-0610-24,passed
June 10 2024
for short-term transient
occupancy(for periods
less than 30 days).
Appendix C—Changes to]CC 18,15,040,Table 3-1
JCC Table 3-1 Residential Uses: Residential Uses: Residential Uses: DCD recommends
Transient rental of Short-Term Rentals with 5 Short-Term Rentals with revising to use the
residence or accessory or fewer guest rooms 5 or fewer guest rooms number of guest rooms
dwelling unit or 10 or fewer or occupants for
Commercial Uses: Short- occupants consistency with building
Term Rentals with more code. This changes also
than 5 guest rooms and Commercial Uses: Short- would address
more than 10 occupants Term Rentals with more environmental health
than 5 guest rooms and concerns.
more than 10 occupants
Appendix D—Changes to]CC 18.20.210
JCC 18.20.210(3) Transient Residence or Short-Term Rental with Short-Term Rental.The DCD recommends
Transient Guest House five or few guest rooms. following standards consolidating Sections
(Accessory Dwelling The following standards apply to all short-term (3)and (4) into Section
Unit).The following apply to all short-term rentals of single-family (3).
standards apply to all rentals of single-family residential units or
short-term (less than 30 residential units or portions thereof:
days)transient rentals portions thereof:
of single-family
residential units and
guest houses(ADUs)or
portions thereof:
JCC 18.20.210(3)(a) The transient residence No change No change N/A
or guest house shall be
Page 2 of 14
Section Number Jefferson County Planning Commission's ! Staff's Recommended Explanation
Code(JCC),current Recommended STR Changes
through Ordinance Ordinance
03-0610-24,passed
June 10 2024
operated in a way that
will prevent
unreasonable
disturbances to area
residents.
JCC 18.20.210(3)(b) At least one additional Required at least one Required all parking recommends revising to
off-street parking space additional off street spaces onsite as tighten the parking
shall be provided for parking for the STR determined by DCD requirements and makes
the transient use in them all onsite
addition to the parking
required for the
residence or guest
house.
JCC 18.20.210(3)(c) If any food service is to No change No change N/A
be provided the
requirements for a bed
and breakfast residence
must be met.
JCC 18.20.210(3)(d) No outdoor advertising No change New: Allows one 4 sq.ft DCD recommends
signs are allowed. identification sign revising to aid the
renters in finding the
dwelling
JCC 18.20.210(3)(e) The owner or lessee Changed to read: Short- The cap provision is DCD recommends
may rent the principal term rentals shall not addressed and further revising to further define
residence or the guest exceed 4%of the clarified in(3)(n): For rationale for 4%so it is
house on a short-term unincorporated Jefferson six months after the clear how cap was
basis, but not both. County housing unit total adoption of this chapter, determined and will be
not including: DCD will accept all applied.
i. Master planned resorts short-term rental
Page 3 of 14
Section Number Jefferson County Planning Commission's Staff's Recommended Explanation
Code(JCC),current Recommended STR Changes
through Ordinance Ordinance
03-0610-24,passed
June 10 2024
ii. Hospitality permits applications.After this
approved under prior six-month grace period,
regulations,or the following limit will
iii. Short-term rentals for apply to the renting of
less than 30-days the entire primary or
predating hospitality accessory dwelling(i.e.,
regulations. excluding the renting of
STRs occupied by the
landowners).Short-term
rentals within Master
Plan Resorts(MPR)are
excepted from the cap
on short-term rentals.
Short-term rentals shall
be limited to four
percent of the dwellings
in unincorporated
Jefferson County
housing,as determined
by DCD. Based on OFM
(Office of Financial
Management)data,
there are 11,694
dwellings outside of
MPR. Four percent of
these dwellings would
equate to 468 short-
term rentals allowed at
this time.The short-
term rentals will be
Page 4 of 14
Section Number Jefferson County Planning Commission's Staff's Recommended Explanation
Code(JCC),current Recommended STR Changes
through Ordinance Ordinance
03-0610-24,passed
June 10 2024
distributed prepositional
based on the housing
stock in each zip code
(i.e., if Port Townsend
zip code has 30 percent
of the housing stock,
they would be allowed
30%of the short-term
rentals based on the
U.S. Census). Every year
DCD will update the
number of dwelling
units,the number of
short-term rentals
allowed and the number
of short-term rental
permits that have a valid
permit from DCD. If the
maximum number of
short-term rentals is
reached, DCD will have
a waiting list for new
short-term rentals.
]CC 18.20.210(3)(f) Where there are both a Changed to read: Subject Removed and addressed DCD recommends
principal residence and to the established in(3)0): A short-term revising the residency
a guest house(i.e., an maximum numbers of rental operator shall not requirement.The
accessory dwelling short-term rentals, rentals hold more than one Planning Commissions'
unit),the owner or for less than 30 days are hospitality permit for a recommended STR
lessee must reside on permissible where the land short-term rental in ordinance would limit
the premises. STR to one landowner
Page 5 of 14
Section Number Jefferson County i Planning Commission's Staff's Recommended Explanation
Code(JCC),current Recommended STR Changes
through Ordinance Ordinance
03-0610-24,passed
June 10 2024
owner is a resident of unincorporated Jefferson only and would be
Jefferson County and the County. difficult to enforce.
landowner or a qualified
representative is in
Jefferson County during
the entire rental
period.
]CC 18.20.210(3)(g) Transient Changed to read: In no Same as 3(e): In no DCD recommends
accommodations must case shall the short-term case shall the short-term moving the subsection
meet all local and state rental exceed the design rental exceed the design for better context.
regulations, including capacity of the permitted capacity of the
those pertaining to on-site sewage system. permitted on-site
business licenses and sewage system.
taxes.
]CC 18.20.210(3)(h) N/A New: In each of the See(3)(n)above and DCD recommends
county's zip codes, rentals 4(c): revising to further define
for less than 30 days shall The number of new rationale for 4%so it is
not exceed the short-term rentals limit clear how cap was
number established by the addressed in section determined and will be
Board of County (3)(n)shall be reduced applied.
Commissioners. In the by the number of pre-
event the Board has not existing short-term
established maximum rentals addressed in
numbers of rentals(cap) Section 4(a)and(b).
in each zip code,the cap
in each zone shall not
exceed 4%of the total
number of housing units
as estimated by the Office
of Financial
Page 6 of 14
Section Number Jefferson County Planning Commission's Staff's Recommended Explanation
Code(JCC),current Recommended STR Changes
through Ordinance Ordinance
03-0610-24,passed
June 10 2024
Management.
JCC 18.20.210(3)(i) N/A New: Short-Term Rental Addressed in(3)(e): DCD recommends
permits shall be inspected Short-Term Rental clarifying the annual
annually. Permit Renewal: inspection is a part of
(i)Application for the renewal process.
renewal shall occur
annually and at least 30
days prior expiration of
the hospitality permit for
a short-term rental.
(ii)Renewal fees for a
hospitality permit for a
short-term rental shall
be per the applicable fee
schedule.
(iii) Renewal of an
existing permit for a
short-term rental
requires an inspection
addressing fire,safety,
and health
requirements.
(iv) Failure to renew a
permit for a short-term
rental may result in
short-term rental not
being allowed if the limit
addressed in Section
3 n is met.
Page 7 of 14
Section Number Jefferson County Planning Commission's Staff's Recommended Explanation
Code(JCC),current Recommended STR Changes
through Ordinance Ordinance
03-0610-24,passed
June 10 2024
JCC (3)(1) N/A New: Short-Term Rental Removed this subsection DCD recommends
permits shall only be valid removal of this
for three years for permit subsection based on
holders whose primary difficulty to implement
residence is not on site. residency requirement
and unfair for STR to be
limited to 3 years if it
otherwise satisfies all
the other requirements
of this section.
JCC 18.20.210(3)(k) N/A New: Short-term rentals See(3)(g): Short-term
shall meet all local and rentals shall meet all
state regulations, including local and state
those pertaining regulations, including
to business licenses, those pertaining to
liability insurances,and business licenses,
taxes, and registering with liability insurances, and
the Washington taxes,and registering
Department of Revenue as with the Washington
required by RCW Department of Revenue
64.37.040. as required by RCW
64.37.040.
New:JCC N/A New: Addressed standards Consolidated DCD recommends this
18.20.210(4) for STR with more than requirements of Section change to for
five guest rooms. (4) into Section(3). consistency with
Resolution 17-19 on
re ulato reform.
New:]CC 18.20.210 N/A New: A conditional See(3)(k): Short-term DCD recommends this
(4)(d) discretionary use permit rentals with five or change for consistency
shall be re uired. fewer guest rooms and
Page 8 of 14
Section Number Jefferson County Planning Commission's Staff's Recommended Explanation
Code(JCC),current Recommended STR Changes
through Ordinance Ordinance
03-0610-2-},passed
June 10 2024
10 or fewer total with the building code
occupants will require a requirements.
Type I hospitality permit
for a short-term rental.
Mostly the same as the
Planning Commission's
version. See(3)(1)Short
term rentals with 6 or
more guest rooms or
more than 10 occupants
requires a conditional
discretionary permit and
additional building
requirements.
New:JCC N/A New: Short-term rentals Removed limiting STR DCD recommends
18.20.210(4)(e)(i)& shall be located at the within the first 2 years adding a limit to one
(4)(0 landlord's primary of ownership,and the short-term rental permit
residence. Landlords are residency requirement for any operator in
prohibited from renting to and addressed in(3)(j) unincorporated Jefferson
3nd party for less than 30 County. DCD did not
days within first two years prohibit STR for first two
or ownership/lease. years of ownership for
STRs with more than 6
guest rooms.
New: JCC N/A New: Regulatory See subsection (3)(g) DCD recommends
18.20.210(5) Compliance. Short-term rentals shall revising to be more
meet all local and state consistent with RCW
regulations, including 64.37.040.
those pertaining to
business licenses
Page 9 of 14
Section Number Jefferson County Planning Commission's Staff's Recommended Explanation
Code(JCC),current Recommended STR Changes
through Ordinance Ordinance
03-0610-24,passed
June 10 2024
liability insurances,and
taxes,and registering
with the Washington
Department of Revenue
as required by RCW
64.37.040.
New:]CC N/A New: Application, License See subsections(3)(g) DCD recommends
18.20.210(6) and Registration required. and(3)(o),above. revising to enhance
Applications for permits enforcement.
for a short-term rental
shall be on a form
approved by the
director; and subsection
(4)Permitting is
required for all STRs in
the County.
New:]CC N/A New: Legal See subsections(4)(a) DCD recommends
18.20.210(7) Nonconforming Use and(b). revising to include the
("Grandfathering" effective date of the
provision) Unified Development
Code(UDC),and for
consistency with the
definition of legal non-
conforming use:
]CC 18.10.140 N
definitions
"Nonconforming"means
a use,structure, site,or
lot which conformed to
Page 10 of 14
Section Number Jefferson County Planning Commission's Staff's Recommended Explanation
Code(JCC),current Recommended STR Changes
through Ordinance Ordinance
03-0610-24,passed
June 10 2024
the applicable codes in
effect on the date of its
creation but which no
longer complies because
of changes in code
requirements.
Nonconformity is
different than and not to
be confused with
illegality(see"Illegal
use's. Legal
nonconforming lots,
structures,and uses are
commonly referred to as
randfathered."
New: JCC N/A New: Enforcement I See Section 5. This subsection
18.20.210((8) potentially conflicts with
chapter 64.37 RCW.
Enforcement through
title 19 JCC is sufficient
for this chapter.
New: JCC N/A N/A New: (3)(f) DCD recommends
18.20.210(3)(f) adding to make clear
that temporary,
portable,or other
structures not capable of
permanent permits
cannot be permitted as
an STR.
Page 11 of 14
Section Number Jefferson County Planning Commission's Staff's Recommended Explanation
Code(JCC),current Recommended STR Changes
through Ordinance Ordinance
03-0610-24,passed
June 10 2024
New: JCC N/A N/A New: (3)(1 DCD recommends
18.20.210(3)(h) adding a requirement
that an STR permit
cannot be transferred to
a separate dwelling.
New: JCC N/A N/A New: (3)(i) DCD recommends
18.20.210(3)(i) adding a limit prohibiting
renting the principal
residence and the guest
house on the same lot
or parcel on a short-
term basis.
New: JCC N/A N/A New: (3)0) DCD recommends
18.20.210(3)0) adding a limit to one
short-term rental permit
for any operator in
unincorporated Jefferson
County.
New: JCC N/A N/A New: Subsection(3)(k) DCD recommends
18.20.210(3)(k) adding language to
clarify the type of permit
that will be required.
New: JCC N/A N/A New: Subsection(3)(m) DCD recommends
18.20.210(3)(m) adding a requirement
that the STR must meet
state and local standards
for habitability and life
safety conditions.
Page 12 of 14
Section Number Jefferson Coun Plannin Commission's Staff's Recommended Explanation
Code(JCC),current Recommended STR Changes
through Ordinance Ordinance
03-0610-24,passed
June 10 2024
New: ]CC N/A N/A New: Subsection(4)(b) DCD recommends
18.20.210(4)(b) Existing short-term revising and clarifying
rentals that have been the status for existing
permitted by DCD after STRs
January 16,2001 are
allowed to continue,
provided the short-term
1 rental operator renews
the permit and satisfies
all of the requirements
of this section.
New: ]CC N/A N/A New: Subsections 4(c) DCD recommends
18.20.210(4)(c)and and(d). adding a limit related to
d the cap
New: ]CC N/A N/A New: Subsection(4)(e) DCD recommends
18.20.210(4)(e) to clarify renewal revising the renewal
process. language.
New: ]CC N/A N/A New: Subsection (4)(f) Consistent with feedback
18.20.210(4)(f) Permit Number.The from the March 17,2025
short-term rental hearing, DCD
operator must include recommends adding a
the Jefferson County new requirement that
permit number for the valid permit number
short-term rental in all shall be included with
advertisements and any advertisement.This
ensure its prominent should improve
display on platforms and enforcement and
other forums for rental necessary to ensure all
(AirBnB,VRBO, STRs have valid permit.
Crai slist Facebook Violation shall be
Page 13 of 14
Section Number Jefferson County Planning Commission's Staff's Recommended Explanation
Code(]CC),current Recommended STR Changes
through Ordinance Ordinance
03-0610-24,passed
June 10 2024
flyer/poster,etc.)and enforceable under Title
on marketing materials 19.Accountability
such as brochures and measure for health and
websites. It shall be safety.
considered a violation of
this chapter to omit or
provide a false permit
number in any
advertisements.
New: ]CC N/A N/A New: Section(6)Conflict DCD recommends
18.20.210(6) adding this savings
clause to avoid
successful State
preemption claims.
Appendix E—JCC 18,40,040,Table 8-1
Table 8-1 Type I Type I N/A The Planning
Commission's
Hospitality Bed and breakfast inn, recommended STR
establishment permits bed and breakfast ordinance was modified
listed in Table 3-1 in residence and short-term for internal consistency.
]CC 18.15.040 as"Yes". rental permits listed in DCD agrees with this
Table 3-1 in]CC Planning Commission
18.15.040 as"Yes". recommendation.
Page 14 of 14
APPENDIX B
Combined Version (includes both PC and DCD
recommendations and annotated explanations)
STATE OF WASHINGTON
COUNTY OF JEFFERSON
An Ordinance Repealing Ordinance 03-0610-24, ORDINANCE
a Moratorium on Acceptance and Processing of
Application for Hospitality Establishment
Permits for Transient Residences or Transient
Guest Houses pursuant to Jefferson County Code
(JCC) 18.20.210(3);and Adopting Amendments
to JCC 17.60, General Provisions of Title 17
Master Planned Resorts;JCC 18.10 Definitions;
JCC 18.15 Land Use Districts; JCC 18.20.200
Home Business; JCC 18.20.210 Hospitality
establishments and JCC 18.40, Permit
Application and Review Procedures/ SEPA
Implementation
WHEREAS,the Washington Constitution,Article XI, Section 11,confers upon county
legislative authorities the police power to adopt regulations necessary to protect the health,safety,
and well-being of its residents;and
WHEREAS,RCW 36.32.120(7)provides that the county legislative authorities shall
make and enforce,by appropriate resolutions or ordinances,all such police and sanitary
regulations as are not in conflict with state law;and
WHEREAS,police power is that inherent and plenary power which enables prohibition
of all things hurtful to the comfort,safety and welfare of society;and
WHEREAS,the scope of police power is broad,encompassing all those measures which
bear a reasonable and substantial relation to promotion of the general welfare of the people;and
WHEREAS,homelessness and housing affordability directly and indirectly impact the
health, safety, and well-being of county residents and continues to present local, regional, and
national challenges arising out of many social and economic factors;and
WHEREAS, Jefferson County enacted several measures to address the shortage of
affordable,transitional,supportive,and emergency housing;and
WHEREAS, in 2017, the Jefferson County Board of County Commissioners adopted
Resolution No.35-17 to declare that an emergency exists with respect to the availability of housing
that is affordable for those households earning 80 percent or less of the Jefferson County median
family income,which the U.S.Department of Housing and Urban Development identifies as"low
income;"and
1
WHEREAS, as identified in the 2019 Jefferson County Community Health Assessment
Report:Summary Findings,'the lack of affordable housing continues to present local challenges,
especially for older adults,young families,and the working class;and
WHEREAS, in Resolution No. 63-19, the Jefferson County Board of Commissioners
adopted a Five-Year Homeless Housing Plan, Making Homelessness a Singular Occurrence—
Homelessness Crisis Response and Housing Five-Year Plan for Jefferson County, "to establish a
long-term,systematic effort to address the homelessness and affordable housing crisis through a
data focused vision for Jefferson County;"and
WHEREAS,Jefferson County adopted Ordinance No. 1 I-1221-20,imposing a sales and
use tax for affordable housing and supportive services, in accordance with House Bill 1590
(chapter 222, Laws of 2020)and RCW 82.14.530,to address the local challenge presented by
homelessness and declining affordability;and
WHEREAS,Jefferson County adopted Ordinance No. 05-0613-22 related to the siting,
establishment, and operation of temporary housing facilities for unsheltered and unhoused
individuals and families in unincorporated Jefferson County to address the local challenge
presented by homelessness and declining affordability;and
WHEREAS, Jefferson County adopted Ordinance No. 04-1009-23 referenced as the
Commercial Property Assessed Clean Energy and Resilience(C-PACER)Program to reduce the
debt servicing costs associated with commercial property improvements and construction
including multifamily structures with five or more dwelling units to incentivize multifamily
construction,rehabilitation,and repair to implement sustainable practices;and
WHEREAS, Jefferson County in partnership with the City of Port Townsend and the
Housing Fund Board identified sites for transitional,supportive,and emergency housing,such as
Caswell-Brown Village,to create an emergency shelter to address the foregoing challenges;and
WHEREAS, the Board of County Commissioners amended the Port Townsend Urban
Growth Area (PTUGA) boundary via Ordinance No. 09-1209-24 to provide for transitional,
supportive,and emergency housing including,among others,the Caswell-Brown Village site to
accommodate continuum-of-care special purpose housing to address the foregoing challenges;and
WHEREAS,in partnership with the City of Port Townsend,Jefferson County advanced
new affordable housing opportunities in 2024 through pre-approved residential building plans,
where sweat equity,energy efficient designs,and expedited permitting may reduce housing costs
to partly address the lack of housing;and
WHEREAS,the Jefferson County Comprehensive Plan contains a Housing Action Plan
as Exhibit 3-72 that identifies the need to"evaluate short-term rentals to ensure such uses do not
https://www.co.iefferson.wa.usDocuntentCenter/View/19190/20191104 JetTerson CHA-Stmtmary-
Report 2019 v2,Accessed January 5,2025.
z See:ems://www.co.efferson.wa.us/DocumentCenter/View/18001/Jefferson-CP-2018_12,at 3-19 Accessed
January 5,2025.
2
further restrict the housing supply for year-round residents"as one of six bulleted tasks to remove
potential barriers to housing;and
WHEREAS,the county held three public meetings regarding short-term rentals,one each
in Cape George and the Tri Area and a third hybrid meeting in Quilcene,during March 2024;and
WHEREAS,county staff presented the findings of these meetings to the Jefferson County
Planning Commission at its regularly scheduled July 17,2024 meeting;and
WHEREAS,on December 4,2024,county staff obtained clarification on how to interpret
the Planning Commission's July 17, 2024 preliminary proposal regarding limiting short-term
rentals for less than 30 days and exemptions;and
M HEREA on Februw,5. 2025. the Planning Commission held a duly noticed vublic Commented[etplaintl:New"Whereas'clauses were
hearing to receive testimony on the short-term rentals proposals;and added to reflect the public process that occurred since the
Planning Commission considered the draft ordinance
N�11 F:RF.AS,on February 19,2025,the Planning Commission deliberated on the testimony recommended by DCD.
and record:and
WHEREAS.on March 3,2025,the BoCC held a workshop on the Planning Commission's
recommendation, and the BoCC chose to hold their own public hearing on the proposed
amendments to the relevant sections of the Jefferson County Code;and
WHEREAS, the BoCC held their own hearing on March 17. 2025 and listened to
presentations by the Planning Commission and DCD staff representatives, and heard public
testimony,and
WHEREAS,the BoCC extended written public comment through Friday.March 21,2025
at 4 PM;and
WHEREAS,the BoCC continued deliberations on March 24,2025;and
WHEREAS, the Jefferson County Department of Community Development (DCD)
assumes responsibility for the environmental review and procedural steps as the"Lead Agency"
pursuant to WAC 197-11-926(1);and
WHEREAS,�eM so i Ceuntyl)Cd analyzed the proposed legislation in accordance with Commented[e,talelntl:Clariscation.
the State Environmental Policy Act(SEPA),as summarized in an associated SEPA checklist,and
finds that adoption of this non-project action will not result in a probable significant adverse impact
to the environment;
NOW, THERFORE, BE IT ORDAINED BY THE BOARD OF COUNTY
COMMISSIONERS OF JEFFERSON COUNTY,STATE OF WASHINGTON as follows:
Section 1.Findings of Fact.The Board of County Commissioners(BoCC)adopts the recitals above
(WHEREAS clauses)as their own findings of fact for this ordinance.
3
Section 2. Purposes. The purpose of this ordinance is to implement the Comprehensive Plan
Housing Element which contains an Action Plan as Exhibit 3-7.3 Under an Action listed as Remove
Potential Barriers to Housing,the Action Plan states:"Evaluate short-term rentals.To ensure such
uses do not further restrict the housing supply for year-round residents,the County could examine
the prevalence of short-term rentals and determine if a registration program and limits on numbers,
zones or locations are appropriate."Additionally,this exhibit states:"Evaluate short-term rentals
using available local and state data sources."It also repeats the above:"Determine if a registration
program and limits on numbers, zones, or locations are appropriate to help ensure a sufficient
housing supply for year-round residents."
Section 3.Repeal Prior Ordinance.This Ordinance repeals Ordinance No.03-0610-24.
Section 4.Modification of the Jefferson County Code.JCC 17.60.070 shall be amended and as set
forth in Appendix A.
Section 5.Modification of the Jefferson County Code.Chapter 18.10 JCC shall be amended as set
forth in Appendix B.
Section 6.Modification of the Jefferson County Code.JCC 18.15.040,Table 3-1 shall be amended
as set forth in Appendix C.
Section 7. Modification of the Jefferson County Code. JCC 18.20.200 and 18.20.210 shall be
amended as set forth in Appendix D.
Section 8.Modification of the Jefferson County Code.JCC 18.40.040,Table 8-1 shall be amended
as set forth in Appendix E.
Section 9.Severability. The provisions of this ordinance are declared separate and severable. If
any section,clause,sentence,or phrase of this chapter is held to be invalid or unconstitutional by
any court of competent jurisdiction,that holding shall in no way affect the validity of remainder
of the code or application of its provision to other persons or circumstances.
Section 9.SEPA Compliance. DCD issued a threshold Determination of Non-Significance
(DNS)on January 22,2025.
Section 10.Effective Date. This Ordinance shall take effect immediately upon adoption by the
Board of County Commissioners.
(SIGNATURES FOLLOW ON THE NEXT PAGE)
3 See:https://www.co.jefferson.wa.us/DocumentCenter/View/18001/Jefferson-CP-2018 12,at 3-19 Accessed
January 5,2025.
4
APPROVED and ADOPTED this day of ,2025.
JEFFERSON COUNTY BOARD OF
COMMISSIONERS
Heidi Eisenhour,Chair
Greg Brotherton,Member
Heather Dudley-Nollette,Member
SEAL:
ATTEST:
Carolyn Gallaway,CMC Date
Clerk of the Board
Approved as to form only:
Philip Hunsucker Date
Chief Civil Deputy Prosecuting Attorney
5
APPENDICES
Proposed Amendments to Jefferson County Code(JCC)Title 17 and Title 18,pertaining to
Hospitality Establishments.
Strikethrough(e.g., ^• )denotes a deletion;underline denotes an addition.
6
APPENDIX A
17.60.070 Resort cap and residential use restrictions.
Pursuant to Ordinance 01-0128-08,the Pleasant Harbor MPR in total shall have a development
cap of up to 890 residential units;provided,however,short-term visitor accommodation units
and short-term rental units shall constitute not less than 65 percent of the total units including,
but not limited to,hotels,motels,lodges,and any residential uses allowed under each zone.
Short-term visitor accommodation units and short-term rental units shall be construed to mean
occupancies less than 30 Commented[explain3l:DCD revised for consistency
cap of 56,608 square feet of resort commercial,retail,restaurant,and conference space.[Ord.3- with chapter t,a:-RCW,which uses"nights"instead of
18§2(Att. 1)] -days'
7
APPENDIX B
The following changes are made to Chapter 18.10 JCC:
I18.10.120r.Defi of the owner,lessar.0-F hot Rol mited to.BR agent.a
Fesident m""'"'"'e" ""O•""`•'•"O•'"'""e" _/'!CommteMted[lxplaln4]:DCD recommends not using
added the definition of`landlord"as unnecessary,and to
118.10.160 P definkions. avoid a conflict with chapter 64_37 RCW,that might lead to
an unnecessary preemption challenge.
Commented[explains]:DCD recommends not adding
this definition. The definition is related to a residency
requirement that is not recommended.
18.10.190 S Definitions.
"Short-term rental"means a lodging use,that is not a hotel,motel,or bed and breakfast,in which
a primary or accessory dwelling unit,or portion thereof,is offered or provided to a guest by a
short-term rental operator for a fee for fewer than thirty consecutive nights,as set forth in RCW
64.37.010(9)(a).
"Short-term rental advertisement"means any method of soliciting use of a dwelling unit for
short-term rental purposes.
"Short-term rental operator"or"operator"means any person who receives payment for owning
or a dwelling unit,or portion thereof,as a short-term rental unit.
"Short-term rental platform"or"platform"means a person that provides a means through which
an operator may offer a dwelling unit,or portion thereof,for short-term rental use,and from
which the person or entity financially benefits.Merely publishing a short-term rental
advertisement for accommodations does not make the publisher a short-term rental platform.
The remaining portions of chapter 18.10 JCC are not changed.
8
APPENDIX C
Changes to JCC 18.15.040,Table 3-1 are as follows:
Table 3-1.Allowable and Prohibited Uses
Remora laadr Rand R.W.U.l Ruml Commercial R...I lndurtn.l Public UGA
bond.
le and
Foml- 1 1 1 Ron Retnur Liahr light Park•, Port
Aetfcdm I Com'enie Light
Co..ie DU/ DU/ DU/ C—ir,l cr- Indo•Ir UdutMaVManufact HnrT' Preserve H.S.
N- Vna nee YegthharhuoJ/Vi IndupdaVCamme
IH,Rurvl S le RI Cruttro Raced id uneg Induatr c and eh
Prhee and Acr Am Acre a Crmsroa dmr Cn,.troad ,d Induur rcivl (Gkn IQuilcene.nd id Recrcad
and laN Inhaldleq • • Cel d ial (Glen Cove) Corc) Eru.kw) Urbee
Gnwl
h Area
SpedOc land RR RR RR
Um AG CFAtF/IF 1:3 1 1:10 1:7e 1 RVC CC NC GC Rat LI/C LI LVM NI PPR UGA
Ilaldendvl
Uma
Short-Term Yea
Yea Yea Y. Yea Y. No No No No No No No No No
Rentals win 5
m fewer guen
romne - See Commented(a binfil:"And"cortectcd to"or."
ef.t>:wv
5 11.
Cm cud - - r I BIB Commented lexding code re This acm,More
shams from
residrnual building code retpdrtmenh:Mora than 5 units Q[
U•a 1CC 10 persons aadd subject a structure to commercial code.
Short-Tenn C(d) C(d) C(d)C(d) C(d) C(d) No No No No No No No No No
Rem.],wnth
nmrt dun 5
goat moms tt _
pnd.`1�u,t�n Commaled lexplelnaJ:-And'corrected to"or.-.
Commented Iexp(eln9l:This adivartent stems from
building code requirement:More than 5 units 2E III persons
would subject a structure to commercial code
9
APPENDIX D
Changes to JCC 18.20.200 and JCC 18.20.210 are as follows:
18.20.200 Home Business__ Commented[expldnl0):Modifications to Section
1820.200 proposed in both the Planning Commission's
Home businesses are accessoryto the rim residential use and are permitted in an dwelling recommended sa ordinance and the ng C proposed
primary p Y g revision are the same. Both the Planning Commission's
unit or accessory structure.All home businesses shall be reviewed as Type I permit decisions, recommended STR ordinance and the DCD proposed
except as exempted under subsection(3)of this section. revision propose deleting"
(1)The following list of uses is not intended to be exhaustive,but rather is intended to be
illustrative of the types of uses:
(a)Artists,photographers,and sculptors;
(b)Authors and composers;
(c)Dressmakers,seamstresses,and tailors;
(d)Home day care;
(e)Home crags such as model making,rug weaving,lapidary work,woodworking,and
ceramics;
(f)Office facility of a minister,rabbi,priest or other similar person associated with a religious
organization;
(g)Business office facility of a salesman,sales representative or manufacturer's representative,
architect,artist,broker,dentist,physician,public relations practitioner,engineer,planner,
instructor in music,arts and crafts,insurance agent,land surveyor,lawyer,musician,real estate
agent,or typist;
(h)Classes of specialized instruction;and
(i)Barbershops and beauty parlors.
18.20.210 Hospitality establishments.[ Commented[explalnll]:No modifications to Section
18.20.210 proposed from the Planning Commission version.
(1)Bed and Breakfast Inns.The following standards apply to all bed and breakfast inns: Both the Planning commission and the DCD revisions
propose the following modification:(f)Guest occupancies
for a fee shall be limited to fewer than thirty consecutive
(a)No more than six guest sleeping rooms shall be accommodated in any bed and breakfast mahts
inn.
(b)If a building is on a federal,state,or local register of historic structures,then the owner
may apply for a bed and breakfast inn for up to 10 rooms.A conditional use permit may be
granted if the historic character and fabric of the building are preserved,if there are no new
10
structures or additions to the existing structure(s),and if all other bed and breakfast inn
standards and restrictions are met.
(c)Meals may only be served to overnight guests.
(d)Kitchen facilities are prohibited in guest rooms.
(e)Bed and breakfast inns shall be restricted to proprietor-occupied,single-family
residences.
(f)Guest occupancies for a fee shall be limited to fewer than thirty consecutive nights.
(g)The exterior of the building shall retain a residential appearance.
(h)Bed and breakfast inns shall be operated in a way that will prevent unreasonable
disturbance to area residents.
(i)One off-street parking space shall be provided for each guest room in addition to
parking required for the residence.All parking spaces shall meet the standards of
Chapter 18.30 JCC.
6)Approval shall be conditional upon compliance with all applicable building code
requirements,state liquor laws,and state sanitation requirements.
(k)No more than one sign is allowed,consistent with the sign standards in JCC 18.30.150.
(1)All bed and breakfast inns are subject to the applicable water and food service sanitation
requirements established by the Washington State Board of Health and the Jefferson
County board of health.
(2)Bed and Breakfast Residence.The following standards apply to all bed and breakfast
residences:
(a)Bed and breakfast residences shall be restricted to owner-occupied single-family
residences.
(b)No more than three guest sleeping rooms shall be available for the accommodation of
bed and breakfast residence guests.
(c)Guest occupancies for a fee shall be limited to fewer than thirty consecutive nights.
(d)Meals may only be served to overnight guests.
(e)The bed and breakfast residence shall be operated in a way that will prevent
unreasonable disturbance to area residents.
11
(f)One off-street parking space shall be provided for each guest room in addition to
parking required for the residence.
(g)Approval shall be conditional upon compliance with all applicable building code
requirements,state liquor laws,and state sanitation requirements.
(h)No more than one sign is allowed,consistent with sign standards in JCC 18.30.150.
(3)Short-Term Renta 1 The following standards apply to all / Commented Wpla1n121:DCD propose revisions
short-term rentals of single-family residential units or portions thereof: addressed N section 3(k)and adds occupants lima to address
the Department of Environmental Public Health's concerns
�about on-site sewage requirements in chapter 115 JCC.
ka>I The short-term rental shall be operated in a way that will prevent unreasonable _ Commented[explelnl3]:Same as Planning
disturbances to area residents. lCommission's subsection 3(a).
OM All parking sfAwemust be contained onsite as Commented[expleinl4]:Planning Commission's
determined by DCD.Al I parking spaces shall he provided 1l3t nlec:t the shoi4 teFm rental i Section 3(b)revised to require all parking spaces on-site as
use in addition' the"""t""""e -e,t 'the" "t"'.•"or guest t'^""" (Standards Of determined by DCD.This change tightens the parking
Chapter 18.30 JCC. - requirements and makes them all on-site
kill If any food service is to be provided the requirements for a bed and breakfast residence 1 Commented[explain151:Same as Planning
ft us hall be met. Commission's recommendation in 3(c),except"must"
changed to"shall"since"shall"has a defined meaning in the
law an"must"does not.
(d)No outdoor advertising signs are 611owed� Commented[explainl6]:DCD revision shown in new
subsection(e)allows 4 sq.ft identification sign to aid in
(e)One identification IDplacard identifying the name of the rental is allowed onsite and (finding the dwelling )
shall not exceed foursquare feet in size. °
i.Master Planned resens ii.140spitalit�'PeFfflitS approved under pFier reguiations,or
Commented[explain17]:Planning Commission's
language on the cap in subsection(e)is addressed in Section
k4�uNeet to like established mwiimum RumbeFs 99shaft temi rentals,FeRtRIS fOF less thm !3(n),below.
30 days are peRnissiblewhel-e the land ownef:is a resident of jefftr-soR County and sh- Commented[explainl8]:DCD recommends removing
t.,..,i,....... ..t:.:.,,t ., r.,c�e... C.,...,.,,a....:.,,..t,., ..t -the residency requirement in subsection(f)of the Planning
Commission's recommended STR ordinance.This is
period. addressed in Section 30),below The Planning
Commission's recommended STR ordinance would limit
k
mitted
STRs to one landowner only and would be difficult to g}f(�n no case shall the short-term rental exceed the design capacity of the per enforce
on-site sewage system.
Commented[explainl9l:Same as in Planning
Commission recommendations subsection(g)
r_ .t me.a.d[explaln20]:Planning Commission
Whikhed 135 the ROdFd of County Comm*
i recommendation in subsection())has been addressed in
_ Fame shall 'Section 3(n)and 4(c),below. The cap for each zip code
not e�ieeed o toiaat;estmatedlwould be based on census data.
Mandgelliew"
12
Commented[explaW1]:Subsection(i)of the Planning
Commission's recommended STR ordinance is now
addressed in Section 3(d),below,on STR renewal process.
ide flee i "Ot Commented(explain221:DCD recommends removal of
subsection 0)in the Planning Commission's recommended
STR ordinance based on difficulty to implement residency
Short-tern rentals are not permitted in any tern orary ortable.or other structure requirement and unfairness for an STR to be limited to 3
not permitted by the County for permanent occupancy(e.g..boat,tent.\urt.RV,etc.). years if it otherwise satisfies all the other requirements of
this section.
kaj Short-term rentals shall meet all local and state regulations,includingthose er'tain'n Commented[eclear that
temporary,
subsection e, recommend
by DCD to make cleat that temporary,portable,or other
to business licenses,liability insurances,and taxes,and registering with the Washington structures not capable of permanent permits cannot be
Department of Revenue as required by RC W 64.37.040. permitted as an STR.
Commented[explainU]:Same as subsection 3(k)of the
kh)[A short-term rental permit shall be tied to the propert� and cannot be transterred to a Planning Commission's recommended STR ordinance
separate d"e l l i n e. Commented[explaWSI:DCD recommends adding a
requirement that an STR permit cannot be transferred to a
The owner or operator may rent the principal residence or the guest house on m the sae separate dwelling.
lot or parcel on a short-term basis,but not both. — Commented[expinin26]:DCD recommends adding limit
prohibiting renting the principal residence and the guest
house on the same lot or parcel on a short-term basis.
k411A short-term rental operator shall not hold more than one hospitality permit for ashop- Commented[explain271:DCD recommends adding a
term rental in unincorporated Jefferson County. limit to one short-term rental permit for any operator in
un incoiporated Jefferson Count,
kk)I Short- em,-.m,Rrtenn rentals with wefe-EHarfive or Fewer guest rooms-.4-4le Commented[explain28]:DCD recommends adding this
(OHOWiRg StaREIHMS dpp'540 St,... it .-:L.. 30,a ... FL-WAS,.vSingle r:. .a, language to clanfy the type ofpernit that will be required.
`.and 10 or te-%ver total occupants will require a"Fype_i
hospitality permit for a short-tern rental.
td) t Short-term rentals yy ith six or more Quest rooms and Preater than 10 total Commented[explain29]:DCD recommends modifying
occupants shall require a conditional discretionary use permit sbatl{e+equiredand subsection(d)of the Planning Commission
additional building requirements. feCOf°"1C"�101's
ke)Widrm�Must meet state and local standards for habitable space and life safet\ Commented[explain301:DCD recommends adding a
conditions, requirement that die STR must meet state and local standards
for habitability and life safety conditions.
(11)�or six months after the adoption of this chapter,DCD will accept all short-term rental
applications.After this six-month grace period,the following limit will apply to the renting
of the entire nma or accessorydwellingi.e. excludingthe rentin of STRs occupied b
the landowners).Short-term rentals within Master Plan Resorts(MPR)are excepted from i Commented[explain3l]:DCD recommends modifying
the_-___p6o�±'V on short-term rentals identi;;e.Short-tenn rentals shall be limited to this subsection based on feedback at the public hearing on
four percent of the dwelling in XC 19. nincorporated Jefferson County housing,as (March 17,2025.
detennined by DCD.Based on OFM(Office of Financial Management)data,there are
11,694 dwellings outside of MPR.Four percent of these dyyellines ycuuld equate to 468
short-tern rentals allowed at this time.The short-term rentals kill be distributed Commented[explain32]:DCD recommends making this
prepositional based on the housing stock in each zit)code i.e. if Port Townsend zin code correction. This recommendation was made after feedback
has 3 percent of the housingstock the would be allowed 3 %of the short- at March 17,2025 hearing.
term rentals based on the U.S.Census).Every year DCD will update the number of 1Commented[explain33]:DCD recommends making this]
correction. This recommendation was made after feedback
dwelling units,the number of short-term rentals alloyved and the number of short-term atMarch 17,2025 hearing.
13
rental permits that have a valid permit from DCD.If the maximum number of short-term
rentals shall• ekeeed the maximum eap as ,forth in I Q 20 21 r„3,.,,„ais reached,DCD
will have a waiting list for new short-term rentals.
. = Commented[explain34]:DCD recommends modifying
the cap language from subsection(4)(e)of the Planning
rL Lnl clwFm rewaL...L n t.,l„.. ...a.. .t l „tt,- .t .„ :a..„e `Commission recommended STR ordinance.
ortCommented[explain35]:DCD recommends removing
[he resldencv requirement.
rscc-0-1
mmented[explain36]:Subsection(5)of the Planning
mission's recommended STR ordinance is addressed in
tion
WAn ermits for appreva'of any bed and breakfast*Rn.bed and bfeale; Commented[explain37]:Section(6)(a)of the Planning
F«tea short-term rental shall be - on#itr•�:,-derek�esWee Commission's recommended STR ordinance is addressed in
� a
form approved by the departmeetdirector. section 4,above
Commented[explain3ft Section(6)(a)of the Planning
rewdi..L.,n Res t.,,. ..:,t,...,,t e „lete.„less it iRVIUMJOS., and efffteteOp)'OfeVen- Commission's recommended STR ordinance is addressed in
Section Mg),above.
Commented[explain391:Section(6xc)of the Planning
Commission's recommended STR ordinance is addressed in
.tepai-tRie.,.•,.AAA site. Section(3x1),above.
k7 Legal 1„_.„ e 1 „:„ 1kiniiseallea gran jfat,ereH9)Shall 1,•:„ L.a /,Com ntem�ed[explain401•Section(7)ofthe Planning
Commission's recommended STR ordinance is addressed in
i Section(41(d),above.
(4)Permitting is required for all Short-term rentals in the Countv.
aajA short-tenn rental that existed prior to the establishment of the original Unified i''Commented lexplain4l]:Subsections(4)(a)and(b)are
Development Code with an effecti%e date ofJanuary 16,2001 shall be established as a the revised legal non-conforming use sections that DCD
legal non-contorminy use if all of the following requirements are satisfied: (recommends.
14
I i)The short-tenn rental operator provides proof to the satisfaction of the director that
the lot or parcel was the location of a short-term rental and that applicable sales and
lodging taxes pursuant to chapter 64.37 RCN were remitted to the authorized collector
prior to January 16,2001:and
ii Apply for and obtain a hospitality ermit for a short-tenn rental Permit within On
monthd from the date of the adoption of this Ordinance. Commented[explain42]:DCD recommends revising this
subsection based on feedback at the March 17,2025 hearing,
kbb j Existing shoe-term rentals that have been permitted by DCD after Janual, 16,2001 are Commented lermlain43]:DCD recommends revising this
allowed to continue,provided the short-term rental operator renews the permit and satisfies l subsection based on feedback at the March 17,2025.
all of the requirements of this section.
kc>The number of new short-tern rentals limit addressed in section 3(3)shall be reduced commented[explain44]:DCD recommends adding a
by the number of pre-existing short-tenn rentals addressed in in Section 41 a)and Ib1 above. limit related to the cap in section(3)(n)
kdj New short-term rental applications shall be accented until the limit addressed in Section f'commented[explainasl:DCD recommendsaddn g
3(n)above is met.Once a hospitality permit for a short-term rental is issued.the permit limit related to the cap in section(3)(n).
may continue,provided the short-tern rental operator renexvs the pen-nit and salislics all
the requirements,i.e..6 1.37 RPAI&heensiH of this chapter.
ke)Short=fern Rental Permit Renewal:
(i)Application for renewal shall occur annually and at least 30 days prior expiration of
the hospitality permit for a short-term rental.
(ii 1 Renewal fees for a hospitality permit for a short-term rental shall be per the
applicable fee schedule.
(iii)Renewal of an existing permit for a short-tern rental requires an inspection
addressing fire,safety,and health requirements.
(9* iv Failure to renew a permit for a short-term rental may result in short-term rental
not heina allowed if the limit addressed in Section 3(n)is met. Commented[etgtlein461:DCD recommends adding
`revised renewal language.
ermit Numbe4 The short-term rental operator shall include the Jefferson Coun Commented[explain47]:DCD recommends revision
permit number for the short-term rental in all advertisements and cn;urc its prominent based on feedback at the March 17,2025 hearing. DCD
display on all platforms and other forams for rental of the short-term rental,including but recommends adding new requirement that a valid permit
number for a Jefferson County hospitality permit for short
not limited to Airbnb.VRBO,Craigslist,Faeebook.Flyers or posters and on marketing term rental shall be included with any advertisement by the
materials such as brochures and websites.Any failure to provide a valid Permit number operator of the STR.
or posting a false permit number is prohibited and shall be subject to enforcement as a
violation of this chapter.
JiLEnforeement.
15
fE4-The provisions of this chapter shall be enforced under Title 19 of the Jefferson County Code.
Jefferson County may seek any remedy available under law as is necessary to prevent or correct
any violation of this chapter.
Commented[explein48]:DCD revisions did not include
-ated to ff Fsen GOURt- Shag ; Section 8(b)but could be added if deemed
appropriate/necessary. However,this subsection potentially
conflicts with chapter 64_37 RCW.
(iii)Advell4ise only these shoq tell:Fn rentals with vaNd PeFmitsi and
k61 Conflict.If any county regulations herein are found to he in conflict with chapter 64. Commented[explain49]:DCD recommends adding this
RCVS',the provisions of chapter 64.37 RCW shall apply. say togs clause to avoid claims based on State preemption j
16
APPENDIX E
Changes to JCC 18.40.040,Table 8-1 are as follows:
Table 8-1.Permits—Decisions
Type I2 Type II Type III Type IV Type V
Bed and Discretionary
breakfast inn, conditional use
bed and permits under JCC
breakfast 18.40.520(2)listed in
residence and Table 3-1 in JCC
short-term 18.15.040 as"C(d)"
rental permits less Type III
listed in process required by
Table 3-1 in
administrator.
JCC
18.15.040 as
"Yes"
17
APPENDIX C
Planning Commission Recommendation
(February 25, 2025)
g0N
EPARTMENT OF COMMUNITY DEVELOPMENT
1 Sherid.ui Street,Port Townsend,WA 98308
cE 360.379.4450 1 Fas 0.3"9.44i1
eb:%I&W Weffe iunuh iehL C M►i ment
I NG�O R-m:u7:dWW.cojcff u-,m -A.�<
Richard Hull, PhD February 20, 2025
Chairman
Jefferson County Planning Commission
621 Sheridan Street
Port Townsend, Washington 98368
Chair and Members of the Jefferson County Board of County Commissioners
Jefferson County Courthouse
1820 Jefferson Street
Port Townsend, Washington 98368
Dear Chair Eisenhour and Members of the Board:
I have attached the Planning Commission's recommendation to improve the Short-Term Rental
regulations, arising out of a moratorium that necessitates an exception to the annual amendment process.
Attached to this letter is a copy of the ordinance approved by the Planning Commission at their regular
February 19,2025 meeting.
After a series of workshops in each of the Board of County Commissioner Districts in 2024, public
outreach through press releases and a duly noticed public hearing on February 5, 2025, documented in
the "WHEREAS CLAUSES" of the attached ordinance, the Planning Commission reached a final
decision on recommended updates to Short-Term Rental regulations. The Planning Commission
recommends Unified Development Code text amendments, as more fully set forth in the attached
ordinance that reviewed criteria related to growth and development, capacity of the county to provide
adequate services especially with regards to enforcement, demand and need for short-term rentals (STR)
and long-term housing, and the validity of county-wide attitudes and circumstances regarding STRs.
Please do not hesitate to reach out to the Planning Commission with any additional questions.
Wa regards, jzl
ich d Hu , PhD -L
Chairman, Jefferson County Planning Commission
STATE OF WASHINGTON
COUNTY OF JEFFERSON
An Ordinance Repealing Ordinance 03-0610-24, ORDINANCE
a Moratorium on Acceptance and Processing of
Application for Hospitality Establishment
Permits for Transient Residences or Transient
Guest Houses pursuant to Jefferson County Code
(JCC) 18.20.210(3); and Adopting Amendments
to JCC 17.60, General Provisions of Title 17
Master Planned Resorts; JCC 18.10 Definitions;
JCC 18.15 Land Use Districts; JCC 18.20.200
Home Business; JCC 18.20.210 Hospitality
establishments and JCC 18.40, Permit
Application and Review Procedures/ SEPA
Implementation
WHEREAS, the Washington Constitution, Article XI, Section 11• confers upon county
legislative authorities the police power to adopt regulations necessary to protect the health, safety,
and well-being of its residents; and
WHEREAS, RCW 36.32.120(7)provides that the county legislative authorities shall
make and enforce,by appropriate resolutions or ordinances, all such police and sanitary
regulations as are not in conflict with state law; and
WHEREAS, police power is that inherent and plenary power which enables prohibition
of all things hurtful to the comfort, safety and welfare of society;and
WHEREAS, the scope of police power is broad, encompassing all those measures which
bear a reasonable and substantial relation to promotion of the general welfare of the people;and
WHEREAS, homelessness and housing affordability directly and indirectly impact the
health, safety, and well-being of county residents and continues to present local, regional, and
national challenges arising out of many social and economic factors; and
WHEREAS, Jefferson County enacted several measures to address the shortage of
affordable,transitional, supportive, and emergency housing; and
WHEREAS, in 2017, the Jefferson County Board of County Commissioners adopted
Resolution No. 35-17 to declare that an emergency exists with respect to the availability of housing
that is affordable for those households earning 80 percent or less of the Jefferson County median
family income,which the U.S.Department of Housing and Urban Development identifies as"low
income;"and
1
WHEREAS, as identified in the 2019 Jefferson County Community Health Assessment
Report:Summary Findings,' the lack of affordable housing continues to present local challenges,
especially for older adults,young families, and the working class; and
WHEREAS, in Resolution No. 63-19, the Jefferson County Board of Commissioners
adopted a Five-Year Homeless Housing Plan, Making Homelessness a Singular Occurrence —
Homelessness Crisis Response and Housing Five-Year Plan for Jefferson County, "to establish a
long-term, systematic effort to address the homelessness and affordable housing crisis through a
data focused vision for Jefferson County;"and
WHEREAS, Jefferson County adopted Ordinance No. 11-1221-20, imposing a sales and
use tax for affordable housing and supportive services, in accordance with House Bill 1590
(chapter 222, Laws of 2020) and RCW 82.14.530. to address the local challenge presented by
homelessness and declining affordability; and
WHEREAS, Jefferson County adopted Ordinance No. 05-0613-22 related to the siting,
establishment, and operation of temporary housing facilities for unsheltered and unhoused
individuals and families in unincorporated Jefferson County to address the local challenge
presented by homelessness and declining affordability;and
WHEREAS, Jefferson County adopted Ordinance No. 04-1009-23 referenced as the
Commercial Property Assessed Clean Energy and Resilience (C-PACER) Program to reduce the
debt servicing costs associated with commercial property improvements and construction
including multifamily structures with five or more dwelling units to incentivize multifamily
construction, rehabilitation, and repair to implement sustainable practices; and
WHEREAS, Jefferson County in partnership with the City of Port Townsend and the
Housing Fund Board identified sites for transitional, supportive, and emergency housing, such as
Caswell-Brown Village,to create an emergency shelter to address the foregoing challenges; and
WHEREAS, the Board of County Commissioners amended the Port Townsend Urban
Growth Area (PTUGA) boundary via Ordinance No. 09-1209-24 to provide for transitional,
supportive, and emergency housing including, among others, the Caswell-Brown Village site to
accommodate continuum-of-care special purpose housing to address the foregoing challenges;and
WHEREAS, in partnership with the City of Port Townsend, Jefferson County advanced
new affordable housing opportunities in 2024 through pre-approved residential building plans,
where sweat equity, energy efficient designs, and expedited permitting may reduce housing costs
to partly address the lack of housing; and
WHEREAS, the Jefferson County Comprehensive Plan contains a Housing Action Plan
as Exhibit 3-72 that identifies the need to "evaluate short-term rentals to ensure such uses do not
https://www.co.iefferson.wa.us/DocumentCenterNiew/19190/20191104 Jefferson CHA-Summary_
Report 2019 v2,Accessed January 5,2025.
s See: https://www.co.Jefferson.wa.us/DocumentCenterNiew/18001/Jefferson-CP-2018 12,at 3-19 Accessed
January 5,2025.
2
further restrict the housing supply for year-round residents"as one of six bulleted tasks to remove
potential barriers to housing;and
WHEREAS,the county held three public meetings regarding short-term rentals, one each
in Cape George and the Tri Area and a third hybrid meeting in Quilcene, during March 2024; and
WHEREAS,county staff presented the findings of these meetings to the Jefferson County
Planning Commission at its regularly scheduled July 17,2024 meeting;and
WHEREAS,on December 4,2024,county staff obtained clarification on how to interpret
the Planning Commission's July 17, 2024 preliminary proposal regarding limiting short-term
rentals for less than 30 days and exemptions; and
WHEREAS, the Jefferson County Department of Community Development (DCD)
assumes responsibility for the environmental review and procedural steps as the "Lead Agency"
pursuant to WAC 197-11-926(1);and
WHEREAS, Jefferson County analyzed the proposed legislation in accordance with the
State Environmental Policy Act (SEPA), as summarized in an associated SEPA checklist, and
finds that adoption of this non-project action will not result in a probable significant adverse impact
to the environment;
NOW, THERFORE, BE IT ORDAINED BY THE BOARD OF COUNTY
COMMISSIONERS OF JEFFERSON COUNTY,STATE OF WASHINGTON as follows:
Section 1.Findings of Fact.The Board of County Commissioners(BoCC)adopts the recitals above
(WHEREAS clauses)as their own findings of fact for this ordinance.
Section 2. Purposes. The purpose of this ordinance is to implement the Comprehensive Plan
Housing Element which contains an Action Plan as Exhibit 3-7.3 Under an Action listed as Remove
Potential Barriers to Housing,the Action Plan states:"Evaluate short-term rentals.To ensure such
uses do not further restrict the housing supply for year-round residents,the County could examine
the prevalence of short-term rentals and determine if a registration program and limits on numbers,
zones or locations are appropriate."Additionally, this exhibit states: "Evaluate short-term rentals
using available local and state data sources."It also repeats the above:"Determine if a registration
program and limits on numbers, zones, or locations are appropriate to help ensure a sufficient
housing supply for year-round residents."
Section 3. Repeal Prior Ordinance. This Ordinance repeals Ordinance No. 03-0610-24.
Section 4.Modification of the Jefferson County Code.JCC 17.60.070 shall be amended and as set
forth in Appendix A.
3 See: hns://www.co.iefferson.wa.us/DocumentCenterNiew/18001/Jefferson-CP-2018_12.at 3-19 Accessed
January 5,2025.
3
Section 5.Modification of the Jefferson County Code.Chapter 18.10 JCC shall be amended as set
forth in Appendix B.
Section 6.Modification of the Jefferson County Code.JCC 18.15.040, Table 3-1 shall be amended
as set forth in Appendix C.
Section 7. Modification of the Jefferson County Code. JCC 18.20.200 and 18.20.210 shall be
amended as set forth in Appendix D.
Section 8.Modification of the Jefferson County Code.JCC 18.40.040, Table 8-1 shall be amended
as set forth in Appendix E.
Section 9. Severability. The provisions of this ordinance are declared separate and severable. If
any section, clause, sentence, or phrase of this chapter is held to be invalid or unconstitutional by
any court of competent jurisdiction,that holding shall in no way affect the validity of remainder
of the code or application of its provision to other persons or circumstances.
Section 9. SEPA Compliance. DCD issued a threshold Determination of Non-Significance
(DNS)on January 22, 2025.
Section 10. Effective Date. This Ordinance shall take effect immediately upon adoption by the
Board of County Commissioners.
(SIGNATURES FOLLOW ON THE NEXT PAGE)
4
APPROVED and ADOPTED this day of ,2025.
JEFFERSON COUNTY BOARD OF
COMMISSIONERS
Heidi Eisenhour,Chair
Greg Brotherton, Member
Heather Dudley-Nollette, Member
SEAL:
ATTEST:
Carolyn Gallaway, CMC Date
Clerk of the Board
Approved as to form only:
Philip Hunsucker Date
Chief Civil Deputy Prosecuting Attorney
5
APPENDICES
Proposed Amendments to Jefferson County Code(JCC)Title 17 and Title 18, pertaining to
Hospitality Establishments.
Strikethrough(e.g., strikeArezegr) denotes a deletion; underline denotes an addition.
6
APPENDIX A
17.60.070 Resort cap and residential use restrictions.
Pursuant to Ordinance 01-0128-08, the Pleasant Harbor MPR in total shall have a development
cap of up to 890 residential units; provided, however, short-term visitor accommodation units
and short-term rental units shall constitute not less than 65 percent of the total units including,
but not limited to, hotels,motels, lodges, and any residential uses allowed under each zone.
Short-term visitor accommodation units and short-term rental units shall be construed to mean
occupancies equal-te-eFless than 30 days. The Pleasant Harbor MPR in total shall have a
development cap of 56,608 square feet of resort commercial, retail, restaurant, and conference
space. [Ord. 3-18 § 2 (Att. 1)]
7
APPENDIX B
The following changes are made to Chapter 18.10 JCC:
18.10.120 L. Definitions
"Landlord"means, as specified in RCW 59.18.030(16), the owner, lessor, or sublessor of the
dwelling unit or the property of which it is a part, and in addition means any person designated
as representative of the owner, lessor, or sublessor including, but not limited to, an agent a
resident manager, or a designated prope manager.
18.10.160 P definitions.
"Primary residence"means a person's usual place of return for housing;as documented by motor
vehicle registration, driver's license, voter registration, or other such evidence as determined by
the Director. A person may have only one primary residence.
18.10.190 S Definitions.
"Short-term rental"means a lodging use,that is not a hotel, motel, or bed and breakfast, in which
a_primary or accessory dwelling unit, or portion thereof, is offered or provided to a guest by a
short-term rental operator for a fee for fewer than thirty consecutive nights, as set forth in RCW
64.37.010(9)(a).
"Short-term rental advertisement"means any method of soliciting use of a dwelling unit for
short-term rental purposes.
"Short-term rental operator"or"operator"means any person who receives payment for owning
or operating a dwelling unit, or portion thereof, as a short-term rental unit.
"Short-term rental platform"or"platform"means a person that provides a means through which
an operator may offer a dwelling unit, or portion thereof, for short-tenor rental use, and from
which the person or entity financially benefits. Merely publishing a short-term rental
advertisement for accommodations does not make the publisher a short-term rental platform.
.f4ien thereof f thO PtIFPOSe c....,.,.:a:.ig l a,.:.,,. f OdS less than 30 days
"TraflSient FeSideftee—er" "Faeans a single family f:eside"ti l OF ADD osed
The remaining portions of chapter 18.10 JCC are not changed.
8
APPENDIX C
Changes to JCC 18.15.040,Table 3-1 are as follows:
Table 3-1.Allowable and Prohibited Uses
Resource Lands Rural Residential Rural Commercial Rural Industrial Public UGA
Ironda
Agricultu
Forest— I 1 1 Rural Resaurc Light Light Light Parks, It and
Commerci DU/ DU/1 DU/2 Villa Convenien General Industrial/!/tanu(actu Heavy Preserve Port
r e ral— Neighborhood/Vis Bastd Industrial/Comor Industri Hadloc
l a,Rur a l 0 gt ce Crossro ring Indtotri sand
Prime and itor CrossroadIndus[ri rcial al(Glen k
Local and Ac5r Ac0 re Acre Cente Crossroad 'd at (Glen Cove) Cove) (Qmlcene and al Recrnti Urban
Inholding esa a r Fairview) on Growl
h Area
Specific RR RR RR
Land Use AG CF/RF/IF 1:5 1:10 1:20 RVC CC ]C GC RBI LI/C LI LI/M HI PPR UGA
Residenli
a1 Uses
1--,xxsiern Yes Yes Yes Yes Yes Yes No No No No No No No No No
r ti"!R(
res dense
neerssery
dsveF4r�
mwShort-
Term
Rentals
See
with 5 or
few r Chapte
r 18.19
auest JCC
rooms
Commerc
ial Uses
ZhS1I'. S.W1 l'hll dl Uib CW &Wl Nr.
rm Pe — — — —
Ren als
with more
than 5
guest
row
9
APPENDIX D
Changes to JCC 18.20.200 and JCC 18.20.210 are as follows:
18.20.200 Home Business
Home businesses are accessory to the primary residential use and are permitted in any dwelling
unit or accessory structure. All home businesses shall be reviewed as Type I permit decisions,
except as exempted under subsection(3)of this section.
(1)The following list of uses is not intended to be exhaustive,but rather is intended to be
illustrative of the types of uses:
(a)Artists,photographers, and sculptors;
(b)Authors and composers;
(c)Dressmakers, seamstresses, and tailors;
(d)Home day care;
(e)Home crafts such as model making,rug weaving, lapidary work, woodworking, and
ceramics;
(f)Office facility of a minister, rabbi, priest or other similar person associated with a religious
organization;
(g)Business office facility of a salesman, sales representative or manufacturer's representative,
architect, artist, broker,dentist, physician, public relations practitioner, engineer, planner,
instructor in music, arts and crafts, insurance agent, land surveyor, lawyer, musician, real estate
agent, or typist;
(h)Classes of specialized instruction; and
(i)Barbershops and beauty parlors,
Bed and bFeakfast r-esidenees.
18.20.210 Hospitality establishments.
(1)Bed and Breakfast Inns. The following standards apply to all bed and breakfast inns:
(a)No more than six guest sleeping rooms shall be accommodated in any bed and breakfast
inn.
10
(b) If a building is on a federal, state, or local register of historic structures,then the owner
may apply for a bed and breakfast inn for up to 10 rooms. A conditional use permit may be
granted if the historic character and fabric of the building are preserved, if there are no new
structures or additions to the existing structure(s), and if all other bed and breakfast inn
standards and restrictions are met.
(c)Meals may only be served to overnight guests.
(d)Kitchen facilities are prohibited in guest rooms.
(e)Bed and breakfast inns shall be restricted to proprietor-occupied, single-family
residences.
(f)Guest occupancies for a fee shall be limited to fewer than thirty consecutive nightstie
(g)The exterior of the building shall retain a residential appearance.
(h)Bed and breakfast inns shall be operated in a way that will prevent unreasonable
disturbance to area residents.
(i)One off-street parking space shall be provided for each guest room in addition to
parking required for the residence. All parking spaces shall meet the standards of
Chapter 18.30 JCC.
0)Approval shall be conditional upon compliance with all applicable building code
requirements, state liquor laws, and state sanitation requirements.
(k)No more than one sign is allowed, consistent with the sign standards in JCC 18.30.150.
(1)All bed and breakfast inns are subject to the applicable water and food service sanitation
requirements established by the Washington State Board of Health and the Jefferson
County board of health.
(2)Bed and Breakfast Residence. The following standards apply to all bed and breakfast
residences:
(a)Bed and breakfast residences shall be restricted to owner-occupied single-family
residences.
(b)No more than three guest sleeping rooms shall be available for the accommodation of
bed and breakfast residence guests.
(c)Guest occupancies for a fee shall be limited to no more fewer than thirty consecutive
nightsthan 30 eenseeutive days.
11
(d)Meals may only be served to overnight guests.
(e)The bed and breakfast residence shall be operated in a way that will prevent
unreasonable disturbance to area residents.
(f)One off-street parking space shall be provided for each guest room in addition to
parking required for the residence.
(g) Approval shall be conditional upon compliance with all applicable building code
requirements, state liquor laws, and state sanitation requirements.
(h)No more than one sign is allowed, consistent with sign standards in JCC 18.30.150.
(3) T-Fa scent DesideneeShort-Term Rental
-OF T-FaRsient Guest House (Aeeesser-y Dwelling Unis"
with five or fewer guest rooms. The following standards apply to all short-term (le.. than 30
days)tr-an lent rentals of single-family residential units or portions
thereof
(a)The transient F sideneeshort-term rental OF S118A teFm guest house shall be operated in a
way that will prevent unreasonable disturbances to area residents.
(b)At least one additional off-street parking space shall be provided for the tffiflSient short-
term rental use in addition to the parking required for the residence or guest house.
(c) If any food service is to be provided the requirements for a bed and breakfast residence
mustshall be met.
(d)No outdoor advertising signs are allowed.
(e)The E) e OF IeSSeffla5' „t the PFiReipal r Sidenee OF the .. ent heii5e A nh..,h tiff+
(f) WheFe theFe-aFe-beth a PFiReipal Fesidenee alld-a-guest-house(i.e., an aeeessef-j'dwellift
' the e Feside en the
e e •
(g)T-Fansient aeeemmedatiens must meet all leeal aiid state FegulatieRs, ineluding these
e..t.,ining to business lieenses and taxes
(e) Short-term rentals shall not exceed 4%of the unincorporated Jefferson County housing
unit total not includine:
i. Master planned resorts,
ii. Hospitality permits approved under prior regulations, or
12
iii Short-term rentals for less than 30-d4ypredating hospitalijy regulations.
(fl Subject to the established maximum numbers of short-term rentals, rentals for less than
30 days are permissible where the land owner is a resident of Jefferson County and the
landowner or a qualified representative is in Jefferson County during the entire rental
period.
(g) In no case shall the short-term rental exceed the design capacity of the permitted on-site
sewage system.
(h) In each of the county's zip codes, rentals for less than 30 days shall not exceed the
number established by the Board of County Commissioners. In the event the Board has not
established maximum numbers of rentals (cap) in each zip code,the cap in each zone shall
not exceed 4%of the total number of housing units as estimated by the Office of Financial
Management._
(i) Short-Term Rental permits shall be inspected annually.
(j) Short-Term Rental permits shall only be valid for three years for permit holders whose
primary residence is not on site.
(k) Short-term rentals shall meet all local and state regulations, including those pertaining
to business licenses, liability insurances,and taxes, and registering with the Washington
Department of Revenue as required by RCW 64.37.040.
(4)Short-Term Rental with more than five guest rooms. The following standards apply to short-
term (less than 30 days)rentals of single-family residential units or portions thereof:
(a)The short-term rental shall be operated in a way that will prevent unreasonable
disturbances to area residents.
(b)One off-street parking space shall be provided for each guest room in addition to
parking required for the residence. All parking spaces shall meet the standards of Chapter
18.30 JCC.
(c)No outdoor advertising signs are allowed.
(d)A conditional discretionary use permit shall be required.
(e)With the exception of short-term rentals identified in JCC 18.20.210(3)(e), the
maximum number of short-term rentals shall not exceed the maximum cap as set forth in
18.20.210(3); and
(i)Landlords are prohibited from renting to a third party for less than 30 days within the
first two(2) calendar years of ownership or lease; and
13
(ii)The number of short-term rentals within each of the county's zip codes shall not
exceed the amount specified in JCC 18.20.210(3).
(f) Short-term rentals shall be located at the landlord's primary residence
(5) Re ug latory Compliance. Bed and breakfast inns, bed and breakfast residences, and short-
term rentals shall comply with all local and state regulations, includingtpertaining to
business licenses, liability insurances and taxes, and registering� with the Washington Department
of Revenue. For the avoidance of doubt, compliance"state regulations" includes, without
limitation, compliance with all of the requirements in Chapter 64.37 RCW.
(6) Application, License and Registration required.
(a)An application for approval of any bed and breakfast inn, bed and breakfast residence,
or short-term rental shall be filed with the department on forms developed by the
department.
(b)An application for a bed and breakfast inn, bed and breakfast residence, or short-term
rental shall not be considered complete unless it includes a true and correct copy of every
license or registration from the Washington Department of Revenue required by it under
Chapter 64.37 RCW.
(c)The department shall maintain a list of all approved applications for Bed and breakfast
inns, bed and breakfast residences, and short-term rentals,which shall be accessible on the
department's web site.
(7) Legal non-conforminghng units (sometimes called grandfathering) shall not be included
under this chapter 18.210(3)and (4), but must:
(a) At a minimum, prior users must demonstrate that the current use is essentially the same
as before July 10, 2006(when JCC 18.20.210 was adopted), and
(b) Even if prior use is established, it must meet life safety requirements, state
requirements, i.e., 64.37 RCW& licensing requirements.
(8) Enforcement.
(a)The provisions of this chapter shall be enforced under Title 19 of the Jefferson County
Code. Jefferson County may seek any remedy available under law as is necessary to
prevent or correct any violation of this chapter.
(b)Any short-term rental platform or other advertisement of a short-term rental in
unincorporated Jefferson County shall:
(i) Register the platform's name or advertisement location, contact person, and website
address with the department prior to operating;
14
(ii)Provide a list of all active short-term rental listings within the municipal boundaries
of Jefferson County with the department;
(iii)Advertise only those short-term rentals with valid permits: and
Div)Comply with all local and state regulation governing short-term rentals.
15
i
APPENDIX E
Changes to JCC 18.40.040,Table 8-1 are as follows:
Table 8-1.Permits—Decisions
Type I2 Type II Type III Type IV Type V
Bed and Discretionary
breakfast inn, conditional use
bed and permits under JCC
breakfast 18.40.520(2) listed in
residence and Table 3-1 in JCC
short-term 18.15.040 as"C(d)"
rental unless Type III
I4espita* process required by
administrator.
permits listed
in Table 3-1
in JCC
18.15.040 as
"Yes''.
16
APPENDIX D
DCD Staff Recommendation to PC
Recommendation
(March 14, 2025, as amended March 18, 2025)
STATE OF WASHINGTON
COUNTY OF JEFFERSON
An Ordinance Repealing Ordinance 03-0610-24, ORDINANCE
a Moratorium on Acceptance and Processing of
Application for Hospitality Establishment
Permits for Transient Residences or Transient
Guest Houses pursuant to Jefferson County Code
(JCC) 18.20.210(3); and Adopting Amendments
to JCC 17.60, General Provisions of Title 17
Master Planned Resorts; JCC 18.10 Definitions;
JCC 18.15 Land Use Districts; JCC 18.20.200
Home Business; JCC 18.20.210 Hospitality
establishments and JCC 18.40, Permit "
Application and Review Procedures/ SEPA
Implementation
WHEREAS, the Washington Constitution, Article XI, Section 11, confers upon county
legislative authorities the police power to adopt regulations necessary to protect the health, safety,
and well-being of its residents; and
WHEREAS,RCW 36.32.120(7)provides that the county legislative authorities shall
make and enforce, by appropriate resolutions or ordinances, all such police and sanitary
regulations as are not in conflict with state law; and
WHEREAS, police power is that inherent and plenary power which enables prohibition
of all things hurtful to the comfort, safety and welfare of society;and
WHEREAS, the scope of police power is broad, encompassing all those measures which
bear a reasonable and substantial relation to promotion of the general welfare of the people;and
WHEREAS, homelessness and housing affordability directly and indirectly impact the
health, safety, and well-being of county residents and continues to present local, regional, and
national challenges arising out of many social and economic factors; and
WHEREAS, Jefferson County enacted several measures to address the shortage of
affordable,transitional, supportive, and emergency housing; and
WHEREAS, in 2017, the Jefferson County Board of County Commissioners adopted
Resolution No. 35-17 to declare that an emergency exists with respect to the availability of housing
that is affordable for those households earning 80 percent or less of the Jefferson County median
family income,which the U.S.Department of Housing and Urban Development identifies as"low
income;"and
1
WHEREAS, as identified in the 2019 Jefferson County Community Health Assessment
Report: Summary Findings,' the lack of affordable housing continues to present local challenges,
especially for older adults,young families,and the working class; and
WHEREAS, in Resolution No. 63-19, the Jefferson County Board of Commissioners
adopted a Five-Year Homeless Housing Plan, Making Homelessness a Singular Occurrence —
Homelessness Crisis Response and Housing Five-Year Plan for Jefferson County, "to establish a
long-term, systematic effort to address the homelessness and affordable housing crisis through a
data focused vision for Jefferson County;"and
WHEREAS,Jefferson County adopted Ordinance No. 11-1221-20, imposing a sales and
use tax for affordable housing and supportive services, in accordance with House Bill 1590
(chapter 222, Laws of 2020) and RCW 82.14.530, to address the local challenge presented by
homelessness and declining affordability; and
WHEREAS, Jefferson County adopted Ordinance No. 05-0613-22 related to the siting,
establishment, and operation of temporary housing facilities for unsheltered and unhoused
individuals and families in unincorporated Jefferson County to address the local challenge
presented by homelessness and declining affordability;and
WHEREAS, Jefferson County adopted Ordinance No. 04-1009-23 referenced as the
Commercial Property Assessed Clean Energy and Resilience (C-PACER) Program to reduce the
debt servicing costs associated with commercial property improvements and construction
including multifamily structures with five or more dwelling units to incentivize multifamily
construction, rehabilitation, and repair to implement sustainable practices; and
WHEREAS, Jefferson County in partnership with the City of Port Townsend and the
Housing Fund Board identified sites for transitional, supportive, and emergency housing, such as
Caswell-Brown Village,to create an emergency shelter to address the foregoing challenges; and
WHEREAS, the Board of County Commissioners amended the Port Townsend Urban
Growth Area (PTUGA) boundary via Ordinance No. 09-1209-24 to provide for transitional,
supportive, and emergency housing including, among others, the Caswell-Brown Village site to
accommodate continuum-of-care special purpose housing to address the foregoing challenges;and
WHEREAS, in partnership with the City of Port Townsend, Jefferson County advanced
new affordable housing opportunities in 2024 through pre-approved residential building plans,
where sweat equity, energy efficient designs, and expedited permitting may reduce housing costs
to partly address the lack of housing; and
WHEREAS, the Jefferson County Comprehensive Plan contains a Housing Action Plan
as Exhibit 3-72 that identifies the need to "evaluate short-term rentals to ensure such uses do not
' htti)s://www.co.Jefferson.wa.us/DocumentCenterNiew/19190/20191104 Jefferson CHA-Summary-
Report_2019 v2.Accessed January 5,2025.
Z See: https://www.co.*efferson.wa.us/DocumentCenterNiew/18001/Jefferson-CP-2018_12,at 3-19 Accessed
January 5,2025.
2
further restrict the housing supply for year-round residents" as one of six bulleted tasks to remove
potential barriers to housing; and
WHEREAS,the county held three public meetings regarding short-term rentals, one each
in Cape George and the Tri Area and a third hybrid meeting in Quilcene,during March 2024; and
WHEREAS,county staff presented the findings of these meetings to the Jefferson County
Planning Commission at its regularly scheduled July 17, 2024 meeting; and
WHEREAS,on December 4, 2024,county staff obtained clarification on how to interpret
the Planning Commission's July 17, 2024 preliminary proposal regarding limiting short-term
rentals for less than 30 days and exemptions; and
WHEREAS, on February 5, 2025, the Planning Commission held a duly noticed public
hearing to receive testimony on the short-term rentals proposals; and
WHEREAS,on February 19,2025,the Planning Commission deliberated on the testimony
and record, and
WHEREAS,on March 3,2025,the BoCC held a workshop on the Planning Commission's
recommendation, and the BoCC chose to hold their own public hearing on the proposed
amendments to the relevant sections of the Jefferson County Code, and
WHEREAS, the BoCC held their own hearing on March 17, 2025, and listened to
presentation by the Planning Commission and DCD staff representatives, and hear public
testimony; and
WHEREAS,the BoCC extended written public comment through Friday, March 21, 2025
at 4 PM; and
WHEREAS,the BoCC continued deliberations on March 24, 2025; and
WHEREAS, the Jefferson County Department of Community Development (DCD)
assumes responsibility for the environmental review and procedural steps as the "Lead Agency"
pursuant to WAC 197-1 1-926(1); and
WHEREAS,3e€fer-sen CoufftyDCD analyzed the proposed legislation in accordance with
the State Environmental Policy Act(SEPA),as summarized in an associated SEPA checklist,and
finds that adoption of this non-project action will not result in a probable significant adverse impact
to the environment;
NOW, THERFORE, BE IT ORDAINED BY THE BOARD OF COUNTY
COMMISSIONERS OF JEFFERSON COUNTY, STATE OF WASHINGTON as follows:
Section 1.Findings of Fact.The Board of County Commissioners(BoCC)adopts the recitals above
(WHEREAS clauses)as their own findings of fact for this ordinance.
3
Section 2. Pu!Roses. The purpose of this ordinance is to implement the Comprehensive Plan
Housing Element which contains an Action Plan as Exhibit 3-7.3 Under an Action listed as Remove
Potential Barriers to Housing,the Action Plan states:"Evaluate short-term rentals.To ensure such
uses do not further restrict the housing supply for year-round residents,the County could examine
the prevalence of short-term rentals and determine if a registration program and limits on numbers,
zones or locations are appropriate."Additionally, this exhibit states: "Evaluate short-term rentals
using available local and state data sources."It also repeats the above:"Determine if a registration
program and limits on numbers, zones, or locations are appropriate to help ensure a sufficient
housing supply for year-round residents."
Section 3. Repeal Prior Ordinance. This Ordinance repeals Ordinance No. 03-0610-24.
Section 4.Modification of the Jefferson County Code.JCC 17.60.070 shall be amended and as set
forth in Appendix A.
Section 5. Modification of the Jefferson County Code. Chapter 18.10 JCC shall be amended as set
forth in Appendix B.
Section 6.Modification of the Jefferson County Code.JCC 18.15.040,Table 3-1 shall be amended
as set forth in Appendix C.
Section 7. Modification of the Jefferson Coun , Code. JCC 18.20.200 and 18.20.210 shall be
amended as set forth in Appendix D.
Section 8.Modification of the Jefferson Counly Code.JCC 18.40.040, Table 8-1 shall be amended
as set forth in Appendix E.
Section 9. Severability. The provisions of this ordinance are declared separate and severable. If
any section, clause, sentence,or phrase of this chapter is held to be invalid or unconstitutional by
any court of competent jurisdiction,that holding shall in no way affect the validity of remainder
of the code or application of its provision to other persons or circumstances.
Section 9. SEPA Compliance. DCD issued a threshold Determination of Non-Significance
(DNS)on January 22,2025.
Section 10. Effective Date. This Ordinance shall take effect immediately upon adoption by the
Board of County Commissioners.
(SIGNATURES FOLLOW ON THE NEXT PAGE)
3 See: https://www.co.*efferson.wa.us/DocumentCenterNiew/18001/Jefferson-CP-2018 12,at 3-19 Accessed
January 5,2025.
4
APPROVED and ADOPTED this day of . 2025.
JEFFERSON COUNTY BOARD OF
COMMISSIONERS
Heidi Eisenhour, Chair
Greg Brotherton, Member
Heather Dudley-Nollette, Member
SEAL:
ATTEST:
Carolyn Gallaway, CMC Date
Clerk of the Board
Approved as to form only:
Philip Hunsucker Date
Chief Civil Deputy Prosecuting Attorney
5
APPENDICES
Proposed Amendments to Jefferson County Code(JCC)Title 17 and Title 18, pertaining to
Hospitality Establishments.
Strikethrough(e.g., strikeflreugh) denotes a deletion; underline denotes an addition.
6
APPENDIX A
17.60.070 Resort cap and residential use restrictions.
Pursuant to Ordinance 01-0128-08,the Pleasant Harbor MPR in total shall have a development
cap of up to 890 residential units; provided,however, short-term visitor accommodation units
and short-term rental units shall constitute not less than 65 percent of the total units including,
but not limited to, hotels,motels, lodges, and any residential uses allowed under each zone.
Short-term visitor accommodation units and short-term rental units shall be construed to mean
occupancies equal-te-er less than 30 deysnights. The Pleasant Harbor MPR in total shall have a
development cap of 56,608 square feet of resort commercial, retail, restaurant, and conference
space. [Ord. 3-18 § 2 (Att. 1)]
7
APPENDIX B
The following changes are made to Chapter 18.10 JCC:
18.10.190 S Definitions.
"Short-term rental"means a lodging use,that is not a hotel, motel, or bed and breakfast, in which
aaprimary or accessory dwelling unit, or portion thereof, is offered or provided to a guest by a
short-term rental operator for a fee for fewer than thirty consecutive nights, as set forth in RCW
64.37.010(9)(a).
"Short-term rental advertisement" means any method of soliciting use of a dwelling unit for
short-term rental purposes.
"Short-term rental operator"or"operator"means any person who receives payment for owning
or operating a dwelling unit, or portion thereof, as a short-term rental unit.
"Short-term rental platform"or"platform" means a person that provides a means through which
an operator may offer a dwelling,unit, or portion thereof, for short-term rental use, and from
which the person or entity financially benefits. Merely_publishing a short-term rental
advertisement for accommodations does not make the publisher a short-term rental platform.
PE)14i8H theFeOf fOF the PUFP6Se ef PF0'AdiHg !edging fer-per-iods less than 30 days.
"TFaRSient Fesideftee"OF"tFaRSientAW"means a single family resideiitial unit U-Sed
The remaining portions of chapter 18.10 JCC are not changed.
8
APPENDIX C
Changes to JCC 18.15.040,Table 3-1 are as follows:
Table 3-1.Allowable and Prohibited Uses
Resource Lands Rural Residential Rural Commercial Rural Industrial Public UGA
Ironda
Forest— I 1 1 Rural le and
Agricultu Resourc Light Light Light Parks, Port
Commerti DU/ DU/1 DU/2 Villa Convenien General Industrial/Manufactu Heavy Preserve
ral— Neighborho0 's rBased Industrial/Comma Industri Hadlot
al,Rural 5 0 0 ge ce Crossro ring Industri s and
Prime and ilor Crossroad Iudustri rcial al(Glen k
Local and Atr Acre Acre Cenfe Crossroad ad al (Glen Cove) Cove) (Quilcene and al Recreati Urban
Inhalding es s r Eastview) on Growl
h Area
Specific RR RR RR
Land Use AG CF/RF/IF 1:5 I:10 1:20 RVC CC NC GC RBI LVC LI LI/:M HI PPR UGA
Residenti
A Uses
q--,rt Yes Yes Yes Yes Yes Yes No No No No No No No No No
rental-e
trr
eeeessery
dwelkwe
.+RShort-
Term
Rentals
with 5 or
fewer
west
ooms See
omead 10 Chapte
or fewer r 18.18
Occupants JCC
Commerc
ial Uses
Short- C(d) C(d) (d) CW C(d) No Nu No Na No No Nn No Sa
Term — —Rentals
with more
than 5
�u�st
rooms
'rand
more than
10
occupants
9
APPENDIX D
Changes to JCC 18.20.210 are as follows:
18.20.210 Hospitality establishments.
(3) Short-Tenor Rental. -r..,,nsient nesidenee or•r..ansient Guest House(Aeresser-,Dwell:,,..
ice. The following standards apply to all short-term (loss than 30 days`transient rentals of
single-family residential units r portions thereof:
(a)The short-term rental shall be operated in a way that
will prevent unreasonable disturbances to area residents.
(b) All parking must be contained onsite, as determined by DCD. All parking spaces shall
meet the standards of Chapter 18.30 JCC.
(c) If any food service is to be provided the requirements for a bed and breakfast residence
must be met.
(d)No outdoor advertising signs are allowed. One identification (ID)placard identifying
the name of the rental is allowed onsite and shall not exceed four square feet in size.
(e) In no case shall the short-term rental exceed the design capacity of the permitted on-site
sewage system. The e o -lesseefna�'Fent the p l r-esi e a OF the guest house
(f) Short-term rentals are not permitted in any temporary,portable, or other structure not
permitted by the County for permanent occupancy (e.g., boat, tent,yurt, RV, etc). Where
ther-e. -ar-e.beth a pr-ineipal r-e-sid-ene-e--and-a guest house(i.e., an aeeessef�, dwelling wlit), the
(g) Short-tenn rentals shall meet all local and state regulations, including those pertaining
to business licenses, liability insurances, and taxes, and registering with the Washington
Department of Revenue as required by RCW 64.37.040. T ffinsie„♦aceemmedatiefis must
meet all leeal and state FegUlations, ineluding these peFtaining to business lieefises and
Wies.
(h)A short-term rental permit shall be tied to the property and cannot be transferred to a
separate dwelling
(i)The owner or operator may rent the principal residence or the guest house on the same
lot or parcel on a short-term basis, but not both.
10
(i) A short-term rental operator shall not hold more than one hospitality permit for a short-
term rental in unincorporated Jefferson County.
(k) Short-term rentals with five or fewer guest rooms and 10 or fewer total occupants will
require a Type I hospitality permit for a short-term rental.
(1) Short-term rentals with six or more guest rooms and greater than 10 total occupants
shall require a conditional discretionary use permit and additional building requirements.
(m)Must meet state and local standards for habitable space and life safety conditions.
(n)For six months after the adoption of this chapter, DCD will accept all short-term rental
applications. After this six-month grace period, the following limit will apply to the renting
of the entire primary or accessory dwelling(i.e. excluding the renting of STRs occupied by
the landowners). Short-term rentals within Master Plan Resorts (MPR)are excepted from
the cap on short-term rentals. Short-term rentals shall be limited to four percent of the
dwellings in unincorporated Jefferson Counly housing, as determined by DCD. Based on
OFM (Office of Financial Management)data, there are 11,694 dwellings outside of MPR.
Four percent of these dwellings would equate to 468 short-term rentals allowed at this time.
The short-term rentals will be distributed prepositional based on the housing stock in each
zip code(i.e., if Port Townsend zip code has 320 percent of the housing stock they would
be allowed 3-20%of the short-term rentals based on the U.S. Census). Every year DCD will
update the number of dwelling units, the number of short-term rentals allowed and the
number of short-term rental permits that have a valid permit from DCD. If the maximum
number of short-term rentals is reached, DCD will have a waiting list for new short-term
rentals.
(o)Applications for permits for a short-term rental shall be on a form approved by the
director.
(4) Permittingis s required for all short-term rentals in the County.
(a) A short—term rental that existed prior to the establishment of the original Unified
Development Code with an effective date of January 16, 2001 shall be established as a
legal non-conforming use if all of the following requirements are satisfied:
(i) The short-term rental operator provides proof to the satisfaction of the director that
the lot or parcel was the location of a short-term rental and that applicable sales and
lodging taxes pursuant to chapter 64.37 RCW were remitted to the authorized collector
prior to January 16, 2001; and
(ii)Apply for and obtain a hospitality permit for a short-term rental permit within 90.
4ats6 months from the date of the adoption of this Ordinance.
(b)Existing short-term rentals that have been permitted by DCD after January 16, 2001 are
allowed to continue, provided that short-term rental operator renews the permit and
11
satisfies all of the requirements of this section." "o-'teFm rental that existed prier-'e*",-
fequir-ements of this seetie&
(c)The number of new short-teen rentals limit addressed in section 3(n) shall be reduced
by the number of pre-existing short-term rentals addressed in in Section 4(a)and (b,)above.
(d)New short-term rental applications shall be accepted until the limit addressed in Section
3(n)above is met. Once a hospitality_permit for a short-term rental is issued,the permit
may continue, provided the short-term rental operator renews the permit and satisfies all
the requirements of this chapter.
(e) Short-Term Rental Permit Renewal:
(i) Application for renewal shall occur annually and at least 30 days prior expiration of
the hospitality permit for a short-term rental.
(ii)Renewal fees for a hospitality permit for a short-term rental shall be per the
Epuff
applicable fee schedule.
(iii)Renewal of an existing permit for a short-term rental requires an inspection
addressing fire, safety, and health requirements.
Div)Failure to renew a permit for a short-term rental may result in short-term rental not
being allowed if the limit addressed in Section NO is met.
(fl Permit Number. The short-term rental operator shall include the Jefferson County
permit number for the short-term rental in all advertisements and ensure its prominent
display on all platforms and other forums for rental of the short-term rental, including but
not limited to Airbnb, VRBO, Craigslist, Facebook, flyers or posters and on marketing
materials such as brochures and websites. Any failure to provide a valid permit number or
posting a false permit number is prohibited and shall be subject to enforcement as a
violation of this chapter.
(5)Enforcement. The provisions of this chapter shall be enforced under Title 19 of the Jefferson
County Code.Jefferson County may seek any remedy available under law as is necessar�to
prevent or correct any violation of this chapter.
(6)Conflict. If an cY ounty regulations herein are found to be in conflict with chapter 64.37
RCW,the provisions of chapter 64.37 RCW shall apply.
12
APPENDIX E
Changes to JCC 18.40.040, Table 8-1 are as follows:
Table 8-1. Permits—Decisions
Type h Type II Type III Type IV Type V
Bed and Discretionary
breakfast inn, conditional use
bed and permits under JCC
breakfast 18.40.520(2) listed in
residence and Table 3-1 in JCC
short-term 18.15.040 as"C(d)"
rental unless Type III
process required by
Mespita administrator.
permits listed
in Table 3-1
in JCC
18.15.040 as
"Yes"
13
APPENDIX E
Zip Code Table
2020 Census housing units
ZIP Code Dwellings % of STR allowed
wellin s er ZIP Code
98320 - Brinnon 1,359 11.9 55
98325 - Chimacum 885 7.7 35
98331 - Forks 251 2.2 10
98339 - Port Hadlock 1,862 16.3 75
98358 - Norland 664 5.8 27
98365 - Port Ludlow- MPR 3,159-2,000 = 1,159 10.2 47
98368 - (City of PT removed 3,521 30.8 142
98376 - Quilcene 1,389 12.1 56
98382 - Se uim 1305 R.6 12
Total 1 11,395 9.6 460
APPENDIX F
Planning Commission Documents
Brent Butler
From: Kevin Sanchez Morales <kevin.sanchez@airbnb.com>
Sent: Friday, February 14, 2025 1:43 PM
To: Brent Butler
Subject: Re: Short-Term Rental Discussion
ALERT: BE CAUTIOUS This email originated outside the organization. Do not open attachments or click on links if you are
not expecting them.
Hi Brent,
I hope all is well. I wanted to follow up. Due to this being such a hot topic in the community, I was hoping to schedule a
meeting before the Planning Commission meeting next Wednesday. Let me know if you have time to connect.
Best,
Kevin Sanchez
Policy Associate, Local Governments
U :.
On Wed, Feb 12, 2025 at 1:59 PM Kevin Sanchez Morales<kevin.sanchez@airbnb.com>wrote:
Hi Brent,
My name is Kevin,and I am a policy associate at Airbnb. Over the past few weeks,we have had hosts reach out to us
about potential STR regulations. Last week, I was able to connect with some of your colleagues and was informed to
connect with you on this matter.
As you consider regulating short-term rentals in Jefferson County, I'd be happy to connect and answer any questions you
might have. I'd also like to go over several tools and resources we have available to address common things brought to
our attention by staff and elected officials.
Best,
N
Kevin Sanchez
Policy Associate, Local Governments
IHI
a -.
Kevin Sanchez
Policy Associate, Local Governments
i
Brent Butler
From: Barbara <bjy@telebyte.com>
Sent: Monday, February 3, 2025 1:39 PM
To: Brent Butler
Subject: Planning Commission Public Hearing
ALERT: BE CAUTIOUS This email originated outside the organization. Do not open attachments or click on links if you are
not expecting them.
I support the following proposals on short term housing:
Protecting local communities and housing by capping STRs to 3%of Jefferson County, or zipcode, housing units;
Encouraging equity in the STR markets by limiting their permits at 3 years;
Protecting entire housing units from being used as an investment opportunity by requiring the landlord/owner to be
present and reside on the property.
Barbara Yocom
Port Townsend,WA
1
From: Beth Stucky<bethstuckyl@gmail.com>
Sent: Monday,July 15, 2024 9:30 AM
To: Planning<planning@co.jefferson.wa.us>
Subject: Short Term Rentals
ALERT: BE CAUTIOUS This email originated outside the organization. Do not open attachments or click on links if you are
not expecting them.
Hi there,
I heard that public comment was still being solicited on the short term rental. Our perspective as Port Townsend
residents is that while short-term rentals play a role in accommodating the tourists that bring dollars to our town,they
also severely impact availability of housing for people who want or need to live here year round. We believe there
should be major limits on short term rentals and that taxes on properties being used as short term rentals should be
astronomical.
Many thanks for allowing us to comment.
All the best,
Beth Stucky
Brent Butler
From: Bill Thomson <wh_thomson@yahoo.com>
Sent: Monday, February 17,202S 8:54 PM
To: Brent Butler
Subject: Short Term Rentals
Attachments: short_term_rentals.pdf
ALERT: BE CAUTIOUS This email originated outside the organization. Do not open attachments or click on links if you are
not expecting them.
Hi Brent,
I was recently in Morro Bay, CA and became aware of their program on short term rentals in the community. Morro Bay
is a similar demographic to Port Townsend (mostly retired, population about 10,000, a vacation community). They
have recently passed a new set of regulations on short term rentals and the attached article discusses some of their
approach as well as some issues associated .
Regards,
Bill Thomson
1
Your Community
Your News
Vol #7 - Issue #1 J IG Z_S' ( . ��1BRIA • CAN t ( +» (a iti ()SOS • )AORRt
City to Step-up Enforcing Vacation Rental Law
e
�- C
3>71
F
C
uO
Chu
4 V �
Vaution Rental 4�
ttintatt x.Bt?5.518-2888
� .: f .T ary
sUnder the Cdy of Morro Bay's Short Term Rental Ordinance,a sign like this one on Beachcomber Drive is required to be posted outside all tiot
licensed vacation rentals in town.Photo by Neil Farrell fiat
By Neil Farrell property owners to obtain an STR permit,business li- a Ic
cense,and Transient Occupancy Tax CTOT)account prior Cal
The City of Morro Bay is well into an effort to check on to operating an STR."These permits are subject to annual
and crackdown on unpermirted vacation rentals,en- renewal and inspections every four years." N(
forcing an ordinance,the City Council passed 4-years ago. The law also includes a buffer between VRs of 17 5 An
According to a notice from the City,"On Nov. 1,2024, feet,and a 175-cap on VR permits for so-called"full U1
the City of Morro Bay will begin sending enforcement let- home"rentals,meaning that the properties don't have Ma
ters to owners and operators of non-compliant and partially owners on site,such as one might find in an Air BnB rental,
compliant short-term rentals in the city limits." where a homeowner takes in short-term tenants,sharing Ce.
The enforcement comes as the question has arisen just their homes. N(
how many VRs are operating in the City,versus how many But some'people who own second homes in Morro sigt
are actually permitted to operate.It stems from a law'that Bay or investment homes,don't always follow the rules,es- brie
was passed to regulate them and livait how many rental pccially if they can't get a permit because they are all taken gag
homes in town can go the high-return,short-term rental up,which is what happened quickly after the first iteration
path, of this law set the limit at 250. it w
The City of Morro Bay,"reads the not ice,"adopted a In its final vote,the City Council set the limit at 175, at t
Short-Term Rental Ordinance that allows property owners as a small concession to a community that finds itself with Cat
to operate STRs in the City Limits,provided they com- a serious lack of available,long-term(monthly)rental Bar
ply with permit requirements and standards to tuinimize housing.As it stands now,the City is not issuing any more N»
neighborhood impacts.The STR Ordinance requires VR permits"for full home short-term vacation rentals in a
Vacation Rental laws Continued on page 20
News
Vacation Rentals From page t We asked the Crltntnultlty Development Department prosecute the matter or do you take it to the district attor-
residential zone,""until the number of active permits drop sonic follow up questions after their public announcement ney's office?What if the DA declines to file charges?Does
below 175." of the stepped up enforcement,seeking some clarification. the city attorney take over then?
About 2 years ago,the City hired a consultant,HdL, Community Development Director Airlin Singewald re- CRIB:The City's Code Enforcement division will issu
which used special software that identifies all VRs active- sponded for the City. citations for unpermitted STRs that continue to operate
ly advertising and renting on online platforms(AirBnB, Estero Bay News:How many STR permits are there without a permit.
VRBO,etc.),to locate listings in Morro Bay. right now?The limit says 175 in"residential zones;but EBN:And is this a civil matter or criminal?I didn't see
The planning department has taken that information initially that number was 250,so I'm curious how many you where the ordinance said there was jail time involved;just
and compared it to its own records.They've now sent have right now?And how many people are on the"waiting $500 a day fines.
notices to these extra VRs about their non-compliance and list?" CMB:The STR Ordinance states that violations of the
the significant penalties that come with skirting the law. City of Morro Bay:At last official count: ordinance may be punishable through:A)administrative
"Illegally operating STRs,"the City warned,"will be •Full I Ionic Rentals in residentially-zoned areas(sub- fines,and B)as infractions or misdemeanors.The City is
required to immediately cease operation;are liable for the ject to the cap)- 17 3; generally able to achieve compliance voluntarily(i.e.,when
last three years of unpaid TOT;and may face fines of up to Commercially zoned a'y; an owner or operator agrees to immediately cease opera-
$500 per day of non-compliance. • florae-sharing rental> 1 i, tion)or through citations.
"At the same time,the City will identify active STRs Total -1Q3 It should also be noted that these short-term rentals
that are partially compliant,meaning they are operating •Waitlist total e 169. or vacation rentals,whether they are a single-family home,
with expired business licenses or TOT accounts.The City "Beginning in January 2025,"Singewald said,"the City condo or secondary dwelling unit,are supposed to collect
may authorize a partially compliant STR to continue op- will begin requiring all permitted STRs to submit an annual and pay the City's transient occupancy taxes,which are set
eation once they renew their permits and pay applicable renewal application to verify continued compliance with at 10`,'3,of the cost of a room night.Plus,there's a 3%charge
back taxes." the STR ordinance.City staff will update these numbers that goes to promote tourism through a Tourism Business
Going forward,the City said it would more closely as more information becomes available through the annual Improvement District(TBID)assessment district;plus
enforce the ordinance,starting Jan. 1.These letters went permit renewal process." 1.5%that goes to the countywide tourism bureau;for a
.out last Nov.4. EBN:How many unpermitted STRs are operating in total of 14.5%in taxes on top of the cost for a night's stay in
"In a parallel effort,"the notice said,"the City will the City,HdL(the City's consultant on this)was supposed Morro Bay.
require all STR permit holders to renew their permits,as to find this out,right? The 6ty's budget shows the TOT to be the second
required by the STR Ordinance.This will involve comply- CMB:The City contracted with I-IdL to identify STRs largest source of taxes for the general fund behind proper-
tion of a renewal application and City inspection to verify advertising on online platforms and will compare this infor- ty taxes,which is how the City pays for its police and fire
compliance with applicable standards,including,but not oration to STR permit records to identify illegally operat- departments,among others.So,with predictions of a dire
limited to,parking and signage requirements." ing STRs.-The City sent about a dozen STR enforcement financial future for the City if it doesn't find more revenues
This is not the first time the City has made special letters to properties in November 2024. things like enforcement of the STR Ordinance could play
efforts to enforce certain laws.In the past,more than once EBN:And correct me if I'm wrong,but there are no an important role in the future financial health of the City.
actually,the City has tried to crack down on its sign ordi- limits on STRs in commercial zones,right?It's only the The Morro Bay TBID uses the taxes(3%)collected by
nance,in particular the sandwich board signs that can be residential areas where the 175 limit kicks in?What about hotels,motels,B&Bs,and VRs to promote tourism within
seen all over town on sidewalks outside businesses. mixed use zones? Morro Bay.The countywide TBID,called Visit SLO,pro
Technically,those are not allowed by the city's sign CMB:Correct,the 175 cap only applies to full home motes the whole county's tourism industry.
ordinance,along with the large"feather"signs and the rentals in residentially zoned areas. There is also the County Business Improvement
inflatable Tube Man signs normally signifying sonic sort of EBN:What's the process if someone is operating a District(CBID),which charges an extra 2%in bed taxes
special deal at the store. STR and doesn't comply with the ordinance?Do you ticket at lodging properties in the unincorporated areas of SLO
But after the signs are removed,citing public safety them and take them to court? County,using that money to promote the County territory.
as the reason,they disappear for a time but seem to creep CMB:All STRs will have to obtain the necessary per- Half of this CBID money goes back to an individual
their way back out on the sidewalk. nits or cease operation.Unpermitted STRs face a fine of up town's advisory board,which use their money to promote
If readers would like to know more about the to$500 per day. their individual town's tourism and to support special
City's Short Terri)Rental Ordinance,see the webpage EBN: In thar case,is it the city attorney who would events.
on the City's website at:www.rnorrobayca.govt 1085J
Short-Term-Vacation Rentals. Restoration 19 From page t
.,..,,,..,-i, t,,,r,,."a:..,-.., r,,, t .s.,.•t,.,:. ....-, nlant.Otherwise.volunteers remilarly-mend home nollinn
From: Bob and Dianna Dennv
To: Plannma;Brent Butler
Subject: Public Comment on STR"s
Date: Sunday,July 14,2024 3:08:46 PM
ALERT: BE CAUTIOUS This email originated outside the organization. Do not open
attachments or click on links if you are not expecting them.
These are my Public Comments to the Planning Committee about STR's
Dianna Denny, 200 Dennis Blvd., Cape George Village.
Reduced supply of housing due to the expansion of SRT's.
The effects SRT's are causing, rising rent, housing costs and lack of housing for our local workforce.
Is it possible the County could be held legally responsible if an injury or death occurs at an
unpermitted SRT?
The negative effects on our residential areas due to the uncontrolled amount of SRT's, noise, speeding,
parking
more pressure on or water and Septic Systems...
Zoning issues in areas that are more densely populated like Cape George that could end up with more
than their
fair share of SRT's.
More on Zoning, due to the lower cost of houses in Cape George Village more SRT's would pop up here.
From: Carla Main<mainwestpt@gmaiI.com>
Sent: Sunday, August 18, 2024 4:18 PM
To: Brent Butler<BButler@co.lefferson.wa.us>
Subject: Short Term Rental Policy Proposal
ALERT: BE CAUTIOUS This email originated outside the organization. Do not open attachments or click on links if you are
not expecting them.
Dear Brent,
I have been a local resident for over 20 years. I am an active volunteer with Housing Solutions Network (HSN) and am
writing to you today to urge you to support their Short Term Rental Regulation Proposal. I started volunteering with HSN
due to my long term concern with the lack of affordable housing in our county for our workforce, retired folks on a fixed
income, and our low income neighbors. It is clear that short term rentals take away housing units that otherwise
would be available to meet the needs of these folks.
I hear constantly from people who grew up here and can no longer afford to live here, from retired friends who are
getting evicted due to exorbitant rent hikes, from employers who cannot find employees due to the lack of workforce
housing.
I recognize that we are impacted by the same market forces that are creating housing problems all over the globe and
have limited tools to use locally to address our housing crisis. The proposal that HSN has forwarded for Short Term
Rentals can help us to use local tools to meet this need.
Please do all you can to enthusiastically move forward this proposal!
Thank you for your diligent work on behalf of our community,
Carla Main
Port Townsend
Brent Butler
From: Colleen Hackett <hackett3@icloud.com>
Sent: Thursday, February 20, 2025 6:45 PM
To: Brent Butler
Subject: Air bnb feedback from Feb 5/19 meetings
ALERT: BE CAUTIOUS This email originated outside the organization. Do not open attachments or click on links if you are
not expecting them.
Hi Brent. I attended the short term rental meetings on Feb 5th and 19th and send an email last August.Since the
meeting on the 5th I wanted to make sure I updated my comments. I wish I was a good speaker like so many others. It is
a chaotic process.After last night I think decisions are being rushed to meet the moratorium timeline and may need
more thought. Please accept my input from Feb 5th. I do appreciate and support the community development team.
Regards Colleen Hackett 206-290-2927
Hello,
I am a permitted air bnb owner since 2020. It is a small single family home in rural residential area. I have read the draft
and have questions and concerns and hope some areas are still under review. I did try to follow the comments but the
layers of meeting notes have been very hard to track Also as a permit holder I have not received outreach directly about
these impacts. I did receive and return the inspection packet a while back but didn't hear back.
Other owners are much more knowledgeable and Bring up very good points about the benefits that are brought to the
area. For me Many of my guests are there to see family who live nearby, attend events,whale watch is a popular
summer draw. It is very quiet and attracts small families that a hotel doesn't. Also it is accessible. Festivals,classes and
events are other draws. PT'd food is a big draw!This does bring revenue to the city and county including the hospitality
tax.
This was my grandparents then my parent's house. It is The oldest in the neighborhood. I can live in my residence part
time in the near future but I am not able to give up health insurance from my employer yet so I enjoy my weekends in
PT. I also really enjoy hosting. The positive feedback from happy people is a surprising boost to keep me going as it is
hard work.
Everyone has different interests so I will focus on one.The requirement to live on site is objectionable for me. It is a
very small single family home there is no way to live on site while there is guests.The positive comments and learning of
peoples adventures inspires me to keep improving my property. I would not go back to renting annually even though it is
more profitable.This is an older home . short term use leaves a light footprint. Full time rentals have shown to be very
hard on all my older systems.
I have a basic understanding of the housing and rental issues. I am lucky to have port Townsend roots and ability to buy
my dad's house.The Air bnb project seems to be an effort to go after the low hanging fruit.Also accommodate vocal
opposition to the platform. Other initiatives JC is doing like access to sewer system is a much greater impact to
affordability and density. The work done on ADU standards and approvals is impressive and ahead of many
communities.The leadership at community development has speed up permitting These will have real impacts to
housing affordability.
I understand the desire to exclude institutional investors in the platform.This policy in its current form targets small
single family home owners.
I will probably be forced to sell. I realize that does fit into some members goal as I am one of the few affordable houses
in the area. Many may consider it a tear down as a builder could then access the water views.
1
Also there needs to be a grace period for existing permitted homes if this stringent plan takes place. Cancelling summer
reservations is unacceptable. Capital investments and permitting fees are expensive and I already made that
investment. A minimum three year grace period to existing units to make alternative arrangements is also needed. No
mention of this.
Here is a link to my site.
arrIM
w.
Cottage in Port Townsend - *4.94 -2 bedrooms
Please revisit these changes before implemented.
Colleen Hackett
5252 Cape George Road.
2
Brent Butler
From: Deanna Hopper <deehopper@yahoo.com>
Sent: Thursday, February 20, 2025 7:18 PM
To: Brent Butler
Subject: Re: Short Term Rentals I Debi and Russell Avocato 1 601 Shine Road, Port Ludlow
ALERT: BE CAUTIOUS This email originated outside the organization. Do not open attachments or click on links if you are
not expecting them.
Will do.Thank you Brent.
-Deanna
Yahoo Mail:Search,Organize,Conquer
On Thu, Feb 20, 2025 at 7:06 PM, Brent Butler
<BButler@a co.jefferson.wa.us>wrote:
Dear Deanna Hopper,
Some parts of the county were specifically envisioned to have short term rentals. Go to the Jefferson County's Short-
Term Rental webpage which you can easily find by goggling—>Google 1)Jefferson County, 2)WA and 3)short term
rentals.
Please open the file named 2023 05 01 Short Term Rental presentation.See slide number 12.You find it under"2024
materials-preliminary STR planning process" ...it contains a graphic map
illustrating where they are allowed. Specifically, MPR-RC and CF zoning districts in the master-planned resort. I would
recommend that you go look at that short term rental webpage.
Sincerely yours,
Brent
Get Outlook for iOS
From: Deanna Hopper<deehopper@yahoo.com>
Sent:Thursday, February 20, 2025 4:16:38 PM
To: Brent Butler<BButler@co.jefferson.wa.us>
Subject:Short Term Rentals I Debi and Russell Avocato 1 601 Shine Road, Port Ludlow
ALERT: BE CAUTIOUS This email originated outside the organization. Do not open attachments or click on links if you are
not expecting them.
Good afternoon Brent,
Writing as an advocate for Debi and Russell Avocato's STR they own in Port Ludlow (601 Shine
Road, Port Ludlow). I stayed in their rental last summer and it was truly a great experience, great
enough that we have plans to return this summer. Debi and Russell's home is one-of-a-kind, and we
are honored to be able to enjoy such a serene setting. If Debi and Russell were unable to rent their
home, we would be missing out on a wonderful summer vacation.
1
Our choice has always been B&Bs / STRs because of the homey feel. Debi and Russell's property is
what drew us to visit the Port Ludlow area for the first time; were their home not an option, it's unlikely
we would have visited and explored the area.
Please consider not limiting the years of STRs. We would like to continue enjoying their home for
years to come if we and they choose.
Thank you..
Deanna Hopper
206-445-3693
z
Brent Butler
From: Debi Avocato <theadventurousavocado@gmail.com>
Sent: Friday, February 7, 2025 3:10 PM
To: Brent Butler
Subject: Proposed STIR regulations
ALERT: BE CAUTIOUS This email originated outside the organization. Do not open attachments or click on links if you are
not expecting them.
Hello, I'm an owner of a Short Term Rental, but most importantly, I'm a business owner. I don't just rent rooms out on a
platform to"transients"that pass through our town. Our rental has become more of a "staycation"for many
Washingtonians. We've had many wonderful families and couples stay in our home during their vacation. We provide a
luxury experience for them. Last year, one family in particular rented our home on four separate occasions. It's become
a special place to so many of our guests.
We have built up this property to accommodate everyone who visits. We have spent a lot of money in doing so. Some
of the money we used was from our own personal savings, and some was from a business loan. So it's disheartening to
learn that we may now lose our business due to Jefferson county limiting our permit to only 3 years. What other
businesses does the county do this to?Any?I don't think so. Can you imagine any business starting up,spending tens to
hundreds of thousands of dollars or more;and building a clientele,watching your business grow,finally starting to see a
return on your investment, only to be told that after three years you have to shut down? This is completely unfair.
Please reconsider this regulation and strike it from the ordnance.
Thank you,
Debi Avocato
601 Shine Rd.
1
February 19,2025
Via Electronic Mail Only bbutler&a co.jefferson.wa.us
Jefferson County Planning Commission
c/o Brett Butler,DCD Chief Strategy Officer
621 Sheridan Street
Port Townsend,WA 98368
RE: Public Comment/Written Testimony for Feb. 19, 2025 Public Meeting
Proposed Changes to Regulation of Short-Term Rentals
Dear Commissioners:
Thank you again for the important work that the Commission and Staff perform on behalf
of the citizens of Jefferson County. I most recently submitted public testimony/comment on
February 5,2025, for the meeting of the Planning Commission on that date.' In the interest
of brevity,I will not repeat the points already made;however,I respectfully request that my
prior testimony/comment be deemed part of the record for tonight's meeting. For purposes
of this letter,I will focus on certain issues and questions addressed by the February 14,2025,
Report to the Planning Commission prepared by Chief Strategy Officer,Brent A.Butler.
There is No Compelling Governmental or Public Interest in a Three-Year Validity Limit for
New Permits: Nowhere in the public testimony or evidence submitted so far is there support
for the need for limiting a permit for the operation of a short-term rental to three-years. If a
short-term rental otherwise complies with all requirements of the ordinance for purposes of
a permit issuing,on what defensible legal basis can the permit then be deemed invalid solely
as a result of the passage of time?Would the County consider issuing a restaurant permit on
the condition that the restaurant would need to cease operation at the end of three years?It
is,of course,defensible to make permits non-transferrable,meaning that if the ownership of
the property changes,the new owner would need to apply and obtain a permit. But once an
owner has met the requirements of obtaining a permit,deeming the permit invalid after the
passage of three years would pretty plainly constitute a regulatory taking under the Supreme
Court case cited by the report at page 2. See Penn Central Tramp. Co. v. New York City(1978).
On-Site STR's.Where the Owner Lives as a Primary Residence, Should Neither Be Subject
to the Three-Year Limit nor the Three-Percent Cap:The overriding rationale for changes to
regulation of STR is to preserve the availability of housing for long-term rental or purchase
by county residents. Unlike Off-Site STR's,an On-Site STR will only be made available for
' Before that,I submitted testimony/comment to the Commission by my letter of August 14,2024,as
well as to the Board of Commissioners by my letter of April 4,2024.
purchase when the entire property is put offered for sale.Thus,limiting On-Site STR's does
not increase the availability of residence for purchase.There is also little if any likelihood that
an onsite ADU,or one or more rooms in a residence,will be offered on a long-term basis if
it is not so offered already.This is especially true for owners,like me,who need flexibility in
not operating the ADU full-time,while nonetheless living full-time in the primary residence.
An ADU that would otherwise sit vacant if not used for portions of the year as an STR does
nothing to address the housing issues that are the primary rationale for revised regulations.
In Enacting Revised Regulations,It Should Not be Assumed that Even a Majority of STR's
Currently Operating n the County Will Qualify for a Permit:Based on the regulations under
consideration,we know that most Off-Site STR's now operating will no longer be allowed to
continue to operate. It can also be safely assumed that a non-insignificant number of STR's
located on a property where the owner resides will not qualify for a permit. For example, the
septic-system requirements will not be met,or the ADU will have been constructed without
proper permits or inspections. Therefore,given what is known and reasonably assumed,the
best approach would not enact a percentage-cap until more is known and understood about
the impacts of the new permit-requirements. In other words,a three-percent cap and three-
year limit are quite likely to end up being solutions to problems that will not end up existing.
In Sum: By focusing on elimination of Off-Site STR's with owners not present,and ensuring
On-Site STR's meet the health and safety requirements,the regulations may accomplish what
is hoped for without the need to rely on permit time-limits and a percentage-cap. Further,it
is not as if a time-limit on permits,and a percentage-cap on the total number of permits will
not be available as a regulatory tool in the future. If the revised regulations are to survive the
inevitable legal challenge,enactment needs to be based on more than assumptions that may
not prove to be provable or even true.
Sincerely,
Denis Stearns
Brent Butler
From: Eric Lentz <lentzerics@gmail.com>
Sent: Friday, February 7, 2025 4:01 PM
To: Brent Butler
Subject: Frequently asked questions
ALERT: BE CAUTIOUS This email originated outside the organization. Do not open attachments or click on links if you are
not expecting them.
Thank you, Brent.
Look forward to seeing the answers on the website you mentioned to these questions and other questions that
homeowners are posting.
To the FAQ site can you please also add the question;
"For HOA's that have already established STR rules and regulations and have them legally reviewed for constitutional
rights, property rights and privacy rights — does the county plan to scrap the work of those HOA'a and their
attorneys? Or allow those HOA's to operate by the rules they already have for their STR's?"
Thankyou
Eric S Lentz
206-465-4336
Sent from my Whone
On Feb 7,2025, at 2:12 PM, Brent Butler<BButler@co.jefferson.wa.us>wrote:
Dear Eric,
Thanks for your questions.Staff is preparing answers to frequently asked questions for the planning
commission and this will help inform it so be on the lookout for the next Planning Commission packet by
going to the Short Term Rental website next Friday.
Have a great weekend.
-Brent
From: Eric Lentz<lentzerics@gmail.com>
Sent: Friday, February 7, 2025 1:04 PM
To: Brent Butler<BButler@co.jefferson.wa.us>
Subject: Re:STR presentation,topic and comments for consideration
1
ALERT: BE CAUTIOUS This email originated outside the organization. Do not open attachments or click
on links if you are not expecting them.
Thank you, Brent.
Please can you also comment on these questions?
1. Grandfathering--A currently permitted STIR would be grandfathered into any
new ordinances for STR's?
1. If a current permitted STR is grandfathered in,then is the proposal to only allow
3 years from that time for that specific STR to have a permit before having to
reapply? Even if that wasn't the case when the STR owner purchased the home
and property with the intention to use the STR revenue to finance the
home? Wouldn't this place a severe financial hardship on the property owner?
1. Pleasant Harbor Resort planning--the presentation mentioned a higher
percentage of STR's in that area. What is that defined area? How far does it
stretch north/south on 101? Maybe I am misunderstanding this piece?
Thank you
Eric S. Lentz
206-465-4336
On Feb 7,2025, at 12:46 PM, Brent Butler<BButler@co.iefferson.wa.us>wrote:
Dear Eric,
For your assistance, I've posted the presentation. It will also be posted to the short-term
rental (STR)website if the file size prevents it from being transmitted.To get to the STR
webpage, please google, "Jefferson County," "WA,"and "Short-term rentals". Hope to
see you at the next meeting.
Your comments are now part of the official record and will be uploaded early next
week. Have a great weekend.
Warm regards,
Brent
Brent A. Butler
(he,him)
Chief Strategy Officer,AICP
2
Jefferson County Department of Community Development
621 Sheridan Street
Port Townsend,WA 98368
Phone 360-379-4493
bbutler(a co jefferson.wa.us
From: Eric Lentz<lentzerics@gmail.com>
Sent: Friday, February 7, 2025 12:23 PM
To: Brent Butler<BButler@co.iefferson.wa.us>
Subject:STR presentation,topic and comments for consideration
ALERT: BE CAUTIOUS This email originated outside the organization. Do not open
attachments or click on links if you are not expecting them.
Hi Brent,
I wanted to reach out and ask if an electronic copy of the STR presentation you gave on
02/05/2025 is available?
I am trying to watch it online, but the buffering and network errors make it very difficult
to try and watch.
Hoping you could email me to an electronic copy that I could go through? I am also
trying to figure out if I can download the presentation video but haven't had any luck
with that as of yet.
Also a few questions/clarifications on STR's in Jefferson County:
1. Grandfathering--A currently permitted STR would be grandfathered into any
new ordinances for STR's?
1. If a current permitted STR is grandfathered in,then is the proposal to only allow
3 years from that time for that specific STR to have a permit before having to
reapply? Even if that wasn't the case when the STR owner purchased the home
and property with the intention to use the STR revenue to finance the
home? Wouldn't this place a severe financial hardship on the property owner?
1. The buffering stopped me at about 34 minutes in and so I didn't get to fully see
the comments about landlords living on the premises. Please can you clarify the
points around where the landlord lives as it relates to the STR?
1. Pleasant Harbor Resort planning--the presentation mentioned a higher
percentage of STR's in that area. What is that defined area? How far does it
stretch north/south on 101? Maybe I am misunderstanding this piece?
Is there an opportunity for me to add any community feedback or comments at this
point or in the near future as these ordinances are considered?
A few comments that I would like to share are:
3
• 1 do support having the option to use my property for a short-
term rental. This was my intended use when I purchased the
property and there were no restrictions on renting at the time I
purchased. It would not be right to take this option from me, or any
current owner, who had not been advised of a restriction at the time
of their purchase.
• 1 am in favor of abiding by the rules I was permitted under.
• 1 do not intend to impose hardship on other owners when I use
my property for a rental, and do not wish hardship imposed on me
by others to prevent my intended use.
• It is possible that some would prefer not to have rentals in the
area. If it is the vote of the many that there are restrictions, those
restrictions should be stated for future buyers / potential STIR
owners. This plan would ensure all future purchasers were put on
notice that renting is not an option before buying the property. It is
not right this option should be stripped from current owners.
Thank you, and sincerely,
Eric S. Lentz
206-465-4336
<5Feb2025_Presentation.pdf>
4
Brent Butler
From: Eric Lentz <lentzerics@gmail.com>
Sent: Friday, February 7, 2025 1:04 PM
To: Brent Butler
Subject: Re: STR presentation,topic and comments for consideration
ALERT: BE CAUTIOUS This email originated outside the organization. Do not open attachments or click on links if you are
not expecting them.
Thank you, Brent.
Please can you also comment on these questions?
• Grandfathering--A currently permitted STR would be grandfathered into any new ordinances
for STR's?
• If a current permitted STR is grandfathered in,then is the proposal to only allow 3 years from
that time for that specific STR to have a permit before having to reapply? Even if that wasn't the
case when the STR owner purchased the home and property with the intention to use the STR
revenue to finance the home? Wouldn't this place a severe financial hardship on the property
owner?
• Pleasant Harbor Resort planning--the presentation mentioned a higher percentage of STR's in
that area. What is that defined area? How far does it stretch north/south on 101? Maybe I am
misunderstanding this piece?
Thankyou
Eric S. Lentz
206-465-4336
On Feb 7,2025, at 12:46 PM, Brent Butler<BButler@co.jefferson.wa.us>wrote:
Dear Eric,
For your assistance, I've posted the presentation. It will also be posted to the short-term rental (STR)
website if the file size prevents it from being transmitted.To get to the STR webpage, please google,
"Jefferson County," "WA,"and "Short-term rentals". Hope to see you at the next meeting.
Your comments are now part of the official record and will be uploaded early next week. Have a great
weekend.
i
Warm regards,
Brent
Brent A. Butler
(he,him)
Chief Strategy Officer,AICP
Jefferson County Department of Community Development
621 Sheridan Street
Port Townsend,WA 98368
Phone 36o-379-4493
bbutlerRa co.jefferson.wa.us
From: Eric Lentz<lentzerics@gmail.com>
Sent: Friday, February 7, 2025 12:23 PM
To: Brent Butler<BButler@co.jefferson.wa.us>
Subject:STR presentation,topic and comments for consideration
ALERT: BE CAUTIOUS This email originated outside the organization. Do not open attachments or click
on links if you are not expecting them.
Hi Brent,
I wanted to reach out and ask if an electronic copy of the STR presentation you gave on 02/05/2025 is
available?
I am trying to watch it online, but the buffering and network errors make it very difficult to try and
watch.
Hoping you could email me to an electronic copy that I could go through? I am also trying to figure out if
I can download the presentation video but haven't had any luck with that as of yet.
Also a few questions/clarifications on STR's in Jefferson County:
1. Grandfathering--A currently permitted STR would be grandfathered into any new ordinances
for STR's?
1. If a current permitted STR is grandfathered in,then is the proposal to only allow 3 years from
that time for that specific STIR to have a permit before having to reapply? Even if that wasn't the
case when the STR owner purchased the home and property with the intention to use the STR
revenue to finance the home? Wouldn't this place a severe financial hardship on the property
owner?
1. The buffering stopped me at about 34 minutes in and so I didn't get to fully see the comments
about landlords living on the premises. Please can you clarify the points around where the
landlord lives as it relates to the STR?
1. Pleasant Harbor Resort planning--the presentation mentioned a higher percentage of STR's in
that area. What is that defined area? How far does it stretch north/south on 101? Maybe I am
misunderstanding this piece?
2
Is there an opportunity for me to add any community feedback or comments at this point or in the near
future as these ordinances are considered?
A few comments that I would like to share are:
• 1 do support having the option to use my property for a short-term rental. This
was my intended use when I purchased the property and there were no
restrictions on renting at the time I purchased. It would not be right to take this
option from me, or any current owner, who had not been advised of a restriction
at the time of their purchase.
• 1 am in favor of abiding by the rules I was permitted under.
• 1 do not intend to impose hardship on other owners when I use my property
for a rental, and do not wish hardship imposed on me by others to prevent my
intended use.
• It is possible that some would prefer not to have rentals in the area. If it is the
vote of the many that there are restrictions, those restrictions should be stated for
future buyers / potential STIR owners. This plan would ensure all future
purchasers were put on notice that renting is not an option before buying the
property. It is not right this option should be stripped from current owners.
Thank you, and sincerely,
Eric S. Lentz
206-465-4336
<SFeb2025_Presentation.pdf>
3
Brent Butler
From: Eric Lentz <lentzerics@gmail.com>
Sent: Friday, February 7, 2025 12:23 PM
To: Brent Butler
Subject: STR presentation,topic and comments for consideration
ALERT: BE CAUTIOUS This email originated outside the organization. Do not open attachments or click on links if you are
not expecting them.
Hi Brent,
I wanted to reach out and ask if an electronic copy of the STR presentation you gave on 02/05/2025 is available?
I am trying to watch it online, but the buffering and network errors make it very difficult to try and watch.
Hoping you could email me to an electronic copy that I could go through? I am also trying to figure out if I can download
the presentation video but haven't had any luck with that as of yet.
Also a few questions/clarifications on STR's in Jefferson County:
• Grandfathering--A currently permitted STR would be grandfathered into any new ordinances for STR's?
• If a current permitted STR is grandfathered in,then is the proposal to only allow 3 years from that time for that
specific STR to have a permit before having to reapply? Even if that wasn't the case when the STR owner
purchased the home and property with the intention to use the STR revenue to finance the home? Wouldn't
this place a severe financial hardship on the property owner?
• The buffering stopped me at about 34 minutes in and so I didn't get to fully see the comments about landlords
living on the premises. Please can you clarify the points around where the landlord lives as it relates to the STR?
• Pleasant Harbor Resort planning--the presentation mentioned a higher percentage of STR's in that area. What
is that defined area? How far does it stretch north/south on 101? Maybe I am misunderstanding this piece?
Is there an opportunity for me to add any community feedback or comments at this point or in the near future as these
ordinances are considered?
A few comments that I would like to share are:
• 1 do support havinq the option to use my property for a short-term rental. This was my
intended use when I purchased the property and there were no restrictions on renting at the
time I purchased. It would not be right to take this option from me, or any current owner, who
had not been advised of a restriction at the time of their purchase.
• 1 am in favor of abiding by the rules I was permitted under.
• 1 do not intend to impose hardship on other owners when I use my property for a rental,
and do not wish hardship imposed on me by others to prevent my intended use.
1
• It is possible that some would prefer not to have rentals in the area. If it is the vote of the
many that there are restrictions, those restrictions should be stated for future buyers / potential
STIR owners. This plan would ensure all future purchasers were put on notice that renting is
not an option before buying the property. It is not right this option should be stripped from
current owners.
Thank you, and sincerely,
Eric S. Lentz
206-465-4336
z
Brent Butler
From: Eric Peterson <erictpeterson@yahoo.com>
Sent: Friday, February 7, 2025 3:48 PM
To: Brent Butler
Subject: RE: Short term rental in Port Townsend
ALERT: BE CAUTIOUS This email originated outside the organization. Do not open attachments or click on links if you are
not expecting them.
You to Brent.
Yahoo Mail:Search, Organize, Conquer
On Fri, Feb 7, 2025 at 12:51 PM, Brent Butler
<BButler@co Jefferson.wa.us>wrote:
Dear Eric,
Your comments have been received and are being added to the official record that'll be upload for all community
members to see early next week. Thank you!
Have a great weekend.
Warm regards,
Brent
Brent A. Butler
(he, him)
Chief Strategy Officer, AICP
Jefferson County Department of Community Development
621 Sheridan Street
Port Townsend, WA 98368
Phone 360-379-4493
bbutler(c-)co.iefferson.wa.us
1
From: Eric Peterson<erictpeterson@yahoo.com>
Sent:Wednesday, February 5, 2025 10:18 PM
To: Brent Butler<BButler@co.jefferson.wa.us>
Subject:Short term rental in Port Townsend
ALERT: BE CAUTIOUS This email originated outside the organization. Do not open attachments or click on links if you are
not expecting them.
Through public comment (email affirm that limiting and regulating short term
rentals is a win for our community. You can specifically applaud the inclusion of the following proposal
items:
• Protecting local communities and housing by capping STRs to 3%of Jefferson County, or
zipcode, housing units;
• Encouraging equity in the STIR markets by limiting their permits at 3 years;
• Protecting entire housing units from being used as an investment opportunity by requiring
the landlord/owner to be present and reside on the property.
Hi Brent. I'm very grateful for the work of Liz and Co at HSN. In most respects they are worthy of
support.
I have to formally and vehemently disagree with their conclusions on short term housing however.
As a real homeowner with my own real money, time and sweat equity tied together into an
unrelenting commitment to affordable housing in Jefferson county, I understand this dynamic between
short term rental and long term affordable housing better than the advocacy groups. Short term
hospitality hosting is an essential and powerful tool to subsidize long term affordable housing when its
managed by the same stakeholders. Without it as an option, many long term affordable housing
projects would simply be too risky and the workforce housing provided would be less livable. They
support eachother. As an ecosystem, hospitality hosting is the food that feeds affordable workforce
housing projects. Its the flexible source of funding that makes affordable workforce housing
sustainable. They exist in proportion to eachother. Limiting STRs will decimate the availability of
affordable workforce housing. HSN is flat out wrong on their conclusion.
Yours truly,
Eric Peterson,
2
The Forest House and Three Peas Farm, Port Townsend
3
From: Glori Zeltzer<toglori@gmail.com>
Sent: Friday,July 12,2024 10:13 PM
To: Planning<planning@co.iefferson.wa.us>
Subject: STIR Concerns
ALERT: BE CAUTIOUS This email originated outside the organization. Do not open attachments or click on
links if you are not expecting them.
I'm writing to address the issue of short term rentals.
I live in Cape George Village, and although I have no concerns for how our current, few, STR's impact our community, I
am concerned about any substantial increase in their numbers.
I like the proposals to limit STR's in Port Townsend to 2%as has Port Angeles, with full time residents being able to offer
limited short term rentals of their primary residence. I would like to see investors and corporations prohibited from
buying properties for rentals.
I am concerned about the lack of affordable housing, and how it's impacted our community.
Thank you for your time,
Glori Zeltzer
When we listen to people. our language softens. Listening may be the cardinal act of giving... it is the source of peace. -Paul
Hawken
"There are two basic motivating forces:fear and love. When we are afraid, we pull back from life. When we are in love,
we open to all that life has to offer with passion, excitement, and acceptance. We need to learn to love ourselves first, in
all our glory and our imperfections. If we cannot love ourselves, we cannot fully open to our ability to love others or our
potential to create. Evolution and all hopes for a better world rest in the fearlessness and open-hearted vision of people
who embrace life."
— John Lennon
Yi.OVA m►ns 1.a•„
}. This position paper is being drafted for consideration to the Jefferson County
Planning Commission and the Department of Community Development on
behalf of the advocates at Housing Solutions Network.
The statements included in this paper serve as a representation of community
members who are in favor of regulating short term rentals in Jefferson County
�' -;,, ,� ;,•�,°`' to help preserve housing stock for long term rentals or purchase for local
residents.
HSN will be working in the coming months to help supply homeowners interested in shifting from
short term to long term rentals with support and resources. We welcome feedback on this process
and engagement from veteran landlords, newbies, and tenants as we continue to promote our vision
of affordable workforce housing solutions that foster a thriving community and support economic
vitality.
Local Economy. Local Workforce. Local Housing.
Advocates at Housing Solutions Network support the following ideas as they relate to the regulation
of Short Term Rentals (STRs) that fall under permanent structure housing accommodations, or
Category Type 1, according to the Jefferson County DCD, and do not extend to transient rentals
without structures.
Currently there are around 470 short term rentals in Jefferson County that we could find between
AirBnB + VRBO, the two largest platforms for STRs (however, there are many new platforms popping
up all the time!). The county has suggested that maybe half are permitted, and In this press release,
the County states that "information suggests there may be over 400 STRs in the county operating
without the required permits", meaning illegal STRs. These numbers also include Type 2 unstructured
units, like HipCamp or Glamping (seasonal accommodations), so it's hard to know how many are
actually out there because many of them are illegal. HSN is not recommending any regulation
suggestions for Type 2 unstructured units as we hope they don't impact affordable housing options
(although we acknowledge many people in our community live in recreational vehicles, outbuildings,
and yurts that are designed to be seasonal housing).
We propose the following regulations be considered by the Department of Community Development
and the Jefferson County Planning Commission:
HSN Short Term Rental Regulations August 12.2024
Cap the number of Short Term Rentals (STRs) to 2% of the County's Housing Units
Capping the number of STRs prevents investment opportunities from inflating housing prices,
reducing access to long-term rentals, or reducing inventory for purchase for and by local
residents. A sliding (growing) cap would help keep STRs in direct relation to housing stock-
fluctuating with new builds and availability.
Permits by Housing Stock:
Total JeffCo Port Townsend Housing #of County Housing #of Housing Units
Housing Units** Units Units x 2%
19,087 5,692 13,395 x 2% 268 units
**According to the 2020 US Census; Calculation: Total-Port Townsend= County#x 2% _ #of units to set cap.
Require homeowners to apply for short term rental permits for property. STRs should not be
issued to homeowners or corporations operating more than one STR in Jefferson County.
Permitting is not a new requirement, but should be restated to ensure that residents and
homeowners are aware of this requirement and the steps to receive a permit.
Issue new permits every five years in relation to the growing number of housing units. By
nature, permits will be available every year by the organic process of buying and selling
housing stock in our community. Permits should not be transferable at point-of-sale. The
Department of Community Development will review the number of housing units every five
years to increase the total number of permits issued and should announce a set date in which
new issues will be available (ex: November 1 st applications open).
Require short term vacation rental platforms, like AirBnb, VRBO, and others to register with
the County in order to operate.
Requiring short-term rental platforms (like AirBnb, VRBO, etc.) to register in Jefferson County
holds accountability and enforceability to vacation platforms that take a percentage of the
income from STRs.
Use platform-based enforcements to ensure permit compliance; meaning units can only be
available on rental platforms if they have an active permit issued by the local jurisdiction.
Alleviates enforcement from local government municipalities to platform-specific
enforcement, reducing overhead costs of city or county government. If the homeowner
doesn't have an active permit, the platform would not be able to host the STR option on their
site.
HSN Short Term Rental Regulations August 12,2024
Limit one STR per homeowner and require the homeowner to reside on premise for at least 6
months out of the calendar year. This would ensure that entire units can't be used solely for
STRs and allow for second homes to be used in "off-season".
By requiring the owner on premise for at least 6 months out of the year, this would prohibit the
purchase of a single family home to be used solely for investment purposes. This would also
encourage individuals with second homes to open up their units while they weren't being used
to be a part of the STR housing stock. This would not prevent second homes from being
purchased in our community, but may incentivize homes that sit empty part-time to be
occupied more. Many of the complaints during community forums came from neighbors
where absentee STR owners weren't present in the community where they had an investment
property and didn't respond to complaints of noise, traffic, or health and safety issues with the
home. By requiring the homeowner to live on the same property for a portion of their time, this
will help increase dedication and accountability to their STR.
Establish term limits of five years for STR permits, allowing a more equitable approach to
those interested in short term rental opportunities.
Term limits would offer a more equitable approach to those who are interested in hosting
short term rentals on their properties. This would prevent FCFS or grandfathering of homes to
be held in perpetuity. With limitations on the number of permits, this would allow for a variety
of homeowners to open their property up to STRs for a limited time. Permits would not be
transferable at point-of-sale, which would prevent market speculation and an inflation of
home prices. Additionally, permits would become available organically over time and not be
restricted solely to groups every five years.
We would also like to note that the determination of any geographic limitations for STRs should
be designated by the DCD staff and Planning Commissioners and abide by all health and safety
standards as currently outlined in IRC building codes, applicable taxes, and other local
regulations.
HSN Short Term Rental Regulations August 12,2024
STIR Public Comment 2024-04-05
1 have my own house listed on Airbnb, but I only rent it out when I go on a vacation for longer than a week, mainly in
order to have someone water my houseplants, as well as make a little money. I think that people who rent their own
homes in such a manner should be excluded from any undo restrictions or be required to obtain a license, as it doesn't
affect the the availability of local housing in any way, but it does provide an opportunity for tourists to visit and spend
their money here.
Judith Rudolph jr@olympus.net
Brent Butler
From: Kevin Sanchez Morales <kevin.sanchez@airbnb.com>
Sent: Wednesday, February 12, 2025 1:59 PM
To: Brent Butler
Subject: Short-Term Rental Discussion
ALERT: BE CAUTIOUS This email originated outside the organization. Do not open attachments or click on links if you are
not expecting them.
Hi Brent,
My name is Kevin, and I am a policy associate at Airbnb. Over the past few weeks,we have had hosts reach out to us
about potential STR regulations. Last week, I was able to connect with some of your colleagues and was informed to
connect with you on this matter.
As you consider regulating short-term rentals in Jefferson County, I'd be happy to connect and answer any questions you
might have. I'd also like to go over several tools and resources we have available to address common things brought to
our attention by staff and elected officials.
Best,
0 _.
Kevin Sanchez
Policy Associate, Local Governments
X
i
Brent Butler
From: Lynne Reister <lodestarmarine@aol.com>
Sent: Tuesday, February 18, 2025 5:11 PM
To: Brent Butler
Cc: Lynne Reister
Subject: STR AND AIRBNB
ALERT: BE CAUTIOUS This email originated outside the organization. Do not open attachments or click on links if you are
not expecting them.
Sharing our home and making our ADU, and other properties is important to many.
I have sent my concerns before.
I am 83 yrs old.
I depend on these additional fund to support myself without retirement funds.
I enjoy my guests and sharing the special things in our communities and state.
Most come to enjoy our state parts, relatives (without additional space for guests), hiking,
boating, visiting festivals.
I also host visiting medical staff. There is a housing shortage in Jefferson County and out
hospitals (and out community) pay the price when employees cannot find housing.
Guest bring dollars to our economy.
Do not limit STRs to owner occupied residences only.
Thank you, Lynne
Lynne Reister,AMS,CMI
Lodestarmarine@aol.com
206-841-6006
Lodestar:A Guiding Principle-Ideal,•
as Let the Pursuit of Truth be your Lodestar!
English:hence a star by which to direct one's way!
1
Brent Butler
From: Lynne Reister <lodestarmarine@aol.com>
Sent: Tuesday, February 18, 2025 5:11 PM
To: Brent Butler
Cc: Lynne Reister
Subject: STR AND AIRBNB
ALERT: BE CAUTIOUS This email originated outside the organization. Do not open attachments or click on links if you are
not expecting them.
Sharing our home and making our ADU, and other properties is important to many.
I have sent my concerns before.
I am 83 yrs old.
I depend on these additional fund to support myself without retirement funds.
I enjoy my guests and sharing the special things in our communities and state.
Most come to enjoy our state parts, relatives (without additional space for guests), hiking,
boating, visiting festivals.
I also host visiting medical staff. There is a housing shortage in Jefferson County and out
hospitals (and out community) pay the price when employees cannot find housing.
Guest bring dollars to our economy.
Do not limit STRs to owner occupied residences only.
Thank you, Lynne
Lynne Reister,AMS,CMI
Lodestarmarine@aol.com
206-841-6006
Lodestar:A Guiding Principle-Ideal,
as Let the Pursuit of Truth be your Lodestar!
English:hence a star by which to direct one's way.
1
McDermott 1000 SW Broadway, Suite 960
Weaver Portland, Oregon 97205
Connelly 503.208.6848
Clifford LLP MWCC.law
February 18, 2025
By Email& U.S. Mail
Ciaran P.A. Connelly Jefferson County Planning Commission
cconnelly@mwcc.law 621 Sheridan Street
503.208.5991 Port Townsend, WA 98368
PlanCornm@co.jefferson.wa.us
Also admitted in
New York Utah Re: Public comment on draft Short-Term Rental Ordinance
Washington
Dear Members of the Planning Commission:
On behalf of interested stakeholders, we submit the below comments
on the revised proposed short-term rental ("STR") ordinance (the
"Ordinance"), including the legal challenges the Ordinance could face if
adopted.
1. State law already governs short-term rental use of property.
The Ordinance needlessly and confusingly attempts to regulate an area
of property use that the State Legislature has already regulated.
In 2019, the Legislature adopted what became Chapter 64.37 of the
Revised Code of Washington, governing short-term rentals.That
chapter has comprehensive provisions governing topics from taxation
and consumer safety to insurance and operation of STR platforms.
Chapter 64.37 implements the Legislature's considered judgment on
the appropriate balance between competing interests by, for example,
carefully delineating between the uses to which Chapter 64.37 applies
and those uses that the Legislature decided do not warrant regulation.
See, e.g., RCW 64.37.010(9) (defining "Short-term-rental"to include
and exclude certain uses).
The Ordinance being considered by the Planning Commission would
imposing a different and conflicting STR regulatory scheme. Not only
would adoption of the Ordinance upset the careful balance struck by
the Legislature, but it could create a conflict with Chapter 64.37 that
would subject the Ordinance to legal challenges. See, e.g., Watson v.
February 18, 2025
MCC Jefferson County Planning Commission
Page 2
City of Seattle, 189 Wn.2d 149, 171 (2017) ("A state statute preempts
an ordinance if the statute occupies the field or if the statute and the
ordinance irreconcilably conflict."); Brown v. City of Yakima, 116 Wn.2d
556, 559 (1991) (similar); Dept. of Ecology v. Wahkiakum County, 184
Wn. App. 372 (2014) (holding County's ordinance to be preempted
where it banned use of biosolids that was permitted by state law).
The County should not second-guess the Legislature's judgment or risk
incurring legal liability by adopting the Ordinance that is wholly
unnecessary in light of RCW Chapter 64.37.
2. The Ordinance's primary residence restriction violates the
dormant commerce clause of the U.S. Constitution.
The Ordinance's requirements that the short-term rental be "located at
the landlord's primary residence" and that the landlord "be personally
present and living in the dwelling" if the landlord wishes to rent out the
property for more than "15 today[sic] days in a calendar year" violate
the dormant commerce clause of the U.S. Constitution.
Laws, like the Ordinance, that discriminate against interstate
commerce by treating in-state and out-of-state interested differently
are likely to be unconstitutional under Article I, Section 8, Clause 3 of
the United States Constitution. See, e.g., C&A Carbone, Inc. v. Town of
Clarkstown, 511 U.S. 383, 390 (1994). In the context of STRs, laws
that impose a residency requirement on those wishing to operate a
short-term rental are unconstitutional.See Hignell-Stark v. City of New
Orleans, 46 F.4th 317, 327 (5th Cir. 2022) (holding New Orleans'
requirement that the owner of short-term rental be a resident was
unconstitutional).
Because the draft Ordinance includes such residency requirements, it
would be unconstitutional if adopted.
3. At a minimum,the County should exempt existing uses from
the Ordinance's requirements.
The imposition of the various regulatory burdens of the Ordinance on
current and prospective Jefferson County STR hosts could constitute a
February 18, 2025
MCC Jefferson County Planning Commission
Page 3
compensable taking from those hosts without just compensation in
violation of the Takings Clause of the U.S. Constitution.
The Takings Clause states that"private property [shall not] be taken for
public use, without just compensation."Various provisions of the
Ordinance, such as the permit cap, could affect both a "regulatory"
taking and a "per se" taking.
The Supreme Court has noted three "factors that have particular
significance" when conducting the regulatory takings inquiry: (1) "[t]he
economic impact of the regulation on the claimant," (2) "the extent to
which the regulation has interfered with distinct investment-backed
expectations," and (3) "the character of the governmental action."'The
permit cap could totally frustrate the investment-backed expectations
of Clatsop County hosts who have purchased or developed property for
purposes of operating STRs, significantly reducing the value of such
property through constraints on new permits and the transfer of
existing permits.
Additionally, Supreme Court caselaw has underscored that
governmental regulation can affect a compensable taking per se when
it interferes with the "power to exclude" which is "one of the most
treasured strands in an owner's bundle of property rights."2 Recent
federal appellate precedent suggests that government action
restricting an "owner's right to exclude others" can give rise to a taking
even in the absence of a direct physical intrusion.3 STR restrictions like
the permit cap burden appropriate a host's right to rent their property
to tenants on a short-term basis, interfering with host's right to control
who has access to their property.
1 Penn Central Transportation Co. v. New York City,438 U.S. 104, 124(1978)
Z Loretto v. Teleprompter Manhattan CATV Corp.,458 U.S. 419, 435(1982);see also
Sheetz v. County of El Dorado, California,601 U.S.267,274(2024)("[T]he right to
compensation is triggered if[authorities] 'physically appropriat[e]' property or
otherwise interfere with the owner's right to exclude others from it.").
3 Darby Dev. Co., Inc, v. United States, 112 F.4th 1017, 1034-35(Fed.Cir.2024).
February 18, 2025
MCC Jefferson County Planning Commission
Page 4
Finally, the Supreme Court requires that,to be constitutional,there
must be both an essential nexus and rough proportionality between
regulation and the conditions imposed by the regulation on the
property owner.4 Here, it is doubtful that the Ordinance's provisions—
including the arbitrary cap on the number and location of permits—can
satisfy these constitutional requirements.
To avoid exposing itself to takings claims, Jefferson County should
decline to adopt the Ordinance. At a minimum, Jefferson County should
make clear that the Ordinance does not apply to existing short-term
rental uses.5
Sincerely,
Ciaran P.A. Connelly
4 Sheetz,601 U.S.at 275-76.
5 The proposed Ordinance,at Appendix D,§ 18.20.210(3)(e)(iii)appears to include at
least a partial exemption for existing uses. But to avoid takings claims,this exemption
should be expanded and clarified to ensure that the Ordinance does not apply to any
landlord's existing use of their property.
Brent Butler
From: Natalie Bahl <natalieteresebahl@gmail.com>
Sent: Friday, February 7, 2025 2:18 PM
To: Brent Butler
Subject: SUBJECT: STR Ordinance
ALERT: BE CAUTIOUS This email originated outside the organization. Do not open attachments or click on links if you are
not expecting them.
To All Whom It May Concern:
I am writing today to express disappointment in the proposed ordinance to restrict short term rentals in Jefferson
County. Our family has a tradition of traveling to a cabin outside of Port Townsend each year. It has become a very
special place to all of us and we've celebrated many big family milestones there.We have gotten to know the owners
over the years,which is how I became aware of the new ordinance. I was devastated to learn that we may not be able to
continue our annual tradition since the owners do not live on site and could lose their ability to rent their home to us.
If this ordinance is passed we will have to find another cabin outside of Jefferson County to visit, but it won't be the
same.We love spending time (and money!) in your beautiful county and, until now, have always felt welcomed by the
warmth of the community.We know there are many factors at play, but we also hope you will also consider visitors'
perspectives when making your decision.
Sincerely,
Natalie Bahl
1
Dear Jefferson County Commissioners
My name is Paul Bezilla and I live full time with my wife Annie in the Cape George community
just outside Port Townsend. I am writing to express both my concern for the number of
permitted and illegal STR's in Jefferson County, the problems that come with them, and my
support for enforceable STIR regulations.
I am a retired captain from the Anchorage Fire Dept in Anchorage Alaska. During my 20+ years
on the job, I have witnessed many tragedies first hand when either codes or regulations are not
adopted or enforced. Unfortunately it is usually only after there is a loss of life that there is
overwhelming support for adoption, regulation, and enforcement.
In my experience, it is far to common for families that live in a small 2 bedroom home and grow
their families, who then cannot afford to buy a larger home or expand their existing home, turn
areas like their basement or office areas into a children's bedroom. Areas that were never built
or permitted to be a sleeping area. When a fire fatality happens in homes like these, due to the
fact that fire fighters, with all of our gear on, cannot access an area due to inadequately sized
windows or no windows at all, someone dies, and it truly is a tragedy.
When this same loss of life happens due to the fact that a person or a business wanted to
increase their profits by renting out a 2 bedroom home and allows 8 or more people to sleep
there, this is not just a tragedy, it's criminal.
I retired from the fire department and moved to Sedona Arizona in 2016 before moving to Cape
George last year. The main reason my wife & I left sunny Sedona for Port Townsend was 100%
due to the loss of community from STR's. Our neighborhood in Sedona was one of the most
saturated in the city. In 7 short years we went from 0% to 72% STR's. Our neighborhood and
community was changed forever.
This all occurred due to the fact that in 2016 the governor of Arizona forced all towns and cities
within the state to allow STR's. And like Port Townsend, Sedona had a 30 day minimum rental
ordinance but this ordinance was overturned by the new state law. Even though Sedona heavily
relies on tourism, the city fought the state on this issue and unfortunately lost. Our city was even
threatened to loose state funding if we attempted to impose any type of regulation on STR's. (if
interested, see attached news article to verify these claims).
As of 2023, Sedona had a population of 9,790 people and 4936 residential homes. Out of the
4936 homes there are now over 1100 STR's. That is nearly 1 in 4 homes being an STIR.
Some might think that a city that relies so heavily on tourism for a majority of it's funding would
be very supportive of something like STR's as it should bring in more tourists and money, right?
From the beginning, the city of Sedona realized that this would cause more problems than
benefits, and they were right. (if interested, see attached White Paper report commissioned by
the City of Sedona. While this report was published in Feb 2021, most of the data was collected
from 2019 & 2020. The number of STR's in Sedona proliferated during the pandemic years of
2022 & 2023 which are not included in this report.)
For the past several years, the city of Sedona has been dealing with critical housing shortages
for workers as many long term rentals have been converted into profitable STR's, many of
which are owned by corporations and businesses. Water, sewer, fire services, and traffic have
all been severely impacted for this small town due to the increase of STR's. The damage is
done and due to state law and private property rights in Arizona, they cannot put the horse back
in the barn. There is no turning back for Sedona.
After living in a neighborhood of Sedona that was so heavily affected by STR's, due to our
location being in close proximity to many popular trails and tourist attractions, I am deeply
concerned and hope that commissioners also consider the impact to communities like Cape
George and Kala Point during this process.
Due to the fact that Port Townsend is one of the main tourist destinations in Jefferson County,
and the city can legally ban STR's, places that are "bedroom communities" like Cape George,
will most likely have a higher percentage of STR's and the problems that come with them.
It is my hope that the county not only considers regulations that permits a limited number of
STR's in Jefferson county, but that each geographical community that may be more impacted
than others are considered in crafting these regulations.
I truly applaud the Jefferson County commissioners and planning department for being
proactive and forward thinking on this very important issue that impacts all aspects of our
community. While I am not necessarily anti-STR, I am certainly 100% in support of clear and
enforceable regulations that support the people that actually live and work in our county.
Clear and enforceable regulations will provide a legally permitted and safe place for tourists to
stay in, preserve long term rental housing for the people that actually keep our community
functioning, and will go a long way in preserving the quality of life that this county is cherished
for.
Thank you for allowing me to take your time and express my concerns.
Sincerely,
Paul Bezilla
https://www.redrocknews.com/2021/05/`18/chamber-of-commerce-hotels-ta lk-short-term-rentals/
The Negative Consequences of Short-Term
Rentals — Arizona's Recipe for Disaster
M
February 2021
Prepared by:
Elliott D. Pollack & Company
7SOS East 6'h Avenue, Suite 100
Scottsdale, Arizona 852S1
Table of Contents
Preface 1
Executive Summary- Observations and Conclusions 2
Short Term Rentals and The Sharing Economy 6
Arizona's Experience with Short Term Rentals 8
Impacts of the Short-Term Rental Industry 16
1. Adverse Impacts to Residential Neighborhoods by
Circumvention of Zoning Laws 16
2. Rising Housing Costs and Loss of Long-Term Rental Units 17
3. The Net Economic Benefits of STRs are Questionable
and Grossly Overstated in STIR Studies 19
4. Local Government Taxation Problems 20
5. Adverse Impacts of STRs on Jobs and the Hotel Market 22
6. The Growth of Multi-Unit Hosts 24
Regulatory Efforts of Local Governments 27
Appendix: Letter from Arizona Mayors to Airbnb and
Expedia Group CEOs 31
Endnotes 36
References 38
TOC
The Negative Consequences of Short-Term Rentals—Arizona's Recipe for Disaster
Preface
This research report was initiated to study the secondary or indirect impacts of the short-term
rental (STR) industry on cities and neighborhoods, with a particular focus on Arizona — a state
with some of the most STR industry-friendly laws that eliminate local oversight over these
activities where they occur. During the course of the study, it became obvious that the so-called
"unintended consequences" of the STR industry, often directed by Airbnb, are actually direct
attempts to undermine local land use control, health and safety regulations, and tax collection
all in an effort to maintain and grow revenues for this industry and, in the case of Airbnb,preserve
its stock market valuation (currently more than Marriott and Hilton combined). The conclusion
of this research report is that any supposed unintended consequences of the STR industry are
instead direct, intentional consequences that will continue to affect local governments, the
housing market, and residential neighborhoods until STR platforms are willing to negotiate in
good faith to resolve these issues. Moreover, Arizona's unique, STR industry-leaning regulatory
framework is intensifying adverse impacts on Arizona neighborhoods and the State. These
negative impacts cannot be addressed adequately until and unless Arizona returns to a more
mainstream approach that re-empowers local communities to use oversight and enforcement
tools:tools that have proven effective in many other jurisdictions across the country that are not
impeded by state-level laws like those in Arizona.
1
The Negative Consequences of Short-Term Rentals—Arizona's Recipe for Disaster
Executive Summary - Observations and Conclusions
The sharing economy, in its simplest terms, is a system in which assets or services are shared
between private individuals, either free or for a fee, typically by means of the internet. Some of
the best-known sharing economy platforms are those focused on short-term rentals exemplified
by Airbnb. The STR industry is based on the premise that a person can rent a home they live in or
a room in their home or a separate unit on their property (guest house, granny flat, auxiliary
dwelling unit) to another person for income. This is the perception the STR industry tries to
portray in its marketing efforts, but the industry has transformed into a variety of different
business models, many of which involve exploiting regulatory loopholes all under the guise of
innovation.
Findings and Conclusions
The review of business trends of the STR industry outlined in this study and the experiences of
cities in dealing with the negative impacts of short-term rentals exposes a number of operating
tactics of the industry and how local jurisdictions have been thwarted in their efforts to deal with
STRs. In Arizona, current law encourages the growth of the STR industry which has proven
harmful to neighborhoods, the traditional hotel industry, and the available housing stock for
long-term renters. The primary findings and conclusions of this paper follow.
1. Airbnb and other STR platforms have consistently misrepresented the context of their
business model within the "sharing economy" label. Instead, it has transformed over the
years into a model that more and more relies on multi-unit hosts who operate miniature
hotel chains, often within residential neighborhoods. In Arizona, this activity takes place
without the traditional local oversight and controls that used to exist and do in fact
broadly continue to be applied to STRs in many other localities around the country and
the world. The STR platforms also significantly overstate their economic impact on local
economies by failing to recognize that the vast majority of visitors would continue to
travel to their destinations even if Airbnb did not exist.
2. Arizona's prohibition on the regulation of short-term rentals through SB13SO has clearly
created a wide range of problems for local jurisdictions, particularly for those
communities that have tourism economies. There are differences between the impact of
STRs on cities such as Phoenix and Scottsdale just as there are differences between
Scottsdale and its neighbor Paradise Valley. The rural communities of Arizona,
exemplified by Sedona, also present a completely different set of circumstances
compared to the urban areas of the state. There is not one set of regulatory standards
that applies to all cities for land use and neighborhood issues. Each community needs to
develop its own set of requirements relative to its own situation. Tourism-oriented
2
The Negative Consequences of Short-Term Rentals—Arizona's Recipe for Disaster
communities have been impacted the most by STRs and likely need the most tools to deal
with their negative effects. Laws such as SB1350 are not the recommended path forward
in Arizona for neighborhood stability and economic sustainability and growth.
3. Zoning is the bedrock foundation of local government land use protections. It helps to
establish and maintain the character of a community in accordance with local desires and
protects property values by separating uses that may be incompatible. Zoning is and
always has been under local authority, subject to certain standards delegated by the
state. The inability of local jurisdictions to regulate short-term rentals due to statewide
bans such as SB1350 usurps citizens' and local communities' rights to determine and
preserve the character of the community in which they live and to protect their property
rights. At the very least, the STR issue should be subject to debate and input among all
levels of government, as it is in other parts of the country.
4. Communities across the country have experienced the conversion of traditional rental
units and owner-occupied homes to short-term rentals. The result is a decline in the
available housing supply often impacting residents who depend on affordable housing for
shelter. Conversely, the reduction in the supply of long-term rental housing also causes
prices to rise as units are bid up in price by STR investors. Demand for housing is inelastic
- households have little ability to forgo housing when it becomes more expensive. And
even small changes in the supply can cause housing prices to rise. While large cities and
metro areas may be able to absorb some of the loss of units to STRs, the result in smaller
towns is quite different, affecting the fabric and character of neighborhoods and whole
communities and regions.
5. A common theme found across most communities, which generates most of the
complaints to local governments, is the negative impact of non-owner-occupied or
investor STRs operating in residential neighborhoods as quasi-commercial uses.
Complaints about STRs are commonplace from neighbors who live near these units
concerning noise, crime, parking, and neighborhood peace. Most cities target their
regulations at these types of units— but this is something that cannot be done in Arizona
due to state-level laws preempting and preventing such traditional exercise of local laws
and enforcement authority. Indeed, in Arizona, local authorities must expend taxpayer
funds to react problems caused by STRs, typically with police forces or code enforcement
that can have no lasting helpful impact under current law, that are avoided altogether in
communities that are empowered to use traditional zoning and other legal tools.
6. The STR industry is growing and is poised to take advantage of a business model that,
without adequate oversight, will continue to leverage their lower operating costs
compared to traditional lodging and as key STR operating costs are, in effect, subsidized
by other taxpayers. In 2019, STRs accounted for more than 10% of the traditional U.S.
3
The Negative Consequences of Short-Term Rentals—Arizona's Recipe for Disaster
hotel room inventory. Absent the COVID-19 pandemic, the STR inventory was expected
to reach a 12% penetration rate of the hotel market in 2020 with the addition of 100,000
new units. While the traditional hotel industry has always been highly competitive, STRs
in Arizona are operating at an unfair advantage due to the relative lack of oversight and
regulation at the state and local level.STRs do not need to pay staff and are not regulated
like hotels, which increases costs for traditional lodging operations substantially but is
found to add value to the communities in which they operate. Indeed, many of the costs
traditionally associated with building and running a hotel — on-site staff, security
personnel, cleaning personnel, ADA facilities, fire safety systems, adequate parking,
buffering from residential areas, commercial property taxes—are either avoided entirely
by non-owner occupied STRs, or are externalized onto society at large by expecting
neighbors of an STR to call local police forces when experiencing criminal activity, noise,
or partying from an STR. Over the long-term, this will result in a loss of jobs in the hotel
industry that are not directly replaced by the STR industry. Many STRs do not charge
tourist bed taxes which further deepens the unequal competition. The unregulated and
unrestricted growth of STR units is placing pressure on the hotel industry which ultimately
will negatively impact (1) a reliable and consistent revenue source for state and local
governments and (2) employment in the tourism/lodging industry.
7. STRs are here to stay in one form or another. There needs to be constructive discussion
between STR platforms and adversely impacted communities on how they can continue
to operate while minimizing impacts on local communities. There is a balancing act
between the rights of certain property owners to use residentially-zoned properties in
any manner they desire and the greater community good. The perceived property rights
of a few STR owners should not infringe on the property rights of the majority.
8. STR platforms like Airbnb need to be more cooperative in assuring that there is tax
compliance for their host operators and more transparency in sharing information with
tax authorities. STR platforms should not list STRs on their websites unless they are
registered with the local jurisdiction as legal short-term rentals. Most cities have been
inundated with illegal STRs. The technology to provide host information to cities and
assure that all STRs are legal in the eyes of the city or other governing authority is clearly
available. STR platforms also need to self-monitor their hosts' activities and those of their
guests.
In summary, there are significant negative economic impacts imposed on state and local
jurisdictions by the STR industry.
• Housing disruption is one of the most significant negative impacts of the STR industry,
affecting both the supply and price of housing units. At a time when housing affordability
4
The Negative Consequences of Short-Term Rentals—Arizona's Recipe for Disaster
has become a problem across the country, the loss of long-term rental units to transient,
short-term use will only exacerbate the issue.
• STR hosts are operating at an unfair advantage compared to the hotel industry by not
abiding by building, safety, and taxing requirements imposed on traditional hotels,
motels, and other lodging facilities, and externalizing those costs onto taxpayers
generally,who in effect are forced to subsidize this niche business.
• State and local jurisdictions may see hotel tax revenues they depend upon decline or be
less reliable due to ineffective STR tax collection efforts.
• Established tourism-related employment will decline as the number of multi-unit hosts
listed on STR platforms increases. While there may be some offset of increased
employment by STR operators,a net loss of employment will result causing distress across
all hotel management levels with adverse impacts to job retention and growth.
• At the city level, property values will likely be affected as STRs invade traditional
residential neighborhoods.
The true costs of the STR industry are externalized on many segments of society,from residential
neighborhoods that must deal with disruptions, crime, and noise, to the hotel industry that is
facing unfair competition, to reduction of jobs, and to the housing market that is facing rising
costs and reduced supply.
5
The Negative Consequences of Short-Term Rentals—Arizona's Recipe for Disaster
Short Term Rentals and The Sharing Economy
Short term rentals, units rented by homeowners to persons typically from a few days to a few
weeks,are part of the "sharing economy". In its simplest terms,the sharing economy is a system
in which assets or services are shared between private individuals, either free or for a fee,
typically by means of the internet. When not needed, a person can rent out his car, her
apartment, or his bike to another person, all done digitally. The sharing economy depends upon
technology-based companies that use the internet to bring people together to sell or rent
services. These companies are often described as "disruptors"who use technology platforms to
revive stagnant sectors of the economy and increase the quality of goods and services to the
general public. They typically also provide persons with the opportunity to earn income.
Two of the best-known sharing economy platforms are Uber and Airbnb. Uber connects drivers
with people needing to get somewhere. While conflicts have been noted throughout the world
with unlicensed persons performing a service historically filled by licensed cab drivers,the model
is based on the sharing economy. A person has a car and agrees to essentially rent it out and
drive someone to a destination. That model has not changed over the years although skirmishes
with state and city regulatory authorities continue to affect the company's business.
Airbnb is the most widely used platform in the short-term rental industry. It is based on the
premise that a person can rent a home they live in or a room in their home or a separate unit on
their property (guest house, granny flat, auxiliary dwelling unit) to another person for income.
This is the perception Airbnb tries to portray in its marketing efforts, but the STR industry has
transformed into a variety different business models,many of which involve exploiting regulatory
loopholes all under the guise of innovation.
In the top 30 STR metro area markets in the U.S., about two-thirds of the units are in the entire-
home or apartment category, meaning that the renter occupies the unit without the owner or
host being present. The units where the owner is not present on the property have largely
generated the most complaints from nearby residents, particularly in the case of single-family
homes in residential neighborhoods. Apartments and condos, by comparison, typically have
some type of monitoring of renter conduct and the properties are often located in commercial-
type areas.
In 2019,there were more than 1.5 million STR units listed on various platforms in the U.S., about
seven times the amount listed in 2014.1 Not all the units were active or available for booking
year-round. In the top 30 STR markets in the U.S. more than one-third of STR rentals are a house
where an owner is not present.
6
The Negative Consequences of Short-Term Rentals—Arizona's Recipe for Disaster
2019 Short-Term Rental Supply By Type in Top 30 Markets
Property Type House . . Other Total
Entire Home/Apartment 34.4% 32.2% 1.3% 67.91;'o
Private Room 19.1% 8.9% 0.2% 28.3%
Shared Room 1.0% 0.6% 0.0% 1.6%
Hotel/Hostel - 1.6% 1.6%
Bed&Breakfast - 0.5% 0.5%
Total 54.5% 41.8% 3.7% 100.0%
source:AirDNA,CORE Hotels Research 2019
As a whole, the STR industry represents a failure to engage with regulators and abide by local
ordinances and regulations. It is a business model that largely ignores the impact of its hosts and
guests on various aspects of the local housing market and neighborhood stability. The
exploitation of regulatory loopholes includes avoiding or ignoring zoning regulations, building
and safety regulations normally imposed on the hospitality industry, and sales and bed taxes
normally collected from hotels, motels, and licensed bed and breakfast operators. In the case of
Arizona,the avoidance of established local zoning and other regulations took the form of SB1350,
which explicitly overrode those standards. In addition, the lack of oversight of host operators by
STR platforms and the competitive advantages over traditional lodging enjoyed because of this
pattern of behavior has led to the proliferation of STRs owned by a small number of hosts that
operate multiple housing units as miniature hotel companies. At the heart of the discourse
between the STR platforms and government regulators is whether the STR platforms operate as
pure technology companies, providing a match-making service to willing participants, or whether
they are operating in effect as a hospitality company.
The purpose of this report is to outline the negative consequences of the STR industry on local
communities, which in many situations have transitioned into "intended" consequences as
platforms such as Airbnb continue to defend their business model and disregard local regulatory
and taxation policies. The expansion of Airbnb in Arizona has been fueled by a state law that is
intended to block local oversight and enforcement. Significant questions have arisen about STRs'
negative effects on local housing cost, affordability, and availability; the quality of life in
residential neighborhoods; and local governments' ability to enforce municipal codes and collect
appropriate taxes. An overview of the negative consequences STRs in Arizona and across the
country are outlined hereafter in this report.
7
The Negative Consequences of Short-Term Rentals—Arizona's Recipe for Disaster
Arizona's Experience With Short Term Rentals
Arizona has among the most STR industry-friendly laws of which we are aware. SB 1350 enacted
by the Arizona legislature in 2016 purposely and significantly restricts the ability of local
governments to regulate STRs and, in fact, eliminated existing local laws that had traditionally
applied to such activities. The law states that a city or town may not prohibit, restrict the use of,
or regulate STRs based solely on their classification, use, or occupancy. In other words, an STR
must be treated exactly the same way as an owner or long-term-tenant occupied home.Z The
law was originally promoted to the legislature as a way for Arizonan's to be able to rent an extra
room in their homes more easily while they are present, but like other markets with STRs, this
has not been the common experience. 3
Representative John Kavanagh of Fountain Hills has sponsored legislation in 2021 to address the
shortcomings of the current law and suggests a number of reforms to correct the negative
consequences of STRs and externalities imposed on local communities. These reforms would
reduce the concentration of STRs in neighborhoods, prohibit outdoor activities at night, limit
ownership to persons in their primary or secondary residences, and establish occupancy limits.
Legislative proposals to further amend current STR laws are expected in the 55th legislative
session.
What SB 1350 fails to address is the proven value of traditional local oversight and enforcement
along with the differences in local communities across Arizona. The state has a robust tourism
industry. Some of those tourist destinations are in the rural areas of the state where housing
opportunities are limited. Businesses who rely on employing persons in those rural communities
need to have an available housing stock for their workers. In the urban parts of Arizona, housing
opportunities are much more available, but affordability is often an issue. Many communities
also wish to protect their residents from intrusion of commercial type uses into residential
neighborhoods. This is particularly true in communities such as the Town of Paradise Valley
which was founded in 1961 to create and preserve a low-density, residentially zoned community.
The bottom line is that one blanket restriction on prohibiting the regulation of STRs at the local
level does not work. Each community has different characteristics and may react differently to
the introduction of STRs into their jurisdiction.
Indeed, in response to the concerns with the STR industry outlined above and the impact of
SB1350 on local control of short-term rentals, 33 mayors of cities and towns across Arizona,
including the largest cities in the state, signed a letter to the CEOs of Airbnb and Expedia Group
requesting that the companies end their efforts to block local regulation of STRs in the state. The
letter outlines how the ground swell of complaints from citizens for regulation of STRs in Arizona
8
The Negative Consequences of Short-Term Rentals—Arizona's Recipe for Disaster
will eventually disrupt the industry's business model. The authors of the letter recognize that
STRs can operate compatibly in Arizona, but that local control is the best approach to a
sustainable STR industry. A copy of the letter is included in the Appendix to this report.
STR data was collected from AirDNA, a provider of short-term vacation rental data and analytics
that tracks the daily performance of over STR listings on Airbnb, Vrbo, and other platforms. The
data below shows the number of active STR units in Phoenix, Scottsdale, Paradise Valley, and
Maricopa County relative to their housing inventory as of January 2020. Overall, the percentage
of active STRs in Maricopa County compared to its housing stock stands at 0.7%. Phoenix has a
low percentage of STRs relative to its housing supply while Scottsdale's STR inventory stands at
2.8% of total units. On a per unit basis, Scottsdale's housing stock is only 22% the size of the
Phoenix housing stock yet it has 720 more active STR units than Phoenix. As one of the Valley's
premier tourist destination, Scottsdale has experienced a more dramatic influx of STRs than
Phoenix. Paradise Valley by comparison, which has a population of only 14,300 persons, has an
even higher estimated level of STRs relative to its housing inventory at approximately 3.8%.
Short-Term Rentals in Selected Communities
MaricopaParadise
Phoenix Scottsdale ValleV County
Population 1,680,988 258,064 14,362 4,485,414
Housing Units 637,511 145,936 6,091 1,789,265
Active STRs 3,372 4,092 234 12,219
%Active STRs of Total Units 0.5% 2.8% 3.8% 0.7%
Sources AirDNA,American Community Survey 2019 5-Year Estimates
The above estimates point to the fact that some communities will react differently to the STR
issue. Scottsdale's former Mayor Jim Lane, for instance, testified in front of the Joint Ad Hoc
Committee on the Impact of Short-Term Rentals on Arizona Communities in December 2019
pointing to the concern of commercial enterprises renting out single-family homes for tourists.
He indicated that short-term rentals, if they continue to grow in number, could potentially
change the entire complexion of neighborhoods. In addition, STRs are also in direct competition
with the city's resorts and hotels and there needs to be some equalization of regulation. The city
has also dealt with crime and shootings at STRs over the last few years.'
The Town of Paradise Valley has expressed great concern about negative impacts related to STRs
and the introduction of commercial uses into the community. Paradise Valley is a low-density
residential community that enjoys the highest property values in the State, low crime, and is
home to many of the State's executives, entrepreneurs, and notable citizens. Since its founding
9
The Negative Consequences of Short-Term Rentals—Arizona's Recipe for Disaster
by former Supreme Court Justice Sandra Day O'Connor and other prominent citizens in 1961,
Paradise Valley has relied on stringent local zoning laws and restricted commercial lodging uses
in the town to a handful of high-quality hotels and resorts which are highly regulated through
zoning and other laws, buffered from residential areas,well-staffed,and required to monitor and
protect against loud or unruly behavior. Arizona's current state law does away with this long-
standing traditional balance. Now,the Town commonly sees the use of entire homes as locations
housing dozens of STR visitors on a nightly basis, which has introduced unwanted commercial
activities, crime, and other serious and uncontrolled nuisances directly into residential
neighborhoods.
A frontpage article in The Wall Street Journal from December 10, 2020 further highlighted some
of the difficulties faced by Arizona's communities and other cities across the U.S. in dealing with
STRs. The article outlines how with the passage of SB 1350 investors poured into affluent
communities like Paradise Valley and Scottsdale, snapping up homes to rent on the STR
platforms. Nearby residents have complained about declining home values, loud parties into late
hours of the night, and neighborhood disturbances such as shootings. In response, grassroots
efforts are underway across the country to overturn laws such as SB 1350. In fact, Airbnb has
warned investors in its stock filings (Airbnb went public in late 2020) that "managing its success
in the face of angry neighbors and unfavorable local laws is among its biggest challenges in the
U.S. and around the world".
Of additional concern is the impact of STRs on Arizona's small, rural tourism-oriented
communities.
Sedona
Sedona is a world-renown tourist destination that has experienced significant negative
impacts from the STR industry. These impacts include the disruption of neighborhoods,
zoning and building safety violations, nuisance violations, and the loss of housing for its
residents and persons working in the city. In January 2021, there were 2,378 active STRs
listed on the AirDNA website for Sedona and Village of Oak Creek, including some units that
are outside of Sedona city boundaries. However, a number of hotels and time share
properties list their units on the STR platforms. Applying a 20% reduction for these types
of properties results in an estimate of 1,902 active STRs or approximately 16.9% of the
11,200 housing units in the two communities. The map below shows the concentration of
those STR units according to AirDNA.
10
The Negative Consequences of Short-Term Rentals—Arizona's Recipe for Disaster
Active STRs in Sedona Area
Less •
SedonaVillage of for Hotels,
Oak Creek Total Timeshares
Housing Units 7,096 4,147 11,243 11,243
STRs 2,378 1,902
Percent STRs 21.2% 16.9%
Sources:AirDNA,American Community Survey 20195-Year Estimates
•
•
•
•
• � j
• 7
r
The City of Sedona is among communities highly active in voicing concerns with STRs due
to their proliferation over the last few years. In 2019, the city collected available data on
STRs and cleaned from the data hotels, timeshare units, and other traditional guest units
that advertise on the STR platforms. The result is a total of 744 unique listings within city
boundaries or 10% of the housing units in the city. The STR units were categorized by type
with a majority being single family homes (61%) followed by homes with a private room.
The database also includes RVs and tents that have popped up around the city. The
11
The Negative Consequences of Short-Term Rentals—Arizona's Recipe for Disaster
dispersion of the units is shown on the exhibit below indicating substantial clustering of
units in single family areas.
elf_ f
j A
n e
• y
°
•� 1
• 4J s e e a •„ �
� e •' n N
City of Sedona IZ.1,31
°t""
Short Term Rental Properties `>n^♦13e1
744 Unique Listings urstRe.rss,
w Pr!•12) � ;
• •"•e .....` '. 3mylr F—ty MOmr 1453)
• Pn .Reom Ito 11
�~
• 4nt 131 _ _
• To�nome I•I � - � -
Of significant concern is the ownership pattern of the STR units. Only 34% of the units are
associated with a property that is occupied by the owner, shown in the chart below as
"sharing economy" owners. The remaining two-thirds of STR units are owned by out-of-
state persons or persons who do not live on the STR property.
12
The Negative Consequences of Short-Term Rentals—Arizona's Recipe for Disaster
• 'Sharing Economy'Owners
- Off-Site Arizona Owners
Out of State Owners
Sedona has historically had high housing prices which created affordability issues for its
workforce. Between 2015 and 2019, the average home price, including single family
homes, condos, and mobile homes, increased by 45% to $636,000. While the lack of
affordable housing and rising prices cannot be fully attributed to the proliferation of STR
units, it certainly has contributed to the problem. There is a significant amount of anecdotal
information on the conversion of long-term rentals to short-term. Stories abound of
residents being forced to move at the end of their leases as properties are converted to use
for short-term visitors.
The decline in the supply of long-term rental units has torn at the fabric of the community.
In 2019, the school district closed one of three elementary schools. The high school
graduating class is down to about 50 students, about one-half of what it was five or six years
ago. The district has now added 71' and 81"grades to the high school so the building can be
fully utilized. Little league baseball and football programs are no longer organized because
young families are leaving the city.
Data from the U.S. Census appears to verify the trends that are visible to city residents. The
Census indicates that between 2010 and 2019 the number of owner-occupied households
in Sedona increased, but the count of renter households declined by 22%. In addition, the
loss of renter households is in the prime child-rearing age groups of 24 to 59 years old. Even
owner-occupied households in the 45 to 64 year-old age groups declined in number as well.
The loss of these households correlates with the decline in families with children and in
school enrollment in the Sedona area. The decline in population has significant financial
impacts for local governments including a potential decrease in state shared revenues
which typically comprise a significant portion of community revenue.
13
The Negative Consequences of Short-Term Rentals—Arizona's Recipe for Disaster
Tenure By Age of Householder
2010 - 2019
Age of Householder Tenureand Sedona
Total Households 5,307 5,542 235
Owner Occupied: 3,660 4,262 602
15 to 24 years - 8 8
25 to 34 years 53 17 (36)
35 to 44 years 217 247 �3
45 to 54 years 608 494 1(114)
55 to 59 years 687 569 (118)
1
60 to 64 years 526 455 (71Lf
65 to 74 years 866 1,500 634
75 to 84 years 514 578 64
85 years+ 189 394 205
Renter Occupied: 1,647 1,280 (367)
15 to 24 years 34 51 _Q7
25 to 34 years 340 97 1(243
35 to 44 years 366 351 / (15) 1
45 to 54 years 322 157 ; (165)
55 to 59 years 190 170 `(20
60 to 64 years 79 163 '$4
65 to 74 years 265 269 4
75 to 84 years it 22 11
85 years+ 40 - (40)
Sources:ACS 2010 and 2019 5-Year Estimates
Beyond the change in the character and mix of Sedona's population due to the proliferation
of units and the number/density of STRs in certain neighborhoods, Sedona has heard many
complaints from permanent residents about what is perceived as commercial business
activity in residential neighborhoods which leads to the loss in the character of the
neighborhoods. People don't know their neighbors anymore which ultimately damages the
fabric of the city. RVs have been placed on vacant lots and advertised on STR websites.
Some of the new home construction activity has involved large buildings with eight to ten
bedrooms, bunk rooms, and large outdoor entertaining areas often without the
appropriate number of parking spaces.These miniature hotels are not meeting building and
safety standards normally imposed on hotels. The City's small staff has been strained in its
enforcement efforts of building activity and complaints.
Sedona is just one tourist-oriented, rural community that has had to deal with the
consequences of the STR industry and the inability to regulate the rentals. The number of
14
The Negative Consequences of Short-Term Rentals—Arizona's Recipe for Disaster
STRs in Sedona relative to the total housing inventory, estimated between 10%and 17%, is
excessive and well beyond what is found in the urban parts of Arizona. Unless there is some
way for communities similar to Sedona to deal with STRs, absentee owners and investors
will continue to build and/or convert units from long-term to short-term rentals.
Page,Arizona
Page is situated in an isolated area of northeastern Arizona, surrounded by the Navajo
Nation reservation. The city was established in 1957 as the camp site for workers and their
families during construction of the Glen Canyon Dam. Since that time, the community has
transitioned to a tourist economy as the gateway to Lake Powell and other natural sites
such as Antelope Canyon and Horseshoe Bend on the Colorado River. Page attracts an
estimated 3 million visitors a year.
According to AirDNA in January 2021, there were an estimated 358 active STRs in the city
representing 12.6% of the community's 2,840 housing units. Due to its isolated area,
housing is at a premium for its workforce. The existing housing market is facing increased
demand for both temporary and permanent lodging for service industry employees. The
hotel industry has grown significantly with an increase of 860 rooms since 2012. At the
same time, the vacation rental market has also grown limiting housing opportunities for
workers. The city notes that even with the growth of the hospitality industry, few of the
new service sector workers have resulted in an increase in the permanent population of
Page. The city is now attempting to attract housing developers to the city to expand its
permanent housing supply.
15
The Negative Consequences of Short-Term Rentals—Arizona's Recipe for Disaster
Impacts of the Short-Term Rental Industry
1. Adverse Impacts to Residential Neighborhoods by Circumvention of Zoning Laws
Zoning is the bedrock foundation of local government land use control. It helps to establish the
character of a community in accordance with local desires and protects property values by
separating uses that may be incompatible. It also provides certainty for those that are living in
the community that they are protected from the intrusion of unsuitable uses. Zoning is, and
always has been under local control, subject to certain standards and conditions delegated by
the state.
The potential for negative impacts of STRs on a community's neighborhoods is a primary
consideration that led to zoning regulations that banned STRs in residential areas. The inability
of local jurisdictions to regulate short-term rentals due to statewide bans on regulation usurps
that local authority's right to respond to citizen voices that determine the character of its
community and to protect the property rights of its residents. At the very least, the STR issue
should be subject to debate and input among all levels of government.
One of the primary negative consequences of STRs continually faced by local communities and
residents is the circumvention of zoning laws—the use of a home or housing unit as a commercial
transient lodging business in a residential neighborhood and the consequences that flow from it.
In Arizona, this problem is at the most extreme because current state law does not allow local
governments to treat STRs as commercial activities for zoning purposes,or to engage in proactive
measures to mitigate the impacts of STRs on neighborhoods. This is particularly an issue resulting
from absentee owners who rent their properties out to short-term visitors who may not respect
the surrounding neighborhood from the standpoint of noise, parking congestion, and other
externalities. There are even examples of Airbnb hosts who rent units on long term leases,then
sublease their units to short-term travelers. Through this arrangement, the ultimate property
owner is shielded from the externalities that are imposed on neighbors. Complaints are often
made to local authorities who have little or no ability to deal with the issue.
Homeownership is one of the foundations of the American way of life that separates us from
other countries. It provides stability to our communities and creates wealth. Anything that
threatens the ability of citizens to reap the expected benefits of their primary residence — a
cornerstone of the "American Dream" — should be carefully considered and appropriately
balanced.
While we cannot find any empirical studies on the impact of STRs on neighborhood desirability
and property values in Arizona, in theory, a prospective buyer of a home located adjacent to or
16
The Negative Consequences of Short-Term Rentals—Arizona's Recipe for Disaster
near an unregulated STR unit would likely offer a reduced price for the home or cancel the
purchase outright. The end result is declining property values for owner-occupied homes, while
STR investment homes enjoy distorted valuations as commercial investment assets. The inability
to regulate STRs at the local level is bad economic policy that, among other problems,eventually
could cause a decline in homeownership rates, neighborhood stability, population, and school
enrollment. States with STR-leaning laws, such as Arizona, may likely find themselves at a
competitive disadvantage to retain and attract people who desire to live in stable and safe
neighborhoods. This is particularly a problem in Arizona's tourism-dependent communities.
2. Rising Housing Costs and Loss of Long-Term Rental Units
Communities across the country have experienced the conversion of traditional rental units and
owner-occupied homes to short-term rentals. The result is a decline in the available housing
supply often impacting residents who depend on affordable housing for shelter. While large
cities and metro areas may be able to absorb some of the loss of units to STRs, the result in
smaller towns is quite different, affecting the fabric and character of neighborhoods and whole
communities. School districts in some of these communities are faced with declining enrollments
as families are forced from their rental homes and must search for housing farther from their
place of work.
The most significant and best-documented cost of the short-term rental industry is the reduced
supply of housing as properties are converted from long-term occupancy to short-term
occupancy for travelers. The outcome is that housing prices rise as units are bid up in price by
STR investors. Over the past few years, housing affordability has become a significant issue
across the U.S., causing economic stress for moderate and lower-income households. Since
demand for housing is inelastic, households have little ability to forgo housing when it becomes
more expensive. And even small changes in the supply can cause housing prices to rise.
A number of empirical studies have evaluated the impact of Airbnb on the long-term housing
supply and prices in major cities.' These studies include:
• A study of Airbnb's growth in Boston estimated that asking rents for long-term rentals
between 2015 and 2019 would increase as much as $178 per month if short-term rental
growth continued. In addition, the authors forecasted that an increase of 12 Airbnb
listings within a single census tract correlated with a 5.9% decrease in the number of
rental units offered for rent.
• A study conducted in New York City suggested that a doubling of Airbnb activity in a small
geographic area was associated with a 6 to 11 percent increase in home sales prices.
17
The Negative Consequences of Short-Term Rentals—Arizona's Recipe for Disaster
• A further study of the large increase in Airbnb rentals in New York City found that it
contributed to a 1.4% increase in rents from 2015 through 2017, implying a $384 annual
increase in rents.
Particularly for New York City, the availability of affordable housing is at crisis levels. The influx
of Airbnb rentals is aggravating housing conditions even more. The City is also concerned about
the safety risks of transforming homes and apartments into illegal hotels.
Cities that have strong tourism economies have seen a dramatic increase in the growth of STRs.
New Orleans, with its year-round festivals and events, is another city that has experienced an
affordable housing shortage as investors bought up homes for short-term rentals. In some areas
of the city, entire blocks have been converted into units for tourist. In 2018 there were 4,319
whole-unit Airbnb listings in the city, more than double the 1,764 units in 2015. Neighborhoods
with the highest concentration of units saw increasing rents, rising property tax bills, and the
removal of longtime residents from their residences. The result is a reduction in the number of
available rental units. b
Over the past five years during the recovery from the Great Recession, housing affordability has
evolved into a significant issue for households earning at or below the median income. For
instance, the NAHB/Wells Fargo Housing Opportunity Index (HOI) is defined as the share of
homes sold in the U.S. that would have been affordable to a family earning the median income,
based on standard mortgage underwriting criteria. For the third quarter of 2020, 58.3% of new
and existing homes sold between the beginning of July and end of September were affordable to
families earning an adjusted U.S. median income of$72,900. This is down from the 59.6 percent
of homes sold in the second quarter of 2020 that were affordable to median-income earners and
the lowest reading since the fourth quarter of 2018. Since 2012,the HO1 has been on a downward
trend although it rose slightly since 2019 due to historically low interest rates.
18
The Negative Consequences of Short-Term Rentals—Arizona's Recipe for Disaster
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For individual cities, the loss of housing units due to their conversion to short-term rentals has
exacerbated the problem.
3. The Net Economic Benefits of STRs are Questionable and Grossly Overstated in STR Studies
Research reports reveal that much of the economic activity generated by Airbnb would have
occurred in any case in the absence of Airbnb units, likely by the guests staying in traditional
hotels. By comparison, the STR platforms would like the public to believe that they are
independently generating travel that would not have otherwise occurred.
The STR platforms have produced a variety of studies that are intended to show the positive
economic impact of the STR industry. One of the most noted report is "Airbnb's Global Support
to Local Economies: Output and Employment" prepared by NERA Economic Consulting in 2017.
The report focused on the impact of Airbnb on the 200 cities across the globe that had the largest
number of STR stays. In summary, NERA estimates that Airbnb supported about 730,000 jobs in
the 200 cities and supported more than $60 billion in output. The U.S. accounted for
approximately $14 billion of the global output and 130,000 jobs. These estimates include not
only the amount a tourist might spend to rent the STR (which is considered income to the host),
but also spending on food, retail goods, local transportation, entertainment, and other normal
expenditures made during their visit.
19
The Negative Consequences of Short-Term Rentals—Arizona's Recipe for Disaster
In summary, the methodology used by NERA is flawed and fails to consider that virtually all the
money spent by Airbnb visitors is money that likely would have been spent elsewhere if Airbnb
had not existed. The possibility that Airbnb visitors would still have visited a city even if Airbnb
units were unavailable is completely excluded from the NERA analysis. Empirical research, by
comparison,finds that Airbnb and traditional hotels are seen as potential substitutes by travelers.
A study of Airbnb's entry into Texas found that it had a negative impact on hotel room revenue
in 2017.'
A further survey of Airbnb users showed that only 2%of Airbnb users would not have taken the
trip except for the ability to rent an Airbnb unit. The remaining 98% felt they would have made
the trip but stayed in other lodging accommodations. A survey by Morgan Stanley suggests that
between 2% and 4% of Airbnb guests would not have taken their trip but for the presence of
Airbnb. And roughly 75%of Airbnb guests indicated Airbnb was a substitute for a hotel.
The above research suggest that the NERA study overstates the economic impact of Airbnb by
somewhere between 96%and 98%.
A similar economic impact study of the San Diego STR market prepared by the National University
System Institute for Policy Research (NUSIPR) used a similar methodology as NERA. NUSIPR
estimated the number of short-term rentals in 2015 at more than 6,000 with an economic impact
of 1,842 jobs and $285 million in economic output. However, the study assumed that all STR
rental income and additional visitor spending was directly attributable to the STR industry
without consideration that the tourist spending would likely have occurred in any case if STR
units were not available. 8
In summary, economic studies prepared for Airbnb and the STR industry overstate the impact of
the short-term rental market on the local economy without consideration that a variety of
optional accommodations are available. They also overlook the fact that many STRs are illegal in
the eyes of regulatory authorities and may not be paying bed and other taxes required of the
hotel industry.
4. Local Government Taxation Problems
One of the most important considerations in the regulation of STRs is the fiscal impact on state
and city revenues. Bed or lodging taxes are significant sources of revenue for many communities.
This is true, for example, for the Town of Paradise Valley which does not have a local property
tax, and typically generates around 40% of its revenue from tax collections from its hotels and
resorts. In Sedona, approximately 34% of the city's general fund operating revenue comes from
hotel sales taxes and bed taxes. The reduction in hotel tax revenues due to the influx of STR
20
The Negative Consequences of Short-Term Rentals—Arizona's Recipe for Disaster
units, many of which may not be properly licensed or paying sales and bed taxes,could have long
term financial impacts for these tourism-oriented communities.
Airbnb has consistently attempted to avoid the payment of lodging taxes by arguing that it is a
platform that does not operate a lodging business. In its efforts to demonstrate that it wants to
help local governments to collect taxes, it has entered into what are referred to as VCAs —
Voluntary Collection Agreements —with state and local jurisdictions. A report entitled "Airbnb
Agreements with State and Local Tax Agencies" prepared by Dan R. Bucks for the American Hotel
and Lodging Association' outlines a number of problems with these agreements that include
unjustified favoritism for Airbnb and its hosts. The agreements also typically violate standards
for transparency in tax collection. The conclusions of the report are summarized as follows.
• The Airbnb VCA agreements do not guarantee accountability for the proper payment of
lodging taxes because tax agencies cede substantial control of the payment and audit
processes to Airbnb. The agreements provide a shield of secrecy for lodging operators
that prevents their discovery by public agencies and creates a de facto tax and regulatory
haven for those operators. Essentially, tax agencies are not able to audit the lodging
operators or hosts because Airbnb will not identify the names and addresses of the hosts.
That secrecy is most valuable for the commercial-style lodging operators who now fuel
Airbnb's growth, but that are also most likely to violate zoning and housing laws. Thus,
the agreements facilitate unimpeded and often illegal conversions of residential property
into commercial-style lodging facilities.Tax agencies signing these agreements enable this
process.
• SB 1350 enacted by the Arizona legislature in 2016 is specifically cited in the report as an
example of laws that limit the effectiveness of tax compliance. The law (1) severely
narrows the grounds on which local governments can regulate short-term rentals, (2)
allows online marketplaces to collect and pay taxes for the lodging operators, but only in
returns that do not identify the lodging operators, and (3)exempts the returns submitted
from a major portion of information exchange laws. The latter includes prohibiting
information sharing with local governments, other Arizona state agencies, other state
governments and the Internal Revenue Service. For the limited disclosure that is allowed,
the online marketplace must give written consent to the disclosure.
The report concludes that tax agencies should seek legislation updating lodging laws to require
registration, reporting, and collection and payment by online booking companies and lodging
operators with a single payment process. At the very least, legislation should be enacted to
21
The Negative Consequences of Short-Term Rentals—Arizona's Recipe for Disaster
require online booking companies to provide the names and addresses of lodging operators to
tax agencies.
5. Adverse Impacts of STRs on Jobs and the Hotel Market
In 2019,STRs accounted for more than 10%of the traditional U.S.hotel room inventory according
to a report by CBRE Research released in 2020.10 Absent the COVID-19 pandemic, the STR
inventory was expected to reach a 12.2% penetration rate of the hotel market in 2020 with the
addition of 100,000 new units. While the traditional hotel industry has always been highly
competitive, STRs are often operating at an unfair advantage due to the lack of oversight and
regulation at the state and local level including building and safety standards,tax collection, and
local zoning issues. In addition, STRs do not need to pay staff and are not regulated like hotels
which comparatively increases hotel costs substantially. Over the long-term, this will result in a
loss of jobs in the tourism/hotel industry that are not directly replaced by the STR industry. Many
STRs do not charge tourist bed taxes which further deepens the unequal competition. Without
regulation, the STRs industry will continue to have preferential, unfair treatment relative to the
hotel sector over the long term.
The impact of the shift of occupancy from hotels to STRs means a less reliable source of revenue
for state and local governments. This impact evolves from the inability of state and local
governments to depend upon verifiable revenue from STRs platforms. Through its agreements
with state and local governments, Airbnb has been awarded preferential treatment on the
collection of lodging taxes, a significant benefit that is not bestowed upon traditional hotels.
The hotel markets in the U.S. that are most penetrated by STR units are in traditional leisure and
destination areas that include Los Angeles, Miami, Austin, New York, and Orlando. All these
metro areas have an STR inventory relative to the hotel room supply that ranges from 16% to
22%. In Phoenix, the STR market represents 10.4% of the total hotel room supply. However,
between 2018 and 2019, Phoenix had the second highest growth rate in STR units at 44.4%. Only
Atlanta, which benefitted from the 2019 Super Bowl, had a faster growth rate.
The CBRE report suggests that the traditional hotel industry has not experienced growth in
average daily rates (ADR) since 2016 (adjusted for inflation), despite record occupancy levels.
The growth of STR units and increase in the supply of hotel rooms has restricted increases in ADR.
The unregulated and unrestricted growth of STR units is placing pressure on the hotel industry
which ultimately could affect a more reliable and consistent revenue source for state and local
governments as well as a negative impact on employment in the industry.
22
The Negative Consequences of Short-Term Rentals—Arizona's Recipe for Disaster
2019 STR Rental Unit Penetration to Hotel Supply
Mi.mc 19.2%
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The rapid growth of STRs in unregulated and illegal locations in the end will affect the hotel
industry and the collection of taxes by local jurisdictions that would normally be paid for by hotel
operators. The unfair competitive advantages of STRs relative to the hotel industry include:
• Lower operating costs since STRs do not pay commercial property tax rates in Arizona if
located in residentially zoned areas,
• Limited or no regulation of safety or building requirements, and
• Limited or no staff to hire, train, and pay.
Some of the costs of STRs are also externalized to local governments to enforce and monitor
unruly behavior of guests and other complaints from neighbors, a role traditionally supplied by
hotels and their trained staff members.
23
The Negative Consequences of Short-Term Rentals—Arizona's Recipe for Disaster
6. The Growth of Multi-Unit Hosts
The reason that tax collection and reporting from STR platforms is so important is the growth of
multi-unit owners. These absentee owners are often the primary target of complaints by
neighbors in residential areas because they are not present on the site of the STR unit to control
activity on the property. A report released by CBRE in 2017 outlines how Airbnb is expanding
primarily by the growth of multi-unit operators and how they are a key component of Airbnb's
revenue. The VCAs outlined in the previous section shield these owners from tax audits by state
and local governments. "
The CBRE study evaluated revenue trends for the U.S. and the top 13 Airbnb markets in the
country in 2016. Those hosts with two or more entire-home units (either a single-family home,
condo, or apartment) accounted for only 7.1% of the total hosts and 20.S% of total Airbnb units,
but generated 32.1% of Airbnb's $S.7 billion in revenue. Hosts with ten or more properties
generated one quarter of all multi-unit host revenue in the 13 metro areas studied.
Airbnb U.S. Performance October 2015 -September 2016
Host Annual Totals %of Entire-Home Rentals of Total
Type Units Hosts Units Revenue Host Units Revenue Host Units Revenue
Entire-Home 1 236,413 258,133 $2,787,69S,396 88.9% 66.1% 60 4% 56.8% 40.0% 49.0%
Entire-Home 2- 29,381 132,224 $1,828,166,706 11.1% 33.9% 39.6% 7.1% 20.5% 32.1%
Entire-Home Total 265,794 390,357 $4,615,862,102 100.0% 100.0% 100.0°k 63.9% 60.5% 81.1%
All Other 150,321 254,493 $1,074,193,112 36.1% 39.5% 18.91
Market Total- 1 416,115 644,850 $5,690,055,214 1 /o 100.0%1 1
Sources:Audna,CBRE Hoteli Americas Research,January 201)
`Includes all Airbnb rentals including entire homes,private rooms,shared rooms,unique properties,and units with a minimum stay requirement of 30 days or
more.
Of the 13 top markets for Airbnb, all realized an increase in the total number of units managed
by multi-unit hosts. Four markets had a year-over-year growth rated above 100%including some
of the primarily leisure and vacation markets in the country - Nashville, Oahu, and New Orleans.
24
The Negative Consequences of Short-Term Rentals—Arizona's Recipe for Disaster
Airbnb Multi-Unit Hosts Unit Growth by City 2015-2016
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A report entitled "From Air Mattresses to Unregulated Business: An Analysis of the Other Side of
Airbnb" estimated in 2016 that 40.8% of the Airbnb revenue generated in Greater Phoenix came
from multi-unit hosts who represented only 14.7%of the total host count. While the data is now
dated, it is suspected that multi-unit host operators have expanded significantly since 2016.
The CBRE study verifies the fact that Airbnb and other STR platforms have transitioned from a
pure home sharing model to a business venture for persons who own multiple units. In many
cases, these multi-owned units are managed by a single entity and often situated in residential
areas where there is little oversight and monitoring of on-site activities. Most of the complaints
received by local governments about STRs evolve from these units that are essentially
commercial operations. From a tax standpoint, they may be avoiding taxes normally paid by
traditional hotels. Under the cover of Airbnb's VCA, there is little way in which these operations
can be audited.
A further example of the expansion of multi-unit hosts/operators using STR platforms to generate
business is the master lease model. Several companies have used this model in which they lease
a block of apartment units from a landlord, typically on a long-term lease of five years or so,then
furnish and manage the units for short-term stays. The model depends once again on the
conversion of traditional long-term rental units into short-term modified hotel operations. This
affects not only the supply of apartment units available in the community but the hotel industry
2S
The Negative Consequences of Short-Term Rentals—Arizona's Recipe for Disaster
as well by expanding the supply of short-term guest units. Cities will need to evaluate how short-
term rentals in apartment buildings are regulated, the impact on the supply of rental units, the
payment of hotel taxes, and any zoning or building safety code violations.
26
The Negative Consequences of Short-Term Rentals—Arizona's Recipe for Disaster
Regulatory Efforts of Local Governments
Cities and towns across the country have attempted to regulate short-term rentals since the
inception of the STR platforms. These efforts are noted for their contrast to the current Arizona
model, which generally does not allow for local oversight or enforcement. Most efforts have
been met with lobbying of elected officials on the benefits of STRs-and then lawsuits if and when
lobbying efforts fail.
New Orleans
New Orleans has had a long running battle with Airbnb to preserve its owner-occupied and
renter housing stock from conversion to STRs. It forged an agreement with Airbnb in 2016
to legalize STRs, ban illegal listings, provide sharing of names and addresses of hosts, and
create an online system that registers hosts with the city. However, the surge in STR
conversions continued primarily by out-of-town owners. Approximately 11% of operators
owned 42% of the city's STRs. However, Airbnb did not provide an adequate registration
system and did not provide information on the hosts and owners. Eventually the
registration system was disabled, and Airbnb was accused of deliberately hiding data and
not cooperating with the city.12
Later in 2019, the New Orleans City Council decided to ban whole-home rentals in
residential neighborhoods due to the disruption caused by party houses and the reduction
in the available housing stock for long-term occupants. The City created two categories of
permitted STRs: (1)units in residential areas where an owner-occupant could,with a permit
rent out up to three units on the property and (2) in commercial areas (usually condos and
apartments) where up to 25% of the units on the property could be rented. The ordinance
also bans STRs in the French Quarter.13
In the end, Airbnb criticized the new rules but pledged to work on their implementation.
The new restrictions are supposed to be enforced by the STR platforms to remove listings
that violate city rules. The city is also raising taxes on STRs, part of which will be used for
enforcement efforts. At the end of 2019 when the ordinance went into effect, there were
an estimated 8,500 STRS in the city but only 2,500 registered with the city.
San Diego
San Diego has had a long history of short-term rentals primarily available within its beach
neighborhoods. Because of that history, the short-term rental market does contribute to
the local economy and provide income for property owners, many of whom are absentee
owners. However, the proliferation of units throughout the city, now totaling close to
27
The Negative Consequences of Short-Term Rentals—Arizona's Recipe for Disaster
13,000,has caused the city to consider a new set of regulations. Under a proposal approved
by the city planning commission in December 2020, the number of absentee-owners
renting units for less than 30 days would be capped at 6,500 including a carve-out for 1,100
units in the Mission Beach neighborhood. The cap represents 1% of the city's housing
inventory. Expedia, which owns VRBO, supports the regulations. The hotel worker's labor
union lobbied for a lower cap on STRs. Airbnb did not comment on the regulations but did
advocated for a 1.2% cap on units.
This represents an about-face for Airbnb which funded a referendum to overturn San
Diego's STR regulations in 2018 to ban short-term rentals that were not the owner's primary
residence. Faced with nearly twice the number of signatures needed to force a city-wide
vote, the city council rescinded the ordinance. At the time, Airbnb's position was that the
ordinance "would have devastated the local economy, impacted property rights in every
San Diego neighborhood, and cost the city millions annually in tax revenue."14 As noted
earlier in this report, Airbnb's economic impact studies significantly overstate the true
impact of the STR industry.
Nashville
With a significant tourism economy, Nashville saw an explosion of STRs across the city. The
city was faced with illegal STRs that exceeded more than 4,500 units on STR platforms. In
2017 based on neighborhood complaints, the city considered prohibiting non-owner-
occupied homes used for STRs referred to as mini-hotels. Nashville subsequently passed a
law in early 2018 phasing out STRs that aren't occupied by their owners. These properties
would be required to cease doing business in June 2020. At the same time, Airbnb was
lobbying the state legislature to ban local restrictions on STRs, spending between $225,000
and $350,000 on this effort. In early 2018,Airbnb signed a VCA with the state of Tennessee
that requires Airbnb to collect the 7% state sales tax on its bookings, but not the 5%
Nashville occupancy tax. It was shortly thereafter that Nashville passed the STIR ordinance
prohibiting mini-hotels.15
Airbnb subsequently formed a political action committee called the Committee to Expand
Middle Class by Airbnb and started to donate funds to state legislators. A bill was
introduced specifying that STRs should not be considered hotels under state law. It also
included a provision stripping cities of the power to ban existing STRs and grandfathers in
non-owner-occupied STRs. The bill passed in April 2018.
The Tennessee state law preempts the Nashville regulations passed in February 2018.
Nashville had taken a reasoned approach to STR regulation by allowing STRs in multifamily
28
The Negative Consequences of Short-Term Rentals—Arizona's Recipe for Disaster
or mixed-use areas plus permitting STRs that are occupied by their owners. STRs in
residential areas owned by absentee owners would have been banned due to their negative
impacts on neighborhoods. Another 27 cities in Tennessee also had rules that prohibited
non-owner-occupied STRs in residential areas. Those local rules are now preempted as
well.
The Nashville example demonstrates the lengths to which Airbnb will go to eliminate
restrictions on STRs. Because Airbnb will not collect the city's occupancy tax, Nashville must
now develop a system to identify STR addresses and hosts. In addition, Nashville was faced
with illegal STRs and growing concern from citizens. Over 4,500 STRs were listed on 60
active websites. Due to staffing limitations, a consulting firm was retained to develop
software solutions. As a result, more than $2.8 million in STR revenue was collected in the
first year.
Austin
Austin has been at the forefront of the STR issue in Texas for several years. It revamped its
STR ordinances in 2016 by creating three types of STRs.
• Type 1: An owner-occupied residence (owner living on-site a minimum of 51% of
the year) including the rental of an entire unit or part of the unit.
• Type 2: A non-owner-occupied unit including single family and duplex units in a
residential zoning district.
• Type 3: A non-owner-occupied unit that is part of an apartment or condo property
in a commercial district.
The ordinance prohibited the issuance of new Type 2 STR licenses and discontinued existing
Type 2 STRs in residential neighborhoods by April 2022. The city ordinance also established
STR occupancy limits, regulations on sound equipment, regulations of live music, a
prohibition on outdoor assemblies after 10 p.m., and restricted the density of Type 2 STR
units in neighborhoods.
In 2019, the city had 10,000 STRs advertised on websites, but only 2,500 had licenses to
operate. Of 1,312 complaints in 2019, citations were issued to 581 properties, 93% of
which were unlicensed. City enforcement primarily focused on complaints but finding
and tracking down thousands of illegal STRs was well beyond city resources. The city
hired a consulting firm to identify those unregistered STRs.16
In 2016, a number of STR property owners sued the City of Austin, claiming that the
regulations were unconstitutional. In November of 2017, the trial court sided with the
29
The Negative Consequences of Short-Term Rentals—Arizona's Recipe for Disaster
City and upheld the city's STR ordinance, but the issue was appealed. In 2018, the Texas
Attorney General intervened in the lawsuit in support of the STR owners stating that"city
governments do not have the authority to trample Texas constitutional rights and
protections for property owners and their guests."
In November 2019 the Third Court of Appeals ruled that Austin's provision banning non-
owner-occupied Type 2 STRs was void because of the effect on property rights. The
opinion also stated that people have the right of assembly on private property, voiding
addition provisions of the city ordinance.The case is now on appeal to the Texas Supreme
Court.
The involvement of the Attorney General indicates there are political undertones to the
STR issue. The dispute is grounded in the competing rights of STR owners, STR tenants,
online platforms, government regulators, and neighboring owners. The primary
question is whether the right to rent property on a short-term basis is a fundamental
privilege of private property ownership. The outcome will establish the guidelines
between the rights of a few to infringe on the property rights of the majority and the
rights of local governments to maintain the character of their communities."
Summary
The efforts of the above communities to regulate short-term rentals illustrate the range of issues
that STR platforms have imposed upon state and local governments. While these issues exist
everywhere STRs do business,their impacts are pronounced in Arizona,where state-law disables
local communities from using traditional measures such as zoning to prevent and deal with these
adverse consequences. These issues include many complex and controversial matters such as
local control over land uses, private property rights and citizen expectations for safe, quiet, and
peaceful neighborhoods, building and safety requirements, tax collection, and equity in the
treatment of hotel operators. Each city has its own individual issues, but the one that stands out
the most is each city's attempt to protect residential neighborhoods from the intrusion of non-
owner-occupied STRs and multi-unit owners operating as miniature hotel chains.
30
The Negative Consequences of Short-Term Rentals—Arizona's Recipe for Disaster
Appendix
Letter from Arizona mayors to Airbnb and Expedia Group CEOs
31
December 9, 2020 By Federal Express & Email
Mr. Brian Chesky Mr. Peter M. Kern
CEO, Airbnb, Inc. CEO, Expedia Group, Inc.
888 Brannan Street 1111 Expedia Group Way West
San Francisco, CA 94103 Seattle, WA 98119
brian.chesky@airbnb.com pekern@expediagroup.com
Dear Messrs. Chesky and Kern,
As you know, Arizona's state law SB1350 gutted local authority over short-term
rentals in Arizona, including the local zoning and enforcement authority that
traditionally applied to such activities. We, the undersigned mayors of cities and
towns across the great State of Arizona, are taking the unusual step today of
sending this letter to ask that you immediately end lobbying activities designed to
prevent reform of this disastrous state law which your industry promoted.
All of us can provide examples of how SB1350 is causing serious harm to our citizens
and neighborhoods, and we are deeply concerned that short-term rentals operating
without appropriate local government oversight are causing long-term damage to
our communities and the entire state.
Brian Chesky recently admitted that "We really need to think through our impact on
cities and communities." Thank you, Mr. Chesky, we agree. But your industry's
actions in Arizona are inconsistent with this stated concern.
There is no question that Arizona's SB1350 weakens our communities and has left
us defenseless in the face of harmful and undesirable activities. Specifically:
• Once peaceful neighborhoods suffer from unsupervised groups coming in
and out for daily stays, which include unruly, disruptive and noisy large
gatherings;
Neighborhoods are experiencing dangerous criminal activity from short-
term rental properties, including shootings, sexual and physical assaults, and
the use of short-term rental properties as locations and staging places for
other criminal activity (over the summer, looting and rioting);
Affordable housing stocks are being gobbled up by investors who are
focused on short-term commercial uses of their properties, rather than
neighborhood stability and prosperity;
1
• Hotels and resorts, which provide jobs for our citizens and a tax base for our
communities, face unfair competition under the current Arizona law while
they follow a different, more responsible, set of rules.
As bars and restaurants have been in limited service during the pandemic,
short-term rentals have emerged as alternative venues. Many have hosted
unsafe and unwelcome parties for hundreds of people during the closures.
Cleaning standards are not uniform, if there is recommended cleaning at all,
and there typically are no responsible owners present;
• The State of Arizona doesn't have the interest to monitor and identify short-
term rental "hosts." Local communities experience hosts avoiding required
local registration, platform fees, and taxes by booking "off-line." Local
government cannot currently partner with you effectively on this mutual
issue;
Some communities have seen over half of citizen police calls relate to
problems with short-term rentals. This is a direct result of our local
communities' inability to enact and enforce responsible regulations.
These are just a few of the issues our communities are confronting with no relief in
sight under current state law. Earlier this year, bipartisan state legislation that
would have substantially returned appropriate authority and effective tools to local
communities was advancing through the state legislature with our support. The
legislation did not impose bans on short-term rentals, but rather restored to local
governments the longstanding right and ability to protect residential
neighborhoods. As you know,this is the way things work across the nation, except
for Arizona. Unfortunately,the COVID-19 pandemic forced the state legislature out
of session before the broadly supported bill could become law.
Your companies have actively and cynically opposed needed reform through public
relations and paid lobbying efforts. Your support of Arizona's SB1350 is tearing at
the fabric of our communities and is an affront to every Arizona homeowner who
aspires to the "American Dream" of peaceful homeownership. The time has come
for you to get on the right side of this issue and recognize that supporting our
neighborhoods is also in your long-term economic interests and the long-term
interests of your investors.
Your current Arizona business model is unsustainable. Until the law returns local
control of short-term rentals to locally accountable elected officials,the demand
from our citizens for reform will continue to amplify and become a business
disruption that cannot be ignored, perhaps with unintended consequences for your
companies' larger aspirations.
2
We believe there are ways for short-term rentals to compatibly and successfully
operate in a variety of settings. We also believe that allowing local leaders to
manage activities in their communities is the wise and business-savvy approach to
creating a sustainable short-term rental industry.All we ask is that you end your
efforts to block Arizona's needed return to local standards governing your activities
in neighborhood areas.
Thank you for your attention.
Sincerely,
Scott Anderson Mila Besich
Mayor, Gilbert Mayor,Town of Superior
Jerry Bien-Willner Tom Brady
Mayor, Town of Paradise Valley Mayor, Bullhead City
Ginny Dickey Tim Elinski
Mayor, Town of Fountain Hills Mayor, City of Cottonwood
Coral Evans Kate Gallego
Mayor, City of Flagstaff Mayor, City of Phoenix
John Giles Kevin Hartke
Mayor, City of Mesa Mayor, City of Chandler
Stephanie Irwin Mike LeVault
Mayor, Town of Pinetop-Lakeside Mayor, Youngtown
Georgia Lord Thomas McCauley
Mayor, City of Goodyear Mayor, City of Winslow
Craig McFarland Greg Mengarelli
Mayor, City of Casa Grande Mayor, City of Prescott
Jen Miles Tom Morrissey
Mayor, City of Kingman Mayor, Town of Payson
Frederick W. Mueller Douglas J. Nicholls
Mayor, City of Sierra Vista Mayor, City of Yuma
Eric Orsborn David Ortega
Mayor, City of Buckeye Mayor-Elect, City of Scottsdale
3
Rui Pereira Les Peterson
Mayor,Town of Wickenburg Mayor,Town of Carefree
Micah Powell Regina Romero
Mayor, City of Eloy Mayor, City of Tucson
Thomas L. Schoaf Cal Sheehy
Mayor, City of Litchfield Park Mayor, Lake Havasu City
Bob Teso Anna Tovar
Mayor, City of South Tucson Mayor,Tolleson
Kenneth Weise Joe Winfield
Mayor, City of Avondale Mayor,Town of Oro Valley
Corey Woods
Mayor, City of Tempe
cc: 1) Ms. Sara Garvin, VP—Global Communications and Corporate Brand, Expedia
Group Inc.
2) Mr. Nick Wilkins, Director of Communications,Airbnb, Inc.
4
The Negative Consequences of Short-Term Rentals—Arizona's Recipe for Disaster
Endnotes
' CBRE Research.Short-Term Rentals:A Maturing U.S. Market and Its Impact on Traditional Hotels. 2020.
Z Arizona's law does permit a city or town to regulate STRs if the regulation is narrowly tailored to
protect public health and safety for the purposes of fire and building codes, health and sanitation,
transportation or traffic control, solid or hazardous waste,and pollution control.
3 HB 2672 passed in 2019 provided limited relief to cities and towns by requiring STR operators to (1)
secure a sales tax license, (2) providing owner or owner's designee contact information to local
governments for responding to complaints, and (3) prohibiting STR owners from renting their properties
for nonresidential purposes such as a special event or uses such as retail, restaurant, or banquet space.
However,SB1350 still prohibits cities and towns from regulating the use of STRs particularly in residential
neighborhoods and imposes a state-level enforcement regime.
4 Rosequist, Melissa. "Short-Term Rental Reforms Appear at Play at Arizona Legislature". Daily
Independent. December 31, 2019.
5 Bivens,Josh. The Economic Costs and Benefits of Airbnb. Economic Policy Institute.January 2019.
6 Adelson,Jeff. "Stricter Limits Will Hit New Orleans Short-Term Rentals After Council Vote; Here's What
to Know". NOLA.com news article.August 8,2019.
Bivens,Josh. The Economic Costs and Benefits of Airbnb. Economic Policy Institute.January 2019.
8 National University System Institute for Policy Research.Short-Term Rentals in the City of San Diego:
An Economic Impact Analysis. October 2015.
9 Bucks, Dan R.Airbnb Agreements with State and Local Tax Agencies:A Formula for Undermining Tax
Fairness Transparency and the Rule of Law. March 2017.
to CBRE Research.Short-Term Rentals:A Maturing U.S. Market and Its Impact on Traditional Hotels.
2020.
11 CBRE Hotels America Research. Hosts with Multiple Units—A Key Driver of Airbnb Growth:A
Comprehensive National Review Including a Spotlight on 13 U.S. Markets. March 2017.
12 Martineau, Paris. "Inside Airbnb's 'Guerilla War'Against Local Governments".WIRED.com. March 3,
2019.
"Adelson,Jeff. "Stricter Limits Will Hit New Orleans Short-Term Rentals After Council Vote; Here's
What to Know". NOLA.com news article.August 8,2019.
14 Martineau, Paris. "Inside Airbnb's 'Gueri►la War'Against Local Governments".WIRED.com. March 3,
2019.
36
The Negative Consequences of Short-Term Rentals—Arizona's Recipe for Disaster
is Avalara MyLodgeTax Blog. "Nashville Votes to Phase Out Non-Owner-Occupied Short-Term Rentals".
February 9, 2018.
"Sokolowsky,Jennifer. "New Data Helps Austin Crack Down on Illegal Short Term Rentals".Avalara
MyLodgeTax Blog.July 30, 2019.
17Badgett, Rebecca. Coates Cannon Blog. "Short Term Rental Regulations Found Unconstitutional in
Texas: Renting is a Fundamental Privilege of Property Ownership". UNC School of Government.April 7,
2020.
37
The Negative Consequences of Short-Term Rentals—Arizona's Recipe for Disaster
References
Adelson,Jeff. "Stricter Limits Will Hit New Orleans Short-Term Rentals After Council Vote;
Here's What to Know". NOLA.com news article. August 8, 2019.
American Hotel & Lodging Association. From Air Mattress to Unregulated Business:An Analysis
of the Other Side of Airbnb. March 2016.
Avalara MyLodgeTax Blog. "Nashville Votes to Phase Out Non-Owner-Occupied Short-Term
Rentals". February 9, 2018.
Badgett, Rebecca. Coates Cannon Blog. "Short Term Rental Regulations Found Unconstitutional
in Texas: Renting is a Fundamental Privilege of Property Ownership". UNC School of
Government. April 7, 2020.
Binzer, Ulrik. A Practical Guide to Effectively Regulating Short-Term Rentals on the Local
Government Level. Granicus. Undated.
Bivens,Josh. The Economic Costs and Benefits of Airbnb. Economic Policy Institute.January
2019.
Bucks, Dan R.Airbnb Agreements with State and Local Tax Agencies:A Formula for Undermining
Tax Fairness Transparency and the Rule of Law. March 2017.
CBRE Hotels America Research. Hosts with Multiple Units—A Key Driver of Airbnb Growth:A
Comprehensive National Review Including a Spotlight on 13 U.S. Markets. March 2017.
CBRE Research.Short-Term Rentals:A Maturing U.S. Market and Its Impact on Traditional
Hotels. 2020.
Dogru,Tarik, Mody, Makarand, and Suess, Courtney. "The Hotel Industry's Achilles Heel?
Quantifying the Negative Impacts of Airbnb on Boston's Hotel Performance". Boston Hospitality
Review Fall 2017, Vol. 5, Issue 3. 2017.
Granicus. "Short-Term Rental Vacation Rental Compliance". Undated website reference.
Martineau, Paris. "Inside Airbnb's 'Guerilla War'Against Local Governments". WIRED.com.
March 3, 2019.
National University System Institute for Policy Research. Short-Term Rentals in the City of San
Diego:An Economic Impact Analysis. October 2015.
NERA Economic Consulting.Airbnb's Global Support to Local Economies:Output and
Employment. Prepared for Airbnb. March 2017.
Rana, Preetika. "Airbnb Challenged by Angry Neighbors, Unfavorable Local Regulations Loom as
Company Begins Trading Publicly".The Wall Street Journal. December 10, 2020.
38
The Negative Consequences of Short-Term Rentals—Arizona's Recipe for Disaster
Rosequist, Melissa. "Short-Term Rental Reforms Appear at Play at Arizona Legislature". Daily
Independent. December 31, 2019.
Rothstein, Matthew. "Not All Short-Term Rental Companies Will Weather the Pandemic
Recession Like Airbnb". Bisnow East Coast.January 10, 2021.
Sokolowsky,Jennifer. "New Data Helps Austin Crack Down on Illegal Short Term Rentals".
Avalara MyLodgeTax Blog.July 30, 2019.
Sheridan, Mike. "Short-Term Rentals and the Effects on Housing Affordability". Urban Land.
Urban Land Institute. October 21, 2019.
Sokolowsky, Jennifer. "Tennessee Lawmakers Pass Bill Limiting Cities' Powers Over Short-Term
Rentals". Avalara MyLodgeTax Blog. April 27, 2018.
Weisberg, Lori. "New Regulations Slashing San Diego Short-Term Rentals by SO Percent
Endorsed by Planning Commission". San Diego Union Tribune. December 3, 2020.
Wilson, Trey. "3rd Court of Appeals: Austin's Short Term Rental Ordinance Void". Attorney
Website Posting. December 9, 2017.
39
Brent Butler
From: Scott France <scott@sfrance.net>
Sent: Monday, February 17,2025 12:14 PM
To: Brent Butler
Subject: Beacon interview request regarding short-term rentals
ALERT: BE CAUTIOUS This email originated outside the organization. Do not open attachments or click on links if you are
not expecting them.
Hello Brent,
My name is Scott France,and I have recently begun freelance reporting for the Jefferson County Beacon,focusing on city
and county government.
The topic of my first article for the Beacon will be on the coming short term rental rules that the county is considering.
This article will be mainly a status update,and I have much background material. However, I believe that the readers
would benefit from your voice as a lead on this project--perhaps speaking to the voluminous input you have received
from various sides of this issue, and the county's perspective on the various arguments, and how rules could affect
community/neighborhood health and culture,as well as the County's long-term economic progress and...and any other
frames that you deem important.
I expect that you have a full plate,so I'll take whatever amount of time you may be able to carve out,whether it be by
phone or in person at your convenience.
Thank you for your consideration,
Kind regards,
Scott France
971-255-2410
1
Brent Butler
From: Susie Learned <s.learned7@gmail.com>
Sent: Tuesday, February 18, 2025 7:05 PM
To: Planning Commission Desk; Brent Butler
Cc: Suzanne Learned
Subject: Allow STR to continue in Jefferson Co
ALERT: BE CAUTIOUS This email originated outside the organization. Do not open attachments or click on links if you are
not expecting them.
Dear Planning Commission Members,
I am writing to ask you to allow private land owners to continue with short term
rentals. Our guesthouse studio is a vacation rental. We are retired and the income is
helpful, we provide the county with taxes, and it is wonderful to welcome guests to
Jefferson County in a more personal way. Please do not limit the number of STRs and
please do not limit primary residency requirements.
Thank you so much,
Suzanne Learned
Seclusion Cottage
s.learned7@gmall.com
Brent Butler
From: Susie Learned <s.learned7@gmail.com>
Sent: Tuesday, February 18, 2025 7:05 PM
To: Planning Commission Desk; Brent Butler
Cc: Suzanne Learned
Subject: Allow STR to continue in Jefferson Co
ALERT: BE CAUTIOUS This email originated outside the organization. Do not open attachments or click on links if you are
not expecting them.
Dear Planning Commission Members,
I am writing to ask you to allow private land owners to continue with short term
rentals. Our guesthouse studio is a vacation rental. We are retired and the income is
helpful, we provide the county with taxes, and it is wonderful to welcome guests to
Jefferson County in a more personal way. Please do not limit the number of STRs and
please do not limit primary residency requirements.
Thank you so much,
Suzanne Learned
Seclusion Cottage
s.learned7@gmall.com
From:Tom Thiersch <tprosys@grivil.com>
Sent: Sunday, July 21,202410:56 AM
To: Brent Butler<BButler@co.lefferson.wa.us>
Cc:Josh Peters<1Peters@co.1efferson.wa.us>
Subject: SRT ordinance recommendation
ALERTS BE CAUTIOUS This email originated outside the organization. Do not open attachments or click on links if you are
not expecting them.
Mr. Butler,
Thank you for the presentation regarding Short Term Rentals at the recent meeting of the Planning
Commission.
This email is to ensure that my public comment regarding SRTs was heard and to elaborate on some finer
points.
Specifically, I would like the Code to not have any exceptions for existing "hospitality" permit holders. That is,
no "grandfathering". All hospitality permits, whether currently existing or newly issued, must be subject to
exactly the same rules, regulations, and fees.
Existing permits would immediately fall under the mandatory health and safety inspection regime; no
exceptions are acceptable because of the many current rentals that are outright dangerous and unfit for
habitation.
Existing permit holders would have to re-apply for their permits within one year of the effective date of the new
SRT ordinance; that is the only kind of"grace period" that should be allowed; to avoid any confusion, this sole
exception would not have to be part of the SRT ordinance itself but could simply be stated in the enabling
resolution to be acted upon by the BoCC. After the initial renewal, those permits would be subject to the same
renewal schedule and conditions as all others.
Thank you for your efforts on this issue and for carefully considering all input from concerned property owners.
Tom Thiersch