HomeMy WebLinkAbout2016-03-22 CC Packet Enclosure a
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Oak Park Heights
Request for Council Action
Meeting Date March 22,2016
Time Required: 10 Minutes
Agenda Item Title: Consider the AirB&B
Agenda Placement Old Business
Originating Department/Reque
der$ • City Administrator
Requester's Signature
Action Requested Discussion. , ble Action
Background/Justification(Please indicate if any previous action has been taken or if other public
bodies have advised):
Please see the attached Staff Memo.
Flif2M 2/23/16 City Cowmil tine:
1 would like the City Council to discuss the items brown as AirB&Bs"—which are essentially short term lodging►rentals for
single family homes to determine Obese operations align with City des as they are cwsvntly written(relative to lodging
taxes,public safety and/or home occupations)and/or if the Council would like to investigate this matter*then If the Council
would like to review this matter,I would like to ask that the City Staffprovide some details and analpels for afuture meeting not
later than April 2016
Ernclaswies:
Similar Action/Resohaion by the City of St Paul
Excerpts from the MN Dept afReven ue.
Star T ibwre Article—City of Eagan,MN for 5-23-15
Page 31 of 270
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City of Oak Park Heights
14168 Oak Park Blvd. N•Box 2007•Oak Park Heights,MN 55082•Phone(651)439-4439•Fax(651)439-0574
March 16th,2016
MEMO
TO: Mayor and City Council Members
FROM: Eric Johnson,City Administrator
RE: AirB&B—Short Term Rentals
At the February 23w,2016 City Council meeting the Council directed that staff review and consider the issues related to the concept
of an°AIr8&B"or perhaps more generally classified as short term rentals of single family housing.
What is an"AirBnB"?
Specifically,°AirBnB is a formal name of a website/company that offers and coordinates those persons who desire to rent their
home or property to a third party for a short term use-such as a vacation,business traveler,etc.There appear to be other similar
companies such as°HomeAway";°Rentbyowner°or°Tripping.com°.The term"AirBnB°seems however to be a general moniker
for such an activity.
The images below show the workings of the tool,where property owners register their properties, these appear on a map and a
renter simply shops for the units they may like. It is relatively straightforward.A search on March 7th,2016 resulted in there being
a number of homes in the OPH/Stillwater/Bayport area.One In Oak Park heights on 65th Street as listed through AirBnB of course
there may be others.These will vary dally.
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Are these permissible under current City Code?
The City does have a public interest in ensuring that all properties are reasonably maintained,that proper upkeep is performed
and that congruent land-uses remain in-place relative to the City's zoning code. In addition, many property owners might cast a
skeptical eye if they knew the neighboring house was to be converted into a short-term rental property or in effect a motel/hotel.
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That said there is however not a direct methodology under the City Ordinance that would dearly prohibit these,nor—overtly permit
them.
The City has four ordinances that generally relate to the possible regulation of an'AirBnB°enterprise.
401.15 M Home Occupations:
Under this authority,OPH regulates the use of single family structures for the supplemental use as a home based business—such
as an accounting office, hair salon or other permitted uses as may be found. More definitively City Ordinance states: "...Any
occupation or profession engaged in by the occupant of a residential dwelling unit,which is clearly incidental and secondary to the
residential use of the premises and does not change the character of said premises.
At first blush one could suggest that a property owner could use their home as a single family rental—regardless of a duration of
an occupant as It is their°business'and the use of the property would not change the residential use or charter of the premises.
That definition however is a disqualifier in of itself as the business must be Incidental or secondary to the residential use.
Further per 401.15 M 3.11 states,°Not over 25%of any one story can be used for a home occupation'i.e.—not the entire home
So while the land use itself would remain generally single-family-a person who desires to establish an"AirBnB"in the City would
very likely not be able to do so under the 401.15 M—Home Occupation authority.
401.02.B.Definitions.
While the term or duration of a rental of a single family dwelling may be in question and/or the quality or condition of the property
may be in question;City Ordinances do contain the following definitions:
Dwelling,Single-Family: A dwelling unit designed exclusively for occupancy by one(1)family.
Family: An individual or two(2)or more persons related by blood,marriage,adoption or a group of not more than three
(3) persons who need not be related by blood or marriage living together in a dwelling unit. (The number of persons
herein defined are the basis upon which performance standards are established within this Ordinance.)
Taken with face validity,it would appear that the use of a single family dwelling in a residential district(R-1)for an°AirB&B"would
at this time be limited to use by a'family"that meet the above definitions. In other words, a group of more than three unrelated
persons could not use the property in this°AirBnB'fashion.
401.22.E 3—Bed and Breakfast facilities:
Under this authority, a property owner of land zoned R-1 or R-2 may establish a Bed and Breakfast upon the issuance of a
Conditional Use Permit by the City.Such CUP process would require a number of regulatory hurdles including limiting the number
of beds, lot area sizes, a State issued license for food services, etc. — (see parts a. thru p). The City Council would require a
demonstration of compliance before such permit was issued and which would require a detailed submission by the property owner
prior to any use being considered following a typical CUP process.
But is an°AirBnB a Bed and Breakfast(B&B)?
Under the City Ordinance a B&B is:
Bed and Breakfast Faculty: A building other than a hotel,wherefore compensation,meals and lodging are provided to transient guests,but not including a
building providing these services to more than ten(10)persons,and where at least one(1)meal and/or beverages are offered in connection with the provision of
sleeping accommodations.
With this definition in place,it would appear possible that a person would be eligible to apply for a B&B status as an"AirBnB"simply
by offering a glass of water and keeping the site to less than 10 persons. City Ordinance does not elaborate on the scope of meals
or beverages.Admittedly this would be way around the law—per se, but in theory could be done.
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Lodging Tax-City Ordinance 1411:
Prior to 2009,the City adopted City Ordinance 1411 to establish a local lodging tax for the purposes and benefit increase commerce
and to provide for a vibrant City atmosphere that will attract tourism and convention business to the City,it is essential that the City
be marketed and promoted by a local convention and tourist bureau.Following the definitions found in(1)below,the rental of such
property under the'AirBnB"concept would be subject to such Lodging Tax and it is the responsibility of the entity providing the
lodging to collect such tax and ensure its remittance to the City.$3 for every$100 in the gross receipts.
That stated however,this particular provision does not define or outline if a°AirBnB'may operate,rather it is an additional regulatory
condition for which any operator of a going-concern where there is a'consideration (paid for) lodging'of less than 30 days in
duration.'AirBnB"would appear to be subject to paying this lodging tax.
1411.020 l odainr Tax Establishment.
in furtherance of that purpose,and pursuant to Minnesota Statutes§469.190,a tax of 3%is hereby Inposed on The gross receipts generated within the CO from
the furnishing for consideration of bilging at hotels,motels,roomerg houses,tourist courts or resorts,other than the renting or leasing of bdgbrg for a continual
period of 30 days or more.
1i Collection.Any person,business entity,corporation,partnership or association(Operator)that provides lodging to others must collect
the tax at the tune lodging charges are paid. The amount of tax must be separately stated from the bdging charges and held in bust
for the City until remlted to the City.
Pro and Cons of°AirBnB"-type facilities
Some`pros'of'AirBnBs'are that it may bring added tourism into a community and offers additional lodging choices,perhaps
even for larger groups who wish to stay together.Another possible°pro°is a possibility of additional lodging tax revenue.A third
benefit may be to provide a property owner with additional income from the occasional rental of their home.Of course there are
likely others.
Some'cons'of'AirBnBs°are that the transient nature of the occupants can detract from the character of a neighborhood as
owner occupied homes are generally better maintained versus non-owner-occupied.Short term Transient occupancy for such
specific purposes may also create a vacation like-atmosphere—in a residential district not designed for such use-and could
lead to additional refuse,noise and other localized complaints if not closely monitored by the property owner.
There are of course perspectives on both sides that have merit,but like many related elements—much depends on the property
owner on how they maintain and manage their property.
Summary:
Beyond these parameters the City has no other clear regulatory authority in its current ordinance that expressly prohibits rentals
of single family homes for short,transient(or even long)durations. If it is a short duration for under 30 days,however it would
appear that the lodging tax would apply and would need to be paid.
Initial Options to Consider:
OPTION 1:
If the City defines'AirBnBs"as a bed and breakfast the current language for its enforcement and licensure(CUP)may be
reasonable and proper but the definitions should be clarified to also include these.The CUP tool could ensure constant
compliance with City Ordinances by the owner and codes related to exterior upkeep and reasonable use.The CUP could be
rescinded if violations become commonplace.
If the City Council desires to allow'AirBnB'type facilities,it may consider amending its definitions of a BED and BREAKFAST
with the following:
Possible definition amendments to -- Bed and Breakfast Facility: A building facility other than a hotel, where
compensation r nr^vided to the 'r or their drasianrr 1s exchange for;meals and/or lodging are; doled-to transient guests
but not including a building providing these services to more then ten(10)persons:: s t least one (1) meal and/or
beverages offered in connection with the provision of sleek-lodginci accommodations.
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OPTION 2:
Alternatively, the Council might consider the creation of a new CUP element entitled Transient Lodging under the similar zoning
classifications where single family homes exist in R1, R2 and/or R3 districts.A CUP would need to be applied for and secured by
a property owner who desires to rent-out their home t
Possible definition of Transient Lodging:
Transient Lodging: A building or facility constructed solely as a single family home not occupied by the owner
and where compensation is provided to the owner or their designee In exchange for lodging to transient guests not
exceeding 30 consecutive days for any one transient occupant or group not to exceed number of people.
Enforcement ultimately becomes the key element.City staff will likely not be able to regularly check various rental sites to ensure
all property owners know the law and compliance will likely fall to self-reporting and follow-up enforcement of the City is provided
information or a concern. Moreover, is simply the listing of one's property the violation? (probably not), rather it is the use itself
which make the enforcement all that more challenging and costly.
Some Subsequent Questions and Comments:
A. Does the City Council desire to permit these type of facilities?
If the Council does not desire"AirBnBs"that regulation will take some additional analysis as to how that could be outright
precluded. Rental Ordinances are routinely challenged and the nature of the issue at hand is the duration of stay—not
the condition of the facility itself.
B. Does regulation include registration of some form—if so how often?Fees?Inspections?
The implementation of a CUP may be the easiest from an initial entry review,fee structures and clear permit.And would
send a distinct message and opportunity to surrounding neighbors that this enterprise is being proposed.And,if upkeep
is not maintained or the site becomes an issue the CUP could be revoked or suspended. Perhaps inspections are only
on the basis of meritorious complaints?
C. Staff did reach out to the City of Stillwater to determine what their ordinances may or might include; but at this time it
appears that they will be hiring a consultant to review and provide additional guidance. It may be beneficial if these
ordinances were similar.
D. Lastly, If the Council does desire to pursue this via the CUP process—Staff would recommend the development of a
deeper process to outline those conditions under which a CUP would be approved(or denied).
ATTACHMENTS:
VARIOUS MEDIA ARTICLES ABOUT°AirBnB's for more information.
A copy of the current CUP requirements for a Bed and Breakfast.
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Reader's View:Duluth should work with Airbnb on rentals I Duluth News Tribune Page 1 of 2
FREE PUBLIC RECORDS SEARCH aPeri o
First Name Last Name
R . er's View: Du i
Airbnb on rentals
Posted on Nov 20.2015 at 9:53 p.m.
Airbnb's recent pledge to work with municipalities that are evaluating regulatory
needs was encouraging, as detailed in the Nov. 12 Wall Street Journal. Sharing
accumulated data that lends insight into the new and growing house-sharing
industry can benefit all stakeholders.
Duluth imposed a year-long moratorium on new short-term housing permits this
past July. Traditional bed-and-breakfast owners, the hotel/motel hospitality industry
and others coaxed the City Council into taking this measure. This happened even
though some B&B operators register their properties on the Airbnb website and book
guests through the site. Evidently, eliminating future competition that new Airbnb
hosts might become was an option Duluth councilors agreed to impose.
Stifling innovative marketplace advancements and limiting consumers'travel-housing
choices is anti-capitalistic. Municipal interference that favors the few at the expense
of the traveling public should be discouraged.
Airbnb's apparent willingness to cooperate with local government concerns about
safety regulations and local hotel tax revenue issues should persuade all stakeholders
that common ground can be found.
Chris Lehane,Airbnb's public relations director, accurately described the company's
world-wide home-sharing phenomenon as "a movement of the future."
It's a movement of housing options that is here to stay. There are 2 million listings
across 34,000 cities, and the number grows weekly, indicating the time has come for
municipal elected officials to negotiate and determine regulations that best benefit
the consuming public they represent.
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httn://www.duluthnewstribune_cnm/nnininnhearierc-vinurelf2/27Int-TPatiere-V/Pur-r illitit_e 1nnnn1i
Reader's View: Duluth should work with Airbnb on rentals I Duluth News Tribune Page 2 of 2
Duluth's new mayor and the City Council should work with Airbnb, not try to freeze
them out of the market.
Tim McDevitt
St. Paul
ADVERTISEMENT
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httn://www.duluthnewstribune.enm/nnininn/residers-viewe/'IRR'77t11_res,ipre_viPw_dnh ith_e V1 At'm1 A
City of Duluth
Planning Division
411 West First Street • Room 208 • Duluth, Minnesota 55802-1197
DULUTH1H1 H' 218-730-5580 • Fax:218-730-5904 • www.duluthmn.gov
. An Equal Opportunity Employer
MEMORANDUM
DATE: March ist, 2016
TO: Planning Commission
FROM: John Kelley, Planner U
SUBJECT: Vacation Dwelling Unit Rental - Home Share
At the February 9th, 2016 Planning Commission meeting staff presented suggested
revisions to the current vacation dwelling unit rental requirements and introduced
proposed permit regulations to allow for home share or Alrbnb type lodging. The
information presented at the meeting was the Planning Commissions first glance at
proposed changes to these types of lodging activities.
On February 22nd, 2016 staff presented a report to the Committee of the Whole for City
Council regarding vacation dwelling units. In general, City Councilors were in support
of the revisions to the existing vacation dwelling unit standards and the proposed home
share requirements. Comments received from Councilors included support in changing
the minimum night stay to 2 nights, strengthening the enforcement of permit
regulations, providing screening/buffering between permitted vacation dwellings and
adjacent dwelling units, and establishing a distance buffer between permitted dwelling
units.
The attached documents Incorporate comments into the proposed regulations that were
received from the Planning Commission and City Council.
Page 1 of 1
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Vacation Dwelling Unit
Definitions:
Vacation Dwelling Unit— a commercial use of a habitable unit by a guest in a non-
owner occupied dwelling providing sleeping, cooking, eating, living and sanitation
facilities that are physically separated from other habitable units that may or may not
be located in the same building for periods of occupancy from 2 to 29 days. This use
does not include hotels, motels, or bed and breakfasts.
Accessory Vacation Dwelling Unit—a commercial use of an accessory dwelling unit as
defined by this chapter that Is used for periods of occupancy from 2 to 29 days.
Existing Vacation Dwelling Standards:
U. Vacation dwelling unit
1. The minimum rental period shall as follows:
(a) For properties zoned RR-1, RR-2, R-1, R-2, R-P, MU-N and F-5 the minimum rental
period shall not be less than two nights;
2. A vacation dwelling rental use under this section may not be located on a lot that Is
within 200 feet of a lot on which another Vacation Dwelling rental is located,
3. The total number of persons that may occupy the vacation dwelling unit is one
person plus the number of bedrooms multiplied by two;
4. Off street parking shall be provided at the following rate:
(a) 1-2 bedroom unit, one space;
(b) 3-4 bedroom unit, two spaces;
(c) 5+ bedroom unit, three spaces;
5. Only one motorhome (or pickup-mounted camper) and/or one trailer either for
inhabiting or for transporting recreational vehicles (ATVs, boat, personal watercraft,
snowmobiles, etc.) may be parked at the site, on or off the street;
6. The property owner must provide a site plan, drawn to scale, showing parking and
driveways, all structures and outdoor recreational areas that guests will be allowed to
use, including, but not limited to, deck/patio, barbeque grill, recreational fire, pool, hot
tub, or sauna, and provide detail concerning the provision of a dense urban screen
which is required to buffer these areas from adjoining properties.
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7. The property owner must obtain all licenses and permits from the city of Duluth and
state of Minnesota required for guest occupancy on the property for two to 29 days;
8. The property owner must provide required documents and adhere to additional
requirements listed in the city of Duluth's UDC application manual related to the
keeping of a guest record, designating and disclosing a local contact, property use
rules, taxation, and interim use permit violations procedures;
9.The interim use permit shall expire upon change in ownership of the property or in
six years, whichever occurs first. (Ord. No. 10039, 8-16-2010, § 1; Ord. No. 10041, 8-
16-2010, § 5; Ord. No. 10044, 8-16-2010, § 6; Ord. No. 10096, 7-18-2011, § 17; Ord.
No. 10153, 5-14-2012, § 2 Ord. No. 10192, 12-17-2012, § 10; Ord. No. 10225, 5-28-
2013, § 6; Ord. No. 10286, 3-10-2014, § 8; Ord, No. 10329, 10-13-2014, § 2.)
In addition to the UDC Interim Use Permit requirements listed above, Vacation Dwelling
Units and Accessory Vacation Dwelling Units must adhere to the following regulations:
1. Permit holder must keep a guest record including the name, address, phone
number, and vehicle (and trailer) license plate information for all guests and
must provide a report to the City upon 48 hours'notice.
2. Permit holder must designate a managing agent or local contact who resides
within 25 miles of the City and who has authority to act for the owner in
responding 24-hours-a-day to any complaints from neighbors or the City. The
permit holder must notify the Land Use Supervisor within 10 days of a mange in
the managing agent or local contact's contact information.
3. Permit holder must provide the name, address, and phone number for the
managing agent or local contact to all property owners within 100'of the
property boundary. The permit holder must notify neighboring properties within
10 days of a change in the managing agent or local contact's contact
information.
4. Permit holder must disclose in writing to their guests the following rules and
regulations:
a. The managing agent or local contact's name, address, and phone number;
b. The maximum number of guests allowed at the property;
c. The maximum number of vehicles, recreational vehicles, and trailers
allowed at the property and where they are to be parked;
d. Property rules related to use of exterior features of the property, such as
decks, patios, grills, recreational fires, pools, hot tubs, saunas and other
outdoor recreational fadlities;
e. Applicable sections of City ordinances governing noise, parks, parking and
Pets;
5. Violations of this section of the UDC are subject to the following penalties and
fines:
a. First violation — Notice of violation of Chapter 50. €
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b. Second violation within the preceding 12 months - citation for violation of
a Chapter 50.
c. Third violation within the preceding 12 months: $200 fine and the home
share permit shall be revoked for one year.
6. Permit holder must post their permit number on all print, poster or web
advertisements;
7. Prior to rental, the building must be inspected and an Operational Permit issued
by the Fire Prevention office. Contact the Fire Prevention office at 218-730-4397
or 218-730-4399 for information.
8. Permit holder must apply for and be granted State and local sales tax numbers,
including Hotel and Motel Use Sales Tax.
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Home Share Permit Regulations
Definitions:
Guest—A person occupying a home share or vacation dwelling unit rental that is not a
permanent resident of the property.
Home Share -A commercial use of a habitable room by a guest in an owner-occupied dwelling
for compensation be it monetary or the exchange of goods or services.
Home Share General Requirements:
a) Annual Permit
b) A Home Share may only be offered in a habitable room as defined in Chapter 50.
c) The total number of full time occupants of the dwelling unit.
d) The preparation, sharing or sale of food and beverage by the owner occupant to the
guest is prohibited.
e) A Permit holder may not advertise their home sharing business for an accessory
structure that is a storage shed or garage as a home share.
f) A Permit holder may not advertise their home sharing business in any area exterior to
the dwelling unit where the home sharing is occurring. This includes common interior
areas.
g) In any advertisement of the home share it must include the Permit number issued by
the City.
h) Health and safety Inspections completed and certificates of inspection submitted at time
of application for Permit.
i) The permit would consist of an administrative approval process and cost is$200.00.
Home Share Application Requirements:
1. Application fee$200.00
2. The application for the permit would consist of:
a. A hotel/motel license
b. Inspection certificates
c. Evidence of enrollment to pay taxes
d. Verification of owner occupancy through the Homeowner's Property Tax
Exemption or other appropriate information(e.g. driver's license,utility billing,
auto registration, etc.)
3. A floor plan of the dwelling unit identifying which room(s)will be rented.
4. A site plan indicating location of parking spaces.
Home Share Permit Standards: (Need to add line to the use table under lodging)
1. Home share is permitted for all properties zoned for residential use.
2. The rental period shall be for 30 days or less.
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3. The maximum number of overnight guests allowed is 4 persons in addition to the owner
occupants.
4. One on street or off-street parking space in addition to the required residential parking
per Section 50-24-1 of the UDC.
5. The property owner must obtain ail Permits from the City of Duluth and State of
Minnesota required for guest occupancy on the property.
6. The property owner must provide required documents and adhere to additional
requirements listed in the City of Duluth's UDC Application Manual related to the keeping
of a guest record, property use rules, taxation, and home share permit violations
procedures.
7. The Permit shall expire upon change in ownership of the property or one year from
issuance date, whichever occurs first.
8. At least one permanent resident must be present in the dwelling at all times that the
property is rented.
In addition to the Permit requirements listed above, Home Shares Permit holders must adhere
to the following regulations:
1. Permit holder must keep a guest record including the name, address, phone number,
and vehicle(and trailer) license plate information for all guests and must provide a
report to the City upon 48 hours'notice.
2. Permit holder must disclose in writing to their guests the following rules and regulations:
a. The maximum number of guests allowed at the property;
b. The maximum number of vehicles allowed at the property and where they are to
be parked;
c. Property rules related to use of exterior features of the property, such as decks,
patios, grills, recreational fires, pools, hot tubs, saunas and other outdoor
recreational facilities;
d. Applicable sections of City ordinances governing noise, parks, parking and pets;
3. Violations of this section of the UDC are subject to the following penalties and fines:
a) First violation-- Notice of violation of Chapter 50.
b) Second violation within the preceding 12 months- citation for violation of a
Chapter 50.
c) Third violation within the preceding 12 months: $200 fine and the home share
permit shall be revoked for one year.
4. A permit holder may appeal the first and second violations to the Land Use Supervisor.
5. A permit holder may appeal the third violation to the Planning Commission.
6. Permit holder must post their Permit number on all print, poster or web advertisements;
7. Prior to rental, the building must be inspected and an Operational Permit issued by the
Fire Prevention office. Contact the Fire Prevention office at 218-730-4397 or 218-730-
4399 for information.
8. Permit holder must apply for and be granted State and local sales tax numbers,
including Hotel and Motel Use Sales Tax.
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'Airbnli Pits Neighbor Against Neighbor in Tourist-Friendly New Orleans-The New York Times Page 1 of 7
APR11 8
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B USINESS DAY
Airbnb Pits Neighbor Against Neighbor in
Tourist-Friendly New Orleans
By ROB WALKER MARCH 5,2016
Talk to the locals in certain New Orleans neighborhoods—from the historic and
genteel Garden District uptown to the dense and increasingly trendy Bywater
downriver—and you can be pretty sure that one topic will come up eventually:
Airbnb.
With crime, potholes and the Saints,the home-sharing economy has become one
of the city's default topics,bickered about in countless informal conversations,
through snarky signs ("Won't You B&B My Neighbor?") and increasingly in public
forums where city officials, and the citizenry, argue over what to do about it.
Everybody has an opinion. Some are distraught at revelers leaving"floors
covered with vomit" in residential buildings and"short-term strangers"squeezing out
long-term residents. But just as passionate are people who say renting rooms on
Airbnb has brought them enough cash to rehabilitate properties or cover the
mortgage after a layoff or after Hurricane Katrina.All of those arguments were made
in September at a planning commission hearing on the subject— a meeting that
lasted more than two hours despite a time limit on comments.
That hearing began a process that is supposed to resolve how to handle short-
term rentals in New Orleans. Blurring the lines between residential and commercial
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''Airbnb Pits Neighbor Against Neighbor in Tourist-Friendly New Orleans-The New York Times Page 2 of 7
land use, home-sharing platforms have created a unique and thorny regulatory
problem —a "hybrid"that"doesn't really fit into the typical boxes,"as Robert D.
Rivers, the executive director of the New Orleans planning commission, puts it. The
technology design that has disrupted the hospitality industry has also disrupted civic
life and public policy making.
Similar efforts to regulate home sharing are underway in Philadelphia; Portland,
Ore.; Austin, Tex.; and other municipalities where short-term rental sites like Airbnb
(said to be worth $24 billion) and HomeAway(which was bought by Expedia last year
for about $4 billion)have spurred disagreement. But the issue is amplified in New
Orleans, where tourism (which contributed an estimated $6.8 billion to the local
economy in 2014)butts against the pride residents take in the authenticity of their
neighborhoods.
Like some other cities, New Orleans has laws that make a lot of short-term
rentals illegal. In most circumstances, renting property for less than 3o days is
prohibited without a special permit that few individuals have obtained, and it is
punishable by fine or possibly jail time. But city officials acknowledge that New
Orleans simply does not have the resources to enforce this rule — given the 2,40o to
4,000 short-term rental listings on various services. Whether short-term rentals will
be permitted in some form is not in question; the numbers have already settled that.
It is up to the city to adjust accordingly, and figure out how they will be allowed.
Representatives of the larger home-sharing companies have met with New
Orleans officials,but they are seldom heard from in more public forums. Officials of
Airbnb and VRBO (Vacation Rentals by Owner, a HomeAway brand that is popular in
New Orleans) point out that they operate in so many places they cannot possibly get
into the specifics of local policy; they are merely private businesses offering services
to consumers. So it is up to New Orleans and other cities to devise their own
regulations, and up to users to follow them. The upshot is a curious mix of ubiquity
and absence: a public debate that seems to involve everyone except the parties who
started it.
For the time being, the platforms operate in "a regulatory Wild West,"wrote
Jeffrey Goodman, a New Orleans design consultant and self-described"planning
nerd,"in the February issue of the American Planning Association magazine
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`:Airbnb Pits Neighbor Against Neighbor in Tourist-Friendly New Orleans-The New York Times Page 3 of 7
Planning.And while cities scramble to adjust, Mr. Goodman wrote,these companies
"make money without proper oversight and without proper accountability."
The surprise is that, despite the bickering and contention,the various
constituencies in New Orleans have a lot of common ground. Even the most ardent
proponents of short-term rentals agree that the practice should be regulated: There
ought to be mechanisms to collect taxes,restrict the density of short-term rentals in
certain areas, and deal with absentee owners who offer property for rent and allow
rowdy guests to become neighborhood nuisances.
The trick is that the most efficient way of achieving those ends might require the
services to change how they operate.A technological fix that would permit only
licensed owners to list their properties online, for example, could satisfy many
complaints. But the services have been unwilling to pursue those possibilities. So New
Orleans will have to find another answer.
'A Rogue Hotel'
Rob White lives in the French Quarter. Thick with 18th-century structures, the
dense grid is the oldest neighborhood in New Orleans and its biggest tourist magnet.
New hotels or bed-and-breakfasts have been tightly restricted or banned for many
years, to preserve some degree of the residential character that is part of the
attraction. Regulations for short-term rentals are even tighter here (nothing under 6o
days, in theory),but the online services have provided an easy workaround to that
rule, in Mr.White's view. He says it seems that he is the only full-time resident on his
block. "You know who comes in and out of there?"he said at a community meeting
about a condominium building nearby. "People with their luggage."The tourists roll
in on Thursday or Friday and roll out a few days later. "It's a rogue hotel,"he
complained.
Mr. White is a member of the Short-Term Rental Committee, not an official city
entity,but a vocal coalition of preservationists, neighborhood activists, owners of
traditional bed-and-breakfasts and residents of various historic New Orleans
neighborhoods. Its criticism of short-term rentals predates the rise of home-sharing
services,but it has become steadily louder since Airbnb's arrival in the city in 2009,
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and it has included bitter complaints about the city's failure to enforce the relevant
code,which dates from the 1950s.
Deputy Mayor Ryan Berni concedes that enforcement of the short-term rental
law has been "lax and difficult." Listings on home-sharing platforms do not reveal
specific names and addresses, and identifying and building cases against violators
would involve considerable time and money,city officials say. In fairness, New
Orleans,like most cities, has more urgent priorities —including an understaffed
police force and road and infrastructure problems that would cost billions to fix. "We
just didn't feel like we had the tools to do it," Mr. Berni said.
Stopping scofflaws would be easier if the services identified those using their
tools to break the law, an argument made by critics of short-term rentals.
Representatives of Airbnb and VRBO counter that turning over such information
would violate their users'privacy.A VRBO spokesman says that its users essentially
pay to advertise a property, and the platform is not directly involved in resulting
transactions. Mr. Rivers, of the planning commission, and a former lawyer for the
city, says it is not even clear that the city has the legal standing to demand such
information, and that ultimately it needs a solution involving its own data.
In recent months,Airbnb has released limited information about use of its site.
For instance, it says that 92 percent of New Orleans's hosts booked property for fewer
than 18o days in the previous year, a statistic that suggests users are regular people
occasionally supplementing their income. But this data release left out other
important numbers —such as listings per host,which might have illuminated the
multiple-property power users who may account for significant booking volume.
Mr. Goodman, the New Orleans consultant,has followed the wrangling over
short-term rentals in New Orleans for a couple of years, meeting with a number of
city officials — and,briefly, working as a contractor for Airbnb. He has gradually
become more frustrated with the dearth of official information. In New York City,
similar frustration led the state attorney general to apply legal pressure to obtain
more detailed data on Airbnb hosts as part of an effort to crack down on illegal home
sharing. Mr. Goodman notes that Airbnb promotes itself as an enabler of human
connection and community,but leaves compliance with local laws to the users and
regulators.
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Airbnb declined to comment in detail about specifics of the debate in New
Orleans. But Max Pomeranc, an Airbnb public policy manager whose focus includes
New Orleans, responded to criticism about compliance with local laws by saying that
its service is available in 34,000 municipalities around the world, making deep local
involvement everywhere impractical. Mr. Pomeranc also noted that anyone signing
up to be a host in New Orleans encounters a "Responsible Hosting"page encouraging
compliance with local laws and various links to official city sources.
For a study intended to guide local policy makers, the New Orleans City Planning
Commission ultimately relied in part on data from Inside Airbnb and the New
Orleans Short Term Rental Report—third parties that have "scraped"Airbnb's site to
approximate the geographic distribution, use rate and other more detailed data.
Inside.Airbnb asserts, for instance, that more than 44.7 percent of New Orleans
listings involve hosts promoting more than one listing; some offer io or more. It also
concluded that 210 out of 2,646 listings are in the French Quarter.The sharing
services invariably criticize such sources as unreliable. But they have yet to release
parallel data of their own.
The License Debate
People have been taking in lodgers in New Orleans "for 30o years," Christian
Galvin points out. Mr. Galvin rents out a house in leafy uptown New Orleans year-
round. In fact, he is a"superhost"on Airbnb, meaning he has many positive ratings
from guests, and he is a member of the board of Alliance for Neighborhood
Prosperity, a local group that promotes short-term rentals.
Even the alliance, a relatively sophisticated operation that is financed by dues
and has its own lawyers, favors regulation. Mr. Galvin said the group expected that
developing rules to legalize short-term rentals would take seven or eight months.
"Just tax it, and let's go about our day,"he said. "Why is it dragging on?"
The answer to that might be apparent in the 118-page draft study the planning
commission released on Jan. 19. The document painstakingly breaks down the
varieties of short-term rentals and suggests solutions like restrictions by
neighborhood density(preservationists favor a total ban in the French Quarter) or
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other factors(restricting year-round, non-owner-occupied rentals, of the sort that Mr.
Galvin operates, in residential areas). It will take months to sort out the details. The
latest twist is the consideration of a state bill to require short-term rental services to
collect the same taxes as hotels and motels. But if the third-party data on short-term
rentals is remotely accurate, and something like the planning commission's
preliminary recommendations became enforceable laws,listings and bookings for
these sharing platforms would probably decline.
Despite the polarization around the issue, many, including lawyers for the
Alliance for Neighborhood Prosperity,have endorsed a simple-sounding idea: require
short-term rentals to obtain some sort of official license or permit number(for a fee)
and enter it in a field on the web. Enter your license number, or you are not permitted
to list. Mr. Goodman,the planning activist, agreed that the platform databases were
"the choke point in the system," and tweaking them to function only with a municipal
license would amount to a genuine partnership with cities. "It requires the city to
keep a good database, and these listing companies to honor that database,"he said.
For the home-sharing services,however,this appears to be a nonstarter.
According to Mr. Rivers,Airbnb and VRBO told his staff that it would be too onerous
to adjust their software to accommodate every regulatory arrangement for thousands
of municipalities around the world. Spokesmen for Airbnb and VRBO confirm that
rewriting their platforms in this way is not practical.
The planning commission seems to have accepted that argument,and its study
recommends instead that license information, with the address of an advertised
property, should be included in the "narrative"section of a listing. To critics, that
means people without licenses could still rent, and it would still be up to the city to
ferret out those who do not follow the rules. In the few cities that have enacted
analogous policies, compliance has been estimated at less than 15 percent.
Mr. Berni,the deputy mayor,while emphasizing that the planning commission
report is merely a starting point, says this recommended strategy has potential.
Compliant users paying for licenses could generate revenue to begin funding
enforcement. Going after a"bad operator"is a complaint-driven process, he says, and
a listing that lacks a license number could give the city cleaner legal leverage.
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' M
Perhaps that will work. Even Mr. Goodman expresses optimism. He notes that
Airbnb in particular seems to be moving toward accepting that it is not just a
responsibility-free enabler— adding more robust insurance options and, increasingly,
tax-collection tools. So maybe all the local contention will lead to a productive
resolution after all. "I just want to have New Orleans win on this," Mr. Goodman says.
Correction:March 7, 2016
An earlier version of this article rendered incorrectly part of the name of a
group that supports short-term rentals. It is the Alliance for Neighborhood
Prosperity, not the Alliance for Neighborhood Progress.
A version of this article appears in print on March 6, 2016, on page BM of the New York edition with the
headline: A City Weighed Down by the Welcome Mat.
0 2016 The New York Times Company
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6. Public parks and playgrounds.
7. Essential services.
8. Radio and television antennas including single satellite dish TVROs one (1) meter
or less in diameter, short-wave radio dispatching antennas, or those necessary for
the operation of household electronic equipment including radio receivers,federally
licensed amateur radio stations and television receivers, as regulated in Section
401.15.P of this Ordinance.
26 9. Solar energy systems, ground source heat pumps and wind energy systems as
regulated in Section 401.17 of this Ordinance.
401.22.E. Conditional Uses. The following are conditional uses in an R-1 District.
(Requires a co • '• - = it based upon procedures set forth in and regulated by
Section 401.03 of this Ordinance.)
1. Public or semi-public recreational buildings and neighborhood or community
centers, public and private educational institutions limited to elementary,junior high
and senior high schools; and religious institutions such as churches, chapels,
temples and synagogues provided that:
a. Side yards shall be double that required for the district, but no greater than
fifty (50) feet.
b. Adequate screening from abutting residential uses and landscaping is
provided in compliance with Section 401.15.E. of this Ordinance.
c. Adequate off-street parking and access is provided on the site or on lots
directly abutting across a public street or alley to the principal use in
compliance with Section 401.15.F. of this Ordinance and that such parking is
adequately screened and landscaped from surrounding and abutting
residential uses in compliance with Section 401.15.E. of this Ordinance.
d. Adequate off-street loading and service entrances are provided and
regulated where applicable by Section 401.03.F of this Ordinance.
e. The provisions of Section 401.03.A.8 of this Ordinance are considered and
satisfactorily met.
2. Water supply buildings, reservoirs,wells, elevated tanks and similar essential public
utility and service structures.
103. Bed and breakfast facilities providing that the following criteria are met. For the
...* purpose of this Ordinance, bed and breakfast units shall include those rooms that
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are provided to transient guests for compensation, but not including those rooms
used by the owner occupants:
a. A maximum of six (6) bed and breakfast units may be established within a
structure, unless as noted in item b, lot size would allow for more, but not to
exceed a maximum of ten (10) units.
b. The parcel on which the bed and breakfast is located shall accommodate at
least three thousand (3,000) square feet of lot area per bed and breakfast
unit inclusive of the owner-occupants' living quarters.
c. The facility shall have a State issued license for lodging and food service,
and comply with and maintain all health, safety, building, and fire codes as
may be required or applicable.
d. The fee owner shall be in residence of the structure and shall maintain same
as their homestead and demonstrate that the structure is in part classified as
homestead for tax purposes.
e. All bed and breakfast units shall be established within the principal structure.
f. The original principal structure used for the bed and breakfast shall have a
minimum size of one thousand seven hundred fifty(1,750)gross square feet.
g. No bed and breakfast facility shall be located closer than at least nine
hundred(900)feet from other bed and breakfast facilities as measured from
property lines.
h. Any structure proposed to be used for a bed and breakfast must have
historic significance. Historic significance is demonstrated by:
1) Structures that are on the National Register of Historic properties and
are substantially intact.
2) Structures that are at least eighty (80) years of age and are
substantially intact.
3) Structures that can demonstrate historic significance as determined
by the City Council.
i. No more than the equivalent of two (2) full time persons shall be employed
by the bed and breakfast facilities who are not residents of the structure.
j. Dining and other facilities shall not be opened to the public but shall be used
exclusively by the residents, registered guests of the facility, or guests of a
meeting held at the facility.
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k. The owner-occupant of the bed and breakfast shall be allowed to host small
groups and meetings if the facility contains at least one thousand (1,000)
square feet of area for this purpose as well as a commercial kitchen that
complies with all health, safety, and building code standards. Groups and
meetings shall be limited to no more than two (2) persons per bed and
breakfast unit. The owners of a bed and breakfast may request a permit for
special events that will exceed the two persons per unit limit requiring
submittal of an application and consideration of approval by the Community
Development Director.
I. Two (2) off-street parking spaces shall be provided for the facility plus one
(1) for each bed and breakfast unit. Parking areas shall be screened and
landscaped and no parking space shall be located in the front yard of the
property, other than on an existing driveway. The parking areas shall be
improved with asphalt, but shall be exempt from other commercial parking
requirements of the Zoning Ordinance.
12 m. All signing and informational or visual communication devices shall be in
compliance with Section 401.15.G of this Ordinance.
n. Adequate lighting shall be provided between the principal structure and the
parking area for the safety of guests. All external lighting shall be regulated
by conditional use permit.
o. All bed and breakfast conditional use permits shall be reviewed annually by
the Community Development Department. If violations of City ordinances,
Building Code, or conditions of approval are found, the Community
Development Director shall schedule a public hearing of the Planning
Commission to consider the conditional use permit and conditions. Upon a
Planning Commission recommendation, the City Council may make
adjustments to or cancel the conditional use permit.
p. The provisions of Section 401.03.A.7 of this Ordinance are considered and
satisfactorily met.
4. Residential planned unit development as regu • by Section 401.06 of this
Ordinance.
5. Single satellite dish TVROs greater =n o - (1) meter in diameter provided that:
a. The provisions of Section 401.0 .8 and Section 401.15.P of this Ordinance
are considered and satisfacto -t.
6. Cellular telephone antennas not I. ted on - public structure provided that:
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Automobile Repair-Minor: Installation, including cellular telephones, audio
systems, and minor repairs, upholstering, replacement of parts (tires, glass, etc.)
and minor motor services to passenger automobiles and trucks not exceeding
twelve thousand (12,000) pounds gross weight, but not including any operation
specified under"Automobile Repair-Major".
Automobile Wrecking or Junk Yard; Any place where two (2) or more vehicles
not in running condition and/or not licensed, or parts thereof, are stored in the open
and are not being restored to operation or any land, building or structure used for
wrecking or storing of such motor vehicles or parts thereof; and including any
commercial salvaging and scavenging of any other goods,articles or merchandise.
Awning: A temporary hood or cover which projects from the wall of a building, and
of a type which can be retracted, folded or collapsed against the face of a
supporting building.
Basement: That portion of a building between floor and ceiling, which is partly
below and partly above grade, but so located that the vertical distance from grade to
the floor below is less than the vertical distance from grade to ceiling (see Story).
Bay: Cantilevered area of a room.
Bed and Breakfast Facility: A building other than a hotel, wherefore
compensation, meals and lodging are provided to transient guests, but not including
a building providing these services to more than ten (10) persons, and where at
least one(1) meal and/or beverages are offered in connection with the provision of
sleeping accommodations.
Block: A tract of land bounded by streets, or a combination of streets and public
parks, cemeteries, railroad rights-of-way, shorelines,waterways, or boundary lines
of the corporate limits of the City.
Boarder: One who receives regular meals and/or regular meals and lodging for
pay.
Boarding (House) Home-Foster Children: A family dwelling where children out
of their own homes are cared for.
Boarding House: A building other than a hotel where, for compensation and by
prearrangement for definite periods, meals or lodging and meals are provided to five
(5) or more persons, not of the principal family therein, pursuant to previous
arrangements and not to anyone who may apply, but not including a building
providing these services for more than ten (10) persons.
Boundary Lines: Any line indicating the bounds or limits of any tract or parcel of
land; also a line separating the various use districts as shown on the City's Zoning
Map.
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