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Home My WebLink About06-16-15 Goetz, Vacation Homes - Public CommentJames Il, CoetzRobert K. BaldwinJ. Devlan GeddesTrent M. GardnerBenjarnin J. Alkel(yle W. NelsonJeff 'l'ierneyPaul S. BLlrdettGOE't'.Z, BALDWIN & GBDDES, P. C.Attorneys at Law35 North Grand (zip 59715)P. O. Box 6580Bozeman, MT 59771-6580'l'elephone(406) 587-06t8Facsimile(406) s87-s144i!:r@gqç1¿hw.!!L!a.uJune 1 6,2016Via E-MailMayor Carson TaylorDeputy Mayor Cynthia AndrusCommissioner Chris MehlCommi ssioner Jeff KraussCommissioner I-Ho PotneroyRe: Conditional Use PermitsDear Mr. Mayor and Commission Members:I write this letter f'or consideration by the City Cornmission at its meetingscheduled for June 27tl'. I write on behalf of Jill Davenporl and me. We live in anR-1 single-fuinily residential neighborhood at 1019 S. 3'''r.My understanding, from the rneeting of May 16tl'and its rninutes is that theComrnission asked the staff to "put an emergency ordinance on a future agenda"on this issue. Section 76-2-306, MCA, provides the authority for "interim zoningordinances." The City may adopt an interim zoning ordinauce without followingtlre procedures otherwise required for adoption of an ordinary zontng ordinance.As Cornrnissioner I(rauss made clear at the meeting, this issue of short-term reÍìtalsin violation of R-1 and R-2 zoning is an urgent tnatter f.or the City. We thereforesupporl any effort to adopt an interim zoning ordinance, followed by a permanentone which would address the short-term rental concern.As was evident at the May 16th City Commission hearing regarding aconditional use permit for a shoft-term vacation rental at 304 West ClevelandStreet, there are various problems which threaten to destroy the single-familyresidential quality of our neighborhoods. There are akeady numerous illegal short- term rentals occurring under the radar. They need to be curbed. I attach an OP-EI)piece published in the Bozeman Daily Chronicle Tuesday, June 7,2016. Thissuccinctly expresses our position.First, the conditional use exception for short-term rentals in R- 1 areas shouldbe elirninated. Shorl-terrn vacation rentals are simply inconsistent with the R-lstandard. Further, there are no concrete guidelines to guide this Commission inmaking its decision.More irnportant, the Commission should adopt a broad ordinance dealingwith scofflaw violators of our R-1 and R-2 neighborhoods, particularly by thoseusing Airbnb and VRBO's.Although an exception rnay be appropriate for accessory dwelling unitswhere the owner is present and permanently resides in the main dwelling, otherexceptions should not be allowed. The main threat of shoft-term vacation rentals iscongestion, parking, noise, fireworks, and general disregard of neighborhoodvalues. If the owner remains present, that darnpens potential abuse.Fufther, the Commissioners must address the growing threat in Bozeman ofentities buying up houses in R-1 and R-2 neighborhoods for the sole purpose ofvacation rentals. Such trend undermines the City's goal of achieving affordablehousing, and threatens the supply of long-term rentals.As I suggest in my OP-ED piece, various jurisdictions, including SanFrancisco, have adopted ordinances requiring hosts to be permanent residents andnatural persons. I believe the same should be done here. The problem ofcorporations and LLCs buying up houses for shorl-term rentals needs to bestopped.Finally, I believe an ordinance with some teeth in it should be adopted tohold international companies, such as Airbnb accountable 1'or zoningviolations. Ifthey choose to do business in the state, they are subject to our laws. [@cmru ffie fumime*wnaffiæ mwåw ffi wm#dwffiümreeffie''ã, Short-term rentals threaten city neighborhoodsi,,-.,1 ::¡'\i,¡r-/t<{'r** i u+'r< ByJIM GOETZ Guest columnist One of the many great things about ¡ozein""n is the quality of its residen- tial neighborhoods. Theintegrity of these neishbor_ hoods was, we thougit, well protected by Bozeman's R-l zoning code designed'Io provide for primaiily single-househoîd residen- tial development..." That is now being threatened by the rncreasing incidence of short-term vacation rentals. The Bozeman zonino code forbids sh;;-i;ti rentals (defined as fewer than 3O-days) in R-t and R-2 neighborhoods unless a conditional use permit is granted, but few properry owners have bothered to comply. -With the increasing use of mternet applications such as Ærbnb and VRBO many properties in our neighbor_ hood are being renteä for short-term vacation use under the radar. Alarm- ingly, single-family homes in our neighborhoods are now beiag purchased for the sole purpose ofvacation rentals. This is not unicue to Bozeman. For examf,le, a 2014 report by the New york Attorney General addresses concerns that private short- term rentai units in New York City are not only serv- ing as illegal hotels, but are also displacing long-term rental housing and signifi- cant.[y reducing the supply of affordabie houiing. ThË re- port identifies 12 buildings in th_e-boroughs of Brooùyn. and Manhattan that have át least 60 percent of the units dedicated to private short- term rentals, s-uggesting they operate as de facto hotãls. . The¡e is a separate prob- .tem of evasion of business and bed taxes. Some iuris-dictions, such as porúand and San Francisco and North Carolina, have forced Airbnb ro wirhhold and pay these taxes. Others, lnchidj ing Montana, have not-yet. Because this trend threat_ ens the integrity of Boze- man's beautiful neighbor- hoods, rhe ciry mult take action. First, Bozeman shouid follow the lead of otherjurisdiction such as Flathead County and élhinate the conditional-use exception in R-1 and R-2 neighboihoods. Given threats of noise, con- gestion, parking problems, and rowdy behavior, vaca- tion rentals have no place in residential neighborhoods. . Further, the city has no concrete standards on which to judge the propriety of granting a conditional usepermit. Some commission- ers admitted as much last month when they granted avacation rental application for one year. Some will say the city lacks sufficiení enforce- ment tools and staff topatrol these admittedly- illegal rentals. Howevér, enforcement mechanisms pioneered in other cities should be considered. For starters, if international internet companies such as Airbnb and VRBO aregoing to do business in this city and state, they shouid be made subf ect tô our laws. Right now, Airbnb turns a blind eye to zoning rules, urging iti hosts to check their city regulations, but not insuring this is done. An appropriate fine, increasing with successive violations, and potential in_junctive reiief will get these companies' attention. The city cleariy has the authority just to say "no,' to short-term rentals in residential areas. Over 20 years ago, a California court in Ewing v. City of Carmel- By-The-Sea upheld a ciry ordinance which prohibited rental of residentiãl property for fewer than 30 days, stat- ing courts have "long recog- nized that maintenañce of" the character of residential neighborhoods is a proper purpose of zoning." Short-term tenãnts have little interest in public agencies or in the welfare of the citizenry. They do not participate in local govern- ment, coach little league,... otSggp an-eye on an elderly neighbor. Literally, they are here today and góne tornor-row-without engaging in the sort of activities that weld and strengthen a com-muniÇ. The issue may be more complicated wiih respect to"accessory dwelling únits', such as detached aþartments over garages> which are now allowable conditional uses under the zoning code. San Francisco, portlaid, Oregon, Amsterdam and Berlin have paved the wayon regulations. I suggest, atmtnlmum, hosts who rent accessory units must:r Occupy the primary residence for at lèast 27'5 days ofthe year;r Have $500,000 in liabil_ity insurance coverage;r Obhin a busineðs license and permit from the city-so the cit¡ can keep track of the number and ^ concentration of properties occuptecl by transient guests;r Maintain a residence free ofbuilding code viola- tions; _ . Bg natural persons (San tsranctsco, for example, requires hosts to beberma_ nent residents and nãtural persons and does not aliow commercial enterprises to enter into the short-term rental market).r Pay their own way through a reasonable'i-p".t fee to fìnance the city's mon-itoring and enforcement;¡ Limit the number of guests.to two per sleeping room (e.g. Nashville, Ten- nessee). In addition, the interna- tional rental companies such as Airbnb must bè required to contract with their local hosts to insure compliance and to collect and remit lo- cal taxes. lirrt Goetz, q lawyer and his wife lill DavenþorL own and occupy ø síngle-family house within an R-I district in Bozeman.