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HomeMy WebLinkAbout08-08-16 Black, Vacation Rentals - Public Comment1 Pearl: Please find attached a copy of my notes and suggested amendments to the recommended motion and draft of Ordinance No. 1958 before the Commission this evening. In case you are wary of opening attachments, I enclose a copy below... but it's more difficult to read. Thanks, Bob Black August 8, 2016 MEMORANDUM prepared by Robert Black, 74, owner of 1021 O’Connell Drive, Bozeman, MT 59715, a short term owner occupied rental operating since March, 2016, as an Airbnb without a business license or a Conditional Use permit in an R-1 zoned residential neighborhood not governed by an HOA. Income is essential toward mortgage payments on a VA home loan. • 1021 O’Connell is a short term owner occupied rental (STOOR), rented through Airbnb, that rents no more than two bedrooms at a time, maximum of five guests per night, for an average stay of one night. • Short term rentals (STRs) as discussed in Commission Memorandum 7/18/16 and 8/8/16 are not inclusive of short term owner occupied rentals (STOORs). • Short term owner occupied rentals (STOORs) are quite different from short term rentals (STRs), extended stay lodging and other similar uses such as vacation rentals which are subjects of the Recommended Motion and draft of Ordinance No. 1958. • Unlike the owner of a STOOR, the owner of a STR who has a room to rent is not required to occupy the home at the time of the rental. • A STOOR is, above all, a residential use (p. 2/732, Memo 8/8/16). Guests are roommates. • 1021 O’Connell is covered by USAA for homeowner and liability insurance. • Pursuant to mortgage terms with the Department of Veterans Association (VA home loan), owner lives at 1021 O’Connell Drive as his primary residence and resides there full time whether rooms are rented or not. • Guests are vetted by Airbnb which assists cities in setting up procedures to collect and remit taxes. I. Suggested amendment to the RECOMMENDED MOTION as proposed to the City Commission of the City of Bozeman, Montana, at the public hearing on August 8, 2016. 2 ADD: “Short term owner occupied rentals are not included in this motion and, therefore, may continue to operate subject to City regulations, such requirements to have a business license, a conditional use permit, and record of compliance with health and safety regulations, and to pay taxes collected and remitted by Airbnb.” II. Suggested amendments to ORDINANCE NO.1958 as proposed to the City Commission of the City of Bozeman, Montana, at the public hearing on August 8, 2016. ADD as a final “WHEREAS”: “WHEREAS, short term rentals or STRs or extended stay lodging and any other similar use such as a vacation rental are, by definitions set forth above in the herein proposed interim ordinance, not inclusive of short term owner occupied rentals or STOORs, the critical element of “owner occupied” being omitted in the definitions, this Interim Zoning Ordinance is inapplicable to short term owner occupied rentals or STOORs, which STOORs include discrete single family occupied homes in R-1, R-2, R-3, and NEHMU residential zoning districts in which the owner lives full time as his primary residence during any and all periods of rental of such space as no more than three rooms.” III. Suggested additional Alternative, in bold, underlined, below, to those made by City counsel (Memo, 8/8/16, p. 3/730, p. 5/735) at the public hearing on August 8, 2016. “ALTERNATIVES: As suggested by the Commission. Should the Commission wish to consider an exception to allow applications for a conditional use permit for an extended stay lodging facility that have been deemed adequate for review to be reviewed on its merits the Commission should consider adding the following to the end of Section 9 of Ordinance 1958: 3 “Notwithstanding the foregoing, this Ordinance does not apply to conditional use permit applications received and determined by the City to be adequate for review pursuant to 38.19.090.D, BMC, prior to the effective date of this Ordinance [ADD] or to STOORs, pursuant to grant of a conditional use permit and/or business licence and proof of taxes collected and remitted by rental agency such as Airbnb to the City of Bozeman.” IV. Other issues raised by City: Impacts of STRs Nuisance Complaints: • Although irrelevant to STOORs, the memo from Deputy Chief Rich McLane, dated July 5, 2016, indicates that fears of nuisance complaints from STRs are unwarranted. Deputy Chief McLane addresses owner occupied homes: “A vast majority of the calls are similar to those we receive whether the home is a vacation home or owner occupied.” Neighborhood Vitality: • Empty homes are never a problem with STOORs which are always occupied full time. A STOOR is not an unoccupied second home or a dark home. Housing Availability: • STOORs by definition are not dark homes. In the case of the STOOR at 1021 O’Connell, the requirement of owner occupied is consistent with mortgage terms binding the owner to restrictions promulgated by the United States Department of Veteran Affairs (VA home loan). V. Also: 4 • Allow subject rentals to remain open during study period. City cannot study what will not exist after August 8, 2016 if moratorium imposed. • Allow bookings to be honored if made before August 8, 2016.