HomeMy WebLinkAbout23- Ordinance 2131 - Generally Revise Regulations of Short Term RentalsOrd 2131
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ORDINANCE 2131
AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OF BOZEMAN,
MONTANA TO GENERALLY REVISE BOZEMAN MUNICIPAL CODE SECTION
38.360.260 – SHORT TERM RENTALS TO INCLUDE REGULATION OF HOSTING
PLATFORMS THAT FACILITATE BOOKING TRANSACTIONS OF SHORT TERM
RENTALS AND REVISE ADMINISTRATIVE PROVISIONS
WHEREAS, the City of Bozeman (the “City”) has adopted land development and use
standards to protect public health, safety and welfare and otherwise execute the purposes of
Montana Code Annotated §§ 76-1-102, 76-2-304, 76-3-102, and 76-3-501; and
WHEREAS, pursuant to the Bozeman City Charter, the City of Bozeman has adopted
and is hereby relying upon its self-government powers recognizing pursuant to Montana law
such self-government powers must be liberally construed in favor of such power; and
WHEREAS, after proper notice, the Community Development Board in their capacity as
Bozeman Zoning Commission held a public hearing on June 5, 2023 to receive and review all
written and oral testimony on the proposed amendments; and
WHEREAS, the Community Development Board acting in their capacity as the Bozeman
Zoning Commission recommended to the Bozeman City Commission that Ordinance 2131, be
approved as proposed; and
WHEREAS, after proper notice, the City Commission held its public hearing on June 27,
2023 to receive and review all written and oral testimony on the proposed amendment to the land
development regulations; and
WHEREAS, the City Commission has reviewed and considered the applicable
amendment criteria established in Montana Code Annotated § 76-2-304, and found that the
proposed amendments are in compliance with the criteria.
NOW THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF THE
CITY OF BOZEMAN, MONTANA:
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Section 1
Legislative Findings
The City Commission hereby makes the following findings in support of adoption of this
Ordinance:
1. The Montana Constitution, in Article XI, § 4 mandates to liberally construe the powers of
incorporated cities, and Article XI, § 6 of the Montana Constitution expressly authorizes a local
government with self-government powers to exercise any power not prohibited by the constitution,
law, or charter.
2. The City has adopted land development and use standards to protect public health, safety and
welfare and otherwise execute the purposes of Montana Code Annotated §§ 76-1-102, 76-2-304,
76-3-102, and 76-3-501.
3. The City adopted Ordinance 1974 in November 2017 placing restrictions on short-term rentals.
The City is aware that a significant portion of short-term rentals within the City are not currently
in compliance with adopted regulations. Requiring information from hosting platforms is
demonstrated by other communities to enhance compliance and the City Commission finds doing
so is reasonably related to assuring compliance with the City of Bozeman’s short term rental
regulations.
4. The City Commission approved The Bozeman Community Housing Action Plan on November
18, 2019, which was amended on January 13, 2020. The Action Plan recommends on-going
evaluation of regulatory policies including: prohibiting or limiting the use of homes for short-term
rentals in specified neighborhoods or zones; placing resident-occupancy requirements on units that
are rented short-term (e.g. rent bedroom only, ADU and primary home cannot both be an STR,
etc); requiring an owner to register the short-term rental and authorizing the city to charge fees; or
other options.
5. On August 9, 2022, the Bozeman City Commission held a work session to discuss short term
rentals and their influence on the local housing market and affordability. The City Commission
directed staff to draft an Ordinance regulating short term rental online booking platforms as one
measure to increase compliance with existing regulations, to require regular reporting to obtain
more information about short term rentals in Bozeman.
6. City staff prepared a report analyzing the required criteria for an amendment to the City’s
regulations for zoning review, including the amendment’s accordance with the BCP 2020, and
found that the required criteria of Montana Code Annotated § 76-1-304 are satisfied.
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7. The City Commission determines that the ordinance provides a proper balance of interests,
rights, and responsibilities of all parties affected by the ordinance.
Section 2
That Section 38.360.260 of the Bozeman Municipal Code be amended as follows:
Sec. 38.360.260. Short term rentals.
A. Purpose and intent. The purpose of this article section is to provide for the regulation of short term rentals in certain zoning districts within the city in order to preserve neighborhood character and promote a supply of long term rental housing stock, while encouraging economic activity and diversity, and to promote public health, safety, and
welfare.
B. Applicability.
1. The provisions of this article section apply only to transient occupancy of a short term rentals as defined herein.
2. This article section does not apply to any rental of a dwelling unit which is governed
and defined by The Montana Residential Landlord and Tenant Act of 1977 (Landlord
Tenant Act). This article applies only to transient occupancy of a short term rental as defined herein.
3. A lower-priced or moderate-priced home subject to and defined by chapter 38, article 380, or a dwelling that received financial support from the city, including but not
limited to down payment assistance, impact fee payment, or other consideration
including affordable units developed using regulatory incentives, infrastructure prioritization or assistance or a financial subsidy, may not be used as a short term rental until such time as either the lien instrument against the property in favor of the city securing the amount of such subsidy has been released and the release recorded
with the Gallatin County Clerk and Recorder's Office or the expiration of an applicable
affordability covenant. The prohibition on use as a short term rental under this subsection will continue until the later of a lien release or expiration of an affordability covenant.
C. Definitions. For purposes of this article, the following definitions apply:
1. Booking transaction means any reservation or payment service provided by a hosting
platform that facilitates a short term rental transaction between an owner and a transient occupant.
12. Hosting platform means a person or entity that provides a means through which an owner may advertise and offer for rent a short term rental to the general public.
participates in the short term rental business by collecting or receiving a fee directly or
indirectly for any booking transaction through which an owner may offer a dwelling unit or portion thereof for transient occupancy. Hosting platform includes but is not
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limited to an online service and an individual using any other means to collect or receive a fee on behalf of an owner for a transient occupancy of a short term rental.
23. Owner includes any part owner, joint owner, tenant in common, joint tenant, tenant by the entirety, or lessee with exclusive possession under a valid long-term lease or rental
agreement.
34. Owner-occupied means the owner provides the city evidence the owner occupies the dwelling as his or her principal residence for more than 50 percent of the calendar year.
45. Operate, oOperation of, or operating a short term rental means the short term rental has been rented by or on behalf of the owner to the general public for compensation for
transient occupancy. “Operate” "oOperation of" or "operating" a short term rental does
not include mere advertisement of or offering to rent short term rental(s).
56. Responsible person means the person responsible for addressing all maintenance, nuisance, and safety concerns related to a short term rental.
67. Short term rental is defined in article 7 of this chapter.
78. Transient occupancy of a short term rental means occupancy which has the following
characteristics:
a. The period of occupancy is less than 28 consecutive days, and
b. The renter has a principal residence other than the short term rental., and
c. The short term rental is furnished with personal property necessary to make the
unit ready for immediate occupancy by the renter.
D. Short term rental classifications. Short terms rentals are classified as:
1. Type-1: A short term rental of one or more bedrooms in an owner-occupied dwelling while the owner is occupying the same dwelling unit for the entire rental period.
2. Type-2:
a. A short term rental of an owner-occupied dwelling if the owner is not occupying the dwelling during the entire rental period.
b. A short term rental of a permitted accessory dwelling unit (ADU) whether or not the ADU's owner is present in the primary dwelling unit during the rental period.
c. A short term rental of one dwelling unit within a duplex whether or not the
duplex's owner is present in the duplex's other dwelling unit during the rental period.
3. Type-3: A short term rental that is not owner-occupied.
E. Where allowed. An owner may operate a short term rental in all zoning districts where such use is authorized in Chapter 38, articles 8-11 and 14 subject to the requirements of this
article chapter.
F. Compliance with laws.
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1. In addition to the provisions of this article chapter, the short term rental owner must comply with all other applicable local, state and federal laws, including but not limited to city parking regulations, including time limitations and ADA parking restrictions; lodging facility use tax and accommodations sales tax regulations; health department
permitting requirements; the Americans with Disabilities Act; fair housing laws;
building codes and fire codes, and the non-discrimination provisions in chapter 24, article 10. Loss of any required permit or license will result in revocation of the short term rental registration in accordance with subsection J of this section.
2. Compliance with all applicable laws and regulations is the sole responsibility of the
owner. and cCity approval of an application for short term rental registration in no way
waives or transfers to the city such responsibility. In addition, the owner is solely responsible for verifying the use of a property as a short term rental is compatible with insurance and mortgage contracts, home owners' association covenants, rental agreements and any other contracts which govern the use of the property.
G. Administration. The director will collect all registration permit fees and will issue
registrations permits and renewals thereof in the name of the city to all persons qualified under the provisions of this article chapter and has the power to:
1. Make rules. The director will promulgate and enforce all reasonable rules and regulations necessary to the operation and enforcement of this article section.,
including, but not limited to, providing alternative means to comply with hosting
platform reporting requirements of 38.360.260.J.2 by maintaining an online tool accessible to the City that includes all required data. All rules are subject to city commission review and modification.
2. Adopt forms. The director will adopt all forms and prescribe the information to be
given therein.
3. Obtain approvals. The director will submit all applications to interested city officials for their approval as to compliance by the applicant with all city regulations which they have the duty of enforcing.
4. Investigate. The director will investigate and determine the eligibility of any applicant
for a short term rental registration permit as prescribed herein.
5. Examine records. The director may examine the books and records of any applicant when reasonably necessary to the administration and enforcement of this article section. The city may issue administrative subpoenas as necessary to obtain information regarding a short term rental or booking transaction.
6. Give notice. The director shall notify any applicant of the acceptance or rejection of the application and will, upon the director's refusal of any registration, permit and at the applicant's request, state in writing the reasons for the denial therefor and deliver it them to the applicant.
7. Record keeping. The director will maintain at all times a record of registered permitted
short term rentals, including the full name of each registrant permittee, the address at which such short term rental is operated, the date of issuance, the fee paid therefor, the
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telephone and address of the applicant, and the time such registration permit will continue in force effect.
H. Registration Hosting Permits. The following requirements apply to all short term rentals registrations permits unless otherwise noted.
1. General. It is unlawful for any person to operate within the city a short term rental
without having first obtained approval for a registered the short term rental permit with the department of community development. A separate permit registration shall be required for each short term rental. Approval of a short term rental application results in the city issuing a permit for the short term rental.
2. Application; submittal materials. The applicant must complete and submit an
application for a short term rental registration permit to the department of community development using a form provided by the city. The form will include an acknowledgement and agreement the short term rental meets and will continue to meet the definition of short term rental classification (Type-1, Type-2, or Type-3) during the
registration permit term. Before the application will be accepted by the director, the
applicant must provide:
a. The name, telephone number, address, and email address of all property owners and of the responsible person, if different. If the property owner is a business, the name(s) and contact information of all business owners must be provided.
b. The Montana Department of Revenue tax registration number for the short term
rental.
c. A sketch plan with a description of the short term rental, including street address, number of bedrooms, and number of off-street parking spaces available for guests' use.
d. Certification the short term rental meets and will continue to meet the definition of short term rental classification (Type-1, Type-2, or Type-3) during the registration term.
e. For Type-2 and Type-3 short term rentals, certification the applicant has read and understood the standards in subsection I of this section and the property applied
for meets the standards.
f. For Type-2 short term rentals in residential zoning districts, certification that residents adjacent to the proposed short term rental have been provided written notice in accordance with subsection 6 of this subsection.
g. All hosting platforms on which the short term rental is listed.
hg. The registration permit fee and fire inspection fee.
3. Safety inspections.
a. Initial inspection. Prior to issuance of the first short term rental registration permit for any property, an inspection by the city fire department must be completed and signed off by a city fire inspector, or by an NFPA or ICC-certified fire inspector
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using an inspection form approved by the city fire marshal. A fire inspection checklist form will be provided to the applicant with the application materials. If a short term rental registration permit lapses for any period of time, upon reapplication for registration a permit an inspection must be completed and signed
off as described in this subsection before the short term rental registration permit
will be issued.
b. Re-inspection. If re-inspection or multiple visits by a fire inspector are required before the inspection form may be signed, an additional inspection fees will apply for each inspection after the initial inspection.
c. Subsequent inspections; self-certification. A short term rental must be inspected
by the city fire department every three years. The applicant must self-certify continued compliance with each item on a fire inspection checklist upon annual renewal of a permit for each year that an inspection is not required. The city fire marshal may require a repeat inspection on a periodic basis, and at any time upon
complaint or evidence of noncompliance. Applications for annual renewal of
registration will include a self-certification by the applicant that they continue to comply with the fire inspection checklist. By applying for renewal of registration, the applicant will acknowledge and agree that the city may randomly select a certain percentage, not to exceed ten percent, of the renewal applications for a full
inspection as described in subsection (a). If selected, the registration renewal will
be conditioned on completion of the fire inspection and payment of the fire inspection fee. The owner of a short term rental selected for a full inspection will be allowed to continue to operate the short term rental pending completion of the inspection, provided all other renewal requirements have been met.
4. Safety hazards. The short term rental owner acknowledges that the city, or any authorized representative thereof, have the right to suspend operation of any short term rental when the city determines the rental is causing or contributing to an imminent public health or safety hazard.
5. Fees. Short term rental registration permit and inspection fees shall be established by
resolution of the city commission.
6. Additional notice requirements for registrations permit and registration permit renewals of Type-2 short term rentals in residential zoning districts. The applicant for a Type-2 short term rental registration permit in a residential zoning district included in section 38.310.030 must give notice on a form provided by the city to each residence
adjacent, including those residences adjacent across a public right-of-way and properties connected to the applicant's property by property corners. The notice must include a description of the proposed use and the name, address, telephone number and email address (if any) of the responsible person.
67. Issuance of registration permit. Once the applicant submits the completed application
form, all required submittal materials, and registration and inspection fees, the director will review the application form and submittal materials and determine whether the
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short term rental meets all city requirements for registration permit. The city will director may issue the short term rental registration permit when:
a. The director determines the short term rental meets all city requirements for registration a permit; and
b. The applicant has provided either a signed pre-operational inspection report from
the health department indicating the short term rental may operate as a public accommodation or a valid and current public accommodation license issued by the state of Montana department of health and human services pursuant to Title 50, Chapter 51, MCA.
8. Listing of registration. The short term rental registration form will require the applicant
to agree to inclusion in an online listing of short term rentals registered with the city.
79. Display of short term rental registration number. The owner must include the short term rental registration permit number issued by the city in all listings and advertisements, of the owner’s short term rental on any hosting platform and print
advertising.
810. Change in ownership. A short term rental registration permit does not run with the land, and a change in ownership of the short term rental terminates the registration permit. The new owner wishing to continue operation of the property as a short term rental must apply for registration a new permit following the process described in this
section.
911. Expiration. Registrations Permits issued pursuant to this article section are valid for one year from the month in which such registration permit is issued and will expire automatically unless renewed in accordance with this section.
102. Renewal. The registrant may apply to renew the registration permit annually using a
form provided by the city. Renewals must comply with the requirements of this code which are in place at the time of renewal. Failure of an applicant to renew a permit results in the termination of the lawful use of a property as a short term rental. It is the registrant's permitee’s responsibility to renew the registration permit on time even if a courtesy reminder is not received by the registrant. prior to the expiration of the permit.
Failure of an applicant to renew a short term rental permit prior to the expiration of the current permit period requires the applicant to file a new permit application for a short term rental and is subject to the initial inspection and fee.
I. Short term rental standards. The following requirements apply only to Type-2 and Type-3 short term rentals unless otherwise noted.
1. Short term rental agreement; written rules for guests. The short term rental owner must enter into a written rental agreement with the guest for each stay in the short term rental.
a. The guest must be provided with a written list of rules applicable to the short term rental with the rental agreement, and the rental agreement must include a written
acknowledgement by the renters of their agreement to comply with such rules.
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b. The list of rules must include those rules required by this article section to be included.
c. The list of rules must be prominently displayed within the short term rental.
2. Responsible person. The applicant short term rental owner must designate a person
responsible for addressing all maintenance, nuisance, and safety concerns related to a
short term rental. The responsible person must be available to take and respond to reports of concerns and complaints 24 hours per day, 7 days per week during the registration term. The name and contact information for the responsible person must be included in the list of rules.
3. Maximum occupancy for Type-2 and Type-3 short term rentals. The maximum
occupancy of a Type-2 or Type-3 short term rental is two persons per bedroom plus two additional persons, except that this number may be reduced by the city based on available parking spaces. The maximum occupancy will be noted on the short term rental registration and must be included in the list of short term rental rules.
4. Maximum number of bedrooms that may be rented in a Type-1 short term rental;
maximum occupancy. The owner of a Type-1 short term rental may rent or offer for rent up to two bedrooms in the dwelling, except that in a two-bedroom dwelling, only one bedroom may be rented or offered for rent. No other area of the dwelling may be rented or offered for rent. The maximum occupancy of a Type-1 short term rental is
two persons per bedroom.
5. Trash removal. The responsible person must ensure proper disposal of solid waste pursuant to local and state rules, regulations and laws. The schedule for trash and recycling collection and instructions for proper disposal must be included within the short term rental rules.
6. Signage. Exterior signs identifying the unit as a short term rental are prohibited on short term rentals. During a rental period, there must be a sign posted inside the front door of the short term rental showing the locations of all fire extinguishers in the unit, the gas shut-off valve, and fire exits.
7. Noise and nuisance.
a. The owner of the short term rental must ensure that use of the short term rental by guests is in compliance with the noise provisions of chapter 16, article 6 and all nuisance provisions of the Bozeman Municipal Code.
b. A prohibition against making loud noise in such a manner as to disturb the quiet, comfort or repose of a reasonable person of normal sensitivity must be included in
the short term rental rules.
c. All outdoor activities producing noise discernible from a neighboring property shall cease by 10:00 p.m. This requirement must be included in the short term rental rules.
J. Hosting Platforms Obligations
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1. Compliance with laws. In addition to the provisions of this section, a hosting platform must comply with all other applicable local, state and federal laws.
2. Reporting requirements. A hosting platform must provide a report to the city on a quarterly basis that includes, but is not limited to the following:
a. The address of each short term rental located in the city for which it conducts a
booking transaction;
b. The name of any owner or responsible person for each transient occupancy for which the hosting platform conducted a booking transaction.
3. Required information for booking transaction. A hosting platform must include the city
permit number in all hosting platforms’ publicly available listings prior to performing a
booking transaction for each short term rental within the city.
4. Obligation to remove listings. If the hosting platform has reason to believe a short term rental is in violation of any provision of this code, including but not limited to notice from the city of a violation or an owner’s failure to supply to the hosting platform the city permit
number for the short term rental, the hosting platform must remove the listing from its
hosting platform within ten business days.
JK. Violations; enforcement.
1. Registration suspension or revocation. The director may suspend or revoke a short
term rental registration permit, impose administrative remedies as provided herein, or
enforce a suspension or revocation through a civil action when the registrant permittee commits one or more of the following acts or omissions:
a. Failure to comply with any provision of this article code;
b. Operating or allowing the operation of the short term rental in such a manner as to
create a public nuisance, cause a breach of the peace, constitute a danger to the public health, safety, welfare or morals, or interfere with the rights of abutting property owners;
c. Cancellation of the health department's public accommodation license, tax authority registration, or any other required permit; or
d. The securing of the registration permit by fraud or misrepresentation, to specifically include including but not limited to supplying false or incorrect information on the registration permit application.
2. Procedure. Should the director decide to suspend or revoke a registration permit, the registrant permittee will be given notice and an opportunity to respond following the
procedures in this subsection, except that should the director determine the short term rental or its operation present a safety hazard or require immediate remedy, the director may order operation of the short term rental to cease immediately.
a. The registrant permittee will be notified in writing by the director at least seven days prior to the action contemplated and the reasons therefore.
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b. Upon receipt of the notice, the registrant permittee may request a meeting with the director. Such request must be in writing and must be received by the director within seven days of the permittee registrant's receipt of the notice. Failure on the part of the registrant permittee to request in writing a meeting and within the
specified time period shall be a waiver of the permittee registrant's right to a
meeting.
c. If a meeting is requested by the registrant permittee, the director will set a time, date and place and will so notify the registrant permittee, in writing.
d. When a meeting is conducted, the city will present the evidence supporting the
contemplated action. The director may request evidence be presented by other
parties. The registrant permittee may present evidence. The director will take all evidence admitted under advisement and once a decision has been made the director will notify the registrant permittee of the findings and decision in writing.
3. Civil Penalty. The director may recover the following civil penalties for any violation
of this section. Each day a violation continues constitutes a separate violation.
a. For any violation by an owner, the director may recover a civil penalty of not more than $500.00.
b. For any violation by a hosting platform, the director may recover a civil penalty of not more than $500.00.
34. Appeal. Any person An aggrieved person by a decision of the director will have the
right may file an application to appeal the matter to the city commission according to by following the procedures in section 38.250.030.
45. Unpaid fee constitutes debt. The amount of any unpaid fee, the payment of which is required hereunder, constitutes a debt due the city.
56. Violation constitutes a misdemeanor. In addition to suspension or revocation under
subsection A of this section, or the imposition of a civil penalty as provided herein, a knowing
violation of this article constitutes a misdemeanor punishable as described in section
38.200.160 except a person may not be imprisoned for a violation of this section.
Section 3
Repealer.
All provisions of the ordinances of the City of Bozeman in conflict with the provisions of
this ordinance are, and the same are hereby, repealed and all other provisions of the ordinances of
the City of Bozeman not in conflict with the provisions of this ordinance shall remain in full force
and effect.
Section 4
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Savings Provision.
This ordinance does not affect the rights and duties that matured, penalties that were
incurred or proceedings that were begun before the effective date of this ordinance. All other
provisions of the Bozeman Municipal Code not amended by this Ordinance shall remain in full
force and effect.
Section 5
Severability.
That should any sentence, paragraph, subdivision, clause, phrase or section of this
ordinance be adjudged or held to be unconstitutional, illegal, or invalid, the same shall not affect
the validity of this ordinance as a whole, or any part or provision thereof, other than the part so
decided to be invalid, illegal or unconstitutional, and shall not affect the validity of the Bozeman
Municipal Code as a whole.
Section 6
Codification.
This Ordinance shall be codified as indicated in Section 2.
Section 7
Effective Date.
This ordinance shall be in full force and effect thirty (30) days after final adoption.
PROVISIONALLY ADOPTED by the City Commission of the City of Bozeman,
Montana, on first reading at a regular session held on the 27th day of June, 2023.
____________________________________
CYNTHIA L. ANDRUS
Mayor
ATTEST:
____________________________________
MIKE MAAS
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City Clerk
FINALLY PASSED, ADOPTED AND APPROVED by the City Commission of the
City of Bozeman, Montana on second reading at a regular session thereof held on the 11th of
July, 2023. The effective date of this ordinance is August 11, 2023.
_________________________________
CYNTHIA L. ANDRUS
Mayor
ATTEST:
_______________________________
MIKE MAAS
City Clerk
APPROVED AS TO FORM:
_________________________________
GREG SULLIVAN
City Attorney
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