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HomeMy WebLinkAbout10-17-23 Public Comment - R. Walsh - Ordinance 2149From:reno walsh To:Agenda Subject:[EXTERNAL]Ordinance 2149 Date:Tuesday, October 17, 2023 1:31:34 AM CAUTION: This email originated from outside of the organization. Do not click links or open attachments unless you recognize the sender and know the content is safe. “There’s too much of a need for regular people to live here” - Chris Howell, Tenant's Union(Bozeman Chronicle) I moved to Bozeman in 1995. My wife is from Montana and moved to Bozeman before me. Iam the Director of Operations for a local non-profit. My wife was a school teacher atBozeman High. Now she is a nurse. We have two kids. One in the fourth grade at Hawthorneand the other in pre-school. We drive a 1995 Rav4 and a 2008 Tundra. We owe $600k on twoloans for two older homes on two properties. One is our primary. The other is a rentalproperty. The sounds of I-90 lull us to sleep at night. Trains wake us in the morning as theyblow their horns at non-safe and quiet rail crossings a few blocks away. No doubt, we arefortunate to have what we do and we work hard for every bit of it but the cost of living is toomuch, and raising good kids is expensive so, for us, we need an additional income streamto live here. We are one among many who are just trying to make it work here in Bozeman.We are all "regular people". In 2013, an elderly neighbor let us know that he wanted us to have his property. He knew wewould care for it. He knew we would not tear it down. He also knew our growing familyneeded the space and the potential for more income. He sold his property to us via a Contractfor Deed and $8000 down. By 2016 the property had increased in value and we could beapproved for a second loan. We invested $1500 in a Granfathered Type III STR ConditionalUse Permit Application. The application was approved by the City of BozemanCommissioners, including the current honorable Mayor Cyndy Andrus. This permit gave usthe confidence we needed to add an additional $200,000 to our loan which we invested into afull renovation of the historic property. That renovation allowed us to offer a unique higher-end Type III STR that tourists were willing to pay for. The Type III rental also became anaffordable place to stay for visiting parents and in-laws, who want to spend time with ourgrowing family on a regular basis. We also rent out a second smaller ADU that is on the samelot as a one-bedroom affordable rental that always rents below market value. Without the trustwe had in the Grandfathered Conditional Use Permit granted to us by this Commission in2016, we would not have invested an additional $200,000 to renovate the historic property. A lack of affordable housing is a problem for communities across the United States andaround the world. I believe the city is working hard and making progress on this importantissue. And, I agree with Mayor Andrus when she says. “I think we are beginning to see theresults of some of these annexation agreements and our ability to negotiate and work withincentives with developers.” (Bozeman Chronicle) The affordable housing market will not seeany results if Type III STRs are prohibited. This commission should consider focusing itslimited time and resources towards other ideas. The City of Bozeman could strongly encourage Montana State University to seriouslyconsider how its growing enrollment numbers impact Bozeman's limited affordable housing market. Perhaps the university could invest more in affordable student housing before itinvests in a larger visual scoreboard or indoor performance facility. A lower MSU Student to MSU Provided Student Housing ratio could improve the affordable housing market for non-students. The City of Bozeman could consider working closely with Gallatin County to address the 1,000+ non-permitted STRs in the county. Like the city, Gallatin County also has STRregulations that are not enforced. For a variety of reasons that do not apply to properties within city limits, a percentage of non-permitted short-term rentals in Gallatin County might becomeaffordable housing if existing regulations were enforced by Gallatin County. 0% of the 70 Type III STRs within city limits would become affordable rentals or homes for sale if Type IIISTRs are prohibited by the City of Bozeman. According to the City's own research, the 70 permitted Type III STR properties within city limits, .3% of the housing market withincity limits, are worth approximately 40% more than the median as a home for sale or for rent. The current median sale price for a single-family home in the City of Bozeman is around$711,000. This median sales price is down 2.6% from this time last year. The median rent in the City of Bozeman is approximately $2500. This is $460 less than the median rent at thistime last year (Zillow). Bozeman’s HRDC is reporting that there is currently a 7% vacancy rate for rentals in Bozeman. Honorable Mayor Andrus might be right when she talks about theimpacts the City's work might be having on the affordable housing market, "Bureaucracy doesn’t move fast, but I feel like we are making tremendous headway. And it’s not fastheadway, but it’s impactful headway.” (Bozeman Chronicle) The City of Bozeman could do more to enforce its existing STR Regulations. The City has issued zero citations related to STR Violations since 2017. A few months ago, there were over300 non-permitted STRs in the City of Bozeman. Due to a recent increase in enforcement, Affirmative Obligation, today there might be around 200 non-permitted STRs in Bozeman.We invested $1500 for a Grandfathered Type III Conditional Use Permit in 2016. We work hard and pay to maintain this permit. We do our part. I don't believe the Tenant's Union wouldbe pressuring the City of Bozeman to prohibit all Type III STRs if the City of Bozeman did its part by enforcing existing regulations. There should be zero non-permitted STRs in the City ofBozeman and Gallatin County. The City of Bozeman might want to be sure it takes measured deliberate steps as it works toward potential solutions for a lack of affordable housing in our region. The recentpostponement of a decision on the proposed UDC might reflect this sentiment. Prohibiting Type III STRs based on existing facts that don't add up before knowing what or how a revisedUDC Code might impact affordable housing certainly has the potential to be a regrettable decision, a missed step. Prohibiting Type III STRs city-wide will have no positive impact on Affordable Housing. Increasing the amount of time someone is prevented from renting their primary residence from50% to 70% isn’t going to create affordable housing or even long-term housing. It will make it harder for homeowners to afford their homes. Approving Ordinance 2149 with the amendments proposed by your Community DevelopmentBoard in the 23281 Staff Report will most likely have little to no positive impact on affordable housing. Approving Ordinance 2149 without the amendments proposed by your CommunityDevelopment Board in the 23281 Staff Report, prohibiting Type III STRs city-wide, will negatively impact the trust regular people, your constituents, have in this City Commissionand the City Of Bozeman. Reno Walsh724 N. Bozeman Ave.