HomeMy WebLinkAbout10-17-23 Public Comment - S. Baucus - Ordinance 2149 - Suggestions for Grandfathering and 5% cap for Type 3 STRsFrom:Stephanie Baucus
To:Agenda
Cc:Kelley Rischke; Erin George
Subject:[EXTERNAL]Ordinance 2149 - Suggestions for Grandfathering and 5% cap for Type 3 STRs
Date:Tuesday, October 17, 2023 1:08:01 AM
Attachments:MHVR - Bozeman STR Ordinance October 2023 - FINAL_Ord._2149_9.26.23 - SB Comments - 10-16-2023.pdf
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Dear City Commissioners,
Greetings! I’m at attorney in Billings, and I represent several Montanans and Bozemanresidents who live and own property in Bozeman.
As a Montanan, I am very concerned about the lack of affordable housing in our communities,but I am also concerned about the ability of Montanans to rent out their homes if they need to
earn income from their homes or properties they bought to earn necessary income in order topay their mortgages and bills. The economy is not great right now, and I really hope that the
City of Bozeman will consider balancing the need to increase housing with the need to helpMontanans afford their homes or investment properties that help them pay their bills. I have
broader concerns about the Ordinance, but (1) I think that grandfathering existing short-termrentals would be the bare minimum that is needed to try to balance the current and vested
property interests of owners with the future policy goal and current need of increasing housingstock. Additionally, (2) I would recommend capping future Type 3 STRs at 5% of Bozeman’s
available housing units (or prohibiting any future Type 3 STRs if all STRs reach 5% ofBozeman’s housing stock). This seems appropriate as it appears (including from the City’s
own research in the EPS study) that banning short-term rentals will not do much of anythingto increase affordable housing stock, which I agree should be a priority.
To that end, I am asking that you all consider bringing these six amendments during thediscussion tonight on Ordinance 2149 before the motion/vote on the Ordinance itself. These
suggestions are marked in track changes on the attached document, and they are specificallythe following:
1. Motion to amend the ordinance to permit grandfathering of existing short-term
rentals, by adding the following as new section 8 (and by not removing references or
definitions to Type 3 short-term rentals throughout):
a. “Grandfathering and Renewal Protections. A Host with a valid permit, whose
short term rental was in compliance with applicable zoning laws prior to the
effective date of this Ordinance, whose short term rental would otherwise be
prohibited after the effective date of this Ordinance, will be allowed to continue
such use and the Host will be able to renew the permit, provided the Host
complies with all other applicable requirements of this Ordinance.”
b. The reason for this is that those who currently have short-term rentals and valid
permits through the City have spent thousands of dollars on their properties, have
made investment decisions to pay their bills, had reasonable expectations for the
use of their properties, and have vested interests in their existing short-term
rentals.
c. I understand that the City is concerned with the trajectory of increasing short-term
rentals, which is why grandfathering and a cap would make sense.
d. The City provided grandfathering in Ordinance 1974 in 2017 in Section 8 of that
Ordinance, and I recommend doing that here. The language that I have proposed
is consistent with Montana’s nonconforming use statute in the county zoning laws
– Mont. Code Ann. 76-2-208. The suggested language is not very detailed, which
would also permit the City to implement that portion of the Ordinance after the
Ordinance is passed. The new MT Land Use Planning Act that passed through the
Legislature this year and was effective in May appears to require cities to
grandfather existing STRs. See SB 382, Section 18, Subsection 8.
2. Motion to change the ordinance from prohibiting Type 3 short-term rentals to
capping them at 5% of the City’s available housing units, by making the changesproposed in lines 4-5 of the title on page 1 and proposed in the charts of pages 11-14 of
the attached redlined ordinance draft.
a. While many in the STR industry would prefer to see no restrictions at all, capping
STRs at 5% would accomplish the City’s goals of planning for the future of
housing in Bozeman, would provide needed lodging for tourists who contribute
meaningfully to the local economy, and would allow Bozeman residents to
develop their properties and increase the total number of housing units available.
b. STRs provide 43% of Bozeman’s lodging units, while accounting for 1.36% of
Bozeman’s housing units (if you count only the licensed STRs) or up to 2.5% of
Bozeman’s housing units (if you count the licensed and unlicensed STRs). An
additional 2.5% would allow for reasonable expansion and for the development of
properties already purchased but not yet developed, but would also put limits on
the numbers of STRs that can be permitted.
c. Further, allowing for some Type 3 STRs, particularly in zones where hotels or
beds and breakfast are located, is sound public policy. If the City views Type 3
short-term rentals in the same categories as hotels, then it would not be reasonable
to permit hotels to operate in a zone where Type 3 short-term rentals were
prohibited.
3. Motion to change the definition of primary residence in the Ordinance, regarding Type 1
and Type 2 STRs, from a home where an owner resides 70% of the year to 50% of theyear, by making the changes proposed in line 8 of the title on page 1 and proposed onpage 4.
a. The reason for this is that increasing the amount of time someone is prevented
from renting their primary residence (or prevented from traveling away from their
home) isn’t going to create affordable housing or even long-term housing. It will
just make it harder for homeowners to afford their homes. And, why should the
City have a different standard than is used for tax purposes?
b. Further these percentage thresholds would be difficult for the City to enforce.
4. Motion to amend the ordinance to clarify that the City will issue short-term rental
permits for applicants who comply with all requirements, by changing the word“may” to “will” on the bottom of page 7. See attached.
a. The reason for this is that if applicants meet all the criteria, the City should issue
the permit or license, as a ministerial exercise, not a discretionary act. The policy
should be straightforward and clear, and it should not be done in an arbitrary or
discriminatory way.
5. Motion to amend the ordinance to clarify that people who own their homes through
LLCs or trusts can still rent their homes by making the minor wording changes on
pages 4 and page 6 of the attached.
a. The reason for this is that many Montanans own their own personal residences
through family trusts or LLCs, so they need to be permitted to rent their homes
too (including as Type 1s and 2s).
6. Motion to amend the ordinance to provide additional notice and time for owners to
respond to any notices of potential violations by making the changes suggested on page
10 of the attached redline.
a. The reason for this would be to provide sufficient due process in any enforcement
proceedings.
I have made additional comments on the attached for your consideration, and I hope that you
will consider these important concerns that have arisen for my clients and hundreds of othersin Bozeman.
Thanks again for your time and service to the Community. Please don’t hesitate to call oremail if you want to chat about any of these suggestions today or at any point. Take care,
Stephanie
Stephanie Baucus
Counsel
MOULTON BELLINGHAM PC
27 North 27th Street, Suite 1900, Billings, MT 59101
PO Box 2559, Billings, MT 59103-2559
Office: (406) 248-7731; Direct Dial: (406) 238-1583
Cell Phones: (406) 876-1939; (202) 236-9134
stephanie.baucus@moultonbellingham.com
https://www.moultonbellingham.com/attorney/43/Stephanie-Baucus
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Page 1 of 17
ORDINANCE 2149
AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA TO
GENERALLY REVISE BOZEMAN MUNICIPAL CODE RELATED TO SHORT TERM
RENTALS INCLUDING GENERALLY REVISING SECTION 38.360.260 – SHORT TERM
RENTALS INCLUDING: DISCONTINUING AND PROHIBITINGCAPPING THE NUMBER OF
TYPE 3 SHORT TERM RENTALS AS THAT MAY BE PERMITTED AN AUTHORIZED USE IN
ANY ZONING DISTRICT; CREATING DEFINITIONS OF “HOST” AND “PRIMARY
RESIDENCE,” WHICH REQUIRES A PERSON TO OCCUPY A DWELLING UNIT FOR
SEVENTY FIFTY PERCENT OF THE CALENDAR YEAR; CREATING NEW CATEGORIES
AND REGULATIONS FOR TYPE 2 SHORT TERM RENTALS; AMENDING LAND USE TABLES
38.310.030.B AND 38.310.040.B TO IDENTIFY SHORT TERM RENTALS AS AN ACCESSORY
USE; AND AMENDING THE DEFINITIONS OF “DWELLING” AND “SHORT TERM
RENTAL” IN BOZEMAN MUNICIPAL CODE DIVISION 38.700.
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, in addition to authority to regulate short term
rental conferred upon it by the State of Montana, the City of Bozeman hereby relies upon its self-
government powers; and
WHEREAS, after proper notice, the Community Development Board in their capacity as Bozeman
Zoning Commission held a public hearing on October 2, 2023 to receive and review all written and oral
testimony on this proposed ordinance; and
WHEREAS, the Community Development Board acting in their capacity as the Bozeman Zoning
Commission recommended to the Bozeman City Commission that Ordinance 2149 be approved as
proposed; and
WHEREAS, after proper notice, the City Commission held its public hearing on October
Page 2 of 17
17, 2023 to receive and review all written and oral testimony on the proposed amendment to the City’s
short term rental regulations; and
WHEREAS, the City Commission has reviewed and considered the applicable amendment criteria
established in Montana Code Annotated § 76-2-304, and found the proposed amendments are in compliance
with the criteria.
NOW THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY OF
BOZEMAN, MONTANA:
Section 1
Legislative Findings
The City Commission hereby makes the following findings in support of adoption of this
Ordinance:
1. The Montana Constitution, Article XI, § 4(2), states the powers of incorporated cities, which shall be
liberally construed, 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 and 76-2- 304.
3. 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;
requiring a host to obtain approval from the City prior to using property as a short-term rental and
authorizing the city to charge fees, and other options.
4. 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 home 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, and to require regular reporting to obtain more information about
short term rentals in Bozeman. Ordinance 2131 was adopted in response and became effective on August
11, 2023.
5. On August 8, 2023, the Bozeman City Commission held another work session to discuss short
Page 3 of 17
term term rentals and their influence on the local housing market and home affordability. The City desires
to preserve its available housing stock and the quality of life in its residential neighborhoods and to alleviate
the impacts to residential neighborhoods caused by the operation of short term rentals. The short term rental
of a person’s primary residence does not displace the primary resident from the dwelling unit and does not
cause as significant a removal of existing housing stock from the market or as negative an impact to the
available housing stock. Therefore, the City Commission directed staff to draft an ordinance restricting the
types of short term rentals allowed within the City of Bozeman, increasing the amount of time a person
must occupy their primary residence to be allowed to offer the residence as a short term rental, and regulate
the short term rental of accessory dwelling units on the same lot or dwellings in the same building as a host’s
primary residence (e.g. duplex, triplex, fourplex, and apartment buildings).
6. City staff prepared a report with this Ordinance analyzing the required criteria for an amendment to
the City’s regulations for zoning review, including the amendment’s accordance with the Bozeman
Community Plan 2020, and found that the required criteria of Montana Code Annotated § 76-1-304 are
satisfied.
7. The City Commission determines this Ordinance provides a proper balance of interests, rights, and
responsibilities of all parties affected by the ordinance and substantially complies with the Bozeman
Community Plan 2020 and complies with all applicable State criteria for adoption of zoning regulations.
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 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 section apply to transient occupancy of a short term rental as defined
herein.
2. This 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).
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
Commented [SB1]: While I understand the City's interests in increasing housing stock, the draft ordinance is concerned
with future policy priorities - without grandfathering for
those properly permitted. Without grandfathering, the
Ordinance does not do any balancing of interests and rights.
Page 4 of 17
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.
2. “Host” means a natural personan owner who occupies a dwelling unit as the person’s
primary residence and has the legal right to offer the dwelling unit for use as a short term
rental.
3. 32. "Hosting platform" means a person or entity that 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 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.
4. "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.
5. "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.
6. 45. "Operate, operation of," or "operating a short term rental" means the short term rental
has been rented by or on behalf of the host owner to the general public for compensation
for transient occupancy. "Operate" "operation of" or "operating" a short term rental does
not include mere advertisement of or offering to rent short term rental(s).
7. “Primary residence” means the dwelling unit a natural person occupies for a minimum of
seventy fifty percent of the calendar year. A natural person can have only one primary
residence.
8. "Responsible person" means the person responsible for addressing all maintenance,
nuisance, and safety concerns related to a short term rental, as designated by the host.
9. "Short term rental is defined in article 7 of this chapter."
10. "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 person(s) occupying the short term rental renter has a primary principal
residence other than the short term rental
D. Short term rental classifications. Short terms rentals are classified as:
Commented [SB2]: Many people own their homes (even primary residences) through trusts and sometimes through
LLCs.
Commented [SB3]: Why would you want to get rid of
this? This allows joint owners or long-term tenants to do STRs. Even if you want to define "host," I still think it
would help to have this definition of an owner, which could
be part of the host definition.
Commented [SB4]: The point about a natural person only
having one residence makes sense, but the increase from
50% to 70% will be difficult to enforce. It also will not
change a person's use of their homes - it will just cause them to make less money on their home and have more trouble
affording to live in Bozeman. Also, why would this
definition need to be different than the tax code definition?
Page 5 of 17
1. Type-1: A short term rental of one or more bedrooms in an owner-occupied dwelling a
host’s primary residence while the host owner is occupying the same dwelling unit for the
entire short term rental period.
2. Type-2: A Type-2 short term rental is the short term rental of a dwelling unit if the host is
not occupying the dwelling unit during the entire short term rental period. Type 2 short
term rentals include:
3. Type-2A: A short term rental of an owner-occupied a single household dwelling unit if the
host owner is not occupying the dwelling unit during the entire short term rental period.
The dwelling unit offered as a short term rental must be the host’s primary residence, as
defined herein.
4. Type-2B: A short term rental of an permitted accessory dwelling unit (ADU) on the same
lot as the host’s primary residence, or a short term rental of no more than one additional
dwelling unit in the same building as the host’s primary residence regardless of whether or
not the ADU's owner host is present in the primary dwelling unit host’s primary residence
during the short term rental period.
5. 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.
6. Type-3: A short term rental that is not owner-occupied.
E. Where allowed. An owner host may operate a short term rental in all zoning districts where such
use is authorized in chapter 38 subject to the requirements of this chapter and pursuant to a valid
and current short term rental hosting permit.
F. Compliance with laws.
1. In addition to the provisions of this chapter, the short term rental owner a host 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
hosting permit in accordance with subsection J. of this section.
2. Compliance with all applicable laws and regulations is the sole responsibility of the host
owner. City approval of an application for a short term rental hosting permit registration in
no way waives or transfers to the city such responsibility. In addition, the owner host 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 permit fees and will issue permits and renewals thereof
in the name of the city to all persons qualified under the provisions of this 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 section, including, but not limited to,
providing alternative means to comply with hosting platform reporting requirements of
Commented [SB5]: This definition should stay in - Type 3
STRs are referenced in the charts below and would still need
to be defined, even if prohibited.
Page 6 of 17
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 permit as prescribed herein.
5. Examine records. The director may examine the books and records of any host applicant
when reasonably necessary to the administration and enforcement of this 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 permit and at the applicant's request,
state in writing the reasons for the denial and deliver it to the applicant.
7. Record keeping. The director will maintain at all times a record of permitted short term
rentals, including the full name of each host permittee, the address at which such short term
rental is operated, the date of issuance, the fee paid therefor, the telephone and address of
the host applicant, and the time such permit will continue in effect.
H. Hosting Permits. The following requirements apply to all short term rentals hosting 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 short term rental hosting permit with the department of
community development. A separate permit 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 hosting 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-2A, or Type-2B3) during the 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 or
other entity, the name(s) and contact information of all business owners or entities
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.
Commented [SB6]: If the City were to cap the number of
Type 3s rather than eliminate them, Type 3s should stay in
this list.
Page 7 of 17
d. Certification the short term rental meets and will continue to meet the definition of
short term rental classification (Type-1, Type-2A, or Type-2B3) during the
registration term.
e. For Type-2 and Type-3 short term rentals, c Certification the applicant has read,
and understood understands, and acknowledges the standards in subsection I. of
this section, and the property applied for meets the standards is the applicant’s
primary residence, and the applicant has the legal right to offer the dwelling unit
for use as a short term rental.
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.
f. fAll hosting platforms on which the short term rental is listed.
g. The permit fee and fire inspection fee.
3. Safety inspections.
a. Initial inspection. Prior to issuance of the first short term rental hosting 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
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 hosting permit lapses for any period of time, upon reapplication
for a permit an inspection must be completed and signed off as described in this
subsection before the short term rental hosting 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 fee 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 host 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 at any time upon complaint or evidence of
noncompliance.
4. Safety hazards. The host 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 short term rental is causing or contributing to an
imminent public health or safety hazard.
5. Fees. Short term rental hosting permit and inspection fees shall be established by resolution
of the city commission.
6. Issuance of 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 short term rental meets
all city requirements for permit. The director may will issue the short term rental hosting
permit when:
Commented [SB7]: Same comment as above re leaving Type 3 in this list if the City were to cap rather than
eliminate them.
Commented [SB8]: We commented on this before it was changed in August. To reiterate, if applicants meet all the
criteria, the City should issue the permit or license, as a
ministerial exercise, not a discretionary act.
Page 8 of 17
a. The director determines the short term rental meets all city requirements for 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 MCA Title
50, Chapter 51.
7. Display of short term rental hosting permit registration number. The host owner must
include the short term rental hosting permit number issued by the city in all listings and
advertisements, of the host’s owner's short term rental on any hosting platform and print
advertising.
8. Change in status of host ownership. A short term rental hosting permit does not run with
the land, and a change in ownership primary residence status of the short term rental host
terminates the permit. In order for the dwelling unit to remain eligible for use as a short
term rental after a host no longer uses the dwelling unit as their primary residence, a new
application identifying a new host as primary resident must be submitted to the city.
9. Expiration. Permits issued pursuant to this section are valid for one year from the month in
which such permit is issued and will expire automatically unless renewed in accordance
with this section.
10. Renewal. The host registrant may apply to renew the 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 host to renew a permit results in the
termination of the lawful use of a property as a short term rental. It is the host’s permitee's
responsibility to renew the short term rental hosting permit prior to the expiration of the
permit. Failure of an applicant a host to renew a short term rental hosting permit prior to
the expiration of the current permit period requires the host applicant to file a new permit
application for a short term rental hosting permit 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 guests renters of their agreement to comply with such
rules.
b. The list of rules must include those rules required by this section to be included.
c. The list of rules must be prominently displayed within the short term rental.
2. Responsible person. The host 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, seven days per week during the registration
Commented [SB9]: Same comment about Type 3s if the
City were to cap rather than eliminate them.
Page 9 of 17
term of the short term rental hosting permit. 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 hosting permit
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. 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 host 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 this 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.
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 host owner or responsible person for each transient occupancy for
which the hosting platform conducted a booking transaction.
Commented [SB10]: Same comment about Type 3s in this paragraph (2 spots) if the City were to cap rather than
eliminate them.
Commented [SB11]: Why? What if someone has a 6
bedroom house? Why could they not offer 4-5 bedrooms for
rent?
Page 10 of 17
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 a host’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.
K. Violations; enforcement.
1. Registration suspension or revocation. The director may suspend or revoke a short term
rental hosting permit, impose administrative remedies as provided herein, or enforce a
suspension or revocation through a civil action when the host permittee commits one or
more of the following acts or omissions:
a. Failure to comply with any provision of this 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 permit by fraud or misrepresentation, including but not limited
to supplying false or incorrect information on the permit application.
2. Procedure. Should the director decide to suspend or revoke a hosting permit, the host
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 host permittee will be notified in writing by the director at least seven 21 days
prior to the action contemplated and the reasons therefore.
b. Upon receipt of the notice, the host permittee may request a meeting with the
director. Such request must be in writing and must be received by the director
within seven 14 days of the host’s permittee's receipt of the notice. Failure on the
part of the permittee to request in writing a meeting and within the specified time
period shall may be deemed a waiver of the host’s permittee's right to a meeting.
c. If a meeting is requested by the host permittee, the director will set a time, date and
place and will so notify the host 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 host 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 host permittee of the findings and decision in writing.
Page 11 of 17
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 a host 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.
4. Appeal. An aggrieved person may file an application to appeal the matter to the city
commission according to the procedures in section 38.250.030.
5. Unpaid fee constitutes debt. The amount of any unpaid fee, the payment of which is
required hereunder, constitutes a debt due the city.
6. 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
That section 38.310.030. Authorized uses—Residential zoning districts be amended as follows:
Table 38.310.030.B
Permitted accessory and non-residential uses in residential zoning districts
Uses Zoning Districts
R-S R-1 R-2 R-3 R-4 R-5 R-O1 RMH
Accessory uses
Essential services
Type I*
A A A A A A A A
Guest house* A A A A A A A —
Home-based
businesses
(38.360.150)*
A/S A/S A/S A/S A/S A/S A/S A/S
Other buildings and
structures typically
accessory to
authorized uses
A A A A A A A A
Table clarifications:
1. Uses: P = Principal uses; S = Special uses; A = Accessory uses; C = Capped at 5% of Bozeman’s available
housing units — = Uses which are not permitted.
2. If a * appears after the use, then the use is defined in article 7.
3. Where a code section is referenced after the use, then the use is subject to the additional standards specific to the
subject use in that code section.
4. If a number appears in the box, then the use may be allowed subject to development condition(s) described in the
Page 12 of 17
Private or jointly owned recreational
facilities
A A A A A A A A
Signs*, subject to article 5 of this chapter
A A A A A A A A
Temporary buildings and yards incidental to construction work
A A A A A A A A
Temporary sales and office buildings A A A A A A A A
Non-residential uses
Agricultural uses* on 2.5 acres or more (38.360.270)
P — — — — — — —
Agricultural uses* on
less than 2.5 acres (38.360.270)
S — — — — — — —
Bed and breakfast* S S S S P P P —
Commercial stable (38.360.230) S — — — — — — —
Community centers* S S S S S S P S
Day care centers* S S S P P P P S
Essential services Type II* P P P P P P P P
Essential services Type III*2 S S S S S S S S
Short Term Rental (Type 1)* P A P A P A P A P A P A P A —
Short Term Rental (Type 2)* — — P A P A P A P A P A —
Short Term Rental
(Type 3)*
—C —C —C —C —C —C —C —C
General service establishment* — — — — — — P5 —
Golf courses S S — — — — — —
Offices* — — — — S3 S3 P —
Public and private parks P P P P P P P P
Medical offices, clinics, and centers* — — — — S S3 P —
Recreational vehicle
parks (38.360.210)*
S — — — — — — P
Restaurant* — — — — — P4 P5, 6 —
Retail* — — — — — P4 P5, 6 —
Veterinary uses S — — — — — — —
Commented [SB12]: Why would the City want to permit
Bed and Breakfasts but not STRs?
Page 13 of 17
Notes:
1. The primary use of a lot, as measured by building area, permitted in the R-O district is
determined by the underlying growth policy land use designation. Where the district lies
over a residential growth policy designation the primary use shall be non-office uses; where
the district lies over a non-residential designation the primary use shall be office and other
non-residential uses. Primary use shall be measured by percentage of building floor area.
2. Only allowed when service may not be provided from an alternative site or a less intensive
installation or set of installations.
3. Only when in conjunction with dwellings.
4. Subject uses are limited to 2,500 square feet of gross floor area and only allowed on street
corner sites within a mixed-use building featuring residential units next to and/or above
subject uses.
5. Subject uses are limited to 1,500 square feet of gross floor area per individual tenant.
6. These uses may not include drive-through facilities.
Section 4
That section 38.310.040 be amended as follows:
Table 38.310.040.B
Permitted services and temporary lodging uses in commercial, mixed-use, and industrial zoning districts
Uses Zoning Districts
Commercial Mixed Use Industrial P
LI
B-
11
B-
2
B-2M B-3 UMU
(38.310.050)
REMU
(38.310.060)
NEHMU2 BP M-
1
M-
2
Personal and general service
Animal shelters — — — — — — S — S S —
Automobile
washing
establishment*
— P P P S S P — P P —
Table clarifications:
1. Uses: P = Principal uses; S = Special uses; A = Accessory uses; C = Capped at 5% of Bozeman’s available housing units; — =
Uses which are not permitted.
2. If a * appears after the use, then the use is defined in article 7.
3. Where a code section is referenced after the use, then the use is subject to the additional standards in that code section.
4. If a number appears in the box, then the use may be allowed subject to development condition(s) described in the footnotes
immediately following the table. If there are multiple numbers, then the use is subject to all applicable development conditions.
5. Where a number with a "sf" reference appears below a P or S in the box, it means that the use is permitted or conditionally
permitted up to the (maximum) listed square footage in gross building area.
Page 14 of 17
Daycare—Family,
group, or center*
P P P P3 P P P/A4 P/A4 S/
A4
S/
A4
P
General service
establishment*
P P P P P P P P P S —
Health and exercise
establishments*
P P P P P P P S/A4 P P —
Heavy service
establishment*
— P P S P S P — P P —
Medical and dental
offices, clinics and
centers*
P P P P3 P P P P P P —
Mortuary — S S S S — — — — — —
Offices* P P P P3 P P P P5 P P —
Personal and
convenience
services*
P P P P P P A A A A —
Truck repair,
washing, and
fueling services
— — — — — — S — S P —
Temporary lodging
Bed and breakfast* — — — — — P S — — — —
Short Term Rental
(Type 1)*
— P
A
P A P A P A P
A
P A — — — —
Short Term Rental
(Type 2)*
— P
A
P A P A P A P
A
P A — — — —
Short Term Rental
(Type 3)*
— P
C
CP CP CP C
P
— — — — —
Hotel or motel* — P P P P P
40,
00
0sf
P — P P —
Notes:
1. In the B-1 district, the footprint of individual buildings must not exceed 5,000 square feet.
2. Authorized uses in the NEHMU district include those uses allowed in the R-2 district (see
table 38.310.030 for those not listed in this table).
Commented [SB13]: Why would there be zones where STRs are not allowed but hotels and motels are?
Page 15 of 17
3. Use not allowed on the ground floor of buildings in the downtown core (those properties along Main
Street from Grand Avenue to Rouse Avenue and from the alley one-half block north of Main Street
to the alley one-half block south of Main Street) unless visitor access is available from an alley and
another use not subject to this footnote is present to a minimum depth of 20 feet from the front
building façade adjacent to a street.
4. If primarily offering services to a single business or group of businesses within the same building or
building complex.
5. Professional and business offices only.
Section 5
That section 38.700.050. – D definitions be amended as follows:
Dwelling. A building, or portion thereof, meeting the requirements of the city’s adopted International
Building Code and used by one household, as defined by this article, for residential purposes. Dwellings
may exist in many configurations, including single-household, two- household, multiple-household
dwellings and group homes. Dwellings do not include hotels, or motels, Type-3 short term rentals as
defined in section 38.360.260.
Section 6
That section 38.700.170. – S definitions be amended as follows:
Short Term Rental. A vacation home, tourist home as defined in MCA 50-51-102, a dwelling as defined in
section 38.700.050, accessory dwelling unit, or room within a vacation home or dwelling, which is rented
by or on behalf of the owner to the general public for compensation for transient occupancy as provided for
in section 38.360.260.
Section 7
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 8
Grandfathering and Renewal Protections.
A Host with a valid permit, whose short term rental was in compliance with applicable zoning laws prior
to the effective date of this Ordinance, whose short term rental would otherwise be prohibited after the
effective date of this Ordinance, will be allowed to continue such use and the Host will be able to renew
the permit, provided the Host complies with all other applicable requirements of this Ordinance.
Section 9
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 109
Severability.
Page 16 of 17
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 110
Codification.
This Ordinance shall be codified as indicated in Sections 2 through 6.
Section 121
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 day of , 20
.
CYNTHIA L. ANDRUS
Mayor
ATTEST:
MIKE MAAS
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 of
________________________, 20___. The effective date of this ordinance is _____________________,
20___,
CYNTHIA L. ANDRUS
Mayor
ATTEST:
Ordinance 2149
Page 17 of 17
Ordinance No. 2149, (Generally Revise Regulations of Short Term Rentals)
MIKE MAAS
City Clerk
APPROVED AS TO FORM:
GREG SULLIVAN
City Attorney