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HomeMy WebLinkAbout23147 Staff ReportPage 1 of 15 23147 Staff Report for the Short Term Rental Affirmative Obligations Text Amendment, Ordinance 2131 Public Hearings: Community Development – June 5, 2023 City Commission – June 27, 2023 Project Description: Amend Bozeman Municipal Code (BMC) 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. Project Location: Revisions to the text are applicable City-wide in all zoning districts where short term rentals are currently allowed per Division 38.310 – Permitted Uses. Recommendation: Meets applicable criteria for approval. Community Development Board Motion: Having reviewed and considered the staff report, draft ordinance, public comment, and all information presented, I hereby adopt the findings presented in the staff report for application 23147 and move to recommend approval of Ordinance 2131. City Commission Recommended Motion: Having reviewed and considered the staff report, draft ordinance, public comment, recommendation from the Community Development Board, and all information presented, I hereby adopt the findings presented in the staff report for application 23147, and move to provisionally adopt Ordinance 2131. Report: June 22, 2023 Staff Contact: Nakeisha Lyon, Associate Planner Agenda Item Type: Action – Legislative 23147, Staff Report for Short Term Rental Hosting Platform Obligations ZTA Page 2 of 15 TABLE OF CONTENTS EXECUTIVE SUMMARY ...................................................................................................... 2 Project Summary ................................................................................................................. 2 Unresolved Issues ............................................................................................................... 3 Public Comment.................................................................................................................. 3 Community Development Board ........................................................................................ 4 Alternatives ......................................................................................................................... 4 SECTION 1 - RECOMMENDATION AND FUTURE ACTIONS ........................................ 4 SECTION 2 - TEXT AMENDMENT STAFF ANALYSIS AND FINDINGS ....................... 5 Section 76-2-304, MCA Zoning Regulations Criteria (A-K) ............................................. 5 PROTEST NOTICE FOR ZONING AMENDMENTS ......................................................... 12 APPENDIX A - DETAILED BACKGROUND AND PROJECT DESCRIPTION .............. 12 APPENDIX B - NOTICING AND PUBLIC COMMENT .................................................... 14 APPENDIX C - APPLICANT INFORMATION AND REVIEWING STAFF .................... 15 FISCAL EFFECTS ................................................................................................................. 15 ATTACHMENTS ................................................................................................................... 15 EXECUTIVE SUMMARY This report is based on the proposed ordinance text and public comment received to date. Project Summary Starting in July 2016, The Bozeman City Commission began considering issues related to short term rentals (STRs) within our community. This ultimately led to the adoption of Ordinance 1974, which constitute the current standards for STRs denoted in Section 38.360.260 of the BMC. These standards set forth where STRs are allowed to locate based on type, and require STR hosts to register their rental with the City of Bozeman (City) prior to operation, and to submit annual renewals. Such registration includes submittal of information, payment of a registration fee, and completion of a safety inspection prior to city approval. Since the adoption of these provisions, the prevalence of STRs has increased, and monitoring of online listings has revealed a significant number of unregistered STRs. The City has undertaken enforcement efforts to bring more STRs into compliance; these efforts are time-consuming and costly for city staff. 23147, Staff Report for Short Term Rental Hosting Platform Obligations ZTA Page 3 of 15 Since 2020, the City Commission has received several public comments regarding STRs from residents, primarily expressing concerns related to long-term rental availability in Bozeman. Comments received from hosts and property management companies largely focused on a desire for better enforcement of non-compliant STRs, while calling attention to the role of STR income in hosts’ ability to meet their mortgage responsibilities and financial security. In an effort to balance these factors among other housing concerns, the City Commission approved the Bozeman Community Housing Action Plan in November 2019, with amendments in January 2020. This Action Plan recommends on-going evaluation of regulatory policies related to STRs. Based on these recommendations, the Bozeman City Commission held a work session in August 2022 to discuss short term rentals. Within this work session, the City Commission directed staff to update STR regulations in two phases. The first phase included drafting an Ordinance regulating short term rental hosting platforms as one measure to increase compliance with existing regulations and to require regular reporting to obtain more information about STRs in Bozeman. The second phase will include analysis of the STR types and where they are allowed. As drafted, Ordinance 2131 (Attachment 1) implements the first phase – regulating hosting platforms and other measures to increase compliance with existing regulations. It revises the STR regulations within Sec. 38.360.260 to include obligations for hosting platforms such as hosting permit requirements for booking transactions, quarterly reporting requirements, and violation and enforcement provisions regarding the removal of listings from hosting platforms without a hosting permit. The proposed revisions also include administrative changes to improve compliance and support enforcement, such as changing the term “registration” to “permit”, allowing the City to issue administrative subpoenas to obtain information, requiring hosts to disclose on which platforms they have listed the STR, requiring regular safety inspections of STRs every three years, and imposing specific civil penalties for a violation. Unresolved Issues None. Public Comment Written public comment will be archived and available through the project folder in the City’s Laserfiche archive. Comments provided orally at public meetings will be available through the recordings of those public meetings. Links to recordings will be added to this report as the review of the project moves forward. One written comment and three oral comments specific to this amendment have been received to date. Comments regarding this amendment include: 23147, Staff Report for Short Term Rental Hosting Platform Obligations ZTA Page 4 of 15 1. Concerns regarding previous title of item on Community Development Board agenda being misleading. 2. Concerns regarding the safety inspection requirement every three years by the Fire Department. (See additional information on page 8). 3. Concerns regarding data collection and reporting requirements of Ordinance 2131. 4. Concerns regarding public engagement with STR hosts for drafting Ordinance 2131. Community Development Board The Community Development Board (CDB) met on June 5, 2023 to consider the proposed amendments. The video recording of the meeting is available through the City’s website. Discussion of the amendment begins at 7:28 in the recording. Questions to staff begin at about 19:22 and board discussion at 1:04:19. Three oral public comments were received. The Board voted 7-0 to recommend approval of the ordinance as written. Discussion and concerns of the CDB included: 1. Overall support for Ordinance 2131 and the two-phased approach to short term rental regulation changes. 2. Concerns regarding previous title of item on agenda being misleading. 3. Concerns regarding the safety inspection requirement every three years by the Fire Department. (See additional information on page 8). 4. Concerns regarding data collection and reporting requirements of Ordinance 2131; ensuring requested data is necessary for improved compliance. Alternatives 1. Recommend ordinance not be approved based on findings of non-compliance with the applicable criteria contained within the staff report; 2. Recommend amendments prior to adoption; or 3. Open and continue the public hearing on the application, with specific direction to staff to supply additional information or to address specific items. SECTION 1 - RECOMMENDATION AND FUTURE ACTIONS Having considered the criteria established for a text amendment, the Staff finds the amendments meet the minimum criteria for approval as proposed. The Community Development Board in their capacity as the Zoning Commission held a public hearing on these amendments on June 5, 2023, at 6 pm. The board recommended the amendment be adopted. The City Commission will hold a public hearing on the text amendment on June 27, 2023 at 6:00 p.m. and decide whether the proposed amendments should be codified or not. 23147, Staff Report for Short Term Rental Hosting Platform Obligations ZTA Page 5 of 15 SECTION 2 - TEXT AMENDMENT STAFF ANALYSIS AND FINDINGS In considering applications for amendment approval under this title, the advisory boards and City Commission must consider the following criteria (A-D) and guidelines (E-K). As an amendment is a legislative action, the Commission has broad latitude to determine a policy direction. A zone text amendment must be in accordance with the growth policy (criteria A) and be designed to secure safety from fire and other dangers (criteria B), promote public health, public safety, and general welfare (criteria C), and facilitate the provision of transportation, water, sewerage, schools, parks and other public requirements (criteria D). Therefore, to approve a zone text amendment the Commission must find Criteria A-D are met. In addition, the Commission must also evaluate guidelines E-K as factors for consideration, and may find the zone text amendment to be positive, neutral, or negative with regards to these considerations. To approve the zone text amendment, the Commission must find the positive outcomes of the amendment outweigh negative outcomes for guidelines E-K. In determining whether these criteria and guidelines are met, Staff considers the entire body of plans and regulations for land use and development. Standards which prevent or mitigate negative impacts are incorporated throughout the entire municipal code but are principally in Chapter 38, Unified Development Code. The existing municipal code provisions regulating STRs were, at the time of adoption, found to satisfy all of the required criteria. As such, the focus of this report is only on the amendments proposed. Where a finding of neutral is presented, it represents that the criteria or guideline has been considered and the change does not materially advance or detract from compliance. Therefore, a finding of neutral is not necessarily an indication of a deficiency in the proposed amendments or the existing standards. Section 76-2-304, MCA Zoning Regulations Criteria (A-K) Zoning regulations must be: A. Be in accordance with a growth policy. Yes, criterion is met. The proposed amendments are in conformance with the growth policy. As the growth policy provides a high level vision of how a community hopes to develop over time, it does not dictate uses or specific standards to the level of detail contained in this ordinance. However, it does identify issues and priorities for consideration with specific goals and objectives that are desired outcomes. The Bozeman Community Plan 2020 (BCP2020), adopted in November 2020, establishes the City’s policies for growth and regulation of land uses and development. It continues concepts and community priorities that were established in several prior growth policies. Prior growth policies encouraged creation of development standards that supported predictable review processes and addressed areas of community concerns. 23147, Staff Report for Short Term Rental Hosting Platform Obligations ZTA Page 6 of 15 The BCP2020 includes the following relevant goals and objectives: R-1.1 Be reflective: use past experience to inform future decisions. R-1.7 Be flexible: willingness and ability to adopt alternative strategies in response to changing circumstances. R-2.5 Technical Soundness: Identify solutions that reflect best practices that have been tested and proven to work in similar local or regional contexts. DCD-4.1 Implement a regulatory environment that supports the Community Plan goals: Ensure that the Planning Department is supported with the resources required to effectively implement this plan, to dedicate staff to long range and regional planning efforts, and to process development applications expeditiously. With the increased prevalence of STRs within our community, the amount of unregistered STRs has become a time-consuming and costly challenge for city staff to monitor and address. In accordance with goal R-1.1, the City continues to be reflective in its discussions regarding the existing regulation of STRs in order to inform policy decisions that are appropriate in addressing code compliance issues. Based on the discussion between staff and City Commission during the Short Term Rental Work Session, platform compliance is one unique policy option to help improve and increase compliance with existing regulations by placing more of a burden for compliance on the booking platforms. The proposed amendments to Sec. 38.360.260 establish platform liability which gives the City the right to enforce and enact rules and ordinances that penalize hosting platforms that do not comply with these regulations. The specific obligations on hosting platforms include that each STR listing must include the City’s STR permit number prior to the occurrence of a booking transaction, and hosting platforms are responsible for removing unregistered STR listings from their software or portals to prevent the booking of unregistered STRs when the platform knows or should know that the host is not in compliance with City regulations. These proposed amendments strengthen enforcement mechanisms within the City’s STR program to ensure platforms, hosts, and operators are in compliance with local regulations. The proposed amendments demonstrate a willingness to adopt alternative strategies in response to changing circumstances as it relates to STRs within our community per goal R- 1.7. With the rise in utilization of online booking agencies that facilitate STR transactions such as AirBnB, HomeAway, and VRBO, municipalities across the nation have successfully implemented affirmative obligation ordinances similar to Ordinance 2131 in order to verify that homes offered as STRs are lawfully registered in accordance with applicable regulations. The ability to identify a solution that aligns with national best practices and has worked in jurisdictions with similar local and/or regional contexts per goal R-2.5 is also demonstrated by the proposed amendments. Staff has reviewed the STR programs, ordinances, and hosting obligation regulations of over a dozen municipalities as denoted within Attachment 2 in order to draft Ordinance 2131 which incorporates best practices for hosting obligation 23147, Staff Report for Short Term Rental Hosting Platform Obligations ZTA Page 7 of 15 regulations that serve to improve compliance and the ability to enforce regulations on platforms, owners, and operators within our community. By meeting the three abovementioned goals, the City also is able to further goal DCD-4.1 which strives to implement regulatory environment that supports the Community Plan goals by ensuring the Planning Department is supported with the resources required to effectively implement this plan, to dedicate staff to long range and regional planning efforts, and to process development applications expeditiously. The inclusion of obligations for hosting platforms provides the necessary mechanisms needed for compliance by the Code Enforcement Division under Community Development by allowing for a more proactive administrative enforcement tool rather than only to assess violators after the fact. The ability for violations to be placed on both hosts and hosting platforms alike promotes increased awareness of local regulations and strengthens chances of compliance. These proposed provisions also encourage hosting platforms to work closely with the City in order to ensure listed STRs are in compliance and provides accurate STR reporting for comparison and analysis against the City’s current monitoring and tracking software. The proposed amendments furthers all four of the abovementioned goals by including specific hosting permit and administrative changes to the existing regulations to provide a more effective overall STR program. These proposed amendments improve the safety inspection requirements associated with the STR hosting permit application process to create a self-certification process for annual renewals, and a required three year fire inspection after the initial application for active STRs. The incorporation of language regarding affordable housing incentives and affordability covenants has also been included to ensure that dwellings built under these affordability provisions may not be used as a STR. Additionally, language to more effectively administered the program, remove redundancies, and clarify provisions regarding renewal of a STR hosting permit, termination of the use of a STR and procedures for lapsed STR hosting permits have been included. Finally, the level of detail associated with the text amendment is beyond the specificity found and intended in the Community Plan. No element of the proposed ordinance affects the future land use map as the process amendments do not change land use designations or zoning district boundaries. Therefore, no analysis of correspondence to the future land use map is provided. B. Secure safety from fire and other dangers. Yes, criterion is met. Initial inspections by the City’s Fire department help ensure that locations are safe to be used as a short term rental. As denoted in Sec. 38.360.230.H.3, a fire inspection is required prior to the issuance of a hosting permit. As proposed with this ordinance, subsequent inspections will occur every three years by the City’s Fire department with a self-certification of compliance required during the years in which an inspection is not required as part of the annual renewal of a STR hosting permit. If a permit lapses for any 23147, Staff Report for Short Term Rental Hosting Platform Obligations ZTA Page 8 of 15 period of time, a new fire inspection is required upon reapplication for a STR hosting permit. Additionally, upon evidence of non-compliance, the City’s Fire Marshal may require a fire inspection as deemed necessary. For example, STRs which lack adequate egress from sleeping areas, fire suppression or access, or compliance with other adopted safety standards will not be approved. Discussion by the Board and public comments received on this text amendment at the CDB hearing expressed concerns on the new three year safety inspection requirement stating a lack of justification for this requirement and increased cost to STR operators. The board also questioned whether this requirement is more stringent than safety inspections associated with hotels or motels, wanting to ensure if STRs are not being held to a higher level of scrutiny. The incorporation of a three year safety inspection requirement for active STRs is based on the expertise of the Fire Marshall and Fire Inspectors whom perform these inspections. Many requirements of the City’s fire safety inspection checklist require ongoing maintenance (i.e. smoke detectors and fire extinguishers in operable condition), or may be damaged by guests. This change will allow the Fire Department to better ensure that compliance with fire and safety codes continues after the initial inspection of the STR in order to reduce safety hazards. Regarding inspections of hotels and motels, the Fire Department performs annual inspections on these establishments. As a commercial lodging use, hotels and motels are built to a higher life safety standard than a residential dwelling unit because transient guests are not expected to learn the patterns and functions (such as egress routes) of a structure on a permanent basis. As short-term rentals do involve renting to transient guest, but may also involve longer residential use between rentals, the Fire Department believes inspections every three years will help ensure safe conditions while not being as onerous as the annual inspections required of hotels and motels. All applicable development standards and building code standards for fire resistance, exiting, and other protections remain in place and are applicable to receive a short tern rental permit. Building and fire standards and codes are designed to mitigate impacts, provide a safe environment, and protect from various dangers. Please see response to Criterion C also. C. Promote public health, public safety, and general welfare. Yes, criterion is met. The existing standards addressing this criterion remain in place such as floodplain protections, provision of water and sewer services, and similar. Standards remain for setbacks, light and air, emergency services, and other issues to protect public health and physical safety. In addition to the fire inspection required prior to STR hosting permit approval and issuance, the Health Department’s implementation of state law requires a public accommodation license for all STRs. A public accommodation license requires an inspection from a local sanitarian which addresses health and safety standards applicable to this use per Montana Code Annotated § 50-51-301. Any structure which does not pass these inspections 23147, Staff Report for Short Term Rental Hosting Platform Obligations ZTA Page 9 of 15 will not be allowed a STR permit. The City continues to coordinate its review process for STRs with the Health Department to ensure that all required inspections have been passed prior to approval of use of an STR. Sec. 38.360.230.K.1 includes additional suspension, revocation, and administrative and civil remedies regarding the operation of a short term rental that may fail to comply with the Bozeman Municipal Code; create a public nuisance or breach of peace, cause danger to public health, safety, welfare, or morals; cancellation of any associated licenses or registrations; and securing a STR permit by fraud or misrepresentation. Civil penalties denoted in Sec. 38.360.230.K.3 may be applicable to any violation not to exceed $500.00 per day per violation which is applicable to an owner of any STR and a hosting platform. Additional standards within the BMC remain unchanged by this ordinance; including a previously adopted noise ordinance to ensure adequate public safety and a healthy environment. Applicable noise standards are in Chapter 16, article 6, as applicable. See also responses to Criteria B and D. D. Facilitate the adequate provision of transportation, water, sewerage, schools, parks and other public requirements. Yes, criterion is met. Standards for the provision of municipal transportation, water, sewerage, schools, parks, and other public requirements are not being altered with this ordinance. STRs are the use of an existing dwelling within a residential or non-residential zoning district. All dwellings must demonstrate adequacy of services at the time of site- specific development review. The use of a residence as a STR does not materially change the essential use of the property, demand for services, or the physical characteristics of the residential use as it applies to this criterion. Therefore, any proposed STR has previously demonstrated compliance with public requirements. Additionally, billing for sewer or water consumption will follow standard practice and offset public expenses. The city shall also consider: E. Reasonable provision of adequate light and air. Yes, criterion is met. No changes within these amendments impact basic standards for setbacks, maximum building height, dedication of parks, on-site open spaces, or similar standards The City’s development standards and building code ensure adequate provisions of light and air through window and air circulation/venting provisions, as well as building setbacks. The maximum occupancy standards for each STR type remain within Sec. 38.360.260.I. 3 & 4 in order to limit excessive occupancy within a residence. Considering the code as a whole, the standards listed in this criterion are not being changed with these amendments. These amendments serve to support and reinforce the existing standards applicable to this criterion, therefore the standard continues to be met. F. The effect on motorized and non-motorized transportation systems. 23147, Staff Report for Short Term Rental Hosting Platform Obligations ZTA Page 10 of 15 Yes, criterion is met. No changes within these amendments impact basic standards for parking, sidewalks, dedication of right of way, provision of and construction of streets, or similar standards. Transportation impacts and parking compliance are addressed at the time of site-specific development review through an associated planning application and/or building permitting process. During the application process for a STR hosting permit, the number of provided off-street parking spaces available for guests’ use must be demonstrated. Considering the code as a whole, the standards listed in this criterion are not being changed with these amendments. These amendments serve to support and reinforce the existing standards applicable to this criterion, therefore the standard continues to be met. G. Promotion of compatible urban growth. Yes, criterion is met. An STR is a use of a previously approved dwelling. Any zoning district that allows homes has been reviewed and found to be consistent with this criterion. These amendments do not change any development standard which would relate to urban growth within the City nor impede on the expansion of the City through urban development practices. Existing standards have been adopted by the City to identify and avoid or mitigate demonstrable negative impacts of urban growth within the applicable subdivision review processes, site plan applications, and/or building permitting processes. Therefore, considering the code as a whole, the standards listed in this criterion are not being changed with these amendments and therefore the standard continues to be met. H. Character of the district. Yes, criterion is met. All zoning districts provide for a variety of principal and conditional uses which vary by intensity and likely size dependent upon the intention of the district. No single use defines the entirety of any zoning district. Residences, in some form, are a principal use within all residential zoning districts. Within commercial, mixed use, and industrial zoning districts, residential uses may be a principal, special or accessory use. Short term rentals (STRs) are a form of a residential use and were previously determined to be consistent with the overall character of each district at the time the adoption of Ordinance 1974. As the proposed “affirmative obligations” ordinance does not change where STRs are allowed, this criterion remains met. Structures that contain a STR must abide by the same physical standards for setbacks, building heights, lot coverage and others which apply in each zoning district. The inclusion of hosting platform obligations within Sec. 38.360.260.J adds reporting requirements for hosting platforms to provide STR information to the city and obligates hosting platforms to remove listings in violation per Sec. 38.360.260.J in addition to other enforcement provisions within Sec. 38.360.260.K previously mentioned within criterion C. These reporting and enforcement measures will enable better compliance with city requirements and will serve to support the maintenance of the character of each zoning district. The combination of uses and other characteristics remain intact and were previously found to be consistent with this 23147, Staff Report for Short Term Rental Hosting Platform Obligations ZTA Page 11 of 15 criterion. These amendments serve to support and reinforce the existing standards applicable to this criterion, therefore the standard continues to be met. I. Peculiar suitability for particular uses. Yes, criterion is met. Any zoning district that allows homes and STR has been reviewed and found to be consistent with the criterion. The proposed amendments do not change any zoning districts, boundaries, or uses within the land development regulations. STRs are the use of an existing dwelling within a residential or non-residential zoning district which have previously been found to be appropriate based on their location and conformance with existing standards. The authorized use tables which denote the types of STRs allowed within the City are not changing with this ordinance, and have been previously reviewed for consistency with the intent and purpose of individual districts and found to be appropriate. These proposed amendments revise the text only and not the zoning map. Placing affirmative obligations on STR hosting platforms will support compliance with all laws and should result in removal of listings of STRs that are not in compliance with laws. These measures will help the City better be able to monitor the compliance of active STRs and ensure the regulatory requirements are being met which were relied upon in finding zoning consistent with this criterion. Therefore, considering the code as a whole, the standards listed in this criterion are not being changed with these amendments and therefore the standard continues to be met. J. Conserving the value of buildings. Yes, criterion is met. The proposed amendments do not change any districts or uses which would cause buildings to become non-conforming to the district in which they are located. The hosting platform obligations for STRs do not alter the standards for building location, size, or other physical development standards. The existing standards for STRs offset or prevent the physical effects of their use. Adequate services such as parking and utilities must be provided prior to approval of a hosting permit. Considering the code as a whole, the standards listed in this criterion are not being changed with these amendments. These amendments serve to support and reinforce the existing standards applicable to this criterion, therefore the standard continues to be met. K. Encourage the most appropriate use of land throughout the jurisdictional area. Yes, criterion is met. The proposed amendments do not alter the allowed uses in zoning districts nor growth policy designations adopted in the Community Plan 2020. The zoning map and future land use map of the growth policy identify areas where specific uses, such as varying forms of residences, are generally appropriate. The use of a dwelling as a STR has been previously found to be an appropriate use and has similar impacts to other uses allowed in the zoning districts as denoted in Criterion H. The types of STRs allowed remain unchanged with this ordinance. As both the zoning map and future land use map do not authorize construction of residences, the existing site specific development processes serve to evaluate the appropriateness of a use 23147, Staff Report for Short Term Rental Hosting Platform Obligations ZTA Page 12 of 15 of land in this regard and ensure the use conforms to the necessary development standards. These standards will continue to be required, therefore, if a dwelling has not already been approved and deemed appropriate for an area, a STR will not be allowed under this ordinance. The proposed amendments do change the review process for a STR and includes additional obligations for hosting platforms which provide specific violation processes to help ensure that this criterion is met. PROTEST NOTICE FOR ZONING AMENDMENTS IN THE CASE OF WRITTEN PROTEST AGAINST SUCH CHANGES SIGNED BY THE OWNERS OF 25% OR MORE OF THE AREA OF THE LOTS WITHIN THE AMENDMENT AREA OR THOSE LOTS OR UNITS WITHIN 150 FEET FROM A LOT INCLUDED IN A PROPOSED CHANGE, THE AMENDMENT SHALL NOT BECOME EFFECTIVE EXCEPT BY THE FAVORABLE VOTE OF TWO-THIRDS OF THE PRESENT AND VOTING MEMBERS OF THE CITY COMMISSION. The City will accept written protests from property owners against the proposal described in this report until the close of the public hearing before the City Commission. Pursuant to 76-2-305, MCA, a protest may only be submitted by the owner(s) of real property within the area affected by the proposal or by owner(s) of real property that lie within 150 feet of an area affected by the proposal. The protest must be in writing and must be signed by all owners of the real property. In addition, a sufficient protest must: (i) contain a description of the action protested sufficient to identify the action against which the protest is lodged; and (ii) contain a statement of the protestor's qualifications (including listing all owners of the property and the physical address), to protest the action against which the protest is lodged, including ownership of property affected by the action. Signers are encouraged to print their names after their signatures. A person may in writing withdraw a previously filed protest at any time prior to final action by the City Commission. Protests must be delivered to the Bozeman City Clerk, 121 North Rouse Ave., PO Box 1230, Bozeman, MT 59771-1230. As of the writing of this report, no written protest against the changes have been received. APPENDIX A - DETAILED BACKGROUND AND PROJECT DESCRIPTION The City Commission spent considerable time on the regulation of STRs in 2016 and 2017 culminating in the adoption of Ordinance 1974 (creating the current standards for STRs found in the Bozeman Municipal Code in Sec. 38.360.260). The City Commission received a memo from the Economic Development Department prior to the Short Term Rental Work Session on August 9, 2022 which has a detailed background of the history of the Commission’s discussion and direction on STRs, the regulatory structure of the City’s 23147, Staff Report for Short Term Rental Hosting Platform Obligations ZTA Page 13 of 15 existing STR policies, and any previous public outreach and research conducted. This work session was held with the Commission to discuss short term rentals and their influence on the local housing market and affordability. During this discussion, staff presented several policy options for consideration by the City Commission. This included policies regarding enhancing STR compliance, analyzing the cost of services for administration of the STR program, further researching potential impacts on limiting STRs by zoning districts or types, and other regulatory methods. The City Commission supported improving compliance of STRs with existing regulations by placing more of the burden for compliance on the STR hosting platforms. Placing affirmative obligations on STR hosting platforms, like Airbnb and VRBO, require compliance with all laws, remove listings of STRs that are not in compliance with laws, include the City permit number and the permit for all STR listings, and provide a quarterly report to the City about STRs listed on their platforms within City limits. These measures will help the City better be able to monitor the compliance of active STRs and ensure the regulatory requirements are being met. Based on this discussion, 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. Since this direction was given, Staff has conducted additional research in evaluating how imposing affirmative obligations on hosting platforms has been implemented and functions in other communities, other hosting platform responsibilities, and recommendations for the City Commission to consider which is detailed in Attachment 2. This memorandum provides four key recommendations that the City should pursue which have been incorporated into Ordinance 2131. In addition to the City Commission’s direction to draft this Ordinance, staff was also directed to engage with STR owners about potential interest to convert STRs into long term rentals (LTRs) in order to gather feedback on motivations, incentives, and barriers to converting STRs to LTRs. This focus group was held on January 18, 2023 between city staff from Communications, Legal, Planning Division, and Community Housing Program and 13 STR owners. Further details on these discussions are provided in Attachment 3. One of the main concerns denoted within these discussions focused on the lack of enforcement and compliance with existing STR regulations. With these priorities and discussions in consideration, Ordinance 2131 revises the STR regulations within Sec. 38.360.260 to include obligations for hosting platforms and administrative changes to improve compliance and enforcement as discussed below: Enforcement • Inclusion of Sec. 38.360.030.J. Hosting Platform Obligations o Quarterly reporting requirements of hosting platforms to the City of Bozeman  Reports to include; addresses of STRs that have conducted a booking transaction, the name of the owner or responsible person associated 23147, Staff Report for Short Term Rental Hosting Platform Obligations ZTA Page 14 of 15 with said booking transaction, length of stay for said booking transaction, and price paid for said booking transaction o Requirement of the city STR permit number prior to booking transaction. o Duty to remove STR listings which are in violation of these provisions and others within the Bozeman Municipal Code • Inclusion of Additional Violation Opportunities o Addition of City’s ability to impose administrative remedies and civil action proceedings o Addition of civil penalties to be recovered on a violation by an owner or hosting platforms Hosting Permit • Language change from STR Registration to STR Hosting Permit • Changes to Safety Inspections o Inclusion of fire inspections every three years after initial for an active STR o Self-certification on an annual basis • Removal of noticing requirements for Type 2 STRs • Removal of City requirement to maintain an online listing of all STR Hosting Permits • Clarification on renewal process, termination of use, and requirement for new hosting permit if lapsed Administrative Changes • Residences receiving affordable housing incentives and under affordability covenants may not be used as a STR • Inclusion of application to include all hosting platforms in which the STR will be listed • Addition of ability of the City to issue administrative subpoenas if necessary to obtain information regarding a STR or booking transaction Definitions • Inclusion of booking transaction definition • Expansion on hosting platform definition • Inclusion of evidence to be provided for owner occupancy • Removal of furnishing characteristic related to transient occupancy APPENDIX B - NOTICING AND PUBLIC COMMENT Notice for text amendments must meet the standards of 38.220.410 & 420. Notice was published in the Bozeman Daily Chronicle on 5/20/2023, 6/03/2023, and 6/17/2023. These notices contain all required elements. Notice was provided at least 15 days before the public hearing conducted by the Community Development Board in their capacity as the Zoning Commission, and not more than 45 days prior to the City Commission public hearing. Hearing dates are on the first page of this report. 23147, Staff Report for Short Term Rental Hosting Platform Obligations ZTA Page 15 of 15 One written public comment and three oral public comments ha been received so far on this Ordinance. Comments are available through the Laserfiche archive and the video recording of the CDB meeting starting at 54:23. Comments regarding this amendment include: 1. Concerns regarding previous title of item on agenda being misleading. 2. Concerns regarding the safety inspection requirement every three years by the Fire Department. (See additional information on page 8). 3. Concerns regarding data collection and reporting requirements of Ordinance 2131. 4. Concerns regarding public engagement with STR hosts for drafting Ordinance 2131. APPENDIX C - APPLICANT INFORMATION AND REVIEWING STAFF Applicant: City of Bozeman, PO Box 1230, Bozeman, MT 59771 Representative: Department of Community Development, City of Bozeman, PO Box 1230, Bozeman, MT 59771 Report By: Nakeisha Lyon, Associate Planner FISCAL EFFECTS None at this time related to this Amendment. ATTACHMENTS The full application and file of record can be viewed at the Community Development Department at 20 E. Olive Street, Bozeman, MT 59715. Attachment 1: Draft Ordinance 2131 Attachment 2: STR Affirmative Obligations Memo - January 3, 2023 Attachment 3: Short Term Rental Focus Group Summary - February 7, 2023