Short-Term Rentals Community Open House City of Salem Planning - PowerPoint PPT Presentation

Short-Term Rentals Community Open House City of Salem Planning Division February 1, 2017

Background Why are we here tonight?   Discuss proposed amendments relating to short-term rentals.  Receive public input. Why are the amendments needed?   Increasing demand of home-sharing ( websites like Airbnb, FlipKey, VRBO, HomeAway, etc.).  Allows source of supplemental income for residents.  Allows increased lodging opportunities.  Cities across country are allowing this form of lodging.  Salem’s code in need of update.  Will allow collection of additional TOT tax.

What are Short-Term Rentals? Residential dwelling units rented  on short-term basis. Can take variety of forms.   Bed & Breakfasts  Vacation Rentals  Home-Sharing Can be operated in variety of  dwelling unit types.  Single family dwellings.  Duplexes.  Multi-family buildings.

Short-Term Commercial Lodging Short-Term Commercial Lodging Hotels, Motels, Inns, B&Bs, Home-Sharing, Vacation Rental, Bed & etc. Breakfasts Single Family dwellings w/morning meal Home-Sharing & Vacation Rentals Houses, dwellings, guestrooms, and shared rooms 2

What’s Currently Allowed? Flexible Zone Districts Short-Term  Most Commercial, Mixed-Use, & Commercial Lodging Industrial zones (Permitted Use) Bed & Breakfasts Multi-Family & Mixed-Use zones;  (Permitted Use) Commercial Office (CO) Zone Bed & Breakfasts  Single-Family zones (RA, RS, & (Conditional Use) RD) Focus of Amendments Limited 2

Purpose and Goals of Amendment Update code to address increasing  demand for home-sharing Simplify approval process  Promote neighborhood compatibility  Preserve City’s needed housing  supply Support tourism in Salem  Promote equity  Clear, simple, & enforceable  standards 5

What Do Other Cities Allow? Variety of other cities examined.  Mix of different terms and variety of different  approaches used. Oregon Examples: Portland, Bend, Lincoln City  Portland:   Up to 2 rooms with permit.  3 to 5 rooms with Conditional Use approval.  6 or more rooms not allowed in residential zones.  Must be operated by owner of renter who lives there.  Entire home can be rented for limited period.  Guestroom safety and inspections required. 4

Other Cities (continued) Bend:   Up to 2 rooms (owner occupied) with permit.  Rented less than 30 days per year with permit.  250-foot separation requirement for certain types.  Parking = 1 space per bedroom. Lincoln City:   Vacation rentals (entire home) with land use review and license approval.  Owner may not operate more than one vacation rental.  Vacation rental zoning applied in some areas.  Bed & breakfast up to 2 rooms (owner occupancy required).  Parking = 1 space per bedroom  Guestroom safety and inspections required.

What Do Other Cities Allow? (continued) Common Themes:   License and/or permit and land use approvals required.  Limits on number of rooms.  Limits on number of guests.  Ownership requirements.  Parking required.  Safety requirements and inspections.  Payment of TOT tax. 4

Proposed Amendment - Overview Introduces Flexibility.  Short-Term  Allows small-scale short-term rental Rental activities without Conditional Use Approval (Accessory Short-Term Rental) . Accessory Promotes Safety and Ensures Level  Short-Term Playing Field. Rental  License required.  Safety inspections.  Payment of TOT tax.

Amendment Overview (continued) Maintains Protection of Neighborhoods.   Short-term rentals allowed without Conditional Use permit limited: Resident operator required. • Max. limit on guestrooms & guests. • Min. off-street parking required. •  Conditional Use process maintained for other short-term rentals. Preserves Housing Supply.   Limits types of dwelling units used for short-term rentals.

Short-Term Rental Modified Bed & Breakfast.   Definition expanded to include condo units.  Morning meal no longer required. Allowed in same zones where B&Bs are currently allowed.  Zones Allowed No Change Conditional Use RA, RS, & RD Multi-Family, Commercial, & some Permitted Use Industrial Zones Conditional Use Review   Allows for conditions to be placed on use to minimize potential impacts. Parking: Min. 1 space per guestroom.  License Required. 

Accessory Short-Term Rental A Limited Form of Short-Term Rental.  Zones Allowed Special Use RA, RS, RD, FMU (LI Area), & PM Permitted Use Zones where Short-Term Rentals are permitted. Special Use Standards (SRC Chapter 700):   Accessory to Single Family or Two Family Use (condo units included) .  Operated by “resident family”.  Must live there a minimum 270 days per year.  May be hosted or non-hosted (with limits).  Located within a lawfully approved dwelling unit.  Cannot be operated in conjunction with other accessory uses: • ADUs, Guest Houses, Taking of Boarders/Leading of Rooms  Can only be used for lodging . Parking: Min. 1 space per guestroom.  License Required. 

License Requirements Annual license required (SRC Chapter 30):  Short-Term Accessory Short- License Requirements Rental Term Rental Guest Registry Payment of Transient Occupancy Tax Liability Insurance Safety Requirements -Accessory short-term rental requirements -Multi-family licensing requirements Yearly Inspection Inspection not required if applicant certifies no changes have been made to guest rooms and on-site parking.

Next Steps  Refinement of Amendments & Drafting Ordinance  Planning Commission  Public Hearing (March 7, 2017) • Consider public comments. • Make recommendation to City Council.  City Council:  First Reading of Ordinance.  Council Public Hearing (Optional) .  Second Reading of Ordinance.  Ordinance Effective. (Target: May 2017) 6

Questions? 7