Memorandum
City of Lawrence
City Manager’s Office
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TO: |
Thomas M. Markus, City Manager |
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FROM: |
Danielle Buschkoetter, Management Assistant |
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CC: |
Scott McCullough, Planning & Development Services Director Randy Larkin, Senior Assistant City Attorney Brian Jimenez, Code Enforcement Manager Jeff Crick, Planner |
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DATE: |
November 14, 2017 |
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RE: |
Short-Term Rental Work Session
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Background
On February 21, 2017, at the request of the city commission, staff submitted a research report that highlighted decision points related to the regulation of the short-term rental (STR) industry. The report outlined the benefits and concerns associated with homesharing, noted how other communities are addressing this growing industry, and reported on the zoning code regulations that the City of Lawrence currently has in place which prohibits their use. Finally, the report provided two options for the City to take moving forward: (1) maintain the prohibition of all STRs and address complaints as they are submitted, or (2) regulate STRs through zoning code changes and policies that mitigate the potential negative impacts.
During development of the report, staff received a few complaints and advised all parties involved that the matter was pending before the city commission. Enforcement was not actively pursued during this time. Since the development of the report, a few additional STR complaints have been received. In August, staff began to pursue enforcement of violations of the Development Code on a complaint basis.
Additionally, staff began to pursue development of a framework to regulate STRs. There was a public meeting held September 26, 2017 which marked the beginning of the public input process. There were approximately 30-40 community members and stakeholders that attended the meeting. Furthermore, an online survey was available through Lawrence Listens. There were 202 survey responses and 10 people or associations submitted written letters expressing their opinions on STRs.
Staff has developed a recommended framework for regulating STRs that was influenced by the public input staff received. There are no best practices for STR regulations, each municipality should develop regulations that are right for the community based on many factors including public input, staff’s recommendation, and City Commission discussion.
Proposed STR Framework
The proposed framework aims to balance the desires of STR operators while mitigating negative impacts. Staff also recognized that enforcement can be difficult and brought forward a framework that can be enforced and implemented within the current staffing levels.
1. STR permitted in all zoning districts that allow residential uses.
a. Staff is recommending that STRs be permitted in single and multi-dwelling districts.
b. After further review, staff is recommending that a distinction be made between owner occupied units and non-owner occupied units. All owner occupied units would follow the framework set forth in STR regulations while all non-owner occupied units would be required to follow the regulations set forth for traditional bed & breakfasts. Therefore, non-owner occupied STRs would be required to obtain a Special Use Permit (SUP).
2. Collection of Transient Guest Tax and Sales Tax.
a. STR hosts are responsible for ensuring that all applicable taxes are collected and remitted. Airbnb has signed an agreement with the State of Kansas to collect and remit all local and state taxes. However, the other platforms have not yet reached such an agreement and therefore that responsibility would fall to the operator of the STR.
3. Annual license and fee.
a. The annual license and fee is proposed to be similar to the Rental Licensing and Inspection Program. The license fee is anticipated to be $25 per unit. The fees are set to recover the costs associated with processing the request.
4. Annual inspection and fee.
a. The annual inspection and fee is proposed be similar to the Rental Licensing and Inspection Program. The inspection fee is anticipated to be $50 per unit. The fees are set to recover the costs associated with processing the request.
5. Proof of insurance.
a. Staff are recommending that STR operators be required to show proof of insurance in the event that an issue were to arise. It should be noted that Airbnb does provide some level of insurance for the STR operator, however that is not a universal practice among all STR platforms.
6. Conform with current occupancy standards.
a. Current occupancy standards would apply to STRs. That means in a single-dwelling, residential (RS) district a maximum of three (3) unrelated occupants are permitted. In a multi-dwelling, residential (RM) district a maximum of four (4) unrelated occupants are permitted. There are exceptions to this for congregate living, motel, hotel, bed & breakfast, dormitory, fraternity/sorority, and group homes. It should be noted that for a traditional bed & breakfast to be exempt from the occupancy standards they must apply for and be granted a special use permit.
7. Local contact person.
a. There must be a local contact person to receive notices and attend to issues as they arise. If the owner lives more than 40 miles outside of City limits, a resident agent is required that lives within 40 miles of City limits.
8. Notice to neighbors.
a. Staff are also recommending that a notification be sent out to owners of property within 400 feet of the STR as well as to registered neighborhood associations. The notice would be similar to Type B Home Occupation notices (e.g. tutoring, hair salon, accounting services). It would provide general information about STRs and how to file a complaint if an issue were to arise. Additionally, the notice would reflect that there is no right to appeal the STR use.
Action Requested
The City Commission should discuss the issue and provide direction to staff. Based upon that direction, Staff will take the necessary next steps to either bring forward an ordinance or continue to prohibit STRs and pursue enforcement of violations on a complaint basis.
Attachments
Frequently Asked Questions Handout
Correspondence (updated 11/14/17)