Title
Approval of an Ordinance Establishing Regulations for Short-Term Rental Accommodations
Recommended Action
Committee Recommendation:
The Land Use and Environment Committee (LUEC) recommends approval of an Ordinance adopting regulations for short term rental accommodations.
City Manager Recommendation:
Move to approve approval of an Ordinance adopting regulations for short term rental accommodations.
Report
Issue:
Whether to adopt an Ordinance adopting regulations for short term rental accommodations consistent with guiding principles established by the LUEC.
Staff Contact:
Leonard Bauer, Director, Community Planning and Development, 360.753.8206
Catherine McCoy, Associate Planner, Community Planning and Development, 360.570.3776
Presenter(s):
Leonard Bauer, Director, Community Planning and Development,
Catherine McCoy, Associate Planner, Community Planning and Development
Background and Analysis:
Background and analysis has not changed from first to second reading.
Background
Short-term rentals, also known as vacation rentals, exist in Olympia neighborhoods as room rentals or rentals of entire living units, primarily in single family homes and multifamily units. City residents, property owners, and stakeholder groups (such as short-term rental operators) have shared their stories and first-hand experience renting, owning and living adjacent to short-term rental units.
The Washington State Legislature has adopted some regulations for short term rentals (RCW 64.37). The City of Olympia currently does not have specific regulations addressing short term rentals. In 2019, the Land Use and Environment Committee directed staff to conduct a public process to establish rules that carry out the following six guiding principles:
1. Housing: Establish protections for the supply and affordability of housing.
2. Health and Safety: Identify unwanted behaviors and negative consequences.
3. Neighborhood Integrity: Minimize impacts and tensions between short term rentals and neighbors.
4. Fees and Taxes: Ensure equitable permit and tax compliance.
5. Enforcement: Enact enforceable policies that improve building, safety, and accessibility requirements.
6. Economic Development: Ensure an equitable approach with existing local firms and providers and their employees and enable revenue opportunities for existing residents.
A summary of the planning process for short term rental regulations can be found at the attached link to the short-term rental project web page. The process included a survey, focus group meeting and several lengthy comment periods regarding the guiding principles, optional approaches and draft recommendations. These comments and staff research of other jurisdictions and professional literature guided the staff recommendation.
On April 19, 2021, the Olympia Planning Commission held a public hearing on a draft ordinance regulating short-term rentals. The Commission discussed the draft ordinance and public testimony at its May 3, 2021, meeting and recommended approval of the ordinance with several revisions:
1. Short term rentals - vacation rentals may be permitted in accessory dwelling units.
2. Property owners may have a total of 4 (four) short term rental - vacation rentals.
3. Change the terms ‘occupants’ and ‘occupancy’ to ‘overnight guests’ in the ordinance.
The LUEC considered the Planning Commission’s recommendation at its June 17, 2021 meeting and made additional revisions:
1. Vacation rentals must provide a 24/7 contact person who resides within 15 miles or within Thurston County.
2. Property owners may have a total of two short term-vacation rentals.
3. Owners of more than two short term vacation rentals at the time the ordinance is effective can continue operating their existing rentals if they meet certain conditions.
4. Short term rentals in operation at the time the ordinance is effective can continue operating with their existing parking.
The LUEC unanimously recommends adoption of the attached ordinance.
Neighborhood/Community Interests (if known):
Short-term rentals have citywide impact. Staff provided a briefing to the Council of Neighborhood Associations (CNA) several times during the planning process. Short-term rentals have also been raised by community members and neighborhood representatives during the Missing Middle and Housing Options discussions as being closely related to concerns about housing affordability and neighborhood character and quality.
Options:
1. Approve the Ordinance adopting regulations for short term rental accommodations.
2. Approve the Ordinance adopting regulations for short term rental accommodations. with specific revisions.
3. Do not approve the short term rental regulations at this time.
Financial Impact:
Staff resources in Community Planning and Development have been allocated to this work effort. Costs to implement and enforce additional programs or regulations, if adopted, can be accommodated within the existing City budget.
Attachments:
Ordinance
Short Term Rental Project Web Page