HomeMy WebLinkAbout2024-08-09 Short-Term Rental Task Force Findings (Final).pdf
Town of Southold
Short-Term Rental
Task Force
Findings
Last revised date: 8/9/24
Town of Southold
Draft Short-Term Rental Findings
August 13, 2024
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Town of Southold
Short-Term Rental Task Force Findings
Short-Term Rental Task Force Members
John Stype, Deputy Town Supervisor, Task Force Chairman
Jill Doherty, Town Board Member
Greg Doroski , Town Board Member
Dr. Anne H. Smith, Town Board Member
Gwynn Schroeder, Government Liaison Officer
Cheryle Amara, Housing Advisory Commission
Michael J. Verity, Chief Building Inspector
Heather Lanza, AICP, Town Planning Department Director
Mark Terry, AICP, Assistant Town Planning Director
James Squicciarini, Deputy Town Attorney
Benjamin F. Johnson, Assistant Town Attorney
Arthur Bloom, Code Enforcement
Mara Cerezo, Planner
Report designed & prepared by Mara Cerezo
Town of Southold
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1.0 INTRODUCTION .................................................................................................................... 3
1.1 Executive Summary .......................................................................................................... 4
1.2 Creation of the Short-Term Rental Task Force................................................................. 5
1.3 Short Term Rentals and the Southold Town Comprehensive Plan .................................. 6
1.4 Task Force’s Guiding Principles ........................................................................................ 7
1.5 Task Force Timeline and Activities ................................................................................... 7
2.0 TASK FORCE PRINCIPAL FINDINGS ..................................................................................... 10
2.1 Context ........................................................................................................................... 10
2.2 Case Law Overview ......................................................................................................... 11
2.3 Town Code & Current Rental Process Review ............................................................... 14
2.3.1 Definitions ............................................................................................................... 14
2.3.2 Rental Permits ......................................................................................................... 14
2.3.3 Code Enforcement Practices ................................................................................... 14
2.4 Research Insights ............................................................................................................ 15
2.4.1 Commonalities ........................................................................................................ 16
2.4.2 Key Differences ....................................................................................................... 17
2.4.3 Local Approaches .................................................................................................... 17
3.0 REGULATIONS CONSIDERED .............................................................................................. 18
3.1 Options Discussed and Vetted by Task Force ................................................................ 18
3.2 General Discussion on Options ...................................................................................... 19
4.0 FINAL RECOMMENDATION ................................................................................................ 21
4.1 Crafting a Solution .......................................................................................................... 21
4.1.1 Considerations of Key Definitions ........................................................................... 21
4.1.2 Permitting: Primary Residence and Non-Primary Residence ................................. 21
4.1.3 Administrative Process ........................................................................................... 22
4.1.4 Safety and Review of Applications .......................................................................... 23
4.1.5 Compliance, Implementation, and Enforcement ................................................... 24
4.2 Role of Technology ......................................................................................................... 24
4.3 Conclusion ...................................................................................................................... 26
5.0 APPENDICES ....................................................................................................................... 27
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APPENDIX A: Quotes from 2020 Southold Town Comprehensive Plan........................................ 28
APPENDIX B: Recommendations from Housing Plan .................................................................... 31
APPENDIX C: Sample Good Neighbor Guide ................................................................................. 32
APPENDIX D: Sample Life Safety Inspection Checklist .................................................................. 34
1.0 INTRODUCTION
The Town of Southold has long been a place where neighbors are closely connected and families
reside in generational homes. Yet, it also has a rich tradition of renting accommodations for
seasonal stays, a practice that predates today’s vacation rental platforms.
In the 19th and early 20th centuries, city dwellers sought respite from urban life by vacationing
in Southold, renting cottages or staying in boarding houses run by locals. These lodgings offered
a rustic, communal experience where guests interacted closely with their hosts. Southold’s Town
Code still includes “boarding houses” as a specific use.
The summer influx of tourists fostered a seasonal economy in Southold, benefiting local
businesses and supporting activities like boating and fishing. Vacation rentals were an integral
part of the community, with hosts sharing local knowledge and guests en gaging in local events
and businesses.
As vacation rentals became more popular, Southold introduced zoning regulations to manage
their impact on neighborhoods and infrastructure. The Town Code began specifying where
boarding houses, tourist camps, bed and breakfasts, and hotels or motels could operate.
In the 21st century, the rise of unregulated short-term rentals has significantly transformed
Southold. While these rentals have increased income for property owners and local businesses,
they have also driven up property values and rents, displacing long-term residents and altering
neighborhood dynamics. The Town’s recently adopted Community Housing Plan addresses these
concerns.
Modern technology has fueled this trend, allowing property owners to lease homes on a short -
term basis with minimal oversight. This has diminished the communal feel of vacation rentals,
leading to higher guest turnover and less local engagement. Long -term residents struggle to
maintain community cohesion as the neighborhood’s character changes.
In response, Southold is reevaluating its regulations and zoning laws to balance the economic
benefits of short-term rentals with the need to preserve neighborhood integrity and ensure
visitor health and safety.
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1.1 Executive Summary
The report provides a comprehensive overview of the Short-Term Rental Task Force's efforts and
findings related to the regulation of short-term rentals in Southold Town. Established to address
growing concerns and to align with the Southold Town Comprehensive Plan, the Task Force
aimed to evaluate existing rental practices and propose actionable solutions. This summary
captures the essence of the Task Force’s work, findings, and recommendations.
Principal Findings (Section 2.0)
1. Context and Case Law Overview: The Task Force assessed the legal landscape
surrounding short-term rentals, reviewing relevant case law to understand judicial
precedents and implications for local regulation.
2. Town Code and Rental Process Review: A detailed analysis of the existing Town Code and
rental process was conducted, focusing on definitions, permit requirements, and
enforcement practices. The review highlighted areas where current practices may fall
short and require improvement.
3. Research Insights: Comparative research was undertaken to identify commonalities and
key differences in short-term rental regulations across various jurisdictions. This included
an examination of local approaches to managing short-term rentals, which informed the
Task Force's discussions and recommendations.
Regulations Considered (Section 3.0)
The Task Force explored various regulatory options for short-term rentals. These options were
rigorously discussed and evaluated based on their feasibility and potential impact. The
discussions considered a range of factors, including community impact, administrative burden,
and alignment with the Town’s goals.
Final Recommendation (Section 4.0)
1. Crafting a Solution: The Task Force’s final recommendation includes a multi-faceted
regulatory framework that differentiates between primary and non-primary residence
rentals. Key elements include:
o Permitting: Establishing distinct requirements for primary and non -primary
residences.
o Definitions: Clarifying key terms to ensure consistency and clarity in enforcement.
o Administrative Process: Streamlining application processes to enhance efficiency
and compliance.
o Safety and Review: Implementing robust safety standards and review
mechanisms to safeguard community interests and visitors.
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2. Role of Technology: The Task Force recognized the importance of leveraging technology
to improve the management and enforcement of short-term rental regulations.
Recommendations include adopting digital tools for permitting, monitoring, and
compliance tracking.
3. Conclusion: The report concludes with a call for adopting the proposed recommendations
to effectively regulate short-term rentals while balancing community needs and
economic benefits. The Task Force emphasizes the importance of ongoing evaluation and
adjustment to ensure the regulations remain effective and responsive to changing
conditions.
1.2 Creation of the Short-Term Rental Task Force
In response to the evolving landscape of property rentals and the increasing prominence of
short-term rentals (STRs) in Southold, a Short-Term Rental Task Force was established. This
Task Force was created to address the complexities surrounding STRs, whic h have seen
significant growth in recent years. The rise in these rentals, often defined as stays of less than
30 days, has introduced both opportunities and challenges for the community. On one hand,
STRs can provide valuable income for homeowners and boost the local tourism industry. On the
other hand, they may contribute to housing shortages and disrupt neighborhood dynamics.
It is important to note that in the current Town Code, STRs are not defined. Southold Town
Code Chapter 280-4 defines "transient rentals" as dwelling units occupied by individuals other
than the owner or their family, where the owner receives rent directly or indirectly for stays of
less than 14 nights. Such rentals of less than 14 nights are currently prohibited across Southold
Town. Conversely, rentals lasting 14 nights or more are permissible with a rental permit as
outlined in Southold Town Code Chapter 207.
The purpose of this Task Force is to navigate the nuances of short-term rentals, understand
their impact, and propose balanced solutions to the Town Board. By examining data and case
studies from other regions, the Task Force aims to craft recommendations that address the
challenges while preserving the benefits. These recommendations focus on potential policy
changes, procedural improvements, technology solutions, and amendments to existing codes to
better regulate and manage STRs within Southold Town.
The purpose of this Task Force is to navigate the
nuances of short-term rentals, understand their impact,
and propose balanced solutions to the Town Board.
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1.3 Short Term Rentals and the Southold Town Comprehensive Plan
The findings of the Short-Term Rental Task Force aim to be consistent with and further the vision
and goals of the Southold Town Comprehensive Plan (“Comprehensive Plan”) adopted in 2020.
The vision established by the Comprehensive Plan provides an overarching goal for future
planning, – and development of any kind:
“Future planning shall be compatible with existing community character while supporting
and addressing the challenges of continued land preservation, maintaining a vibrant local
economy, creating efficient transportation, promoting a diverse housing stock, expanding
recreational opportunities and protecting natural resources.”
The Comprehensive Plan supports regulating transient rentals in Southold Town through several
key points1:
• Impact on Residential Neighborhoods: The Comprehensive Plan highlights concern about
transient rentals, facilitated by platforms like Airbnb, VRBO, and Homeaway.com, which are seen
as eroding community and residential neighborhood tranquility. This impact on neighborhood
character and quality of life supports regulations aimed at pr eserving residential zones for
permanent residents.
• Zoning Compliance: The Comprehensive Plan suggests that transient rentals may constitute a
commercial use in residential zones, competing with traditional bed and breakfasts and hotels.
Limiting or regulating transient rentals is necessary to maintain the intended use and character
of residential areas.
• Community Stability: Emphasizing the importance of retaining year-round residents, the
Comprehensive Plan underscores how the influx of transient rentals reduces available housing
stock for permanent residents. Regulatory measures should aim to balance housing availability
and stability within the community.
• Quality of Life Concerns: Concerns over noise, parking, and other disruptions caused by
transient rental properties are public interest issues justifying regulatory action that protects the
safety and well-being of residents living near transient rental properties.
• Preservation of Local Economy: The Comprehensive Plan seeks to support local businesses like
bed and breakfasts and hotels, which contribute to the local economy in a different manner than
short-term rentals. Establishing a limit for transient rentals aims to prioritize local economic
sustainability.
1 For direct quotes from the Comprehensive Plans see Appendix A.
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In summary, the Comprehensive Plan provides a robust foundation to regulate transient rentals
by highlighting their impact on residential neighborhoods, the need to uphold zoning laws, and
the preservation of community stability, quality of life, and the local economy. These points
collectively support Southold Town’s authority and justification for enacting regulations that
govern the use of properties for transient rentals.
1.4 Task Force’s Guiding Principles
To effectively address the complexities associated with short -term rentals (STRs) and guide
their deliberations, the Task Force established a set of guiding principles. These principles are
designed to steer ongoing discussions and ensure that findings and recommendations align
with the overall goals of the community. By adhering to these principles, the Task Force aims to
balance the diverse interests and concerns of Southold’s residents while formulating solutions
that are both fair and effective.
1.5 Task Force Timeline and Activities
The Short-Term Rental Task Force was established by the Town Board in March 2024, with a
mandate to address the complexities surrounding short-term rentals (STRs) in Southold. The
Task Force is composed of representatives from various departments including the Southold
Town Board, Town Attorney’s Office, Code Enforcement, Building Department, Planning
Department, Housing Advisory Commission, and Government Liaison Office, and is chaired by
the Town’s Deputy Supervisor. Over a period of sixteen weeks, the Task Force engaged in a
THE GUIDING PRINCIPLES DRAFTED BY THE TASK FORCE INCLUDE:
• Maintain quality of life for local residents.
• Maintain housing stock for year-round attainable homes (rental and ownership).
• Safeguard communities by ensuring that STRs do not threaten character of residential
neighborhoods.
• Ensure that STR activities are not a nuisance, or threaten the public health, safety, or
welfare of neighboring properties.
• Retain residents in existing homes.
• Preserve commercial property available for small businesses.
• Consider ways that STRs might intentionally bolster the tourism economy.
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series of meetings and targeted research efforts to develop recommendations. The table that
follows shows a summary of activities and key milestones.2
Date Meeting/Event Agenda Outcome
April 2, 2024 Task Force Kickoff
Meeting
- Introductions
- Presentation by
Guest Speaker
- Discussion on
Case Law and Task
Force Direction
Kathleen (Katie) Hodgdon,
counsel for the New York
Association of Towns, presented
on “From Airbnb to VRBO and
Everything in Between:
Regulating Short-Term Rentals
in Your Jurisdiction.” This
session set the stage for the
Task Force’s work by providing
an overview of regulatory
practices in other jurisdictions,
with a particular focus on NYS.
April 10, 2024 Review and Goal
Setting
- Review draft
charge and guiding
principles
- Set goals for
completion of work
and report to Town
Board
The Task Force clarified its goals
and foundational rules, setting
up a timeline to guide the
project’s progress. This session
was crucial for establishing a
clear direction and expectations
for the Task Force’s efforts.
April 30, 2024 Examination of
Current Practices
- Understand
current Town Code
- Review Rental
Permit Process and
Chapter 207
- Code
Enforcement
activity
The Task Force identified
potential improvements to the
current rental regulations,
including updating rental permit
application, enhancing the Town
website with rental information,
creating an informational
brochure, and specifying permit
display requirements.
2 Task Force meeting agendas and minutes can be provided.
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May 28, 2024 Research and
Options Discussion
- Recap of current
Town Code
- Overview of
research findings
on STR regulations
- Discussion of
regulatory options
The Task Force reviewed
research on STR regulations
from other areas and discussed
various regulatory approaches
for Southold. This session
focused on understanding the
pros and cons of different
options.
June 25, 2024
Comprehensive
Plan Guidance and
Options Review
- Reminder of
guiding principles
and
Comprehensive
Plan support
- Finalize discussion
of options
The Task Force revisited the
guiding principles and reviewed
the feasibility of specific options
discussed earlier. This meeting
emphasized legal considerations
and practical implementation
aspects.
July 23, 2024
Final
Recommendations
Preparation
- Review key
considerations for
recommendations
to the Town Board
- Identify necessary
steps and resources
The Task Force refined their
recommendations, focusing on
actionable steps and required
resources for effective
implementation. This session
prepared the Task Force to
present their findings and
recommendations to the Town
Board.
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2.0 TASK FORCE PRINCIPAL FINDINGS
2.1 Context
As of 2020, Southold Town has a total of 16,298 housing units, with 41% classified as vacant.
The majority of these vacant units are seasonal residences, while the remaining units are either
unoccupied or currently for sale. In the recently adopted Community Housing Plan, Southold
Town utilized data from airdna.co3 in order to better understand the impact of short-term
rentals on the housing market. According to this data from February 2023, there were over 730
active short-term rentals in Southold Town, representing nearly 4.5% of the Town’s total
housing units. Since February 2023, Southold Town has seen a 34% increase in short-term
rentals, with over 980 active rentals as of March 2024. The table below shows this data broken
out by hamlet.
The average annual revenue for these properties is $107,556, despite relatively low occupancy
rates. This high revenue with low occupancy rates points to the seasonal nature of the rental
market in Southold. For example, in the hamlet of Orient, short-term rentals have an average
occupancy rate of only 37%, yet they generate substantial annual revenues averaging $119,900
per property. This indicates that while these properties may not be rented year-round, they
achieve significant income during peak seasons when demand is high.
Hamlet Rentals Average Daily4
Rate
Occupancy5
Rate
Annual6
Revenue
Cutchogue 116 $649 40% $94,800
East Marion 89 $689 42% $104,800
Greenport 293 $556 47% $96,100
Laurel 29 $672 41% $101,500
Mattituck 113 $607 44% $97,700
New Suffolk 18 $741 42% $112,700
Orient 31 $880 37% $119,900
Peconic 27 $900 43% $140,600
Southold 269 $668 41% $99,900
Note: There is no available data for Fisher’s Island, and the data from the Village of Greenport is combined with
Greenport West (per AirDNA).
3 It is important to note that airdna.co data has certain limitations, including the absence of data for Fishers Island,
the aggregation of figures for the Village of Greenport with Greenport West, and a lack of detail on the length of
stay. However, the data provides a useful snapshot for assessing the growth of short-term rentals in Southold Town,
offering important context for understanding local trends and the broader impact on the community.
4 This is the average daily rate for the rental unit.
5 This represents how often a property is occupied over prior 12 months.
6 This represents the average annual revenue per property.
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As noted by the Municipal Research and Services Center, “While not the primary cause of
affordable housing issues, many experts believe that short-term rentals (STRs) negatively impact
affordable housing at the local level, particularly in high -tourism areas.” Research conducted by
organizations such as The Pew Charitable Trusts and the Harvard Business Review supports this
view, indicating that as the number of short-term rentals increases in a community, the
availability of affordable housing units tends to decrease. This trend highlights the broader
implications of STR growth, which, while not solely responsible for housing affordability
problems, contributes to a reduction in the stock of affordable housing by shifting residential
properties into the transient rental market.
The data also reveals that at least four property management companies, organized as LLCs, are
managing over 40 properties within the Town. These companies often purchase multiple
properties in neighborhoods, converting them into short -term rentals. This can contribute to
the reduction of available long-term rental options, as these properties are removed from the
traditional rental market. These LLCs typically do not have a long-term stake in the community
and operate primarily as transient lodging businesses. These businesses often prioritize revenue
over community involvement, leading to a reduced sense of neighborhood cohesion and less
investment in the community's well-being.
2.2 Case Law Overview
At the first Task Force meeting, guest speaker Kathleen (Katie) Hodgdon, counsel for the New
York Association of Towns, was welcomed. Katie co-chairs the Local and State Government Law
Section’s Taxation, Finance and Economic Development Subcommittee and t he Code Drafting
Subcommittee, and she was recently appointed to her second five-year term on the Third Judicial
District’s Task Force on Character and Fitness. Prior to the meeting, Katie shared a recently
published article she authored for the New York Zoning Law and Practice Report (Volume 24,
Issue 4) titled “Regulating Short-Term Rentals in New York.” During the session, Katie presented
a slideshow outlining various legislative tools to regulating short-term rentals and discussed
relevant case law.7
Legislative Tools for Regulating Short-Term Rentals
To effectively manage and regulate short-term rentals, municipalities can utilize a range of
legislative tools and frameworks. These include aligning with the comprehensive plan, adhering
to procedural requirements, leveraging general zoning authority, establishing permitting systems
with appropriate fee structures, and employing special use permits to ensure compliance and
maintain community standards.
7 The full slide show can be provided.
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• Comprehensive Plan: A comprehensive plan provides the framework for zoning
regulations and guides local laws. When regulating short-term rentals, a municipality is
on solid legal ground if the comprehensive plan addresses these rentals and local laws are
consistent with the plan.
• Procedural Considerations: Before adopting new short-term rental regulations or
modifying the comprehensive plan, proposals must be referred to the county planning
board. If the county fails to respond within 30 days, the local legislative body can proceed.
If the county recommends changes or disapproval, the local body may override this with
a majority vote. Compliance with New York State’s Environmental Quality Review Act
(SEQRA) is required.
• General Zoning Authority: Local governments have broad authority to create zoning
regulations that match their needs, consistent with the comprehensive plan. They can
permit short-term rentals in specific zones or impose time limits on their use. They must
be sure to regulate the use and not the ownership of the property.
• Permitting Authority and Fee Structures: Localities can establish permit systems for
short-term rentals under general zoning authority, distinct from special use permits.
Permit fees must relate directly to the costs of issuing and enforcing the permit, not to
generate revenue or cover general governmental expenses.
• Special Use Permits: Special use permits allow localities to impose specific conditions on
short-term rentals to ensure they comply with local zoning regulations and community
standards. These permits can be non-transferrable and tied to specific applicants. The
process involves a public hearing, notice requirements, and a decision filing. The
municipality can set conditions related to safety, refuse removal, and other operational
aspects. Regulations should indicate that permits are a privilege and not a right. Special
use permits are not guaranteed and may be revoked for non-compliance.
Case Law Summary on Short-Term Rental Regulations
Recent case law has clarified several important issues regarding short-term rental regulations.
Courts have ruled that while local governments can regulate these rentals, they must avoid
certain pitfalls. Below are a series of case law examples that Katie highlighted in her presentation
and supplemental materials.
1. Hignell-Stark v. City of New Orleans: The case involved a challenge to a city regulation
requiring short-term rental operators to be residents, arguing it violated the Takings Clause and
the dormant Commerce Clause.
• Findings:
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o Takings Clause: The court ruled that short-term rental licenses are privileges, not
property rights. Therefore, not renewing or revoking these licenses does not
constitute a taking under the Constitution.
o Dormant Commerce Clause: The residency requirement was found to
discriminate against interstate commerce by favoring local over out-of-state
property owners. The court noted that such regulations must be justified by
legitimate local interests that cannot be achieved through les s discriminatory
means.
• Policy Recommendation: Local regulations should avoid residency requirements to
prevent violations of the dormant Commerce Clause. Instead, consider alternative
measures such as enhanced enforcement or increased penalties for non -compliance to
address local concerns.
2. Matter of Wallace v. Town of Grand Island: The plaintiff argued that a residency requirement
for short-term rentals constituted an unconstitutional regulatory taking.
• Findings: The court determined that the plaintiff failed to show that the property was
incapable of earning a reasonable return without being used as a short -term rental. A
mere decrease in property value does not amount to a regulatory taking.
• Policy Recommendation: Ensure that any regulations, including residency requirements,
do not deprive property owners of reasonable return on investment. Regulations should
be designed to avoid claims of regulatory taking by allowing for reasonable alternative
uses of the property.
3. Weisenberg v. Town Board of Shelter Island: The case challenged a local law that limited
short-term rentals to once every 14 days, arguing it violated various laws and rights.
• Findings:
o Zoning Authority: The court upheld the regulation, finding that limiting the
duration of short-term rentals was a valid exercise of zoning authority.
o Due Process: Claims related to due process were rejected as the property owners
could not show substantial reliance on the previous zoning status.
• Policy Recommendation: Implement durational restrictions on short-term rentals as part
of zoning regulations. Ensure that these restrictions are well -justified and do not
unreasonably impact the property’s value or use.
4. Calvey v. Town Board of North Elba: Property owners challenged a local law that excluded
certain properties from short-term rental regulations, claiming it violated equal protection
principles.
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• Findings: The court allowed the case to proceed, noting that the exclusions created
potentially unfair distinctions among property owners without a clear rational basis.
• Policy Recommendation: When crafting short-term rental regulations, avoid arbitrary
distinctions among different property types or owners. Ensure any exemptions or special
provisions are based on solid, rational criteria to avoid equal protection challenges.
The reviewed case law highlights several key considerations for developing short -term rental
regulations. Municipalities should be cautious of implementing residency requirements, which
may conflict with the dormant Commerce Clause. Regulations should be crafted to avoid claims
of regulatory taking by ensuring property owners have viable alternatives and reasonable returns
on investment. When setting durational limits or other restrictions, care should be taken to avoid
discriminatory practices or exemptions that could lead to equal protection issues. These cases
underscore the importance of designing short -term rental policies that balance local interests
with legal constraints.
2.3 Town Code & Current Rental Process Review
In order to better understand how to regulate the issue of short-term rentals, the Task Force took
time to review the Town’s current code related to tourism, rentals, and code enforcement.
2.3.1 Definitions
The Task Force reviewed the following definitions from Town Code Chapter 2808:
• Dwelling Unit
• Transient Rental Property
• Transient Rental Amenity
• Hotel or Motel, Transient
• Hotel or Motel, Resort
• Bed-and-Breakfast
• Boarding and Tourist Houses
• Tourist Camp
Below is a breakdown of the definitions and their implications for different types of tourism:
Similarities
1. Self-Contained Living Spaces: Both "Apartment" and "Dwelling Unit" refer to self-
contained residential units with complete housekeeping facilities designed for single-
family use. They are differentiated primarily by size, with "Apartment" requiring a
minimum of 220 square feet and "Dwelling Unit" a minimum of 850 square feet.
2. Exclusion of Similar Structures: Both definitions exclude certain types of lodging
arrangements like hotels, motels, and boarding houses, emphasizing that these
8 Southold Town Code can be found online, the section on these definitions is here: https://ecode360.com/5161787
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definitions apply to private residential units rather than commercial or transient
accommodations.
Distinctions
1. Use and Rental Terms:
o Transient Rental Property: Prohibited in all districts. It refers to rental of a
dwelling unit for periods less than 14 nights, specifically targeting non -owner-
occupied units. Exclusions apply to commercial hotels and certain locations like
Fishers Island.
o Transient Rental Amenity: Prohibits the rental of non-residential amenities (e.g.,
pools, barns) independently from a dwelling unit rental.
o Hotel or Motel: Commercial properties designed for short-term stays, with
specific configurations and amenities that cater to transient guests.
o Resort Hotel or Motel: Similar to transient hotels but includes additional
amenities for vacationers and longer stays.
o Bed-and-Breakfast: Involves renting out a small number of rooms within an
owner-occupied dwelling for lodging and breakfast, catering to transient guests.
o Boarding- and Tourist Houses: Provides lodging for five or more persons,
potentially including meals, distinct from more commercial hotel setups.
o Tourist Camp: Allows for temporary accommodations such as tents or trailers,
often used for recreational purposes.
2. Tourism Support: The regulations outline various categories for lodging, though transient
rental properties are prohibited. The remaining categories support different types of
tourism:
• Commercial Lodging: Hotels, Motels, and Resorts cater to short-term and vacationing
tourists with specialized amenities.
• Recreational and Temporary Stays: Bed-and-Breakfasts, Boarding Houses, and
Tourist Camps offer accommodations for temporary or recreational stays.
The distinctions highlight a regulatory approach aimed at preserving residential integrity while
accommodating various types of tourism through structured categories.
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2.3.2 Rental Permits
The Task Force conducted a review of the current rental permit process, focusing specifically on
Town Code Chapter 207, which governs rental permits. This chapter outlines the procedures,
requirements, and regulations for obtaining and maintaining rental p ermits within the town. In
addition to examining Chapter 207, the Task Force also learned how rental permits are integrated
with other relevant codes and regulations, including zoning laws, building safety codes, and
electrical safety standards. The goal of this review was to assess the effectiveness and efficiency
of the existing rental permit system, identify potential areas for improvement, and ensure that
the regulations adequately address the needs and concerns of both property owners and
residents.
Rental properties are regulated by several key code sections. Chapter 207 outlines the
requirements for rental permits, including the process and criteria for obtaining them. Chapter
280 provides zoning regulations applicable to rental uses within specific districts, while Chapter
144 and Chapter 126 address safety requirements related to building and electrical in spections,
respectively.
When evaluating rental applications, the Building Department ensures that the property
complies with building codes and safety standards. However, Chapter 207 does not specify the
duration of rentals, and this aspect is not managed by the Building Departme nt. Instead, the
duration of rental permits is addressed only in response to complaints, at which point the Code
Enforcement or Town Attorney would handle the issue.
Once a rental permit is issued, it remains valid for 24 months. The Building Department manages
follow-up by sending automatic renewal notices, generated by Laserfiche, to permit holders as
the expiration date approaches.
There are approximately 1,000 active rental permits currently in place. An additional 500 to 1,000
permits are pending due to certificate of occupancy (C.O.) issues. Information regarding whether
these rentals are year-round or seasonal is not required by current code and, therefore, is not
collected.
2.3.3 Code Enforcement Practices
The process for handling complaints about transient rentals is primarily driven by online reports,
although some complaints come in through walk-ins or phone calls. The main issues reported
When evaluating rental applications, the Building
Department ensures that the property complies with
building codes and safety standards.
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include noise, trash, parking problems, pre-existing neighbor conflicts, and concerns that
residential neighborhoods are being treated like hotels with a revolving door of guests.
When a complaint is received, the following steps are taken:
1. Verification: The first step is to check whether the property has a valid rental permit and
to ensure that the house meets safety standards.
2. Investigation: If a rental permit is present, the next step is to investigate whether the
property is being rented for periods of less than 14 days.
3. Site Visits: Code enforcement officers conduct site visits, often targeting weekends
(Thursday through Sunday) to catch transient rentals in action.
4. Affidavit Collection: Officers may obtain affidavits from tenants to confirm that their stay
was under 14 days.
5. Issuance of Tickets: Tickets are issued for operating without a rental permit and for
engaging in transient rentals. Serving tickets to LLCs can be quite costly and challenging
due to difficulties in serving papers and compelling representatives to appear in court.
6. Permit Enforcement: If a property lacks a rental permit, the owner is required to obtain
one. If there is no Certificate of Occupancy (C.O.), resolving the issue can be complex.
7. Resolution: After obtaining a permit, the case may be settled through a fine or go to trial.
The person who signed the affidavit must attend court to provide evidence. Penalties for
transient rentals range from $1,500 to $8,000, with settlements averaging around $2,700.
In the past 10 months, the Town has successfully resolved 12 or 13 cases of transient rentals.
There is consideration of implementing a system where a permit might be pulled after a certain
number of violations.
To identify transient rentals, there is ongoing work to use online calendars and other information,
though this can be considered hearsay in court. For cases pending due to lack of a C.O., they
remain in court until the C.O. issue is resolved, with the property owner required to appear in
court to explain the delay and refrain from renting until the matter is settled.
Repeat offenders are rare, though one has faced the highest fines. Additional information on
Justice Court data can be provided by the Town Attorney’s Office for further insights into
enforcement outcomes.
2.4 Research Insights
In the Task Force’s fourth meeting, the regulation of short-term rentals was discussed. This
section presents key findings from a review of short -term rental regulations, focusing on areas
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similar to Southold Town. By analyzing regulatory frameworks and enforcement strategies from
various regions, including coastal and rural communities with high seasonal tourism, this review
offers insights into effective practices and potential challenges. The research included a review
of municipalities with similar attributes to Southold9, including the following locations:
Chatham, MA: Located on Cape Cod, Chatham is a picturesque town known for its historic
architecture, beaches, and fishing industry. It shares a similar coastal setting and small -town
charm with Southold.
Saratoga Springs, NY: Famous for its mineral springs, horse racing, and arts community,
Saratoga Springs offers a blend of historic charm, natural beauty, and cultural events. It's a
popular destination for visitors seeking a mix of relaxation and entertainment, particularly in
the summer months.
Fredericksburg, TX: Located in the heart of the Texas Hill Country, Fredericksburg is known for
its wineries, German heritage, and scenic beauty. It shares similarities with Southold in terms of
its emphasis on agriculture, tourism, and small-town hospitality.
Charlevoix, MI: Situated on the shores of Lake Michigan, Charlevoix is a picturesque town known
for its waterfront parks, marinas, and historic downtown area. It offers a similar blend of coastal
charm and outdoor recreation opportunities as Southold, with an influx of visitors creating a large
seasonal population.
Chatham, NY: Located in upstate New York, Chatham is a rural community with a rich history,
agricultural tradition, and picturesque landscape. Chatham boasts a charming downtown area,
historic architecture, and a focus on outdoor recreation, making it similar to Southold’s culturally
rich small-town experience.
2.4.1 Commonalities
The common themes that emerged, showed the following:
• Permitting: All locations require some form of registration or licensing for short-term
rentals (STRs). This often involves an annual fee or permit that must be renewed
periodically.
• Occupancy Limits: Most places set limits on the number of occupants per bedroom,
typically allowing 2 per bedroom plus an additional number of guests. This helps control
the density of guests and manage the impact on local resources.
9 The Task Force conducted a comprehensive review of local, national, and international news articles and
regulations, attended webinars, and reviewed research on best practices for regulating short -term rentals. This
multifaceted approach provided a well-rounded understanding of the issues and enriched their recommendations
with a diverse range of insights. Research materials can be provided.
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• 24/7 Emergency Contact: Each community mandates that STR operators provide a local
contact person who is available 24/7 to address emergencies and complaints. This
ensures timely response to issues and enhances public safety.
• Violations: Violations of STR regulations generally result in fines or other enforcement
actions, such as permit suspensions or revocations. This is intended to ensure
compliance with local rules and address any negative impacts.
• Quality of Life: Regulations in all areas aim to protect local infrastructure (e.g., water,
sewage) and maintain the quality of residential neighborhoods. This includes managing
parking, waste disposal, and ensuring that the STRs do not negatively impact the
community.
2.4.2 Key Differences
While all the communities researched share a common goal of regulating short-term rentals to
balance tourism benefits with neighborhood preservation, they differ in their approaches, for
example:
• Fees: Application costs ranged from $50 in Chatham, MA, to $1,000 plus additional
inspection fees in Saratoga Springs, NY. While other municipalities have a tiered fee
structure dependent on the number of bedrooms.
• Varied Occupancy and Parking Rules: Specific rules on maximum occupancy and parking
requirements vary, reflecting each community's unique infrastructure and space
constraints.
• Penalties: The severity and structure of penalties for non-compliance differ, from daily
fines of $200 to $1000 per day to strict suspension of revocation rules.
2.4.3 Local Approaches
The Task Force reviewed short-term rental (STR) regulations in neighboring communities—
Riverhead, Shelter Island, and Greenport—all of which address safety, community impact, and
housing preservation. Each community requires permits or registration for STRs, with penalties
for non-compliance.
However, their regulations differ. Riverhead prohibits rentals of 29 days or less. Shelter Island
allows rentals with a minimum stay of 14 days and has restrictions on licenses and corporate
ownership. Greenport, currently revising its rules, bans rentals under 30 days and imposes
substantial penalties. Application fees and penalties also vary among these communities.
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3.0 REGULATIONS CONSIDERED
The Task Force conducted a comprehensive review of various approaches to regulating short-
term rentals, evaluating how different strategies might address community concerns while
balancing the needs of homeowners and the broader public. The goal was to identif y effective
measures that could mitigate potential issues such as commercialization of residential
neighborhoods, enforcement challenges, and impacts on the local housing market and tourism
economy. The following presents the key options considered, detailing their respective
advantages and disadvantages as well as important considerations for implementation.
3.1 Options Discussed and Vetted by Task Force
Option 1: Maintain the Current Definition of Transient Rentals (Less than 14 Days)
Maintaining the current definition, which includes rentals of fewer than 14 days, has several
implications. While this option does not require changes to existing codes, it has notable
drawbacks. It allows short-term rental businesses to continue largely unregulated, leading to
ongoing commercialization of homes in residential neighborhoods and persistent challenges for
code enforcement. Additionally, it keeps homes out of the year-round rental or for-sale market.
Given these issues, this option may not effectively address the cons associated with short-term
rentals. Potential code changes could improve the situation but may not address all issues.
Option 2: Prohibit All Short-Term Rentals (Less than 30 Days)
An outright ban on short-term rentals of less than 30 days offers several advantages, such as
reducing the commercialization of homes, potentially increasing the availability of housing for
year-round residents, and simplifying code enforcement. It also eliminates the need for complex
code changes and enforcement processes. However, this option limits homeowners' ability to
earn additional income and may impact the local tourist economy by reducing available
accommodations. Additionally, there is a risk that LLCs might pivot to seasonal rentals, which
could continue the commercialization of neighborhoods. If this option is considered then it merits
including a ban on sub-letting, similar to Southampton’s approach. Overall, implementation
would require addressing several complex factors particularly on permitting and enforcement.
Option 3: Restrict Short-Term Rentals to Owner-Occupied Primary Residences
Allowing short-term rentals only in owner-occupied homes could mitigate some issues related to
commercialization and improve neighborhood quality. It ensures that homeowners have a stake
in maintaining their property and following the code. This approach m ight also make
enforcement simpler and encourage local economic benefits. However, it may reduce incentives
for homeowners to add accessory dwelling units (ADUs). Additionally, subletting and
enforcement issues need to be addressed to prevent misuse.
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Option 4: Cap the Number of Short-Term Rentals Town-Wide
Imposing limits on the number of short-term rentals either by hamlet, neighborhood, or zoning
district could allow some rentals to continue while addressing the commercialization issue. This
approach might help return some homes to the year-round rental or for-sale market and expand
available vacation options. However, it complicates rental permit management and enforcement
and may not fully address neighborhood commercialization or ensure fair allocation. Determining
an appropriate limit and managing permits effectively could pose significant challenges. The Task
Force discussed the use of a lottery system to distribute a limited number of permits per hamlet.
Option 5: Limit the Number of Short-Term Rentals per Individual
Restricting short-term rentals to one per natural person, similar to limiting the total number as
described in Option 4, could help control the spread of rentals and simplify enforcement. This
approach would limit the impact of short-term rentals on neighborhoods but may face similar
challenges in managing and enforcing limits. It is essential to consider how to handle ownership
through entities like LLCs and trusts and how to standardize the approach for clarity.
Option 6: Combine Approaches
A combined approach could involve limiting non -owner-occupied rentals to specific zoning
districts while allowing owner-occupied rentals more broadly. This hybrid method might balance
regulation with homeowner flexibility but still involves complexity in code enforcement and
permit management.
3.2 General Discussion on Options
There was consensus among Task Force members that regulating short-term rentals based on
primary residence is a promising approach. Options to limit the number of rentals per person or
by specific criteria, such as rental days per year, were also discussed. All options, including
maintaining the status quo, would require additional personnel and improved systems for
permitting and enforcement. Addressing subletting, occupancy limits, and the potential impact
on local housing and tourism economies are key considerations for any chosen approach.
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Table 1: Summary of Options
Option Description Pros Cons
Option 1: Maintain
Current Definition
(< 14 Days)
Retain the current
definition of
transient rentals as
basis for short-term
rentals.
• No code changes needed.
• Unregulated rentals (14-29
days) continue.
• Commercialization of
homes persists.
• Homes remain out of year-
round or for-sale market.
• Challenges for code
enforcement.
Option 2: Ban All
Short-Term Rentals
(< 30 Days)
Prohibit all rentals of
less than 30 days.
• Reduces commercialization
of homes.
• Potentially increases housing
stock for sale/year-round
rental
• Simplifies enforcement and
code changes.
• Allows seasonal rentals (30+
days).
• Limits homeowners'
income from short-term
rentals.
• May impact tourist
economy.
• Could lead to
commercialization via
seasonal rentals.
Option 3: Limit
Rentals to Owner-
Occupied Homes
Allow short-term
rentals only in
primary residences.
• Provides income supplement
for homeowners.
• Owners have a stake in
maintaining property.
• Reduces commercialization
of homes.
• May increase year-round
housing availability.
• Easier enforcement.
• Potential legal challenges.
Option 4: Limit
Number of Short-
Term Rentals Town-
Wide
Restrict the number
of rentals by hamlet,
neighborhood, or
zoning district.
• Allows some rentals to
continue.
• May increase vacation rental
options.
• Potentially returns some
homes to the year-round
rental or for-sale market.
• Complex rental permit
management.
• May not fully address
neighborhood
commercialization.
• Need to determine and
fairly allocate limits.
Option 5: Limit
Rentals to One Per
Person
Restrict short-term
rentals to one per
natural person.
• Controls spread of rentals.
• Simplifies enforcement
similar to Option 4.
• Similar challenges as Option
4.
• Must address ownership
through LLCs/trusts.
Option 6:
Combination of
Approaches
Combine various
approaches.
• Balances regulation with
homeowner flexibility.
• May address multiple
concerns simultaneously.
• May introduce complexity
in code enforcement and
permit management.
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4.0 FINAL RECOMMENDATION
4.1 Crafting a Solution
In light of the comprehensive review conducted by the Task Force, including an analysis of
relevant case law, a detailed examination of local ordinances, and research into STR regulations
adopted by other municipalities, the following recommendations are proposed. This approach is
framed by the Town’s comprehensive plan and guiding principles, which emphasize maintaining
neighborhood integrity, ensuring safety, and balancing economic benefits with community
preservation.
Ultimately, the majority of the Task Force agreed that implementing short -term rental
regulations was essential. After thorough discussion, the group found that focusing on Option
3—restricting short-term rentals to primary residences—was a promising approach. However, it
became clear that residency requirements alone would not fully address the issues and align with
the guiding principles, nor is this option legally defensible. As a result, the Task Force decided
that a combined strategy would be more effective: allowing flexibility for primary residents while
limiting the number of short-term rental permits for non-primary residences.
4.1.1 Considerations of Key Definitions
The proposed regulations aim to clarify and standardize terms and practices related to short -
term rentals (STRs). Specifically, the term "short-term rental" will replace "transient rental" in
the Town Code. According to the Task Force, a short-term rental is defined as a dwelling unit
rented to guests for fewer than thirty consecutive days, intended for tourist or transient use. It
is crucial to distinguish STRs from traditional lodging options such as hotels, motels, bed and
breakfasts, tourist camps, and boardinghouses. Additionally, the term "year-round rental" will be
defined as a rental unit with a lease term of one year or longer. To ensure consistency and clarity,
all definitions must be thoroughly reviewed and aligned with the Town Code. This include s
updating existing terms, clarifying new terminology, and addressing outdated definitions to
maintain coherence across the code. A comprehensive review and alignment are essential for
implementing effective and consistent regulations.
4.1.2 Permitting: Primary Residence and Non-Primary Residence
The permit structure should include two categories:
• Primary Residence STRs will be permitted with no cap on the number of permits issued.10
• Non-Primary Residence STRs will have a capped number of permits, suggested at 1% of
homes per hamlet
10 The Short-Term Rental Task Force strongly recommends that this be reviewed after the first year of
implementation to ensure alignment with Town Comprehensive Plan and this Findings Report. It is essential that
proof of primary residence is appropriately vetted with initial application and each renewal period. A primary
residence is currently defined as a dwelling listed on a person’s federal income tax return.
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Under the proposed regulations, all STRs will be required to obtain a permit, which may be
revoked for non-compliance.11 Permit conditions will include informing adjacent neighbors,
prohibiting subletting or house shares, and considering insurance requirements. Rental permits
are not transferrable owner to owner. The regulation will include language indicating that the
permit is a privilege, not a right, which can be revoked at any point for non-compliance with the
requirements set forth in the legislation.
There will be one permit per natural person. Any legal entity other than a natural person
(including but not limited to a corporation, LLC, trust or partnership) may not be issued a STR
permit, if any owner, partner, member, settlor, trustee, beneficiary, shareholder, officer, or
director of that entity already holds or has applied for a short-term rental license for another
property.
Non-Primary Residence STRs will be selected via lottery. STRs must be applied for by a set date
of each year. Applications will be reviewed and vetted for completeness. A lottery will be held on
a set date, once applications have been reviewed. Selected p ermitholders will be notified by
“date”. Non-selected applicants will be placed on a “waiting list”, anyone who applies after the
application period will be placed on the waiting list.
All current rentals of less than 30 days must register in accordance with the new regulation. There
will be a grace period allowing current operations to appropriately apply and register.
4.1.3 Administrative Process
Effective administration is crucial for the successful regulation and management of short -term
rentals (STRs). This section outlines the essential elements of the administrative framework
designed to ensure compliance and facilitate smooth operation of the STR program.
Firstly, all STR operators must enroll with Suffolk County to comply with local hotel tax
requirements. To address the varying impacts of STRs, distinct application fees will be established
for primary and non-primary residences, reflecting the costs associated with the administration
and enforcement of the program. Fee structures will be tiered based on the number of
bedrooms, ensuring that they are proportional to the scale of operations.
The application process will include a renewal system to maintain up-to-date records and
compliance. Permits for primary residences will be renewed every two years, while non -primary
residence permits will require annual renewal. If a permit is not renewed , it will be reallocated
through a lottery or waitlist system to ensure fair distribution of available permits.
11 Rentals of 30 days or more will still be regulated by Chapter 207: Rental Permits. As discussed earlier, the Task
Force has recommendations to ensure alignment between existing rental permitting and what is proposed for short -
term rental permitting.
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STR operators will be required to display their permits prominently on the property and include
permit numbers in all advertisements to enhance transparency and facilitate enforcement.
Additionally, operators must provide a Good Neighbor Guidebook12 to guests, which outlines
noise ordinances and other relevant local regulations. Signage inside the STR units will help
reinforce these guidelines, making it easier to keep things running smoothly and maintain good
relationships with the community.
4.1.4 Safety and Review of Applications
Ensuring the safety and well-being of guests and neighboring properties is paramount in
regulating short-term rentals. To achieve this, it is essential to mandate strict adherence to safety
and building standards, setting clear occupancy limits and conduct ing thorough inspections.
These measures not only protect occupants but also contribute to the overall quality and safety
of the rental environment.
Occupancy Limits and Code Compliance: To prevent the operation of large-scale short-term
rentals and mitigate potential disturbances, it is recommended to set an occupancy limit, such as
two guests per bedroom. This restriction helps maintain a manageable scale of operations and
reduces the risk of overcrowding. Utilizing New York State Fire and Building Codes as a baseline,
the Town may choose to adopt more stringent standards to ensure enhanced safety and
compliance.
Life Safety Inspections13: A Life Safety Inspection is a critical component in assessing the safety
of short-term rental properties. This inspection involves a comprehensive evaluation to confirm
that the property meets necessary safety standards, including fire safety, structural integrity, and
health-related conditions. By identifying and addressing potential hazards, these inspections aim
to prevent accidents and ensure a safe and comfortable environment for guests.
Application Requirements: To facilitate the review and approval process for short-term rental
applications, the following documentation and conditions should be included:
• Property Photo: A street-facing photo of the rental property, including visible address
numbers, to assist in identification.
• Site Plan and Floor Plans: Detailed site plans that outline property layout, floor plans,
parking arrangements, and any amenities.
• Compliance Statements:
12 Examples: Good-Visitor-Guide (charlevoixmi.gov) (Also in Appendix C)
13 Examples: STR-Inspection-Checklist (fbgtx.org) (Also in Appendix D)
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o Dark Sky Compliance: Documentation confirming adherence to dark sky
regulations to minimize light pollution.
o Trash/Waste Maintenance Plan: A plan outlining the waste disposal procedure,
ensuring trash is managed at least weekly or after each guest stay, whichever is
more frequent.
• Parking Requirements: Evidence of adequate parking, with at least one parking space per
rented bedroom and one additional space.
• Water and Sewage: Proof of a legal water supply and sewage disposal method.
• Contact Person or Managing Agent: Designation of a 24/7 contact person or managing
agent who can address on-site issues and respond within a specified timeframe (e.g., 30
minutes, 20 miles).
Implementing these measures will help ensure that short-term rental properties operate safely
and in compliance with local regulations, thereby protecting both guests and the surrounding
community.
4.1.5 Compliance, Implementation, and Enforcement
For effective enforcement and compliance, a dedicated authority will be responsible for STR
regulation and inspections, with open communication channels to the Police and Fire
Departments. Enforcement must involve clear communication, responsiveness, and the use of
technology. Penalties for violations will be proportionate to the financial benefits gained from
non-compliance. Measures will be in place to address repeat offenses, including the potential
suspension or revocation of licenses, and the imposition of financial penalties for ongoing issues.
To support the implementation of these regulations, additional staffing will be required for
registration, inspections, and code enforcement. Necessary software and hardware will be
acquired for effective management and tracking. Community outreach will be crucial for
promoting long-term rental options and educating the public about STR regulations. Updating
the Town website and conducting outreach programs will ensure that the community remains
informed and engaged.
4.2 Role of Technology
The regulation of short-term rentals (STRs) presents significant challenges, particularly in
maintaining compliance and enforcing local laws effectively. To address these challenges,
technology plays a pivotal role. Without advanced technological solutions, the Town faces a
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higher risk of persistent non-compliance, a burdened enforcement system, and the need for
increased staffing to manage the complex demands of STR regulation.
The integration of technology is not just beneficial but essential to the successful implementation
of the recommended changes. It provides tools that can streamline processes, improve
efficiency, and enhance enforcement capabilities. Recent discussions wi th Granicus/Host
Compliance have highlighted the value that their technology can bring to addressing these needs.
Here’s why adopting such technology is a critical component of the solution:
1. Enhanced Monitoring and Compliance: Granicus/Host Compliance offers sophisticated
address identification technology that scans data from over 70 online rental platforms.
This capability allows for comprehensive monitoring of the STR market, identifying
addresses and owners, and creating detailed rental records. Such technology provides
essential oversight and helps prevent the proliferation of unregulated rentals.
2. Streamlined Enforcement: The platform includes features for compliance monitoring and
systematic outreach to illegal STR operators. By mapping compliant and non -compliant
properties, it enables efficient enforcement actions. The ability to issue warning letters
directly through the platform with attached evidence simplifies the process and
strengthens enforcement efforts.
3. Efficient Permitting and Registration: Technology supports a modernized application
process through mobile interfaces and online forms. This streamlines the collection of
documentation, signatures, and payments. For a Town that currently relies on paper-
based systems, transitioning to digital workflows with tools like “Open Forms” will
significantly enhance operational efficiency and reduce administrative burdens.
4. Real-Time Issue Resolution: The 24/7 hotline and mobile support features allow
neighbors to report non-emergency incidents with ease. Submissions of photos or videos,
combined with prompt notifications to rental hosts, ensure that issues are addressed in
real time. This proactive approach improves community relations and ensures that
complaints are managed effectively.
By integrating these technological solutions, the Town can tackle the complexities of STR
regulation more effectively. Technology not only simplifies the administrative processes but also
strengthens compliance and enforcement, reducing the need for additiona l staff and resources.
Granicus/Host Compliance, already utilized by Suffolk County, offers a solution with potential
Incorporating advanced technology into the regulation of short-term
rentals is not merely an option but a strategic necessity to ensure effective
management and compliance in an increasingly complex environment.
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cost benefits due to existing local mapping. However, the Town Board may wish to explore other
available options to ensure the best fit for local needs. Incorporating advanced technology into
the regulation of short-term rentals is not merely an option but a strategic necessity to ensure
effective management and compliance in an increasingly complex environment.
4.3 Conclusion
This report offers a comprehensive analysis of short-term rental (STR) management,
encompassing best practices, relevant case law, and the specifics of the Town's existing rental
practices and codes. Through an in-depth examination of various options, the Short-Term Rental
Task Force carefully evaluated the advantages and disadvantages of each potential approach.
The proposed solution is designed to address the unique needs of Southold Town while ensuring
effective regulation. This approach provides a balanced and practical framework for managing
STRs, aligning with the Town's Comprehensive Plan.
The Town Board is encouraged to consider these insights and recommendations in their
deliberations to determine the most suitable course of action for the future regulation of short -
term rentals in Southold.14
14 At the end of the 2024 legislative session, legislators passed S885B/A4130A, which regulates short-term rentals
(STRs). As of this report, the bill is still awaiting the Governor's signature and will need to be factored into Southold
Town’s future considerations.
As the legal and legislative landscape
of short-term rentals will continue to
evolve, it is prudent for local
governments to allow their code to also
evolve in a manner that both complies
with the law and suits the needs of their
community.
-Katie Hodgdon, New York Zoning Law and
Practice Report, January/February 2024
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5.0 APPENDICES
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APPENDIX A: Quotes from 2020 Southold Town Comprehensive Plan
Executive Summary / 8: Housing -- The lack of affordable housing options is at crisis proportions
in Southold Town, and the goals of the Housing chapter reflect this concern. Safe and affordable
housing is vital to a community’s stability and growth. Increasing the amount of affordable
housing to help sustain its year-round residents is a goal of the Town; in 2010, fewer than 10
percent of the housing units were year-round rentals. In addition to the scarcity of market -rate
rental housing, subsidized rental housing units administered by the North Fork Housing Alliance
have remained stagnant through the years, despite the rising number of residents needing rent
subsidies to afford to remain in their communities. Finally, safe and affordable housing is also
needed for the vulnerable citizens in our population. Seniors, people with special needs, people
in recovery from substance abuse, and the homeless may need subsidized housing options. The
principal goals for housing are as follows: • Create affordable housing. • Promote awareness
about housing issues. • Retain residents in existing housing. • Protect quality of life. • Develop
best practices in housing.
Chapter 3: Land Use & Zoning / Objective 2.2: Review zoning for residential districts / C:
Transient Rentals -- In 2014, new types of transient rentals were introduced into the area,
facilitated by websites such as Airbnb, VRBO, and Homeaway.com. Many homes are being
purchased by investors and used solely for this purpose, leading to an erosion of community and
tranquility of residential neighborhoods, and reducing the available inventory of homes available
for year-round rental. This can also be considered a commercial use in residential zone: it reduces
the viability of commercial bed and breakfast operations and local hotels. Limit transient rentals
to preserve the quality and tranquility of residential neighborhoods.
Chapter 7: Economic Development / Objective 1.8: Seek to reverse the “brain drain” through
the attraction and retention of recent college graduates and young professionals to the Town’s
diverse workforce. / B: Ensure an array of housing alternatives -- Ensure an array of housing
alternatives—including both affordable and workforce options—that meet the needs of recent
college graduates, young professionals and other members of the Town’s diverse workforce. A
diverse housing stock—both affordable and workforce, rental and owner-occupied—is needed
within all parts of Town. Recent college graduates, young professionals, and young families have
difficulty affording housing in Southold, which in part has resulted in an invaluable loss of talent,
diversity, and resources. To become a more live-work community (at the time of this analysis in
2011 55.8 percent of residents lived and worked within the Town), the Town must provide
housing that accommodates those who wish to live here—especially recent college graduates
and young professionals. The 2005 Hamlet Study and the 2007–08 Hamlet Stakeholder Initiatives
identified providing affordable and diverse housing as a priority of the Town. Public participation
efforts suggested the need for additional affordable and workforce housing in all parts of Town.
To do this, the Town will continue to improve its zoning code to provide more flexibility for the
creation of affordable rentals and homes, especially in the hamlet centers and HALO zones.
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Chapter 7: Economic Development / Objective 1.9: Ensure the provision of various housing
options for the Town’s grown senior population -- As the population in the Town continues to
age, resources geared toward a retired population, namely senior housing, will be in demand
throughout the community. A diverse housing stock for senior residents—both rental and owner-
occupied, affordable and market-rate, as well as naturally occurring retirement communities—is
needed within all parts of Town. Despite the recen t construction of Peconic Landing and the
operations of other assisted-living communities and skilled nursing facilities that cater to the
Town’s aging population, there is an unmet need for senior housing, especially affordable options
for active senior residents. Many of the Town’s senior residents are moving to Riverhead and
other places farther west because they are unable to find suitable housing in Southold. In
addition, residents of Fishers Island that were formerly provided with housing through thei r
employers are being forced to leave the Island upon retirement, due to a lack of affordable
housing options. The Town should work to ensure that such senior housing alternatives are
provided throughout the community.
Chapter 7: Economic Development / Objective 3.3: Explore ways to overcome the obstacle of
limited sanitary flow credits on individual parcels, in an effort to help businesses and
landowners in hamlet centers expand or add accessory apartments -- Suffolk County
Department of Health Services (SCDHS) limits the volume of sanitary waste discharged on a given
sized parcel of land to 600 gpd/acre (Groundwater Management Zone IV), provided public water
is available. SCDHS will permit transfer of sanitary credits that result in no more than double the
allowable sanitary flow density, subject to approval of the Board of Review. The Town Code
allows this transfer only for housing that meets the Town’s guidelines for affordable, and not for
an existing business to expand (for example, a restaurant wanting to add more seats). Due to the
small size of many downtown parcels, even with double the density they may not be able to meet
the flow requirement to add an apartment. With the advent of innovative alternative on-site
wastewater treatments systems (I/A OWTS), there may be opportunities in the future to provide
some limited expansion of the amount of density on a parcel for the purposes of providing
affordable rentals over commercial uses in the downtown. There may also be an opportunity for
existing businesses to be able to expand using these systems; however, in addition to the SCDHS
allowing it, the Town Code would have to be amended also.
Chapter 7: Economic Development / Objective 4.4: Support the local agricultural industry, and
the increased production of a diverse range of local goods in the North Fork / B: Complement
the strength of the Town’s tourism and agriculture industries through the provision of services
that promote economies of scale in Southold Town -- There has been increased demand for
people buying space in town and at the local wineries to make their own wine. With this
increased demand may come a role for cooperative warehousing and distribution space.
Moreover, the Town should seek to attract new and appropriate businesses including small
“country” hotels, bed & breakfasts, rental cottages, and specialty foods, as well as high -end to
family-friendly and economical restaurants. Wherever possible, these Town efforts and programs
should be coordinated with regional initiatives at the regional, county, and state level.
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Chapter 8: Housing / Background: Housing Costs and Affordability -- Southold has long been a
destination for second homeowners and retirees due to its rural character and plentiful
recreational opportunities. The buying power of the second and retirement home purchasers has
been a major factor in driving up home prices. From 1990 to 2005, single-family homes in
Southold tripled in price, as measured by median sales, far outstripping the increase in the
median income for Southold residents. Low inventory, especially of homes on the lower end of
the price range is also a problem and contributing to this low inventory is the business of vacation
rentals, which is based on the buying of homes expressly to rent them out for short -term
vacations using websites such as Airbnb and VRBO.com. In addition, although home prices fell
significantly during the Great Recession, the 2017 median sales price for a home was higher than
ever before, pushing home ownership beyond the reach of many residents.
Chapter 8: Housing / Background: Housing Needs and Challenges –
Safe and affordable housing is vital to a community’s stability and growth. Increasing the amount
of affordable housing to help sustain its year-round residents is a goal of the Town. Fewer than
10 percent of the housing units counted in the 2010 Census were year-round rentals. In addition
to the scarcity of market-rate rental housing, the subsidized rental housing units administered by
the North Fork Housing Alliance have remained stagnant through the years, despite the rising
number of residents in need of rent subsidies to afford to remain in their communities.
Availability of affordable housing for full-time residents, especially workers, is a serious problem.
High housing costs will ultimately result in the ongoing decline in year-round residents, young
people, and families in the area. The diminishing represen tation of year-round residents and
young families will have an impact on our community overall, and more specifically on local
employers, school enrollment, and staffing of local volunteer efforts such as the all-volunteer fire
departments.
Chapter 8: Housing / Goal 4: Protect Quality of Life - Protect quality of life for neighbors of
neglected homes and blighted properties, and protect the safety of tenants in rentals /
Objective 4.2 -- Address the problems that result from tenant overcrowding (fire safety, parking,
garbage, and noise) in unpermitted and/or unsafe structures.
Chapter 11: Human Services/ Objective 11.1: Provide additional diversified housing from
existing stock in all of the Town’s hamlets to help meet the needs of current year -round
residents / C -- Promote universal design elements in the building code to accommodate seniors
ageing in place and persons with physical disabilities. Establish loans and grants from the Town’s
CDBG funding to convert larger homes from existing stock into units of affordable rental housing.
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APPENDIX B: Recommendations from Housing Plan
Address the Impacts of Short-Term Rentals
STR Role in Housing Crisis
As stated previously, short term rentals (STRs), defined in §280 -4B of Town of Southold code as
a dwelling unit rented for a period of less than 2 weeks, is prohibited in the Town. Similarly, in
the Village of Greenport, STRs are limited to a minimum of 2 weeks (unless the dwelling is owner -
occupied or there is a long-term tenant). However, as of February 2023 there were over 73015
STR listings in the Town/Village with the highest density occurring in and around the Village of
Greenport. This Plan recognizes that STRs (regardless of legality of the units) are playing a role
in the housing crisis by reducing housing units available for year-round rentals. Year-round
rentals are crucial to meeting community housing goals as they provide lower-priced housing
solutions for people in lieu of homeownership.
Enforcement and Regulation of STRs
It is strongly recommended that the STR issue be revisited by the Town and consideration be
given to increased enforcement in order to reduce the number of illegal units. In addition, if STRs
are ever permitted in the future, which this Plan does not suggest or endorse, the Town should
consider establishing tools and regulations to effectively monitor and manage regular
enforcement.
Specifically, this Plan recommends that the Town invest in software for STR monitoring and
enforcement used in other towns (e.g. Granicus) as it is an efficient, effective and revenue -
producing tool to address the impact of short-term rentals on the availability of year-round
housing units in Southold Town. In addition, the Town might consider creating regulations
including an impact fee for short-term rentals that in turn can be deposited in the CHF for use in
supporting year-round community housing.
Another recommendation, if the Town were to permit STRs in the future, is to find ways to lessen
the impact on available year-round housing stock by developing a permitting process with a
specified number of issues per hamlet per year, or potentially designating area/zones within
Town where STRs could be considered. These regulations could streamline enforcement while
bringing monies back to the Housing Funds.
15 Data collected from airdna.co.
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APPENDIX C: Sample Good Neighbor Guide16
16 Good-Visitor-Guide (charlevoixmi.gov)
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APPENDIX D: Sample Life Safety Inspection Checklist17
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17 STR-Inspection-Checklist (fbgtx.org)
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