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HomeMy WebLinkAboutIthaca STR-Circulation-Packet-03-27-2024_202403281236135539.pdfDate: March 27, 2024 To: Robert Cantelmo, Mayor Planning and Development Board Common Council Board of Zoning Appeals Deborah Mohlenhoff, City Manager Victor Kessler, Acting City Attorney Shaniqua Lewis, Deputy City Clerk Mike Thorne, Superintendent of Public Works Alan Karasin, Acting Director, Public Information & Technology City of Ithaca Department of Planning and Development Katie Borgella, Tompkins County Commissioner of Planning and Sustainability From: Maura Baldiga, Temporary Planner; Megan Wilson, Deputy Director of Planning & Development RE: Short-Term Rental Ordinance Public Hearing EXECUTIVE SUMMARY The City of Ithaca is considering a short-term rental ordinance which would regulate the use of residential units as rentals for less than 30 days. A public hearing will be held to hear input on the proposed ordinance on April 10, 2024. The proposed ordinance specifically addresses the established policy objectives of housing preservation and affordability and will be feasible to implement and monitor. KEY ISSUES IDENTIFIED/OBJECTIVES The Planning and Economic Development Committee previously agreed to the following objectives for the City’s short-term rental ordinance: -Preserve housing affordability in the long-term rental and homeownership markets -Allow residents to generate additional income from their primary residences -Balance the possible positive and negative impacts of short-term rentals o Positive: Increase peak supply of lodging and meet seasonal demands o Negative: Health and safety concerns, lack of compliance with City’s room tax law, neighborhood impacts PROJECT HISTORY, BACKGROUND, & ANALYSIS Staff explored multiple approaches to short-term rentals during the development of the current ordinance. For links to background information and research, see the City’s Short-Term Rental Resources Page. Staff considered the experiences of other municipalities, consultation with a short-term rental policy expert, and community feedback. Staff found that, 1. There is support for regulation of short-term rentals in the City of Ithaca, 2. The previous proposal was not feasible to monitor and was very complex, and, CITY OF ITHACA 108 E. Green St. — Third Floor Ithaca, NY 14850-5690 DEPARTMENT OF PLANNING AND DEVELOPMENT Lisa Nicholas, AICP, Director Planning & Development – 607-274-6550 Community Development/IURA – 607-274-6565 E-Mail: dgrunder@cityofithaca.org 3. Other approaches did not meet the primary policy objectives of preserving housing in the long-term and homeownership market and supporting residences in earning additional income from their primary residence. Based on public outreach and other feedback, the proposed ordinance is simpler, more effective at addressing the policy objectives, and feasible to fully implement. Proposed Ordinance 1. Permits would only be issued to a primary resident of the property. Permits cannot be issued to LLCs, corporations, or trusts. 2. Short-term rentals are allowed in any single- and two-family dwelling units. 3. Short-term rentals are allowed in any owner-occupied dwelling units within a multiple dwelling or mixed-use building. The proposed ordinance does not allow non-primary residences to be used as short-term rentals. This is based on the determination that limiting short-term rentals by season or by a specific number of days per year would be difficult to enforce and that this type of short-term rental does not meet the City’s two primary short-term rental objectives. NEXT STEPS Common Council will consider the proposed ordinance and hold a public hearing at its meeting on April 10, 2024. Your comments are respectfully requested prior to this date. If you have any questions, please reach out to Maura Baldiga or Megan Wilson at (607) 274-6550. An Ordinance Amending the City of Ithaca Municipal Code, Chapter 325, “Zoning” WHEREAS, the City of Ithaca Common Council recognizes that the presence of full-time short-term rentals decrease the housing supply available for homeownership and long- term rentals, and WHEREAS, the Common Council also recognizes that hosting short-term rentals provides residents with a source of additional income to defray their cost of living, and WHEREAS, after discussion and research by staff, Common Council established the following objectives for the short-term rental ordinance - Preserve housing affordability in the long-term rental and homeownership markets - Allow residents to generate additional income from their primary residences - Balance the positive impacts of short-term rentals (increased supply of lodging, especially during peak demand periods) with potential negative impacts (health and safety concerns for those staying in short-term rentals; impacts on neighbors due to noise, traffic, trash), and WHEREAS, the Common Council of the City of Ithaca desires to amend Chapter 325 of the Ithaca City Code to meet the above objectives; now, therefore ORDINANCE NO. 2024-XX BE IT ORDAINED AND ENACTED by the Common Council of the City of Ithaca as follows: Section 1. Section 3(B) of Chapter 325, Zoning, of the Municipal Code of the City of Ithaca is hereby amended to add the following definitions: HOST Any owner or long-term leaseholder of a property who offers a short-term rental. LONG-TERM RENTAL A dwelling unit that is offered for rent in whole or in part for 30 or more consecutive days. PRIMARY RESIDENCE A dwelling unit where the owner or long-term leaseholder resides for a minimum of 184 days per calendar year. SHORT-TERM RENTAL A dwelling unit that is offered for rent in whole or in part for less than 30 days. Section 2. A new section (Chapter 352, Section 27) entitled “Short-Term Rentals”, is hereby added to the Municipal Code of the City of Ithaca, to read as follows: § 325-27.1 Title. This section shall be known as and may be cited as the “Short-Term Rental Ordinance.” § 325-27.2 Purpose and Intent. The intent of the policy is to regulate short-term rentals in the City of Ithaca in order to: A. Preserve housing affordability and availability in the long-term rental and homeownership markets. B. Permit owners and long-term leaseholders to generate additional income from their properties. C. Protect the health and safety of guests staying in short-term rentals. D. Increase lodging supply during peak demand periods. E. Ensure compliance with the City’s hotel occupancy tax. F. Reduce the negative impacts of short-term rentals on neighbors. § 325.27.3 Applicability. This section applies to all short -term rentals offered and/or placed under contract within the City of Ithaca on or after the effective date of this ordinance. Notwithstanding the foregoing, any short-term rental stay already under contract prior to the effective date of this ordinance shall not require an operating permit. § 325.27.4 Short-Term Rental Regulations. A. Short-term rentals are permitted only in zones in which residential uses are allowed. B. Short-term rentals are only permitted in: 1. Single-family dwelling units 2. Two-family dwelling units 3. Any owner-occupied dwelling unit within a multiple dwelling or mixed-use building C. Prior to offering a short-term rental, every host is required to hold a valid short-term rental operating permit issued by the Director of Planning and Development. Each short-term rental operating permit shall identify all of the host’s units on the property authorized for use as a short-term rental. D. A short-term rental operating permit may only be issued for a property that is the primary residence of the host. E. Only natural persons shall be eligible to receive a short-term rental operating permit. Corporations, limited liability companies, trusts, and other such entities are prohibited from offering short-term rentals, serving as hosts, and/or receiving a short-term rental operating permit. F. A host who is not an owner of the property to be offered as a short- term rental must provide written authorization from the property owner as part of each application or renewal for a short-term rental operating permit. G. There shall be no limit on the number of days for which a dwelling unit may be offered or rented for short-term rentals pursuant to a valid short-term rental operating permit, provided that the host(s) maintain their primary residence on the property. H. It shall be a violation to rent, offer, or advertise a short-term rental without a valid short-term rental operating permit. § 325.27.5 Permit Application Process. A. Hosts must submit a completed short-term rental operating permit application on a form approved by the Director of Planning and Development, along with all additional materials required by the Director. Such additional materials may include, but shall not be limited to: 1. Proof of primary residency 2. Owner’s Authorization, if applicable 3. A permit fee as set and revised from time to time by the Director. B. The Director of Planning and Development shall review the application and confirm that it meets the requirements set forth in § 325.27.4. Upon completion of this review, including verification of a valid certificate of compliance, the Director shall issue the short-term operating permit for a period of one (1) year. C. Short-term rental operating permits are nontransferable and valid only for the dwelling unit(s) and host(s) for which they are issued. D. Upon expiration of a short-term rental operating permit, the host shall be required to apply to renew the short-term rental operating permit prior to offering further short-term rentals at the property. E. An application to renew a short-term rental operating permit may be submitted and approved prior to the expiration of an in-force short-term rental operating permit. § 325.27.6 Operational Requirements. A. A valid certificate of compliance must be maintained for the rental period covered by the short-term operating permit. B. All required City and County hotel occupancy taxes must be remitted as required by Chapter 105, Room Occupancy Tax, of the City of Ithaca Municipal Code. C. Occupancy of a short-term rental shall never exceed the maximum occupancy stated on the certificate of compliance. D. Hosts must post the following information in the main entryway of each dwelling unit used as a short-term rental: 1. Copy of the short-term rental operating permit. 2. Copy of the certificate of compliance, which states maximum occupancy of the unit. 3. Emergency contact information including police, fire, and poison control, as well as the property’s full physical address. E. Hosts must include their short-term rental operating permit number in all short-term rental listings. § 325.27.7 Revocation of Permit. Failure to meet any requirement of the Short-Term Rental Ordinance shall result in the immediate revocation of the short-term rental operating permit. Any host that fails to meet any requirement of this Short-Term Rental Ordinance shall be ineligible to apply for a short-term rental operating permit for a period of 3 years from the date of the revocation. § 325-27.8 Permit Renewals. A. Hosts must apply to renew their short-term rental operating permit each year by submitting a completed renewal application and all requested documentation to the Department of Planning and Development. B. If the host’s certificate of compliance remains valid, the host must submit an Affidavit of Compliance stating that the short-term rental units continue to meet the conditions of approval. If the certificate of compliance has expired, a new certificate of compliance must be issued before the permit is renewed. C. Hosts must be current on all required occupancy taxes before their permits are renewed. § 325-27.9 Penalties and Appeals. A. If a property or host is found to be in violation of any provision of this section, the owner of the property and/or the host shall be strictly liable of the offense and shall be subject to the penalties provided in Section 325-47, Penalties, of the Municipal Code of the City of Ithaca. B. In addition to any penalty imposed by a court of competent jurisdiction, a host found to be in violation of any provision of this Short-Term Rental Ordinance shall be ineligible to apply for a short-term rental operating permit for a period of 3 years from the date of conviction. C. Any person aggrieved by any decision of the Director pursuant to the provisions of this section may appeal such decision to the Board of Zoning Appeals, as provided in Section 325-37 of the Municipal Code of the City of Ithaca. This appeals process shall not apply to prosecutions or other legal proceedings brought in the name of the City or the People to enforce the provisions of this section. Section 3. Severability. Severability is intended throughout and within the provisions of this ordinance. If any section, subsection, sentence, clause, phrase or portion of this ordinance is held to be invalid or unconstitutional by a court of competent jurisdiction, then that decision shall not affect the validity of the remaining portions of this ordinance. Section 4. Effective date. This ordinance shall take effect immediately and in accordance with law upon publication of notices as provided in the Ithaca City Charter. Page 1 of 3 Short Environmental Assessment Form Part 1 - Project Information Instructions for Completing Part 1 – Project Information. The applicant or project sponsor is responsible for the completion of Part 1. Responses become part of the application for approval or funding, are subject to public review, and may be subject to further verification. Complete Part 1 based on information currently available. If additional research or investigation would be needed to fully respond to any item, please answer as thoroughly as possible based on current information. Complete all items in Part 1. You may also provide any additional information which you believe will be needed by or useful to the lead agency; attach additional pages as necessary to supplement any item. Part 1 – Project and Sponsor Information Name of Action or Project: Project Location (describe, and attach a location map): Brief Description of Proposed Action: Name of Applicant or Sponsor: Telephone: E-Mail: Address: City/PO: State: Zip Code: 1.Does the proposed action only involve the legislative adoption of a plan, local law, ordinance, administrative rule, or regulation? If Yes, attach a narrative description of the intent of the proposed action and the environmental resources that may be affected in the municipality and proceed to Part 2. If no, continue to question 2. NO YES 2.Does the proposed action require a permit, approval or funding from any other government Agency? If Yes, list agency(s) name and permit or approval:NO YES 3.a. Total acreage of the site of the proposed action? __________ acres b. Total acreage to be physically disturbed? __________ acres c. Total acreage (project site and any contiguous properties) owned or controlled by the applicant or project sponsor? __________ acres 4.Check all land uses that occur on, are adjoining or near the proposed action: 5. Urban Rural (non-agriculture) Industrial Commercial Residential (suburban) Aquatic Other(Specify):□ Forest Agriculture □ Parkland SEAF 2019 Page 2 of 3 5.Is the proposed action, a.A permitted use under the zoning regulations? b.Consistent with the adopted comprehensive plan? NO YES N/A 6.Is the proposed action consistent with the predominant character of the existing built or natural landscape?NO YES 7.Is the site of the proposed action located in, or does it adjoin, a state listed Critical Environmental Area? If Yes, identify: ________________________________________________________________________________ NO YES 8.a. Will the proposed action result in a substantial increase in traffic above present levels? b.Are public transportation services available at or near the site of the proposed action? c.Are any pedestrian accommodations or bicycle routes available on or near the site of the proposed action? NO YES 9.Does the proposed action meet or exceed the state energy code requirements? If the proposed action will exceed requirements, describe design features and technologies: _____________________________________________________________________________________________ _____________________________________________________________________________________________ NO YES 10.Will the proposed action connect to an existing public/private water supply? If No, describe method for providing potable water: _________________________________________ _____________________________________________________________________________________________ NO YES 11.Will the proposed action connect to existing wastewater utilities? If No, describe method for providing wastewater treatment: ______________________________________ _____________________________________________________________________________________________ NO YES archaeological sites on the NY State Historic Preservation Office (SHPO) archaeological site inventory? NO YES 13. a. Does any portion of the site of the proposed action, or lands adjoining the proposed action, contain wetlands or other waterbodies regulated by a federal, state or local agency? b.Would the proposed action physically alter, or encroach into, any existing wetland or waterbody? If Yes, identify the wetland or waterbody and extent of alterations in square feet or acres: _____________________ _____________________________________________________________________________________________ _____________________________________________________________________________________________ NO YES 12.a. Does the project site contain, or is it substantially contiguous to, a building, archaeological site, or district which is listed on the National or State Register of Historic Places, or that has been determined by the Commissioner of the NYS Office of Parks, Recreation and Historic Preservation to be eligible for listing on the State Register of Historic Places? b.Is the project site, or any portion of it, located in or adjacent to an area designated as sensitive for Page 3 of 3 14.Identify the typical habitat types that occur on, or are likely to be found on the project site. Check all that apply: □Shoreline □ Forest Agricultural/grasslands Early mid-successional Wetland □ Urban Suburban 15.Does the site of the proposed action contain any species of animal, or associated habitats, listed by the State or Federal government as threatened or endangered?NO YES 16.Is the project site located in the 100-year flood plan?NO YES 17.Will the proposed action create storm water discharge, either from point or non-point sources? If Yes, a.Will storm water discharges flow to adjacent properties? b.Will storm water discharges be directed to established conveyance systems (runoff and storm drains)? If Yes, briefly describe: _____________________________________________________________________________________________ _____________________________________________________________________________________________ NO YES 18.Does the proposed action include construction or other activities that would result in the impoundment of water or other liquids (e.g., retention pond, waste lagoon, dam)? If Yes, explain the purpose and size of the impoundment:______________________________________________ ____________________________________________________________________________________________ _ NO YES 19.Has the site of the proposed action or an adjoining property been the location of an active or closed solid waste management facility? If Yes, describe: _______________________________________________________________________________ _____________________________________________________________________________________________ NO YES 20.Has the site of the proposed action or an adjoining property been the subject of remediation (ongoing or completed) for hazardous waste? If Yes, describe: _______________________________________________________________________________ _____________________________________________________________________________________________ NO YES I CERTIFY THAT THE INFORMATION PROVIDED ABOVE IS TRUE AND ACCURATE TO THE BEST OF MY KNOWLEDGE Date: _____________________ Applicant/sponsor/name: ____________________________________________________ __________________________ Signature: _____________________________________________________Title:__________________________________ Page 1 of 2 Agency Use Only [If applicable] Project Date: Short Environmental Assessment Form Part 2 - Impact Assessment Part 2 is to be completed by the Lead Agency. Answer all of the following questions in Part 2 using the information contained in Part 1 and other materials submitted by the project sponsor or otherwise available to the reviewer. When answering the questions the reviewer should be guided by the concept “Have my responses been reasonable considering the scale and context of the proposed action?” No, or small impact may occur Moderate to large impact may occur 1. Will the proposed action create a material conflict with an adopted land use plan or zoning regulations? 2.Will the proposed action result in a change in the use or intensity of use of land? 3.Will the proposed action impair the character or quality of the existing community? 4.Will the proposed action have an impact on the environmental characteristics that caused the establishment of a Critical Environmental Area (CEA)? 5.Will the proposed action result in an adverse change in the existing level of traffic or affect existing infrastructure for mass transit, biking or walkway? 6.Will the proposed action cause an increase in the use of energy and it fails to incorporate reasonably available energy conservation or renewable energy opportunities? 7.Will the proposed action impact existing: a. public / private water supplies? b. public / private wastewater treatment utilities? 8.Will the proposed action impair the character or quality of important historic, archaeological, architectural or aesthetic resources? 9.Will the proposed action result in an adverse change to natural resources (e.g., wetlands, waterbodies, groundwater, air quality, flora and fauna)? 10.Will the proposed action result in an increase in the potential for erosion, flooding or drainage problems? 11.Will the proposed action create a hazard to environmental resources or human health? SEAF 2019 Page 2 of 2 For every question in Part 2 that was answered “moderate to large impact may occur”, or if there is a need to explain why a particular element of the proposed action may or will not result in a significant adverse environmental impact, please complete Part 3. Part 3 should, in sufficient detail, identify the impact, including any measures or design elements that have been included by the project sponsor to avoid or reduce impacts. Part 3 should also explain how the lead agency determined that the impact may or will not be significant. Each potential impact should be assessed considering its setting, probability of occurring, duration, irreversibility, geographic scope and magnitude. Also consider the potential for short- term, long-term and cumulative impacts. Check this box if you have determined, based on the information and analysis above, and any supporting documentation, that the proposed action may result in one or more potentially large or significant adverse impacts and an environmental impact statement is required. Check this box if you have determined, based on the information and analysis above, and any supporting documentation, that the proposed action will not result in any significant adverse environmental impacts. _________________________________________________ _______________________________________________ Name of Lead Agency Date _________________________________________________ _______________________________________________ Print or Type Name of Responsible Officer in Lead Agency Title of Responsible Officer _________________________________________________ _______________________________________________ Signature of Responsible Officer in Lead Agency Signature of Preparer (if different from Responsible Officer) Short Environmental Assessment Form Part 3 Determination of Significance Agency Use Only [If applicable] Project: Date: