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Home My WebLink AboutSTR Task Force Findings Presentation (Public).pdfShort-Term Rental Task Force Findings August 13, 2024 Town of Southold Agenda 1 2 3 4 5 Overview of Task Force Context & Current Town Practices Research Insights Options Explored Final Recommendation Short-Term Rental Task Force Findings Report 20242 History of Vacation Rentals in Southold 3 Short-Term Rental Task Force Findings Report 20244 Thank you to the Southold Historical Museum and Society for the Preservation of Long Island Antiquities for these images. Short-Term Rental Task Force Findings Report 20245 The Town Board created a Short-Term Rental Task Force in March 2024 to address the complexities surrounding STRs. ▪John Stype, Deputy Supervisor ▪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 Short-Term Rental Task Force Findings Report 20246 Short-Term Rental Task Force Objectives •Analyze Impact •Review Data & Case Studies •Propose Solutions Timeline April 2 & 10, 2024 Kickoff Meeting and Goal Setting May 28, 2024 Research Review and Discussion of Options July 23, 2024 Preparation for Final Recommendation April 30, 2024 Examination of Current Practices June 25, 2024 Comprehensive Plan Guidance and Options Review Preserve residential zones for local residents. Maintain the intended use and character of residential areas. Balance housing availability and stability within the community. Protect the safety and well-being of residents. Prioritize local economic sustainability. Maintain quality of life for local residents. Maintain housing stock for year-round attainable homes (rental and ownership). Ensure that STRs do not threaten character of residential neighborhoods. Make sure that STRs are not a nuisance, or threaten the public health, safety, or welfare. Retain residents in existing homes. Preserve commercial property available for small businesses. Consider ways that STRs might intentionally bolster the tourism economy.Guiding PrinciplesShort-Term Rental Task Force Findings Report 202410 Housing Statistics (as of 2020): •Total Housing Units: 16,298 •Vacant Units: 41% (includes seasonal residences, unoccupied units, and units for sale) Short-Term Rental Impact: •February 2023 Data: •Active Short-Term Rentals: 730 •March 2024 Data: •Active Short-Term Rentals: 980 Average Annual Revenue for Short -Term Rentals: •$107,556 per property Short-Term Rental Task Force Findings Report 202411 Hamlets Rentals Average Daily Rate Occupancy Rate Annual 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 Short-Term Rental Task Force Findings Report 202412 Data from airdna.co, March 2024. Impact on Affordable Housing: ▪STRs may negatively affect affordable housing availability, particularly in high-tourism areas. ▪Studies indicate that increasing STRs correlates with a reduction in affordable housing stock. Role of Property Management Companies: •At least four LLCs managing over 40 properties in March 2024. Consequences: •Reduction in long-term rental options •Limited community investment and cohesion Short-Term Rental Task Force Findings Report 202413 Legislative Tools •Comprehensive Plan •Procedural Considerations •General Zoning Authority •Permitting Authority & Fee Structure •Special Use Permits 14 Case Law Review Hignell-Stark v. City of New Orleans Wallace v. Town of Grand Island Weisenberg v. Shelter Island Calvey v. Town of North Elba Short-Term Rental Task Force Findings Report 202415 Key Takeaways ▪Legislation regulating STR using permits should include language indicating that the permit is a privilege, not a right, and can be revoked any point for non - compliance with regulations set forth in legislation. ▪Avoid residency requirements that treat local residents differently than non - residents—instead increase penalties in local laws for violations and revoke permits for repeat offenders and/or find alternatives to residency requirements. ▪Homeowners are not entitled to the MOST beneficial use of their property. ▪Regulate the “Use” not the “User”. ▪Steer clear of arbitrary exemptions to avoid potential equal protection concerns. ▪Impose reasonable reporting requirements for STR’s to avoid Fourth Amendment Claims. Short-Term Rental Task Force Findings Report 202416 Southold Town Code & Short Term Rentals Short-Term Rental Task Force Findings Report 202417 Short Term Rental = Transient Rental ▪Chapter 280 Zoning ➢Transient Rental = Rental < 14 days ➢Prohibited in all zoning districts ▪Chapter 207 Rental Permits ➢Rentals ≥ 14 days require rental permit ➢Only one type of permit - same for short term & year -round Short-Term Rental Task Force Findings Report 202418 How are rental applications evaluated? ▪Building Dept. checks to make sure that the location is up-to-code. ▪Duration of rentals is not addressed in Chapter 207. ▪There is no system in place to track duration of rentals. ▪Duration is only addressed if there is a complaint, and in that case, Code Enforcement/Town Attorney handles it. Short-Term Rental Task Force Findings Report 202419 ▪What kind of follow-up is needed once a rental permit is issued? ▪Expiration: 24 months ▪Automatic renewal letters generated by Laserfiche & sent by Building Dept. ▪How many rental permits are active now? ▪About 1,000 active permits. ▪Another 500-1000 are pending due to c.o. issues. ▪Do we know the nature of each rental with a permit? Are they year-round? Seasonal? ▪No, that information is not required. Short-Term Rental Task Force Findings Report 202420 Code Enforcement Practices ▪Verification ▪Investigation ▪Site Visits ▪Affidavit Collection ▪Issuance of Tickets ▪Permit Enforcement ▪Resolution Short-Term Rental Task Force Findings Report 202421 Chatham, MA Saratoga Springs, NY Fredericksburg, TX Charlevoix, MI Chatham, NY Research Insights Short-Term Rental Task Force Findings Report 202422 Commonalities Key Differences ▪Application Fees ▪Occupancy & Parking: Rules vary based on local needs and infrastructure. ▪Penalties ▪Permitting ▪Occupancy Limits ▪Emergency Contact ▪Violations ▪Quality of Life Short-Term Rental Task Force Findings Report 202423 Options Maintain the Current Definition of Transient Rentals (Less than 14 Days) Prohibit All Short-Term Rentals (Less than 30 Days) Restrict Short-Term Rentals to Owner- Occupied Primary Residences Cap the Number of Short-Term Rentals Town- Wide Limit the Number of Short-Term Rentals per Individual Task Force Recommendation Utilize a Combined Strategy: •Uncapped number of STR permits for primary residences* •Cap number of permits for non- primary residences 25 Key Definitions Year-Round RentalShort-term Rental (STR) Other Terms •Owner •Operator/Managing Agent •Natural Person Primary Residence Short-Term Rental Task Force Findings Report 202426 Permitting Structure Permit Conditions •Notify neighbors •Prohibit subletting/house shares •Non-transferable •Privilege and not a right Primary Residence STRs ▪No cap on permits. ▪To be revisited after first year of implementation. Non-Primary Residence STRs ▪Permits capped at 1% of homes per hamlet. ▪Permits issued via lottery. Short-Term Rental Task Force Findings Report 202427 AdministrationCounty Tax STR operators must register with Suffolk County for hotel tax. Application Fees Tiered based on number of bedrooms, and primary vs. non-primary status. Renewals Annual for non-primary, every 2 years for primary. Permit Display & Transparency Permit must be visible on property and in all advertisements. Guidebook Good Neighbor guidance provided to all guests. Safety & Application Review Occupancy Limits Suggested 2 guests per bedroom. Life Safety Inspection Include details not covered by regular Building and Fire Code inspections. For example: ▪Emergency Evacuation Plan Application Requirements ▪Property photo, overall site plan, and floor plans. ▪Dark Sky compliance ▪Waste management plan ▪Adequate parking ▪24/7 contact person Short-Term Rental Task Force Findings Report 202429 Monitoring & Compliance Streamlined Enforcement Permitting & Registration Real-Time Issue ResolutionRole of TechnologyShort-Term Rental Task Force Findings Report 202430 Keys to Success Technology & Staff Training Community Outreach Short-Term Rental Task Force Findings Report 202431 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, Counsel, Association of Towns Short-Term Rental Task Force Findings Report 202432 Questions or Comments? 33 Thank you! If you have any questions regarding the presentation content or the Task Force’s research findings and report, please feel free to email MaraC@southoldtownny.gov.