New STR Regulations Being Decided

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Tuesday, 9/15
Special Planning and Neighborhood Committee hearing exclusively on STRs
1:00pm to 3:00pm at Austin City Hall

Thursday, 9/17
Full Austin City Council Meeting where STRs will be discussed
10:00am to 5:00pm at Austin City Hall (the time the item comes up might vary for this meeting)

During the above meetings the following changes to STRs will be discussed. Council Member Tovo has introduced the following amendments to STR regulations in an attempt to ban most STRs in Austin. Council Member Tovo tried to push these amendments through at the last meeting at 2:45 AM without any previous discussion or having the items on the agenda.

  • Accessory dwelling units built after the effective date of the ADU revisions shall be prohibited from being used as short term rentals, even if the owner lives on site. Existing ADUs used as short term rentals shall be classified as Type 2 rentals and shall thus count towards the 3% cap. (The first part passed and the second part will be discussed at these meetings)

  • Immediate suspension of all new Type 2 STRs.

  • Initiate a phased-in process to limit Type 2 STRs to commercial zoned areas and to require a conditional use permit for Type 2 STRs in single-family zoning.

  • Prohibit use of STRs for gatherings, such as weddings, bachelor parties, etc.

  • Require STR license to lapse if no hotel taxes are paid within one year.

  • For any STR application or license renewal, require both owner and property manager to certify that they have no outstanding code or APD violations within last two years.

  • Cap Type 3 STRs to no more than 1-3% in any multi-family building in commercially zoned areas.

  • Require Type 2 STRs and non-owner occupied Type 3s to be subject to federal ADA requirements as commercial places of lodging.

  • Establish fines sufficient to serve as clear financial deterrents for violations and increase fines for repeat offenders.

The following changes are also on the agenda to be discussed.

  • Requiring inspections on short-term rentals and allowing random inspections of homes

  • New home insurance requirements

  • Prohibiting short-term rentals within 1,000 feet of each other

  • Limit guest occupancy to 6 adults per rental unit

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Tovo’s STR resolution from yesterday is below.

Short-Term Rental Amendments - Item #78 on Council Agenda

Below is the short term rental resolution that Mayor Pro Tem Tovo distributed today at the Special Called Planning and Neighborhoods Committee meeting. The below resolution reflects the amendments that she discussed at the August meeting.

WHEREAS, on August 2, 2012, the City Council adopted Ordinance No.20120802-122 to regulate the use of single-family homes for short-term rentals (“STRs”); and

WHEREAS, Part 9 of Ordinance No, 20120802-122 directed the City Manager to report on the program no later than one year after the effective date of the ordinance and stated that “[i]f Council finds that short-term rental (Type 2) uses have had a significant negative effects on the community, Council may consider termination of the short-term rental (Type 2) use;” and

WHEREAS, Council Resolutions No. 20121018-069 and No. 20150618-078 directed the City Manager to recommend amendments to the City Code to gain better compliance; and

WHEREAS, even with subsequent amendments to the City Code, concerns remain about the use of residential properties as short-term rentals; and

WHEREAS, directly as a result of the City’s permitting of short-term rental (Type 2) uses, more than 400 single-family homes throughout Austin (predominantly in Central and South Austin) have been removed from the city’s housing stock available for families; and

WHEREAS, a growing number of multifamily units available for both ownership and rental are being converted into short-term rental (Type 3) uses, which removes these units from the housing market; and

WHEREAS, transforming single-family homes, apartments, and condominiums into permanent commercial uses negatively impacts the enrollment potential for neighborhood schools, increases economic pressures on the supply of single-family homes and the rental market, and limits opportunities for community building; NOW THEREFORE
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF AUSTIN:

The City Council directs the City Manager to immediately suspend all new Type 2 short term rental licenses. The Council further directs the City Manager to schedule a public hearing six months after the date of adoption of new code enforcement amendments to gauge their effectiveness and consider revisions.

BE IT FURTHER RESOLVED BY THE CITY COUNCIL OF THE CITY OF AUSTIN:

The City Council directs the City Manager to process amendments to the City Code necessary to achieve the following objectives:
(A) Initiate a phased-in process to limit Type 2 short term rentals to commercially zoned areas and require Conditional Use Permits for continued operation of Type 2 short term rentals in single family zoning.

(B) Repeal the provision that allows 25% of multifamily units on a commercially zoned property to be removed from the rental market as Type 3 STRs, and cap all Type 3 STRs to no more than 3% by property.

© Clarify that Type 2 STRs and non-owner occupied Type 3s are subject to the definition of public accommodations under the federal ADA statutes, or in the alternative, incorporate requirements that provide the equivalent level of accessibility and protections for persons with disabilities.

(D) Prohibit use of STRs for large gatherings of ten or more, such as weddings, bachelor parties, and corporate events.

  • Advertising of large gatherings or corporate events shall be evidence of a violation and shall result in penalties and probable forfeiture of the short-term rental license.

(E) For any STR license application or renewal, certify that both owner and property manager have no significant code or Austin Police Department violations or significant verified complaints within the last two years.

(F) Require STR advertising and listing services to collect and remit hotel/motel taxes to the City of Austin.

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Austin code enforcement wouldn’t release information on STR code violations and so the Texas Attorney General had to force them to release the information. It’s not surprising why they didn’t want the information released. The information shows that STRs are a non-issue.

Code enforcement data shows that there are only 12 problem owners in all of Austin. Half of the problem properties are Type 1 STRs, even though Type 2 STRs are being targeted.

Link to code enforcement data analysis

There was a survey done and 69% Austinites support STRs and believe that the current STR regulations are just right or are already too strict.

Link to Austin Survey showing Austin Resident opinions on STRs

The City of Austin Neighborhood Housing and Community Development shows that STRs have no impact on housing affordability.

Link to STR Affordability Impact Statement

The AISD Educational Impact Statement shows that STRs have “no impact on AISD schools.”

Link to AISD STR Impact Statement

According to the Short-term Rentals Audit in 2011, short-term rentals were the source of a very small number of complaints, including only 0.4 percent of 311 calls (to report non-emergency issues); 0.2 percent of 911 calls (for emergencies); and 0.2 percent of code compliance citations in Austin.

In the audit they randomly sampled residential properties with a geographic distribution comparable to that of the identified STRs and determined the number of 311 and 911 calls at these locations. The audit showed that STRs receive less code complaints, 311 calls, and 911 calls when compared with other residential homes like homeowner occupied homes and long term rentals. If the city of Austin uses data and evidence to guide its decisions, homeowner occupied homes or long term rentals would be banned, have new strict occupancy limits, or be randomly inspected before STRs.

Link to Special Request Audit Report on 311, 911, Code Violations:

Link to main Audit Report:

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A new special called meeting of the City Council has been scheduled for 9:00 AM on Tuesday, September 22, 2015. The Council will discuss and take action on the following short term rental (STR) amendments:

  1. Set the occupancy limit for STRs as the lesser of:

a. six adults;

b. four adults in the area defined in City Code Section 25-2-511© and (D); or

c. not more than two adults per bedroom;

  1. Initiate a phased-in process to limit Type 2 STRs to commercially zoned areas and require Conditional Use Permits for continued operation of Type 2 STRs in single family zoning.

  2. Repeal provision that allows 25% of multifamily units in commercially zoned areas to be removed from rental market as Type 3 STRs, and cap at no more than 3%.

  3. Clarify that Type 2 STRs and non-owner occupied Type 3 STRs are subject to federal ADA requirements as commercial places of lodging.

  4. For any STR application or license renewal, require both owner and property manager to certify that they have no outstanding code or APD violations within the last two years.

  5. Require STR advertising and listing companies to collect and remit hotel taxes from rental listings.

This past Thursday, September 17, 2015, the Council directed the City Manager to initiate the following STR code amendments:

  1. Add STRs to Section 1301 in City Code Section 25-12-213 (Local Amendments to the International Property Maintenance Code) inspection requirements in Chapter 13 of the Local Amendments;

  2. Require inspection, including septic systems, under certain circumstances, during the application or approval process for all STRs;

  3. Prohibit new Type 2 STRs within 1000 feet of existing licensed Type 2 STRs. The prohibition should include a grandfathering clause for existing Type 2 STRs that comply with City Code;

  4. Enforce occupancy limits for STRs through the administrative hearing process:

  5. Implement a one-year suspension on all new Type 2 STR licenses.

  6. Prohibit use of STRs for gatherings, such as weddings, bachelor parties, etc.

The Council voted against a requirement that STRs have commercial liability insurance coverage.

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I’ve included a list of what passed at the city council yesterday on 9/22 regarding STR occupancy limits. Tovo is set to bring even more amendments against STRs in October that would amount to a complete ban if they are passed.

  • The council voted Tuesday in support of new occupancy limits for short-term rentals. Those include:
  • No more than six unrelated guests
  • No more than 10 guests total
  • No more than two people per bedroom, plus two. The presumption is that a house has two bedrooms until an inspection is done.
  • No assembly of more than six people outside, and no outside gatherings allowed after 10 p.m.

Also passed:

  • Allow anti-STR activists to submit photographs and videos that can be used against their neighbors.
  • Allow code enforcement to issue citations for noise violations (currently enforced by the police department)
  • Have staff look into requiring STR advertising and listing services to collect and remit hotel/motel taxes to the City of Austin.

This past Thursday, September 17, 2015, the Council directed the City Manager to initiate the following STR code amendments:

  • Add STRs to Section 1301 in City Code Section 25-12-213 (Local Amendments to the International Property Maintenance Code) inspection requirements in Chapter 13 of the Local Amendments;
  • Require inspection, including septic systems, under certain circumstances, during the application or approval process for all STRs;
  • Prohibit new Type 2 STRs within 1000 feet of existing licensed Type 2 STRs. The prohibition should include a grandfathering clause for existing Type 2 STRs that comply with City Code;
  • Enforce occupancy limits for STRs through the administrative hearing process:
  • Implement a one-year suspension on all new Type 2 STR licenses.
  • Prohibit use of STRs for gatherings, such as weddings, bachelor parties, etc.
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New city council meeting on STRs Oct 8th.

RSVP on the Facebook event:
https://www.facebook.com/events/1481122765524793/

Follow updates on Twitter:
https://twitter.com/atxstrs

Follow updates on Facebook:

It’s also very important that you email all city council members at the link below to express your opposition to further unnecessary restrictions and bans on short term rental rights that only harm the good owners and do nothing to prevent problem properties.

https://www.austintexas.gov/email/all-council-members

Below are some of the items being discussed, but they can bring up any other items without notice or public input.

Council Member Pool’s STR Resolutions

  • Possible ban on STRs in residential zoned areas
  • Increase license fees for STRs
  • Ways to more easily remove or deny STR licenses

Council Member Tovo’s STR Resolutions

  • Initiate a phased-in process to limit Type 2 STRs to commercially zoned areas and require Conditional Use Permits for continued operation of Type 2 STRs in single family zoning.
  • Limit Type 3 STRs in multifamily units in commercially zoned areas at no more than 3% by property and census.
  • Make Type 2 STRs and non-owner occupied Type 3 STRs subject to federal ADA requirements as commercial places of lodging for the first time (this would essentially ban all of these STRs).
  • For any STR application or license renewal, require both owner and property manager to certify that they have no outstanding code or APD violations within the last two years.