City Council on Thursday will consider the next steps in short-term rental regulations, which were initiated by a February vote. The proposed ordinance would impose new licensing and eligibility standards, add enforcement mechanisms and expand regulatory obligations for platforms like Airbnb and VRBO.
If approved, the new rules will take effect in two stages, with most provisions implemented Oct. 1. New requirements for short-term rentals would take effect May 1, 2026.
Under the proposed ordinance, STR operators would face new density restrictions and ownership requirements, particularly for properties with three or fewer dwelling units. Individual owners, rather than corporations or partnerships, would be eligible to operate STRs at smaller sites, and no two rentals owned by the same person could be located within 1,000 feet of each other.
Multifamily sites with four or more units would be subject to a separate rule allowing owners to operate STRs in up to 25 percent of the units or at least one unit, whichever is greater. Properties that currently hold valid licenses would be allowed to continue operating as long as ownership remains the same and the property does not become a nuisance.
All licensed operators would be required to submit a self-certified safety checklist, designate a local contact capable of responding to emergencies within two hours and renew their license every two years rather than three. Licenses would remain non-transferable and would expire upon a change in property ownership.
On the matter of nuisance control, city staff would gain expanded authority to revoke or deny licenses based on repeated complaints, disturbances or code violations. The ordinance defines a “nuisance STR” as one associated with multiple violations or recurring disruptions, such as noise or gatherings that disturb neighbors.
If a license is revoked, the city would have the power to prevent a new license at the same property for up to a year, unless the applicant is determined to be unaffiliated with the prior owner.
The updated rules also give the Development Services Department authority to impose mitigation measures such as requiring noise monitoring or added trash bins on properties with recurring issues. If a property fails to comply with a required mitigation plan, the city could initiate license revocation without holding an additional conference or warning, under certain conditions.
In addition, STR platforms would be required to:
- Include a mandatory license number field in all listings
- Provide hosts with quarterly documentation showing Hotel Occupancy Tax collected
- Delist unlicensed properties upon request from the city
- Cease accepting fees for unlicensed STR bookings
The ordinance includes a “safe harbor” provision for platforms that comply with these delisting and license-verification requirements, protecting them from penalties if they act in good faith.
While the ordinance does not require new city spending, it will impact STR-related revenue due to license renewal cycles. Because STR licenses will now last two years rather than one or three, the city anticipates a $712,311 drop in revenue in Fiscal Year 2027, when no renewal income is expected. Revenues are projected to rebound in subsequent years.
City staff say the changes are designed to bring more unlicensed rentals into compliance, particularly in light of third-party data showing that 94 percent of 311 calls related to STRs involve unlicensed properties.
The ordinance backup materials on this week’s City Council agenda include findings that highlight concerns about the impact of full-time short-term rental use on housing availability and neighborhood dynamics and outline the rationale for density limits, particularly in areas with smaller residential lots.
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