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L18-0045ShortTermRentalRegulationUpdate <br />Page3 <br />LLCquestion–TheCitycannotprohibittheownershipofresidentialpropertiesbyabusiness <br />entity,suchasalimitedliabilitycompanyorcorporation.However,assumingthegoalofthe <br />PlanningCommissionistolimitcommercialoperationofshorttermrentals,thereareothertools <br />available.Forexample,CityofSeattlerequiresadditionalinspectionandpermitting“\[i\]fthe <br />short-termrentalisnotwithin\[thepermitee’s\]ownhome,\[thepermitee\]mustregisterwiththe <br />3 <br />City’sRentalRegistrationandInspectionOrdinanceprogram(RRIO).” <br />Enforcement–ArecentauditofPortland’sshort-termrentalregulationsshowslowcompliance <br />anddifficultenforcement,seeAttachmentD.Issuesincludealackofinformationfrombooking <br />agentssuchasAirBnB,unwillingnessofbookingagentstoenforceCityregulationssuchas <br />licensingrequirementsfortheirlistings,cost/effortonthepartofhoststocomplyandareactive <br />approachtoenforcement.IfPortland,withanestimated4,600AirBnBlistings,hasbeenunable <br />toenlistbookingagentsinassistingwithcomplianceitwilllikelyalsobeachallengeforTukwila. <br />PolicyOptions <br />Again,theCitycurrentlyprohibitstheuseofmultifamilyproperties(includingduplexes,triplexes, <br />townhouses,apartmentsandcondominiums)andADUsforshorttermrentalpurposes.TheCity <br />currentlypermits(byalackofregulation)theuseofsinglefamilyresidential(SFR)propertiesforshort <br />termrentalpurposes.Movingforward,theCitycantakeawidevarietyofapproachesonthistopic,the <br />benefitsofwhicharediscussedbelow.Thefollowingmatrixisintendedtoflagthe“levers”theCitycan <br />4 <br />moveonthistopic,inordertoformulateapolicythatbestservestheCityofTukwila.Staff’s <br />recommendationislistedbeloweachissue. <br />1.PermittingtheUseofResidentialPropertiesforShortTermRentalPurposes. <br />ThethresholdquestiononthistopiciswhethertheCitywouldliketoregulatetheuseofresidential <br />propertiesasshorttermrentals.PerdirectionfromthePlanningCommission,thefollowingthree <br />optionsrepresentthreealternativeapproaches: <br />TopicOption1(StatusQuo)Option2Option3(Most <br />Permissive) <br />ToallowshorttermForSFRonly,entireForSFRplus2-4unitAllresidential <br />rentals…houseand/orbuildingsinLDRandproperties,excluding <br />individualbedroomsMDR(notinHighmanufacturedhomes <br />DensityResidentialorandRVsin <br />mixedusezones)RV/Manufactured <br />homeparks) <br />3 <br />Availableat:http://www.seattle.gov/dpd/codesrules/commonquestions/shorttermrentals/default.htm <br />4 <br />ItshouldbenotedthatanyproposedamendmentstotheTMCpertainingtotheCity’sexistingregulationsforshort-term <br />rentalswillneedtoheedtwoconcernsthatwouldlikelynecessitateanexemptionfromanyproposedprohibitionontransient <br />accommodations.First,adultfamilyhomes(AFH)couldarguablybeconsideredresidentialpropertiesusedforrental <br />purposes;however,statelawprohibitstheCityfromenactingregulationsthatputuparoad-blocktotheplacementofAFHs <br />inallareaszonedforresidentialpurposes.RCW70.128.010.Second,thesameanalysiswouldlikelyapplytoaresidence <br />usedtohousepeoplewithdisabilities,includingtherecoveryfromadrugaddiction.SeeRCW36.70.990. <br />1 47 <br /> <br />