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HomeMy WebLinkAboutPermit PL18-0033 - CITY OF TUKWILA - RESIDENTIAL TYPES & SHORT TERM RENTALS- SEPAResidential Types/Short Term Rental P ROJ -00007 PARENT FILE PL18-0033 THIS FILE L18-0045 COMP PLAN_ZONE AMEND/ZONING CODE AMEND City of Tukwila Allan Ekberg, Mayor Department of Community Development - Jack Pace, Director CHAIR, NIIAN NGUYEN; VICE -CHAIR, DENNIS MARTINEZ; COMMISSIONERS, MfEtUEE, MAESTAS, SHARON MANN, MIKE HANSEN, , AND HEIDI WATTERS I. II. III. BOARD OF ARCHITECTURAL AND PLANNING COMMISSION REVIEW AGENDA AUGUST 23, 2018 - 6:30 PM TUKWILA CITY HALL COUNCIL CHAMBERS CALL THE MEETING TO ORDER ATTENDANCE ADOPT MINUTES — JULY 26, 2018 - BOARD OF ARCHITECTURAL REVIEW PUBLIC HEARING IV. CASE NUMBER: APPLICANT: REQUEST: LOCATION: V. CASE NUMBER: APPLICANT: REQUEST: VI. LOCATION: L18-0029 (continuation from public hearing held on July 26, 2018) Dale Sweeney - Design Review approval for development of a 44,405 sq. ft. Tru by Hilton hotel with 92 guest rooms and related site improvements. Northwest corner of Minkler Boulevard and Andover Park West, APN 2623049075 L8-0022 Will Ralph Design Review approval for development of a five -story 177 room Element by Westin hotel and related site improvements. Southeast corner of Andover Park E and Industry Dr., APN 0223400070 PLANNING COMMISSION PUBLIC HEARING CASE NUMBER: APPLICANT: REQUEST: LOCATION: L18-0045 Zoning Code Amendments City of Tukwila Deliberation on regulations for short term residential rentals (less than 30 days) and updates to associated regulations for boarding houses, bed and breakfast lodging and residential rental unit licensing. Citywide VII. DIRECTOR'S REPORT VIII. ADJOURN Tukwila City Hall • 6200 Southcenter Boulevard • Tukwila, WA 98188 • 206-433-1800 • Website: TukwilaWA.gov City of Tukwila Allan Ekberg, Mayor Department of Community Development - Jack Pace, Director STAFF REPORT TO THE PLANNING COMMISSION PREPARED AUGUST 12, 2018 FILE NUMBERS: L18-0045 Short Term Rental Code Amendments REQUEST: Review and revise Tukwila's regulations relating to the use of property for the purposes of short term rental and make a recommendation to the City Council. LOCATION: City wide PUBLIC NOTICE: STAFF: ATTACHMENTS: Emails were sent to the interested parties list and contacts within the short- term rental industry. Nora Gierloff, Deputy DCD Director Charlotte Archer, City Attorney A. Rental Housing Inspection Checklist B. Response from other Cities about Short Term Rentals C. Neighboring jurisdictions' current rental standards D. Portland Short Term Rental Regulation Audit BACKGROUND During the City Council update to accessory dwelling unit (ADU) regulations the Council requested a review of regulation of short-term (defined as a period of less than thirtydays) residential rentals. This would not include commercial properties used for the purposes of short-term and extended -stay housing, such as motels, hotels, and extended stay motels. This review focused on the rental of single- family and multi -family residences, as well as ADUs via an online marketplace such as HomeAway, Vacation Rental By Owner ("VRBO") or Air BnB. The intention was to assess the impact of the City's current regulations and determine if new regulations are needed to meet the City's policy goals. Tukwila's current standards for short term rentals' include a prohibition on rental of multi -family dwellings for less than 30 days. There is no restriction on the use of single-family dwellings or mobile 1 The following are considered outside the scope of this project, as they do not involve the use of a residential dwelling unit for short-term rental purposes: Assisted Living Facilities (TMC 18.06.058); Continuing Care Retirement Communities (TMC 18.06.170); Convalescent/Nursing Homes (TMC 18.06.173); Correctional Institutions, including transitional housing (TMC 18.06.178); Extended -Stay Hotel or Motels (TMC 18.06.287); Hotels (TMC 18.06.440); Motels (TMC 18.06.585); Secure Community Transitional Facilities (TMC 18.06.706); Senior Citizen Housing (TMC 18.06.708); and Shelters (TMC 18.06.743). Tukwila City Hall • 6200 Southcenter Boulevard • Tukwila, WA 98188 • 206-433-1800 • Website: TukwilaWA.gov L18-0045 Short Term Rental Regulation Update Page 2 homes in mobile home parks as short-term rentals. The Accessory Dwelling Unit ordinance adopted by the Council prohibits rental of ADUs for less than 30 days. Tukwila's Residential Rental Business License and Inspection Program, codified at Chapter 5.06 of the Tukwila Municipal Code (TMC), establishes an annual rental licensure requirement for all "units" intended for rent. Each dwelling unit must be inspected for life safety issues every four years, see Attachment A. The code is silent about whether it applies to short-term rentals; in practice, the City has not received rental license applications for short-term rentals. On June 28, 2018 the Planning Commission held a public hearing on the short-term rental issue. They heard public testimony (see meeting minutes) and asked staff to return with additional information relevant to the discussion. This staff report builds on the information included in the June Packet. DISCUSSION Some of the information that the Planning Commission requested is contained in this staff report and attachments. Remaining items include: • City lodging tax revenue from short term rentals — Air BnB is the only company that remits tax for short term rentals so we cannot give an exact number but it is a minor percentage of the City's lodging tax revenues. • Impact of short-term rentals on the hotel market — This is difficult to determine, however there are 650 hotel rooms either recently constructed or in the development pipeline in Tukwila. This indicates that occupancy rates of existing hotels are high and new hotels continue to be seen as a profitable investment. It appears that Tukwila has at most few dozen short-term rentals. • Cap on rentals — Some jurisdictions place a limitation on the number of short term rental units an individual may operate, so as to restrict the commercial operation of short term rentals. City of Seattle, for example, requires each operator obtain a permit and that permit allows the operator to operate two dwelling units for short-term rental use for the first year of operations. After the first year, the operator is eligible to add a third unit, so long as the third unit is the operator's primary residence.2 • Impacts to long term rental market —The Harvard Law and Policy Review article linked in the June packet asserts that the higher profitability of short term rentals incentivizes removal of units from the long term rental market and may increase rents in tight housing markets. However, the public testimony at the last meeting indicated that.some landlords have chosen short term rentals for reasons such as flexibility or intermittent need for the space and would be unlikely to put the unit into long term rental. Staff's recommendation to limit short term rentals to partial units (bedroom within a larger occupied house) would prevent whole units from being removed from the long-term rental market. 2 Seattle City Council Ord. 125490 (available at http://seattle.legistar.com/View.ashx?M=F&ID=5707790&GUID=6EE24175-0711-4616-8260-6C0A0116FE 1 E) L18-0045 Short Term Rental Regulation Update Page 3 • LLC question — The City cannot prohibit the ownership of residential properties by a business entity, such as a limited liability company or corporation. However, assuming the goal of the Planning Commission is to limit commercial operation of short term rentals, there are other tools available. For example, City of Seattle requires additional inspection and permitting "[Of the short-term rental is not within [the permitee's] own home, [the permitee] must register with the City's Rental Registration and Inspection Ordinance program (RRIO)."3 • Enforcement — A recent audit of Portland's short-term rental regulations shows low compliance and difficult enforcement, see Attachment D. Issues include a lack of information from booking agents such as Air BnB, unwillingness of booking agents to enforce City regulations such as licensing requirements for their listings, cost/effort on the part of hosts to comply and a reactive approach to enforcement. If Portland, with an estimated 4,600 Air BnB listings, has been unable to enlist booking agents in assisting with compliance it will likely also be a challenge for Tukwila. Policy Options Again, the City currently prohibits the use of multifamily properties (including duplexes, triplexes, townhouses, apartments and condominiums) and ADUs for short term rental purposes. The City currently permits (by a lack of regulation) the use of single family residential (SFR) properties for short term rental purposes. Moving forward, the City can take a wide variety of approaches on this topic, the benefits of which are discussed below. The following matrix is intended to flag the "levers" the City can move on this topic, in order to formulate a policy that best serves the City of Tukwila. 4 Staff's recommendation is listed below each issue. 1. Permitting the Use of Residential Properties for Short Term Rental Purposes. The threshold question on this topic is whether the City would like to regulate the use of residential properties as short term rentals. Per direction from the Planning Commission, the following three options represent three alternative approaches: Topic Option 1 (Status Quo) Option 2 Option 3 (Most Permissive) To allow short term rentals... For SFR only, entire house and/or individual bedrooms For SFR plus 2-4 unit buildings in LDR and MDR (not in High Density Residential or mixed use zones) All residential properties, excluding manufactured homes and RVs in RV/Manufactured home parks) 3 Available at: http://www.seattle.gov/dpd/codesrules/commonquestions/shorttermrentals/default.htm 4 It should be noted that any proposed amendments to the TMC pertaining to the City's existing regulations for short-term rentals will need to heed two concerns that would likely necessitate an exemption from any proposed prohibition on transient accommodations. First, adult family homes (AFH) could arguably be considered residential properties used for rental purposes; however, state law prohibits the City from enacting regulations that put up a road -block to the placement of AFHs in all areas zoned for residential purposes. RCW 70.128.010. Second, the same analysis would likely apply to a residence used to house people with disabilities, including the recovery from a drug addiction. See RCW 36.70.990. L18-0045 Short Term Rental Regulation Update Page 4 The City could maintain the status quo by expressly permitting the use of single-family residences (either as entire -house rentals, or partial -house rentals) for short-term rental purposes. An alternative discussed at a recent meeting of the Planning Commission would be to also allow short term rentals for some multifamily properties, such as duplexes and triplexes in the Low, Medium and High Density Residential Zones. Alternatively, the City could opt to permit the use of all residential dwelling units as short-term rental properties. Staff Recommendation: Allow partial rentals such as a bedroom within a house or small multi -family building in low and medium density residential zones. This would enable residents to earn additional income while preventing investors from repurposing housing stock for transient uses. Insert the following proposed code language into the TMC: 18.60.XXX Transient accommodations. "Transient accommodations" means the rental of any residential dwelling unit or portion thereof used for the purpose of providing lodging for periods of less than 30 days, for compensation. This definition does not apply to Assisted Living Facilities, Convalescent/Nursing Homes, Correctional Institutions, Diversion Facilities, Diversion Interim Services Facilities, Shelters, and Dormitories. 18.06.247 Dwelling, Multi -Family "Multi -family dwelling" means a building designed to contain two or more dwelling units. Zoning Code Table 18-6: Land Uses Allowed by District Transient Accommodations - Permitted in LDR and MDR • Footnote: Only partial unit rentals within single family, duplex, triplex or fourplex structures are permitted. The unit's long-term owner/occupant must be in residence during the rental period. No more than two bedrooms per dwelling unit may be rented. 2. Requiring a License for the Operation of a Short -Term Rental. A second issue for the Planning Commission's consideration is whether those who operate a short term rental should be subjected to a permitting requirement, akin to the owners and operators of long term rentals and businesses. Per direction from the Planning Commission, the following three options represent three alternative approaches on this topic: Topic Option 1 (Status Quo) Option 2 Option 3 (Most Permissive) To require a license to rent an entire None Residential Rental Business License and Inspection Business License L18-0045 Short Term Rental Regulation Update Page 5 residential unit on a short term basis ... To require a license to rent a room within a residential unit on a short term basis (for rentals in an occupied dwelling unit)... None Residential Rental Business License and Inspection • Home Occupation Business License Currently, Tukwila requires that businesses, including home occupations, obtain a business license to operate in Tukwila and that landlords obtain an annual rental license for all "units" intended for rent — this is not currently utilized for short-term rental properties. Currently short-term rental operators are not obtaining either license. Incorporating short-term rentals into the Residential Rental Business License and Inspection Program would allow the City to monitor the use of residential properties for this purpose, and to ensure that the subject properties are adequately addressing life safety issues. However, currently the traditional "roommate" arrangement (e.g., long term rental of a single -room within an owner -occupied dwelling unit) is not subject to the City's Residential Rental Business License and Inspection Program; yet the majority of short-term rentals currently advertised in the City involve the short-term rental of a single - room within an owner -occupied dwelling unit. It may make more sense to require home occupation business licenses for short term rentals as they are more closely related to operating a business than an ongoing living arrangement. It may be a challenge to enforce this requirement as the City relies on self -reporting of rental properties in order to achieve compliance, and it is difficult to track -down non -compliant properties but for the complaints received from neighbors. Staff Recommendation: Require that operators of short-term rentals obtain a Home Occupation Business license by inserting the following proposed code language into the TMC. If the PC opts to allow rentals of entire properties the home occupation standards would not apply. 5.04.020 Applications and fees required A. Application Required. Any person desiring to establish or conduct any business enterprise or undertaking within the corporate limits of the City shall first apply to the Finance Department for a license to conduct such business. The application shall be upon a form furnished by the Finance Department on which the applicant shall state the company name and address; the nature of the business activity or activities in which he/she desires to engage; the place where the business will be conducted; the number of employees, whether full or part-time, on the payroll as of January 1, or, if a new business, the number to be employed on the opening date; the Washington State Unified Business Identifier (UBI) number; and other information pertaining to the business as required by the City. Owners of residential rental property are not subject to the application requirements in this chapter but shall adhere to the application requirements in TMC Chapter 5.06, except for L18-0045 Short Term Rental Regulation Update Page 6 operators of transient accommodations which shall require a business license as a home occupation. 3. Owner -Occupancy for the Operation of a Short -Term Rental. A third issue for the Planning Commission's consideration is whether to require an owner of a short-term rental to occupy the dwelling unit during the period the unit is being rented. Per direction from the Planning Commission, the following three options represent three alternative approaches on this topic: Topic Option 1 (Status Quo) Option 2 Option 3 (Most Permissive) Require Owner- occupancy... No requirement (But multiple bedrooms may not be simultaneously rented under separate lease agreements, akin to a Boarding House) Require owner- occupancy for the short-term rental of rooms within SFRs, ADUs, Duplexes, Triplexes and Fourplexes Require owner - occupancy for all short - term rentals (thereby prohibiting the use of whole house/dwelling unit for short term rental purposes) Alternative: Allow tenants to operate short-term rentals No requirement (But multiple bedrooms may not be simultaneously rented under separate lease agreements, akin to a Boarding House) Allow owners/tenants in SFRs, Duplexes, Triplexes and Fourplexes to operate short-term room rentals within an occupied unit Allow owners/tenants in all residential buildings to operate short term room rentals within an occupied unit Alternative: Allow full unit rentals with a local (within 5 miles) property manager No requirement Require a local property manager located within 5 miles of the property, available 24 hours a day while property is used as a short-term rental (and identified to the City with contact information) Require a property manager in the region available 24 hours a day while property is used as a short-term rental (and identified to the City with contact information) Some of the negative effects cited by opponents of short term rentals (including but not limited to noise, parking and refuse) may be mitigated by requiring that the owner or tenant of the unit occupy it during a period of rental, which would result in the prohibition of whole house and entire dwelling unit short term rentals. Other cities have taken a Tess strict approach, requiring owner occupancy in certain settings (e.g., the rental of an attached or detached ADU or multifamily properties), but permitting the use of single-family residences for whole house rentals as well as short-term bedroom rentals. L18-0045 Short Term Rental Regulation Update Page 7 An alternative to requiring owner -occupancy would be to allow a local property manager to be designated and available to respond to complaints. Kirkland, for example, requires a property manager located within City -limits at all times the property is being used as a short-term rental. Staff Recommendation: Require that a room offered as a short-term rental be within an occupied house but allow either an owner or an ongoing tenant to be the occupant. 4. Restrictions on Occupancy, Parking and Quiet Hours. There are additional issues pertaining to the impacts to neighboring properties often attributable to the use of residential properties for short term rental purposes, including placing limitations on the number of occupants, requiring additional off-street parking spaces, and the imposition of quiet hours. The following alternatives represent options for the Planning Commission to consider on these topics: Topic Option 1 (Status Quo) Option 2 Option 3 (Most Permissive) Limitation on occupancy... No limitation (But multiple bedrooms may not be simultaneously rented under separate lease agreements, akin to a Boarding House) Limit number of renters to two (2) per lawfully established bedroom (number of bedrooms as permitted for occupancy) No limitation Additional parking required... No additional parking required (except for ADU, which requires 1 or 2 additional spaces) Require one additional off-street parking space for occupied properties utilized as short-term rentals No additional parking required Quiet hours... . No limitation beyond those currently in TMC 8.22 noise code pertaining to nuisance noises Set quiet hours from 10pm to 7am, limiting outdoor noise attributable to rental property No limitation specific •to short term rentals A few jurisdictions in Washington have adopted heightened restrictions on the number of occupants, noise (quiet hours), off-street parking, and other issues in order to address concerns raised by existing short-term rentals. For example, San Juan Island County places a cap on the number of renters at no more than three per bedroom, and requires additional off-street parking for properties used as short- term rentals. To the extent these concerns are documented, the City could utilize these regulations to directly remedy problem properties utilized as short-term rentals. Ongoing requirements such as additional parking spaces would need to be verified through an inspection process, possibly as part of a licensing procedure. L18-0045 Short Term Rental Regulation Update Page 8 Enforcement of occupancy limits would be difficult absent admissions by the properties' owners. Producing evidence to prosecute a violation would require observation by the City's Code Enforcement Officers, likely after-hours. Noise complaints are handled by the Police Department and it may be difficult to enforce stricter regulations than the standards in the existing Noise Ordinance. Staff Recommendation: Do not impose specialized requirements on short term rentals. These would be difficult and time-consuming to enforce and lower the number of operators who voluntarily comply with licensing requirements. Enforcing the requirement to provide an additional parking space for a short- term rental would require a site inspection. Without the cooperation of the booking agents regulating the maximum number of renters per room would be nearly impossible. The Noise Ordinance already allows the Police Department to enforce noise from residential uses that is plainly audible at a distance of 50 feet. 5. Additional Code Amendments Proposed. The Tukwila Municipal Code currently contains provisions regarding properties used for short term rental purposes, such as bed and breakfast facilities and boarding houses, which are antiquated and ineffectual. Staff suggests making the following amendments to address these issues. a. Removing "Bed and Breakfast" as a Permitted Use. Currently, the City has no permitted Bed and Breakfast facilities. The definition of Bed and Breakfast facility is out of step with the rise of AirBnB and other online alternatives. As this process has not been used by the citizens, and could create confusion with the proposed regulations staff recommends removing Bed and Breakfast Lodging and all related regulations from the TMC, as depicted here: TMC Ch. 18, Table 18-6 (at Pg. 8) , 'dents, either for th_e ow d ' * ' k• .,,�-000ner c'ar'�v�^er���o„cnc-re5l�ent5 and Ane ad�I�iA,mar-mrS+te�zrr�.,,-rsspQ-e continuous stay by -a guest is 14-flays, c. breakfast fist be effefed on site to b. Modifying the definition of "Boarding House" to clearly prohibit them in all zones. The City is aware of a few unpermitted Boarding Houses within the City and there are ongoing code enforcement complaints relating to unpermitted Boarding Houses in the LDR zoning district (where this use is prohibited). The existing definition of a Boarding House makes this regulation difficult to enforce, given its use of undefined terms like "short-term" and "commercial basis." Similarly, there is no cap on L18-0045 Short Term Rental Regulation Update Page 9 the number of tenants that may reside in one Boarding House, no requirement that the Boarding House is owner -occupied, and there are no other relevant regulations such as higher parking standards. Per the Planning Commission's instruction, staff would recommend the following amendment to the TMC to clearly prohibit these from operation within the City: 18.06.073 Boarding House "Boarding house"_means a residential building er-rase designed to contain one dwelling unit, which provides housing for more than one tenants, pursuant to more than one Lease Agreement, for compensation. Boarding houses are prohibited in all zones. The following uses are excluded not considered a boarding house: Rea and l reekfast facilities, hotels and motels, extended -stay hotels or motels, shelters, and facilities which provide short- or long-term care for tenants suffering from physical, mental or other disabilities, Assisted Living Facilities, Convalescent/Nursing Homes, Correctional Institutions, Diversion Facilities, Diversion Interim Services Facilities, and Dormitories. c. Adopt Related Amendments to the Residential Rental Business License and Inspection Program, Codified at Ch. 5.06 TMC. The aforementioned decisions will likely impact the City's regulations for residential rentals and the permitting requirements thereof, set out in Ch. 5.06 TMC. In addition, as part of this review, Staff identified inconsistencies between operational definitions in TMC 5.06.020 and Ch. 18.06 TMC pertaining to residential structures and uses. Depending upon whether the Planning Commission elects to require a permit under this program for short-term rentals, staff will make recommendations to the TMC to address these issues. However, the following modifications are proposed to remedy existing shortcomings with the Ch. 5.06 TMC, subject to modification depending upon the City Council's policy directive on short term rentals: 5.06.020 Definitions XX. "Dwelling unit" as used herein means the same as defined at TMC 18.06.249. XX. "Multi -family dwelling" as used herein means the same as defined at TMC 18.06.247. 11. "Occupant" means an individual, partnership, corporation or association, or agent of any of them lawfully residing in a rental unit. 12. "Owner" means the owner of record as shown on the last King County tax assessment roll or such owner's authorized agent XX. "Rental or Lease Agreement" means all agreements, whether written or oral, which establish or modify the terms, conditions, rules, regulations, or any other provisions concerning the use and occupancy of a dwelling unit or a portion thereof. 14. "Rental unit" means a dwelling unit, or portion thereof, occupied or leased by a tenant. L18-0045 Short Term Rental Regulation Update Page 10 158. "Rental unit unavailable for rent" means a rental unit whose owner has filed with the code official a statement signed under penalty of perjury that such rental unit is not offered or available for rent as a rental unit and that prior to offering or making the rental unit available for rent as a Festal ^**, the owner will apply for a Residential Rental Business License and comply with any applicable administrative regulations adopted pursuant to this chapter. 164-5. "Single-family residence" means a building, modular home, or new manufactured home designed to contain no more than one dwelling unit, plus one accessory dwelling unit. 1746. "Tenant" means any adult person granted temporary use of a rental unit pursuant to a lease or rental agreement with the owner of the rental unit. 17. "Unit" means any structure or part of -a structure, which is used as a home, , 5.06.030 Scope The provisions of this chapter shall apply to all rental units, with the exception of: 1. A rental unit subject to a single Rental or Lease Agreement for a portion of a dwelling unit, where the owner resides in that dwelling unit with the tenant(s) for the duration of the term of the Rental Agreement (traditional roommate circumstance). i ; 2. Units unavailable for rent; 3. Housing accommodations in hotels, motels, or extended -stay hotel or motel i+fs 4. Housing accommodations in retirement or convalescent/nursing homes, assisted living facilities, correctional institutions, diversion facilities, diversion interim services facilities, shelters, and dormitories; 5. Housing accommodations in any hospital, State licensed community care facility, convent, monastery or other facility occupied exclusively by members of a religious order or an extended medical care facility; 6. Housing accommodations that a government unit, agency or authority owns, operates or manages, or which are specifically exempted from municipal regulation by State or federal law or administrative regulation. This exception shall not apply once the governmental ownership, operation or management regulation is discontinued. REQUEST Review each proposed change and choose a policy option. Staff will then develop a draft ordinance based on that direction and take it to the City Council for additional review. City of Tukwila Deportment of Community Development = Jack Pace, Director RENTAL HOUSING LICENSING Attan Ekberg, Mayor File # RENT PROGRAM: INSPECTION CHECKLIST Final Inspection Score 0 PROPERTY OWNER INFORMATION DWELLING TYPE: r Duplex • Single-family r. Triplex RENTAL PROPERTY INFORMATION Owner name: Rental Address: 0 Condominium r Fourplex n Apartments w/ 5 or more units Mailing address: Property Name: C Accessory Dwelling Unit In this dwelling, number of: Bedrooms - Bathrooms - Unit Number: UNIT DOES NOT PASS IF INSPECTION RESULTS IN A TOTAL OF 25 OR MORE NON-COMPLIANCE POINTS COMPLIES WITH STANDARD? IPMC A EXTERIOR PROPERTY YES 6/ N/A 6/ NO �/ N-C PTS PTS COMMENTS 302.1 Clean, safe & sanitary / no uncontained debris (0` C C. 1 302.2 No standing water or erosion (: r ( 1 302.3 Sidewalks/driveways free of hazards (!, C. 0 1 302.4 No weeds in excess of 12 inches (f' n C' 1 302.5 No evidence of rodent harborage / vermin infestation (a C? CT: 2 302.7 Accessory structures in good repair (- C (; 1 302.8 No junk vehicles/under repair outside garage (! - C C 1 302.9 Free from graffiti (!J 0 fl 1 308 Approved garbage containers with tight fitting lids () C 0 1 Section A — EXTERIOR PROPERTY Total of Non -Compliance Points IPMC B SWIMMING POOLS, SPAS & HOT TUBS YES N/A 6/ NO 6/ N-6/ PTS COMMENTS 303.1 Clean, sanitary, in good repair (: 0 0 1 303.2 Enclosure 60" high, with self -closing latch on gate (a r. r 3 Date of last public health inspection (multi -family complexes only): Section 8 — SWIMMING POOLS, SPAS & HOT TUBS Total of Non -Compliance Points IPMC C EXTERIOR STRUCTURE YES v N/A 6/ NO 6/ -C PTS COMMENTS 304.2 Surfaces in good repair (! 0 0 1 304.3 Address numbers 4" tall & visible from street 0 r 1 304.4 Structural members in good repair (• . r r 3 304.5 Foundation walls in good repair (a (^ 0 3 304.6 Exterior walls in good repair Ci t^ (' 3 304.7 Roof and drainage in good repair (: 0' 0' 2 304.8 Decorative features in good repair (: 0' i 1 304.9 Overhang extensions in good repair (: (1i 2 304.10 Stairways, decks, porches, balconies in good repair (: ' 0 3 304.11 Chimneys and towers in good repair (: (1 (^ 2 304.12 Handrails and guardrails firmly fastened (. 0' 0' 3 Section C — EXTERIOR STRUCTURE Total of Non -Compliance Points Attachment A COMPLIE IPMC DWELLING UNIT ENTRY YES v N/A v NO v PTS COMMENTS 304.15 Exterior doors in good repair; deadbolt locks operable by knob; deadbolt throw not less than 1 inch (i c (- 2 305.3 Windows and frames in good repair (9 r C 1 305.4 Floor surface in good repair (' (-- (' 1 Section D - DWELLING UNIT ENTRY Total of Non -Compliance Points IPMC E LIVING ROOM YES v N/A �/ NO `/ N-C PTS PTT COMMENTS 305.3 Wall surface in good repair ( c (' 1 305.3 Windows and frames in good repair (i (' r 1 305.4 Floor surface in good repair (i C (' 1 402.1 403.1 Minimum of 1 openable, approved -size window facing directly to outdoors. (1) •r (- 1 504.1 No visible mold, signs of moisture or leaks (0 r C 3 602.5 602. Adequate source of heat (2) (� C' (1. 25 605.2 Two separate & remote electrical receptacle outlets (� (_ (1 2 404.4.1 Size, in square feet (min. 120 square feet): Section E - LIVING ROOM Total of Non -Compliance Points IPMC F DINING ROOM YES v N/A V NO V N-C PTS COMMENTS 305.3 Wall surface in good repair C r 1 305.3 Windows and frames in good repair (a:, C C 1 305.4 Floor surface in good repair (i (" (' 1 402.1 403.1 Minimum of 1 openable, approved -size window facing directly to outdoors. (1) r C 1 504.1 No visible mold, signs of moisture or leaks t: (1 C 3 602.5 602.5 Adequate source of heat (2)C q C 25 605.2 Two separate & remote electrical receptacle outlets (' (; C 2 Size, in square feet: Section F- DINING ROOM Total of Non -Compliance Points IPMC G KITCHEN / UTILITY YES v NIA V NO V N-C PTS COMMENTS 305.3 Wall surface in good repair (i (1 (1 1 305.3 Windows and frames in good repair C. r C 1 305.4 Floor surface in good repair cii- (^ r 1 309 Free of insect or rodent infestation i (^ r 3 302.E 403.4 Stove vent properly connected and functional (i cc- 2 404.2 Has a clear path of not Tess than 3 feet clearance between counterfronts and appliances or walls 1 404.7 502.1 Has kitchen sink, cooking stove, refrigerator, and counter space (i(' (' 25 504.1 No visible mold, signs of moisture or leaks (( C r 3 505.1 Hot and cold water to all plumbed fixtures (' r ( 25 605.2 Two separate & remote electrical receptacle outlets (. C C 2 403.5 Clothes dryer exhaust vented properly to exterior (: C (_ 2 505.4 Water heater correctly installed (- C (1 3 605.2 Laundry area - one grounded -type receptacle or GFCI (: (^ r 1 Section G - KITCHEN/UTILITY Total of Non -Compliance Points 156 COMPLIES WITH STANDARD? IPMC H BATHROOM YES v N/A 6/ NO 6/ N-C PTS COMMENTS 404.4.3 Separate bathroom with toilet, sink, & tub or shower (i (^ C 25 305.3 Wall surface in good repair (i C C_ 1 305.3 Windows and frames in good repair (i (1 C 1 305.4 Floor surface in good repair (i (` (1 1 403.2 Bathroom and toilet room properly ventilated (Openable window or functional mechanical fan) 2 503.1 Door for privacy, in good repair, securely attached (. r C 1 504.1 No visible mold, signs of moisture or leaks Co (— C 3 505.1 Hot and/or cold water to all fixtures ( r C1 25 605.2 Has at least one electrical receptacle (9 _ C1 C , 1 This is of Bathroom # total bathrooms in dwelling unit (3) Section H - BATHROOM Total of Non -Compliance Points IPMC YES 6/ N/A `/ NO 6/ PTS COMMENTS H BATHROOM ❑ NO ADD L 404.4.3 Separate bathroom with toilet, sink, & tub or shower (! (., (, 25 305.3 Wall surface in good repair 61' f 2 1 305.3 Windows and frames in good repair ( C` (; 1 305.4 Floor surface in good repair CO; C 2 1 403.2 Bathroom and toilet room properly ventilated (Openable window or functional mechanical fan) . r c, 2 503.1 Door for privacy, in good repair, securely attached (i (, 2 1 504.1 No visible mold, signs of moisture or leaks (! • CT C 3 505.1 Hot and/or cold water to all fixtures (T C 2 25 605.2 Has at least one electrical receptacle (.. C ( 1 This is of Bathroom #I total bathrooms in dwelling unit (3) Section H - BATHROOM Total of Non -Compliance Points IPMC Yv N/A -C PTS COMMENTS H BATHROOM NO ADD'L 404.4.3 Separate bathroom with toilet, sink, & tub or shower (_I (1' (` 25 305.3 Wall surface in good repair (i r 2 1 305.3 Windows and frames in good repair (- (^ r 1 305.4 Floor surface in good repair (• C 2 1 403.2 Bathroom and toilet room properly ventilated(ii (Openable window or functional mechanical fan) r r2 503.1 Door for privacy, in good repair, securely attached (i . l (^ 1 504.1 No visible mold, signs of moisture or leaks ( (1 (1 3 505.1 Hot and/or cold water to all fixtures (. i (' 25 605.2 Has at least one electrical receptacle (i (1 2 1 This is of Bathroom #I total bathrooms in dwelling unit (3) Section H - BATHROOM Total of Non -Compliance Points NOTES 157 �h41J�1*alh9��7f.9�\dUh1: IPMC I BEDROOM YES 6/ N/A 6/ NO s/ N-C PTS COMMENTS 305.3 Wall surface in good repair (: (7 (7 1 305.3 Windows and frames in good repair (' r 7 1 305.4 Floor surface in good repair (• 7 (7 1 305.6 Door, in good repair, securely attached (i (1 (7 1 402.1 403.1 Minimum of 1 openable, approved -size window facing directly to outdoors. (1) (� c c 1 504.1 No visible mold, signs of moisture or leaks (: cc- 3 602.3 602.5 Adequate source of heat 2 q ( ) (' (' i 25 605.2 Two separate & remote electrical receptacle outlets (, (7 7 1 This is of Bedroom # I I total bedrooms in Sze, in square feet dwelling unit (3) (min. 70 sq ft per 404.4.1): Section 1- Bedroom Total of Non -Compliance Points IPMC YES v N/A `/ NO 6/ N-C PTS COMMENTS I BEDROOM NO ADD'L 305.3 Wall surface in good repair (: (1 (7 1 305.3 Windows and frames in good repair ( r r 1 305.4 Floor surface in good repair (i 7 (7 1 305.6 Door, in good repair, securely attached (: cc 1 402.1 403.1 Minimum of 1 openable, approved -size window facing directly to outdoors. (1) . n n 1 504.1 No visible mold, signs of moisture or leaks ( cc- 3 602.5 602. Adequate source of heat (2) (' (1' (1 25 605.2 Two separate & remote electrical receptacle outlets (i c r. 1 This is Bedroom # of total bedrooms in Size, in square feet dwelling unit (3) (min. 70 sq ft per 404.4.1): Section 1- Bedroom Total of Non -Compliance Points IPMC I BEDROOM _I NO ADD'L YES V N/A NO 6/ N-C PTS COMMENTS 305.3 Wall surface in good repair (i, (1 c- 1 305.3 Windows and frames in good repair c.:(--(--- 1 305.4 Floor surface in good repair (' 7 (1 1 305.6 Door, in good repair, securely attached (i 7 7 1 402.1 403.1 Minimum of 1 openable, approved -size window facing directly to outdoors. (1) Ci C r 1 504.1 No visible mold, signs of moisture or leaks (•- cc' 3 602.3 602.5 Adequate source of heat 2 q ( ) (� (1 (_ 25 605.2 Two separate & remote electrical receptacle outlets (i 7 7 1 This is of Bedroom # I I total bedrooms in Size, in square feet dwelling unit (3) (min. 70 sq ft per 404.4.1): Section 1- Bedroom Total of Non -Compliance Points 158 COMPLIES WITH STANDARD? IPMC I BEDROOM 7-C NO ADD L YES �/ N/A �/ NO 6/ PTS T COMMENTS 305.3 Wall surface in good repair ( C C^ 1 305.3 Windows and frames in good repair ( C1 CC 1 305.4 Floor surface in good repair (“(TC' 1 305.6 Door, in good repair, securely attached (a ( C 1 402.1 403.1 Minimum of 1 openable, approved -size window facing directly to outdoors. (1) i r «' 1 504.1 No visible mold, signs of moisture or leaks (: C C 3 602.3 602.5 Adequate source of heat(2)Ci q (�. '. 25 605.2 Two separate & remote electrical receptacle outlets ( 0i C 1 This is of Bedroom # total bedrooms in S'ze, in square feet dwelling unit (3) (min. 70 sq ft per 404.4.1): Section 1- Bedroom Total of Non -Compliance Points IPMC I BEDROOM I NO ADD L YES �/ NIA �/ NO �/ -C PTS COMMENTS 305.3 Wall surface in good repair (f, 0 C 1 305.3 Windows and frames in good repair (a (^' C 1 305.4 Floor surface in good repair ® 0 C_ 1 305.6 Door, in good repair, securely attached (' l 0 1 402.1 403.1 Minimum of 1 openable, approved -size window facing directly to outdoors. (1) (;: (-; (^ 1 504.1 No visible mold, signs of moisture or leaks% cc 3 602.5 3 602. Adequate source of heat (2) (i ) l 0, 25 605.2 Two separate & remote electrical receptacle outlets ® C C. 1 This is of Bedroom # total bedrooms in S'ze, in square feet dwelling unit (3) (min. 70 sq ft per 404.4.1): Section 1- Bedroom Total of Non -Compliance Points NOTES COMPLIES WITH STANDARD? IPMC YES ✓ N/A ✓ NO ✓ N-C PTS COMMENTS EFFICIENCY UNIT/ — NOT 1 STUDIO APARTMENT APPLIC 305.3 Wall surface in good repair Ca C 0 1 305.3 Windows and frames in good repair (:, (1 C1 1 305.4 Floor surface in good repair c. 0 (-- 1 402.1 403.1 Minimum of 1 openable, approved size window facing directly to outdoors. (1) (� c c 1 404.6.2 Kitchen sink, cooking stove, refrigerator, counter space (: cc- 25 404.6.3 Separate bathroom with toilet, sink, and tub or shower (a 0 (1 25 504.1 No visible mold, signs of moisture or leaks (a 0 0 3 505.4 Water heater correctly installed (a 0 0 3 602. 602.55 Adequate source of heat (2) (i C r 25 605.2 Two separate & remote electrical receptacle outlets (,-- 0 C^ 1 Size, in square feet: (Min. size: 220 sq ft for 2 occupants, 320 sq ft for 3 occupants; 3 occupants max., per 404.6) Section J — EFFICIENCY UNIT/STUDIO APT Total of Non -Compliance Points 159 COMPLIES WITH STANDARD? IPMC K OTHER YES v N/A V NO y/ N-C PTS COMMENTS 402.2 LIGHTING FIXTURES REQUIRED: Public hall ( C^ C-- 1 402.2 Interior stairway C• C C^ 1 402.3 Toilet room Ci ( C� 1 402.3 Kitchen ( i r 1 402.3 Bathroom ( ( l 1 402.3 Laundry room C• ( C' 1 404.1 Dwelling provides privacy/separated from adjoining units C; c C- 25 504.3 No plumbing system hazards found Ca r CT 25 603.1 Mechanical equipment properly installed & maintained (ii, ( C1' 25 603.5 Combustion air supply is adequate for fuel -burning equip C; C. r 25 604.1 Unit has electrical service provided by utility C:, r C. 25 604.3 No electrical system hazards found C: C C� 25 Section K— OTHER Total of Non -Compliance Points L MEANS OF EGRESS; FIRE PROTECTION I S YN-C N/A�/ v �/ NO �/ PTS PTS COMMENTS 702.1 Safe, continuous, unobstructed path of travel Ca' C C i 25 702.3 702.4 Doors, bars, grilles, grates over emergency escape openings are readily operable from inside, without keys or special knowledge Ca C' C' 25 702.4 Adequate emergency egress from all habitable spaces ( C` (--' 25 703.2 Fire doors not blocked, obstructed or inoperable C!' i C1) 25 704.2.1 SMOKE DETECTORS REQUIRED: on each story C• C ( 25 704.2.2 Inside each bedroom Ca ( (' 25 704.2.3 On ceiling or wall outside of each sleeping area ii C C^ 25 RCW 19.27.530 CARBON MONOXIDE DETECTORS REQUIRED (on each story, in immediate vicinity of each sleeping area) C; C— (-- 25 Section L — MEANS OF EGRESS; FIRE PROTECTION Total of Non -Compliance Points NOTES: (1) Screens required on openings used for ventilation. Minimum total glazed area shall be at least 8% of floor area. Openable area shall be at least 4% of floor area. (2) Capable of maintaining 68°F temperature 3 feet above floor & 2 feet inward from center of exterior wall. Space heaters not permitted as only source of heat. (3) For additional rooms, attach supplementary inspection forms as necessary. INSPECTOR COMMENTS: Inspection date: Inspector's signature: Landlord/owner signature: Inspector's name (print): > INSPECTION SCORE: Total non-compliance points (25+ points = inspection failure) 0 City will issue "Certificate of Compliance" for units accruing less than 25 points. Units accruing 25 points or more constitute a failure. Landlord has 30 days to correct deficiencies and obtain re -inspection. A unit must pass inspection in order to receive Certificate of Compliance and Residential Rental Housing Business License and be considered fit for occupancy. Certificates of Compliance are valid for four calendar years from date of inspection. Properties must be reinspected prior to expiration. 160 ATTACHMENT B - SHORT TERM RENTAL RESPONSES LYNNWOOD This has not been an issue that we've experienced or been asked to address. Paul Krauss AICP, Community Development Director The City of Lynnwood Council has not brought this up as an issue in our jurisdiction. We are not taking a position at this time. Todd Hall, Planning Manager NORMANDY PARK Normandy Park currently does not regulate short-term rentals. Although we have briefly investigated options for such regulation, at this time the City does not have plans to adopt such regulations. David Nemens, Community Development Director DES MOINES We don't have specific policies addressing short-term rentals. Currently, we do not regulate them any differently than a typical residential rental, but could in the future depending upon how big an issue it is/becomes. The Des Moines Municipal Code (DMMC) addresses rental housing in chapter 5.64 DMMC and requires a business license, but does not distinguish between short-term or longer -term rentals. There have been a number of concerns raised over the. years related to parking, noise, etc. from the more intense short term rentals. Denise E. Lathrop, AICP Planning & Development Services Manager 5.64 Rental Housing BURIEN We do allow them, they do have to have a business license under the regulations of a Bed and Breakfast. Barb Canfield, Code Compliance Officer 19.17.080 Bed and Breakfast Establishments SEATAC No issues with airbnbs. There is a code for a special excise tax but it is not enforced for short term rentals. No other current regulations for short-term rentals. Has not been an issue. Margarita Flores, Code Compliance Admin 2 AUBURN 'Inc, response RENTON no response ATTACHMENT C Neighboring Jurisdictions' Regulation of Short -Term Rentals Jurisdiction Single -Family Residences ADUs (Detached or Attached) Multi -Family Residences Licensure Requirements (if any) Relevant Code Citations Maple Valley Bed and breakfast facilities a conditional use in residential zones, up to three guest rooms, capped at two weeks, must be permanent residence of operator, requires "adequate" parking No regulation (primary residence must be owner occupied, and shall have one off-street parking) No regulation (does not meet definition of "bed and breakfast facility" which is limited to SFR Requires conditional use permit MVMC 18.20.020 (A) and (B); 18.30.030(B)(5) and (8) [Note: Boarding/lodging homes are prohibited] Bothell Bed and Breakfast facilities permitted in most zones, capped at four bedrooms and subject to parking restrictions and owner -occupancy Permitted, owner- occupancy (for 6 months) required and cap on occupancy No regulation None BMC 12.06.110 Covington Bed and breakfast guesthouse; must be primary residence of operator; capped at 5 guests; requires one off-street parking per room, capped at 2 per facility; Bed and breakfast guesthouse; must be primary residence of operator; capped at 5 guests; requires one off-street parking per room, capped at 2 per facility; Bed and breakfast guesthouse; must be primary residence of operator; capped at 5 guests; requires one off-street parking per room, capped at 2 per facility None _ CMC 18.25.030(B)(6) and (7) 163 Page 2 Jurisdiction Single -Family Residences ADUs (Detached or Attached) Multi -Family Residences Licensure Requirements (if any) Relevant Code Citations Mercer Island Permitted as "bed and breakfast" facilities, capped at four rooms, shall be primary residence of operator, requires one off-street parking space per room rented. Permitted (no regulation specific to short-term rentals), requires owner occupancy, and capped number of occupants (one "family"), no additional parking. Only permitted as "Rooming House" (seven or more persons unrelated to the operator), within multifamily zones and Town Center. None (except Rooming Houses) MICC 19.02.010(C)(7), 19.02.030, and 19.06.080 Tacoma Permitted: (1) may rent the entire dwelling to one family or a group of up to 6 people in all Residential, Commercial, Mixed- Use, and Downtown Districts; (2) may rent 1-2 guest rooms within an owner- occupied dwelling in all Residential Districts, including single-family districts. Permitted, up to 4 people in all Residential, Commercial, Mixed- Use, and Downtown Districts May rent 3-9 guest rooms, after receiving an approved Conditional Use Permit (CUP), in R-3, R-4L, R-4, R-5, RCX, and NRX Districts (these are generally residential districts that allow duplex, triplex, and multifamily dwellings). • Must obtain a Business License; must obtain a Transient Accommodation License if renting 3 or more rooms. TMC 13.06.575 — Short Term Rentals; TMC 13.06.150.C.7 — Short Term Rental in ADUs; TMC 6B.20 — Annual Business License; TMC 6B.140 — Transient Accommodations SeaTac No prohibition, no regulation Permitted, owner- occupancy requirement and maximum occupancy restrictions (based on size) No prohibition, no regulation N/A SMC Ch. 15.465 Renton No prohibition, no regulation Permitted, with conditional use permit and owner - occupancy. RMC 4-2-080(A)(7) . 164 Page 3 Jurisdiction Single -Family Residences ADUs (Detached or Attached) Multi -Family Residences - Licensure Requirements (if any) Relevant Code Citations Kent "Dwelling unit" defined to imply rental of entire unit can be on a weekly, monthly, or longer basis Permitted, owner- occupancy requirement for six months every calendar year. No prohibition, no regulation Business License Required KCC 15.02.130; KCC Ch. 5.14 , Puyallup Bed and Breakfast House permitted, subject to owner occupancy and occupant cap with conditional use permit) Permitted, owner- occupancy requirement ` PMC 20.20.015; PMC 20.20.010(11) Sumner Presumably permitted (no express prohibition, although restriction that dwelling shall be used for "one family") Permitted, owner- occupancy requirement and maximum occupancy restrictions (based on size) No prohibition N/A SJC 18.04.0940; SMC 18.10.030 Poulsbo Permitted Prohibited Prohibited None PMC 18.70.070 San Juan County Permitted, no more than 31 guests per bedroom; parking required Permitted (attached only), max 3 guests per bedroom; parking required; owner must occupy ADU or primary residence Permitted in Commercial zone only "Vacation Rental Permit" required SJCC 18.40.270 1 San Juan County Council is currently considering legislation to reduce this to two guests per bedroom. Page 4 Jurisdiction Single -Family Residences ADUs (Detached or Attached) Multi -Family Residences Licensure Requirements (if any) Relevant Code Citations Clyde Hill Permitted, with limits on occupancy, parking, and use (for lodging only, can't be used for events) Permitted, with limitations on occupancy, parking, and use (for lodging only, can't be used for events) Permitted, with limits on occupancy, parking, and use (for lodging only, can't be used for events) Business License Required Ch. 5.20 CHMC Ilwaco Conditional use in single-family, zones with limits on occupancy and parking. Permitted use in certain specified zones Permitted use in certain zones Business License Required Ch. 15.41 IMC Leavenworth Prohibits use of entire dwellings as vacation rentals; permits short- term rental of a portion of a home when the property owner lives on -site throughout the visitor's stay with appropriate permits, including a business license Permitted, subject to owner -occupancy requirement and permitting Prohibited Business License Required LMC 18.52.120 Westport Permitted, subject to occupancy cap, parking and other standards Permitted, but only 1 vacation rental unit per "property" Prohibited Business License Required Ch. 17.22 WMC 166 j1 0e §t r;oPe Nr11s ,rent°° j e 6a ,tee d Myr,tf N0r11 J -t SHORT,ITERM 'RENTAL REGULATION:__ ,,. _ --� 4 . 1 +•, �' Enforcement is- land,,) -----effect ontthOmsing crisis unknown August 2018 ,ay tan N s P O R T L AND II "CITY AUDITOR NEB:: Audit services .. . .. .. Attachment D 167 See complete data from this report on Audit Services' website Mary Hull Caballero, City Auditor Kari Guy, Audit Services Director Audit Team Alexandra Fercak, Senior Management Auditor Tenzin Gonta, Senior Management Auditor Minh Dan Vuong, Senior Management Auditor Cover Map data © Google SNORT•TERN RENTAL REGULATION: Ellin -cement N da am clew on hum, utu, mwo..n :ors lose 168 Short -Term Rental Regulation Enforcement is lax and effect on housing crisis unknown Summary The City began regulating short-term rentals in 2014, and the market has more than doubled since then. The intent of regulations was that homes should be used primarily for residential rather than commercial purposes, but the City's current approach cannot assure this. Most hosts do not obtain the required permits: only an estimated 22 percent of properties are permitted, and the City rarely enforces its regulations. Despite concerns about the effect of short-term rentals on housing availability and affordability, the City does not collect data needed to regulate these rentals and to monitor the housing market. City sets rules for In 2014, City Council changed the zoning code to allow hosts to rent short-term their residences for short terms. Commonly, hosts and renters find rentals each other using online booking agents, such as Airbnb, HomeAway or Vacasa. Before these rules were adopted, the City only regulated and taxed hotel, motel, and bed & breakfast rentals. The City's short-term rental regulations require hosts to get a Type A or Type B permit depending on the size of the rental and follow certain restrictions: • The host must occupy the residence at least nine months of the year • The rental property must be the primary residence of the host • A maximum of 25 percent of units in a multi -family buildings/ may be rented • Rentals must be for Tess than 30 days These requirements were intended to preserve the residential character of neighborhoods and to prevent commercial short-term rental activity. The Bureau of Development Services conducts home inspections before issuing permits to ensure the safety of visitors renting the units. Development Services also investigates complaints and enforces short-term rental regulations. 1 169 Short -Term Rental Regulation Hosts are required to obtain a business license from the Bureau of Revenue and Financial Services and pay City taxes and fees. Those taxes include the lodging tax also required of hotels, and a business tax if rental and other business income combined exceeds $50,000 per year. Recent changes to city tax codes also added fees specific to short-term rentals. Online booking agents may remit lodging taxes and fees on behalf of hosts. We conducted this audit to determine the effectiveness of the City's regulations, and how the City evaluates the effect of short-term rentals on housing availability and affordability. Audit Findings If the regulations were working as intended, all short-term rentals would meet permit requirements, inspections would ensure the safety and livability of the spaces rented, and all taxes would be paid. In addition, the City would analyze effects of short-term rental activity on housing affordability and availability. We found shortcomings in these areas. One factor that has limited City bureaus' ability to enforce the regulations is the lack of data about short-term rental activity, including data on listings and their hosts, how often and for how long listings are rented, and rental rates and revenue. Of approximatelyl5 booking agents active in Portland, none regularly provide data to the City, citing privacy protections for hosts. The City recently reached an agreement with one booking agent, HomeAway, to provide data on hosts as soon as Airbnb also agrees to provide data to the City. At the time of this audit, the City had not yet reached agreement with other booking agents. Because the City did not have data on short-term rentals, we used information gathered by Inside Airbnb. Inside Airbnb is a group not affiliated with Airbnb that compiles public information from Airbnb's website. Its data includes the listing, the availability calendar, estimated location, host information, and reviews for all properties offered on the Airbnb website. This information is limited: it doesn't include properties offered by other booking agents; the data does not show nights rented, whether a host lives on site, or the address of the unit. In addition, a listing on Airbnb doesn't always represent a housing unit such as an apartment or house, and one permit issued 2 170 Short -Term Rental Regulation Compliance is low and enforcement is limited See complete data on Airbnb listings and hosts on our website Data is for Airbnb listings only. Listing might be for the whole house/ apartment or a room within the house/ apartment. For some months data was not available. may be applicable to more than one listing. However, because most Portland rentals are listed on Airbnb, we found the data sufficiently reliable to provide an estimate of short-term rental activity in Portland and to highlight the importance of obtaining complete data from the booking agents. This audit's findings rely on City permit and complaint data and Inside Airbnb data. Visual representations based on Inside Airbnb data can be found on the City Auditor's website. As of October 2017, Development Services had issued 1,638 active permits. In contrast, data from Inside Airbnb shows over 4,600 listings offered on Airbnb alone. Assuming a one-to-one relationship between permits and listings, and estimating number of listings from the other booking agents, only about 22 percent have permits. Only about of short-term rentals are permitted Since 2015, listings on Airbnb have more than doubled. Among all listings, the percentage of entire houses/apartments has grown from about 55 percent in early 2015 to 60 percent in December 2017. Number of Listings 3 Source: Audit Services analysis of data from Murray Cox, Inside Airbnb Type of Room • Entire homes • Private rooms within a home ■ Shared rooms within a home 3 171 Short -Term Rental Regulation One reason for the low permit compliance may be that the cost and time to obtain a Type B permit is high. Since 2014, the City granted 1,733 Type A permits, which are required for hosts renting one or two bedrooms. The permit fee is $178 and requires no land -use review. A Type B permit is required for hosts who want to rent three or more bedrooms. The fee costs about $5,000 and Type B permits require a land use review. Only 13 Type B permits have been issued as of October 2017, but an estimated 444 of the 4,600 listings identified in 2017 by Inside Airbnb are for properties with three bedrooms or more. Another reason for low compliance with permit requirements may be that booking agents do not require a rental to have a City permit before posting the listing to their websites. This is required by City Code where the City can fine agents for each unpermitted listing, but it is not enforced because the City does not have host data. In contrast, San Francisco requires booking agents to verify that hosts have obtained a permit, and the city reached an agreement with booking agents to obtain their host data and fines agents for unpermitted listings. Enforcement by Development Services is also limited because it reacts to complaints rather than using more proactive approaches. The Bureau investigates complaints about properties to determine whether they are valid and if fines should be imposed, but does not proactively enforce the Code. The number of complaints about short-term rentals increased from 24 in 2013 to 297 in 2017. Our analysis of Inside Airbnb data shows some neighborhoods with high concentrations of short-term rentals, but the Bureau does not use this information to target them for enforcement. The data shows some hosts with multiple listings, contrary to Code requirements. Relying on a complaint -based process means that only those with knowledge of the process will submit a complaint to the City and increases the likelihood that compliance with regulations will remain low. As long as the City does not proactively enforce requirements and there is widespread non-compliance, it will be unable to control short-term rental activities and protect the residential nature of neighborhoods. 4 172 Short -Term Rental Regulation Complaints are concentrated in Northwest and Northeast Portland (Fiscal Year 2013-2018). • Source: Audit Services analysis of Bureau of Development Services short-term rental complaint data. Only partial data for FY2018. Airbnb listings are concentrated in Northwest, Northeast, and Southeast Portland. Source: Audit Services analysis of data from Murray Cox, Inside Airbnb, December2017 Data is for Airbnb listings only. Go online for data visualization on Airbnb listings types and hosts. 5 173 Short -Term Rental Regulation Inspections may not ensure safety 6 Over 90 percent of permit applicants pass the safety inspection on the first try. Safety inspections are brief, taking about ten minutes to complete. This is because current City Code includes only specific requirements, such as the presence of a smoke detector in the bedrooms, and does not require a comprehensive safety inspection of the property. Inspections were intended to ensure the safety of visitors renting the units, but the current inspection requirements and practices are minimal and may not meet that intent or the public's expectations. For example, someone renting a permitted space would reasonably expect the house or apartment to be safe for overnight stay. In addition, the City may be exposing itself to legal risk when inspectors do not address a property's other Code violations, such as an unsafe staircase or patio. An alternative approach could be to conduct targeted inspections and focus resources on high -risk properties. Most booking Ten out of an estimated 15 Pays agents remit booking agents remit Booking agent lodging lodging tax lodging taxes to the City. tax Since these ten agents Airbnb represent the majority of Craigslist Portland's listings, Revenue Evolve Division estimates that most HomeAway hosts are paying the lodging tax. However, without HomeToGo access to the host and HouseTrip (TripAdvisor) listing data, it is difficult for Misterbnb the Division to audit these Roomorama booking agents. The Division estimates the total StayAlfred number of hosts by TripAdvisor/Flipkey searching each agent's Vacasa �I website, which may not provide an accurate count. VacationHomeRentals (TripAdvisor) The result is that the City VacationRentals (HomeAway) may be missing out on taxes VRBO (HomeAway) owed. Wimdu Source: Division of Revenue 174 Short -Term Rental Regulation Effect of short-term rentals on housing market is unknown Revenue's approach to improve tax compliance and get data on listings has been through litigation. Revenue was successful in reaching agreement with HomeAway to provide listing data if and when Airbnb also provides the data. At the time of our audit, the City was negotiating with Airbnb to obtain its data. Even as the number of short-term rental units has increased each year, their effect on housing availability, affordability, and neighborhood quality has not been monitored by the City. No City bureau has been assigned the responsibility to collect data and measure the impact on housing or related goals. Prior work by City bureaus does not sufficiently address these questions. In 2016, the Bureau of Planning and Sustainability produced a short-term rental regulation progress report, but it did not describe effects on the three areas of concern. The Housing Bureau attempted to review the short-term rental market as part of its State of Housing Report in December 2017, but it lacked data on hosts and listings. The 4,600 Airbnb listings identified by Inside Airbnb make up approximately 1.7 percent of the City's 273,000 housing units. However, addresses for listings are not provided, and one housing unit may have more than one listing. At the time regulations were developed in 2014, City Council and community members raised concerns about the effect of short-term rental units on the housing market, but the City has not obtained complete data from the booking agents to assess these effects. 7 175 Short -Term Rental Regulation Some Portland neighborhoods have higher activity Analysis of Inside Airbnb and City data Some neighborhoods have a high concentration of short-term rentals and high numbers of visitors staying in these units. To provide a neighborhood comparison, we estimated the number of nights units are occupied and compared them to the housing stock for each neighborhood. Neighborhoods in inner Northeast and inner Southeast are frequented by short-term renters more often than other parts of the city. These also are neighborhoods that have experienced gentrification and are facing housing shortages. These neighborhoods may need to be monitored to determine how short-term rental activity affects them. For example, some cities have limited short-term rental units in certain !r �. neighborhoods because of high use that detracts from neighborhood livability. Source: Audit Services analysis using data from Murray Cox, Inside Airbnb, December 2017 Data is for Airbnb listings only. Estimated nights of occupancy as a percent of total housing stock. Hosts renting multiple short-term rentals may decrease housing supply 8 Inside Airbnb data shows there are several Portland hosts with multiple listings (see data on Auditor's website). Due to limited data on listings, it is unclear how much of this activity represent illegal short-term rentals. For example, some of these hosts are hotels or bed & breakfast firms that list separate rooms, or hosts that list separate bedrooms in their homes. Some may be management companies that list and manage units for clients. Others may be hosts listing multiple houses that are not their primary residence, which would be a violation of City Code. 176 Short -Term Rental Regulation Accessory dwelling units intended to increase affordable housing supply may be used as short- term rentals Because the City doesn't have access to complete data on these listings, it does not know the effect on long-term rental rates or whether hosts are removing residences from the Tong -term rental market. Research in other cities shows growth in the number of hosts who rent multiple properties in residential areas. This commercial - type activity in residential areas also risks diminishing the character and livability of the neighborhood. Some Airbnb hosts offer multiple listings Red on'map indicates hosts with 6 or -more listings Source: Audit Services analysis using data from Murray Cox, Inside Airbnb, December 2017. Data is for Airbnb listings only. See data on Auditor's website Council intended for accessory dwelling units, also known as in- law apartments, to contribute to the City's affordable housing and housing density goals. However, for permitted short-term rentals, we found that 21 percent of properties are estimated to have an accessory dwelling unit. 21% of short-term rental permits are properties with an accessory dwelling unit 9 177 Short -Term Rental Regulation The City currently waives fees for accessory dwelling units construction in order to incentivize the use of these structures for affordable housing. In June 2018 Council voted that to qualify for the waiver of these fees, the unit may not be used for short-term rental for 10 years. The exact number of these units currently used as short-term rentals is unknown, because the City does not have an exact number of accessory dwelling units, and data on the total number of short-term rentals with accessory dwelling units is not available. Other cities have attempted to study the effect of short-term rentals on housing affordability and availability. In May 2015 the City and County of San Francisco concluded that commercial hosts using Airbnb affect the city's neighborhood supply of long-term rental housing units. On average, hosts earned more money renting to short-term visitors than they would in the long-term rental market. New York and Seattle have also concluded that their growing short- term rental market is affecting availability of long-term rental housing. These conclusions have inherent data limitations, because in many cases they used incomplete Airbnb data obtained from third parties and may rely on assumptions about the rental market. The conclusions and their limitations demonstrate the need for a thorough analysis and monitoring of Portland's housing market, and for the City to continue pursuing valid and comprehensive data. 10 178 Short -Term Rental Regulation Recommendations To effectively regulate short-term rentals and enforce rules, we recommend the Bureau of Revenue and Financial Services and the Bureau of Development Services: 1. Obtain data on active short-term rental hosts, listings, and occupancy from booking agents or from other publicly available sources, and use it to enforce the City's zoning and tax code. 2. Use proactive, risk -based enforcement to target hosts with multiple listings and potential commercial activities in residential zones. 3. Revise the permitting process to meet intended safety and neighborhood livability goals. 4. Use host data to enforce booking agents' compliance with City Code. To assess the impact of short-term rentals on the housing market, we recommend the Housing Bureau: 5. Work with Council to add measuring the effect of short-term rentals on housing goals to short-term rental City Code and regulations. 6. Obtain short-term rental data from booking agents or from other publicly available sources, develop a monitoring process of the market, and evaluate effects on housing. Report short-term rental market data in the State of Housing annual report. 11 179 Short -Term Rental Regulation Objectives, Scope and Methodology 12 Our audit objectives were to determine the effectiveness of the City's short-term rental regulations and how the City evaluates the effects of short-term rentals on housing. Our methods included: • Reviewing City Code, state laws, existing studies, and other audits • Reviewing the permitting and inspection processes and interviewing staff from the Bureau of Development Services and Bureau of Revenue and Financial Services • Analyzing permitting and enforcement data • Analyzing tax activity data • Interviewing stakeholders • Analyzing data on Airbnb listings obtained from Murray Cox/ Inside Airbnb and housing stock from the American Community Survey We performed analyses to conclude that city data was reliable for our audit objectives. We relied on the work of Murray Cox of Inside Airbnb for webscraped Airbnb data sets, and we concluded this data to be reliable for our audit objectives. The Airbnb listings data presented are monthly one-time snapshots of listings available between 2014-2017. We also relied on the work performed by the Bureau of Planning and Sustainability to determine which properties in the city had an associated accessory dwelling unit. Auditing standards require auditors to be structurally independent of the audited organization to avoid any actual or perceived relationship that could impair the audit work performed or findings reported. The City Auditor is responsible under City Charter to conduct audits of the City, which are performed by the Audit Services Division. Under City Code, the City Auditor also has a role in appeals of City enforcement decisions and the collection of City liens. This work is conducted by units separate from the Audit Services Division. Given this audit's scope and focus on activities at the Bureau of Development Services and Office of Management and Finance's Revenue Division, we do not believe the City Auditor's 180 Short -Term Rental Regulation other non -audit responsibilities constitute a threat to our independence. We conducted this audit i.n accordance with generally accepted government auditing standards. Those standards require that we plan and perform the audit to obtain sufficient, appropriate evidence to provide a reasonable basis for our findings and conclusions based on our audit objectives. We believe the evidence obtained provides a reasonable basis for our findings and conclusions based on our audit objectives. 13 181 RESPONSES TO THE AUDIT Office of Mayor Ted Wheeler City of Portland August 7, 2018 Mary Hull Caballero City Auditor 1221 SW Fourth Ave, Room 140 Portland, OR 97204 Dear Auditor Hull Caballero: Thank you for your audit and the short-term rental regulations enforcement and effects on the housing market. As the Commissioners -in -Charge of the Bureau of Development Services, the Bureau of Revenue and Financial Services and the Portland Housing Bureau we take the results of your audit very seriously. In terms of additional enforcement mechanisms, we are dedicated to increasing our oversight and enforcement of the city regulations. Specially, the Bureau of Development Services will be working with the Office of Management & Finance to ensure that the regulatory regime most effectively deploys city resources and focuses on accomplishes the goals of the City. Continued refinement of regulatory requirements to ensure that they are appropriate will be a key priority of this effort. Specifically, the Bureau of Revenue and Financial Services will continue to finalize agreements with industry so that we have access to up to date data from the platforms. With this data, which has been lacking, the Office of Management & Finance will be able to more effectively enforce City Council's direction on Short Term Rentals. This will effectively respond to the issues brought forward by the audit. While the full effects on the housing market are at present unknown, your audit's preliminary analysis shows some very concerning trends, especially in inner-city neighborhoods. It is concerning to us that short-term rentals may be exacerbating the accessibility, availability and rentability of these neighborhoods. Our offices are confident that negotiations with Short Term Rental companies will result in a new regulatory structure that will enable the City of Portland to effectively enforce its policy that limits the number of days a non -owner -occupied unit can be rented on a short-term basis. These "commercial" short-term rentals not only could reduce the supply of long-term housing, but could also subvert the zoning code by converting residentially zoned properties into commercial uses. 1221 SW Fourth Avenue, Suite 340 • Portland, Oregon 97204 MayorWheeler@PortlandOregon.gov 183 Thank you again for your team's thoughtful and timely analysis. Sincerely, Mayor Ted Wheeler G'A,loc Commissioner Chloe Eudaly 1221 SW Fourth Avenue, Suite 340 • Portland, Oregon 97204 MayorWheeler@PortlandOregon.gov 184 City of Portland, Oregon Bureau of Development Services Office of the Director FROM CONCEPT TO CONSTRUCTION Chloe Eudaly, Commissioner Rebecca Esau, Director Phone: (503) 823-7300 Fax: (503) 823-6983 ITY: (503) 823-6868 www.portlandoregon.gov/bds August 3, 2018 To: Mary Hull Caballero, City Auditor Audit Services Division From: Rebecca Esau, Director f-r Bureau of Development Services Cc: Elshad Hajiyev, Business Operations & Finance Services Manager Dan Cote, Interim Portland Online Permitting Services & Inspection Services Manager Dave Tebeau, Residential Inspections Manager Mike Liefeld, Enforcement Program Manager Subject: BDS Response to Short-term Rental Regulation Audit Thank you for the opportunity to review and respond to your audit, Short-term Rental Regulation. We appreciate the time that the audit team spent assessing this issue and its impact on housing, especially in a time when housing is at the forefront of policy conversations regionally and across the country. We acknowledge that the current regulation and enforcement system is not perfect and needs improvement. The Bureau of Development Services (BDS) has consistently administered the policies adopted by City Council and these audit recommendations relate to policy issues beyond BDS. BDS is committed to administering any changes to Short-term Rental (STR) issues as directed by • the City Council. In response to your recommendations to both the Bureau of Revenue and Financial Services and the Bureau of Development Services: 1. Obtain data on active short-term rental hosts, listings, and occupancy from booking agents or from other publicly available sources and use it to enforce the City's Zoning and Tax Code. BDS supports the City's efforts to enter into agreements with STR booking agents to share host information. This recommendation is addressed by the Bureau of Revenue and Financial Services in their audit response letter. 2. Use proactive, risk -based enforcement to target hosts with multiple listings and potential commercial activities in residential zones. The City Council adopted STR regulations in 2014. At that time, the City Council was very clear that enforcement would continue to be complaint driven, and no additional resources were allocated for STR enforcement. Additionally, City Council was clear on what should be inspected at these sites, due to concern from the public that the inspectors would cite 1900 SW 4th Avenue, Suite # 5000, Portland, OR 97201 185 homeowners with violations unrelated to the STR, and the inspection requirement would become a deterrent to getting host sites permitted. City Council limited those bedroom inspections to three things: a) that they met the building code requirements for a sleeping room at the time they were created or converted, with an exemption for bedrooms in multi- dwelling structures and in triplexes; b) that each bedroom to be rented have a smoke detector that is interconnected to a smoke detector in an adjacent hallway in the dwelling unit; and c) that the bedroom(s) to be rented are on the floor of a dwelling unit equipped with a functioning carbon monoxide alarm. If the dwelling unit does not have a carbon monoxide source, then the alarm is not required. In an effort to increase permit compliance rates, in 2017, BDS developed a citation -based enforcement process specific to STRs. Information on this system and current enforcement penalties are found here: https://www.portlandoregon.gov/bds/article/628271 City Council will need to provide clarity on the level of enforcement they wish to see for STR regulation violations and provide additional resources to implement a proactive risk -based enforcement, targeting hosts with multiple listings and potential commercial activities in residential zones. Current revenue collections from registration and inspection fees are not sufficient to implement proactive, risk -based enforcement to target these hosts. Funding sources such as General Fund and/or new fees could possibly fill that funding gap. Policy discussion is needed with City Council regarding appropriate funding sources to support an expanded enforcement program, and whether host -paid permit fees should be increased to pay for enforcement beyond the current complaint -based system. Consideration should also be given to the impact that higher fees could have on achieving the goal of hosts seeking the required permits. 3. Revise the permitting process to meet intended safety and neighborhood livability goals. When adopted in 2014, City Council was very clear that the scope of the safety inspection was limited to the three existing standards in Title 33, Chapter 33.207. City Council will need to revise the adopted zoning code language if they wish to set a new inspection scope. In addition, if the inspection scope is revised, the cost of these inspections would need to be covered by additional fees to applicants, or paid for through an alternative funding source. Current revenue collections from inspection fees are not sufficient to implement an expanded inspection scope. Funding sources such as General Fund and/or new or increased fees could possibly fill that funding gap. 4. Use host data to enforce booking agents' compliance with City Code. This recommendation is addressed by the Bureau of Revenue and Financial Services in their audit response letter. A point of clarification regarding fee waivers for accessory dwelling units (ADUs), the City does not waive fees for ADUs. However, System Development Charges (SDCs) are waived for ADUs if the owner records a covenant on the property stating that they will not rent any of the bedrooms on the site as an STR for a period of ten years. BDS is supportive of this 2 186 recent change in City policy from providing SDC waivers for all ADUs to only those that won't use their property as an STR for ten years, thereby incentivizing the use of the units/bedrooms on -site as long-term rentals. BDS shares the concern that STRs are impacting the supply of Tong -term rental housing units due to them often being a more lucrative option for a property owner. That income may also make it feasible for lower income homeowners to remain in their homes, avoiding displacement. Affordable housing, gentrification and displacement are layered and complex issues. More data from booking agents, etc. will help the City as we move forward to refine our policies to better address the housing crisis. BDS appreciates the work that the audit team has done and is committed to the City's goals of effectively regulating short-term rentals and mitigating the housing crisis. 3 187 Portland Housing Bureau Mayor Ted Wheeler . Interim Director Shannon Callahan August 3, 2018 Mary Hull Caballero City Auditor 1221 SW Fourth Ave, Room 140 Portland, OR 97204 Dear Auditor Hull Caballero: 42' SvY 6thAvenue Pr !:rid OR 9720i 03.823 2375 503 82.3.2387 `A. portlandoregor guv.ph6 Thank you for the opportunity to provide feedback on the Short -Term Rental Regulation Audit report. The report makes two recommendations to the Housing Bureau. 1. Work with Council to add measuringthe effect of short-term rentals on housing goals to short-term rental City Code and regulations. Our understanding is that this recommendation would add a requirement to measure the effect of short term rental on housing goals into City regulations, i.e. the Ordinance.. The Housing Bureau understands and accepts the recommendation to monitor the market, and to evaluate short-term rentals effects on the housing market. 2. Obtain short-term rental data from booking agents or from other publicly available sources, develop a monitoring process of the market, and evaluate effects on housing. Report short- term rental market data in the State of Housing annual report. As stated above, the Housing Bureau agrees with the recommendation to monitor and evaluate short-term rentals effects on housing. We would propose to conduct a baseline analysis and report. Periodic follow-up reports could be published as necessary. We believe we would it would be prudent to establish a baseline to determine the effects on the market before making a commitment regarding the frequency of reporting. We appreciate your office's work to help the City and the Housing Bureau adapt to emerging market trends which may affect housing accessibility and affordability of housing in Portland. Sincerely, on Callahan 188 CITY OF PORTLAND OFFICE OF MANAGEMENT AND FINANCE BUREAU OF REVENUE AND FINANCIAL SERVICES Ted Wheeler, Mayor Jennifer Cooperman, Chief Financial Officer Thomas W. Lannom. Revenue Division Director Revenue Division 111 SW Columbia Street, Suite 600 Portland, Oregon 97201-5840 (503) 823-5157 FAX (503) 823-5192 TTY (5031823-6868 TO: FROM: SUBJECT: DATE: MEMORANDUM Mary Hull Caballero, City Auditor Jennifer Cooperman, Chief Financial Office Response to Audit of Short -Term Rental Reation July 30, 2018 Thank you for the opportunity to comment on your audit titled "Audit of short-term rental regulation." The City of Portland has been a national and international leader in the areas of short-term rental regulation and taxation. Portland was among the first cities to legalize short-term rentals and was also the first U.S. city to collect hotel/motel taxes from short-term rental platforms beginning in 2014. We generally agree with the recommendations in the audit, especially the recommendation to obtain data on short-term rental hosts and listings. As noted in the audit, the Bureau of Revenue and Financial Services, Revenue Division has already secured an agreement for data -sharing from HomeAway.com, Inc., and soon expects to reach an agreement with Airbnb as well. Once obtained, this data will be used to enforce regulatory and tax provisions of the City Code; An Equal Opportunity Employer To help ensure equal access to programs, services and activities, the Office of Management & Finance will reasonably modify policies/procedures and provide auxiliary aids/services to persons with disabilities upon request. www.portlandoregon.gov/revenue' 189 Audit Services Division Office of the City Auditor 1221 SW 4th Avenue, Room 310 Portland, OR 97204 503-823-4005 www.portlandoregon.gov/auditservices Short -Term Rental Regulation: Enforcement is lax and effect on housing crisis unknown Report #499, August 8, 2018 Audit Team: Alexandra Fercak, Tenzin Gonta, Minh Dan Vuong Mary Hull Caballero, City Auditor Kari Guy, Director of Audit Services Other recent audit reports: Private Stormwater Management: City reliance on property owners requires review of risks and results (July 2018) Portland Police: Improvements made to training program (June 2018) Regional Arts and Culture Council: Clear City goals aligned with strong Arts Council strategy will improve arts and culture services (May 2018) This report is intended to promote the best possible management of public resources. This and other audit reports produced by the Audit Services Division are available for viewing on the web at: www.portlandoregon.gov/auditservices. Printed copies can be obtained by contacting the Audit Services Division. 190 Nora Gierloff From: Allan Ekberg Sent: Tuesday, July 3, 2018 11:03 AM To: Nora Gierloff Subject: RE: Tukwila Short Term Rental Regulations While at AWC in Yakama last week one City (sorry can't remember whom) said they charge a $20 dollar flat fee for every short term rental stay that a property has. So if an Air BnB is rented out to different individuals and used 10 times in a month, that is $200. Might be something to consider and more lucrative than annual lodging tax. Allan Allan Ekberg Tukwila Mayor From: Nora Gierloff Sent: Tuesday, July 3, 2018 10:54 AM To: Nora Gierloff <Nora.Gierloff@TukwilaWA.gov> Subject: Tukwila Short Term Rental Regulations Thanks to those of you who commented on the short term rental (Air BnB) issue and/or attended the Planning Commission hearing. The PC asked for additional information including: • Options for treating small multi -family buildings or condos differently than apt complexes • Proposal for licensing/inspections • Definition of owner occupancy/proposal for restriction to owners • Off-street Parking • Cap on the number of rentals per host • Annual lodging tax from short term rentals • Add Maple Valley, Covington, Mercer Island to the Neighboring Jurisdiction Chart • Experience of other jurisdictions with enforcing short term rentals especially SeaTac and Burien • More detail on the boarding house issue This is tentatively scheduled to go back to PC on August 23 and I will confirm that date as we get closer. Please let me know if you have questions or would like to be removed from this email list. Norc, Gierlo ff Deputy DCD Director City of Tukwila 1 L. City of Tukwila Planning Commission PLANNING COMMISSION (PC) MINUTES Date: June 28, 2018 Time: 6:30 PM Location: Council Chambers Present: Chair, Nhan Nguyen; Vice Chair, Dennis Martinez; Commissioners, Mike Hansen, Sharon Mann, Louise Strander, and Heidi Watters Absent: Commissioner, Miguel Maestas Staff: Nora Gierloff, Community Development Deputy Director, Charlotte Archer, City Attorney, and Wynetta Bivens, Planning Commission Secretary Adopt Commissioner Stander requested to amend the March 8, 2018 minutes, to reflect she Minutes: abstained from voting. Commissioner Martinez moved to adopt the 5/24/18 minutes as amended. Commissioner Hansen seconded the motion. All were in favor. Chair, Nguyen, opened the public hearing and swore in those wishing to testify. CASE NUMBER: L18-0045 Zoning Code Amendments APPLICANT: City of Tukwila REQUEST: Hold a public hearing to get community input on short term residential rentals (less than 30 days) and updates to associated regulations for boarding houses, bed and breakfast lodging and residential rental unit licensing. LOCATION: Citywide Nora Gierloff, Community Development Deputy Director, gave the presentation, and Charlotte Archer from the City Attorney's Office, addressed clarifying questions. Background: Over a year ago the City Council had a work session on housing policy and wanted to look at what they could to do to encourage home -ownership and affordable housing in the City. They gave staff a list of prioritized actions to address, and staff has been working on updating the Accessory Dwelling Unit (ADU) regulations. This issue was heard by the Planning Commission last October and they made recommendations in February that went to the Community Development and Neighborhoods Committee and City Council. One of the issues raised during the review was that ADUs used for short term rentals were not contributing to the housing supply, this turned into a broader look at Tukwila's short-term rental regulations. The Accessory Dwelling Unit ordinance is moving forward with a place holder prohibition on rentals of less than 30 days until the rules are decided Citywide. There are different issues for different housing types and zones. Should there be restrictions on parking, noise, or owner occupancy? And what sort of regulations or licenses would work best. A process is needed for Code Enforcement to have the tools necessary to enforce regulations. PUBLIC TESTIMONY: David Puki, citizen, is opposed to any short-term rental allowances. He said the City does not have the ability to enforce the code. He is in favor of the ADUs with owner occupancy in the main unit. He said there is currently a situation on the east side of his property, and many short-term tenants and cars coming and going, which has caused him problems. He said there has been on -going Code Enforcement issues on the property. He said he hopes short-term housing is not approved until the City can manage rentals and ADUs. Roger Lorenza, citizen, is in favor of ADUs and short-term rentals. He said any restrictions placed on people who own their own home is unrealistic. And the income received from rentals is needed. He said Airbnbs in Tukwila should not be compared to Seattle or other states. He said that there should not be a policy holder for prohibition; he said yes permit the use of residential housing in mixed use zones; do not require a license to operate a short term rental; he agrees with cleaning up the existing regulations, if the present code does not address the short-term rental than do not change the code; He said it's expensive to buy a new home and if people want to rent out their home it's their right. Terrance C. Morgan, citizen, is opposed to short-term rentals. He said he has spoken to the Mayor on these issues. Garcia Queuedo, citizen, is opposed to short-term rentals. He said the quality of life would be a major issue, and there would be parking issues. As well as environmental issues. He said change is inevitable, but it doesn't have to be negative for the people who live in the community. Jenny Sims, citizen, is seeking support to allow Airbnbs and short-term rentals in the community but is against boarding houses. She said her family needs to rent out their basement to help with the mortgage. She said she likes the flexibility and the control that short-term rental allows. She said the long-term tenant laws are in the tenant's favor, and it can be hard to evict problematic tenants. She said having Airbnb provide insurance is a safety net and makes her more comfortable having short-term rentals in her home. She said they would make more money with a long-term rental, but she is not doing it just for the money, but also the flexibility and convenience. She said the network is set up to weed out the problematic people, and she pointed out there are problems with both long-term and short-term rentals. She said she has had a very positive experience so far. She said even if short-term rentals are denied homeowner may not be able to create more long-term rentals due to cost to meet code requirements. She said many homeowners run Airbnbs to help combat the high rise in property taxes. She is not opposed to having regulations for short-term rentals if they are easy to follow and are not prohibitively expensive. Paul Winchester, citizen, is in favor of short-term rentals and has been running an Airbnb, for the past 18 months. He said he has not experienced any parking issues. He said he has been a long-term landlord for over 30 years, and long-term tenants are much more problematic then short-term rentals. He said his property is in better shape now that he has the extra income to maintain the property opposed to having long-term rentals. He said Airbnb vets the tenants. He said when he retires he plans to live at the property in the winter and during vacations, which would not be possible with long-term rentals. He said it provides good income and it has worked out well for him. He currently participates in the rental property program and has had the property inspected through the rental permitting process. He also has a business license, is paying his property taxes, and it is generating good revenue for the government. Patricia Perry, citizen, has been an Airbnb guest in different Cities, and she likes the experience of the personal touch better than hotels. She said she has property in Tukwila and if she needed to, she could run an Airbnb. She has considered it as she gets closer to retirement, to keep up with mortgage cost and property taxes. She said it irritates her being told what she can do with her home when she is the owner. She said progress is happening and it is hard, but she thinks there is a way to meet half way with this issue. She doesn't think it has to be all or nothing. There were no additional public comments. Nora Gierloff, Community Development Deputy Director, stated this is a complex issue, and asked how do you develop regulations that allow you to enforce rules for problematic renters? Page 2 of 5 CLARIFYING QUESTIONS: Charlotte Archer, Tukwila City Attorney, and Nora Gierloff addressed clarifying questions for the Commission. The public hearing was closed. DELIBERATION: Commissioner Martinez said there was a lot of questions for staff and he does not want to rush into any decision without getting complete answers. He suggested staff combine all the answers and bring the information back to the Commission. He said it's tough and some of the questions still lingering are valid concerns. Commissioner Strander said she would like clarification and more info on policy decisions for rental inspections. She inquired on the process if short-term rentals are approved? She asked if units would be subject to the City rental inspection program, or would it be different if a detached ADUs is rented, or a single-family residence, or a bedroom. Ms. Gierloff said she would be concerned with applying inspections to short-term rentals. She asked if a short-term rental is an ADU would it be subject to the parking requirements for ADUs? Commissioner Mann said she feels like she could support short-term rentals with the following requirements: (1) Requiring homeowners are licensed (2) Requiring a legal process for inspections. (3) Property is owner occupied, (4) A cap is placed on the number of rentals a property owner is allowed. (5) Requiring the owner be responsible for the parking needs, and for accommodating at minimum one parking space. Commissioner Nguyen said he is wondering if this is a solution looking for a problem. He said the issues identified are no different than the issues identified with long-term rentals. He asked why short-term rentals are being specifically targeted and the current rules for long term rentals are satisfactory. He said he agrees with licensing, compliance, and parking, but does not necessarily agree with owner occupancy. He said there is a platform for rating both the hosts and renters of short-term rentals, and that is a mechanism we should consider. He said parking restrictions make sense to him. He said we want people to come to our City to spend money, so we should consider economic development. We want to make housing affordable for people of all social economic status and their personal situations. He said the City should consider helping with mortgages because housing is so expensive. And accountability to up keep the property, and the traffic situation. He said short-term rentals could have a better vetting process then longer term rental. Commissioner Martinez said one of the conversations that has not been had is the prohibition of short- term rentals, and the individuals who have commented or sent emails stating their opposition for short-term rentals. He said they deserve some acknowledgement of their concerns. He said it is a tough situation, and at the very least we should let citizens know that we are thinking about them and do hear their concerns. He said one of biggest complaints that everyone has with municipalities is that the governing units do not listen to them. He said we are listening and have the same problems the citizens have, parking and the loud noise. Page 3 of 5 Commissioner Mann said she wanted to defend her requirement for owner occupancy. She said it would be less likely to have a short-term rental who is going to party in the owner's house. And the owner will be more selective about who's going to be in their house. Short-term rentals are a consideration to help first- time home buyers, or to help with high mortgages for individuals to stay in their homes. And it would be allowed for single-family residences, not for people to make money. She said investors trying to make money can take on the capital risk that comes with investing. She said there should be a cap of one rental per home, and asked how you enforce restrictions? She said she would be more comfortable allowing Airbnbs if restrictions are in place. Commissioner Nguyen was opposed to the idea to regulating the number of rentals a home owner is allowed, He said the more people renting Airbnbs the more they pay and depending on the size of the home there is the ability to rent to more people. He said he is totally for community and livability, but he does not want to stereotype people who chose to invest in our City. He said short-term rentals should be treated equally. Commissioner Watters said is makes sense to regulate short-term business operations in a commercial enterprise. She said for single family neighborhoods the City commonly regulates what businesses are allowed in single family zoned areas. And the zoning helps to keep quality neighborhoods, so there is a lot of regulation with zoning. She said the City's role is to make sure trying to make money does not harm the quality of life in neighborhoods. She said it's typical, and it's important to protect families from investment pressure. She said she personally would not be able to compete with an investor for renting her house. She said it is important to think about families, and it's a real asset in the City and we want to try to give citizens the tools necessary to make it. She said that may mean telling investors they are not allowed to invest in an area because people need to be able to live. Commissioner Mann said as appointed public servants as well as elected ones they have a job to do, and it is not to work for a specific group but to make the best community for everyone. She said the Commission's job is to create livability for all citizens, and for single-family neighborhoods. Nora Gierloff asked how staff can help, and what the Commission would like brought back to them. ITEMS FOR STAFF TO BRING BACK TO THE COMMISSION: • A format for the rental housing inspections for the short-term rentals. (Martinez) • Information on how much revenue the City currently receives annually from short-term rentals. (Martinez) • Information on regulations from other communities the size of Tukwila such as, Bothell, Covington, Mercer Island, and Maple Valley. (Martinez) • Information on whether Sea Tac has considered short-term rentals (Wafters) • Information on rental inspections and a recommendation on licensing and how it would work. (Martinez) • A chart of licenses for comparison, listing the various types of licenses other jurisdictions use and how they define them. (Watters) • Information on boarding houses, and negative impacts to hotels. (Watters) • Language on how the new rules will impact problematic boarding houses (Wafters) • A recommendation for off-street parking spaces. (Strander) Page 4 of 5 • A definition for owner occupancy, and information on whether there will be a difference between how they will be handled compared to ADUs (Strander) • A cap on the number of rentals allowed. (Strander) • Information regarding the impacts to the long-term rental market. (Nguyen) • A proposed ordinance, addressing licensing, inspections, owner occupancy, LLC limitations, parking and a cap for the number of rentals allowed, including condominiums. (Mann) • Language for multi -family potential short-term rental (Strander) • Implied Enforcement in the ordinance, which is really a big part of this decision and continues to be a main concern (Hansen) (Nguyen) • If a cap is required for short-term rentals, or owner occupancy is required (Nguyen) wants to see how it would look for long-term rental as well. How will it be affected. • Information on other City's experiences regarding short-term rentals. (Nguyen) • Commissioners Hansen and Nguyen expressed interest in a joint work session with the City Council. Staff will request a joint work session and return with some potential dates. DIRECTOR'S REPORT: • Commissioner Nguyen talked about his attendance at the APA Conference, in New Orleans. He expressed his appreciation for the opportunity, said it was very helpful, and that it gave him a better appreciation of the work done by City staff. He encouraged all the Commissioners to attend when there are APA Conferences in the area in the future. • Due to a busy schedule it is necessary to hold a Work session to update the Environmental Sensitive Areas and Shoreline Codes. Tentative date is October 11, 2018. • Commissioner Martinez asked if the Commission would have the opportunity to tour project sites they have previously approved. Staff offered to provide some potential dates. ADJOURNED: 9:25 PM Submitted by: Adopted: Wynetta Bivens Planning Commission Secretary 7/26/18 Page 5 of 5 City of Tukwila Allan Ekberg, Mayor Department of Community Development - Jack Pace, Director CHAIR, NHAN NGUYEN; VICE -CHAIR, DENNIS MARTINEZ; COMMISSIONERS, MIGUEL MAESTAS, SHARON MANN, MIKE HANSEN, LOUISE STRANDER AND HEIDI WATTERS PLANNING COMMISSION PUBLIC HEARING AGENDA JUNE 28, 2018 - 6:30 PM TUKWILA CITY HALL COUNCIL CHAMBERS .z I. CALLJHE MEETING TO ORDER II. ATTENDANCE III. ADOPTION OF 5-24-18 MINUTES IV. CASE NUMBER: L18-0045 Zoning Code Amendments APPLICANT: City of Tukwila REQUEST: Hold a public hearing to get community input on short term residential rentals (less than 30 days) and updates to associated regulations for boarding houses, bed and breakfast lodging and residential rental unit licensing. LOCATION: Citywide V. DIRECTOR' S. REPORT • Commissioner Nguyen share APA Conference hid hlights 8 Tukwila City Hall • 6200 Southcenter Boulevard • Tukwila, WA 98188 • 206-433-1800 • Website: TukwilaWA.gov 1-DG-0 - r �v1 r\ o 4- Aes- re,A 5 s 1 Mt- J.u-- 0 ✓ r". Ar ' e & '-- G,,91%,"\c) at-0 A 4- nr.��� � S GGrL / �M('� G�.✓lhC_�-j f ' ('i' i n2 S G'✓�:� �KG' � ` � —`' A 1. c-. N 0,.E c`, t Ll NJ N. 1/ J✓ �� 1, g A J� too �-. I `aRn sus` ,.)C(2c)`4A 1 -'c"(f,N� C�✓�� S /r1-I1 �i.J Y�.e.�K1 !� ; I � C`e_�M.JG�-` I �L (1(�n S , fie- J r t..J 31 `5.1rt-'^^ �'tC p 1 cv✓"� „J g LJ� I Ina w� Nr\t o^ r7J'� 1A.L' g`,� C)es-tom'"-C"'C-S (_a-�` a `�_- - City of Tukwila Planning Commission PLANNING COMMISSION PUBLIC HEARING MINUTES Date: May 24, 2018 Time: 6:30 PM Location: Council Chambers Present: Vice Chair, Dennis Martinez; Commissioners, Miguel Maestas, Mike Hansen, Sharon Mann, Louise Strander, and Heidi Watters Absent: Chair, Nhan Nguyen Staff: Minnie Dhaliwal, Planning Supervisor, and Wynetta Bivens,,.Planning Commission Secretary Adopt Commissioner Watters stated that her recoil ct on was that on page 3 of Minutes: the minutes the applicant said that they would dd>a conifer treNThe.rninutes states they were open to the idea. Commissioner Hansen stated he didTt;femember, and�he could not support.the adjustment without capturing what happened. Additionally, he said either way there was not a condition. CASE NUMBER: APPLICANT: Segale Properties LLC Staff s review of the 3/8/18 recorded or"me ded minutes (ti49.54) confirmed that the applicant stated, "they are open to the'id'ea of adding a significant•conifer tree to the landscaping for the proposed development." Minutes areapprove d with no‘corrections. Mia Nivarro, Community and Engagement Ma agerr,ifoorr the City,of ukwila, gave a presentation on the City's Strategic Plan and the 20"19=20, 0\budget. She explained that the City is working on developing the 2019-2020 budget using a different method, called pno ity-based budgeting. With the new method funds will be allocated based on •Citycprograms andYservices offered. Ms. Nivarro said it is a long and involved process that will take several years to implement fully�The next step the process is to score the programs and services against a set of strategic goals\�_\) The City is revisiting -the rStrategic,Plan goals from 2012, which has five strategic goals. The City wants to ensure the Strategic Plan still reflects the priority and the value of the community. The City currently has a survey available (on-line and in printable forrIkfol'Ahose interested in providing their feedback on the goals. After the feedback is received from the communit?'anNd)employees, information will be compiled, and any recommended adjustments to the Strategic Plan will go through the City Council approval process. The 2019-2020 budget will be developedhbased on the amended goals. Also, there will be more community outreach between now and November 2018'when the buuddgetisis finalized. Vice Chair, Dennis Martinezopened thepublic hearingand swore in those wishingto testify. P fY L18-0032 (Code Amendment) REQUEST: Zoning Code amendments to adopt residential development standards and guidelines for Tukwila South Overly (TSO) zone. LOCATION: Portion of TSO zone that immediately adjoins land located in the City of SeaTac to the east of Interstate 5 3 Minnie Dhaliwal, Planning Supervisor, Department of Community Development, gave the presentation for staff. She provided background on the project, walked the Commission through the proposed amendments and went over the Development Standards such as setbacks, landscaping and the Multi -Family Design Manual. She also went over the recreation space and parking requirements for which the Developer requested the City consider adopting standards different than High Density Residential (HDR) zone. There were two options to consider for both. RECOMMENDATIONS: • For Recreation Space requirements - staff recommended option 2:to adopt standards similar to the City of SeaTac, with a graduated scale depending on the size of the unit: 120 square feet for a studio, 160 square feet for a one -bedroom unit and 200,square feet for 2 plus bedroom units. / • For Parking requirements - Staff recommended option 2: dopt a parking standard similar to the City of SeaTac standard of one stall per studio unit, 1:5 stalls per one -bedroom units and 2 stalls per two or more bedrooms. Staff answered clarifying questions for the Commission. / / !! • \ Nancy Rogers, Landuse Attorney, for the applicant, provided background'on the property and the project. She said it is an integrated site that has a jurisdictional boiindaryyline thro gh the property, between the City of Tukwila, zoned Tukwila South Overlay (TSO), and the City of SeaTac, which is zoned High Density Residential (HDR). The Tukwila portion of thetproject has been reviewed as part of a master plan development agreement process, which allows any -umber of uses including those allowed in HDR. Ms. Rogers said when the TSO was adopted with the Development Agreement the residential design guidelines and residential standardsfor residential development in the,TSO were not adopted. However, • there is a footnote in the codes that states that residential development can happen after residential guidelines and standards are adopted. Therefore the. applicant is requesting approval of the standards and design guidelines similar to those that currently apply in other places in the City and apply them to the two portions of Tukwila South area that immediately_abutsthe SeaTac property. The applicant is asking that the fl,standards for recreation and parking standards, be adapted to make sure they are integrated with SeaTac's standards. /'i f Commissioner Mann and Watters expressed concem with the small amount of recreation space on the • Tukwila portion of the project. The applicant noted, that the project will have open space on both the Tukwila and SeaTac portion of the property, which will exceed market standards and expectations. Mike Pruett, for the applicant, answered clarifying questions and addressed concems for the Commission. Chris Ross, the developer, foi the applicant, also, answered clarifying questions and addressed concerns for the Commission. There were no public comments. The public hearing was closed. DELIBERATION: Page 2 of 3 4 Commissioner Watters stated that she feels the recreation standards should be kept at 400 square feet per unit for the following reasons: to maintain a certain level of canopy; because there aren't other parks nearby; more access for outdoor exercise and mental health for adults. Commissioners Strander, Hansen, Maestas, Martinez, and Mann were all in consensus to support staff s recommendation of option number 2 for recreation space. Commissioner Maestas commented he encourages maximum space utilization for residents. Commissioner Mann commented she hopes the applicant will be accountable and commit to what they have agreed. Commissioner Martinez expressed concerns regarding the parking but said he could probably live with it. Commissioner Mann also expressed concerns with the parking. ,, ' / Recreation Space Requirements: Commissioner Mann made a motion to approve Case Number L-1' 0032, Code Amendment with staff's finding, conclusions, and recommendation for option 2.1Commissioner Hansen seconded the inoti n. Five were in favor. Commissioner Watters opposed. Commission Maestas made a motion to adopt numbers 2, 3,‘Ind 4'under�TMC 18.14.030 to maintain Recreation Space requirements (These include 50% has to be outdoors and 25% has to be for 5-12 year olds). Commissioner Hansen seconded the motion\All,were_in favor. N, Parking Requirements: Commissioner Maestas made a motion to approve Case Number L18=0032, Code Amendment with staff's finding, conclusions, and recommendation for option niuniber'2. Commissioner Hansen seconded the motion. MOTIONS: -.. Five were in favor. Commission Mann opposed. Commissioner Strander made a motion to adopt the profr posed Basic Development Standards and the Multi - Family Design Manual. CommissionerMaestas seconded the motion. All were in favor. N.,; _ DIRECTOIt'S.REPORT: • CommissionerNguyen will give highlights on the APA Conference he attended in April at the next meeting. \\, ''`r,, \"44,� • 'Staff will provide an update for' the Commission on the upcoming agendas. ,`N. -,„ \ \ ADJOURNED: 8:55 PM Submitted by: , •Wynetta Bivens \',�Pla inn ng Commission Secretary Page 3 of 3 5 City of Tukwila Allan Ekberg, Mayor Department of Community Development - Jack Pace, Director STAFF REPORT TO THE PLANNING COMMISSION PREPARED JUNE 19, 2018 FILE NUMBERS: L18-0045 Short Term Rental Code Amendments REQUEST: Review and revise Tukwila's regulations relating to the use of property for the purposes of short term rental, hold a public hearing and make a recommendation to the City Council. LOCATION: City wide PUBLIC NOTICE: Hearing notice was published in the Seattle Times June 14, 2018. A postcard was mailed to/the owners and tenants of LDR Zoned parcels and the owners of MDR and HDR parcels. Emails were sent to the interested parties list, the contacts for Residential Rental Business Licenses and contacts within the short term rental industry. STAFF: Nora Gierloff, Deputy DCD Director Charlotte Archer, City Attorney ATTACHMENTS: A. Tukwila and neighboring jurisdictions' current rental standards B. Policy Brief, City of Seattle Short Term Rental Regulations C. Proposed Amendments to the Tukwila Municipal Code BACKGROUND During the City Council update to accessory dwelling unit (ADU) regulations the Council requested a review of regulation of short-term (defined as a period of Tess than thirty days) residential rentals. This would not include commercial properties used for the purposes of short-term and extended -stay housing, such as motels, hotels, and extended stay motels. This review was intended to focus on the rental of single-family and multi -family residences, as well as ADUs via an online marketplace such as HomeAway, Vacation Rental By Owner ("VRBO") or Air BnB. The intention was to assess the impact of the City's current regulations and determine if new regulations are needed to meet the City's policy goals. Tukwila City Hall • 6200 Southcenter Boulevard • Tukwila, WA 98188 • 206-433-1800 • Website: TukwilaWA.gov 7 L18-0045 Short Term Rental Regulation Update Page 2 Tukwila's current standards for short term rentals1 include the following: • Multi -family dwellings shall not be used for a rental tenancy of Tess than one month. See TMC 18.06.247. • Dormitories defined as "a residential building or use which provides housing for students attending an affiliated school or housing for members of a religious order." See TMC 18.06.237. • Boarding House defined as "a residential building which provides housing on a short-term commercial basis for tenants" is a conditional use in the MDR and HDR zones. See TMC 18.06.073. • Bed and breakfast facilities defined as "an owner occupied dwelling unit that contains guest rooms where lodging is provided for compensation," are permitted in the LDR, MDR and HDR zones as conditional uses (for up to twelve guests), and guests shall be limited to a 14-day maximum length of stay. Tukwila has never received an application for a bed and breakfast conditional use permit. See TMC 18.06.063 and Table 18-6 n.5. There is no restriction on the use of single-family dwellings or mobile homes in mobile home parks as short-term rentals. The draft Accessory Dwelling Unit ordinance currently being considered by the Council prohibits rental of ADUs for less than 30 days. Tukwila's Residential Rental Business License and Inspection Program, codified at Chapter 5.06 of the Tukwila Municipal Code (TMC), establishes an annual rental Iicensure requirement for all "units" intended for rent. Each dwelling unit must be inspected for life safety issues every four years and a Certificate of Compliance is issued by the City for those units that meet all requirements. The code is silent about whether it applies to short-term rentals; in practice, the City has received no rental license applications for short-term rentals. DISCUSSION The issue of whether the use of dwelling units for short-term rental purposes is having a net positive or negative impact on housing affordability and rental stock is currently being debated in many jurisdictions in Washington in light of the dramatic recent growth of the short-term rental industry, as well as the housing crisis in the greater Seattle area. Seattle recently adopted new regulations to prevent property owners from operating large-scale, short-term rentals in a commercial manner, as part of a larger effort to ensure an adequate supply of long-term rental stock for the City's permanent residents. A table comparing Tukwila's current rental standards to neighboring jurisdictions is included as Attachment A. Staff's research and citizen complaints indicate that there is an existing marketplace for the short-term rental of single- and multi -family dwellings in the City. 1 The following are considered outside the scope of this project, as they do not involve the use of a residential dwelling unit for short-term rental purposes: Assisted Living Facilities (TMC 18.06.058); Continuing Care Retirement Communities (TMC 18.06.170); Convalescent/Nursing Homes (TMC 18.06.173); Correctional Institutions, including transitional housing (TMC 18.06.178); Extended -Stay Hotel or Motels (TMC 18.06.287); Hotels (TMC 18.06.440); Motels (TMC 18.06.585); Secure Community Transitional Facilities (TMC 18.06.706); Senior Citizen Housing (TMC 18.06.708); and Shelters (TMC 18.06.743). 8 L18-0045 Short Term Rental Regulation Update Page 3 From a policy perspective, short-term rentals can bring benefits to those who operate them, their visitors, and the surrounding neighborhood. Some homeowners use short-term rentals to help offset the cost of their home, including renting out a room or the entire home. Kent, for example, adopted regulations to allow the rental of ADUs "[t]o make homeownership more affordable because it will be easier to buy both new and existing homes with the help of an accessory dwelling unit." SeaTac likewise currently permits the use of ADUs for rent to "increase opportunities for home ownership and allow older homeowners to remain in their homes and obtain extra income, companionship, and security." Some jurisdictions find that ADUs may increase the supply of affordable rental units and may provide a variety in affordable rental units. Additionally, short-term rentals may provide a greater return on investment for homeowners as short-term rental rates often outpace rates for rentals on a Tong -term basis. For visitors, short-term rentals may cost less than traditional hotels or motels, which in turn provides a means to bring tourists and their spending power to Tukwila. Some jurisdictions who have recently studied the rise in the use of rental properties as short-term rentals have concluded that there are negative impacts to communities throughout Washington. For example, Seattle recently studied the impact short-term rentals had on affordable housing within the City and found that the commercial use of short-term rental platforms (by commercial operators, rather than traditional single-family homeowners) has resulted in the removal of houses, condos and apartments from the long-term housing market. See Attachment B. The significant impact of short-term rentals on affordable housing availability was also the subject of a Harvard Law and Policy Review article2, which concluded: So long as a property owner or leaseholder can rent out a room on Airbnb for cheaper than the price of a hotel room, while earning a substantial premium over the residential market or rent -controlled rent, there is an overpowering incentive to list each unit in a building on Airbnb... In tight housing markets with near -zero vacancy rates, a sudden reduction in supply naturally increases rents, particularly because neither the market nor the public sector can swiftly add to the housing stock. In addition, some jurisdictions have found that some short-term rentals can attract disruptive vacationing visitors to residential areas, which may have a negative impact on property values. A study commissioned by the hotel industry indicated some short-term rentals may have negative impacts on the hotel/motel industry. Short-term commercial rentals are likely subject to the City's business licensure and tax requirements, but they often do not pay thereby circumventing traditional lodging taxes. There is also some evidence in the aforementioned studies that short-term rentals may also contribute to creating a transient community and create an increased parking demand in residential areas. Policy Options 1. Prohibit the use of residentially -zoned property for short-term rentals. 2 Full article available at http://harvardlpr.com/wp-content/uploads/2016/02/10.1 10 Lee.pdf. 9 L18-0045 Short Term Rental Regulation Update Page 4 The City could expand the prohibition on multi -family rentals to include the short-term rental of entire single-family residences, rooms within owner -occupied single-family residences, ADUs, and mobile and manufactured homes in the Low, Medium and High Density Residential Zones. 3 2. Permit the use of residentially -zoned property for short-term rentals, with or without additional restrictions. Alternatively, the City could opt to permit the use of residential dwelling units as short-term rental properties. To accomplish this, the City could expressly grant that right to single-family dwellings (either as entire -house rentals, or partial -house rentals), and remove the prohibition on the use of multi -family dwellings for short-term rental purposes. A. Require owner -occupancy. Some of the negative effects cited by opponents of short term rentals (including but not limited to noise, parking and refuse) may be mitigated by requiring owner -occupancy and prohibiting whole house rentals. This requirement would be similar to the restriction placed on ADUs and would face the same enforcement challenges. This option would prevent units from being removed from the long-term rental market. B. Allow a local property manager in lieu of owner occupancy. Requiring owner -occupancy would require the prohibition of entire -house short-term rentals so another option would be to allow a local property manager to be designated and available to respond to complaints. Kirkland, for example, requires a property manager located within City -limits at all times the property is being used as a short-term rental. C. Place Restrictions on Occupancy, Parking and Quiet Hours. A few jurisdictions in Washington have adopted heightened restrictions on the number of occupants, noise (quiet hours), off-street parking, and other issues in order to address concerns raised by existing short-term rentals. For example, San Juan Island County places a cap on the number of renters at no more than three per bedroom, and requires additional off-street parking for properties used as short-term rentals. To the extent these concerns are documented, the City could utilize these regulations to directly remedy problem -properties utilized as short-term rentals. Ongoing requirements such as additional parking spaces would need to be verified through an inspection process, possibly as part of a licensing procedure. 3 It should be noted that any proposed amendments to the TMC pertaining to the City's existing regulations for short-term rentals will need to heed two concerns that would likely necessitate an exemption from any proposed prohibition on transient accommodations. First, adult family homes (AFH) could arguably be considered residential properties used for rental purposes; however, state law prohibits the City from enacting regulations that put up a road -block to the placement of AFHs in all areas zoned for residential purposes. RCW 70.128.010. Second, the same analysis would likely apply to a residence used to house people with disabilities, including the recovery from a drug addiction. See RCW 36.70.990. 10 L18-0045 Short Term Rental Regulation Update Page 5 Enforcement of occupancy limits would be difficult absent admissions by the properties' owners. Producing evidence to prosecute a violation would require observation by the City's Code Enforcement Officers, likely after-hours. Noise complaints are handled by the Police Department and it may be difficult to enforce stricter regulations than the standards in the existing Noise Ordinance. 3. Permit the use of residential units in mixed use zones for short term rentals. The adjacency of commercial uses may make neighbors in zones such as Neighborhood Commercial Center and Regional Commercial Center less sensitive to noise and parking impacts associated with short term visitors. Any zone that permits hotels and motels would seem to also be appropriate for short term rentals. 4. Require a License to operate a Short -Term Rental. Tukwila requires that businesses, including home occupations, obtain a business license to operate in Tukwila and that landlords obtain an annual rental license for all "units" intended for rent — this is not currently utilized for short-term rental properties. Currently short-term rental operators are not obtaining either license. Incorporating short-term rentals into the Residential Rental Business License and Inspection Program would allow the City to monitor the use of residential properties for this purpose, and to ensure that the subject properties are adequately addressing life safety issues. However, currently the traditional "roommate" arrangement (e.g., long term rental of a single -room within an owner -occupied dwelling unit) is not subject to the City's Residential Rental Business License and Inspection Program; yet the majority of short-term rentals currently advertised in the City involve the short-term rental of a single -room within an owner -occupied dwelling unit. It may make more sense to require home occupation business licenses for short term rentals as they are more closely related to operating a business than an ongoing living arrangement. It may be a challenge to enforce this requirement as the City relies on self -reporting of rental properties in order to achieve compliance, and it is difficult to track -down non -compliant properties but for the complaints received from neighbors. 5. Clean up existing regulations to remove ineffectual provisions. Currently, the City has no permitted Bed and Breakfast facilities. The definition of Bed and Breakfast facility appears to be somewhat antiquated and ineffectual, with the rise of AirBnB and other online alternatives. Staff would recommend removing Bed and Breakfast facility and all related regulations from the TMC. Similarly, the City is aware of a few Boarding Houses within the City and there are ongoing code enforcement complaints relating to un-permitted Boarding Houses in the LDR zoning district (where this use is prohibited). The existing definition of a Boarding House makes this regulation difficult to enforce, given its use of undefined terms like "short-term" and "commercial basis." 11 L18-0045 Short Term Rental Regulation Update Page 6 Similarly, there is no cap on the number of tenants that may reside in one Boarding House, no requirement that the Boarding House is owner -occupied, and there are no other relevant regulations such as higher parking standards. Staff would recommend the amendments to the TMC depicted at Attachment C to address these issues. REQUEST Hold the public hearing on the proposed changes, review each proposed change, and recommend policy options to the City Council. Staff will incorporate these decisions into a draft ordinance for City Council review. Lv ' c k . - jr); St ` D` one-" rd. R \wSs, 1 ,)44-0e• r-- 9c."0 1d..z-vvk - ;0-s t ,1.7 1 \ 0 1 - 4-- 0..10✓�s�-v`G. c �r'��'� � Ve.--. rnn �o.--�'� � o � r•- r�2r ltib� foJ /.� - �re�-A0 ^^c.�. '(moo �- 'CD rM - mac -Vie- AArt-- M '3 7' v\_C-2 D ^ ? ctiDlok .-", — v�✓u v� l i'C ✓L YLrC�' 1M�E,�, L2 A-- c J �,� end (RA', oGciJ G�vL C,T f:%•r.-% 12 M 4 �, f A VA I — 1 ... � -)e.=. / % [ S C1J el Ga J t7 � 1 v` S �� [ ^� , G/i 1� I lVh r ^..,vo—k-C17 n ATTACHMENT A Neighboring Jurisdictions' Regulation of Short -Term Rentals Jurisdiction Single -Family Residences ADUs (Detached or Attached) Multi -Family Residences Licensure Requirements (if any) Relevant Code Citations Tacoma Permitted: (1) may rent the entire dwelling to one family or a group of up to 6 people in all Residential, Commercial, Mixed -Use, and Downtown Districts; (2) may rent 1-2 guest rooms within an owner- occupied dwelling in all Residential Districts, including single- family districts. Permitted, up to 4 people in all Residential, Commercial, Mixed -Use, and Downtown Districts May rent 3-9 guest rooms, after receiving an approved Conditional Use Permit (CUP), in R- 3, R-4L, R-4, R-5, RCX, and NRX Districts (these are generally residential districts that allow duplex, triplex, and multifamily dwellings). Must obtain a Business License; must obtain a Transient Accommodation License if renting 3 or more rooms. TMC 13.06.575 — Short Term Rentals; TMC 13.06.150.C.7 — Short Term Rental in ADUs; TMC 6B.20 — Annual Business License; TMC 6B.140 — Transient Accommodations SeaTac No prohibition, no regulation Permitted, owner- - occupancy requirement and maximum occupancy restrictions (based on size) No prohibition, no regulation N/A SMC Ch. 15.465 Renton No prohibition, no regulation Permitted, with conditional use permit and owner - occupancy. RMC 4-2- 080(A)(7) Kent "Dwelling unit" defined to imply rental of entire unit can be on a weekly, monthly, or longer basis Permitted, owner- occupancy requirement for six months every calendar year. No prohibition, no regulation Business License Required KCC 15.02.130; KCC Ch. 5.14 13 Page 2 Jurisdiction Single -Family Residences ADUs (Detached or Attached) Multi -Family Residences Licensure Requirements (if any) Relevant Code Citations Puyallup Bed and Permitted, PMC 20.20.015; Breakfast owner- PMC House permitted, subject to owner occupancy and occupant cap with conditional use permit) occupancy requirement 20.20.010(11) Sumner Presumably Permitted, No N/A SJC 18.04.0940; permitted (no express prohibition, although restriction that dwelling shall be used for "one family") owner- occupancy requirement and maximum occupancy restrictions (based on size) prohibition SMC 18.10.030 Bothell - Bed and Breakfast facilities permitted in most zones, capped at four bedrooms and subject to parking restrictions and owner - occupancy Permitted, owner - occupancy (for 6 months) required and cap on occupancy BMC 12.06.110 Poulsbo Permitted Prohibited Prohibited None PMC 18.70.070 San Juan Permitted, no Permitted Permitted in "Vacation SJCC 18.40.270 County more than 3' (attached Commercial Rental Permit" guests per bedroom; parking required only), max 3 guests per bedroom; parking required; owner must occupy ADU or primary residence zone only required 'San Juan County Council is currently considering legislation to reduce this to two guests per bedroom. 14 Page 3 Jurisdiction Single -Family Residences ADUs (Detached or Attached) Multi -Family Residences Licensure Requirements (if any) Relevant Code Citations Clyde Hill Permitted, with limits on occupancy, parking, and use (for lodging only, can't be used for events) Permitted, with limitations on occupancy, parking, and use (for lodging only, can't be used for events) Permitted, with limits on occupancy, parking, and use (for lodging only, can't be used for events) Business License Required Ch. 5.20 CHMC Ilwaco Conditional use in single-family, zones with limits on occupancy and parking. Permitted use in certain specified zones Permitted use in certain zones Business License Required Ch. 15.41 IMC Leavenworth Prohibits use of entire dwellings as vacation rentals; permits short-term rental of a portion of a home when the property owner lives on -site throughout the visitor's stay with appropriate permits, including a business license Permitted, subject to owner- occupancy requirement and permitting Prohibited Business ; License Required LMC 18.52.120 Westport Permitted, subject to occupancy cap, parking and other standards Permitted, but only 1 vacation rental unit per "property" Prohibited Business License Required Ch. 17.22 WMC 15 i") Q REGULATING SHORT TERM RENTALS POLICY BRIEF OFFICE OF COUNCILMEMBER TIM BURGESS SEATTLE CITY COUNCIL Please Direct Questions to Seferiana Day / Office of Councilmember Tim Burgess seferiana.day@seattle.gov / 206-684-8806 / 600 4th Ave . 2nd Floor . Seattle, WA 98104 UPDATED APRIL 2017 ATTACHMENT B G .\ , v King County u �iR n.rironM Airport 1q �� t • •s r•• • .• e • • • • ; • :•. 4 • ; • • .•*•• . • • f • •• • •• • •• • • „• • • •! v 10. • • I • • t: t• • • • • •tilJ•.. • . • •• ': • •. •• •. • Estimated AirBnB rental reviews in Seattle in July 2013 (top) and July 2015 (bottom). Data from insideairbnb.com Introduction For many years, short term home rentals have been a popular lodging choice for travelers in Europe and certain high volume tourist destinations in the United States. With the advent of technology -based online platforms that facilitate the marketing and booking of short term rentals, this market has rapidly expanded across the globe. One need only look at the rise of two of the major companies in the short term rental industry to view the incredibly fast pace of growth. Airbnb received its first $20,000 seed grant in 2009.1 In December 2015, less than seven years later, the company confirmed a round of $1.5 billion in venture capital funding, bringing its total valuation up to $25.5 billion.2 Its website now touts more than 2 million listings available in 34,000 cities across 191 countries.3 HomeAway, another vacation rental company that includes the website VRBO.com (Vacation Rentals by Owner), launched in 2006 and also grew rapidly; the company's website states its annual revenue increased 28.9% in 2014 over the prior year.4 Previously a publicly traded company on the NASDAQ exchange, Homeaway was acquired by Expedia in late 2015 for $3.9.billion, a price nearly 20% higher than its market value at that point.5 It currently offers more than 1 million listings in 190 countries.° No evidence suggests that the growth of this industry in Seattle is any different. While Seattle -specific data has not been made publicly available by major players in the short term rental marketplace, external websites scrub Airbnb listings data and aggregate the information for market analysis. These websites show recent rapid growth in the number of listings.' Airbnb states on its website, "The number of guests using Airbnb has grown steadily since 2009, with visitation more than doubling every year." 2 18 "My landlord is a nice guy, he has kept the rent relatively reasonable for me and my partner, but he's recently informed us we will need to leave in a few months because he wants to rent out the property on Airbnb." -K., Seattle resident Benefits and Challenges of Short Term Rentals Short term rentals bring numerous benefits to those who operate them, their visitors, and the surrounding neighborhood. Many individuals use short term rentals as a way to help afford their own home, either renting out a basement, a spare room, or the entire home when they are out of town themselves. In a housing market that presents affordability challenges, there is no doubt short term rentals alleviate the housing burden for the many families that operate them. For visitors, short term rentals often offer a more affordable option. Short term rentals bring tourists, wedding parties, visiting family members and their collective spending power to neighborhoods across Seattle. Airbnb recently estimated the economic impact of its visitors in Seattle was $178 million from August 2014 to July 2015, supporting 1,700 jobs.8 At the same time, the more commercial use of short term rental platforms has taken entire houses, condos and apartments off of the long term housing market. One external website estimates that roughly one-third of Airbnb's listings in Seattle are from hosts with multiple listings. These could be multiple rooms in a house or completely separate units; hosts with multiple listings are more likely to be commercial operators not renting portions of their own primary residence.9 A recent report published by CBRE Hotels' American Research found that 79 percent of Airbnb's revenue in Seattle comes from entire home listings and the revenue generated by hosts with multiple entire -home listings increased by 183 percent between 2015 and 2016.10 Commercial enterprises utilizing online rental platforms to market multiple units in multiple locations further exacerbate the housing crisis facing Seattle. Without regulation, this practice could continue to rapidly expand. As a 3 19 G Any strategy the City can pursue to put more units into the long term market is worth examination. recent Harvard Law and Policy Review article explains, "So long as a property owner or leaseholder can rent out a room on Airbnb for cheaper than the price of a hotel room, while earning a substantial premium over the residential market or rent -controlled rent, there is an overpowering incentive to list each unit in a building on Airbnb... In tight housing markets with near -zero vacancy rates, a sudden reduction in supply naturally increases rents, particularly because neither the market nor the public sector can swiftly add to the housing stock" 11 The extent of Seattle's housing crisis is well known. Lower income renters are being pushed further from the center city as prices rise; home buyers face an extreme lack of options and strong competition for every purchase offer. In 2015, Mayor Murray's Housing Affordability and Livability Agenda (HALA) taskforce put forward recommendations to achieve his goal of 50,000 new units of housing over the next 10 years, with 20,000 of these units designated as affordable. Short term rentals are not the leading cause of the severe shortage of housing (at all levels of affordability), but they have exacerbated an existing crisis. Any strategy the City can pursue to put more units into the long term market is worth examination. One of the recommendations from the HALA taskforce focused on short term rentals. Specifically, the taskforce recommended that the City pursue collecting taxes on this activity and dedicating those tax dollars to affordable housing. Currently, the City lacks the taxing authority to implement this recommendation. The sales tax is collected by the State and the hotel -motel tax in Washington is revenue carved out from the State's portion of the sales tax and remitted to local jurisdictions; state law dictates how this revenue can be spent. Facing this lack of options for new taxing authority, we have focused on regulatory actions that would align with the HALA goal of putting more units into the long term market. "The only unit I have rented through a short term rental service, Airbnb, has been my primary residence, a single family home located in an SF 5000 zone. I utilize the service for times when I will be on vacation, and my rental days have never exceeded thirty days per year." - G., landlord and AirBnB host 4 20 While secondary to the housing concern, short term rentals also pose challenges to a fair economic playing field in the vacation market as it is unclear how many operators apply for the necessary business license and pay all applicable taxes. Further, many neighbors of units that have been converted to short term rentals raise legitimate questions about neighborhood livability. Regulatory Systems in Other Cities A review of the regulatory approach taken by other jurisdictions reveals a wide range of regulatory responses. On one end of the spectrum, some jurisdictions have focused exclusively on collecting the appropriate taxes that apply to short term rental transactions. On the other end, cities ranging from New York City to Santa Monica have enforced much stricter regulations; in New York City, apartments cannot be rented out for less than 30 days. Per a new law in Santa Monica, short term rental operators will have to live on the property during any short term rental stay. Other cities have attempted to find a middle ground. Philadelphia allows for short term rentals up to 90 cumulative days a year without a permit, requires a permit and owner occupancy of the unit for rentals from 90-180 cumulative days a year, and prohibits short term rentals for more than 180 cumulative days a year. San Jose allows short term rentals of up to 180 days a year without a host present and year-round with a host present. Both cities were cited by Airbnb's Public Policy Team as positive examples for Seattle to explore. 5 Taxation and Regulatory Context in Seattle Short term rental transactions currently operate outside of a solid regulatory framework in Seattle. Any person providing lodging services is required to collect and remit retail sales tax, meaning that anyone who offers their home or a portion of their home for short term rental should be paying this tax. Airbnb recently announced an agreement with the Washington State Department of Revenue to pay sales tax on behalf of its hosts, but it is unclear how many other owners pay the retail sales tax (9.6% in Seattle) on their units if they are not offering the units through Airbnb's website. "Last year a [neighboring townhouse] unit was sold.... One neighbor found that the owner is now renting out all three bedrooms in the house and apparently runs it as an AirBnB.... When I mentioned this to a couple of friends living in other parts of the city two of them said they were aware of similar situations in their areas." -E., concerned neighbor The Convention and Trade Center tax (15.6% when combined with sales tax) only applies to lodging businesses with 60 or more units. The sales tax is the only applicable tax to a short term rental transaction, because the basic hotel/motel tax in Washington State is collected as part of the state's portion of the sales tax and then remitted to local jurisdictions. The vast majority of short term rental operators do not have business licenses, which are currently required . While most if not all short term rental operators would fall under the Business and Occupation Tax minimum threshold of $100,000 in gross revenue, they are still required to get a license and report their revenue. With the exception of Bed and Breakfasts, commercial lodging (hotels and motels) are not allowed in residential zones. In single family zones, bed and breakfasts are allowed with conditions 6 22 outlined in Seattle Municipal Code 23.44.051. They must have a business license, adhere to dispersion requirements, establish quiet hours, must be operated by the principal owner and the owner must live on site, must notify neighbors, have limited signage, and meet parking requirements. In multifamily zones, bed and breakfasts have similar but slightly less restrictive requirements (SMC 23.45.545G). Regulatory Role for Government While some elements of the current short term rental market are novel, including the technology and the flexibility it offers, many aspects of this market are simply business operations. The City has always played a regulatory role when it comes to business and determining what level of operations is appropriate in residential areas. Any City government regulations should support one of these three goals: O • Balance the economic opportunity created by short term rentals with the need to maintain supply of long-term rental housing stock available at a range of prices. Ensure a level playing field for individuals and companies in the short term rental market. Protect the rights and safety of owners, guests and neighbors of these units. As explained in the Benefits and Challenges section, the first goal is the most pressing for Seattle City government. The primary elements of the regulatory scheme proposed below were built to address this issue. At the same time, the proposed regulations also either directly or indirectly support the second and third goals. Primary goal Providing economic opportunity while maintaining rental housing stock 0 7 23 Proposed Regulations for Seattle Short Term Rental Operators With any regulation, one must start by defining the activity being regulated. In this case, we are defining short term rentals as any stays of 29 nights or fewer in duration. Stays longer than 29 nights in duration would not be subject to this proposal or be part of any cumulative short term rental stay calculations. We believe any stays of 30 nights or more fill a need in our housing market for households in transition. One benefit of the technology that facilitates the marketing and booking of short term rentals is that it expanded this niche in the housing market. Requirements Primary Residence Not Primary Residence Short term rental operator resides Short term rental operator resides on -site off -site Business License Existing Requirement Short Term Rental Operator's License New Requirement Business License Existing Requirement Short Term Rental Operator's License Nc.w Requirement Limited to 1 dwelling unit in addition to the operator's primary residence located in the City of Seattle New Requirement 8 24 The basic proposed framework for short term rentals in Seattle would look like this: You will be : 1. limited to renting your primary residence (including an in-law unit or backyard cottage associated with your primary residence) and a maximum of one additional dwelling unit and 2. required to register with the City and get a new Short Term Rental Operator license as well as a business license, an existing requirement. You will also be subject to a few more standards, including providing: • proof that the unit is your primary residence, • the license number on any short term rental listing, • a local contact number for guests, and • a signed declaration that the unit is up to code This proposed limit on the number of units is designed to meet the goal of maintaining our long term housing supply. This requirement will impact those who use these platforms commercially, not homeowners trying to make a little extra income on the side. The proposal would allow an exception to the proposed limits for operators of existing short-term rentals located in the Downtown, South Lake Union, and Uptown Urban Centers (areas where many of the City's lodging uses are located) while not allowing this commercial activity to expand. We also propose leveling the regulatory playing field for traditional bed and breakfasts, which still operate under regulations from the pre -online short term rental era. By lessening some the regulatory burden they currently face, the City can bring traditional bed and breakfasts in line with the new regulations for short term rentals. v The affected operators will be those who use these platforms commercially, not homeowners trying to make a little extra income on the side. 9 25 A Summary of New Regulations Facing Operators Regulations / requirements Operator's primary Operator resides residence off -site Applicable policy goal Title 5 Business License (existing requirement) Pay all applicable taxes (existing requirement) Prohibit evidence of STR use from exterior for except for signs as permitted by the sign code x x x x 00 00 xO Limit # of units to the primary residence and one additional dwelling unit x Provide proof that the dwelling unit offered for short term rental x NA is their primary residence Provide a local contact to all guests Require operators declare that the unit meets the requirements of the Housing and Building Maintenance Code Require posting of basic safety information for guests within rental units x x x x • • 0 0 0 10 26 Proposed Regulations for Seattle Short Term Rental Platforms After surveying practices in other jurisdictions, it became clear that receiving data from the online platform companies is vital to an effective enforcement structure. In order to facilitate the enforcement, the City will need to collect basic information from the Short Term Rental Platforms like VRBO or Airbnb. To do so, these companies will need to register for a new regulatory license with the City. "I am a residential cleaner and have cleaned for several Airbnb renters and have thought for a very long time that this was severely adding to the housing problem in our city. I find it unfair how people could sit on empty apartments and rent them out for income while my friends, who are willing to pay a monthly rent, can't find an affordable apartment in the city." -S., residential cleaner The only requirements for the license will be a) to provide information about Seattle's regulations to operators using the platform b) to share basic data with the City on a quarterly basis, including the total number of short term rentals listed on the platform and the total number of nights each listing was rented through the short term rental platform and c) provide hooking services only with operators who have been issued a short-term rental operator's license. G C G -r v G Concluding Remarks and Comments on Equity Inevitably, no citywide policy can best meet the individual needs of every short term rental operator. The proposed regulations detailed above attempt to strike a balance that recognizes both the,benefits and challenges offered by short term rentals. They also attempt to focus on this issue through an equity -based lens: while there are a variety of stakeholders and interests in this area, those looking for an affordable home in this city are more in need of supportive local government intervention than those offering their second (or third or fourth) homes to out-of-town visitors. After these regulations are translated into legislation, they will be vetted through the full public process of the City Council, where input is eagerly accepted and further revisions robustly debated. Endnotes http://techcrunch.com/2009/03/04/y-combinators-airbed-and- breakfast-casts-a-wider-net-for-housing-rentals-as-airbnb/ 2http://www.wired.com/2015/12/airbnb-confirms-1-5-billion-funding- round-now-valued-at-25-5-billion/ 3https://www.airbnb.com/about/about-us https://www.homeaway.com/info/media-center/presskit Shttp://www.nytimes.com/2015/11/05/business/dealbook/expedia-to- acquire-homeaway-for-3-9-billion.html?_r=0 'Thttps://www.homeaway.com/info/about-us 'See https://www.airdna.co/sample/us/washington/seattle or http:// insideairbnb.com/get-the-data.html 8http://blog.airbnb.com/economicimpactsinseattle/ 'http://insideairbnb.com/seattle/ 10 https://www.ahla.com/sites/default/files/CBRE_AirbnbStudy_2017. pdf 11 http://harvardlpr.com/wp-content/uploads/2016/02/10.1_10_Lee.pdf 28 ATTACHMENT C Proposed Amendments to the Zoning Code Pertaining to Short -Term Rentals 18.06.063 Bed-and-vrcak Gt Ledgng 18.06.073 Boarding House "Boarding house" means a residential building er-use designed to contain one dwelling unit, which provides housing o a short term commercial baGis for more than one tenants, pursuant to more than one Lease Agreement, for compensation. Boarding houses are prohibited in all zones. The following uses are excluded not considered a boarding house: Bed and break ast f cilitie hotels and motels, extended -stay hotels or motels, shelters,_and facilities which provide short- or long-term care for tenants suffering from physical, mental or other disabilities, Assisted Living Facilities, Convalescent/Nursing Homes, Correctional Institutions, Diversion Facilities, and Diversion Interim Services Facilities. 18.06.248 Dwelling, Single -Family "Single-family dwelling" means a building, modular home or new manufactured home, designed to contain no more than one dwelling unit. A single-family dwelling may include, plus one accessory dwelling unit. 18.06.249 Dwelling Unit "Dwelling unit" means the whole of a structure or building, or a portion thereof, providing complete housekeeping facilities for a group of individuals living together as a single residential community, with one kitchen, one or more sleeping rooms, and bathroom facilities containing a toilet, and a shower and/or bathtub, may-be-iii-the-saine-staietute, 18.60.XXX Transient accommodations. "Transient accommodations" means the rental of any residential building or portion thereof used for the purpose of providing lodging for periods of less than 30 days, for compensation. [Single-family dwellings, accessory dwelling units, and multi -family dwellings shall not be used for transient accommodations.] This prohibition does not apply to Assisted Living Facilities, Convalescent/Nursing Homes, Correctional Institutions, Diversion Facilities, and Diversion Interim Services Facilities, Shelters. TMC Ch. 18, Table 18-6 29 �n. -^ 0 `-"-. _-- and -'------' --------, p'-.'--_ _ the ---'-g_-'-_ most - - on site, _ -_maximum number- of residents, either- pefmanent er- temper-afy, at any one time is twelve, e. twe site par -king spaees fer the eA%er- and permanent Fesidents and ene additieflal efi site paf-!EiRg Spa - I 0 30 i.- 4.1 City of Tukwila Allan Ekberg, Mayor Department of Community Development - Jack Pace, Director STAFF REPORT TO THE PLANNING COMMISSION PREPARED AUGUST 6, 2018 FILE NUMBERS: L18-0045 Short Term Rental Code Amendments REQUEST: Review and revise Tukwila's regulations relating to the use of property for the purposes of short term rental, and make a recommendation to the City Council. LOCATION: City wide PUBLIC NOTICE: mailed-t=o-the-owner-s and t-en {1fl•Bf-a1nd-Hf)R-payee s.. Emails were sent to the interested parties list, the contacts for Residential Rental Business Licenses and contacts within the short term rental industry. STAFF: Nora Gierloff, Deputy DCD Director Charlotte Archer, City Attorney ATTACHMENTS: Appendix 1—Table of Policy Options A. Tukwila and neighboring jurisdictions' current rental standards. B. a ulatio s C. Proposed Amendments to Title 18 of the Tukwila Municipal Code, pertaining to Zoning D. Proposed Amendment to Chapter 5.06 of the Tukwila Municipal Code, pertaining to Residential Rentals BACKGROUND During the City Council update to accessory dwelling unit (ADU) regulations the Council requested a review of regulation of short-term (defined as a period of less than thirty days) residential rentals. This would not include commercial properties used for the purposes of short-term and extended -stay housing, such as motels, hotels, and extended stay motels. This review was intended to focus on the rental of single-family and multi -family residences, as well as ADUs via an online marketplace such as HomeAway, Vacation Rental By Owner ("VRBO") or Air BnB. The intention was to assess the impact of the City's current regulations and determine if new regulations are needed to meet the City's policy goals. Tukwila City Hall • 6200 Southcenter Boulevard • Tukwila, WA 98188 • 206-433-1800 • Website: TukwilaWA.gov L18-0045 Short Term Rental Regulation Update Page 2 Tukwila's current standards for short term rentals' include the following: • Multi -family dwellings shall not be used for a rental tenancy of Tess than one month. See TMC 18.06.247. • Dormitories defined as "a residential building or use which provides housing for students attending an affiliated school or housing for members of a religious order." See TMC 18.06.237. • Boarding House defined as "a residential building which provides housing on a short-term commercial basis for tenants" is a conditional use in the MDR and HDR zones. See TMC 18.06.073. • Bed and breakfast facilities defined as "an owner occupied dwelling unit that contains guest rooms where lodging is provided for compensation," are permitted in the LDR, MDR and HDR zones as conditional uses (for up to twelve guests), and guests shall be limited to a 14-day maximum length of stay. Tukwila has never received an application for a bed and breakfast conditional use permit. See TMC 18.06.063 and Table 18-6 n.5. There is no restriction on the use of single-family dwellings or mobile homes in mobile home parks as short-term rentals. The draft Accessory Dwelling Unit ordinance currently being considered by the Council prohibits rental of ADUs for less than 30 days. Tukwila's Residential Rental Business License and Inspection Program, codified at Chapter 5.06 of the Tukwila Municipal Code (TMC), establishes an annual rental licensure requirement for all "units" intended for rent. Each dwelling unit must be inspected for life safety issues every four years and a Certificate of Compliance is issued by the City for those units that meet all requirements. The code is silent about whether it applies to short-term rentals; in practice, the City has received no rental license applications for short-term rentals. DISCUSSION The issue of whether the use of dwelling units for short-term rental purposes is having a net positive or negative impact on housing affordability and rental stock is currently being debated in many jurisdictions in Washington in Tight of the dramatic recent growth of the short-term rental industry, as well as the housing crisis in the greater Seattle area. Seattle recently adopted new regulations to prevent property owners from operating large-scale, short-term rentals in a commercial manner, as part of a larger effort to ensure an adequate supply of Tong -term rental stock for the City's permanent residents. A table comparing Tukwila's current rental standards to neighboring jurisdictions is included as Attachment A. Staff's research and citizen complaints indicate that there is an existing marketplace for the short-term rental of single- and multi -family dwellings in the City. ' The following are considered outside the scope of this project, as they do not involve the use of a residential dwelling unit for short-term rental purposes: Assisted Living Facilities (TMC 18.06.058); Continuing Care Retirement Communities (TMC 18.06.170); Convalescent/Nursing Homes (TMC 18.06.173); Correctional Institutions, including transitional housing (TMC 18.06.178); Extended -Stay Hotel or Motels (TMC 18.06.287); Hotels (TMC 18.06.440); Motels (TMC 18.06.585); Secure Community Transitional Facilities (TMC 18.06.706); Senior Citizen Housing (TMC 18.06.708); and Shelters (TMC 18.06.743). L18-0045 Short Term Rental Regulation Update Page 3 From a policy perspective, short-term rentals can bring benefits to those who operate them, their visitors, and the surrounding neighborhood. Some homeowners use short-term rentals to help offset the cost of their home, including renting out a room or the entire home. Kent, for example, adopted regulations to allow the rental of ADUs "[t]o make homeownership more affordable because it will be easier to buy both new and existing homes with the help of an accessory dwelling unit." SeaTac likewise currently permits the use of ADUs for rent to "increase opportunities for home ownership and allow older homeowners to remain in their homes and obtain extra income, companionship, and security." Some jurisdictions find that ADUs may increase the supply of affordable rental units and may provide a variety in affordable rental units. Additionally, short-term rentals may provide a greater return on investment for homeowners as short-term rental rates often outpace rates for rentals on a Tong -term basis. For visitors, short-term rentals may cost Tess than traditional hotels or motels, which in turn provides a means to bring tourists and their spending power to Tukwila. Some jurisdictions who have recently studied the rise in the use of rental properties as short-term rentals have concluded that there are negative impacts to communities throughout Washington. For example, Seattle recently studied the impact short-term rentals had on affordable housing within the City, and found that the commercial use of short-term rental platforms (by commercial operators, rather than traditional single-family homeowners) has resulted in the removal of houses, condos and apartments from the long-term housing market. See Attachment B. The significant impact of short-term rentals on affordable housing availability was also the subject of a Harvard Law and Policy Review article2, which concluded: So long as a property owner or leaseholder can rent out a room on Airbnb for cheaper than the price of a hotel room, while earning a substantial premium over the residential market or rent -controlled rent, there is an overpowering incentive to list each unit in a building on Airbnb... In tight housing markets with near -zero vacancy rates, a sudden reduction in supply naturally increases rents, particularly because neither the market nor the public sector can swiftly add to the housing stock. In addition, some jurisdictions have found that some short-term rentals can attract disruptive vacationing visitors to residential areas, which may have a negative impact on property values. A study commissioned by the hotel industry indicated some short-term rentals may have negative impacts on the hotel/motel industry. Short-term commercial rentals are likely subject to the City's business licensure and tax requirements, but they often do not pay thereby circumventing traditional lodging taxes. There is also some evidence in the aforementioned studies that short-term rentals may also contribute to creating a transient community and create an increased parking demand in residential areas. 2 Full article available at http://harvardlpr.com/wp-content/uploads/2016/02/10.1 10 Lee.pdf. L18-0045 Short Term Rental Regulation Update Page 4 Policy Options Again, the City currently prohibits the use of multifamily properties (including duplexes, triplexes, townhouses, apartments and condominiums) for short term rental purposes. The City currently permits (by a lack of regulation) the use of single family residential properties for short term rental purposes. Moving forward, the City can take a wide variety of approaches on this topic, the benefits of which are discussed below. The following matrix is intended to flag the "levers" the City can move on this topic, in order to formulate a policy that best serves the City of Tukwila. 3 A table with all of these options combined to aid the Planning Commission's analysis is attached hereto as Appendix 1. 1. Issue One: Permitting the Use of Residential Properties for Short Term Rental Purposes. The threshold question on this topic is whether the City would like to permit any residential properties to serve as short term rentals. Per direction from the Planning Commission, the following three options represent three alternative approaches on this topic: Topic Option 1 (Status Quo) Option 2 Option 3 (Most Permissive) To allow short term For SFR only For SFR plus duplexes All residential rentals... and tri-plexes, in mixed use zones and residential zones adjacent to commercial zones (but not condominiums and apartments) properties (SFR and Multifamily, excluding manufactured homes and RVs in lawfully established RV/Manufactured home parks) The City could maintain the status quo by expressly permitting the use of single-family residences for short-term rental purposes. An alternative discussed at a recent meeting of the Planning Commission would be to allow short term rentals for single-family residences, as well as some multifamily properties, such as duplexes and triplexes in the Low, Medium and High Density Residential Zones. Alternatively, the City could opt to permit the use of all residential dwelling units as short-term rental properties. To accomplish this, the City could expressly grant that right to single-family dwellings (either as entire -house rentals, or partial -house rentals), and remove the prohibition on the use of multi -family dwellings for short-term rental purposes. Depending upon the Planning Commission's policy guidance, the following proposed code language would be inserted into the TMC: 3 It should be noted that any proposed amendments to the TMC pertaining to the City's existing regulations for short-term rentals will need to heed two concerns that would likely necessitate an exemption from any proposed prohibition on transient accommodations. First, adult family homes (AFH) could arguably be considered residential properties used for rental purposes; however, state law prohibits the City from enacting regulations that put up a road -block to the placement of AFHs in all areas zoned for residential purposes. RCW 70.128.010. Second, the same analysis would likely apply to a residence used to house people with disabilities, including the recovery from a drug addiction. See RCW 36.70.990. fcr L18-0045 Short Term Rental Regulation Update Page 5 18.60.XXX Transient accommodations. "Transient accommodations" means the rental of any residential dwelling unit or portion thereof used for the purpose of providing lodging for periods of less than 30 days, for compensation. Single-family dwellings, accessory dwelling units, and multi -family dwellings shall not be used for transient accommodations. This prohibition does not apply to Assisted Living Facilities, Convalescent/Nursing Homes, Correctional Institutions, Diversion Facilities, Diversion Interim Services Facilities, Shelters, and Dormitories. 2. Issue Two: Requiring a Permit for the Operation of a Short Term Rental. A second issue for the Planning Commission's consideration is whether those who operate a short term rental should be subjected to a permitting requirement, akin to the owners and operators of long term rentals. Per direction from the Planning Commission, the following three options represent three alternative approaches on this topic: Topic Option 1 (Status Quo) Option 2 Option 3 (Most Permissive) To require a permit for None Residential Rental Business License the use of a residential property as a short term rental (for non- owner occupied properties)... Housing Permit (similar to a Home Occupation Business License) To require a permit for None Residential Rental Business License the use of a residential property as a short term rental (for all short term rental properties, including the rental of a room in an owner -occupied dwelling unit)... Housing Permit (similar to a Home Occupation Business License) Currently, Tukwila requires that businesses, including home occupations, obtain a business license to operate in Tukwila and that landlords obtain an annual rental license for all "units" intended for rent — this is not currently utilized for short-term rental properties. Currently short-term rental operators are not obtaining either license. Incorporating short-term rentals into the Residential Rental Business License and Inspection Program would allow the City to monitor the use of residential properties for this purpose, and to ensure that the subject properties are adequately addressing life safety issues. However, currently the v L18-0045 Short Term Rental Regulation Update Page 6 traditional "roommate" arrangement (e.g., long term rental of a single -room within an owner -occupied dwelling unit) is not subject to the City's Residential Rental Business License and Inspection Program; yet the majority of short-term rentals currently advertised in the City involve the short-term rental of a single -room within an owner -occupied dwelling unit. It may make more sense to require home occupation business licenses for short term rentals as they are more closely related to operating a business than an ongoing living arrangement. It may be a challenge to enforce this requirement as the City relies on self -reporting of rental properties in order to achieve compliance, and it is difficult to track -down non -compliant properties but for the complaints received from neighbors. 3. Issue Three: Owner -Occupancy for the Operation of a Short Term Rental. A third issue for the Planning Commission's consideration is whether to require an owner of a short term rental to occupy the dwelling unit during the period the unit is being rented. Per direction from the Planning Commission, the following three options represent three alternative approaches on this topic: Topic Option 1 (Status Quo) Option 2 Option 3 (Most Permissive) Owner -occupancy... No requirement Require owner- Require owner - (But multiple bedrooms occupancy for the use occupancy for all short - may not be of the following as term rentals (thereby simultaneously rented short term rentals: prohibiting the use of under separate lease ADUs, Duplexes and whole house/dwelling agreements, akin to a Boarding House) Triplexes unit for short term rental purposes) Alternative: Requiring a No requirement Require a local Require a local local (within 5 miles) property manager property manager property manager at residing within 5�niles residing within 5 miles all times property is used as short-term of the property, available 24 hours a of the property, available 24 hours a rental... day at all times property is used as a short-term rental (and identified to the City with contact information) day at all times property is used as a short-term rental (and identified to the City with contact information) Some of the negative effects cited by opponents of short term rentals (including but not limited to noise, parking and refuse) may be mitigated by requiring owner -occupancy at all times during a period of rental, which would result in the prohibition of whole house and entire dwelling unit short term rentals. Other cities have taken a Tess strict approach, requiring owner occupancy in certain settings (e.g., the rental of an attached or detached ADU or multifamily properties), so as to permit the use of a single-family residences for whole house rentals as well as short-term bedroom rentals. L18-0045 Short Term Rental Regulation Update Page 7 An alternative to requiring owner -occupancy would be to allow a local property manager to be designated and available to respond to complaints. Kirkland, for example, requires a property manager located within City -limits at all times the property is being used as a short-term rental. 4. Issue Four: Restrictions on Occupancy, Parking and Quiet Hours. There are additional issues pertaining to the impacts to neighboring properties often attributable to the use of residential properties for short term rental purposes, including placing limitations on the number of occupants, requiring additional off-street parking, and the imposition of quiet hours. The following alternatives represent options for the Planning Commission to consider on these topics: Topic Option 1 (Status Quo) Option 2 Option 3 (Most Permissive) Limitation on occupancy... No limitation (But multiple bedrooms may not be simultaneously rented under separate lease agreements, akin to a Boarding House) Limit number of renters to two (2) per lawfully established bedroom (number of bedrooms as permitted for occupancy) No limitation Additional parking required... No additional parking required (except for ADU, which requires an additional space) Require one additional off-street parking space for all properties utilized as short term rental No additional parking required Quiet hours... No limitation beyond those currently in the code pertaining to nuisance noises Set quiet hours from 10pm to 7am, limiting outdoor noise attributable to rental property No limitation specific to short term rentals A few jurisdictions in Washington have adopted heightened restrictions on the number of occupants, noise (quiet hours), off-street parking, and other issues in order to address concerns raised by existing short-term rentals. For example, San Juan Island County places a cap on the number of renters at no more than three per bedroom, and requires additional off-street parking for properties used as short-term rentals. To the extent these concerns are documented, the City could utilize these regulations to directly remedy problem -properties utilized as short-term rentals. Ongoing requirements such as additional parking spaces would need to be verified through an inspection process, possibly as part of a licensing procedure. Enforcement of occupancy limits would be difficult absent admissions by the properties' owners. Producing evidence to prosecute a violation would require observation by the City's Code Enforcement L18-0045 Short Term Rental Regulation Update Page 8 Officers, likely after-hours. Noise complaints are handled by the Police Department and it may be difficult to enforce stricter regulations than the standards in the existing Noise Ordinance. 5. Additional Code Amendments Proposed. The Tukwila Municipal Code currently contains provisions regarding properties used for short term rental purposes, such as bed and breakfast facilities and boarding houses, which are antiquated and ineffectual. Staff suggests making the following amendments to address these issues. a. Removing "Bed and Breakfast" as a Permitted Use. Currently, the City has no permitted Bed and Breakfast facilities. The definition of Bed and Breakfast facility appears to be somewhat antiquated and ineffectual, with the rise of AirBnB and other online alternatives. As this is use is not utilized by the citizens, and could create confusion with the proposed regulations for bed and breakfast facilities as stated herein, staff would recommend removing Bed and Breakfast facility and all related regulations from the TMC, as depicted here: dad 8 kfast Lodging TMC Ch. 18, Table 18-6 (at Pg. 8)-5. Bed' and breakfast facilities ,idcd: a. thc manager/owner must live on site, b. thc maximum number of two en -site -parkin.. < c for the a nd permanent . sidcnt and to customers, d. the maximum length of continuous stay by a guest is 14 b. Modifying the definition of "Boarding House" so as to clearly prohibit them in all zones. The City is aware of a few unpermitted Boarding Houses within the City and there are ongoing code enforcement complaints relating to unpermitted Boarding Houses in the LDR zoning district (where this use is prohibited). The existing definition of a Boarding House makes this regulation difficult to enforce, given its use of undefined terms like "short-term" and "commercial basis." Similarly, there is no cap on the number of tenants that may reside in one Boarding House, no requirement that the Boarding House is owner -occupied, and there are no other relevant regulations such as higher parking standards. Per the Planning Commission's instruction, staff would recommend the following amendment to the TMC to clearly prohibit these from operation within the City: 18.06.073 Boarding House "Boarding house" means a fesklefitial building arse designed to contain one dwelling unit, which provides housing on a short term commercial L18-0045 Short Term Rental Regulation Update Page 9 basis for more than one tenants, pursuant to more than one Lease Agreement, for compensation. Boarding houses are prohibited in all zones. The following uses are excluded not considered a boarding house: , hotels and motels, extended -stay hotels or motels, shelters, and facilities which provide short- or long-term care for tenants suffering from physical, mental or other disabilities, Assisted Living Facilities, Convalescent/Nursing Homes, Correctional Institutions, Diversion Facilities, Diversion Interim Services Facilities, and Dormitories. c. Adopt Related Amendments to the Residential Rental Business License and Inspection Program, Codified at Ch. 5.06 TMC. The aforementioned decisions will likely impact the City's regulations for residential rentals and the permitting requirements thereof, set out in Ch. 5.06 TMC. In addition, as part of this review, Staff identified inconsistencies between operational definitions in TMC 5.06.020 and Ch. 18.06 TMC pertaining to residential structures and uses. Depending upon whether the Planning Commission elects to require a permit under this program for short-term rentals, staff will make recommendations to the TMC to address these issues. However, the following modifications are proposed to remedy existing shortcomings with the Ch. 5.06 TMC, subject to modification depending upon the City Council's policy directive on short term rentals: 5.06.020 Definitions XX. "Dwelling unit" as used herein means the same as defined at TMC 18.06.249. XX. "Multi -family residence" means a building designed to contain two or more dwelling units, including but not limited to duplexes, tri-plexes, four- piexes, apartment buildings, condominiums, oCfownhouses) 11. "Occupant" means an individual, partnership, corporation or association, or agent of any of them lawfully residing in a rental unit. 12. "Owner" means the owner of record as shown on the last King County tax assessment roll or such owner's authorized agent XX. "Rental or Lease Agreement" means all agreements, whether written or oral, which establish or modify the terms, conditions, rules, regulations, or any other provisions concerning the use and occupancy of a dwelling unit or a portion thereof. 14. "Rental unit" means a dwelling unit, or portion thereof, occupied or leased by a tenant. 15g. "Rental unit unavailable for rent" means a rental unit whose owner has filed with the code official a statement signed under penalty of perjury that such rental unit is not offered or available for rent as a rental unit and that prior to offering or making the rental unit available for rent as a rental 44444t, the owner will apply for a Residential Rental Business License and L18-0045 Short Term Rental Regulation Update Page 10 comply with any applicable administrative regulations adopted pursuant to this chapter. 1611-5. "Single-family residence" means a building, modular home, or new manufactured home designed to contain no more than one dwelling unit, plus one accessory dwelling unit. 1716. "Tenant" means any adult person granted temporary use of a rental unit pursuant to a lease or rental agreement with the owner of the rental unit. 17. "Unit" means any structure or part of a structure, which is used as a home, residence or sleeping place by one or more persons, including but not limited to, single family residences, duplexes, tri plexes, four plcxcs, 5.06.030 Scope The provisions of this chapter shall apply to all rental units, with the exception of: 1. A rental unit subject to a single Rental or Lease Agreement for a portion of a dwelling unit, where the owner resides in that dwelling unit with the tenant(s) for the duration of the term of the Rental Agreement (traditional roommate circumstance). ; 2. Units unavailable for rent; 3. Housing accommodations in hotels, motels, or extended -stay hotel or motel inns or tourist home; 4. Housing accommodations in retirement or convalescent/nursing homes, assisted living facilities, correctional institutions, diversion facilities, diversion interim services facilities, shelters, and dormitories; 5. Housing accommodations in any hospital, State licensed community care facility, convent, monastery or other facility occupied exclusively by members of a religious order or an extended medical care facility; 6. Housing accommodations that a government unit, agency or authority owns, operates or manages, or which are specifically exempted from municipal regulation by State or federal law or administrative regulation. This exception shall not apply once the governmental ownership, operation or management regulation is discontinued. Request Hold the public hearing on the proposed changes, review each proposed change, and choose a policy option. Staff will then take the draft ordinance to the City Council (or alternatively, for the Planning Commission to approve and forward to the City Council). 4 City of wila Allan Ekberg, Mayor Department oaf C,bmmunit Development - Jack Pace, Director Appendix 1 Table of "Levers" Pertaining to Short Term Rentals (Optional Policy Decisions) 'Issue 1: Short Term Rentals Allowed Topic Option 1 (Status Quo) Option 2 Option 3 (Most Permissive) To allow short term rentals... For SFR only For SFR plus duplexes and tri-plexes, in mixed use zones and residential zones adjacent to commercial zones (but not condominiums and apartments) _ All residential properties (SFR and Multifamily) Issue 2: Permitting Topic Option 1 (Status Quo) Option 2 Option 3 (Most Permissive) Permitting Requirements for non -owner occupied properties? None Residential Rental Housing Permit Business License . None Residential Rental Housing Permit Business License None Residential Rental Housing Permit Business License Permitting Requirements for all properties? None Residential Rental Housing Permit Business License None Residential Rental Housing Permit Business License None Residential Rental Housing Permit Business License Issue 3: Owner Occupancy Topic Option 1 (Status Quo) Option 2 Option 3 (Most Permissive) Owner . occupancy required? • • No requirement (But multiple bedrooms may not be simultaneou sly rented under separate lease agreements, Require owner- occupancy for the use of the following as short term rentals: ADUs, Duplexes and Triplexes Require owner- occupancy for all short-term rentals (thereby prohibiting the use of whole house/dwel No requirement (But multiple bedrooms may not be simultaneously rented under separate lease agreements, akin to a Require owner- occupancy for the use of the following as short term rentals: ADUs, Duplexes and Triplexes Require owner- occupancy for all short- term rentals (thereby prohibiting the use of whole house/dwelli ng unit for No requirement (But multiple bedrooms may not be simultaneou sly rented under separate lease Require owner- occupancy for the use of the following as short term rentals: ADUs, Duplexes and Triplexes Require owner - occupancy for all short - term rentals (thereby prohibiting the use of whole house/dwelli ng unit for Tukwila City Hall • 6200 Southcenter Boulevard • Tukwila, WA 98188 • 206-433-1800 • Website: TukwilaWA.gov L18-0045 Short Term Rental Regulation Update ' Page 12 akin to a Boarding House) ling unit for short term rental purposes) Boarding House) short term rental purposes) - agreements, akin to a Boarding House) short term rental purposes) Alternative: Requiring a locale (within 5 miles) property manager at all times property. is used as short- term rental... No requirement Require a local property manager residing within 5 miles of the property, available 24 hours a day at all times property is used as a short-term rental (and identified to the City with contact information) Require a local property manager residing within 5 miles of the property, available 24 hours a day at all times property is used as a short-term rental (and identified to the City with contact information) No requirement • ‘ Require a local property manager residing within 5 miles of the property, available 24 hours a day at all times property is used as a short- term rental (and identified to the City with contact information) Require a local property manager residing within 5 miles of the property, available 24 hours a day at all times property is used as a short- term rental (and identified to the City with contact information) No requirement Require a local property manager residing within 5 miles of the property, available 24 hours a day at all times property is used as a short-term rental (and identified to the City with contact information) Require a local property manager residing within 5 miles of the property, available 24 hours a day at all times property is used as a short-term rental (and identified to the City with contact information) Issue 4: Occupancy, Parking and Quiet Hours Topic Option 1 (Status Quo) Option 2 Option 3 (Most Permissive) Limitation on occupancy... . No limitation (But multiple bedrooms may not be simultaneou sly rented under separate lease agreements, akin to a Boarding House) Limit number of renters to two (2) per lawfully established bedroom (number of bedrooms as permitted for occupancy) No limitation No limitation (But multiple bedrooms may not be simultaneously rented under separate lease agreements, akin to a Boarding House) Limit number of renters to two (2) per lawfully established . bedroom (number of bedrooms as permitted for occupancy) No limitation No limitation (But multiple bedrooms may not be simultaneou sly rented under separate lease agreements, akin to a Boarding House) Limit number of renters to two (2) per lawfully established bedroom (number of bedrooms as permitted for occupancy) No limitation L18-0045 Short Term Rental Regulation Update Page 13 Additional . No Require one No No additional Require one No No Require one No additional parking additional additional off- additional parking additional off-street additional additional additional off- parking required... parking street parking parking required parking space for all parking parking street parking required required space for all required (except for properties utilized required required space for all (except for ADU, which requires an additional space) properties utilized as short term rental ADU, which requires an additional space) as short term rental (except for ADU, which requires an additional space) properties utilized as short term rental Quiet hours... No limitation Set quiet No No limitation Set quiet hours No No Set quiet hours No limitation beyond those currently in hours from lOpm to 7am, limiting limitation specific to short term beyond those currently in the code from lOpm to 7am, limiting outdoor noise attributable to limitation specific to short term limitation beyond those from 10pm to 7am, limiting outdoor noise specific to short term rentals the code pertaining to nuisance noises outdoor noise attributable to rental property rentals pertaining to nuisance noises rental property rentals currently in the code pertaining to nuisance noises attributable to rental property City of Tukwila Planning Commission PLANNING COMMISSION PUBLIC HEARING MINUTES Date: June 28, 2018 Time: 6:30 PM Location: Council Chambers Present: Chair, Nhan Nguyen; Vice Chair, Dennis Martinez; Commissioners, Mike Hansen, Sharon Mann, Louise Strander, and Heidi Watters Absent: Commissioner, Miguel Maestas Staff: Nora Gierloff, Community Development Deputy Directo,Ahg iarlotte Archer, City Attorney, and Wynetta Bivens, Planning Commission Secreta Adopt Commissioner Stander made an amendment t the `March 8, '6x r8 minutes. She asked Minutes: that the minutes reflect she abstained from votiACommissioner rtinez moved to adopt s, the minutes as amended. Commissioner Hans`en�seconded the moti i All were in favor. Chair, Nguyen, opened the public hearing and swore in ttl 6sse wishing to CASE NUMBER: L18-0045 Zoning Code Amendmen APPLICANT: City of Tukwila REQUEST: Hold a public he 4tb;get community i; pint on short term residential rentals (less than 30 days) andest. ixf, associated r' uuhtions for boarding houses, bed and breakfast lodging and ' esi dent Illre pi unit lice. g. LOCATION: Citywide A.J511i'�CFt==�rvr..:W"s, Nora Gierloff, Communi 4,13rcrelopi'ent. Deputy tread' gave the presentation, and Charlotte Archer from the City Attorney's Ofacdressed c anfying questions. Background: Over a ye "r��ago the Ci ,�,Coixncil had a session on housing policy and wanted to look at what they could to do to encourag - h'ou i`c" wn ipm„and i ffordable housing in the City. They gave staff a list of prioriti�z d�actions to a 'dress�� and staff has 'b en?working on updating the Accessory Dwelling Unit (ADU) reglitationslqhts,Fissue s heard by the Planning Commission last October and they made RN recomme'n ations in Februa that went to the Community Development and Neighborhoods Committee and City _ihcil. One of the ii sue .raised dg the review was that ADUs used for short term rentals were not contrib t . to the housing suety, this turned into a broader look at Tukwila's short-term rental regulations. The Accesso ® welling Unit o dmance is moving forward with a place holder prohibition on rentals of less y e rules ar . "' tywhousing typ es 30 days e/fd� ided Citywide. There are different issues for different and zones. Should they v . restri.'ons on parking, noise, or owner occupancy? And what sort of regulations or licenses would work tint cess is needed for Code Enforcement to have the tools necessary to enforce regulations. PUBLIC TESTIMONY: David Puki, citizen, is opposed to any short-term rental allowances. He said the City does not have the ability to enforce the code. He is in favor of the ADUs with owner occupancy in the main unit. He said there is currently a situation on the east side of his property, and many short-term tenants and cars coming and going, 3 which has caused him problems. He said there has been on -going Code Enforcement issues on the property. He said he hopes short-term housing is not approved until the City can manage rentals and ADUs. Roger Lorenza, citizen, is in favor of ADUs)and short-term rentals. He said any restrictions placed on people who own their own home is unrealistic. And the income received from rentals is needed. He said Airbnbs in Tukwila should not be compared to Seattle or other states. He said that there should not be a policy holder for prohibition; he said yes permit the use of residential housing in mixed use zones; do not require a license to operate a short term rental; he agrees with cleaning up the existing regulations, if the present code does not address the short-term rental than do not change the code; He said it's expensive to buy a new home and if people want to rent out their home it's their right. Terrance C. Morgan, citizen, is opposed to short-term rentals. He said he has°sp oken to the Mayor on these issues. Garcia Queuedo, citizen, is opposed to short-tenn rentals. He said the%c ali ��b� 41ife would be a major issue, and there would be parking issues. As well as environmental issues_ Fi'said chart "e inevitable, but it doesn't have to be negative for the people who live in the communi Jenny Sims, citizen, is seeking support to allow Airbnbs ophort-tern rentals in the corgi wiity but is against boarding houses. She said her family needs to rent out Obasement to help with the mortgage: She said she 1 ikes the flexibility and the control that short-term rental alto` She s id1 I long-term tenant 1 v s are in the tenant's favor, and it can be hard to evict problematic tenants. $.1.�i��, a ing Airbnb provide insurance is a safety net and makes her more comfortable !pin, short -teen re tale din her home. She said they would make • more money with a long-term rental but she is. "ot doing it for just 1%coney, but also the flexibility and convenience. She said the network is set up to'^ ..eedlout't •.e roblema t leople, and she pointed out there are problems with both long-term and short-term rentals. Stite she has h • a ery positive experience so far. She said even if short-term rental are denied hom owner rn�a' i of belable to ovate more long-term rentals due to cost to meet code requiremen s`{ Shy said many'homeo n rs n . rI bs to help combat the high rise in property taxes. She is not o �o ed o"av,i'ng regula 'ons'fhort-term ntals if they are easy to follow and are not prohibitively expensiu"``' Paul Winchester, citize • will in favor of'sho teen rentals.and has been running an Airbnb, for the past 18 months. He said he has not"""\Herte ced atDItletng issues He said he has been a long-term landlord for over 30 years, and4o_ng,l.t. pn tenantsOtuch more probk atic then short -teen rentals. He said his property is in better sh . e„an.,' thatch •has the extra*income to maintain the property opposed to having long-term rentals. He said r'bnbrvets the tenants He saidi`"°""hen he retires he plans to live at the property in the winter and during n ran'^ l..d• . vaca onswhich would not be.sible iong-tern rentals. He said it provides good income and it has worke u"outlwell for him. He c "gently p. cioates in the rental property program and has had the property inspected "ough the rental pL rr?�n b ing process. He also has a business license, is paying his property taxes, and it is gene -A good revenuenfor the government. r / Patricia Perry, citiV hasb °n an Airbnb guest in different Cities, and she likes the experience of the personal touch better than h to s She said she has property in Tukwila and if she needed to, she could run an Airbnb. She has considet `•t as she gets closer to retirement, to keep up with mortgage cost and property taxes. She said it irritates her being told what she can do with her home when she is the owner. She said progress is happening and it is hard, but she thinks there is a way to meet half way with this issue. She doesn't think it has to be all or nothing. There were no additional public comments. Nora Gierloff, Community Development Deputy Director, stated this is a complex issue, and asked how do you develop regulations that allow you to enforce rules for problematic renters? Page 2 of 5 CLARIFYING QUESTIONS: Charlotte Archer, Tukwila City Attorney, and Nora Gierloff addressed clarifying questions for the Commission. The public hearing was closed. DELIBERATION: Commissioner Martinez said there was a lot of questions for staff and he does of want to rush into any decision without getting complete answers. He suggested staff combine 01.answers and bring the information back to the Commission. He said it's tough and some of tIa questions still lingering are valid concerns. Commissioner Strander said she would like clarification d � re info on policyd;-,cisions for rental inspections. She inquired on the process if short-term renta���l�s�.'' Wre approved? She ask,units 'units would be subject to the City rental inspection program or woul i�bfb'different if a detached ADUsns.rented or a single-family residence, or a bedroom. Ms. Gierloff sal o Mit would b .Oteerned with appl g inspections to short-term rentals. She asked if a short-term rental is an ®,U w. u fit be subject to the parking requirements for ADUs? Commissioner Mann said she feels like she' Ceul�d's " p:ort short-tentals with the following requirements: (1) Requiring homeowners are license d (2�•t.R u�•n•ng a 1 alb , rocess for inspections. (3) Property is owner occupied, (�4 rA cap is placed 'Ithe numb rfo£�re Itals roperty owner is allowed. (5) Requiring the owner be resp'onsilge.::.for the park ng e" m s_ and for accommodating at minimum one parking space. `y \ Commissioner Nguyen s he is wo idering_ if this is a so ution looking for a problem. He said the issues identified are no different than hedissues�identtfieddli ith Iong-term rentals. He asked why short-term rentals are being ss c al y"'targetedr4"'"Iiihee current rulesWong teen rentals are satisfactory. He said he agrees with lice si g, comp „c-q,..and pat ing, but does not necessarily agree with owner occupancy. He said Airb . "ratings should be c nsidered asmwell. He said parking restrictions make sense to him. He said we want p `ople to to come to our C t}vto spendtpney, so we should consider economic development. We want to make housing affordable for eople of all social economic status and their personal situations. He said the City show("' 4nsider helpin Vith mortgages because housing is so expensive. And accountability to up keep the property and the tra c;s.tuation. He said short-term rentals could have a better rating process then longer term rerfta 1, Commissioner Martinez said one of the conversations that has not been had is the prohibition of short- term rentals, and the individuals who have commented or sent emails stating their opposition for short-term rentals. He said they deserve some acknowledgement of their concerns. He said it is a tough situation, and at the very least we should let citizens know that we are thinking about them and do hear their concerns. He said one of biggest complaints that everyone has with municipalities is that the governing units do not listen to them. He said we are listening and have the same problems the citizens have, parking and the loud noise. Commissioner Mann said she wanted to defend her requirement for owner occupancy. She said it would be less likely to have a short-term rental who is going to party in the owner's house. And the owner will be Page 3 of 5 5 more selective about who's going to be in their house. Short-term rentals are a consideration to help first- time home buyers, or to help with high mortgages for individuals to stay in their homes. And it would be allowed for single-family residences, not for people to make money. She said investors trying to make money can take on the capital risk that comes with investing. She said there should be a cap of one rental per home, and asked how do you enforce restrictions? She said she would be more comfortable allowing Airbnbs if restrictions are in place. Commissioner Nguyen was opposed to the idea to regulating the number of rentals a home owner is allowed, He said the more people renting Airbnbs the more they pay and depending on the size of the home there is the ability to rent to more people. He said he is totally for communitand livability, but he does not want to stereotype people who chose to invest in our City. He said short-teriav entals should be treated equally. Commissioner Watters said is makes sense to regulate short -to iu s ess op rat ons in a commercial enterprise. She said for single family neighborhoods the Citycormonly regulates what businesses are allowed in single family zoned areas. And the zoning hel 66 keep quality neighborhoods so there is a lot of regulation with zoning. She said the City s role is to mae'e sure trying to make moneys s not harm the quality of life in neighborhoods. She said its typical, dIiit s important to rotect families fr°pn investment pressure. She said she personally would not be able to cot ete. with;;.."-: investor for renting her house. She said it is important to think about families, and it's a real asset ;flier ity and we want to try to give citizens the tools necessary to make it. She said that4may7tnean telling in estors they are not allowed to invest in an area because people need to be able to live. Commissioner Mann said as appointed public set ants a'welllin elected ones they have a job to do, and it is not to work for a specific r0butZt ,,make the s ico - munity fokOeryone. She said the Commission's job is to c :eaie"livabilityrfo all citiz n`s t d for single-family neighborhoods. Nora Gierloff asked ho`'w staff 1p and,N,yhat the n.mission would like brought back to them. 0 BRINGBACK TO TH`F3uQOMMISSION: ITEMS FOR "STAFF• format for the re ous ng.,infections for the short-term rentals. (Martinez) iformation on how much revenue s. e City currently receives annually from short;term rentals. (Martinez) • 4filormaton� on regulations from other communities the size of Tukwila such as, Bothell, Covingtoi;;lVlercer Island and Maple Valley. (Martinez) Information on whether Sea Tac has considered17 co�sho t;tetin rentals (Watters) • Information onental inspections and a recommendation on licensing and how it would work. (Martinez) • chart of licenses for comparison, listing the various types of licenses other jurisdictions use and how they define them. (Wafters) • Xnformation on boarding houses, and negative impacts to hotels. (Watters) • -Zaanguage on how the new rules will impact problematic boarding houses (Watters) • A recommendation for off-street parking spaces. (Strander) • A defmition for owner occupancy, and information on whether there will be a difference between how they will be handled compared to ADUs (Strander) Page 4 of 5 6 • A cap on the number of rentals allowed. (Strander) • Vinfonnation regarding the impacts to the long-term rental market. (Nguyen) • A proposed ordinance, addressing licensing, inspections, owner occupancy, LLC limitations, parking and a cap for the number of rentals allowed, including condominiums. (Mann) also language for multi -family short-term rental potentially (Strander) enforcement implied in the ordinance, which is really a big part of this decision and continues to be his main concern (Hansen) (Nguyen) • If a cap is required for short-term rentals, or owner occupancy is required (Nguyen) wants to see how it would look for long-term rental as well. How will it be affected. • ylnformation on other City's experiences regarding short-term rentals,~,, uyen) 1� • Commissioners Hansen and Nguyen expressed interest in a join or session with the City Council. Staff will request a joint work session and return with'gpotential dates. DIRECTOR'S REPORT: • Commissioner Nguyen talked about his attendancee eu t;f1 e APA Conference, ew Orleans. He expressed his appreciated for the opportunity, saidlllitivas very helpful, and the in ave him a better appreciation of the work done by City staff. `e3e couraged all , a Commissione Pt„ attend when there are APA Conferences in the area in the fu {; • Due to a busy schedule it is necessary to hold a Woa's ssrydri 6 update the Environmental Sensitive Areas and Shoreline Codes. A ten . tive,date is October 1Q )(g2018. Commissioner Martinez asked if the-Coriniiirss on would hav',e opportunity to tour project sites ' " . . they have previously approved. Staf'b����ered t�p,,4g4u.de some `o°9,tential dates. ADJOURNED: 9:25 PM Submitted by: t ',Wynetta Biven %4ianning Commits Page 5 of 5 7 Nora Gierloff Subject: Location: Start: End: Recurrence: Meeting Status: Organizer: Required Attendees: Optional Attendees: Resources: Short Term Rental Game Plan Rainier (CR 2) Tue 7/10/2018 1:00 PM Tue 7/10/2018 2:00 PM (none) Meeting organizer Nora Gierloff Charlotte Archer Minnie Dhaliwal; Antoinette Mattox Rainier (CR 2) Charlotte — does this work for you? From: Charlotte Archer <Charlotte@kenyondisend.com> Sent: Sunday, July 1, 2018 6:56 AM To: Nora Gierloff <Nora.Gierloff@TukwilaWA.gov> Cc: Minnie Dhaliwal <Minnie.Dhaliwal TukwilaWA.gov>; Jack Pace <Jack.Pacec TukwilaWA.gov>; Antoinette Mattox <antoinette@kenyondisend.com> Subject: RE: Short Term Rental Game Plan Hi Nora: Happy to help out, I also think it was useful for me to see firsthand the guidance we're receiving on this project instructing our next steps. I believe your list is complete; there was the request for a way to prohibit LLC's from owning rentals, and while that is not legal, there may be a way (similar to Seattle) to place stronger restrictions on commercial short term rentals (not including hotels, motels). That fits with the "cap on the number of rentals per host." I'll start reaching out to other jurisdictions to survey their enforcement methods/efforts. The week of the 9th is relatively open; Tuesday, Wednesday or Thursday mornings are preferable. Thanks! Charlotte Charlotte A. Archer Kenyon Disend, PLLC 11 Front St. S. Issaquah, WA 98027-3820 Tel: (425) 988-2204 www.kenyondisend.com From: Nora Gierloff[mailto:Nora.Gierloff@TukwilaWA.gov] Sent: Friday, June 29, 2018 4:31 PM To: Charlotte Archer <Charlotte@kenyondisend.com> 1 Cc: Minnie Dhaliwal <Minnie.Dhaliwal@TukwilaWA.gov>; Jack Pace <Jack.Pace@ TukwilaWA.gov> Subject: Short Term Rental Game Plan Hi Charlotte, It was so helpful to have you at Planning Commission last night. I really appreciate the teamwork. Looking ahead I will be out of town for the July meeting so am thinking of aiming to bring this back on August 23. My notes show that the Commission wanted to see: Draft ordinance with staff recommendations • Options for treating small multi -family buildings or condos differently than apt complexes - L)-- fs11 • Proposal for licensing/inspections - -1 re-- `'( 4-6LC-r • Definition of owner occupancy/proposal for restriction to owners ye-5 • Off-street Parking - 1 ei.----r?..- • Cap on the number of rentals per host Annual lodging tax from short term rentals - I will check with Econ Dev - sr^�-ki `�v , cam.. �-�%� vi uAeL btr Add Maple Vaiiey, Covington, Mercer island to the Neighboring Jurisdiction Chart - Info on licensing (though I think that is in the chart already) Experience of other jurisdictions with enforcing short term rentals especially SeaTac and Burien (code enforcement and attorneys)7? c- -\,D More detail on the boarding house problem What did I miss? Do you plan to be in Tukwila the week of July 9th? It would be good to get together and work through the staff proposal/options. Thanks, Nora, Gierlo ff Deputy DCD Director City of Tukwila CAUTION: This email originated from outside the City of Tukwila network. Please DO NOT open attachments or click links from an unknown or suspicious origin. S \ — r \\& i. l-iroL) L�I Ike.-ry or, 6 ` .347 1 ? a. 2 (a,o6)i I'3- c., SORY DWELLING UNIT (ADU) The City hasrecently updated its regulations for construction of Accessory Dwelling Units (ADUs). An ADU, sometimes informally referred to as a "mother-in-law apartment," can be built in residential areas with minimal impact to existing neighborhoods. They can also provide a source of extra income to home owners, sometimes making it easier for elderly residents to stay in their homes. The new ADU regulations remove some of the restrictions in the old rules, and include the following: • ADUs can be within, attached to, or detached from to the primary unit. For a minimum of nine months in any twelve month period, the owner of the primary unit must live in either the primary unit or the Accessory Dwelling Unit; • Only one ADU is allowed per single-family structure; • All ADUs need to be at least 220 sq. ft. in area. The maximum size of the ADU will vary depending upon the type built. Detached ADUs, those created through an addition, and those designed into the structure at the time of permitting can be up to 80o sq. ft. An ADU created within an existing structure can be up to 45% of the total area of the primary unit; • A minimum of one off-street space i s required for a� ADU; / bu (t.ci`,, , .'&4 All new and existing ADUs must register with the City. New ADUs can be registered during the permitting process, while existing ADUs have twelve months to register and bring their units up to the current standards if they were built without (\e permits. Aw. ,-� �3e-�-2rS £ tv�� v{ A Building Permit application must be completed for all new accessory dwelling units, along with an ADU Registration form and Affidavit [PDF]. If your ADU will be completely within the existing main home, you must also fill out an Residential Remodel Checklist [PDF]. If the ADU will be attached to the main home, or completely detached from it, fill out the New/Addition Residential Checklist [PDF]. For more information, call the Department of Planning & Community Development at 206.973.4840• Cx., vv\.ed,0•1 - 1 ^7:3 (0-- (V\v 030f-4A.dQ_ �Pc7cr���f nA:vL iirJ� ILn� G�(� L1 ��G ✓� �C (_-`-1Y`r wTN-(1 - Short Term Rental Comments to the Planning Commission From: Ann Marie Chamberlin Sent: Wednesday, June 27, 2018 4:16 PM Hello - My name is Ann Marie Chamberlin and I own a home in Tukwila at 4XXX South 150th Street. I am unable to attend tomorrow's hearing but would like to share my thoughts. My concern (without knowing specific details of how these rentals work) is with traffic, crowded roads, illegal parking, transient visitors around our schools, possible increase in crime, and possible squatters with the nightmare stories we hear from around the country on that topic. I feel that some may "sell" the idea of an Airbnb, but actually have large extended families or groups of people living in a single family home resulting in safety violations or noise control. We have so many hotels within our city and our sister city of SeaTac. There is no need for them in our compact community of family & friends that we've worked so hard to improve over the 20 years I've lived here. I am in favor of Mother in Law apartments within a home or an attached unit or an out building. Not sure what the decision was with that. From: Penny Sent: Wednesday, June 27, 2018 8:41 AM This is our two cents worth about updating the current zoning laws regarding short term rentals. Don't change a thing. Homeowners should have the right to do as they please with their homes (within reason) and if that means they can make a little money on the side renting them (or just a room) out for a short term, more power to them. People that rent these AirBnB type places know what they're getting themselves into and vice versa. If the hotel/motel businesses are driving this idea of "updating the zoning laws" - tell them to get with the program and become more competitive in their pricing. Life isn't all about big business making money. Thanks. Penny Gillen & Diana Echols From: ERICA POST Sent: Monday, June 25, 2018 2:27 PM I will not be able to attend on Thursday as I am traveling for work, but wanted to send some thoughts and input ahead of the meeting for consideration. Please feel free to contact me with any questions you or the Planning Commission may have. I am more than willing to offer additional input and experience into these conversations based on the last year that I have spent as an operator of an Airbnb in Tukwila, and my experiences renting properties through Airbnb while traveling. I bought my home in Tukwila in March of 2017. For context, I previewed 150 houses over 9 months, made 11 offers, and finally secured this home after no small amount of effort. Owning my home is incredibly important to me, and the appreciation of the housing market in this area made it nearly impossible for me to do so. Not just for upfront purchase price, but the monthly cost of my mortgage and utilities for Page 1 someone with a single income. When looking to purchase my home, I planned for the need to use a platform like Airbnb or VRBO to rent my home on a short term rental basis to provide supplemental income to pay my mortgage and maintain my home. / would struggle to afford the mortgage and associated utilities on my 1,000 sq ft home without the supplemental income I receive through renting on Airbnb. In cases like mine, a full-time renter is not an option for me, as I travel for work and sometimes work from home, and need to have control over my living environment that a long-term renter would not allow. Short term rentals provide flexibility in deciding when, how, and whom I allow into my home, while providing supplemental income to help with my mortgage and household expenses. Airbnb offers $1M in primary liability coverage for my home, and I operate a LLC to run the business for which I am licensed and pay taxes through the WA DOR. Airbnb remits WA state taxes on my behalf for all of my rentals, and in 2017 I filed quarterly with the DOR for tax purposes. I also pay a service fee to Airbnb for each rental, carry an umbrella insurance policy in addition to my homeowner's insurance, and hired a CPA to assist with my annual returns and calculations for my home -based business (Airbnb). I provide this context to demonstrate to the Planning Commission that operating a short term rental isn't without its own costs, investments, and administrative burdens. Adding to these by providing additional hoops and administrative burdens, especially where the owner/operator is required to submit duplicative information and fees to both local and state agencies, does nothing to alleviate the perceived negative impacts of operating short term rentals, and if anything, reduces the positive benefits to owner/operators of short term rentals. There is no doubt that there is an affordable housing crisis in this area, but it isn't just limited to affordable rentals; it also includes affordable homes for purchase. Imposing burdensome restrictions, fees, and additional administrative burdens on those like myself who want to own their home and build supplemental income in an economy where inflation is outpacing increases in earned wages is punishing the wrong people. I encourage the city of Tukwila to allow for short term rentals in residentially -zoned properties, and allow short-term rentals on owner -occupied single family homes without additional administrative burdens, including fees, permits, and restrictions. In reviewing some of the attachments in advance of drafting this email, here are my thoughts: • Staff Report for Short Term Rentals: I appreciate the thought and consideration put into this document by the city of Tukwila, and understand that there is sentiment to include additional regulation around short term rentals. I have concerns about the following: o Overall I have concerns that short term rentals may be unnecessarily penalized and burdened by administrative tasks that have little or no value to the tenant, owner/operator, City of Tukwila, or community at large. Additional regulation requires additional enforcement, and our property taxes already continue to increase without the addition of additional roles and responsibilities for our city government. I am also concerned that many of the regulations under discussion for short term rentals do not apply to "roommate" or longer term rentals today. I believe that no additional regulations should be put in place without a well-defined and easy -to -administer process for reporting, collection, and/or enforcement of new regulations. o Owner occupancy or nearby property management: The profit margins on short-term rentals in the city of Tukwila are VERY small (nothing like Seattle). As such, requiring Page 2 property management within the city of Tukwila or within a certain mileage radius on retainer would restrict profitability so severely that many short-term rentals may need to cease operations entirely, negatively impacting owner/operators. ■ Also, if the property management requirement of within the city limits or mileage radius is imposed on short-term rentals, the same should be imposed on ALL rentals, including Tong -term and apartment. (This is likely not the case today, and would be a prohibitive business model for city limits in many cases as other cities such as Seattle, Burien, White Center, and SeaTac are often in closer proximity than the other side of Tukwila.) o Limit of number of properties: I do not believe that short term rental should be limited to only one owner occupied property, and I believe that owner -occupied residential properties should be exempt from restriction. I support that additional regulation could/should be applied to properties 2 and 3 (ADUs and owner -occupied residences exempt) to help restrict the long-term rental availability in Tukwila if this is confirmed to be a known issue, and that a cap should be established on the number of properties any owner or business entity can operate without additional licensing, an example such as: • Property 2: Limited to 180 short-term rental days per year, proof of WA state business license required, parking restriction, annual registration/ rental permit required • Property 3: Limited to 120 short-term rental days per year, proof of WA state business license required, parking restriction, annual registration/ rental permit required ■ Property 4 and beyond: Not allowed as a short term rental, for owner/operators renting 4 or more properties, properties and business license information must be registered with the City of Tukwila o Number of occupants: I support a limit on the number of occupants for a short term rental, however this may be difficult to enforce fairly by number of bedrooms, as some bedrooms in rentals may accommodate beds for 6 persons while others may only accommodate beds for 2 persons. Perhaps something could be considered as part of overall square footage? Maybe 8 persons max up to 1000 sq ft, 10 persons 1000-1500 sq ft, 12 persons 1500-2500 sq ft, maximum of 15 persons 2500 sq ft and above. o I support noise and parking restrictions- I already have these in place for my guests through Airbnb, and as far as I am aware, they have not been a disturbance to any of my neighbors or my community. However, if there are noise and parking restrictions for short term rentals, these should be applied to ALL residential (and rental) properties within Tukwila. • Parking: I live in a neighborhood with many generations of a single family within a single family home. I have 2-4 cars (at most) parked off-street (incl. renters), while many of my neighbors have 5-6 cars per household parked on the street. Short term rentals are not the issue in this case. • Noise: Many of my neighbors have loud outdoor music and entertainment in the summer months extending past 10-11pm on weeknights. If short-term rentals are to be singled out, this restriction should be applied universally to all residential properties. Short term rentals are not the issue in this case. • Amendment B: While I appreciate the research done by the city of Seattle, I do not feel that the circumstances in Tukwila are comparable to those of Seattle. In this document, however, the models presented by Airbnb for San Jose and Philadelphia seem most reasonable, however these are still drastically larger cities with a much larger tourist population than Tukwila. • Amendment C: Does not clearly define the circumstances of my current situation, where I have a single family home from which I rent a single bedroom, but there is a shared entrance and shared living spaces. If the short term rental of bedrooms within a single family home will not be regulated Page 3 under these updates, then I have no concerns about the current language. Overall, I understand the need for oversight on short-term rentals, but I do believe that the City of Tukwila is, in many cases, trying to regulate a type of rental for which the impacts (positive or negative) have not been fully vetted. I am concerned that additional regulation in this space may have far-reaching negative impacts for all involved which have not yet been considered. Thank you for your consideration, and I look forward to an update and further discussion around short term rentals in Tukwila. From: Sheryl Havens Sent: Monday, June 25, 2018 9:38 AM I cannot attend the public hearing so I am sending you my comments as a citizen of Tukwila for 17 years. I am opposed to short term rentals such as Aibnbs in Tukwila. As a community we are working very hard to create safe neighborhoods with a REAL community in the midst of all the industry and businesses in Southcenter. I want Tukwila to be a great place to LIVE and STAY, not a TRANSIENT travel hub. I want to see my neighbors every day and get to know them, not see strangers coming and going. People who are in Tukwila for longer term are more invested in the community and take care of it. People who are renting here for a few days are less likely to take care of Tukwila. My feeling is that the only individuals who are going to benefit from Airbnbs are business people who DO NOT LIVE in Tukwila, where I choose to live and raise my family. As a community member I will be left to deal with the consequences as a result of decisions made by strangers/business people who don't live here, just want to profit. I say NO to short term rentals such as Airbnbs. From: steve hewes Sent: Wednesday, June 20, 2018 4:23 PM Hi Lori- I'm not in favor of Airbnb/ short term rentals because I'm a landlord and I need to know and approve the people living in my units. Also the lease agreement is generally one year and no subletting is allowed. I've had tenants sublet my units without my knowledge or permission. This is unacceptable to me and termination of lease for default of terms and conditions can result. Short term rentals really doesn't fit my business model and I oppose the idea of allowing it to become city policy. Thanks From: Richard Delaney Sent: Tuesday, June 19, 2018 7:52 PM Cc: Rainbow Trailer Haven We operate two mobile home parks in the city. We are having a difficult time keeping track of the people who move into several of the mobiles in our parks. We are definitely against short term rentals in mobile home parks. From: Nestor Dofredo Sent: Tuesday, June 19, 2018 1:35 PM Government getting into private affair. Want lower rent do not add anymore tax or fees. You did not mention motels for short term rentals. Page 4 Short Term Rental Comments to the Planning Commission From: Ann Marie Chamberlin Sent: Wednesday, June 27, 2018 4:16 PM Hello - My name is Ann Marie Chamberlin and I own a home in Tukwila at 4XXX South 150th Street. I am unable to attend tomorrow's hearing but would like to share my thoughts. My concern (without knowing specific details of how these rentals work) is with traffic, crowded roads, illegal parking, transient visitors around our schools, possible increase in crime, and possible squatters with the nightmare stories we hear from around the country on that topic. I feel that some may "sell" the idea of an Airbnb, but actually have large extended families or groups of people living in a single family home resulting in safety violations or noise control. We have so many hotels within our city and our sister city of SeaTac. There is no need for them in our compact community of family & friends that we've worked so hard to improve over the 20 years I've lived here. I am in favor of Mother in Law apartments within a home or an attached unit or an out building. Not sure what the decision was with that. From: Penny Sent: Wednesday, June 27, 2018 8:41 AM This is our two cents worth about updating the current zoning laws regarding short term rentals. Don't change a thing. Homeowners should have the right to do as they please with their homes (within reason) and if that means they can make a little money on the side renting them (or just a room) out for a short term, more power•to them. People that rent these AirBnB type places know what they're getting themselves into and vice versa. If the hotel/motel businesses are driving this idea of "updating the zoning laws" - tell them to get with the program and become more competitive in their pricing. Life isn't all about big business making money. Thanks. Penny Gillen & Diana Echols From: ERICA POST Sent: Monday, June 25, 2018 2:27 PM I will not be able to attend on Thursday as I am traveling for work, but wanted to send some thoughts and input ahead of the meeting for consideration. Please feel free to contact me with any questions you or the Planning Commission may have. I am more than willing to offer additional input and experience into these conversations based on the last year that I have spent as an operator of an Airbnb in Tukwila, and my experiences renting properties through Airbnb while traveling. I bought my home in Tukwila in March of 2017. For context, I previewed 150 houses over 9 months, made 11 offers, and finally secured this home after no small amount of effort. Owning my home is incredibly important to me, and the appreciation of the housing market in this area made it nearly impossible for me to do so. Not just for upfront purchase price, but the monthly cost of my mortgage and utilities for Page 1 someone with a single income. When looking to purchase my home, I planned for the need to use a platform like Airbnb or VRBO to rent my home on a short term rental basis to provide supplemental income to pay my mortgage and maintain my home. / would struggle to afford the mortgage and associated utilities on my 1,000 sq ft home without the supplemental income I receive through renting on Airbnb. In cases like mine, a full-time renter is not an option for me, as I travel for work and sometimes work from home, and need to have control over my living environment that a long-term renter would not allow. Short term rentals provide flexibility in deciding when, how, and whom I allow into my home, while providing supplemental income to help with my mortgage and household expenses. Airbnb offers $1M in primary liability coverage for my home, and I operate a LLC to run the business for which I am licensed and pay taxes through the WA DOR. Airbnb remits WA state taxes on my behalf for all of my rentals, and in 2017 I filed quarterly with the DOR for tax purposes. I also pay a service fee to Airbnb for each rental, carry an umbrella insurance policy in addition to my homeowner's insurance, and hired a CPA to assist with my annual returns and calculations for my home -based business (Airbnb). I provide this context to demonstrate to the Planning Commission that operating a short term rental isn't without its own costs, investments, and administrative burdens. Adding to these by providing additional hoops and administrative burdens, especially where the owner/operator is required to submit duplicative information and fees to both local and state agencies, does nothing to alleviate the perceived negative impacts of operating short term rentals, and if anything, reduces the positive benefits to owner/operators of short term rentals. There is no doubt that there is an affordable housing crisis in this area, but it isn't just limited to affordable rentals; it also includes affordable homes for purchase. Imposing burdensome restrictions, fees, and additional administrative burdens on those like myself who want to own their home and build supplemental income in an economy where inflation is outpacing increases in earned wages is punishing the wrong people. I encourage the city of Tukwila to allow for short term rentals in residentially -zoned properties, and allow short-term rentals on owner -occupied single family homes without additional administrative burdens, including fees, permits, and restrictions. In reviewing some of the attachments in advance of drafting this email, here are my thoughts: • Staff Report for Short Term Rentals: I appreciate the thought and consideration put into this document by the city of Tukwila, and understand that there is sentiment to include additional regulation around short term rentals. I have concerns about the following: o Overall I have concerns that short term rentals may be unnecessarily penalized and burdened by administrative tasks that have little or no value to the tenant, owner/operator, City of Tukwila, or community at large. Additional regulation requires additional enforcement, and our property taxes already continue to increase without the addition of additional roles and responsibilities for our city government. I am also concerned that many of the regulations under discussion for short term rentals do not apply to "roommate" or longer term rentals today. I believe that no additional regulations should be put in place without a well-defined and easy -to -administer process for reporting, collection, and/or enforcement of new regulations. o Owner occupancy or nearby property management: The profit margins on short-term rentals in the city of Tukwila are VERY small (nothing like Seattle). As such, requiring Page 2 property management within the city of Tukwila or within a certain mileage radius on retainer would restrict profitability so severely that many short-term rentals may need to cease operations entirely, negatively impacting owner/operators. • Also, if the property management requirement of within the city limits or mileage radius is imposed on short-term rentals, the same should be imposed on ALL rentals, including long-term and apartment. (This is likely not the case today, and would be a prohibitive business model for city limits in many cases as other cities such as Seattle, Burien, White Center, and SeaTac are often in closer proximity than the other side of Tukwila.) o Limit of number of properties: I do not believe that short term rental should be limited to only one owner occupied property, and I believe that owner -occupied residential properties should be exempt from restriction. I support that additional regulation could/should be applied to properties 2 and 3 (ADUs and owner -occupied residences exempt) to help restrict the long-term rental availability in Tukwila if this is confirmed to be a known issue, and that a cap should be established on the number of properties any owner or business entity can operate without additional licensing, an example such as: • Property 2: Limited to 180 short-term rental days per year, proof of WA state business license required, parking restriction, annual registration/ rental permit required • Property 3: Limited to 120 short-term rental days per year, proof of WA state business license required, parking restriction, annual registration/ rental permit required Property 4 and beyond: Not allowed as a short term rental, for owner/operators renting 4 or more properties, properties and business license information must be registered with the City of Tukwila o Number of occupants: I support a limit on the number of occupants for a short term rental, however this may be difficult to enforce fairly by number of bedrooms, as some bedrooms in rentals may accommodate beds for 6 persons while others may only accommodate beds for 2 persons. Perhaps something could be considered as part of overall square footage? Maybe 8 persons max up to 1000 sq ft, 10 persons 1000-1500 sq ft, 12 persons 1500-2500 sq ft, maximum of 15 persons 2500 sq ft and above. o I support noise and parking restrictions- I already have these in place for my guests through Airbnb, and as far as I am aware, they have not been a disturbance to any of my neighbors or my community. However, if there are noise and parking restrictions for short term rentals, these should be applied to ALL residential (and rental) properties within Tukwila. • Parking: I live in a neighborhood with many generations of a single family within a single family home. I have 2-4 cars (at most) parked off-street (incl. renters), while many of my neighbors have 5-6 cars per household parked on the street. Short term rentals are not the issue in this case. • Noise: Many of my neighbors have loud outdoor music and entertainment in the summer months extending past 10-11pm on weeknights. If short-term rentals are to be singled out, this restriction should be applied universally to all residential properties. Short term rentals are not the issue in this case. • Amendment B: While I appreciate the research done by the city of Seattle, I do not feel that the circumstances in Tukwila are comparable to those of Seattle. In this document, however, the models presented by Airbnb for San Jose and Philadelphia seem most reasonable, however these are still drastically larger cities with a much larger tourist population than Tukwila. • Amendment C: Does not clearly define the circumstances of my current situation, where I have a single family home from which I rent a single bedroom, but there is a shared entrance and shared living spaces. If the short term rental of bedrooms within a single family home will not be regulated Page 3 under these updates, then I have no concerns about the current language. Overall, I understand the need for oversight on short-term rentals, but I do believe that the City of Tukwila is, in many cases, trying to regulate a type of rental for which the impacts (positive or negative) have not been fully vetted. I am concerned that additional regulation in this space may have far-reaching negative impacts for all involved which have not yet been considered. Thank you for your consideration, and I look forward to an update and further discussion around short term rentals in Tukwila. From: Sheryl Havens Sent: Monday, June 25, 2018 9:38 AM I cannot attend the public hearing so I am sending you my comments as a citizen of Tukwila for 17 years. I am opposed to short term rentals such as Aibnbs in Tukwila. As a community we are working very hard to create safe neighborhoods with a REAL community in the midst of all the industry and businesses in Southcenter. I want Tukwila to be a great place to LIVE and STAY, not a TRANSIENT travel hub. I want to see my neighbors every day and get to know them, not see strangers coming and going. People who are in Tukwila for longer term are more invested in the community and take care of it. People who are renting here for a few days are less likely to take care of Tukwila. My feeling is that the only individuals who are going to benefit from Airbnbs are business people who DO NOT LIVE in Tukwila, where I choose to live and raise my family. As a community member I will be left to deal with the consequences as a result of decisions made by strangers/business people who don't live here, just want to profit. I say NO to short term rentals such as Airbnbs. From: steve hewes Sent: Wednesday, June 20, 2018 4:23 PM Hi Lori- I'm not in favor of Airbnb/ short term rentals because I'm a landlord and I need to know and approve the people living in my units. Also the lease agreement is generally one year and no subletting is allowed. I've had tenants sublet my units without my knowledge or permission. This is unacceptable to me and termination of lease for default of terms and conditions can result. Short term rentals really doesn't fit my business model and I oppose the idea of allowing it to become city policy. Thanks From: Richard Delaney Sent: Tuesday, June 19, 2018 7:52 PM Cc: Rainbow Trailer Haven We operate two mobile home parks in the city. We are having a difficult time keeping track of the people who move into several of the mobiles in our parks. We are definitely against short term rentals in mobile home parks. From: Nestor Dofredo Sent: Tuesday, June 19, 2018 1:35 PM Government getting into private affair. Want lower rent do not add anymore tax or fees. You did not mention motels for short term rentals. Page 4 How Airbnb Short -Term Rentals Exacerbate Los Angeles's Affordable Housing Crisis: Analysis and Policy Recommendations Dayne Lee* I. INTRODUCTION Los Angeles, California, is in the midst of an affordable housing crisis. Rents have increased by 7.3% in 2014 alone, and the median renting house- hold already spends 47% of its income on housing.' This crisis has added fuel to the contentious debate over Airbnb, a startup technology company that facilitates short-term rentals (STRs) of residential homes to tourists. Whereas Airbnb and its users tout its positive effects on tourism, cultural exchange, and the environment, its critics contend that Airbnb harms neigh- borhoods, distorts the housing market, undermines labor unions, and exacer- bates Los Angeles's affordable housing crisis. In regulating Airbnb, policymakers seek to curb Airbnb's impacts on neighborhood character and housing while harnessing the economic activity it brings.2 Employing legal, statistical, and secondary source analysis, this article explores how STRs affect the price and aggregate supply of affordable hous- ing rentals in Los Angeles, and how municipal policymakers can best regu- late Airbnb. In Section I, I briefly outline the contours of Los Angeles's affordable housing crisis, and describe Airbnb and its growth in Los Ange- les. The topics of Section II are the effects that STRs have on rents and Los Angeles's aggregate supply of affordable housing. Section III of this article analyzes how and to what extent Airbnb leads to displacement, gentrifica- tion, and segregation in Los Angeles's residential neighborhoods. In Section IV, I assess strategies, regulations, and policies that municipal policymakers and stakeholders can use to regulate Airbnb. Finally, in the Conclusion, I recommend a set of regulations, taxes, and community -benefits agreements that will force Airbnb to be a partner that promotes, rather than impedes, the goals of affordable housing advocates. * J.D. Candidate, Harvard Law School (expected 2017). The author gratefully acknowl- edges professors Rick Su and Esme Caramello, as well as Eloise Lawrence for their advice regarding this article. He thanks the dedicated Harvard Law & Policy Review editors for their thoughtful editing and comments. ' See Los Angeles Home Prices & Values, Zn.LOw (Sept. 30, 2015), http://www.zillow .com/los-angeles-ca/home-values/ [http://perma.cc/J82K-A3F3]; Rosalie Ray et al., Impacts of the Widening Divide: Los Angeles at the Forefront of the Rent Burden Crisis, UCLA LusluN SCHOOL OF PUBLIC AFFAIRS CENTER FOR THE STUDY OF INEQUALITY, Sept. 2014, at 8, http:// issuu.com/csiucla/docs/ziman_2014-08w/1 [http://perma.cc/P4GH-KFHW]. a See, e.g., Steven Leigh Morris, Airbnb is Infuriating the Neighbors. Is it Time for New Rules?, Los ANGELES WEEKLY (Jan. 22, 2015), http://www.laweekly.com/news/airbnb-is-infu- riating-the-neighbors-is-it-time-for-new-rules-5343663 [http://perma.cc/4JG2-KAJM]. 230 Harvard Law & Policy Review [Vol. 10 Airbnb likely reduces the affordable housing supply by distorting the housing market in two interconnected mechanisms. The first such mecha- nism is one of simple conversion: any housing unit that was previously oc- cupied by a city resident, but is now listed on Airbnb year round, is a unit that has been removed from the rental market and has essentially been added to Los Angeles's supply of hotel rooms. This leads to a real, but likely mild, increase in citywide rents, an effect that is concentrated in affluent or gentri- fying neighborhoods along the city's central core. More disconcertingly, conversion reduces Los Angeles's already -limited supply of affordable hous- ing. The second mechanism is "hotelization." So long as a property owner or leaseholder can rent out a room on Airbnb for cheaper than the price of a hotel room, while earning a substantial premium over the residential market or rent -controlled rent, there is an overpowering incentive to list each unit in a building on Airbnb rather than rent to Los Angeles residents, thereby creat- ing "cottage hotels." This decreases the supply of housing and spurs dis- placement, gentrification, and segregation. These two mechanisms distort the rental housing market, which tradi- tionally does not overlap with the hospitality sector. Tourists stay in hotels that are specifically permitted for and developed in commercially zoned neighborhoods. Residential housing is zoned and built through a wholly dif- ferent process. Airbnb facilitates the inappropriate merging of the residential and tourist markets on an unprecedented scale, and unlike with a shortage of, say, shoes or oranges, neither the market nor the public sector can swiftly replace the housing units that Airbnb removes from the marketplace. Thus, city officials regulating Airbnb—and regulating STRs generally —must ad- dress conversion and hotelization head on. As detailed in Section IV and the conclusion of this article, policymak- ers should pursue targeted bans and regulations that discourage conversion and hotelization. A simple tax on STRs alone will likely be insufficient to fund the replacement of converted units, and may serve to further incentivize hotelization. In exchange for Airbnb's cooperation with enforcement, city officials could allow Airbnb to participate directly in expanding the hospital- ity market. A. Background: Los Angeles's Affordable Housing Crisis Los Angeles, California, has become America's least affordable rental housing market. In 2014, the average renter in Los Angeles County' paid 3 Los Angeles is a city located within the County of Los Angeles, California. Approxi- mately one-third of Los Angeles County residents live within Los Angeles. Unless stated oth- erwise, the statistics and neighborhoods referenced in this article refer to the city of Los Angeles, not the overall county. County -wide statistics are used as they are here when city - specific statistics are unavailable. 2016] Airbnb and L.A.'s Housing Crisis 231 $1,716 per month.4 And within the city, where most residents rent, the me- dian renting household earned less than $40,000 and spent 47% of its in- come on housing.' One in two middle -income families and nine in ten families from the bottom income quintile are rent burdened, spending at least 30% of their income on rent.6 The city's affordability crisis has developed because of declining real wages, population growth, and zoning policies that favor single-family and luxury housing.' The foreclosure crisis of 2010 exacerbated the affordability crisis by pushing over 100,000 former homeowners into the rental market.' At the same time, wealthier residents repopulated the city core, rapidly gen- trifying low-income immigrant enclaves such as Chinatown and Highland Park.9 As a result, rents increased by 7.3% in 2014 alone.10 Over the past decade, 143,000 market -rate apartments that were once "affordable" (mean- ing that rent constituted 30% or less of a resident's monthly income) to fami- lies earning under $44,000 per year became unaffordable." Los Angeles's public housing infrastructure is ill equipped to protect low-income renters. Experts consider the city's Rent Stabilization Ordinance (RSO) to be weaker than comparable regulations in San Francisco or New York, largely because its 3% cap on annual rent increases does not apply to units built after 1978, and because it does not prevent landlords from ex- ceeding the cap in between tenancies.12 California's Ellis Act exempts from local rent control provisions landlords who purchase a rent -controlled unit from a prior owner, provided that the prior owner is selling in order to exit the business." As neighborhoods gentrify, evictions of RSO-protected te- nants rose by 235% in 2014 as landlords sold their protected units to com- mercial developers, who are in turn exempted from rent control obligations ° Richard K. Green et al., 2014 USC Casden Multifamily Forecast, USC Low CENTER FOR REAL ESTATE, Feb. 2014, at 12, http://lusk.usc.edu/sites/default/files/2014-USC-Casden- Multifamily-Forecast.pdf [http://perma.cc/AM24-EN57]. 5 Ray, supra note 1, at 8. 6Id. at 9 (citing US Census American Community Survey data from 2009-2011). ' Id. at 6, 13. s How Los Angeles County's Housing Market Is Failing to Meet the Needs of Low -Income Families, CALIFORNIA HOUSING PARTNERSHIP COALITION REPORT, May 2014, at 2, http://www .chpc.net/dnld/Housing_Need_LA_Final_060414.pdf [http://perma.cc/7BVZ-TCXT]. 9 See, e.g., York & Fig, AMERICAN PUBLIC MEDIA (2014), http://yorkandfig.com [http:// perma.cc/UYK9-RA46]; see also infra Fig. 2. 10 See ZILLow, supra note 1. " Ray, supra note 1, at 8 (acknowledging that the authors' affordability benchmark is 30% of income). 12 See Economic Study of the Rent Stabilization Ordinance and the Los Angeles Housing Market, Los ANGELES HOUSING DEPARTMENT, 2009, at 8-9; see also Ben Bergman, Has Rent Control Been Successful in Los Angeles?, SOUTHERN CALIFORNIA PUBLIC RADIO, (Sept. 12, 2014), http://www.scpr.org/news/2014/09/12/45988/la-rent-has-rent-control-been-successful- in-los-an/ [http://perma.cc/H5G3-P24R]. 13 California Ellis Act of 1985, Cal. Gov't Code § 7060.7 (West). 232 Harvard Law & Policy Review [Vol. 10 pursuant to the Ellis Act.14 Meanwhile, the Section 8 voucher waitlist has been closed for nearly a decade due to limited funding.15 City officials have been similarly unable to increase the stock of afford- able housing. Since 2006, the city has been able to build only a fifth of the 5,300 affordable units that Los Angeles needed to add each year.16 This is largely because funding has plummeted; the Los Angeles Affordable Hous- ing Trust Fund fell from $100 million in 2008 to just $19 million in 2015, while $1.7 billion in state funds have been cut from the California Redevel- opment Agency and the Community Development Block Grant program." For renters, an affordability crisis is the downside to Los Angeles's ubiqui- tous taquerias, Korean barbeque restaurants, and perennial beautiful weather. B. Airbnb and the Short-term Rental (STR) Phenomenon Los Angeles's affordability crisis has developed alongside the transfor- mation of its tourism sector by STRs—rentals of entire apartments to tour- ists for fewer than thirty days —arranged through Airbnb. A pair of art students founded Airbnb in 2008 to help travelers bypass expensive hotels and gain local experiences by "couch surfing" with strangers.18 Tourists use the Airbnb website or mobile application to browse and reserve accommoda- tions in a city or neighborhood of their choice; instead of staying at a hotel or motel, a tourist can "couch surf' with, or rent an empty apartment from, a stranger in another city during their vacation. For "hosts," Airbnb is a platform through which apartment owners or lease -holders can rent out anything from a spare living room couch to entire apartment units, with Airbnb collecting "host service"19 and "guest service" fees from each transaction.20 On its platform, Airbnb allows both hosts and tourists to exchange pictures of the units, "review" apartments and guests on a five-star system, communicate privately, and securely exchange money. 14 Leo Duran, Ellis Act Evictions in L.A. on the Rise, SOUTHERN CALIFORNIA PUBLIC RA- DIO (Apr. 24, 2015), http://www.scpr.org/news/2015/04/24/51256/ellis-act-evictions-in-l-a-on- the-rise/ [http://perma.cc/N8XZ-ZAEY] (describing how the Ellis Act allows rent -controlled properties to be sold to commercial developers). 16 Ray, supra note 1, at 13. 16 1d. 'Ben Bergman, Garcetti Wants Airbnb to Help Solve L.A. 's Affordability Crisis, SOUTH- ERN CALIFORNIA PUBLIC RADIO, Apr. 16, 2015, http://www.scpr.org/news/2015/04/16/51042/ garcetti-wants-airbnb-to-help-solve-la-s-affordabi/ [http://perma.cc/EW8J-L7NC]; CALIFOR- NIA HOUSING PARTNERSHIP COALITION REPORT, supra note 8. 18 Jessica Pressler, The Dumbest Person in Your Building is Passing Out Keys to Your Front Door! The War over Airbnb Gets Personal, NEW YoRK MAGAZINE (Sept. 23, 2014), http://nymag.com/news/features/airbnb-in-new-york-debate-2014-9/ [http://perma.cc/4ZYV- CMRX]. 19 What are Host Service Fees?, AIRBNB, https://www.airbnb.com/help/article/63/what- are-host-service-fees [http://perma.cc/Q24Q-7AMJ]. 20 Brittany McNamara, Airbnb: A Not So Safe Resting Place, 13 CoLo. ThCH. L.J. 149, 151 (2015). 2016] Airbnb and L.A.'s Housing Crisis 233 Now worth thirteen billion dollars, Airbnb is among the most lucrative poster -children of the so-called "sharing economy," in which technology companies circumvent business regulations and well -established competitors by facilitating direct, peer -to -peer exchanges of goods and services.21 Similar cottage -scale rentals have been possible since the dawn of the Internet, but Airbnb's unique success stems from its secure and exceptionally well -de- signed website, and from its users' positive experiences. Airbnb has transformed Los Angeles's hospitality industry. In 2014, Los Angeles city residents listed 11,401 units on Airbnb, including 7,316 whole -unit STRs.22 By comparison, Los Angeles has 97,000 hotel rooms, though these are dispersed throughout the county.23 Approximately 135,000 of the forty-five million tourists to visit the city in 2014 stayed in an Airbnb unit.24 Airbnb reports that in 2014, it generated $314 million in economic ac- tivity in Los Angeles, and that by redistributing revenue from corporate ho- tels, it helps everyday Angelenos cope with rising rents and economic instability.25 Airbnb touts its positive effects on cultural exchange, and 37% of surveyed guests state that they would not have been able to travel to Los Angeles for as long a period of time without the service.26 Finally, Airbnb presents home -sharing as a sustainable, energy -efficient, and environmen- tally conscious alternative to hotels.27 But criticism of Airbnb's business practices has mounted at a rapid pace. The Venice Neighborhood Council contends that STRs are illegal be- cause they blatantly violate zoning codes banning sub -thirty -day rentals in residential or multifamily zones.28 Hosts' neighbors allege that rowdy tour- ists undermine public safety.29 And unions and hotels complain that Airbnb unfairly competes with hotels by avoiding occupancy taxes and zoning laws, skirting public health regulations, and undercutting unionized hotel workers by connecting its hosts with independently contracted cleaners.30 Los Angeles's "Airbnb economy" does not match the idyllic image Airbnb promotes, in which artistic, young professionals couch surf from Los 21 Molly Cohen & Corey Zehngebot, What's Old Becomes New: Regulating the Sharing Economy, BOSTON BAR JOURNAL (Apr. 1, 2014), http://bostonbarjournal.com/2014/04/01/ whats-old-becomes-new-regulating-the-sharing-economy [http://perma.cc/NN7V-HPU2]. 22 Roy Samaan, Airbnb, Rising Rent, and the Housing Crisis in Los Angeles, LAANE (Mar. 2015), http://www.laane.org/wp-content/uploads/2015/03/AirBnB-Final.pdf [http://per ma.cc/MTJ4-DLJA]. 23 Hugo Martin, Lacking Sufficient Lodging, L.A. Tourism Growth, L.A. TIMES (Apr. 13, 2014), http://www.latimes.com/business/la-fi-tourism-wars-20140423-story.html [http://perma .cc/5CZ6-G25J]. 24 David Owens, Positive Impact of Home Sharing in Los Angeles, AIRsNa (Dec. 4, 2014), http://publicpolicy.airbnb.com/positive-impacts-home-sharing-los-angeles/ [http://perma.cc/ B4W3-LCTL]. 25 Id. 26 Id. 271d. 28 Morris, supra note 2. 29 Id. 3° Samaan, supra note 22, at 15, 22-26. 234 Harvard Law & Policy Review [Vol. 10 Angeles to New York to Madrid, exchanging apartments through Airbnb with their fellow travelers. In practice, 64% of Airbnb listings in Los Ange- les are for STRs of units that are never occupied by their owners or lease- holders, and operate year-round essentially as independent, unlicensed hotel rooms.31 Chances are, an apartment booked through the service is managed by a full-time investor or company that also owns or leases dozens of other Airbnb listings.32 Such companies contract in bulk with decorators and cleaners, manage reservations, and negotiate above -market rent leases with building landlords in exchange for the privilege of renting units out on Airbnb.33 Airbnb's emergence has significant political and policy implications for Los Angeles's tourism sector, sustainability efforts, and labor movement. As a bona fide cultural phenomenon, Airbnb has galvanized opposition among neighborhood organizations, labor unions, and affordable housing advocates. Yet it has also mobilized a groundswell of support from hosts and guests alike. The narrow focus of this article, however, is the effects that Airbnb STRs have on Los Angeles's affordable housing market. II. AIRBNB INCREASES RENTS, INCENTIVIZES HOTELIZATION, AND REDUCES THE AFFORDABLE HOUSING STOCK An Airbnb-affiliated economist claims that Airbnb is a scapegoat for broader economic trends in Los Angeles, and that it has increased monthly rents by just six dollars over five years.34 Rental pricing is certainly a com- plicated topic, but there is a simple underlying dynamic between STRs and the rental market. Tourists and renters are non -overlapping populations with different needs, traditionally served by non -overlapping markets. But be- cause 64% of its listings are STRs for tourists, Airbnb brings an increasing number of the forty-five million tourists who visit Los Angeles each year into direct competition with renters, distorting the housing market's Each apartment or home listed year-round on Airbnb is a home that has been removed from the residential housing market and added to the city's aggregate stock of hotel rooms; I label this phenomenon "conversion." So long as a property owner or leaseholder can earn a substantial premium from Airbnb rather than renting to city residents, there is an overpowering incen- tive to "hotelize" entire buildings, further reducing the aggregate housing 3' Id. at 8. 32 Adrian Kudler, Meet LA's Most Prolific Airbnb Host with 78 Units for Rent, CURBED LA (Mar. 12, 2015), http://la.curbed.com/archives/2015/03/airbnb_los_angeles_most_prolihc_ host_ghc.php [http://perma.cc/4WMD-7MXH]. 33 Id. 34 Kristen Lepore, Apartment Conversions to Airbnb Hotels Driving Up LA Rents, Critics Say, SOUTHERN CALIFORNIA PUBLIC RADIO (Mar. 16, 2015), http://www.scpr.org/news/2015/ 03/16/50321/are-apartment-conversions-to-airbnb-hotels-driving/ [http://perma.cc/PF4S- KBST]. 35 Bergman, Garcetti Wants Airbnb to Help Solve L.A.'s Affordability Crisis, supra note 17. 2016] Airbnb and L.A.'s Housing Crisis 235 stock. Compounding these market distortions, neither the market nor the public sector can swiftly replenish the housing stock, given the time, cost, and legal barriers to developing affordable housing in Los Angeles. In light of this basic dynamic, the following sections detail how this market -mixing function raises rents and reduces the supply of affordable housing in Los Angeles. A. Airbnb Increases Rents in Neighborhoods with a High Density of Airbnb Listings Airbnb listings are concentrated in just seven of the city's densest, most expensive neighborhoods: Venice, Downtown, Miracle Mile, Hollywood, Hollywood Hills, Echo Park, and Silver Lake.36 These tourist destinations account for nearly half of Airbnb listings, and 69% of all Airbnb-generated revenue in Los Angeles.i7 In 2014, rents in these neighborhoods were 20% higher, and increased 33% faster, than rents citywide.38 36 Kudler, supra note 32. 3' Id. 38 Id. FIGURE 1: RENTAL HOUSING AVAILABILITY IN Top 7 AIRBNB NEIGHBORHOODS39 Neighborhood Population (2010) % of Residents that Rent Renters (Estimate) Avg. Household Size Vacancy Rate Total Units (Estimate)40 Airbnb Whole Unit Listings Venice 40,885 68.80% 28,128 1.9 4% 15,422 882 Downtown 34,811 93.40% 32,413 1.6 4% 21,168 220 Miracle Mile 6,197 59% 3,656 2.5 3% 1,508 54341 Hollywood 85,489 92.40% 78,992 2.1 3.50% 38,979 646 Hollywood Hills 22,988 46.50% 10,689 1.8 3.50% 7,154 315 Echo Park 43,832 76% 10,689 3 3.50% 11,507 230 Silver Lake 32,890 64.30% 21,148 2.3 3.50% 9,528 268 Totals 267,092 78.04% 208,440 104,266 3,104 39 Top cities and vacancy rates are from Samaan, supra note 22, at 18. Population and household data are from Mapping L.A. Neighborhoods, L.A. TIMES, http://maps.latimes.com/neighborhoods/ [http://perma.cc/U3XF-FRUM]. 4° Estimate: (Estimated Renters / Household Size) / (1 — Vacancy Rate). 41 Miracle Mile STRs estimated from (total units) x (LA average whole unit STR %). 0 2016] Airbnb and L.A.'s Housing Crisis 237 Figure 1 shows that 3,104 whole -units are listed on Airbnb in these neighborhoods, which have a rental stock of 104,265 units.42 To the extent that whole -unit STRs are listed throughout the year, as much as 3% of the apartments in these districts —which have a low 3.5% vacancy rate —have been removed from the market and converted to tourist accommodations. This distortion is particularly acute in beachside Venice, where, according to one study, 12.5% of the neighborhood's apartments are listed on Airbnb.43 In tight housing markets with near -zero vacancy rates, a sudden reduc- tion in supply naturally increases rents, particularly because neither the mar- ket nor the public sector can swiftly add to the housing stock. Unlike with most commodities, a shortage in housing supply cannot be ameliorated by importing or quickly building additional units. Assuming that a given neigh- borhood permits and can physically accommodate the construction of new housing, building an average unit of rental housing in Los Angeles requires an investment of $315,000, three years just for permitting, and additional time for construction 44 Thus, a sudden removal of between 3% and 12.5% of a neighborhood's housing stock constitutes a supply shock. The price effect of a supply shock in Los Angeles is compounded by annual increases in residential demand, and by the upward pressure that the allure of STR profits puts on property values, which in turn affect property taxes and rents. Even under a simple economic model holding the demand for rental housing constant against a relatively flat supply curve that has a price -elasticity coefficient of 0.200, each 1% decrease in supply would lead to a 0.2% rent increase.45 Under this model, the rent on a $2,680 one -bed- room apartment in Venice would increase by an additional sixty-seven dol- lars per month from the reduction in local supply alone.46 In addition to a supply -related rent increase, the market could be af- fected by demand pressures from the allure of STR profits, and from acceler- 02 Estimated using household size data from Mapping L.A. Neighborhoods, supra note 39. 43 Samaan, supra note 22, at 3. Like the Samaan report, Section II.A of this article as- sumes that whole -unit listings are listed year-round on Airbnb. However, it is likely that the whole -unit STR figures cited from the Samaan report include some housing units that are in fact occupied by the owner or leaseholder for most of the year, and are not listed year-round on the service. Such units are not removed from the residential housing market. 44 Cost per unit from California Department of Housing and Community Development, see Affordable Housing Cost Study: Analysis of the Factors that Influence the Cost of Building Multi family Affordable Housing in California, CAL. DEFT OF Hous. & CMTY. DEV. ET AL. 32 (2014), http://www.hcd.ca.gov/housing-policy-development/docs/finalaffordablehousingcost- studyreport-with-coverv2.pdf [http://perma.cc/A98W-WG6T] [hereinafter Affordable Hosu- ing Cost Study]. See also Ben Bergman, LA Rent Crisis: Why Aren't There More Affordable Apartments?, SOUTHERN CALIFORNIA PUBLIC RADIO (June 12, 2014), http://www.scpr.org/ blogs/economy/2014/06/12/16821/la-rent-crisis-why-aren-t-there-more-affordable-ap/ [http:// perrna.cc/6N8L-Q3UE]. 45 See, e.g., John M. Quigley & Steven Raphael, Regulation and the High Cost of Housing in California 26 (Berkeley Program on Housing & Urban Policy, Working Paper No. W04- 008, 2004) (finding that the price elasticity coefficient to supply is .360 for non -rent controlled rental markets). A regression analysis would be needed to specifically determine the Los An- geles housing market's price elasticity. 46 See Venice Home Prices & Values, ZILLOW, http://www.zillow.com/venice-los-angeles- ca/home-values/ [http://perma.cc/87J8-3TJE]. 238 Harvard Law & Policy Review [Vol. 10 ated inflation at the tail -end of the distribution in a housing market with near -zero vacancies. Put simply, a renter in an Airbnb-saturated neighbor- hood seeking to occupy one of the handful of available apartments is no longer bidding against the local residential rent price, but is instead bidding against the extra profit that STRs can bring. By incentivizing the conversion of residential units to tourist housing, Airbnb causes a small, but notable, increase in citywide rents. In the neigh- borhoods with the greatest concentration of Airbnb listings, this rent -increas- ing effect is much greater; Airbnb accounts for a significant portion of the accelerated rent inflation seen in neighborhoods such as Venice and Silver Lake. B. Airbnb Reduces Supply by Encouraging Illegal Conversion, Hotelization, and Evictions In addition to causing a small increase in rents, Airbnb substantially reduces Los Angeles's aggregate supply of housing. Thus, as residents bid for a smaller number of available units, an increasing number of residents are priced out of their neighborhoods, or even the city, entirely. The phe- nomenon of "hotelization" accelerates this process. Airbnb creates a strong incentive for property owners and renters to permanently "hotelize" entire buildings by renting each unit to tourists through Airbnb rather than finding long-term tenants. This reduces the housing supply, and places demand -side pressure on Los Angeles's dwindling stocks of subsidized and unsubsidized affordable housing. Although Airbnb claims that it mostly provides middle-class renters and homeowners with supplemental income, it generates 89% of its revenue in Los Angeles from whole -unit STRs without on -site hosts.47 To the extent that such units are listed on Airbnb year-round, these figures suggest that Airbnb's business model is based on encouraging hotelization and evictions, not on helping renters lease out spare rooms to make ends meet.48 Although it is unclear what percentage of full-time Airbnb listings whole -building "hotels" constitute, news reports paint a vivid portrait of the hotelization phenomena in action. Entrepreneurs approach landlords in popular neighborhoods expressing their intent to list rental units year-round on Airbnb.49 Investors in Silver Lake and Venice have also bought homes and apartments for this purpose.5° In the Ellison Suites building in Venice, where the average monthly rent is $1,500, one woman rents fourteen units and lists them on Airbnb for $200 47 Samaan, supra note 22, at 9. 48 The rental of spare bedrooms may also distort the housing market by pushing up prices. 49 Tim Logan, Emily Alpert Reyes & Ben Poston, Airbnb and Other Short-term Rentals Worsen Housing Shortage, Critics Say, L.A. TIMES (Mar. 11, 2015), http://www.latimes.com/ business/realestate/la-ti-airbnb-housing-market-20150311-story.html [http://perma.cc/48BR- CRFN]. so Morris, supra note 2. 2016] Airbnb and L.A.'s Housing Crisis 239 per night, for a monthly profit of up to $63,000.51 When investors turn entire residential buildings into unlicensed cottage hotels, their Airbnb listings are doubly illegal. First, residential neighborhoods prohibit the rental of apart- ments for fewer than thirty days. Second, these investors do not obtain zon- ing licenses or hotel permits, do not purchase hotelier's insurance, and do not follow the myriad city regulations that govern hotels. Landlords have joined the gold rush: one landlord in Venice converted ten of his building's thirty units into Airbnb listings, though he says that his rentals are legal because the units are leased for more than thirty days at a time.52 Furthermore, according to local activists, Ellis Act evictions have increased the most in the very neighborhoods where Airbnb listings are con- centrated, "in a `Nike' swoosh shape across Los Angeles ... from Venice, cut through Hollywood and Koreatown, and encompass[ing] parts of Silver Lake and Echo Park."53 C. Airbnb Likely Leads to a Citywide Reduction in Affordable Housing Housing advocates believe that Los Angeles needs 490,340 more af- fordable homes,54 and Los Angeles mayor Eric Garcetti hopes to construct 16,000 new units annually by 2020.55 But in 2014, STRs removed 7,316 units from the city's rental market, a number that seems poised to grow.56 It is easy to imagine a future in which Airbnb's growth —and the correspond- ing removal of rental units from the residential market —outpaces the con- struction of affordable housing in Los Angeles. Although there is currently no data on how many of these removed units were affordable, full-time Airbnb STRs can affect the affordable hous- ing stock in two ways. First, affordable units are particularlyattractive targets for conversion, directly reducing the stock of affordable housing.57 Through the Ellis Act, investors can relieve landlords from the administra- tive burdens of administering rent -controlled or voucher -subsidized housing, and convert newly -purchased, formerly affordable apartments into Airbnb listings, particularly in newly gentrifying neighborhoods. Thus, Airbnb in- centivizes the direct conversion of subsidized or rent -controlled units into lucrative Airbnb listings. Absent regulation, this incentive will continue to influence the marketplace so long as hotel rates sufficiently exceed residen- tial rents. 51 Lepore, supra note 34. 52 Id. 57 Duran, supra note 14. 54 CALIFORNIA HOUSING PARTNERSHIP COALITION REPORT, supra note 8. 55 Plan: Transforming Los Angeles, Crry OF Los ANGELES 52 (2015), https://d3n8a8pro7v hmx.cloudfront.net/mayorofla/pages/ 17002/attachments/original/1428470093/pLAn.pdf? 1428 470093 [https://perma.cc/RW4Q-ZT6D]. 56 Samaan, supra note 22, at 3. 57Id. (describing how trade publications advise landlords on how to convert units to STRs). 240 Harvard Law & Policy Review [Vol. 10 Second, Airbnb indirectly reduces the affordable housing supply by re- ducing the overall housing supply. As a result, the pressure that STRs place on rent prices pushes units out of the margins of affordability for low- and middle -income residents, an effect that cascades throughout the city. In 2014, Airbnb removed 1% of the units from Los Angeles's rental market — and substantially more in some neighborhoods —while monthly rents in- creased by 7.3%.58 And by reducing the overall housing supply, Airbnb is partially responsible for the citywide rent increases that further reduce the supply of affordable housing. III. AIRBNB IS CORRELATED WITH GENTRIFICATION AND MAY EXACERBATE RESIDENTIAL SEGREGATION AND INEQUALITY Airbnb harms the goals of affordable housing advocates in ways be- yond its numerical impact on rents or the housing stock. Although these harms are difficult to measure, they extend beyond the fact that tourists do not sleep at reasonable hours and do not recycle beer cans properly. Airbnb STRs impede integration and exacerbate socioeconomic inequality. A. Airbnb is Correlated with Gentrification in Adjacent Neighborhoods Gentrification occurs when rising rents displace a neighborhood's lower income households, who are replaced by wealthier residents that change the district's "essential character."59 Lower -income residents who are displaced can face longer commutes and lose access to essential community services and institutions.6o Airbnb STRs are concentrated in expensive neighborhoods that have long -since or have never been gentrified. But when middle -income renters are displaced from these neighborhoods, they are pushed into cheaper neigh- boring communities, which they subsequently gentrify. For example, former Venice resident Roman Barrett says he moved to Koreatown—a gentrifying, low-income Asian and Latino enclave —after being priced out of Venice by Airbnb rentals.61 Figure 2 illustrates the relationship between Airbnb-dense communities and their poorer, gentrifying neighbors. These neighborhoods tend to have high poverty rates, yet their rents have risen more rapidly than in Los Ange- les overall. This effect is particularly dramatic in Chinatown, where rents have doubled in just two years. More data is needed to determine whether, 58 See ZILLow, supra note 1. Total number of apartments in LA estimated by dividing census population data by household size data from Mapping L.A. Neighborhoods, supra note 39. 59 Maureen Kennedy & Paul Leonard, Dealing with Neighborhood Change: a Primer on Gentrification and Policy Choices, BROOKINGs INsTrr. CTR. ON URBAN & METRO. POLICY, Apr. 2001, at 5. 601d. at 22, 43. 61 Logan et al., supra note 49. 2016] Airbnb and L.A.'s Housing Crisis 241 say, residents displaced from Silver Lake actually move to Koreatown, but the prevalence of STRs seems to correlate with rent hikes and gentrification in adjacent districts. FIGURE 2: GENTRIFYING DISTRICTS ADJACENT TO AIRBNB-DENSE NEIGHBORHOODS62 Arbnb Dense Neighborhood Income ($) Adjacent Gentrifying Neighborhood (AGN) Income ($) Income Differential ($) Jan 2013 Rent ($) in AGN Jan 2014 Rent ($) in AGN Jan 2015 Rent ($) in AGN 1 Year Rent Increase in AGN (%) 2 Year Rent Increase in AGN (%) Downtown63 15,003 Boyle Heights 33,235 18,232 1639 1750 1881 7.49% 14.77% Echo Park 37,708 Chinatown 22,754 -14,954 1200 2150 2400 11.63% 100.00% Hollywood 33,694 East Hollywood 29,927 -3,767 1581 1661 1710 2.95% 8.16% Hollywood Hills 69,277 East Hollywood 29,927 -39,350 1581 1661 1710 2.95% 8.16% Miracle Mile 61,767 Koreatown 30,558 -31,209 2166 2288 2482 8.48% 14.59% Silver Lake 54,339 Koreatown 30,558 -23,781 2166 2288 2482 8.48% 14.59% Venice 67,647 Culver City 70,774 3,127 2659 2668 3193 19.68% 20.08% Los Angeles Average $49,497 $2,321 $2,362 $2,534 7.28% 9.18% A t. 62 Income data and adjacent districts were determined from Mapping L.A. Neighborhoods, supra note 39. Rent statistics are from Zillow.com. 63 The Downtown income figure is likely distorted by the high concentration of homeless individuals in "Skid Row." Boyle Heights residents are likely income than Downtown renters. pc - lower 2016] Airbnb and L.A.'s Housing Crisis 243 B. Airbnb Might Reduce Integration by Displacing Lower -income Tenants Economic and racial neighborhood integration can lead to a range of positive educational, vocational, and health outcomes for low-income te- nants. But Airbnb reduces neighborhood integration by incentivizing hote- lization, encouraging Ellis Act conversions of rent -controlled units, and driving out lower -income renters.64 Furthermore, some landlords of build- ings protected by the city's Rent Stabilization Ordinance choose to list va- cant units on Airbnb rather than deal with the eviction and rent protections that a full-time tenant would enjoy.6s Because Airbnb STRs are such a nascent phenomenon, further research is needed to measure Airbnb's impact on annual changes in racial and eco- nomic diversity in high -demand neighborhoods. Researchers should also track the displacement of lower income residents from neighborhoods where Airbnb listings are prevalent. C. Unequal Access to Airbnb Exacerbates Racial and Socioeconomic Inequality Airbnb creates winners and losers; it facilitates cultural exchange and provides economic benefits to hosts and tourists, but distributes these bene- fits unequally. Hosts need an Internet connection and cultural savvy just to access the platform. And the fact that just seven of Los Angeles's most ex- pensive neighborhoods, in which approximately 8% of the city's residents live, generate over two thirds of the city's Airbnb revenue suggests that there is little tourist demand for STRs in lower- and middle -income neighborhoods.66 According to Airbnb, 38% of its hosts are of low -to -moderate income, and more than half are renting out couches and spare bedrooms.67 But these hosts only make 11% of the city's Airbnb-supported income.68 Instead, large- scale operators reap the lion's share of the revenue; 6% of Airbnb hosts list multiple units, earning 35% of all Airbnb revenue.69 One such company, Global Homes and Condo, lists seventy-eight units on Airbnb through a pair of friendly, but fake, "front" women.70 These figures suggest that whereas individual "hosts" set their rates based on the value of their apartments, commercial Airbnb operators set their prices against prevailing hotel prices, leading to profits for operators and Airbnb alike. 64 See, e.g., Duran, supra note 14. bs Samaan, supra note 22, at 12. 66 The population -share of Downtown, Echo Park, Hollywood, Hollywood Hills, Miracle Mile, Silver Lake, and Venice calculated from Mapping L.A. Neighborhoods, supra note 39. 67 Id. 68 Samaan, supra note 22, at 13. 69 Kudler, supra note 32. 7° Id. 244 Harvard Law & Policy Review [Vol. 10 In addition, although most Airbnb STRs blatantly violate city laws prohibiting sub -thirty -day apartment rentals, landlords seem to enforce these laws more diligently against renters —particularly those with rent -controlled or subsidized housing —than against apartment or condo owners." It would probably be unfair for publicly subsidized tenants to profit from listing STRs on Airbnb. But the benefits of Airbnb overwhelmingly accrue to relatively wealthy renters and property owners, not to average Angelenos. Finally, Airbnb is based on an amorphous "trust" and "sense of com- munity" endemic to the sharing economy, a trust that extends only to some social groups. A recent study found that African American hosts earn 12% less than white hosts for equivalent rental listings.72 And minority guests are systematically denied lodging by Airbnb hosts.73 If Airbnb hosts are offering a public accommodation, minority Airbnb guests may even have a prima facie case against Airbnb hosts for discrimination in violation of the Fair Housing Act of 1968, which prohibits refusal to rent to a person on the basis of a protected class, such as racial minorities.74 Airbnb facilitates systemic discrimination and reduces racial integration. IV. REGULATING AIRBNB TO PROMOTE EQUITABLE HOUSING A. Criteria for Evaluating Proposals: Solutions Must Address All Problems Because Airbnb STRs are a new and rapidly growing phenomenon, lo- cal and state lawmakers and regulators are just beginning to deal with this problem.75 The author's view is that Los Angeles should prioritize the'hous- ing needs of residents over the needs of tourists when the two aims conflict. However, there are ways to harness the benefits of Airbnb, while regulating it so that it promotes affordable housing, integration, and equity in Los An- geles. But, any policy reforms must directly address the distortive effects that conversion and hotelization have on affordable housing. Ideally, STR regulations should address as many of Airbnb's negative effects on affordable and fair housing as possible. Ideally, they would also address the underlying causes of Los Angeles's housing crisis, including the 71 See, e.g., Samaan, supra note 22, at 18. 72 Benjamin Edelman & Michael Luca, Digital Discrimination: The Case of Airbnb.com 2 (Harvard Bus. Sch., Working Paper No. 14-054, 2014), http://www.hbs.edu/faculty/Publica- tion%20Fi1es/14-054_e3c04a43-c0cf-4ed8-91bf-cb0ea4ba59c6.pdf [http://perma.cc/S6EZ- ABQX]. See also Michael Todisco, Note, Share and Share Alike? Considering Racial Dis- crimination in the Nascent Room -sharing Economy, 67 STANFORD L. REV. ONLINE 121, 122 (Mar. 14, 2015) (discussing the study as proof of pervasive racial bias among Airbnb users). 73 Todisco, supra note 72, at 123. 74Id. at 126. However, only hosts, and not Airbnb itself, could be held liable. 75 Ben Bergman & Alice Walton, Los Angeles Officials Crack Down on "Sharing Econ- omy" Rides, Rental Companies, SOUTHERN CALIFORNIA PUBLIC RADIO (Dec. 9, 2014), http:// www. scpr. org/news/2014/ 12/09/48569/los-angeles-offi cials-crac k-down-on-sharing-econom/ [http://perma.cc/HA8N-TJTH] . 2016] Airbnb and L.A.'s Housing Crisis 245 lack of funding for developing affordable housing. Before signing on to a deal, policymakers and community stakeholders should ask whether a proposal: 1. Addresses and combats neighborhood and city-wide rent increases; 2. Reduces or adds to the city's market -rate and affordable hous- ing stock; 3. Discourages the "conversion" of existing affordable units into STR listings; 4. Eliminates incentives that encourage "hotelization" of rental units; 5. Protects residents from displacement and eviction; 6. Addresses cultural and economic gentrification; 7. Exacerbates socioeconomic disparities or increases access to Airbnb's benefits; 8. Promotes socioeconomic integration. B. Evaluating Mayor Garcetti's Plan to Tax STRs in Order to Fund Affordable Housing On April 16, 2015, Mayor Garcetti announced a deal he had proposed to Airbnb. Under his proposal, Los Angeles would levy a 14% occupancy tax on all Airbnb facilitated rentals.76 This is expected to generate at least $5 million annually, although this static projection does not take into account expected increases or tax -induced decreases in Airbnb activity.77 These funds would be allocated each year to Los Angeles's Affordable Housing Trust Fund, which has been reduced from $100 million in 2008 to just $19 million in 2015.78 Without taking matching funds into account, $5 million could fund the development of sixteen affordable units at an average cost of $315,000 per unit.79 However, Airbnb rentals remove 7,316 units —which does not include units that are listed only intermittently on Airbnb—year-round from Los An- geles's rental market. Even if Airbnb stops expanding, it would take 457 years for occupancy taxes to fund the full replacement of the units that Airbnb removes from the city's rental market. To use another rough calcula- tion, a single studio apartment in Silver Lake that is booked on Airbnb for an average of $132 per night at a remarkable 60% rate-219 days a year- 76 Bergman, Garcetti Wants Airbnb to Help Solve L.A.'s Affordability Crisis, supra note 77 Garcetti's Airbnb Tax Plan Does Little to Increase Affordable Housing, S. CAL. Pus. RADIO (Apr. 16, 2015), http://www.scpr.org/programs/take-two/2015/04/16/42416/garcetti-s- airbnb-tax-plan-does-little-to-increase/ [http://perma.cc/Y8CW-435Z]. 78 Bergman, supra note 17. 79 Average cost per Los Angeles County publicly built affordable housing unit from Cali- fornia Department of Community Development, see Affordable Hosuing Cost Study, supra note 44, at 31. 17. 246 Harvard Law & Policy Review [Vol. 10 yields $28,908 for its host, generating $4,047 in occupancy tax revenue for Los Angeles each year.80 Such a unit would take seventy-eight years to fund the construction of its own replacement. This may not be an apples -to -apples comparison because Airbnb should not shoulder the entire burden of replacing a converted unit of affordable housing when, presumably, an affordable housing developer would recoup its costs through tenants' rent payments. Take, then, the hypothetical Silver Lake apartment in the paragraph above and assume that it was an affordable unit of housing for a median -income city resident. Perhaps it would be rea- sonable at least to expect STR taxes to cover the costs of construction during the period that Airbnb leaves Silver Lake with one fewer unit of housing. Assume that a developer spends four years building (three years of per- mitting, one year of construction) a unit of affordable housing in Silver Lake, and that the unit will be habitable for fifty years. At a cost of $315,000, the unit will cost the developer $6,300 per year in construction costs alone over the 50-year period. If Airbnb was responsible for covering the costs of four years of construction, it would still have to generate $25,200 in taxes over four years, requiring a daily tax rate of 21.8%. The back -of -the -envelope calculations in this hypothetical demonstrate the com- plications involved in trying to fund the replacement of converted or hotelized units of housing through an occupancy tax on STRs. An occupancy tax of 14% might be insufficient to meet Mayor Garcetti's stated policy goals. Furthermore, Garcetti's plan would not address gentrification or rent increases in neighborhoods where Airbnb listings are prevalent. And de- pending on where new units are built, it is unclear whether the neighbor- hoods most affected by Airbnb would benefit from new housing construction. After all, the city may build in lower -income neighborhoods that offer taxpayers a better "bang for your buck" than Venice or Silver Lake. This could concentrate poverty, and decrease economic integration in affluent neighborhoods, unless the funds were used to fund mixed -use or affordable developments in higher income neighborhoods at higher cost to the Trust Fund. Garcetti's plan may spread demand and help lower income and minority hosts. But this could backfire by contributing to gentrification in those neighborhoods, especially if taxes push STR demand into the already gentri- fying districts adjacent to the neighborhoods that are popular on Airbnb. One final concern is that such a deal would formally excuse Airbnb from a wide range of liability, from safety -related issues to STR regulation. Legalization may also spur STR growth. And Garcetti should specify how his plan would address evictions, illegal conversions, and discrimination by Airbnb hosts and renters during the time period when replacement housing is being constructed. 80 See Airbnb, https://www.airbnb.com/s/Los-Angeles?neighborhoods%5B%5D=Silver+ Lake (last visited Dec. 2, 2015). Occupancy rate figure from Martin, supra note 23. 2016] Airbnb and L.A.'s Housing Crisis 247 C. Evaluating Alternative Tax and Redistribution Schemes Mayor Garcetti's plan directly addresses Los Angeles's affordable hous- ing shortage, but might not replace the units that Airbnb removes from the rental market. Allocating STR taxes to construct affordable housing also does not address segregation and gentrification. There may be more effective ways to tax and redistribute the revenue that STRs generate., The city can be ambitious about tax rates and tax Airbnb at a rate higher than the 14% occupancy fee levied on licensed hotels. As a matter of policy, it is desirable that the brunt of any taxes levied on Airbnb would be borne by two relatively wealthy populations: tourists and property owners. Further- more, whereas hotel guests are ostensibly paying for city services with their taxes, Airbnb guests could also be paying to replenish the housing stock. If Airbnb tourists are lookingto avoid paying a premium to stay in hotels, Los Angeles could tax hosts to any extent such that the price of an Airbnb is less than the price of an equivalent hotel room without de facto banning STRs. Although there are political limits to tax levels, officials need not set a 14% pre -negotiation upper tax limit on Airbnb listings. Los Angeles could promote economic diversity and integration by di- recting tax revenue towards a municipal housing voucher program, which would increase economic integration. And if these vouchers were given to low-income residents of Airbnb-dense buildings or neighborhoods, it would allow them to stay in their homes. However, like Mayor Garcetti's plan, such taxation and redistribution schemes may not be able to replace all of the units that Airbnb removes from the residential market. Other measures are necessary to complement these tax schemes and promote integrated, afforda- ble neighborhoods throughout Los Angeles. D. Evaluating a Ban or Targeted Restrictions on Airbnb STRs STRs increase rents for residents and reduce the supply of affordable housing by removing units from the housing market through conversion and hotelization. Given Los Angeles's low vacancy rate, it is likely that thousands of residents have been displaced due to the 7,316 year-round list- ings on Airbnb. On the other hand, Airbnb's economists claim that in 2014, Airbnb helped add $314 million in economic activity and 2,600 jobs to Los Angeles's economy.81 Although this does not take into account losses to rent- ers and other community stakeholders, it is plausible that Airbnb simultane- ously produces economic benefits while exacerbating the city's affordability crisis. This article approaches the issue of Airbnb from the lens of weighing its effect on Los Angeles's affordable housing crisis, and is not an attempt to quantitatively measure the net economic gains or losses produced by Airbnb. Policymakers seeking to regulate Airbnb must make both economic and 81 Owens, supra note 24. 248 Harvard Law & Policy Review [Vol. 10 value -driven decisions in order to weigh the importance of promoting af- fordable housing. A blanket ban on STRs would end Airbnb's role in exacerbating Los Angeles's affordability crisis. For residents displaced by Airbnb, a blanket ban would likely be preferable to any solution that insufficiently addresses the corrosive effects of STRs. Enforcing anti-STR laws could also halt the evictions, displacement, and gentrification that follow when Airbnb saturates a neighborhood. That said, a ban would not add to Los Angeles's affordable housing stock itself, and would deprive the city of Airbnb's benefits. Fur- thermore, bans that deprive property owners of Airbnb's benefits implicate Constitutional protections for property owners under the three -pronged Penn Central takings test, which assesses: (1) the economic impact of a regulation on affected parties, (2) the extent to which a regulation frustrates investor expectations, and (3) the extent to which a regulation is tailored to promote general welfare or is arbitrary.82 Property law scholar Jamila Jefferson -Jones suggests that New York's anti-STR regulations may violate legitimate investor -backed expectations, and are not "roughly proportional," meaning that the severity of existing laws banning STRs are not commensurate to the value of the regulations: protecting public safety, hotels, and neighborhood property values.83 How- ever, Professor Jefferson -Jones's analysis underestimates the public's legiti- mate interest in protecting affordable housing.84 These arguments demonstrate how outright bans may become increasingly untenable given Airbnb's prevalence. At the moment, however, most of the STRs listed on Airbnb in Los Angeles's residential and mixed -use (business and residential) zones are illegal. Alternatively, city officials could legalize STRs but place targeted re- strictions on them rather than enforce the existing blanket ban. Such an ap- proach could reasonably prevent Airbnb from distorting the housing market while allowing tourists and residents to benefit from it. However, such a strategy would have to address conversion and hotelization, or otherwise ameliorate Airbnb-induced reductions in affordable housing supply. For example, enforcement agencies could choose to target unlicensed hotels and prevent hotelization. Perhaps purchasers of property could be banned from using Airbnb for a one-year "cool -down" period. This would put a check on price hikes and discourage hotelization. Such a ban would protect the existing affordable housing stock. However, such a requirement may invite scrutiny under the investor expectations prong of the Penn Cen- tral test where investors, prior to enactment of the rule, bought a building for the purpose of hotelization. But the city can assert that the restriction is 82 See Penn Cent. Transp. Co. v. City of New York, 438 U.S. 104, 152-53 (1978). 83 Jefferson -Jones, Airbnb and the Housing Segment of the Modern "Sharing Economy": Are Short -Term Rental Restrictions an Unconstitutional Taking?, 42 HASTINGs CONST. L.Q. 557, 566-68 (Spring 2015). 84 Pennell v. San Jose, 485 U.S. 1, 13 (1988) (affirming public's right to preserve af- fordability through measures such as rent control). 2016] Airbnb and L.A.'s Housing Crisis 249 necessary to prevent public nuisances and protect the affordable housing stock. And because it would not constitute rent control, a cool -down require- ment would not trigger the intervention of the Ellis Act if a purchased prop- erty was previously rent -controlled. Similarly, policymakers could discourage "conversion" by prohibiting landlords who have evicted a tenant without fault —meaning that the tenant is not evicted for violating his or her lease —from listing the unit in question on Airbnb for a one-year cool -down period. This cool -down period can be imposed on all landlords, or just landlords of subsidized units. Either ap- proach would discourage wanton conversion of rental stock into tourist accommodations. Another approach would be to assign STR permits and restrict the num- ber of permits per square mile or neighborhood. However, geographically targeted restrictions on STRs would be difficult to enforce, and it would be difficult to administer a permit system that is equitable to all prospective hosts. Furthermore, this might encourage the spread of STRs into newly gen- trifying neighborhoods. For example, such a policy could restrict the culling of Echo Park's affordable housing supply while exacerbating the af- fordability crisis in neighboring Chinatown. Another solution would be to mandate that Airbnb STRs be allowed only in buildings that meet a target affordability threshold. For example, the city could promote inclusionary housing by only allowing STRs in neighbor- hoods or buildings where 30% of the units are affordable, which would in- centivize property owners to subsidize apartments that are currently priced at the market rate in order to "free up" units for Airbnb listings. This would directly address STRs' effects on neighborhood socioeconomic integration. But such solutions would be cumbersome to calculate and difficult to en- force. Furthermore, such a benchmark may be considered exactions that are not roughly proportional to the actual affordability and public safety problems that STRs create.85 Finally, such an approach would increase the stock of affordable housing, but simultaneously reduce Los Angeles's overall stock of residential housing. Lastly, city officials could prevent hotelization by legalizing STRs, but limiting the number of days per year that a host can list a unit without going through the hotel permitting process. This would disincentivize the conver- sion and removal of units from the housing market, protect the housing stock, and tamp down speculation and rent inflation. Such an approach would be subject to an investor -backed expectations takings challenge, but the city could argue that the limitation is necessary to protect the residential housing stock. Should Los Angeles decide to adopt some sort of enforcement strategy towards Airbnb, policymakers should empower regulators to enforce zoning and hotel licensing laws. Regulations on Airbnb STRs are municipal in na- ture, concerning issues such as zoning and hotel licensing. California coun- 85 Janula Jefferson -Jones, supra note 83, at 568. 250 Harvard Law & Policy Review [Vol. 10 ties have not coordinated to regulate STRs on a county or statewide basis. Although Los Angeles has not committed resources to enforcing STR laws, the City Attorney's office has asked hosts to pay occupancy taxes.86 But it is unclear whether these warnings were symbolic or whether the City Attorney has the resources to enforce these laws.87 Policymakers should empower regulators to enforce zoning and hotel licensing laws. Although resources are limited, this should be a priority given the havoc that STRs wreak on the residential housing market. And rather than targeting single -unit hosts, regulators can target the cottage in- dustry of "Airbnb leasing companies" that are rapidly removing units from the rental housing market, thereby discouraging hotelization.88 Perhaps taxes can fund enforcement officers or a regulatory body within the city planning department. In the absence of a new regulatory agency, Airbnb should at least make it possible for the city to track STRs and crack down on the most egregious activities. Perhaps hosts who post listings more than once a month —which indicates that a host has converted a unit —should have to register with the city. Los Angeles should also crack down on large-scale operators who manage "virtual hotels" with multiple rooms across the city. And investors should be prevented from converting entire buildings into cottage hotels. Airbnb's cooperation is critical to any effective enforcement scheme that prevents conversion and hotelization. Per- haps city officials can negotiate with Airbnb and exchange greater coopera- tion with targeted enforcement efforts for a general legalization of non- commercial -scale STRs. E. Promote Affordable and Fair Housing Through Community Benefits Agreements In addition to regulating and taxing Airbnb, Los Angeles should adopt the community benefits agreement (CBA) model that local industries have negotiated with unions and affordable housing advocates.89 Under a typical CBA, developers of large projects are given tax credits and the permission to build lucrative developments such as luxury apartments, malls, or sports sta- diums in exchange for a commitment to hire local residents, set aside afford- able housing, or donate to public projects.90 So too here, policymakers, advocates, unions, and developers would come together and bring Airbnb in as a partner, helping Los Angeles's low-income and minority communities share in Airbnb's benefits.9'.92 86 Bergman & Walton, supra note 75. 87 Id. 88 See, e.g., Kudler, supra note 32. 89 See, e.g., Harold Meyerson, L.A. Story, AMERICAN PROSPECT (Aug. 6, 2013), http:// prospect.org/article/la-story-0 [http://perma.cc/2J9H-NLB4]. 9° Id. 9' Id. 92 If Airbnb signs a CBA with community stakeholders, rather than the city, a CBA would likely not violate the Penn Central exactions test. 2016] Airbnb and L.A.'s Housing Crisis 251 First, Airbnb should ban racially discriminatory hosts and users and make the approval process race -blind. Airbnb could also use its platform, market penetration, and technology to connect hosts with cleaning services that pay living wages. Additionally, Airbnb could apply its proprietary tech- nology to help low-income renters find low-cost or public housing. Airbnb and developers could also be given incentives to concurrently expand the supply of housing and the supply of tourist accommodations, removing tourists from the residential housing market. Developers could be given permits to construct sanctioned "Airbnb hotel" apartments in neigh- borhoods with a high density of Airbnb listings. Qualifying newly con- structed buildings could be exempt from the bans, taxes, or restrictions on STRs that would govern existing residential housing. These permits could be contingent upon Airbnb or the developer signing a CBA that ensures work- ers are fairly paid, and require that at least 15% of a hotel's units be rent - controlled or subsidized for low-income residents.93 The remaining units could be rented at market -price, or listed on Airbnb. An even better ratio of "hotel" units to affordable residential units would be one that directs hotel developers to reserve as many affordable units as possible while earning market -rate returns. In any combination, an "Airbnb hotel" would directly expand the affordable housing stock, expand the aggregate housing stock, increase Los Angeles's supply of hotel rooms, and promote integration. V. CONCLUSION: REFORMING STRs TO ADDRESS THE HOUSING CRISIS As gentrification transforms Los Angeles's urban core, policymakers must adapt to better regulate new technologies such as Airbnb. The best regulation comes from precise data, so additional research is needed on how STRs affect evictions and rents. To an extent, Airbnb is a response to, not a cause of, gentrification and Los Angeles's affordable housing crisis. But policymakers must understand that Airbnb profits from illegal rentals that cause rent increases, reduces the housing supply, and exacerbates segrega- tion. Even an outright ban on STRs would be better for low-income residents than the unregulated status quo. Airbnb must become a responsible partner and facilitate, not hinder, the goals of affordable housing advocates. In preparing to negotiate with Airbnb, Los Angeles can learn from the approaches that other cities have taken to regulate Airbnb. San Francisco, Chicago, and Washington, D.C. negotiated with Airbnb lobbyists to legalize STRs and apply hotel occupancy taxes to STRs.94 Aside from New York, 93 This is the same percentage that is required for other developments that seek density bonuses from the city. LA Affordable Housing Incentives Guidelines 2014, http://cityplanning. lacity.org/Code_Studies/Housing/DRAFTUPDATEDAffordHousingGuide.pdf [http://per ma.cc/ZKJ4-7JUH]. 94 Bergman, Garcetti Wants Airbnb to Help Solve L.A.'s Affordability Crisis, supra note 17. 252 Harvard Law & Policy Review [Vol. 10 policymakers have avoided suggesting outright bans, perhaps because Airbnb has mobilized grassroots support and formed sophisticated lobbying and advocacy organizations.95 Airbnb spent $100,000 in 2014 alone to lobby Los Angeles officials.96 After proposing and evaluating various reforms, my recommendation is that Los Angeles adopt a three -pronged strategy. First, the city should pre- vent the hotelization and conversion of existing residential buildings and units of housing. Airbnb provides a tremendous benefit to tourists and re- sidents alike when it allows tourists to travel off the tourist -beaten path. Such adventures are a win -win for hosts who are merely using Airbnb for a month per year to subsidize their own travels, or who are using Airbnb to earn enough money to keep their home after losing a job. But given the inelasticity of the housing supply, it is inappropriate for investors to permanently remove units from the residential housing stock in order to cater to tourists. Fundamentally, I would argue that the raison d'etre of Los Angeles's housing stock is to serve its residents. Thus, Los Angeles should ban year-round listings of apartments on Airbnb and similar websites, perhaps by emulating San Francisco's proposed "Ballot Measure F' and set- ting a seventy -five-day limit on the number of days that a unit can be listed.97 Bona fide homeowners or leaseholders who occasionally host guests through Airbnb can be exempted from any taxes that would otherwise be levied on STR transactions. Furthermore, Los Angeles should institute a one-year cool -down period before any formerly subsidized or rent -controlled home can be listed on Airbnb. To prevent hotelization and professional Airbnb management, Los Angeles should set a hard cap on the number of units that any individual or business can list on Airbnb in a given year. Finally, Los Angeles should set a hard cap on the number of units in a building that property owners and man- agers can list on Airbnb. In order to incentivize developers and Airbnb itself to build additional affordable and market -rent housing, Los Angeles should apply these restric- tions to existing residential buildings and units, but allow newly -developed building managers and owners to set aside a greater number of units for STRs. The city can also grant additional exemptions for developers who set aside newly -constructed units for low-income residents, thereby directly in- creasing the affordable housing stock and promoting economic integration. Along this line, the city can bring developers, unions, advocates, and Airbnb—the parent company —together to sign Community Benefits Agree- ments. The parties can agree to build "Airbnb hotels" in tourist destinations 95 Logan et al., supra note 49. 96 See, e.g., Short Term Rental Advocacy Center, http://www.stradvocacy.org/ [http://per ma.cc/A996-EWRB]. 'S.F., Cal., Admin. Code § 41.A.4, 41.A.5 (2015), http://sfgov2.org/ftp/uploadedfiles/ elections/candidates/Nov2015/ShortTennRentals_Text.pdf [http://perma.cc/LTS4-4RP6]. 2016] Airbnb and L.A.'s Housing Crisis 253 that set units aside for low-income residents, provide good jobs, and ban discrimination. Finally, Los Angeles should implement a 14% occupancy tax on any unit that is listed on Airbnb for greater than the seventy -five-day cap men- tioned above. This would prevent Airbnb hosts from gaining an unfair com- petitive advantage over hotels. The city can allocate this revenue towards code enforcement, and for funding mixed -income housing in Airbnb-dense neighborhoods, thereby promoting integration and preventing displacement. Airbnb is organizing constituents and mobilizing political support.98 This is why political stakeholders must regulate Airbnb STRs now, before the industry calcifies into Los Angeles's political and economic structure. At the moment, local politics are favorable to increased regulations. Unions and neighborhood associations .have united with their political adversaries —ho- tels and developers —to speak out against Airbnb.99 By framing the public narrative around the displacement that STRs cause, regulators can also win the support of influential faith leaders, as well as of the public. If the city brings Airbnb together with community stakeholders, the city can eliminate Airbnb's corrosive effects on fair and affordable housing, and help all com- munities benefit from safe, integrated, and affordable neighborhoods. 98 Logan et al., supra note 49. 99 See, e.g., Keep Neighborhoods First, http://www.keepneighborhoodsfirst.com/ [http:// perma.cc/6YHE-A7HJ] (coalition of labor and neighborhood councils). Residential Definitions and Restrictions Low Density Residential - Single Family Structures Non -Owner Occupied 30 day or less rental Rental License Req Air B&B allowed Month or longer lease Rental License Req 1 Kitchen limit "single residential community' No boarding house 1 Lease for entire home Group home allowed Owner Occupied 30 day or less rental No rental license required CUP Required to run a B&B Max. 12 people, 14 clays Parking, breakfast req Month or longer lease No rental license required 1 Kitchen limit "single residential community No boarding house Adult family home allowed Multiple roommates? ft Medium and High Density Residential - Multi -Family Structures Non -Owner Occupied 30 day or less rental Not Permitted Month or longer lease Rental License Req 1 Kitchen limit "single residential community' 1 Lease for entire home Family or Roommates CUP for boarding house Owner Occupied 30 day or less rental No rental license required CUP Required to run a B&B Max. 12 people, 14 days Parking, breakfast req When does a multiple roommate situation become a boarding house? Could limit occupancy to 2 people per bedroom in all residential structures. Limit ADUs to 1 or 2 bedrooms? Month or longer lease No rental license required 1 Kitchen limit "single residential community" Multiple roommates? CUP for boarding house Adult family home allowed ADU - Owner Adjacent 30 day or less rental Rental License Req Air B&B allowed? Month or longer lease Rental License Req 1 Kitchen limit r'� �c 2017 Tukwila Municipal Code Residential Dwelling Definition Update Last Updated 5/10/2017 Table of Contents I. Proposed Amendments to TMC Ch. 18.06, Definitions: II. Proposed Amendments to TMC Ch. 18, Table 18-6 6 III. Alternative Short -Term Rental Provision 7 IV. Proposed Amendments to Title 5, Chapter 6 - Residential Rental Business 8 I.. Proposed Amendments to TMC Ch. 18.06, Definitions: 18.06.XXX Accessory Dwelling Unit "Accessory Dwelling Unit" means one or more rooms that are located within an owner -occupied dwelling unit, or within an accessory structure on the same lot as an owner -occupied dwelling unit, and that meet the following configurations: a. located on a minimum lot o 00 quare feet; b. the accessory dwelling unit is no more than 33% of the square footage of the primary residence and a maximum of 1,000 square feet, whichever is less; c. one of the residences is the primary residence of a person who owns at least 50% of the property, d. dwelling unit is in orp� esorated)fito the primary detached single-family residence, so that both units appear to be of the same design -as if constructed at the same time; e. minimum of three parking spaces on the property with units less than 600 square feet, and a minimum o ours aces for units over 600 square feet; and f. the units are not sold as condominiums. 18.06.063 Bed and Breakfast 1 odging • 18.06.073 Boarding House —VA A- c,rt, ere coy -se �� A-`\ J t,..)Leil CA)? ,;\ M- -2 , ►-\t "Boarding house" means a fesidentiel building ef-use designed to contain one dwelling unit, which provides housing en _ hort commercial basin for more than ondtenants, pursuant to more than one Lease P Agreement, for compensation. Boarding houses a`e pro edtin all zones. The following uses are ex�Q not considered a boarding house: , hotels and motels, extended -stay hotels or motels, shelters, and facilities which provide short- or long-term care for tenants suffering from physical, mental or other disabilities, Assisted Living Facilities: Convalescent/Nursing Homes, r Correctional Institutions, Diversion Facilities, Diversion Interim Services Facilities, and Dormitories.) t� rj \t \st_ej d\-\ Pg. 1 of tin ,c3tL( 2017 Tukwila Municipal Code Residential Dwelling Definition Update Last Updated 5/10/2017 18.06.237 Dormitory "Dormitory" means a residential building or use which provides housing for students attending an affiliated school or housing for members of a religious order. Dormitories may include kitchens, cafeterias, meeting rooms, laundry rooms and other accessory facilities to serve the residents of the facility. The , owner/operator of a dormitory shall comply with the provisions of the Residential Rental Business License and Inspection Program, pursuant to TMC Ch. 5.06. 18.06.247 Dwelling, Multi -Family "Multi -family dwelling" means a building designed to contain two or more dwelling units. Duration-ef A multi -family dwelling shall not have an accessory dwelling unit. 18.06.248 Dwelling, Single -Family "Single-family dwelling" means a building, modular home or new manufactured home, designed to contain no more than one dwelling unit. A single-family dwelling may include plus one accessory dwelling unit. 18.06.249 Dwelling Unit ORIGINAL: "Dwelling unit" means the whole of a building or a portion thereof providing complete housekeeping facilities for a group of individuals living together as a single residential community, with common cooking, eating and bathroom facilities, other than transitory housing or correctional facilities as defined in this code, which is physically separated from any other dwelling units which may be in the same structure. [Alternate] "Dwelling unit" means the whole of a structure or building, or a portion thereof, providing complete housekeeping facilities for a group of individuals living together as a single residential community, with one kitchen o�neey.. more sleeping rooms and bathroom facilities containing a toilet, and a showei`-o�lbathtub, i_ c, which is physically separated from any other dwelling units which may be in the same structure. [Alternate] "Dwelling unit" means a room or rooms located within a structure that are occupied or intended to be occupied by not more than one household as living accommodations independent from any other household, and that meets the following configurations: a. a complete food preparation area. A room or portion of a room designed, arranged, intended or used for cooking or otherwise making food ready for consumption that contains a sink, and a stove or range, a refrigerator, and a countertop, shall be considered a complete food preparation area; and b. a bathroom containing a toilet, and a shower or bathtub; and c. one or more sleeping rooms. Pg. 2 of —c c7 VA O cr) 0_, v L J.L 7 ��odvliJW\ 6i'24„ (Ne- 2017 Tukwila Municipal Code Residential Dwelling Definition Update Last Updated 5/10/2017 18.06.287 Extended -Stay Hotel or Motel "Extended -stay hotel or motel" means a building or buildings or portion thereof, the units of which contain independent provisions for living, eating and sanitation including, but not limited to, a kitchen sink and permanent cooking facilities, a bathroom and a sleeping area in each unit, and are specifically constructed, kept, used, maintained, advertised and held out to the public to be a place where temporary residence is offered for pay to persons for a minimum stay of more than 30 days and a maximum stay of six months per year. Extended -stay hotels or motels shall not include dwelling units, as defined in this section, for permanent occupancy. The specified units for extended -stay must conform to the required features, building code, and fire code provisions for dwelling units as set forth in this code. Nothing in this definition prevents an extended -stay unit from being used as a hotel or motel unit. Extended -stay hotel or motels shall be required to meet the hotel/motel parking requirements. Not included are institutions housing persons under legal restraint or requiring medical attention or care 18.06 Guest Cottage, Guest House. �'1 4 �� �� f''LtrJ4 "Guest Cottage, Guest House" means a dwelling unit on a residential lot, separate from the main residential building, which is used to accommodate nonpaving guests of the residents or domestic employees of the residents and which is not rented. 18.06.440 Hotel "Hotel" means a building, or buildings or portion thereof, the units of which are used, rented or hired out as sleeping accommodations only for the purpose of transitory housing in which access to individual units is predominantly by means of common interior hallways. Hotel rooms shall have their own private toilet facilities, and may or may not have their own kitchen facilities. Hotels shall not include dwelling units, as defined in this section, for permanent occupancy. A central kitchen, dining room and accessory shops and services catering to the general public can be provided. No room may be used by the same person or persons for a period exceeding thirty (30) calendar days per year. Not included are institutions housing persons under legal restraint or requiring medical attention or care. 18.06.XXX Kitchen "Kitchen" means an area within a structure that is used or designed to be used for the preparation or cooking of food and that contains one or both of the following: 1. Cooking appliances or rough in facilities including, but not limited to: ovens, convection ovens, stoves, stove tops, built-in grills or microwave ovens or similar appliances, 240 volt electrical outlets or any gas lines; .nd/o ) 2. A sink less than 18 inches in depth with a waste line drain 1-1/2 inches or greater in diameter and a refrigerator exceeding five (5) cubic feet in capacity. f Alternate] "Kitchen" means an area within a structure that is used or designed to be used for the preparation or cooking of food and that contains two of the following: Pg. 3 of 2017 Tukwila Municipal Code Residential Dwelling Definition Update Last Updated 5/10/2017 1. Cooking appliances including, but not limited to: ovens, convection ovens, stoves, stove tops, built-in grills or similar appliances, 240 volt electrical outlets or any gas lines; 2. A sink less than 18 inches in depth with a waste line drain 1-1/2 inches or greater in diameter- 3. A refrigerator exceeding five (5) cubic feet in capacity. 18.06.585 Motel "Motel" means a building or buildings or portion thereof, the units of which are used, rented, or hired out as sleeping accommodations only for the purposes of transitory housing, in which access to individual units is predominantly by means of common exterior corridors. A motel includes tourist cabins, tourist court, motor lodge, auto court, cabin court, motor inn and similar names but does not include accommodations for travel trailers or recreation vehicles. Motel rooms shall have their own private toilet facilities and may or may not have their own kitchen facilities. Motels are distinguished from hotels primarily by reason of providing adjoining parking and direct independent access to each rental unit. Motels shall not include dwelling units, as defined in this section, for permanent occupancy. No room may be used by the same person or persons for a period exceeding 30 calendar days per year. Not included are institutions housing persons under legal restraint or requiring medical attention or care 18.06.XXX Rental or Lease Agreement (Rental or Lease agreement" means all agreements, whether written or oral, which establish or modify the terms, conditions, rules, regulations, or any other provisions concerning the use and occupancy of dwelling unit or a portion thereof.' Commented KCAU: Taken from RCW 59.18.030(25) (Residential landlord -Tenant Act) 18.06.685 Residence ` "Residence" means a building or structure, or portion thereof, which is designed for and used to provide a " �,AW`t.� GLD t,- t eJ `� r S? place of abode for human beings. 18.06.800 Structure "Structure" means a combination of materials constructed and erected permanently on the ground or attached to something having a permanent location on the ground, but excluding all forms of vehicles even though immobilized. Not included are residential fences up to six feet in height, retaining walls or rockeries ' with up to four feet of exposed face, and similar improvements of minor character. 18.60.XXX Transient accommodations. n "Transient accommodations" means the rental of any building or portion thereof used for the purpose of Ci A t� `7't providing lodging for periods of Tess than 30 days, for compensation. fSingle-family dwellings, accessory dwelling units, and multi -family dwellings shall not be used for transient accommodations.) ,JThis Pg. 4 of 2017 Tukwila Municipal Code Residential Dwelling Definition Update Last Updated 5/10/2017 prohibition does not apply to Assisted Living Facilities, Convalescent/Nursing Homes, Correctional Institutions, Diversion Facilities, Diversion Interim Services Facilities, Shelters, and Dormitories.) 18.60:XXX Wet bar. "Wet Bar" means food preparation facilities that include the following: (I) a single sink with a waste drain line no greater than 1-1/2 inches in diameter; and (2) an under counter refrigerator no greater than 5 cubic feet in size with cabinets and/or counter top area not exceeding 6 lineal feet. A wet bar shall not include a refrigerator in excess of 5 cubic feet in size or a kitchen sink greater than 2 square feet in size or a gas or ' electric range, stove top and/or oven (but may include a microwave oven). Pg. 5 of 2017 Tukwila Municipal Code Residential Dwelling Definition Update Last Updated 5/10/2017 II. Proposed Amendments to TMC Ch. 18, Table 18-6 [Pg. 8] 5. and brc „ .....nagb _/owner . 3t li. ,. o.. ,b tho maximum b b b [Pg. 9] I17. Accessory dwelling unit, provided a. minimum lot of 6,500 7 00 square feet; b. accessory dwelling unit is no more than 33% of the square footage of the primary residence and a maximum of 1,000 square feet, whichever is less; c. one of the residences is the primary residence of a person who owns at least 50% of the property, d. dwelling unit is incorporated into the primary detached single-family residence, not a -separate so that both units appear to be of the same design as if constructed at the same time; e. minimum of three parking spaces on the property with units less than 600 square feet, and a minimum of four spaces for units over 600 square feet; and f. the units are not sold as condominiums. [Alternative Footnote] A single family dwelling may be used for the purpose of providing lodging for periods of more than 31 days, for compensation, provided: a. There shall be single Lease Agreement, which shall be for either the entire home, or the portion thereof that is rented. If the single Lease Agreement is for a portion of the single family dwelling, the owner must reside on the premises for the duration of the rental. b. No more than two occupants per bedroom shall be accommodated under the single Lease Agreement, at any one time. c. An owner may rent as accommodations an accessory dwelling unit connected with the single family dwelling, but the owner must reside on the premises for the duration of the rental. d. Rental accommodations shall meet all local and state regulations, including the Residential Rental Business License and Inspection Program, pursuant to TMC Ch. 5.06. [Alternative Footnote] A multi -family dwelling, including duplex, triplex, fourplex, condominium, and/or townhouse, may be used for the purpose•of providing lodging for periods of more than 31 days, for compensation, provided: a. There shall be single Lease Agreement per dwelling unit, which shall be for either the entire dwelling unit, or the portion thereof that is rented. If the single Lease Agreement is for a portion of the dwelling unit, the owner must reside on the premises for the duration of the rental. Pg. 6 of Commented 1CA2): Leave as footnote to Table 18-6, or re-insert to Definitions at TMC 18.60.XXX. 2017 Tukwila Municipal Code Residential Dwelling Definition Update Last Updated 5/10/2017 b. No more than two occupants per bedroom shall be accommodated under the single Lease Agreement, at any one time. c. Rental accommodations shall meet all local and state regulations, including the Residential Rental Business License and Inspection Program, pursuant to TMC Ch. 5.06. III. Alternative Short -Term Rental Provision 18.60.XXX Transient accommodations. "Transient accommodations" means the rental of any building or portion thereof used for the purpose of providing lodging for periods of less than 30 days, for compensation. 18.60.XXX Residences and ADUs Used as Transient Accommodations. The following standards apply to all single-family dwellings, accessory dwelling units, and multi -family dwellings, when used for the purpose of providing transient accommodations: 9 1. No more than two guests per bedroom shall be accommodated at any one time. 2. The rental shall be operated in a way that will prevent unreasonable disturbances to area residents. 3. At least one additional off-street parking space shall be provided for the rental use in addition to the parking required for the dwelling unit. 4. No outdoor advertising signs are permitted. 5. An'owner may rent as transient accommodations either the single-family dwelling or the accessory dwelling unit connected therewith, but not both. The owner must reside on the premises during the rental, or one of the two dwelling units shall remain unrented. 6. Rental accommodations shall meet all local and state regulations, including the Residential Rental Business License and Inspection Program, pursuant to TMC Ch. 5.06. 7. Detached accessory dwelling units shall not be used as transient accommodations. [Alternative] The use of a single-family dwelling, accessory dwelling unit, and/or multi -family dwelling as transient accommodations may be allowed by conditional use permit only. Pg. 7 of 2017 Tukwila Municipal Code Residential Dwelling Definition Update Last Updated 5/10/2017 IV. Proposed Amendments to Title 5, Chapter 6 — Residential Rental Business 5.06.020 Definitions XX. "Dwelling unit" means the whole of a structure or building, or a portion thereof, providing complete housekeeping facilities for a group of individuals living together as a single residential community, with one kitchen one or more sleeping rooms i a, i a and bathroom facilities containing a toilet, and a shower or bathtub, other than t housinga ' facilities -'ofined ' this eerie which is physically separated from any other dwelling units which may be in the same structure. [Alternate] "Dwelling unit" means a room or rooms located within a structure that are occupied or intended to be occupied by not more than one household as living accommodations independent from any other household, and that meets the following configurations: a. a complete food preparation area. A room or portion of a room designed, arranged, intended or used for cooking or otherwise making food ready for consumption that contains a sink, and a stove or range, a refrigerator, and a countertop, shall be considered a complete food preparation area; and b. a bathroom containing a toilet, and a shower or bathtub; and c. one or more sleeping rooms. XX. "Multi -family residence" means a building designed to contain two or more dwelling units, including but not limited to duplexes, tri-plexes, four-plexes, apartment buildings, condominiums, or townhouses. 11. "Occupant" means an individual, partnership, corporation or association, or agent of any of them lawfully residing in a rental unit. 12. "Owner" means the owner of record as shown on the last King County tax assessment roll or such owner's authorized agent XX. "Rental or Lease Agreement" means all agreements, whether written or oral, which establish or modify the terms, conditions, rules, regulations, or any other provisions concerning the use and occupancy of a dwelling unit or a portion thereof. 14. "Rental unit" means a dwelling unit, or portion thereof, occupied or leased by a tenant. 15. "Single-family residence" means a building, modular home, or new manufactured home designed to contain no more than one dwelling unit, plus one accessory dwelling unit. 16. "Tenant" means any adult person granted temporary use of a rental unit pursuant to a lease or rental agreement with the owner of the rental unit. by ruff .. ...v. a „eluding but of Ii ited •' lc fµmil... ..:.I.,..,.... duplexe piexe. fou.. Y�..a .uv .b , •ib.� ,J-ate , , o 18. "Rental unit unavailable for rent" means a rental unit whose owner has filed with the code official a statement signed under penalty of perjury that such rental unit is not offered or available for rent as a rental unit and that prior to offering or making the rental unit available for rent wit, the owner will apply for a Residential Rental Business License and comply with any applicable administrative regulations adopted pursuant to this chapter. Pg. 8 of 2017 Tukwila Municipal Code Residential Dwelling Definition Update Last Updated 5/10/2017 5.06.030 Scope The provisions of this chapter shall apply to all rental units, with the exception of: I. A rental unit subject to a single Rental or Lease Agreement for a portion of a dwelling unit, where the owner resides in that dwelling unit with the tenant(s) for the duration of the term of the Rental Agreement (traditional roommate circumstance). Ownerer occupied rental 2. Units unavailable for rent; 3. Housing accommodations in hotels, motels, or extended -stay hotel or motel homes; 4. Housing accommodations in retirement or convalescent/nursing homes, assisted living facilities, correctional institutions, diversion facilities, diversion interim services facilities, shelters, and dormitories; 5. Housing accommodations in any hospital, State licensed community care facility, convent, monastery or other facility occupied exclusively by members of a religious order or an extended medical care facility; 6. Housing accommodations that a government unit, agency or authority owns, operates or manages, or which are specifically exempted from municipal regulation by State or federal law or administrative regulation. This exception shall not apply once the govemmental ownership, operation or management regulation is discontinued. 5.06.040 Residential Rental Business License Requirement Every rental unit owner shall obtain an annual residential rental business license, pursuant to Title 5 of the Tukwila Municipal Code, prior to operating, leasing or causing to be leased a rental unit. Pg. 9 of • I DRAFT [Actual] "Dwelling unit" is a unit that provides independent living accommodations for one or more independent persons or household with permanent provisions for living, sleeping, eating, cooking and sanitation. 1) Any dwelling unit shall have a minimum total area of 310 square feet and shall have all of the following: a. one room of 220 square feet, plus an additional 100 square feet for each occupant over two. b. minimum width of habitable spaces shall have a dimension of 7 feet in any direction. c. kitchen containing a cooking stove as defined in 2015 IPMC 404.7.2, refrigerator per 404.7.3, countertop and cabinets for food preparation and storage per 404.7.4, sink with hot and cold running water per 404.7.1, and ventilation per 403.6. The kitchen area shall be a minimum of 50 square feet with 30 inches of clearance space provided and maintained in front of the appliances. Note: A kitchenette defined herein is equipped as a kitchen but has portable cooking appliances in lieu of a stove per 404.7.2. A dwelling and a dwelling unit are allowed one kitchen or kitchenette, not both. A dwelling or a dwelling unit with two (2) kitchens or kitchenettes is defined herein as a duplex, not a single dwelling or a single dwelling unit. d. a separate bathroom, with a closeable door, shall have a minimum of 40 square feet, and contain a sink, toilet, shower or bathtub. e. a space or room intended to be used for sleeping purposes. f. a separate closet per 404.4.6. "Boarding house" means a residential building or -use designed to contain one dwelling unit, which provides housing on short term eeff mercia' basis for more than one tenants, pursuant to more than one Lease Agreement, for compensation. Boarding houses are prohibited in all zones. The following uses are excluded not considered a boarding house: Bed and breakfast facilities, hotels and motels, extended -stay hotels or motels, shelters, and facilities which provide short- or long-term care for tenants suffering from physical, mental or other disabilities, Assisted Living Facilities, Convalescent/Nursing Homes, Correctional Institutions, Diversion Facilities, Diversion Interim Services Facilities, and Dormitories.) 2017 Tukwila Municipal Code Residential Dwelling Definition Update Last Updated 6/1/2017 Table of Contents I. Proposed Amendments to TMC Ch. 18.06, Definitions: 1 II. Proposed Amendments to TMC Ch. 18, Table 18-6 6 III. Alternative Short -Term Rental Provision 7 IV. Proposed Amendments to Title 5, Chapter 6 — Residential Rental Business 8 Pli /S15 'f?r;44 I. Proposed Amendments to TMC Ch. 18.06, Definitions: P1/ C, Th lit ll 18.06.XXX Accessory Dwelling Unit 9,6 d i "Accessory Dw Bl-i-n.g-Unit"rneans one or more rooms that are located within an owner -occupied dwelling unit, or within an accessory structure,on the same lot as an owner -occupied dwelling unit, and that meet the following configurations: 1 261) a. located on a minimum lot of6,500 square feet; b. the accessory dwelling unit is no more than 33% of the square footage of the primary residence and a maximum of 1,000 square feet, whichever is less; c. one of the residences is the primary residence of a person who owns at least 50% of the property, d. dwelling unit is incorporated into the primary detached single-family residence, so that both units appear to be of the same design as if constructed at the same time; e. minimum of three parking spaces on the property with units less than 600 square feet, and a minimum of four spaces for units over 600 square feet; and f. the units are not sold as condominiums. 18.06.063 Bcd and Breakfast Lodging i-j4 18.06.073 Boarding House vW" Pg. 1 of • Y. 2017 Tukwila Municipal Code Residential Dwelling Definition Update Last Updated 6/1/2017 peE 18.06.237 Dormitory "Dormitory" means a residential building or use which provides housing for students attending an affiliated school or housing for members of a religious order. Dormitories may include kitchens, cafeterias, meeting rooms, laundry rooms and other accessory facilities to serve the residents of the facility. The owner/operator of a dormitory shall comply with the provisions of the Residential Rental Business License and Inspection Program, pursuant to TMC Ch. 5.06. 18.06.247 Dwelling, Multi -Family "Multi -family dwelling" means a building designed to contain two or more dwelling units. Diffatien-of tenanc y i ulti famil y dwelling, i of loss than nth. A multi -family dwelling shall not have an accessory dwelling unit. 18.06.248 Dwelling, Single -Family "Single-family dwelling" means a building, modular home or new manufactured home, designed to contain no more than one dwelling unit. A single-family dwelling may include, plus one accessory dwelling unit. 18.06.249 Dwelling Unit ORIGINAL: "Dwelling unit" means the whole of a building or a portion thereof providing complete housekeeping facilities for a group of individuals living together as a single residential community, with common cooking, eating and bathroom facilities, other than transitory housing or correctional facilities as defined in this code, which is physically sepaated from.any other dwelling units which may be in the same structure. ! f `? \C A C1 [Alternate] "Dwelling un't" means the whole of a structure or building, or a portion thereof, providing complete housekeepin facilities for a group of individuals living together as a single residential community, with one ki chen, one or more sleeping rooms, and bathroom facilities containing a toilet, and a shower or bathtub, which is physically separated from any other dwelling units which may be in the same structure. [Alternate] "Dwelling unit" means a room or rooms located within a structure that are occupied or intended to be occupied by not more than one household as living accommodations independent from any other household, and that meets the following configurations: a. a complete food preparation area. A room or portion of a room designed, arranged, intended or used for cooking or otherwise making food ready for consumption that contains a sink, and a stove or range, a refrigerator, and a countertop, shall be considered a complete food preparation area; and b. a bathroom containing a toilet, and a shower or bathtub; and c. one or more sleeping rooms. Pg. 2 of 2017 Tukwila Municipal Code Residential Dwelling Definition Update Last Updated 6/1/2017 0/1' 18.06.287 Extended -Stay Hotel or Motel "Extended -stay hotel or motel" means a building or buildings or portion thereof, the units of which contain independent provisions for living, eating and sanitation including, but not limited to, a kitchen sink and permanent cooking facilities, a bathroom and a sleeping area in each unit, and are specifically constructed, kept, used, maintained, advertised and held out to the public to be a place where temporary residence is offered for pay to persons for a minimum stay of more than 30 days and a maximum stay of six months per year. Extended -stay hotels or motels shall not include dwelling units, as defined in this section, for permanent occupancy. The specified units for extended -stay must conform to the required features, building code, and fire code provisions for dwelling units as set forth in this code. Nothing in this definition prevents an extended -stay unit from being used as a hotel or motel unit. Extended -stay hotel or motels shall be required to meet the hotel/motel parking requirements. Not included are institutions housing persons under legal restraint or requiring medical attention or care 18.06.XXX Guest Cottage, Guest House. "Guest Cottage, Guest House" m�� ns a dwelling unit on a residential lot, separate from the main residential building, which is used to acc,6mmodate nonpaying guests of the residents or domestic employees of the residents and which is not rrted. 18.06.440 Hotel "Hotel" means a building, or buildings or portion thereof, the units of which are used, rented or hired out as sleeping accommodations only for the purpose of transitory housing in which access to individual units is predominantly by means of common interior hallways. Hotel rooms shall have their own private toilet facilities, and may or may not have their own kitchen facilities. Hotels shall not include dwelling units, as defined in this section, for permanent occupancy. A central kitchen, dining room and accessory shops and services catering to the general public can be provided. No room may be used by the same person or persons for a period exceeding thirty (30) calendar days per year. Not included are institutions housing persons under legal restraint or requiring medical attention or care 18.06.XXX Kitchen "Kitchen" means an area within a structure that is used or designed to be used for the preparation or cooking of food and that contains one or both of the following: 1. Cooking appliances or rough in facilities including, but not limited to: ovens, convection ovens, stoves, stove tops, built-in grills or microwave ovens or similar appliances, 240 volt electrical outlets or any gas lines; and/or 2. A sink less than 18 inches in depth with a waste line drain 1-' inches or greater in diameter and a refrigerator exceeding five (5) cubic feet in capacity. [Alternatel "Kitchen" means an area within a structure that is used or designed to be used for the preparation or cooking of food and that contains two of the following: Pg. 3 of 2017 Tukwila Municipal Code Residential Dwelling Definition Update Last Updated 6/1/2017 1. Cooking appliances including, but not limited to: ovens, convection ovens, stoves, stove tops, built-in grills or similar appliances, 240 volt electrical outlets or any gas lines; 2. A sink less than 18 inches in depth with a waste line drain 1-1/2 inches or greater in diameter; and/or 3. A refrigerator exceeding five (5) cubic feet in capacity. 18.06.585 Motel "Motel" means a building or buildings or portion thereof, the units of which are used, rented, or hired out as sleeping accommodations only for the purposes of transitory housing, in which access to individual units is predominantly by means of common exterior corridors. A motel includes tourist cabins, tourist court, motor lodge, auto court, cabin court, motor inn and similar names but does not include accommodations for travel trailers or recreation vehicles. Motel rooms shall have their own private toilet facilities and may or may not have their own kitchen facilities. Motels are distinguished from hotels primarily by reason of providing adjoining parking and direct independent access to each rental unit. Motels shall not include dwelling units, as defined in this section, for permanent occupancy. No room may be used by the same person or persons for a period exceeding 30 calendar days per year. Not included are institutions housing persons under legal restraint or requiring medical attention or care s 18.06.XXX Rental or Lease Agreement 0117 (\\*1e41 "Rental or Lease agreement" means all agreements, whether written or oral, which establish or modify the terms, conditions, rules, regulations, or any other provisions concerning the use and occupancy of a dwelling unit or a portion thereof. 18.06.685 Residence � Structure "Residence" means a building or structure, or portion thereof, which is designed for and used to provide a :::: lace of abode for human beings. "Structure" means a combination of materials constructed and erected permanently on the ground or attached to something having a permanent location on the ground, but excluding all forms of vehicles even though immobilized. Not included are residential fences up to six feet in height, retaining walls or rockeries with up to four feet of exposed face, and similar improvements of minor character. 18.60.XXX Transient accommodations. "Transient accommodations" means the rental of any building or portion thereof used for the purpose of providing lodging for periods of less than 30 days, for compensation. f Single-family dwellings, accessory dwelling units, and multi -family dwellings ,shall not be used for transiegt accommodations.] (This l Pg. 4 of 2017 Tukwila Municipal Code Residential Dwelling Definition Update Last Updated 6/1/2017 prohibition does not apply to Assisted Living Facilities, Convalescent/Nursing Homes, Correctional Institutions, Diversion Facilities, Diversion Interim Services Facilities, Shelters, and Dormitories.l 18.60.XXX Wet bar/ ILA.t' "Wet Bar" means food preparation facilities that include the following: (1) a single sink with a waste drain line no greater than 1-1/2 inches in diameter; and (2) an under counter refrigerator no greater than 5 cubic feet in size with cabinets and/or counter top area not exceeding 6 lineal feet. A wet bar shall not include a refrigerator in excess of 5 cubic feet in size or a kitchen sink greater than 2 square feet in size or a gas or electric range, stove top and/or oven (but may include a microwave oven).. Pg. 5 of 2017 Tukwila Municipal Code Residential Dwelling Definition Update Last Updated 6/1/2017 II. Proposed Amendments to TMC Ch. 18, Table 18-6 [Pg. 8] 5 Bed and brea, Est far tier, provided: a the-t agerTewner must live-en-sn , b •" Depaft-ffient, [Pg. 9] 17. Accessory dwelling unit, provided: a. minimum lot of 6,500 7,l ,2000 square feet; b. accessory dwelling unit is no more than 33% of the square footage of the primary residence and a maximum of 1,000 square feet, whichever is less; c. one of the residences is the primary residence of a person who owns at least 50% of the property, d. dwelling unit is incorporated into the primary detached single-family residence, so that both units appear to be of the same design as if constructed at the same time; e. minimum of three parking spaces on the property with units less than 600 square feet, and a minim m of four spaces -for units over 600 square feet; and f. the units are not sold as condominiums. [Alternative Footnote] A single family dwelling may be used for the purpose of providing lodging for periods of more than 31 days, for compensation, provided: a. b. There shall be single Lease Agreement, which shall be for either the entire home, or the portion thereof that is rented. If the single Lease Agreement is for a portion of the single family dwelling, the owner must reside on the premises for the duration of the rental. No more than two occupants per bedroom shall be accommodated under the single Lease Agreement, at any one time. An owner may rent as accommodations an accessory dwelling unit connected with the single family dwelling, but the owner must reside on the premises for the duration of the rental. Rental accommodations shall meet all local and state regulations, including the Residential Rental Business License and Inspection Program, pursuant to TMC Ch. 5.06. [Alternative Footnote] A multi -family dwelling, including duplex, triplex, fourplex, condominium, and/or townhouse, may be used for the purpose of providing lodging for periods of more than 31 days, for compensation, provided: a. There shall be single Lease Agreement per dwelling unit, which shall be for either the entire dwelling unit, or the portion thereof that is rented. If the single Lease Agreement is for a portion of the dwelling unit, the owner must reside on the premises for the duration of the rental. 4 0.11 <. D - 4j`\ Pg. 6 of 2017 Tukwila Municipal Code Residential Dwelling Definition Update Last Updated 6/1/2017 b. No more than two occupants per bedroom shall be accommodated under the single Lease Agreement, at any one time. c. Rental accommodations shall meet all local and state regulations, including the Residential Rental Business License and Inspection Program, pursuant to TMC Ch. 5.06. III. Alternative Short -Term Rental Provision 18.60.XXX Transient accommodations. "Transient accommodations" means the rental of any building or portion thereof used for the purpose of providing lodging for periods of less than 30 days, for compensation. 18.60.XXX Residences and ADUs Used as Transient Accommodations. The following standards apply to all single-family dwellings, accessory dwelling units, and multi -family dwellings when used for the purpose of providing transient accommodations: No more than two guests per bedroom shall be accommodated at any one time. 2. The rental shall be operated in a way that will prevent unreasonable disturbances to area residents. 3. At least one additional off-street parking space shall be provided for the rental use in addition to the parking required for the dwelling unit. 4. No outdoor advertising signs are permitted. 5.: An owner may rent as transient accommodations either the single-family dwelling or the accessory dwelling unit connected therewith, but not both. The owner must reside on the premises during the rental, or one of the two dwelling units shall remain unrented. 6. ; Rental accommodations shall meet all local and state regulations, including the Residential Rental Business License and Inspection Program, pursuant to TMC Ch. 5.06. 7. Detached accessory dwelling units shall not be used as transient accommodations. [Alternative] The use of a single-family dwelling, accessory dwelling unit, and/or multi -family dwelling as transient accommodations may be allowed by conditional use permit only. '^ Pg. 7 of 2017 Tukwila Municipal Code Residential Dwelling Definition Update Last Updated 6/1/2017 IV. Proposed Amendments to Title 5, Chapter 6 — Residential Rental Business Definitions XX. "Dwelling unit" means the whole of a structure or building, or a portion thereof, providing complete housekeeping facilities for a group of individuals living together as a single residential community, with one kitchen, one or more sleeping rooms, and bathroom facilities containing a toilet, and a shower or bathtub, other tha n tra nJito ho ct o al fa ilitie defined ♦his code, which is physically separated from any other dwelling units which may be in the same structure. [Alternate] "Dwelling unit" means a room or rooms located within a structure that are occupied or intended to be occupied by not more than one household as.living accommodations independent from any other household, and that meets the following configurations: a. a complete food preparation area. A room or portion of a room designed, arranged, intended or used for cooking or otherwise making food ready for consumption that contains a sink, and a stove or range, a refrigerator, and a countertop, shall be considered a complete food preparation area; and b. a bathroom containing a toilet, and a shower or bathtub; and c. one or more sleeping rooms. XX. "Multi -family residence" means a building designed to contain two or more dwelling units, including but not limited to duplexes, tri-plexes, four-plexes, apartment buildings, condominiums, or townhouses. 11. "Occupant" means an individual, partnership, corporation or association, or agent of any of them lawfully residing in a rental unit. 12. "Owner" means the owner of record as shown on the last King County tax assessment roll or such owner's authorized agent XX. "Rental or Lease Agreement" means all agreements, whether written or oral, which establish or modify the terms, conditions, rules, regulations, or any other provisions concerning the use and occupancy of a dwelling unit or a portion thereof. 14. "Rental unit" means a dwelling unit, or portion'thereof, occupied or leased by a tenant. 15. "Single-family residence" means a building, modular home, or new manufactured home designed to contain no more than one dwelling unit, plus one accessory dwelling unit. 16. "Tenant" means any adult person granted temporary use of a rental unit pursuant to a lease or rental agreement with the owner of the rental unit. 17. "Unit" means any structure or part of a structure, , 18. "Rental unit unavailable for rent" means a rental unit whose owner has filed with the code official a statement signed under penalty of perjury that such rental unit is not offered or available for rent as a rental unit and that prior to offering or making the rental unit available for rent as -a -rental -unit, the owner will apply for a Residential Rental Business License and comply with any applicable administrative regulations adopted pursuant to this chapter. Pg. 8 of 2017 Tukwila Municipal Code Residential Dwelling Definition Update Last Updated 6/1/2017 5.06.030 Scope The provisions of this chapter shall apply to all rental units, with the exception of: 1. A rental unit subject to a single Rental or Lease Agreement for a portion of a dwelling unit, where the owner resides in that dwelling unit with the tenant(s) for the duration of the term of the Rental Agreement (traditional roommate circumstance). , 2. Units unavailable for rent; 3. Housing accommodations in hotels, motels, or extended -stay hotel or motel inns or tourist homes; 4. Housing accommodations in retirement or convalescent/nursing homes, assisted living facilities, correctional institutions, diversion facilities, diversion interim services facilities, shelters, and dormitories; 5. Housing accommodations in any hospital, State licensed community care facility, convent, monastery or other facility occupied exclusively by members of a religious order or an extended medical care facility; 6. Housing accommodations that a government unit, agency or authority owns, operates or manages, or which are specifically exempted from municipal regulation by State or federal law or administrative regulation. This exception shall not apply once the governmental ownership, operation or management regulation is discontinued. 5.06.040 Residential Rental Business License Requirement Every rental unit owner shall obtain an annual residential rental business license, pursuant to Title 5 of the Tukwila Municipal Code, prior to operating, leasing or causing to be leased a rental unit. Pg. 9 of Nora Gierloff Subject: Location: Start: End: Recurrence: Meeting Status: Organizer: Required Attendees: Resources: Follow Up on Dwelling Definitions Update Foster (CR 1) Wed 9/21/2016 11:00 AM Wed 9/21/2016 12:00 PM (none) Meeting organizer Nora Gierloff Charlotte Archer; Minnie Dhaliwal Foster (CR 1) Charlotte — does this time work for you? If not feel free to propose a different one. In addition to updating the boarding house definition we would also like to look at how our various regulations fit the Air B&B business model. �7� G red., �1���I� N. o n (.2(....->v.-cr' _2?-ev(r c - -+2v�y ✓ b e.,A- M 3 DoQ - Roo S 1 c,°ice 3 J VV\ D.r-e--t 3o`f del 1 w ( re tiL, 1 r I n TO: FROM: DATE: RE: CITY OF TUKWILA MEMORANDUM Nora Gierloff, Deputy DCD Director Minnie Dhaliwal, Planning Supervisor a Charlotte A. Archer, Asst. City Attorney4a¢� t „u�J� September 20, 2016 ''GIII�IINI . Proposed Updates to the City of Tukwila" Muini cipal Code (TMC) Pertaining to u4�1 Rental Units, Boarding Houses, and Bed andlliBreakfast Lodging '4;,1�1 � tiil it l d41.m.. ;1I tlh. 111.!IRP^ I��! I'Ipl, �Gl 111k L Ili IIl I,. ��III A! p Elul tl h � I (?jliiiU.l id I' III lhll ^ 6 j1 uh Authority and Anal._ysis 411i! udk "1fi I V WI.,,%I� . A. Relevant Provisions of TMC Title 18, Zoning, u�l� lfIIIIIII m. �h11111H11!I�9nlp� t i The following are pr illyNsi'Ionsarill 1VIC IThhiltlle;ul 8, Zoning, that are relevant to this analysis': ���� I �Illllpm� d1:,�illll'i n; uI11111Illllllll�, III I TMC 18.06.085� Building; Accessory. "Accessory building"means a subordinate pllll !II' IIIIII II WiUP� 1 '�m�, n buildi ilg, the use of which is incident�.�to;lithe use of the main building on the same lot. ill,;l„Illll,p,�l!III I��Illi1l, I��� III' Ii TM. m�� 18.06.080 Building. "Building" means a structure as defined in this definitions 1 ICI Iilul lilllllll chapter. When, l al 4jidered otal structure is separated by division walls without openings, each portion • so separate shall be l �I�gllseparate building. I. Illpl11, „II�I!pillll.'i TMC 18.06.06'3� Bed -and -Breakfast Lodging. "Bed -and -breakfast" means an owner - occupied dwelling unitilithat contains guest rooms where lodging is provided for compensation. TMC 18.06.073 Boarding House. `Boarding house" means a residential building or use • .which provides housing on a short term commercial basis for tenants. The following uses are excluded: Bed and breakfast facilities, hotels and motels, extended -stay hotels or motels, shelters, and facilities which provide short- or long-term care for tenants suffering from physical, mental or other disabilities. (Ord. 2251 §3, 2009; Ord. 1976 §12, 2001) Document 1 /NG/09/20/ 16 TMC 18.06.173 Convalescent/Nursing Home. "Convalescent/nursing home" means a residential facility, such as a hospice, offering 24-hour skilled nursing care for patients suffering from an illness, or receiving care for chronic conditions, mental or physical disabilities or alcohol or drug detoxification, excluding correctional facilities. Care may include in -patient administration of special diets, bedside nursing care and treatment by a physician or psychiatrist. The stay in a convalescent/nursing home is in excess of 24 consecutive hours. This category does not include diversion facility or diversion interim services facility. TMC 18.06.178. Correctional Institution. "Correctional institution' means public and private facilities providing for: 1. the confinement of adult offenders; -or 2. the incarceration, confinement or detention of individuals arrested for or convicted of crimes whose freedom is partially or completely restricted other than a jail owned and op rated'by the City of Tukwila; or 3. the confinement of persons undergoing treatment for <'drug or`=alcohol addictions whose freedom is partially or completely restricted; or 4. transitional housingNuch, as halfway houses, for offenders who are required to live in such facilitiesaas a ondition of s etence or release from a correctional facility, except secure community transitional facilities as defined u under RCW 71.09.020. /✓�' \ 7 18.06.234 Diversion Facility. "Diversion facility" is a facility that provides community crisis services, which diverts people from.. jails, hospitals or other treatment options due to mental illness or chemical dependency, including those facilities thatlare,considered "Triage facilities" under RCW 71.05.020 (43) and those facilities licensed as cris s‘stabilzation units by the State of Washington. TMC 18.06.237 Dormitory. "Dormitory.means 'a residential building or use which provides housing for students attending an affiliated school or housing for members of a religious order. Dormitories may inci ude kitchens' cafeterias, meeting rooms, laundry rooms and other accessory facilities to •serve the residents of the'facility. TMC �1,8'.06 247 Dwelling Multi -Family. "Multi -family dwelling" means a building appllll���l IIIuIIIIIIIlII9lilllllllll!Illllllllllllui ii, '+�: '-:�r designed to,,contam��two or more,dwelling units. Duration of tenancy in multi -family dwellings is 1101".401 II not less' than one month 1001111111i i 'il1111,1,, u TM �I P 18.06.248 Dwel�lling, Sig "Single-family Single-family dwelling"means a building, .1111IIIII�Ilq 0 II modular home or new manufactured home, designed to contain no more than one dwelling unit Ililllllllllm, 111111110 plus one accessory dwellingnit. ''I,�IIIIIII u dllli, ill l luo,,. 011160 TMC 18.06.2491.,Dwelling Unit. "Dwelling unit" means the whole of a building or a portion thereof providing complete housekeeping facilities for a group of individuals living together as a single residential community, with common cooking, eating and bathroom facilities, other than transitory housing' or correctional facilities2 as defined in this code, which is physically separated from any other dwelling units which may be in the same structure. TMC 18.06.287 Extended -Stay Hotel or Motel. "Extended -stay hotel or motel" means a building or buildings or portion thereof, the units of which contain independent provisions for "Transitory housing" is undefined in the TMC. 2 "Correctional facilities" are undefined in the TMC. -2- Document I /NG/09/20/ 16 living, eating and sanitation including, but not limited to, a kitchen sink and permanent cooking facilities, a bathroom and a sleeping area in each unit, and are specifically constructed, kept, used, maintained, advertised and held out to the public to be a place where temporary residence is offered for pay to persons for a minimum stay of more than 30 days and a maximum stay of six months per year. Extended -stay hotels or motels shall not include dwelling units, as defined in this section, for permanent occupancy. The specified units for extended -stay must conform to the required features, building code, and fire code provisions for dwelling units as set forth in this code. Nothing in this definition prevents an extended -stay unit from being used as a hotel or motel unit. Extended -stay hotel or motels shall be required to meet,„ ,the hotel/motel parking requirements. Not included are institutions housing persons under -legal ;•restraint or requiring medical attention or care. ''' TMC 18.06.440 Hotel. "Hotel" means a building, or(buildings'or portion thereof, the units of which are used, rented or hired out as sleeping accommodations only for the purpose of transitory housing. Hotel rooms shall have their own private toilet facilities ,and may or may not have their own kitchen facilities. Hotels shall noeei elude dwelling units,',as ;defined in this section, for permanent occupancy. A central kitchen; ng room and accessory'' shops and services catering to the general public can be provide„d'yNo� �rooim may be used'by the same person or persons for a period exceeding thirty (30) calendar days per year. Not included are ale,,„ih institutions housing persons under legal .restraint or requiring,medical attention or care. it71'..1 ,, lk �. TMC 18.06.585 Motel. "Motel' means; awbuilding or buildings or portion thereof, the units of which are used, rented, or hired out as slee"pi g accommoda'.tons only for the purposes of transitory housing. A motel includes tourist cabins;tourist ourt?. motor lodge, auto court, cabin court, motor inn and similar; names but does �n�ot include cco odations for travel trailers or recreation vehicles. Motel rooms'shall have their. own private toilet facilities and may or may not have their own kitchen facilities.' 'Motels are distinguished from hotels primarily by reason of providing adjoining parking.. and direct independent access to each rental unit. Motels shall not include dwelling units, as'defined.m this section.,'for permanent occupancy. No room may be used by the s'a"mel i'I°'e� son of pe sons for'�a.4i riod exceeding 30 calendar days per year. Not included arellllinstitutions housin ate ��;I IIIIIIII Ilgllll . v ' �„ II,. fi°IIII g�.persons under legal restraint or requiring medical attention or 1plllh., r TM, 4 8.06.685 Residence. `Residence" means a building or structure, or portion IN thereof, which it designed for and used to provide a place of abode for human beings. IIIII �IIlllh Il Vi Table 18-6c°LIILand Uses Allowed by District. IIIIIIIIilll0 • Bed and Breakfast Lodging — Permitted in the LDR, MDR and HDR, via a conditional use permit and under the following conditions: care .,101111111 a. the manager/owner must live on -site, b. the maximum number of residents, either permanent or temporary, at any one time is c. two on -site parking spaces for the owner and permanent residents and one additional on -site parking space is provided for each bedroom rented to customers, -3- Document 1 /NG/09/20/16 d. the maximum length of continuous stay by a guest is 14 days, e. breakfast must be offered on -site to customers, and f. all necessary permits or approvals are obtained from the Health Department. • Bed and Breakfast Lodging — Permitted in the MUO via a conditional use permit. • 2015 International Building Code (IBC) • Accessory Dwelling Unit — Permitted in all zones as accessory uses, provided: a. minimum lot of 7,200 square feet; /7' b. accessory dwelling unit is no more than 33%�,of�the square footage of the primary residence and a maximum of 1,000 square•feet, whichever is less; c. one of the residences is the primary residence of a person who owns at least 50% of the property, d. dwelling unit is incorporatedAnto the primary detached single-family residence, not a separate unit, sothat both units appear to ',be of the same design as if constructed at the same,time; e. minimum of three parking spaces on the(property with units less than 600 square feet, and a minimum of four spaces for units over 600 square feet; and f. the units are not sold as condominiums. • Boarding Homes — Permitted in the MDR'and HDR, via a conditional use permit; B. Relevant Provisions of-TMC Title 5, Business Lieenses and Regulations. 4.;---..._, '",,N) TMC 5.06.020'D iinitions. 0110 1. "Accessory,dwelling'.unit" or "ADU" means a unit that meets the requirements of I!j i 11Tm !CI11 S Illction.18:"10:0303.(2) meahs a'unit occupied or leased by a tenant. 11j 15 "Single-faniggresidenCe means a building, modular home, or new manufactured home designed, 'to co Lain no more than one dwelling unit, plus one accessory ''luu !OIL III Ilia u . ,i !OIL' Rental �u� �G it» dllwelling unit. I I lu`Ilhli ui; ��II1II. 17. "Unit i means any structure or part of a structure, which is used as a home, � IIIIIiUII!IIIu°' residence; or sleeping place by one or more persons, including but not limited to, single-family residences, duplexes, tri-plexes, four-plexes, multi -family dwellings, apartment buildings, condominiums, mobile homes and similar living accommodations. TMC 5.06.030 Scope. 3 TMC 18.10.030 no longer exists in the TMC. There is a similar cross-reference to TMC 18.10.030 in TMC 18.10.060 regarding "Accessory dwelling" units that needs to be corrected. -4- Document 1 /NG/09/20/ 16 The provisions of this chapter shall apply to all rental units, with the exception of: l . Owner -occupied rental units; 2. Units unavailable for rent; 3. Housing accommodations in hotels, motels, inns or tourist homes4; TMC 5.06.040 Residential Rental Business License Requirement. Every rental unit owner shall obtain an annual residential rental 'business license, pursuant to Title 5 of the Tukwila Municipal Code, prior to operating, leasing or causing to be le��rilusn.. eased a rental unit. Rental , unit owners must file a written application annually with the Department ^for each rental unit to be leased. To be considered for approval, residential rental busines'Rcense applications must be complete and include the appropriate application fee as set by the City s fee schedule. Failure to obtain a residential rental business license will result in the inabilit tdu,rent the unit. cop !„ e'Cli�'llllr,, a dal"� qp 4 "Inn" and "tourist homes" are undefined terms in the TMC. -5- Document I /NG/09/20/ 16 Bellevue Municipal Code The city of Bellevue allows one to operate a B&B in his or her home, subject to several limitations. The city states that: "Bed and Breakfast [is an] owner -occupied dwelling which temporarily houses guests for profit. A bed and breakfast does not include a rooming house as defined in LUC 20.50.044. (Refer to LUC 20.20.140 for general development requirements applicable to bed and breakfast uses.) (Ord. 6223, 4-6- 15, § 5; Ord. 4028, 7-17-89, § 10)", "Boarding houses and bed and breakfasts require a Home Occupation Permit, Part 20.30N LUC, approval. In addition, not more than two rooms may be rented to not more than two persons other than those occupying a single-family dwelling, provided there is compliance with health and building code requirements. The owner of the rooms to be rented shall provide off-street parking for such rooms at the rate of at least one parking stall for each room. (Ord. 5089, 8-3-98, § 11; Ord. 4028, 7- 17-89, § 3; Ord. 3145, 9-27-82, § 29)" and "not more than two rooms may be rented to not more than two persons other than those occupying a single-family dwelling, provided there is compliance with health and building code requirements". Regulations may change based on location, home -owners -association and other criteria. Consult the city -code, state laws and home -owner -association regulations (where applicable) for additional information. Note that the state of Washington also regulates short term rentals (defined as providing accommodations for guests for a period of less than 30 days). Regulations, permits and taxes are subject to various criteria, for instance: whether the number of rented rooms is 3 or more. BMC 20.50.012 - Definitions Bed and Breakfast. An owner -occupied dwelling which temporarily houses guests for profit. A bed and breakfast does not include a rooming house as defined in LUC 20.50.044. (Refer to LUC 20.20.140 for general development requirements applicable to bed and breakfast uses.) (Ord. 6223, 4-6-15, § 5; Ord. 4028, 7-17-89, § 10) Boarding House. An owner -occupied dwelling in which individuals unrelated to the owner are housed and/or fed for profit. This definition includes transient lodging as defined in LUC 20.50.048. (Refer to LUC 20.20.140 for general development requirements applicable to boarding house uses.) A boarding house does not include a rooming house as defined in LUC 20.50.044. (Ord. 6223, 4-6-15, § 6; Ord. 4654, 6-6-94, § 77; Ord. 4028, 7-17-89, § 11) Transient Lodging. Lodging provided for a fee or charge in a hotel, motel, boarding house, bed and breakfast, short term stay use or other granting of any similar license to use real property for a period of less than thirty (30) days. (Ord. 5301, 6-18-01, § 5) 20.20.140 Boarding houses and bed and breakfasts. Boarding houses and bed and breakfasts require a Home Occupation Permit, Part 20.30N LUC, approval. In addition, not more than two rooms may be rented to not more than two persons other than those occupying a single-family dwelling, provided there is compliance with health and building code requirements. The owner of the rooms to be rented shall provide off-street parking for such rooms at the rate of at least one parking stall for each room. (Ord. 5089, 8-3-98, § 11; Ord. 4028, 7-17-89, § 3; Ord. 3145, 9-27-82, § 29) 20.20.800 Short term stay uses — Limitations and general requirements. A. Definition. Short Term Stay Use. Transient lodging provided in a Planned Unit Development or multifamily dwelling unit located in a Residential (R-1 through R-30) land use district. Boarding houses and bed and breakfasts permitted to operate in Residential districts pursuant to a valid Home Occupation Permit, Part 20.30N LUC, group homes for children sited pursuant to the Group Home for Children Community Involvement Process, Chapter 9.19 BCC, and institutions housing persons under legal restraint or requiring medical attention or care are not included within the scope of this definition. B. Limitation on Number of Short Term Stay Uses. No more than five units in any building and no more than 20 percent of the dwelling units comprising a development shall be used for Short Term Stay Use at any given time. C. General Requirements. 1. Registration Notice. Any person or company providing a Short Term Stay Use shall file a Registration Notice with the Development Services Department. The registration notice shall be submitted in writing in a form approved by the Director. The registration notice shall state (a) the name and address of the person or company by whom it is submitted (registrant); (b) identify by name and address the building and development to which the registration notice applies; and (c) state the number of dwelling units where the registrant provides Short Term Stay Uses in the referenced building and development. The registration notice shall remain in effect until the Registrant notifies the Department in writing that the registrant is no longer providing any units in the referenced building or development for Short Term Stay Uses. 2. House Rules. When rules of conduct have been adopted for universal application to all occupants of a development, any person or company providing a Short Term Stay Use shall provide a copy of the rules to each licensee prior to commencement of their stay and shall post a copy of the rules in each unit provided for Short Term Stay Use. D. Time for Compliance. 1. Notwithstanding any other provision of this section, for a maximum period of 12 months from the effective date of the ordinance codified in this section, Short Term Stay Uses in existence on the effective date of the ordinance may continue to operate without meeting the limitations set forth in paragraph B of this section, provided that all the requirements of paragraph C of this section are met. Twelve months following the effective date of the ordinance, Short Term Stay Uses not meeting the limitations set forth in paragraph B of this section will be operating in violation of the LUC and subject to enforcement provisions contained in LUC 20.40.460 and Chapter 1.18 BCC. 2. Short Term Stay Uses in existence on the effective date of the ordinance codified in this section shall comply with the General Requirements of paragraph C of this section within three months from the effective date of the ordinance. (Ord. 5301, 6-18-01, § 1) 20.20.120 Accessory dwelling units. A. Definitions. 1. "Accessory dwelling unit" means a subordinate dwelling unit incorporated within a single-family structure. Accessory dwelling units may not be subdivided or otherwise segregated in ownership from the primary residence structure. 2. "Existing single-family dwelling" means that permits for construction of the principal dwelling were finaled (occupancy approved) at least three years prior to application for accessory dwelling unit. 3. "Owner occupancy" means a property owner, as reflected in title records, makes his or her legal residence at the site, as evidenced by voter registration, vehicle registration, or similar means, and actually resides at the site more than six months out of any given year, and at no time receives rent for the owner -occupied unit. B. General. One accessory dwelling unit is permitted as subordinate to an existing single-family dwelling provided the following criteria are met: 1. Either the primary residence or the accessory dwelling unit must be occupied by an owner of the property; 2. The total number of occupants in both the primary residence and the accessory dwelling unit combined may not exceed the maximum number established by the definition of family in LUC 20.50.020; 3. The accessory dwelling unit shall contain not Tess than 300 square feet and not more than 800 square feet, excluding any related garage area; provided, if the accessory unit is completely located on a single floor, the Director may allow increased size in order to efficiently use all floor area, so long as all other standards set forth in this section are met; 4. The square footage of the accessory dwelling unit, excluding any garage area, shall not exceed 40 percent of the total square footage of the primary residence and accessory dwelling unit combined, excluding any garage area; 5. There shall be one off-street parking space provided for the accessory dwelling unit, which is in addition to any off-street spaces required for the primary residence; 6. The construction of a second entry door facing on a street front for entrance into an accessory unit is prohibited; new entrances not facing on a street front are permitted on the sides and rear of a house, or on a front side facing on a street where no other door exists; provided, that existing single-family structures with two or more entry doors facing on a street shall not be prohibited from using one of those doors to access the accessory unit; and 7. The accessory dwelling unit shall meet all technical code standards, BCC Title 23, including building, electrical, fire, and plumbing code requirements. C. Location. Accessory dwelling units shall not be permitted in structures detached from the primary residence, including but not limited to guest cottages, detached garages, or workshops. D. Limitations. A site may not contain both an accessory dwelling unit and a business subject to the regulations in Part 20.30N LUC for a Home Occupation Permit. E. Affordable Housing. The creation of an accessory dwelling unit shall not satisfy the affordable housing requirements in LUC 20.20.128. F. Inspection and Registration. 1. Any property owner seeking to establish an accessory dwelling unit shall apply to register the unit with the Development Services Department. 2. The property owner shall file a completed registration application form affirming that at least one owner will occupy the primary residence or the accessory unit and agreeing to the limits on total number of residents and other standards as provided above. The registration application shall include a requirement for mailing labels for all owners of property Tying within 500 feet of the site. 3. After receipt of a complete application form and prior to approval of any accessory dwelling unit, the Director shall inspect the property to confirm that minimum and maximum size limits are met, required parking is provided, design limitations regarding front entrances are met, and technical code standards are met. 4. The registration form or other form as required by the Director shall be filed as a deed restriction with the King County Department of Records and Elections to indicate the presence of the accessory dwelling unit, the requirement of owner occupancy, and other standards for maintaining the unit as described above. 5. The Director shall report annually to the Council on accessory dwelling unit registration, number of units and distribution throughout the City, average size of units, and number and type of complaint- and enforcement -related actions. 6. After approval, the Director shall provide notice of the registration of the accessory unit to owners of property within 500 feet of the registered site. The notice shall state that the unit complies with the standards of this section, shall describe the requirements for maintaining the unit, and shall explain how to obtain general information and how to request inspections. 7. Cancellation of the accessory unit's registration may be accomplished by the owner filing a certificate with the Director for recording at the King County Department of Records and Elections, or may occur as a result of enforcement action. The cancellation certificate will confirm that the residence has reverted to use as a single dwelling. (Ord. 5718, 2-20-07, §§ 1, 2; Ord. 5089, 8-3-98, § 8; Ord. 4498, 3-15-93, § 2) 20.20.125 Accessory structures in residential districts — Detached. A. Purpose. The purpose of this section is to regulate the height, size, and location of detached accessory structures in residential districts in order to maintain compatibility with surrounding neighborhoods and reduce the visual impacts on adjacent residential properties. B. Applicability. This section applies to detached accessory structures located on lots Tess than 20,000 square feet within any residential land use district. This section is not applicable to Guest Cottages regulated pursuant to LUC 20.20.250. This section is not applicable to structures exempt from regulation under the International Building Code, as adopted and amended by the City of Bellevue; however, exempt structures (e.g., swimming pools, greenhouses, and similar structures) and parked or stored recreational vehicles, watercraft, and utility trailers (regulated pursuant to LUC 20.20.720 or 20.20.890) may intrude into side or rear yard setbacks pursuant to the process contained in paragraph F.3 of this section. C. Definition of Detached Accessory Structure. Detached accessory structure refers to buildings or structures which are secondary to and associated with a primary single-family or multifamily structure. D. Height Limitations. Detached accessory structures are limited to a maximum height of 15 feet except as otherwise provided in paragraph F.1. of this section. E. Limitations on Location and Lot Coverage. 1. Detached accessory structures shall be included in the calculation of lot coverage necessary to comply with the Maximum Lot Coverage by Structures requirements contained in LUC 20.20.010. In addition, detached accessory structures are limited to a maximum lot coverage of 10 percent except as otherwise provided in subsection F.2 of this section. 2. Detached accessory structures are required to comply with the front and side setbacks required for the primary structure and are required to maintain a five-foot setback from the rear lot line except as otherwise provided in subsection F.3 of this section. Note: The International Residential Code as adopted and amended by the City of Bellevue contains additional fire protection requirements that are applicable to some structures constructed within a side or rear yard setback. F. Exception Process. 1. Height Limit. The 15-foot maximum height limit applicable to detached accessory structures can be increased to the maximum building height allowed in the underlying residential district provided a written mutual agreement of all abutting property owners is recorded with the King County Division of Records and Elections and filed with the City Clerk. The 15-foot height limit applicable to detached accessory structures located within required setback areas shall not be exceeded. 2. Lot Coverage. The 10 percent maximum lot coverage applicable to detached accessory structures located on lots less than 20,000 square feet can be exceeded provided a written mutual agreement of all abutting property owners is recorded with the King County Division of Records and Elections and filed with the City Clerk. However, the requirements for maximum lot coverage by structures contained in LUC 20.20.010 shall not be exceeded. 3. Setback Requirements. Detached accessory structures may be built to the side or rear lot line subject to the following limitations. a) A written mutual agreement of the abutting property owners of the property lines affected shall be recorded with the King County Division of Records and Elections and filed with the City Clerk. b) The detached accessory structure shall not exceed a height of 15 feet. c) The detached accessory structure shall not occupy more than 50 percent of the area of a required rear or side setback. d) The detached accessory structure shall not be located within 10 feet of a street right-of- way, access easement or private road. e) The detached accessory structure shall not be located within a setback required by LUC 20.25H.090 except as otherwise provided by LUC 20.20.025.B. (Ord. 6197, 11-17-14, § 8; Ord. 5571, 12-6-04, §§ 2, 3; Ord. 5089, 8-3-98, § 9; Ord. 4979, 3-17-97, § 4; Ord. 4977, 3-17- 97, § 2; Ord. 3775, 5-26-87, § 11) a. No more than 15 percent of the approved lots may include attached duplex units and only one lot may contain three dwelling units. b. The placement and exterior design of the attached units are comparable to and compatible with the surrounding single-family development. E. Administration. The Director shall be responsible for administration of this section. The Director may adopt rules for implementation of this section; provided, the Director shall first hold a public hearing. The Director shall publish notice of the intent to adopt any rule, and the date, time, and place of the public hearing thereon in a newspaper of general circulation in the City at least 14 days prior to the hearing date. Any person may submit written comment to the Director in response to such notice, and/or may speak at the public hearing. Following the public hearing, the Director shall adopt, adopt with modification, or reject the proposed rule. (Ord. 4979, 3-17-97, § 5; Ord. 4855-C, 2-14-96, § 1; Ord. 4829, 12-5-95, § 1; Ord. 4353, 4-13-92, § 1; Ord.4269, 7-8-91, § 1) 9/20/2016 License Requirements :: Washington State Department of Health Transient Accommodations (Hotels and Motels) License Requirements Who needs to be licensed? You must have a current transient accommodations license before operating or advertising a transient accommodation. If you offer three or more lodging units to guests for periods of less than 30 days, you need to be licensed. Transient accommodations include, but are not limited to: • Hotels • Motels • Bed and breakfasts • Resorts • Rustic resorts • Inns • Condominiums • Apartments • Crisis shelters • Hostels • Retreats Learn More • How to Get Licensed • Annual License Renewal • Transfer of Ownership • License Fees • Laws and Regulations 0 Resource Book for Chapter 246-360 WAC (PDF) Why be licensed? It's the law. RCW 70.62 requires that any and all transient accommodations offering three or more lodging units for less than 30 days be licensed by the Department of Health. http://www.doh.wa.gov/LicensesPermitsandCertificates/FacilitiesNewReneworUpdatelrransientAccommodations/LicenseRequirements 1/1 Port Townsend Municipal Code 17.08.020 Definitions "Boardinghouse" means a dwelling with a single kitchen that provides the primary residence for the owner or operator and in which not more than six roomers, lodgers and/or boarders are housed or fed. A boardinghouse is to be distinguished from both a lodging house and a hotel. "Dwelling" means any building or portion thereof designed or used primarily for residential occupancy, including single-family dwellings, duplexes, triplexes, fourplexes, and multifamily dwellings, but not including hotels or motels. "Dwelling, multifamily" means a building containing five or more dwelling units, including units that are located one over the other. "Dwelling, single-family attached," means a duplex, triplex, or fourplex as defined by this title. "Dwelling, single-family detached" means a dwelling that is entirely surrounded by open space on the same lot, and which is designed for and occupied exclusively by one family and the household employees of that family. "Dwelling unit" means any building or portion thereof that contains separate living facilities for not more than one family. Separate living facilities shall constitute provisions for sleeping, eating, kitchen facilities (including at least an oven range or cooking device and a permanently installed sink), and bathroom facilities. "Dwelling unit" does not include motel, tourist court, boardinghouse, or tourist home units. "Lodging house" means a building with a single kitchen that provides the primary residence for the owner or operator and in which seven or more roomers, lodgers and/or boarders are housed or fed. A lodging house is to be distinguished from both a boardinghouse and a hotel. See also "Dwelling, multifamily." "Transient accommodation" means a building, structure or facility, or any part thereof, such as a bed and breakfast inn, hotel, motel, motor hotel, tourist home, or similar facility, primarily designed for and offering one or more lodging units to travelers and transient guests for periods of no more than 29 consecutive calendar days for temporary lodging and sleeping purposes; provided, that an absence for a period of less than 30 consecutive days followed by reoccupancy shall be considered part of the same consecutive period. Portions of calendar days shall be counted as full days. A transient accommodation does not include an accommodation which a person occupies or has a right to occupy as his or her domicile or permanent residence. It shall be presumed that occupancy of real property for a period of 30 consecutive days or more constitutes a rental or lease of real property for residential rather than transient accommodation purposes, which presumption may however be rebutted upon submission of satisfactory proof by a preponderance of the evidence. 17.16.020 Permitted, conditional and prohibited uses — Accessory dwelling units. C. Accessory Dwelling Units — Limitations on Use. One accessory dwelling unit (ADU) may be established only as an accessory use to a single-family, detached residence (and specifically, not including a duplex, triplex or fourplex), provided the following conditions are continuously met: 1. A certificate of occupancy pursuant to the currently adopted city construction codes shall be obtained from the building official and posted within the ADU. The code inspection and compliance required to obtain a certificate of occupancy in an existing building shall be restricted to the portion of the building to be occupied by an ADU and shall apply only to new construction rather than existing components, except that any high hazards (i.e., smoke detectors, fire exits, stairways, LP gas appliances and fire separation) shall be corrected. Where additional fire separation is unduly burdensome, the building official may authorize a fire alarm system in lieu of required fire separation. 2. The owner of the subject property shall reside on the premises, whether in the main or accessory dwelling; provided, that in the event of illness, death or other unforeseeable event which prevents the owner's continued occupancy of the premises, the director may, upon a finding that discontinuance of the ADU would cause a hardship on the owner and/or tenants, grant a temporary suspension of this owner -occupancy requirement for a period of one year. The director may grant an extension of such suspension for one additional year, upon a finding of continued hardship. In the case of an ADU established prior to March 6, 1995, but after August 17, 1971, if the property on which the ADU is located complies with all of the requirements of this section except owner -occupancy, the ADU property may continue without occupancy by the owner until sold, exchanged or otherwise transferred to a different owner. 3. Neither the main nor accessory dwelling unit shall be used as a transient accommodation. 17.72.130 Residential transient accommodations — Parking requirements. A bed and breakfast inn or a tourist home shall provide parking consistent with the requirements of Table 17.72.080; provided, that for a bed and breakfast inn in an historic structure as defined under Chapter 17.08 PTMC, the required number of off-street parking spaces shall be reduced by the number of on -street parking spaces which are located on that portion of the public street right-of-way which is abutting the front and side lot lines of the property. In such instances, one on -street parking space shall be counted for each continuous 20 feet of abutting street frontage, less the 20 closest to each street intersection and any frontage which may not be safely used for on -street parking due to the presence of driveways, hydrants or other conflicting uses. (Ord. 2893 § 2, 2005; Ord. 2571 § 2, 1997). Olympia Municipal Code 18.02.170(D) — Interpretations of terms a. Dwelling, Conventional. i. Accessory Dwelling Unit. A dwelling unit that has been added onto, created within, or separated from a single-family detached dwelling for use as a complete independent living unit with provisions for cooking, sanitation and sleeping. ii. Apartment. A dwelling within a structure designed and used for occupancy by three or more individual persons or families living independently of each other. These structures include triplexes, fourplexes, and other multi -unit configurations. iii. Boarding Home. Any home or institution, however named, which is advertised, announced or maintained for the express or implied purpose of providing board and domiciliary care to three or more aged persons not related by blood or marriage to the operator, under the provisions of Chapter 18.20 RCW (Assisted Living Facilities). It shall not include any home, institution or section thereof which is otherwise licensed and regulated under the provisions of state law providing specifically for the licensing and regulation of such home, institution or section thereof. (See also Dwelling, Assisted Living.) iv. Co -Housing. Co -housing developments consist of two or more dwelling units, one or more shared community structures (e.g., containing a meeting hall, dining hall/kitchen, community center, or day care) and perhaps a community garden, recreation area, or similar community oriented use. v. Condominium. A development consisting of an undivided interest in common for a portion of a parcel coupled with a separate interest in space in a residential or commercial building on the parcel. vi. Cottage Housing Development. Four or more small, detached dwelling units sharing a commonly owned courtyard/common area and parking area. vii. Duplex. One building containing two single-family dwelling units totally separated from each other by a one -hour fire wall or floor. viii. Guest House. Living quarters without kitchen facilities located on the same lot with a principal building and occupied for the sole use of members of the family, temporary guests, or persons permanently employed on the premises. (See also Accessory Dwelling Unit.) ix. Manufactured Home. A single-family residence constructed after June 15, 1976, and installed in accordance with the U.S. Department of Housing and Urban Development (HUD) requirements for manufactured housing and bearing the appropriate insignia indicating such compliance. x. Manufactured Home, Designated. A manufactured home constructed after June 15, 1976, in accordance with state and federal requirements for manufactured homes, and which meets the requirements of OMC 18.04.060.0. xi. Manufactured Home, New. Any manufactured home required to be titled under Title 46 63 RCW, which has not been previously titled to a retail purchaser, and is not a "used mobile home" as defined in RCW 82.45.032 6(2). xii. Mobile Home. A single-family residence transportable in one or more sections, built on a permanent chassis, designed to be used as a permanent dwelling and constructed before June 15, 1976. xiii. Modular Home. A structure constructed in a factory and installed in accordance with the applicable Building Code and bearing the appropriate insignia indicating such compliance. This definition includes "pre -fabricated," "panelized" and "factory built" units. xiv. Single -Family Dwelling. A single unit providing complete, independent living facilities for a family, including permanent provisions for living, sleeping, cooking and sanitation. xv. Single -Room Occupancy. A housing type consisting of one room with cooking facilities and with shared bathroom facilities. (See also Boarding Home, Lodging House and Bed and Breakfast.) b. Dwelling, Transient. i. Bed and Breakfast. A dwelling for the purpose of providing lodging for travelers and guests for a period of less than two weeks for compensation and having at least one kitchen used to provide breakfast but no other meals. Such dwelling shall have no more than five such guest rooms for persons other than the immediate family of the operator occupying such dwelling. Any such dwelling having over five such guest rooms is a hotel. ii. Hotel. Any building containing six or more guest rooms where lodging, with or without meals, is provided for compensation, and where no provisions are made for cooking in any individual room or suite. iii. Lodging House. A dwelling having only one kitchen and used for the purpose of providing lodging, or lodging and meals, for compensation for no more than five persons other than the members of the immediate family of the operator occupying such dwelling. Any such dwelling having over five such guests is considered a hotel. (See also Boarding Home.) [NOTE: A lodging house allows for an unlimited stay, unlike a Bed and Breakfast which is limited to two weeks.] iv. Motel. Guest rooms or suites occupied on a transient basis often with most rooms gaining access from an exterior walkway. (See also Recreational Vehicle.) v. Trailer House. See Recreational Vehicle. 18.04.060 Residential Districts' Use Standards A. ACCESSORY DWELLING UNITS (ADU). Accessory dwelling units (ADU) are permitted in all residential districts subject to the following requirements: 1. Number. One (1) ADU shall be allowed per residential lot in conjunction with any detached single- family structure. (See Section 18.04.080(A)(3) regarding ADUs in new subdivisions.) 2. Location. The ADU shall be permitted as a second dwelling unit added to, created within, or detached from the original dwelling. The ADU shall be oriented in a way that maintains, to the extent practical, the privacy of residents in adjoining dwellings. (See Chapter 18.04A, Residential Design Guidelines.) 3. Size. The ADU shall have a gross floor area of no more than eight hundred (800) square feet, and no more than the following equivalent ratios: a. forty percent (40%) of the gross floor area of the primary residence and accessory dwelling unit combined, or b. sixty-six and two-thirds percent (66 2/3%) of the gross floor area of the primary residence alone; excluding any garage area, except as authorized by Section 18.04.060(A)(7). [NOTE: Section 18.04.060(0)(1) requires that manufactured homes placed on a lot outside a manufactured housing park must be at least eight hundred sixty-four square feet in floor area. Consequently a manufactured home can be used as a primary residence, but not as an ADU.] 4. Ownership. The property owner (i.e., title holder and/or contract purchaser) must live on the site as his/her principal residence. Owners shall sign a notarized affidavit attesting to their principal residency upon permit application. Owners shall provide evidence thereof through such means as voter registration, drivers license, or the like. This requirement does not apply to ADUs built prior to the initial sale of the primary unit on the lot. Purchasers of such ADUs shall meet these requirements within sixty (60) days of purchase. (See Section 18.04.080(A)(3).) A covenant or deed restriction, approved by the Olympia City Attorney, shall be signed and recorded with the Thurston County Auditor which specifies the requirement that the property owner must live on the site as his/her principal residence. 5. Occupancy. No more than one (1) family (as defined in Chapter 18.02, Definitions) shall be allowed to occupy an ADU. 6. Existing ADUs. Accessory dwellings created prior to the enactment of these regulations, June 19, 1995, may be approved subject to applicable requirements. Existing ADUs located on lots which cannot accommodate an additional off street parking space required by Chapter 18.38, Parking, may receive a waiver from the parking requirement. If the owner of an existing unauthorized ADU applies to make the unit legal, but cannot meet all of the standards, he/she will be allowed a "grace period" of six months from date of application to comply with applicable standards. However, where health and safety is an issue, the Building Official will determine when the necessary modifications must be made. If the owner cannot meet the standards, the unauthorized accessory unit must be removed or its use as a dwelling must be suspended. 7. Deviation From Requirements. The Director or the Director's designee may allow deviation from the requirements of this section (18.04.060(A)) as follows: a. To allow use of the entirety of a single floor in a dwelling constructed two (2) or more years prior to the date of application in order to efficiently use all floor area; and b. To enable ADUs to be established in structures constructed prior to June 19, 1995, which are located in rear or side setbacks, provided that Uniform Building Code requirements and the Development Standards contained in Section 18.04.080 are met. [NOTE: See Chapter 18.04A, Residential Design Guidelines for applicable design guidelines.] F. CO -HOUSING. Co -housing developments are allowed in the districts specified in Table 4.01 and 6.01 subject to the following requirements: 1. Common Structure. The following provisions apply to co -housing developments in the residential districts listed in OMC 18.04. a. Quantity, size, and use. Co -housing projects may contain any number of common structures, however, no more than two (2) common structures shall exceed eight hundred (800) square feet in size and none shall exceed five thousand (5,000) square feet in size. At least one (1) common structure shall contain a dining room and kitchen large enough to serve at least fifty percent (50%) of the development's residents at a time (based upon occupancy of one (1) person per bedroom, and at least one (1) of the following: a children's day care center, mail boxes for a majority of the residents, recreational facilities (such as pool tables or exercise equipment), laundry facilities, or a meeting room available for the use of all residents. b. Location. Common structures may be located in all developable portions of the site (e.g., excluding critical areas and their associated buffers and required building setback areas). However, within forty (40) feet of the site's perimeter or a public street extending through the site, no more than two (2) common or accessory structures may be contiguous to one another (i.e., uninterrupted by a dwelling or a landscaped open space with no dimension less than forty (40) feet). This requirement does not apply to structures which would not be visible from the site's perimeter or through streets (e.g., due to topography or vegetation) or which adjoin undevelopable property (e.g., critical areas) which will separate proposed structures by at least forty (40) feet from existing and potential dwelling sites. In no case shall more than fifty (50)% of any street frontage be occupied by common and/or accessory structures. Sequim Municipal Code Chapter 18.66 ACCESSORY DWELLING UNITS Page 1 of 3 Chapter 18.66 ACCESSORY DWELLING UNITS Sections: 18.66.010 Purpose. 18.66.020 Definitions. 18.66.030 Designation. 18.66.040 Procedure. 18.66.050 Standards. 18.66.060 Additional requirements. 18.66.010 Purpose. Expand the mix of affordable housing opportunities within the city by permitting the creation of secondary dwelling units as an accessory use to existing single-family detached dwellings while maintaining the visual and functional character of single-family residential neighborhoods. (Ord. 2001- 002 § 1) 18.66.020 Definitions. A. "Accessory dwelling unit (ADU)" means a subordinate dwelling unit with complete and independent living facilities on the same lot as and detached from, attached to or contained within an existing single-family dwelling. B. "Rental occupancy" means nonownership including long term lease ownership per Chapter 18.59 RCW. (Ord. 2001-002 § 1) 18.66.030 Designation. One accessory dwelling unit shall be permitted only on parcels which meet the following conditions: A. Is a legally created lot; B. Contains one existing single-family detached dwelling which is a conforming use; C. Contains no other accessory dwelling unit(s). (Ord. 2001-002 § 1) 18.66.040 Procedure. Each accessory dwelling unit shall require an administrative permit as follows: A. The permit for an accessory dwelling unit shall be considered a Type A-1 permit per SMC Title 20 to be approved by the director of the department of community development. B. The required fee shall be submitted with the application for permit. The Sequim Municipal Code is current through Ordinance 2016-009, passed August 8, 2016. Sequim Municipal Code Chapter 18.66 ACCESSORY DWELLING UNITS Page 2 of 3 C. The application shall be made in accordance with submittal requirements on file with the department of community development. D. Prior to submitting an application the applicant shall meet with the department of community development to determine compliance of the property with current zoning codes. E. The permit shall be recorded prior to occupancy as a deed restriction to run with the land or until removed with the concurrence of the city. (Ord. 2011-017 §§ 1, 2; Ord. 2001-002 § 1) 18.66.050 Standards. A. New construction for an accessory dwelling unit shall comply with all the development standards for a single-family detached dwelling including, but not limited to, setbacks, height limits and lot coverage and shall not increase any nonconforming aspect of any existing structure unless otherwise addressed by this chapter. B. The following standards shall also apply: 1. The total floor area of the ADU shall not exceed 700 square feet or 50 percent of the area of the primary unit, whichever is less. 2. The ADU shall not reduce the size of the primary unit to less than two times the size of the ADU. 3. Both the ADU and the primary unit shall comply with the International Building Code regulations for smoke alarms. 4. If the ADU is attached to the primary unit, the main exterior entrances may not be on the same side of the building. 5. The architecture of the ADU shall match that of the primary unit. 6. One paved off-street parking space shall be provided in addition to those required for the primary unit. 7. There shall be no exterior stairway leading to the ADU on the front of the house. 8. There shall be no more than two bedrooms in an ADU. 9. Separate utility connections are not required by the city. 10. Any additions to the ADU shall meet the requirements of this chapter. C. An accessory dwelling unit which conforms to the standards in this chapter shall not be considered to exceed the allowable density for the lot upon which it is located and shall be considered a The Sequim Municipal Code is current through Ordinance 2016-009, passed August 8, 2016. Sequim Municipal Code Chapter 18.66 ACCESSORY DWELLING UNITS Page 3 of 3 residential use which is consistent with the comprehensive plan and zoning designation for the lot. (Ord. 2001-002 § 1) 18.66.060 Additional requirements. Accessory dwelling units shall be subject to the following requirements: A. Sale or ownership of such unit separate from the primary residential unit is prohibited. B. The occupant of either the ADU or the primary unit shall be the owner of the entire property. C. No more than three persons shall occupy an ADU. D. A permit for an ADU shall be subject to the payment of infrastructure impact or general facility fees equal to the established rate for a hotel/motel room. E. Prohibited occupancy or sale, in addition to authorizing all other remedies available to the city, shall constitute a zoning violation and a nuisance subject to abatement. (Ord. 2001-002 § 1) The Sequim Municipal Code is current through Ordinance 2016-009, passed August 8, 2016. Aa City of 45)„.54<04 Bellevue Development Services SHING4 Handout L-34 Home Occupation Permit What is a Home Occupation Permit? A Home Occupation Permit is a means by which the city may permit a business to be conducted in a dwelling by aresident of the dwelling. The business must be largely subordinate to the home. When is a Home Occupation Permit necessary? A Home Occupation Permit is required for any occupation or profession carried on in a dwelling unit, with three exceptions. A permit is not necessary for: • a business which has no external indication of commercial activity —including no nonresident employees, no client visits, no business -related deliveries, and no vehicle signage; • a family, child, and/or adult care/home located in a residence; and a business conducted in a dwelling within a nonresidential land use district, where the resident chooses instead to meet all commercial development standards. How are home occupations permitted? Home occupations are permitted through a Process II administrative decision. This means the director of Development Services makes the decision; no other review bodies are involved unless the approval is appealed to the hearing examiner. A home occupation can only be applied for by a resident of the dwelling. To gain approval, a home occupation must meet all of the following criteria: The business does not involve automobile - related services, warehousing of more than 1,000 cubic feet of materials, or external storage of goods. • The business is conducted wholly within a structure and utilizes no more than 25 percent of the gross floor area of the structure in which it is located. October 2010 No more than one person who is not a resident of the dwelling is participating in the business at the dwelling. There is no exterior display; no exterior alteration of the property, including expansion of parking; no exterior sign other than business signage on the applicant's vehicle; no exterior storage of materials; or other exterior indication of the business. There is no structural alteration to the interior or exterior of the structure which changes its residential character. There is no use of electrical or mechanical equipment which would change the fire rating of the structure or which would create visible or audible interference in radio or television receivers or which would cause fluctuations in line voltage outside the dwelling. • There is no noise, vibration, smoke, dust, odor, heat, or glare produced by the business which would exceed that normally associated with a dwelling. In addition to parking required for the residents, there are no more than two vehicles parked on or in the vicinity of the property as a result of the business at any one time. • There are no more than six client visits per day, and there is not more than one client on the premises at any one time. One client does include a family arriving in a single vehicle. • There are no more than two deliveries per week either to or from the residence by a private delivery service and no other use of a commercial vehicle other than that normally used by the applicant or an employee. The city may also consider: The location of the proposed home occupation in relation to traffic impacts and safety concerns to the adjacent neighborhood. The impacts the proposed home occupation may have on the residential character of the neighborhood. The cumulative impacts of the proposed home occupation in relation to other city -approved home occupations in the immediate vicinity. • The imposition of a condition under which the city reserves the right to impose additional conditions or to reconsider the home occupation within a certain timeframe from approval date, based on complaints filed with the city. Compliance with codes. The Home Occupation must satisfy the requirements of all technical codes adopted by the city (Bellevue City Code Title 23), including building, electrical, fire, and plumbing code requirements. Plat Restrictions. Some properties have restrictions placed upon them when subdivided and recorded. These restrictions may determine the permissibility and/or type of home occupation allowed in a particular residence. Does it need to be publicly noticed? Notices of application and decision for a Home Occupation Permit are noticed publicly and displayed on the City of Bellevue's website. They are mailed to all property owners within 500 feet of the subject property; to state, tribal, and federal government agencies; and to other parties who have requested public notices. Can a Home Occupation Permit be revoked? Upon determination that there has been a violation of any decision criteria or condition of approval, the director of Development Services may give written notice to the permit holder describing the alleged violation. Within 14 days of the mailing of notice of violation, the permit holder must show cause why the permit should not be revoked. At the end of the 14-day period, the director sustains or revokes the permit. When a Home Occupation Permit is revoked, the director notifies the permit holder by certified mail of the revocation and the findings upon which revocation is based. Appeals of decisions to revoke a Home Occupation Permit will be processed using the Process II appeal procedures (see Handout L-35, Appealing a Land Use Decision). Where can I get additional information? • LUC 20.30N • Permit Processing, 425-452-4898 for fee information. • Land Use Desk in Development Services for general questions, 425-452-4188 or landusereview@bellevuewa.gov. This document is intended to provide guidance in applying certain Land Use Code regulations and is for informational use only. It cannot be used as a substitute for the Land Use Code or for other city codes, such as the Construction Codes. Additional information is available from Development Services at Bellevue City Hall or on the city website at www.bellevuewa.gov. For land use regulations that may apply to your project, contact the Land Use Information Desk in Development Services. Phone: 425-452-4188. E-mail: landusereview@bellevuewa.gov. Assistance for the hearing impaired: dial 711. 9/20/2016 WAC 246-360-010: Definitions. WAC 246-360-010 Definitions. For the purpose of this chapter, the following words and phrases have the following meanings unless the context clearly indicates otherwise. (1) "Approved" means a written statement of acceptability issued by a governmental agency or meeting nationally recognized testing standards. (2) "Bathroom" means a room containing a bathing fixture. (3) "Bed and breakfast" means a private home or inn offering lodging on a temporary basis to travelers. This type of facility may include food service in accordance with chapter 246-215 WAC. (4) "Board" means the Washington state board of health established under chapter 43.20 RCW. (5) "Clean" means without visible or tangible soil or residue. (6) "Cleanable" means the material and finish is fabricated to permit complete removal of residue through normal cleaning methods. (7) "Construction" means: (a) A new building intended for use as a transient accommodation or part of a transient accommodation; (b) An addition, modification or alteration that changes the functional use of an existing transient accommodation or portion of a transient accommodation; (c) An existing building or portion thereof to be converted for use as a transient accommodation; or (d) A modification requiring a building permit by a local authority having responsibility for enforcing state and local building codes or local ordinances. (8) "Crisis shelter" means a transient accommodation, at a permanent physical location, providing emergency or planned lodging services to a specific population, for periods of less than thirty days. A crisis shelter may or may not be reimbursed for services in the form of rental fee or labor. (9) "Department" means the Washington state department of health. (10) "Dormitory" means a lodging unit containing beds, cots, pads, or other furnishings intended for sleeping by a number of guests. (11) "Exemption" means a written authorization granted by the department under WAC 246-360-500. (12) "Guest" means any individual occupying, or registered to occupy, a lodging unit. (13) "Hostel" means a transient accommodation offering lodging and limited services, that may include the use of a common kitchen, to guests on a daily or weekly basis in exchange for a rental fee, labor, or a combination of rental fee and labor. (14) "Laundry" means a central area or room with equipment intended to be used to dean and dry bedding, linen, towels, and other items, including such areas or rooms provided for guests' use. (15) "Licensee" means the person to whom the department issues the transient accommodation license. (16) "Local health jurisdiction" means the county or district that provides public health services within the area consistent with chapters 70.05 and 70.08 RCW. (17) "Lodging unit" means an individual room or group of interconnected rooms, intended for sleeping, that are for rent or use by a guest, and is individually designated by number, letter, or other means of identification. A lodging unit may or may not include areas for cooking and eating. (18) "Person" means any individual, firm, partnership, corporation, company, association, organization, or joint stock association, and the legal successor thereof. (19) "Retreat" means a transient accommodation intended to provide seclusion, meditation, contemplation, religious activities, training, or similar activities. (20) "Rustic resort" means a rural transient accommodation lacking many modern conveniences. A rustic resort may operate seasonally. (21) "Sanitary" means hygienic conditions that are conducive to good health. http://apps.Ieg.wa.gov/WAC/default.aspx?cite=246-360-010 1/2 9/20/2016 WAC 246-360-010: Definitions. (22) "Sanitize" means to treat a surface or object with a chemical or physical process, such as heat, to control or limit the presence of germs. For purposes of these regulations, "sanitize" and "disinfect" are equivalent. (23) "Self -inspect" means the licensee evaluates a transient accommodation for compliance with specific requirements in this chapter. (24) "Sink" means a properly trapped plumbing fixture, capable of holding water, with approved potable running hot and cold water under pressure. (25) "State building code" means chapter 19.27 RCW and any codes adopted and any rules and regulations promulgated under chapter 19.27 RCW. (26) "Survey" means the examination or inspection of a transient accommodation, conducted by the department to determine if minimal health and safety standards in chapter 246-360 WAC are being met. A survey may require one or more site visits and may be announced or unannounced. For purposes of these regulations, a survey and inspection are equivalent. (27) "Surveyor" means a department employee who conducts a health and safety survey of transient accommodations. For purposes of these regulations, the terms surveyor and inspector are equivalent. (28) "Transient accommodation" means any facility such as a hotel, motel, condominium, resort, or any other facility or place offering three or more lodging units to guests for periods of less than thirty days and may include food service operations in accordance with chapter 246-215 WAC. (29) "Utensil" means any food contact implement used in storing, preparing, transporting, dispensing, serving, or selling food or drink, excluding commercial vending and storage equipment. (30) "Vector" means an animal that transmits a disease -producing organism from one host to another. For example, mosquitoes are vectors that transmit malaria. (31) "Water closet" means a portable device or a fixture that has a hinged seat and flushing device used to dispose of body waste. This may include water filled, chemical or incineration toilets. [Statutory Authority: Chapter 70.62 RCW. WSR 04-24-002, § 246-360-010, filed 11/18/04, effective 4/1/05. Statutory Authority: RCW 70.62.240. WSR 94-23-077, § 246-360-010, filed 11/16/94, effective 12/17/94; WSR 92-02-019 (Order 225B), § 246-360-010, filed 12/23/91, effective 1/23/92. Statutory Authority: RCW 43.20.050. WSR 91-02-051 (Order 124B), recodified as § 246-360-010, filed 12/27/90, effective 1/31/91; WSR 89-11-058 (Order 328), § 248-144-020, filed 5/17/89; Order 71, § 248-144-020, filed 4/11/72.] http://apps.leg.wa.gov/WAC/defaultaspx?cite=246-360-010 2/2 San Juan Island County Code 18.40.270 Vacation (short-term) rentals of residences or accessory dwelling units (ADUs). The following standards apply to all vacation (short-term; less than 30 days) rentals of single-family residential units and accessory dwelling units or portions thereof: A. No more than three guests per bedroom shall be accommodated at any one time. B. The vacation rental of a principal residence or accessory dwelling unit shall be operated in a way that will prevent unreasonable disturbances to area residents. C. At least one additional off-street parking space shall be provided for the vacation rental use in addition to the parking required for the residence or accessory dwelling unit. D. If any food service is to be provided the requirements for a bed and breakfast residence must be met. E. No outdoor advertising signs are allowed. F. The owner or a long-term lessee may rent either the principal residence or the accessory dwelling unit on a short-term basis (vacation rental), but not both. G. Where there are both a principal residence and an accessory dwelling unit, the owner or long-term lessee must reside on the premises, or one of the living units must remain unrented. H. In all activity center land use districts, rural residential, and conservancy land use districts, the vacation rental of a'residence or accessory dwelling unit may be allowed by provisional ("Prov") permit only if the owner or lessee demonstrates that the residence or accessory dwelling unit in question was used for vacation rental on or before June 1, 1997. When internal land use district boundaries are adopted for an activity center, this provision will apply to VR and HR districts but not to the activity center in general. I. Vacation rental accommodations must meet all local and state regulations, including those pertaining to business licenses and taxes. J. Owners of vacation rentals must file with the administrator a 24-hour contact phone number. K. The owner or lessee of the vacation rental shall provide notice to the tenants regarding rules of conduct and their responsibility not to trespass on private property or to create disturbances. If there is an easement that provides access to the shoreline, this shall be indicated on a map or the easement shall be marked; if there is no access, this shall be indicated together with a warning not to trespass. L. Detached accessory dwelling units established under SJCC 18.40.240 cannot be separately leased or rented for less than 30 days. (Ord. 7-2006 § 8; Ord. 21-2002 § 5; Res. 145-1998; Ord. 2-1998 Exh. B § 4.19.3) 18.30.245 Olga Hamlet Plan — Categories of uses. 4. The transient rental of a residence or guest house may be allowed by provisional ("Prov") permit only if the owner or lessee demonstrates that the residence or guest house in question was used for transient rental on or before June 1, 1997; otherwise, a conditional use ("C") permit is required. Sumner Municipal Code 18.12.030 Accessory uses. Accessory uses permitted in the LDR district are uses and structures customarily appurtenant to the principally permitted uses, such as: A. Accessory dwelling units subject to the following criteria: 1. One accessory dwelling unit shall be allowed per legal building lot as a subordinate use in conjunction with any single-family structure; 2. Either the primary residence or the accessory dwelling unit must be occupied by the owners of the property. In addition, accessory dwelling units shall not be subdivided or otherwise segregated in ownership from the main building, except in accordance with subsections (A)(14), (15), (16) and (17) of this section. The owners shall sign an affidavit affirming that the owners will occupy the main building or the accessory dwelling unit as their principal residence for at least six months of every year. The owners shall sign a covenant agreeing to the conditions of this section which shall be recorded with the Pierce County auditor. The form of the affidavit and covenant shall be specified by the community development department; 3. The total number of occupants in both the primary residence and the accessory dwelling unit combined may not exceed the maximum number established by the definition of family in this title; 4. The accessory dwelling unit shall not contain floor area of Tess than 300 square feet and not more than 800 square feet, excluding any related garage area; provided, that if the accessory unit is completely located on a single story, with no basement, the director may allow increased floor area in order to efficiently use all floor area, so long as all other standards set forth in this section are met; 5. Repealed by Ord. 2300; 6. There shall be one off-street parking space provided for accessory dwelling units with one bedroom and two off-street parking spaces provided for accessory dwelling units with two or more bedrooms. Off-street parking spaces shall be in addition to that which exists on the site for the primary residence and located in a carport, garage, or designated space; 7. Except in the LDR 12,000 zone, accessory dwelling units shall be located only in the same building as the principal residence; 8. An accessory dwelling unit shall be designed to maintain the appearance of the main building of the single-family residence. If the accessory dwelling unit extends beyond the current footprint of the principal residence, such an addition shall be consistent with the existing roof pitch, siding and windows. If an accessory unit is detached from the main building it must also be consistent with the existing roof pitch, siding and windows of the principal residence. In addition, only one entrance for the main building will be permitted in the front of the principal residence. A separate entrance to the main building for the accessory dwelling unit shall be located either off the rear or the side of the building; 9. Height. Detached accessory dwelling units shall have a maximum building height of 16 feet for gabled, hipped and gambrel roofs and 12 feet for flat and mansard roofs, except that the height may be increased to 18 feet when it is necessary to match the existing roof pitch of the principal structure. In no case shall the second story contain exterior walls exceeding five feet in height on more than 50 percent of the perimeter of the second story; 10. Setbacks. Minimum yard setbacks for detached accessory dwelling units are as follows: a. Front yard setback in feet: equal to or greater than existing setback of the principal structure or the required setback, whichever is greater; b. Rear yard setback in feet: 15, except when the rear property line is abutting an alley, then five feet or that required for garage ingress and egress per SMC 18.12.080(E); c. Interior side yard in feet: five, except 10 when the building exceeds one story; or if the interior side property line is abutting an alley with vehicular access to a garage, then the setback is per SMC 18.12.080(E); and d. Street side yard in feet: same as required for the principal structure; 11. Setbacks. Minimum yard setbacks for attached accessory dwelling units shall be the same as the setback requirements for the principal structure; 12. Windows in living, dining, and great room areas located on the second story shall face interior to the site. Window area above the first floor shall not exceed 30 square feet in total cumulative window area for all windows on any one side facing the rear or side yards, unless bordering an alley where there is no limit on window area. There is no limit on window area located on the first story; 13. The accessory dwelling unit shall meet all technical code standards including building, electrical, fire, plumbing and other applicable code requirements; 14. The accessory dwelling unit may be subdivided from the original parcel; provided, that the minimum lot size, all yard requirements as well as other applicable dimensional standards, such as lot coverage, lot size and building height, of this title are met; 15. Accessory dwelling units constructed prior to January 1, 2008, may be subdivided from the original parcel; provided, that the minimum lot size, lot coverage, building height, and all other applicable dimensions in SMC 18.12.070 are met, except that interior side and rear yard setbacks do not have to be met; 16. If a pipestem lot is created in the LDR-6 zone for an accessory dwelling unit that existed prior to January 1, 2008, then the minimum lot size may be 6,000 square feet; provided, that the maximum lot coverage is 30 percent and all other applicable dimensional standards, including building height, in SMC 18.12.070 are met, except that the interior side and rear yard setbacks do not have to be met; 17. Accessory dwelling units that are subdivided from the original parcel shall meet the off-street parking standards in SMC 18.12.060 for the applicable zone; Nora Gierloff Location: Start: End: Uvvciiiiiy Loci!'iiiivii� UIJU Le Foster (CR 1) Wed 8/31/2016 11:00 AM Wed 8/31/2016 12:00 PM Recurrence: (none) Meeting Status: Meeting organizer Organizer: Nora Gierloff Required Attendees: Charlotte Archer; Minnie Dhaliwal Resources: Foster (CR 1) In addition to updating the boarding house definition we would also like to look at how our various regulations fit the Air B&B business model. Currently there is no limitation on the length of time an entire single family house may be rented, assuming that it does not qualify as a boarding house. 18.06.247 Dwelling, Multi -Family "Multi -family dwelling" means a building designed to contain two or more dwelling units. Duration of tenancy in multi -family dwellings is not Tess than one month. 18.06.063 Bed -and -Breakfast Lodging "Bed -and -breakfast" means an owner -occupied dwelling unit that contains guest rooms where lodging is provided for compensation. Bed and breakfast lodging for not more than twelve guests- Conditional use in LDR, MDR and HDR 5. Bed and breakfast facilities, provided: a. the manager/owner must live on -site, b. the maximum number of residents, either permanent or temporary, at any one time is twelve, c. two on -site parking spaces for the owner and permanent residents and one additional on -site parking space is provided for each bedroom rented to customers, d. the maximum length of continuous stay by a guest is 14 days, e. breakfast must be offered on -site to customers, and f. all necessary permits or approvals are obtained from the Health Department. 1 Commission and forwarded the proposed changes to the City Council for review and r nsideratinn: and WHEREAS, on March 11, 2010, King County re-released portions of the RFP soliciting vendors to respond to King County's requests to operate a crisis diversion facility in King County; the RFP included additional information, clarifying and changing the needs of the proposed facilities; and WHEREAS, on March 15, 2010, the Tukwila City Council was briefed on King County's Crisis Diversion Program and the , proposed code changes recommended by the Planning Commission; and WHEREAS, King County has provided clarity to the City regarding the need for transit near crisis diversion facilities and crisis diversion interim service facilities; and WHEREAS, on April 12, 2010, the Tukwila City Council, following public notice, held a public hearing to receive testimony concerning the recommendations of the Planning Commission; and WHEREAS, given the important nature of these facilities and to ensure the City Council has needed information regarding the operation of crisis diversion facilities and crisis diversion interim service facilities, the City Council continued the public hearing to the May 3 and May 17, 2010 Tukwila City Council meetings; and WHEREAS, during the public hearing, the City Council heard testimony from providers with specific knowledge of the operation of crisis diversion programs. These providers testified that these crisis diversion facilities should not be placed in crowded, commercial areas, that the crisis diversion facility would not be a compelled facility, and that police would be called if a police diversion wishes to leave the facility against the advice of staff; and WHEREAS, on May 3, 2010, pursuant to its authority under TMC Section 18.80.060, the City Council indicated a desire to modify the proposal forwarded by the Planning Commission and made a motion requesting that City staff examine the West Valley Highway area of the City to determine if the area met King County's criteria; and WHEREAS, West Valley Highway was specifically called out as a desired route to have access from in King County's RFP; and WHEREAS, the West Valley Highway area has easy access to Interstate 5, Interstate 405, and State Route 167; and WHEREAS, the West Valley Highway area has the needed mass transit, as outlined by King County staff; and WHEREAS, the West Valley Highway area meets all of the location criteria established by King County for these facilities; and WHEREAS, the 24-hour nature of crisis diversion facilities makes these facilities incompatible with residentially -zoned neighborhoods; and WHEREAS, the area proposed for the Crisis Diversion Program is zoned commercial/light industrial, in which permanent residential uses are excluded from the zoning; and WHEREAS, the Tukwila City Council has reviewed the staff report with supporting attachments, dated February 18, 2010, and the recommendation of the Planning Commission; and WHEREAS, the SEPA Responsible Official has issued an addendum to the February 12, 14 U (... 2010 Determination of Non -Significance; and WHEREAS, the Tukwila City Council has reviewed a revised staff report dated May 12, 2010; and NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY ORDAINS AS FOLLOWS: v� � r07. Section 1. Definition Added. A new definition is added to TMC Chapter 18.06 to read as follows: Diversion facility" is a facility that provides community crisis services, which diverts people from jails, hospitals or other treatment options due to mental illness or chemical dependency, including those facilities licensed as crisis stabilization units by the State of Washingon. Section 2. Definition Added. A new definition is added to TMC Chapter 18.06 to read as follows: "Diversion interim services facility" is a facility that provides interim or respite services, such as temporary shelter, medical mental health treatment, case management or other support W:\Word Processing\ Ordinances \ Diversion West Valley.doa MD:ksn 05/13/2010 Page 3 of 37 \,� ��- 6- I, albboel as t3iNe..-wse, to G/2--1 Nora Gierloff From: Caroi �urnu Sent: Tuesday, May 01, 2012 10:28 AM To: Minnie Dhaliwal; Nora Gierloff; Kathy Stetson Subject: RE: Vacation Rentals question Yes, that is what we talked about when Mr. Rosso wanted to use his house in Foster Point for vacation rentals. From: Minnie Dhaliwal Sent: Tuesday, May 01, 2012 10:16 AM To: Nora Gierloff; Kathy Stetson Cc: Carol Lumb Subject: RE: Vacation Rentals question I think it meets the definition of Boarding House -"means a residential building or use which provides housing on a short term commercial basis for tenants". Boarding homes are not permitted in LDR zone and it is a conditional use in MDR and HDR. From: Nora Gierloff Sent: Tuesday, May 01, 2012 10:02 AM To: Kathy Stetson Cc: Minnie Dhaliwal Subject: RE: Vacation Rentals question I don't see this as addressed by the Zoning Code. It doesn't fit into the definitions of 18.06.065 Bed and breakfast lodging or 18.06.073 Boarding House. 18.06.250 Dwelling, Multi -family and 18.06.287 Extended -Stay Hotel or Motel are defined as having a tenancy of not less than one month. I would think that they would need to comply with the usual regulations for rental housing (business license, inspections) but that we don't have any specific regulations for short term rentals. Minnie do you have any thoughts? From: Kathy Stetson Sent: Friday, April 27, 2012 4:09 PM To: Nora Gierloff Subject: FW: Vacation Rentals question I'm forwarding this to you as I don't know how to answer. Let's talk... From: jon.beutler.jr@&gmail.com[mailto:jon.beutler.jr@gmail.coml On Behalf Of Jon Beutler Sent: Friday, April 27, 2012 3:45 PM To: Kathy Stetson Subject: Vacation Rentals question Hi there! I have a question about vacation rentals in Tukwila. I am the regional manager for Vacasa Rentals, and we represent and manage many vacation properties throughout the Puget Sound area. I wanted to find out if there are any specific permits needed to have a home as a vacation rental (less than 30 days). Any information you could give me would be greatly appreciated. 1 Thank you, Jon - Jon Beutler Puget Sound/San Juan Islands Regional Manager jon@vacasarentals.com 425.446.1895 (Cell) 360.342.0331 (Office) 2 Nora Gierloff Subject: Location: Start: End: Show Time As: Recurrence: Meeting Status: Short Term Rentals My Office Tue 5/22/2018 10:00 AM Tue 5/22/2018 11:00 AM Tentative (none) Not yet responded Organizer: Nora Gierloff Required Attendees:Charlotte Archer Optional Attendees:Minnie Dhaliwal Minnie and I are available any time between 9 and 11 if you want to shift. From: Charlotte Archer <CharlottePkenyondisend.com> Sent: Thursday, May 17, 2018 12:36 PM To: Nora Gierloff <Nora.Gierloff@TukwilaWA.gov> Cc: Minnie Dhaliwal <Minnie.Dhaliwal@TukwilaWA.gov> Subject: RE: Short Term Rentals Thanks Nora, that timeline seems reasonable to me. I can come to City Hall anytime next week, my week is open. Thanks, Charlotte Charlotte A. Archer Kenyon Disend, PLLC 11 Front St. S. Issaquah, WA 98027-3820 Tel: (425) 988-2204 www.kenyondisend.com From: Nora Gierloff[mailto:Nora.Gierloff@TukwilaWA.gov] Sent: Wednesday, May 16, 2018 12:40 PM To: Charlotte Archer <Charlotte@kenyondisend.com> Cc: Minnie Dhaliwal <Minnie.Dhaliwal@TukwilaWA.gov> Subject: RE: Short Term Rentals Hi Charlotte, Most of the energy on Monday was focused on ADUs and the Council decided to send that issue back to CDN for more discussion. There are councilmembers on both sides of the short term rental issue but they decided to forward it to PC without much direction. The June 28th date is open and I would like to aim for that. If you could start on a staff report that would be great. I would go with a policy discussion and strikeout/underline format and hold off on putting it into 1 ordinance format until we get back to Council. Attached is an example of how we presented the ADU changes. I will start working on outreach to the public and rental agencies. If you are going to be in Tukwila soon let's get together in person to iron out the approach. Nora From: Charlotte Archer <Charlotte@kenyondisend.com> Sent: Wednesday, May 16, 2018 7:44 AM To: Nora Gierloff <Nora.Gierloff@TukwilaWA.gov> Subject: Short Term Rentals Hi Nora, I wanted to check in and see next steps for the short term rental/rental clean-up ordinance; in happy to draft (or review) quickly, given what I believe was a short turnaround. I discovered, in reviewing my calendar today, l had the study session in the wrong date - I apologize, and hope my absence did not delay the proceedings. Please let me know how I can be of further assistance, and again, I apologize for the confusion in my part. Regards, Charlotte Charlotte A. Archer Kenyon Disend, PLLC 11 Front St. S. Issaquah, WA 98027-3820 Tel: (425) 988-2204 www.kenyondisend.com 2 • COUNCIL AGENDA SYNOPSIS I nitiu/s Aaleeling Dale Prepared by Mayor's review Council review 04/09/18 NG Ct' 05/14/18 NG (NJ 1 ITEM INFORMATION ITEM No. 4.B. S'I';\I'I' SP0NS0R: NORA GIERLOFF ORIcINAI. AcI•:ND:\ DAM:: 04/09/18 Ac.;I:NDA I'I'r.:NI TrrI.k Update to Short Term Rental Regulations 4/9&5/14 ❑ Molion Altg Date ❑ Resolution 'Wag Dade ❑ Ordinance ill{g Date ❑ Bid .Award iWig Dade ❑ Public 1-learing A4/g Dale ❑ Other A4tg Date C.\ I'I'x;oi Y /1 Discussion Altg Dale SPONSOR ❑Council Mayor ❑I-IR 0 DCD ❑.Finance Fire TS ❑Pry R ❑Police ❑PII% Court SPONSOR'S A review of Tukwila's short term (less than 30 day) rental housing regulations for SUMMARY accessory dwelling units, single family houses, multi -family units, and boarding houses. Council consensus is requested to choose to allow or prohibit the different types of short- term rentals, and send the issue to the Planning Commission for a public hearing and recommendation. RI:vII:\\'I:u By ❑ C.O.\\t. Mtg. ❑ Trans &Infrastructure DATE: 3/13/18 CDN Comm ❑ Finance Comm. ❑ Public Safety Comm. ❑ Parks Comm. ❑ Planning Comm. COMMITTEE CI -LAIR: KRULLER ❑ Arts Comm. RECOMMENDATIONS: SPONS( )R/AI:MIN. CO1-IMI Department of Community Development rl'I:I : No Recommendation, Forward to Full. Council COST IMPACT / FUND SOURCE EXI'I{NDI'I'URI? RI:QUIRI:I) AMOUNT BUDGETED APPROPRIATION REQUIRED $ $ Fund Source: Comments: MTG. DATE RECORD OF COUNCIL ACTION 4/9/18 Forward to 5/14 C.O.W. MTG. DATE ATTACHMENTS 4/9/18 Informational Memorandum dated 3/6/18 with attachments, updated 3/23/18 after CDN Minutes from the Community Development and Neighborhoods Committee of 3/13/18 5/ 14/ 18 As above cc e-tvvi Sys rye,-424_✓r - r i'CJ O r1 "1 r 12.1*1 l D br C t - �.�- w` a 5 143 � � - - \ w,�l��s- ca�1� - a s I a.. 1 rdt Ie.c_sres- - t-CC- 'I)Le-5 re.-"X-r-4c• to q„),n.Ls- - GT4 A 1 1r\rf_ )C1 - d( �- w�- - r`c ,r` �- \ oc...-fir 5 \f\ L,v S �- - U t! "" , G(A-c)rov 5 CA03 J- - I l •Le \ C,G.t LA)� �,; arm Or, 2? ; ,, I�SS 2 c-vb\,w �4...,, r A-,r i3-k-3 �✓�S r^e � -t�7 M �x � Can c.A.)--rx S - ram.. 5 b 5 5s - - k,,DLJ S , i l (_A— Ca 0 e-L. - M ✓ t �.�C A� c�G ^Scv ✓� a�,� /vim cam✓` c� oQor. t td Pt2i — `mac --�` �- -� J C-- 1�.1L - mil- cat."vk "PC-- / ��- c�a 3 S \r e �^ ,\ Z - vs 66 City of Tukwila Allan Ekberg, INFORMATIONAL MEMORANDUM TO: Community Development and Neighborhoods Committee FROM: Jack Pace, DCD Director BY: Charlotte Archer, Asst. City Attorney; Nora Gierloff, Deputy DCD Director; Minnie Dhaliwal, Planning Supervisor CC: Mayor Ekberg DATE: March 23, 2018 SUBJECT: Short-term Rental Regulations (Updated after CDN Committee) ISSUE Should Tukwila update its short-term residential rental regulations to address ADUs and single family houses? BACKGROUND In conjunction with the City's discussions pertaining to detached accessory dwelling unit (ADU) regulations, which began in March 2017, the City Council requested a review of the City's regulation of short-term (defined as a period of Tess than thirty days) rentals within the City. This review was intended to focus on the use of single-family and multi -family residences, as well as both attached and detached ADUs, for the purpose of obtaining rental income, commonly via an online marketplace such as HomeAway, Vacation Rental By Owner ("VRBO") or AirBnB. Anecdotally, property owners in the City are using their residential structures for both short- and Tong -term rentals on a regular basis (see Attachment A). The intention for this project was to review and revise, where necessary, the standards for rentals.' A. Existing Regulations for Short and Long-term Rentals. Whether a particular residential building located within the City may be used as a short-term or long-term rental is determined by the regulations set out in Title 18 TMC Zoning Code. Currently, multi -family dwellings shall not be used for a rental tenancy of less than one month. See TMC 18.06.247. There is no prohibition on the use of a multi -family dwelling as a long-term rental. 1 Beyond the scope of this analysis are the following, which are subject to distinct regulations: Assisted Living Facilities (TMC 18.06.058); Continuing Care Retirement Communities (TMC 18.06.170); Convalescent/Nursing Homes (TMC 18.06.173); Correctional Institutions, including transitional housing (TMC 18.06.178); Extended -Stay Hotel or Motels (TMC 18.06.287); Hotels (TMC 18.06.440); Motels (TMC 18.06.585); Secure Community Transitional Facilities (TMC 18.06.706); Senior Citizen Housing (TMC 18.06.708); Shelters (TMC 18.06.743); commercial properties used for the purposes of short-term and extended -stay housing, such as motels, hotels, and extended stay motels. 67 INFORMATIONAL MEMO Page 2 There is no restriction on the use of a single-family dwelling as a short- or Tong -term rental. Similarly, there is no restriction on the use of mobile home dwellings in mobile home parks for short- or long-term rentals. Moreover, Tukwila's current standards for attached ADUs permit the rental of the ADU but require owner -occupancy of the either the primary residence or ADU. The draft ADU ordinance that allows detached ADUs has a placeholder ban on rentals of less than 30 days. That could be modified based on the Council's overall decision about short-term rentals. There are other categories of uses that may be used for short- and long-term rentals, including: • Dormitories defined as "a residential building or use which provides housing for students attending an affiliated school or housing for members of a religious order." • Boarding House defined as "a residential building which provides housing on a short-term commercial basis for tenants" is a conditional use in the MDR and HDR zones. • Bed and breakfast facilities defined as "an owner occupied dwelling unit that contains guest rooms where lodging is provided for compensation," are permitted in the LDR, MDR and. HDR zones as conditional uses (for up to twelve guests), and guests shall be limited to a 14-day maximum length of stay. Tukwila has never received an application for a bed and breakfast conditional use permit. Two other residential uses currently not identified in the TMC may also be affected by an amendment to the City's existing regulations for short- and long-term rentals. First,adult family homes (AFH)2 could arguably be considered residential properties used for rental purposes; however, state law prohibits the City from enacting regulations that put up a road -block to the placement of AFHs in all areas zoned for residential purposes. Second, the same analysis would likely apply to a residence used to house people with disabilities, including the recovery from a drug addiction.3 B. Existing Licensure Requirements for Rental Properties. Tukwila's Residential Rental Business License and Inspection Program, codified at Chapter 5.06 of the Tukwila Municipal Code (TMC), establishes an annual rental licensure requirement for all "units" intended for rent. Each dwelling unit must be inspected for life safety issues every four years and a Certificate of Compliance is issued by the City for those units that meet all requirements. The code is silent about whether it applies to short-term rentals. C. Regulation of Short -Term Rentals by Neighboring Jurisdictions. Staff analyzed the methods other cities in Washington utilize to regulate short-term rentals to develop a proposed model for Tukwila, see Attachment B. This issue is currently being debated in many jurisdictions in Washington in light of the dramatic recent growth of major companies in the short-term rental industry, as well as the housing crisis in the greater Seattle area. 2 Adult family homes are defined by state law as "a residential home in which a person or persons provide personal care, special care, room, and board to more than one but not more than six adults who are not related by blood or marriage to the person or persons providing the services." RCW 70.128.010. 3 See RCW 36.70.990. 68 INFORMATIONAL MEMO Page 3 On December 11, 2017, Seattle adopted new regulations to prevent property owners from operating short-term rentals as if they were hotels, as part of a larger effort to ensure an adequate supply of long-term rental stock for the City's permanent residents, see Attachment C. The new regulations limit hosts to two dwelling units each and requires a special license to operate said rentals. The City also requires short-term rental platforms, such as AirBnB, HomeAway and VRBO, to obtain a special "platform license" to facilitate bookings in Seattle. In advance of adopting these regulations, the City approved a new tax on short-term rentals, again designed to prevent property owners from operating short-term rentals as if they were hotels. Similarly, in October 2017, the City of Kirkland adopted Ordinance 0-4607, which regulates rentals lasting for less than thirty days. Properties must be owner -occupied at least 245 days per year and a "Short -Term Rental Business License" from the City is required. The use of an ADU as a short-term rental is allowed for up to 120 days per year, as long as the property owner (or authorized agent) occupy the primary residence for at least 245 days per year. A property manager must live within 15 miles of the residence when residence is used for short-term rental purposes. The City further dictates terms that must be included in the rental agreement, including a provision that "encourages renters to exercise best efforts to avoid conflicts with neighbors related to issues such as noise, littering, parking and trespass." The City also requires a business license for long-term rentals, including owner -occupants with a roommate. ANALYSIS Council is being asked to set a policy direction on short-term rentals. A. Advantages of Permitting Short -Term Rentals. Given the results of Staff's search (see Attachment A), there appears to be an existing marketplace for the short-term (defined as 29 days or less) rental of single- and multi -family dwellings in the City. This is occurring despite the codified prohibition on the use of multi -family dwellings for this purpose. From a policy perspective, short-term rentals can bring -numerous benefits to those who operate them, their visitors, and the surrounding neighborhood. Many Some homeowners use short-term rentals to help affor-d-offset the cost of their own -home, eitkhefincludinq renting out a basement, a spare room, or the entire home when they are out of town thermselvee. They. Kent. for example, adopted regulations to allow the rental of ADUs "ftlo make homeownership more affordable because it will be easier to buy both new and existing homes with the help of an accessory dwelling unit."4 SeaTac likewise currently permits the use of ADUs for rent to "increase opportunities for home ownership and allow older homeowners to remain in their homes and obtain extra income. companionship. and security."' Some jurisdictions find that ADUs may increase the supply of affordable rental units and may provide a variety in affordable rental units. Additionally, short-term rentals may provide a flexible n ecr,s for homeowr:ere to earn more money than by renting out the prcpertygreater return on investment for homeowners looking to rent. as short-term rental rates often outpace rates for rentals on a long-term basis. _For visitors, short- term rentals often offer a more affordab!e ept on, and short -terra re^+lemay cost less than 4 Kent City Code 4 18.08.350(3). 5 SeaTac Municipal Code § 15.465.100(A)(4). 69 INFORMATIONAL MEMO Page 4 traditional hotels or motels, which in turn provides a means to bring tourists and their collective spending power to Tukwila. B. Disadvantages of Permitting Short -Term Rentals. TheSome iurisdictions have recently studied the rise in the use of rental properties as short-term rentals has-alse-hadand the negative impacts iRsuch rentals have had to communities throughout Washington. SheftFor example, Seattle recently studied the impact short-term rentals Gan ^rt fic! y r'fbtc rent!! costohad on affordable housing within the City. and found that the more commercial use of short-term rental platforms -hws taken en+:re (by commercial operators, rather than traditional single-family homeowners) has resulted in the removal of houses, condos and apartments efffrom the long-term housing market. Some c .ort term rentals See Attachment C. The significant impact of short-term rentals on affordable housing availability was also the subject of a Harvard Law and Policy Review article. which concluded So Tong as a property owner or leaseholder can rent out a room on Airbnb for cheaper than the price of a hotel room, while earning a substantial premium over the residential market or rent -controlled rent, there is an overpowering incentive to list each unit in a building on Airbnb... In tight housing markets with near -zero vacancy rates, a sudden reduction in supply naturally increases rents, particularly because neither the market nor the public sector can swiftly add to the housing stock.6 In addition, some jurisdictions have found that some short-term rentals can attract disruptive vi:ltcrc, whc are essentially vacationing withinvisitors to residential areas, and can which may have a negative impact on property values. A study commissioned by the hotel industry indicated some short-term rentals may have negative impacts on p=epeFtyvalues. Some stadie .. ve indicated some ccr 'crcic.ized short term rentals impact the hotel/motel industry-aR4.7 Short- term commercial rentals are likely subject to the largerCity's business community, bylicensure and tax requirements. but do not pay thereby circumventing traditional lodging taxes. ShoFtThere is also some evidence in the aforementioned studies that short-term rentals may also contribute to creating a transient community, and ineFeasecreate an increased parking demand in residential areas. Some of these negative effects may be mitigated by placing restrictions on commercial short-term rental operators, or by only allowing rentals of rooms within owner occupied dwellings as opposed to entire units. However, regulating the short or long-term rental of individual rooms within an owner -occupied dwelling would be a significant expansion of the Residential Rental Business License program. Additionally, without cooperation from the online rental platforms it is difficult to identify properties and enforce the current short-term rental regulations. We receive' lodging tax as a lump sum and AirBnB only reports aggregate rental data, rather than by address. Currently, the City has no permitted Bed and Breakfast facilities. This appears to be a somewhat antiquated form of residential use, with the rise of AirBnB and other online alternatives. The City 6 Full article available at http://harvardlor.com/wp-content/uploads/2016/02/10.1 10 Lee.pdf. Full article available at http://www.cbrehotels.com/EN/Research/Pages/An-Analvsis-of-Airbnb-in-the-United- States.aspx. 70 INFORMATIONAL MEMO Page 5 is aware of a few Boarding Houses within the City and there are ongoing code enforcement complaints relating to un-permitted Boarding Houses in the LDR zoning district (where this use is prohibited). The existing definition of a Boarding House makes this regulation difficult to enforce,. given its use of undefined terms like "short-term" and "commercial basis." Similarly, there is no cap on the number of tenants that may reside in one residential building, no requirement that the building is owner -occupied, and no other relevant regulations such as higher parking standards. C. Options. With this context in mind, the City could opt to prohibit short-term rental of all dwelling units within the City, including entire single-family residences, rooms within owner -occupied residences, multi -family residences, ADUs (attached and detached), mobile and manufactured homes, Bed and Breakfast facilities, and Boarding Houses. Alternatively, the City could permit the use of some or all types of dwelling units as short-term rentals, subject to restrictions such as: (1) limitations on the number of lease agreements per dwelling unit; (2) caps on the number of occupants per bedroom; (3) the length of time the dwelling unit may be occupied by a tenant within a calendar year; (4) require certain amount of parking stalls for the property, if used for rental purposes; and/or (5) owner -occupancy requirements. As discussed briefly above, there are additional restrictions from state law on regulations for adult family homes and inpatient substance abuse facilities. The City Attorney would craft language for these uses based on the overall direction from Council. FINANCIAL IMPACT Allowing short-term rentals and requiring them to be licensed would modestly increase the revenue to the Rental Housing Program. Enhanced enforcement of short-term rental restrictions would require additional resources. RECOMMENDATION The Council is being asked to review Tukwila's short-term residential rental regulations, chose to allow or prohibit the different types of short-term rentals, and send the issue to the Planning Commission for a public hearing and recommendation. ATTACHMENTS: A. Results of Staff Review of Rental Listings. B. Table of Neighboring Jurisdictions' Regulation of Short-term Rental Properties C. Regulating Short Term Rentals Seattle Policy Brief 71 INFORMATIONAL MEMO Page 6 ATTACHMENT A Staff Research Regarding Existing Short -Term Rental Stock Staff reviewed the inventory of short-term rental properties (as advertised on Craigslist, VRBO and AirBnB), in order to determine the scope of the existing use of these services. A review of AirBnB and VRBO, on December 28, 2017, found approximately 35 short-term rentals offered in Tukwila, including the following: - Three bedroom home, for $149/night Private room in single family home, for $38/night Towne and Country Hotel, Furnished 3 bedroom suite for $250/night Two bedroom condo, for $135/night One bedroom condo, for $85/night Studio cabin (ADU), for $55/night Guesthouse (ADU), for $65/night Room in single family home with private bath, for $40/night Private room in single family house, for $56/night • - Private room in three -bedroom apartment, for $60/night Single family home, for $112/night - Detached ADU (Cottage), for $80/night - Private room in single family home, for $45/night - Two bedroom apartment, $120/night 72 -a, • INFORMATIONAL MEMO Page 7 ATTACHMENT B Neighboring Jurisdictions' Regulation of Short -Term Rentals Jurisdiction Single -Family Residences ADUs (Detached or Attached) Multi -Family Residences Licensure Requirements (if any) Relevant Code Citations Tacoma Permitted: (11 Permitted, up May rent 3-9 Must obtain a TMC 13.06.575 — mav rent the to 4 people in quest rooms, Business Short Term entire dwelling all Residential, after License: must. Rentals: TMC to one family or Commercial, receiving an obtain a 13.06.150.C.7 — a group of up to Mixed -Use, approved Transient Short Term 6 people in all and Downtown Conditional Accommodation Rental in ADUs: Residential, Districts Use Permit License if TMC 6B.20 — Commercial, (CUP), in R- renting 3 or Annual Business Mixed -Use, and 3, R=4L, R-4, more rooms. License: TMC Downtown R-5, RCX, 6B.140 — Districts: (2) and NRX Transient may rent 1-2 Districts Accommodations quest rooms (these are within an owner- generally occu • ied residential dwelling in all districts that Residential allow duplex, Districts, triplex, and including single- multifamily family districts. dwellings). SeaTac No prohibition, Permitted, No prohibition, N/A SMC Ch. 15.465 no reputation owner- occupancy no regulation requirement and maximum occupancy restrictions (based on size) Renton No prohibition, Permitted, with RMC 4-2- no regulation conditional use 080(A)(7) permit and owner - occupancy. Kent "Dwelling unit" Permitted, No prohibition. Business KCC 15.02.130: defined to imply owner- License KCC Ch. 5.14 rental of entire occupancy .no regulation Required unit can be on a requirement weekly, for six months monthly, or every calendar longer basis year. 73 INFORMATIONAL MEMO Page 8 Puyallup Bed and Permitted. PMC 20.20.015: Breakfast owner- PMC House occupancy 20.20.010(11) permitted, requirement subject to owner occupancy and occupant cap with conditional use permit Sumner Presumably Permitted, No prohibition N/A SJC 18.04.0940; permitted (no owner- SMC 18.10.030 ex•ress occupancy prohibition, requirement althou • h and maximum restriction that occupancy dwelling shall restrictions be used for"one (based on family") size) Bothell Bed and Permitted. BMC 12.06.110 Breakfast owner - facilities occupancy (for permitted in 6 months) most zones, required and canoed at four cap on bedrooms and occupancy subject to parking restrictions and owner - occupancy Poulsbo Permitted Prohibited Prohibited None PMC 18.70.070 San Juan County Permitted, no more than 38 guests per bedroom; parking required Permitted (attached only), max 3 guests per bedroom; parking required; owner must occupy ADU or primary residence Permitted in Commercial zone only "Vacation Rental Permit' required SJCC 18.40.270 8 San Juan County Council is currently considering legislation to reduce this to two guests per bedroom. 74 • INFORMATIONAL MEMO Page 9 Clyde Hill Permitted, with limits on occupancy, parking, and use (for lodging only, can't be used for events) Permitted, with limitations on occupancy, parking, and use (for lodging only, can't be used for events) Permitted, with limits on occupancy, parking, and use (for lodging only, can't be used for events) Business License Required Ch. 5.20 CHMC Ilwaco Conditional use in single-family, zones with limits on occupancy and parking. Permitted use in certain specified zones Permitted use in certain zones Business License Required Ch. 15.41 IMC Leavenworth Prohibits use of entire dwellings as vacation rentals; permits short-term rental of a portion of a home when the property owner lives on -site throughout the visitor's stay with appropriate permits, including a business license Permitted, subject to owner- occupancy requirement and permitting Prohibited Business License Required LMC 18.52.120 Westport Permitted, subject to occupancy cap, parking and other standards Permitted, but only 1 vacation rental unit per "property" • Prohibited . Business License Required Ch. 17.22 WMC 75 . 000, st Pad • NW 96th St r. 5▪ CROWN HILL K s Park HILL GD NW 85th St LOYAL HEIGHTS m BALLARD NW Seth St Chittenden Lock a� Discovery - Bainbridge Isiand jit MAGNOLIA 5th St GREENWOOD D z PHINNEY RIDGE NW Market St Woodland Park Zoofj NW 46th St Seattle • Bainb klge Island FRE Boston St 3 m en vrth Seattle College ot 2 MAPLE LEAF N 85th St N 80th St D oPand N LAKE N50thSt WALLINGFORD N 34th St As EN ANNE W 7L SOUTH LAKE UNION." Denny Way Washington State Convention Centel EI PLACE RKET D NE 75th St 3 g> NE 65th St RAVENNA z 3 n "' NE50thSt University Village ® NE 45th St NE 45th St tit University of D Washington vF WEDGW000 NORTHEAST VIEW RIDGE. SEATTLE NE 75th SI NE 55th St MOHiLAILE ♦ten-„ fa Park Perk / Arboretum Warren C.• NE70th St m MdPark NE b5th St HAWTHORNE HILLS NEb01h St 0 WINDERMERE zoS 1ley NE tirrR attot a m caQ NE Sots sl LAURELHUI AIA0ISON P RH r O I? r D CAPITOI HILL ' o rr a / ▪ IIARRISON ry DENNY•BLAIN MADRONA E Cherry St REGULATING SHORT TERM RENTALS POLICY BRIEF OFFICE OF COUNCILMEMBER TIM BURGESS SEATTLE CITY COUNCIL Please Direct Questions to Seferiana Day / Office of Councilmember Tim Burgess seferiana.day@seattle.gov / 206-684-8806 / 600 4th Ave . 2nd Floor . Seattle, WA 98104 UPDATED APRIL 2017 Sao.'" SW Motgan S,, ? j h r W ▪ A SW Holden St SW Holden St DELRIG0E \GLORGErOWN' 1 t� King County \ In rgnalional Airport RANGER VALLEY ' ITH PA Mt' NOW' NEW NO 4 a 77 .`r 4 " • • .d' Y • • • tl • '�-.TMcr • a :_ • :•.=•a r; .�; • •• •. • •• . _.. •• • l. :. s• •. A�••••— SeStU7 A. F.z •� p.._ • `•- a i. • • • • • • • �. • • q • •.1 • . �y.•. •• � ••r �v •iStr At r • •• • • • • Estimated AirBnB rental reviews in Seattle in July 2013 (top) and July 2015 (bottom). Data from insideairbnb.com Introduction For many years, short term home rentals have been a popular lodging choice for travelers in Europe and certain high volume tourist destinations in the United States. With the advent of technology -based online platforms that facilitate the marketing and booking of short term rentals, this market has rapidly expanded across the globe. One need only look at the rise of two of the major companies in the short term rental industry to view the incredibly fast pace of growth. Airbnb received its first $20,000 seed grant in 2009.1 In December 2015, less than seven years later, the company confirmed a round of $1.5 billion in venture capital funding, bringing its total valuation up to $25.5 billion.2 Its website now touts more than 2 million listings available in 34,000 cities across 191 countries.3 HomeAway, another vacation rental company that includes the website VRBO.com (Vacation Rentals by Owner), launched in 2006 and also grew rapidly; the company's website states its annual revenue increased 28.9% in 2014 over the prior year.4 Previously a publicly traded company on the NASDAQ exchange, Homeaway was acquired by Expedia in late 2015 for $3.9 billion, a price nearly 20% higher than its market value at that point.5 It currently offers more than 1 million listings in 190 countries.° No evidence suggests that the growth of this industry in Seattle is any different. While Seattle -specific data has not been made publicly available by major players in the short term rental marketplace, external websites scrub Airbnb listings data and aggregate the information for market analysis. These websites show recent rapid growth in the number of listings.' Airbnb states on its website, "The number of guests using Airbnb has grown steadily since 2009, with visitation more than doubling every year." 2 78 "My landlord is a nice guy, he has kept the rent relatively reasonable for me and my partner, but he's recently informed us we will need to leave in a few months because he wants to rent out the property on Airbnb." -K., Seattle resident Benefits and Challenges of Short Term Rentals Short term rentals bring numerous benefits to those who operate them, their visitors, and the surrounding neighborhood. Many individuals use short term rentals as a way to help afford their own home, either renting out a basement, a spare room, or the entire home when they are out of town themselves. In a housing market that presents affordability challenges, there is no doubt short term rentals alleviate the housing burden for the many families that operate them. For visitors, short term rentals often offer a more affordable option. Short term rentals bring tourists, wedding parties, visiting family members and their collective spending power to neighborhoods across Seattle. Airbnb recently estimated the economic impact of its visitors in Seattle was $178 million from August 2014 to July 2015, supporting 1,700 jobs.8 At the same time, the more commercial use of short term rental platforms has taken entire houses, condos and apartments off of the long term housing market. One external website estimates that roughly one-third of Airbnb's listings in Seattle are from hosts with multiple listings. These could be multiple rooms in a house or completely separate units; hosts with multiple listings are more likely to be commercial operators not renting portions of their own primary residence.9 A recent report published by CBRE Hotels' American Research found that 79 percent of Airbnb's revenue in Seattle comes from entire home listings and the revenue generated by hosts with multiple entire -home listings increased by 183 percent between 2015 and 2016.1° Commercial enterprises utilizing online rental platforms to market multiple units in multiple locations further exacerbate the housing crisis facing Seattle. Without regulation, this practice could continue to rapidly expand. As a 3 79 G Any strategy the City can pursue to put more units into the long term market is worth examination. recent Harvard Law and Policy Review article explains, "So long as a property owner or leaseholder can rent out a room on Airbnb for cheaper than the price of a hotel room, while earning a substantial premium over the residential market or rent -controlled rent, there is an overpowering incentive to list each unit in a building on Airbnb... In tight housing markets with near -zero vacancy rates, a sudden reduction in supply naturally increases rents, particularly because neither the market nor the public sector can swiftly add to the housing stock." 11 The extent of Seattle's housing crisis is well known. Lower income renters are being pushed further from the center city as prices rise; home buyers face an extreme lack of options and strong competition for every purchase offer.. In 2015, Mayor Murray's Housing Affordability and Livability Agenda (HALA) taskforce put forward recommendations to achieve his goal of 50,000 new units of housing over the next 10 years, with 20,000 of these units designated as affordable. Short term rentals are not the leading cause of the severe shortage of housing (at all levels of affordability), but they have exacerbated an existing crisis. Any strategy the City can pursue to put more units into the long term market is worth examination. One of the recommendations from the HALA taskforce focused on short term rentals. Specifically, the taskforce recommended that the City pursue collecting taxes on this activity and dedicating those tax dollars to affordable housing. Currently, the City lacks the taxing authority to implement this recommendation. The sales tax is collected by the State and the hotel -motel tax in Washington is revenue carved out from the State's portion of the sales tax and remitted to local jurisdictions; state law dictates how this revenue can be spent. Facing this lack of options for new taxing authority, we have focused on regulatory actions that would align with the HALA goal of putting more units into the long term market. "The only unit I have rented through a short term rental service, Airbnb, has been my primary residence, a single family home located in an SF 5000 zone. I utilize the service for times when I will be on vacation, and my rental days have never exceeded thirty days per year." - G., landlord and AirBnB host 4 80 While secondary to the housing concern, short term rentals also pose challenges to a fair economic playing field in the vacation market as it is unclear how many operators apply for the necessary business license and pay all applicable taxes. Further, many neighbors of units that have been converted to short term rentals raise legitimate questions about neighborhood livability. Regulatory Systems in Other Cities A review of the regulatory approach taken by other jurisdictions reveals a wide range of regulatory responses. On one end of the spectrum, some jurisdictions have focused exclusively on collecting the appropriate taxes that apply to short term rental transactions. On the other end, cities ranging from New York City to Santa Monica have enforced much stricter regulations; in New York City, apartments cannot be rented out for less than 30 days. Per a new law in Santa Monica, short term rental operators will have to live on the property during any short term rental stay. Other cities have attempted to find a middle ground. Philadelphia allows for short term rentals up to 90 cumulative days a year without a permit, requires a permit and owner occupancy of the unit for rentals from 90-180 cumulative days a year, and prohibits short term rentals for more than 180 cumulative days a year. San Jose allows short term rentals of up to 180 days a year without a host present and year-round with a host present. Both cities were cited by Airbnb's Public Policy Team as positive examples for Seattle to explore. 5 81 t7 Taxation and Regulatory Context in Seattle Short term rental transactions currently operate outside of a solid regulatory framework in Seattle. Any person providing lodging services is required to collect and remit retail sales tax, meaning that anyone who offers their home or a portion of their home for short term rental should be paying this tax. Airbnb recently announced an agreement with the Washington State Department of Revenue to pay sales tax on behalf of its hosts, but it is unclear how many other owners pay the retail sales tax (9.6% in Seattle) on their units if they are not offering the units through Airbnb's website. "Last year a [neighboring townhouse] unit was sold.... One neighbor found that the owner is now renting out all three bedrooms in the house and apparently runs it as an AirBnB.... When I mentioned this to a couple of friends living in other parts of the city two of them said they were aware of similar situations in their areas." -E., concerned neighbor The Convention and Trade Center tax (15.6% when combined with sales tax) only applies to lodging businesses with 60 or more units. The sales tax is the only applicable tax to a short term rental transaction, because the basic hotel/motel tax in Washington State is collected as part of the state's portion of the sales tax and then remitted to local jurisdictions. The vast majority of short term rental operators do not have business licenses, which are currently required . While most if not all short term rental operators would fall under the Business and Occupation Tax minimum threshold of $100,000 in gross revenue, they are still required to get a license and report their revenue. With the exception of Bed and Breakfasts, commercial lodging (hotels and motels) are not allowed in residential zones. In single family zones, bed and breakfasts are allowed with conditions 6 82 outlined in Seattle Municipal Code 23.44.051. They must have a business license, adhere to dispersion requirements, establish quiet hours, must be operated by the principal owner and the owner must live on site, must notify neighbors, have limited signage, and meet parking requirements. In multifamily zones, bed and breakfasts have similar but slightly less restrictive requirements (SMC 23.45.545G). Regulatory Role for Government While some elements of the current short term rental market are novel, including the technology and the flexibility it offers, many aspects of this market are simply business operations. The City has always played a regulatory role when it comes to business and determining what level of operations is appropriate in residential areas. Any City government regulations should support one of these three goals: 0 • Balance the economic opportunity created by short term rentals with the need to maintain supply of long-term rental housing stock available at a range of prices. Ensure a level playing field for individuals and companies in the short term rental market. Protect the rights and safety of owners, guests and neighbors of these units. As explained in the Benefits and Challenges section, the first goal is the most pressing for Seattle City government. The primary elements of the regulatory scheme proposed below were built to address this issue. At the same time, the proposed regulations also either directly or indirectly support the second and third goals. Primary goal Providing economic opportunity while maintaining rental housing stock 0 7 83 Proposed Regulations for Seattle Short Term Rental Operators With any regulation, one must start by defining the activity being regulated. In this case, we are defining short term rentals as any stays of 29 nights or fewer in duration. Stays longer than 29 nights in duration would not be subject to this proposal or be part of any cumulative short term rental stay calculations. We believe any stays of 30 nights or more fill a need in our housing market for households in transition. One benefit of the technology that facilitates the marketing and booking of short term rentals is that it expanded this niche in the housing market. Requirements Primary Residence Short term rental operator resides on -site Business License Existing Requirement Short Term Rental Operator's License New Requirement Not Primary Residence Short term rental operator resides off -site Business License Existing Requirement Short Term Rental Operator's License New Requirement Limited to 1 dwelling unit in addition to the operator's primary residence located in the City of Seattle New Requirement 8 84 The basic proposed framework for short term rentals in Seattle would look like this: You will be : 1. limited to renting your primary residence (including an in-law unit or backyard cottage associated with your primary residence) and a maximum of one additional dwelling unit and 2. required to register with the City and get a new Short Term Rental Operator license as well as a business license, an existing requirement. You will also be subject to a few more standards, including providing: • proof that the unit is your primary residence, • the license number on any short term rental listing, • a local contact number for guests, and • a signed declaration that the unit is up to code This proposed limit on the number of units is designed to meet the goal of maintaining our long term housing supply. This requirement will impact those who use these platforms commercially, not homeowners trying to make a little extra income on the side. The proposal would allow an exception to the proposed limits for operators of existing short-term rentals located in the Downtown, South Lake Union, and Uptown Urban Centers (areas where many of the City's lodging uses are located) while not allowing this commercial activity to expand. We also propose leveling the regulatory playing field for traditional bed and breakfasts, which still operate under regulations from the pre -online short term rental era. By lessening some the regulatory burden they currently face, the City can bring traditional bed and breakfasts in line with the new regulations for short term rentals. G The affected operators will be those who use these platforms commercially, not homeowners trying to make a little extra income on the side. 9 85 A Summary of New Regulations Facing Operators Regulations / requirements Operator's primary Operator resides residence off -site Applicable policy goal Title 5 Business License (existing requirement) x x O0 Pay all applicable taxes (existing requirement) x x 0 0 Prohibit evidence of STR use from exterior for except for signs as permitted by the sign code x x• Limit # of units to the primary residence and one additional dwelling unit x0 Provide proof that the dwelling unit offered for short term rental is their primary residence x NA o Provide a local contact to all guests x x • the Require operators the declareguirthat the unit meets the requirements of the Housing and Building Maintenance Code x x • Require posting of basic safety information for guests within rental units x x0 10 86 Proposed Regulations for Seattle Short Term Rental Platforms After surveying practices in other jurisdictions, it became clear that receiving data from the online platform companies is vital to an effective enforcement structure. In order to facilitate the enforcement, the City will need to collect basic information from the Short Term Rental Platforms like VRBO or Airbnb. To do so, these companies will need to register for a new regulatory license with the City. "I am a residential cleaner and have cleaned for several Airbnb renters and have thought for a very long time that this was severely adding to the housing problem in our city. I find it unfair how people could sit on empty apartments and rent them out for income while my friends, who are willing to pay a monthly rent, can't find an affordable apartment in the city." -S., residential cleaner The only requirements for the license will be a) to provide information about Seattle's regulations to operators using the platform b) to share basic data with the City on a quarterly basis, including the total number of short term rentals listed on the platform and the total number of nights each listing was rented through the short term rental platform and c) provide booking services only with operators who have been issued a short-term rental operator's license. 11 87 vF WEDGWOOD o s D N m NORTHEAST VIEW RIDGE c NE 751h S SEATTLE NE 75th St 3-' NE 7Oth St t P4ra"rkOEro I' z St RAVENNA 11E 65th St NE 55th St cry V:lage ai E .5th St nive15ity o1 lashinglon , a r. 526 p JN7LAKE y; r §tt7n Arkateturn N HAWTHORNE o MI LS NE 6oth St WINDERMERE s IL ay NE 2-Q', ,s m Qi 'Meet a', a Ni; 'iCth st LAURELHURST HARRISON/ DENNY-BLAINE p' MADRONA DARK E Cheriy St et Way LESCHI CJ idr'roon i9a:;s ScV Co:asY tk S Genesee St % 7 �MBMCITY N BEACON HILL NEW HOLLY SEWARO PARK Q RAIN1ER VALLEY a Concluding Remarks and Comments on Equity Inevitably, no citywide policy can best meet the individual needs of every short term rental operator. The proposed regulations detailed above attempt to strike a balance that recognizes both the benefits and challenges offered by short term rentals. They also attempt to focus on this issue through an equity -based lens: while there are a variety of stakeholders and interests in this area, those looking for an affordable home in this city are more in need of supportive local government intervention than those offering their second (or third or fourth) homes to out-of-town visitors. After these regulations are translated into legislation, they will . be vetted through the full public process of the City Council, where input is eagerly accepted and further revisions robustly debated. Endnotes ' http://techcrunch.com/2009/03/04/y-combinators-airbed-and- breakfast-casts-a-wider-net-for-housing-rentals-as-airbnb/ 2http://www.wired.com/2015/12/airbnb-confirms-1-5-billion-funding- round-now-valued-at-25-5-billion/ 3https://www.airbnb.com/about/about-us 4https://www.homeaway.com/info/media-center/presskit Shttp://www.nytimes.com/2015/ 11/05/business/dealbook/expedia-to- acquire-homeaway-for-3-9-billion.html?_r=0 6https://www.homeaway.com/info/about-us 7See https://www.airdna.co/sample/us/washington/seattle or http:// insideairbnb.com/get-the-data.html Shttp://blog.airbnb.com/economicimpactsinseattle/ Shttp://insideairbnb.com/seattle/ 10 https://www.ahla.com/sites/default/files/CBRE_AirbnbStudy_2017. pdf " http://harvardlpr.com/wp-content/uploads/2016/02/ 10.1_10_Lee.pdf Pat Perry Additional Public Comments about Short Term Rentals From: Pam Carter <pmcarter@jps.net> Sent: Monday, April 9, 2018 12:32 AM Subject: April 9 COW Agenda Item 5 - Short Term Rental regulations This topic is a little more challenging. It would be foolish to think outlawing short term rentals would mean they would cease to exist in Tukwila. However, some reasonable regulations seem appropriate. I am less concerned about a homeowner who rents out a single bedroom in her house as the additional income could enable that homeowner to remain in her home. I do have a problem with the commercial operator who has a number of multi -family properties that are used solely for short term rentals. Seattle's proposed regulations on packet pages 80 to 82 seem reasonable to me. (I do not support Seattle's regulations as adopted.) Obtaining a business license is important. I'm unsure about requiring a Rental Housing license and inspection for a single bedroom. That may be a bit of overkill but reasonable when renting out an entire dwelling unit (house, ADU, condo, or apartment). Frankly, the argument about strangers in the neighborhood is not something I can accept. To me it seems awfully close to the statement about changing the complexion of our neighborhoods. The City doesn't prohibit the long-term rental of homes in our single-family neighborhoods, even though this changes the "complexion" of the neighborhood. If we do allow short-term rentals in single-family zones, the B and B regulations should be checked to make sure they do not conflict. We may not have any B and Bs right now, but that doesn't mean we won't in the future. If there are several in Burien, why not Tukwila? Pam Carter 7 89 r • o Community Development & Neighborhoods Minutes March 13, 2018 • Whereas, the City wishes to provide more affordable housing for its residents; and • Whereas, the City wishes to minimize impact on surrounding single family homes by limiting ADUs and DADUs to one per lot and requiring documented homeowner occupancy of at least one of the units 100% of the time; and Councilmember Hougardy noted that she has been researching the impact of ADUs on affordable housing and there are differences of opinion. She suggested it would be helpful to contact an organization like A Regional Coalition for Housing (ARCH) to see if their policy efforts toward increasing ADUs are quantifiably helpful with increasing affordable housing stock. Staff offered that providing smaller units can naturally alleviate some housing pressure. All three Councilmembers expressed concern with getting the parking requirement right. Staff suggested that one solution could be to link parking requirements to number of bedrooms rather than square footage, as that may more accurately reflect occupancy. Councilmember McLeod stated that would make sense for Tukwila. Councilmember Robertson requested the addition of a specific size limit to the waiver request for maximum permitted area for all ADUs. Staff noted that with regard to waivers it is important to incentivize compliance with regulations, or people could continue to provide illegal ADUs and life safety concerns of the City will continue to go unaddressed. The Committee requested the following for the Committee of the Whole discussion: • Amend to link parking requirements to number of bedrooms rather than square footage • Add pages illustrating lot sizes with varying examples of ADUs • Remove the parking waiver option • Flag the maximum square footage for a discussion item • Include in the COW packet the table showing other cities' regulations NO RECOMMENDATION. FORWARD TO APRIL 9, 2018 COMMITTEE OF THE WHOLE. D. Short -Term Rental Regulations Staff is seeking Committee direction on whether to prohibit or regulate short-term rentals for. ADUs and single-family dwellings. The code currently prohibits short-term (less than 30 days) rentals in multi -family dwellings but is silent on single-family and mobile -home dwellings. Dormitories, boarding houses, and bed and breakfast facilities are also unrestricted for short and long-term rentals. Due to the growth of such companies as Airbnb and Vacation Rental by Owner, many cities are working to implement regulations in this area, with Seattle and Kirkland taking action at the end of 2017. Short-term rentals are already occurring, even in multi -family dwellings, with a December 28, 2017 online search revealing around 35 listings for Tukwila. If the City Council were to allow short-term rentals, property owners would be licensed through the Rental Housing Program which would provide a modest revenue increase, although there would be additional work associated with enforcement. Councilmember Robertson spoke about a short-term rental on his block that was advertised on Airbnb and made his neighbors very unhappy due to bringing more strangers and vehicles around. Councilmember McLeod spoke in 91 Community Development & Neighborhoods Minutes March 13, 2018 favor of allowing short-term rentals with appropriate regulations. Councilmembers Hougardy and Robertson spoke in favor of prohibition due to neighborhood impacts and the loss of ADUs for longer term housing relief. The Committee requested that this policy discussion be brought to the full Council prior to staff drafting an ordinance for the Planning Commission. They also requested information on other short-term rental regulations in South King County, if any exist. TO APRIL 9, 2018 COMMITTEE OF THE WHOLE. II. MISCELLANEOUS Staff asked if the Committee had any questions on the South King Housing and Homelessness Partnership's 2017 Annual Report. Councilmember Hougardy noted that the 3-year program is coming to an end and asked if there are next steps. Human Services staff noted that the program is in flux due to a staffing change. Councilmember Hougardy stated that the SKHHP seems to have focused on homelessness and shelters, but the larger issue of housing diversity and affordability should also have a regional approach, such as ARCH in East King County. Staff mentioned that the Mayor meets with other South King County Mayors to talk about regional coordination around homelessness and poverty, and that collaboration is key for suburban cities who have to compete for resources. The area's Human Services providers also share a collaborative approach regarding strategies and funding. Adjourned 7:34 p.m. ` w 4 Committee Chair Approval Minutes by LH 92 TUKWILA MUNICIPAL CODE CHAPTER 5.06 RESIDENTIAL RENTAL BUSINESS LICENSE AND INSPECTION PROGRAM Sections: 5.06.010 5.06.020 5.06.030 5.06.040 5.06.050 5.06.060 5.06.070 5.06.080 5.06.090 5.06.100 5.06.110 5.06.120 5.06.130 5.06.140 5.06.150 5.06.160 5.06.170 5.06.180 5.06.190 5.06.200 5.06.210 5.06.220 5.06.230 5.06.240 Purpose Definitions Scope Residential Rental Business License Requirement Inspection Required Inspection Consent Rental Inspection Deficiency Point System Inspection Certificate Deficiencies Violations Re -inspections Notice of Non -Issuance of Certificate of Compliance Contents of Certificate of Compliance Certificate of Compliance Validity and Renewal Notice Authority Administrative Regulations Complaint -Based Inspections Voluntary Inspection Requests Penalties Appeal Annual Review and Report Immediate Health and Safety Threats No Warranty by City 5.06.010 Purpose The City Council finds that the establishment of a Residential Rental Business License and Inspection Program for rental units is necessary to protect the public health, safety and welfare by ensuring the proper maintenance of such housing, by identifying and requiring correction of substandard housing conditions, and by preventing conditions of deterioration and blight that could adversely impact the quality of life in the City of Tukwila. (Ord. 2281 §1 (part), 2010) 5.06.020 Definitions Unless specifically defined below, words or phrases used in this chapter shall be interpreted using the meaning they have in common usage and to give this chapter its most reasonable applicaf Accessory dwelling unit' or "ADU' means a unit that mee s the requirements of Table 18-6, Note 17, of TMC Title 18. 2. "Applicable laws" include, but are not limited to, the City's housing code, the City zoning ordinance and other City ordinances, and other laws or regulations relating to the health and safety of City residents or the general public. 3. "Certificate of Compliance" means the certificate issued by the City evidencing compliance with the requirements of this chapter. A Certificate of Compliance is required before a unit can be rented. 4. "Code official" means the Department of Community Development Director or his/her designee. 5. "City" means the City of Tukwila, Washington. 6. "Deficiency" means any failure by a rental unit to comply with applicable laws. 7. "Department" means the City of Tukwila Department of Community Development. 8. "Inspection Checklist" means the document submitted to the City as the result of an inspection conducted by an inspector which shows the true condition of the unit. An Inspection Checklist must be signed and dated by the inspector. 9. `Inspector" means: a. A City building code inspector; b. A City code enforcement officer; c. A private inspector, approved by the City upon evidence of at least one of the following credentials: A.A.C.E. Property Maintenance and Housing Inspector certification, I.C.C. Property Maintenance and Housing Inspector certification, or I.C.C. Residential Building Code Inspector; d. A Washington State licensed architect; or e. A Washington State licensed home inspector. 10. "Non -City inspector" means any inspector meeting the criteria in Section 5.06.020 who is not a City code official. 11. "Occupant' means an individual, partnership, corporation or association, or agent of any of them lawfully residing in a unit. 12. "Owne►" means the owner of record as shown on the last King County tax assessment roll or such owner's authorized agent. 13. "Rental inspection deficiency point system" means the point system used by inspectors to evaluate whether a rental unit is in compliance with the requirements of this chapter. 14. "Rental unit" means a unit occupied or leased by a tenant. 15. "Single-family residence" means a building, modular home, or new manufactured home designed to contain no more than one dwelling unit, plus one accessory dwelling unit. 16. "Tenant" means any adult person granted temporary use of a rental unit pursuant to a lease or rental agreement with the owner of the rental unit. Page 5-8 Produced by the City of Tukwila, City Clerk's Office TITLE 5 — BUSINESS LICENSES AND REGULATIONS 17. "Unit" means any structure or part of a structure, which is used as a home, residence or sleeping place by one or more persons, including but not limited to, single-family residences, duplexes, tri-plexes, four-plexes, multi -family dwellings, apartment buildings, condominiums, mobile homes and similar living accommodations. 18. "Unit unavailable for rent" means a unit whose owner has filed with the code official a statement signed under penalty of perjury that such unit is not offered or available for rent as a rental unit and that prior to offering or making the unit available as a rental unit, the owner will apply for a Residential Rental Business License and comply with any applicable administrative regulations adopted pursuant to this chapter. (Ord. 2519 §1, 2016; Ord. 2459 §1, 2014; Ord. 2281 §1 (part), 2010) 5.06.030 Scope The provisions of this chapter shall apply to all rental units, with the �a eption of: <1_Sawner-occupied rental units; 2. Units unavailable for rent; 3. Housing accommodations in hotels, motels, inns or tourist homes; 4. Housing accommodations in retirement or nursing homes; 5. Housing accommodations in any hospital, State - licensed community care facility, convent, monastery or other facility occupied exclusively by members of a religious order or an extended medical care facility; 6. Housing accommodations that a government unit, agency or authority owns, operates or manages, or which are specifically exempted from municipal regulation by State or federal law or administrative regulation. This exception shall not apply once the governmental ownership, operation or management regulation is discontinued. (Ord. 2281 §1 (part), 2010) 5.06.040 Residential Rental Business License Requirement A. Every rental unit owner shall obtain an annual residential rental business license, pursuant to Title 5 of the Tukwila Municipal Code, prior to operating, leasing or causing to be leased a rental unit. Rental unit owners must file a written application annually with the Department for each rental location to be leased. To be considered for approval, residential rental business license applications must be complete and include: 1. Completed and signed Residential Rental Business License Application provided by the City. 2. Appropriate application fee as set forth in the fee schedule adopted by resolution of the City Council. Late fees will be due for applications filed March 1st or later. 3. For multi -family buildings with 2 or more units, documentation of an ongoing integrated pest management (IPM) program. This could be provided by a property manager trained in IPM or a contract with a pest control company. B. Failure to obtain a residential rental business license will result in the inability to rent the unit. (Ord. 2519 §2, 2016; Ord. 2281 §1 (part), 2010) 5.06.050 Inspection Required The property owner is responsible for obtaining an inspection of each rental unit and submitting the Inspection Checklist to the code official no later than September 30 of the year the Certificate of Compliance expires. When a unit changes from owner occupancy to a rental, the inspection must occur before the unit is occupied by the tenant. An inspection is not required the year a Certificate of Occupancy is issued for a newly -constructed building, and thereafter the building will be inspected according to the quadrant in which it is located. Owners of complexes with 5 or more units are required to utilize a non -City inspector who meets the qualifications defined herein and who is preapproved by the City. Owners of rental properties with fewer than 5 units may utilize a City inspector or a non -City inspector, as defined herein. The City shall provide the Inspection Checklist to the owner with the application form. The code official shall issue a Certificate of Compliance for rental units that comply with applicable laws based on a submitted Inspection Checklist. If using a non -City inspector, the owner shall be responsible for making the inspection arrangements with the non -City inspector. (Ord. 2519 §3, 2016; Ord. 2459 §2, 2014; Ord. 2281 §1 (part), 2010) 5.06.060 Inspection Consent Owners shall make every effort to make units available for inspection pursuant to this chapter. If the owner fails to arrange for a non -City inspector and/or the owner or occupants do not consent to City entry for inspection, the code official may not force or otherwise attempt to gain entry except in accordance with a court warrant authorizing entry for the purpose of inspection. (Ord. 2281 §1 (part), 2010) 5.06.070 Rental Inspection Deficiency Point System A. The code official shall prepare and shall keep on file for public inspection the rental inspection deficiency point system used in the point calculation procedure set forth herein. The code official shall assign points according to the severity of each code violation on a scale of 1 to 25. Except when otherwise provided by State law, conditions in the design or structure of a building such as, but not limited to, the size and dimension of rooms and windows and the electrical and plumbing systems that were legal under existing codes when built, shall not be violations as long as they are maintained in good repair. A violation noted during the inspection shall receive the assigned point value. Produced by the City of Tukwila, City Clerk's Office Page 5-9 TUKWILA MUNICIPAL CODE B. A rental unit shall be considered unfit for occupancy if it fails an inspection by 25 points or more. (Ord. 2281 §1 (part), 2010) 5.06.080 Inspection Checklist As a condition of the issuance of a residential rental business license, the owner shah --provide a completed —hnspeetierrC—heckffstsigned by the inspector showing the current condition of the rental unit. The code official shall issue a Certificate of Compliance upon receipt of the inspection results indicating compliance with the applicable laws pursuant to this chapter. (Ord. 2459 §3, 2014; Ord. 2281 §1 (part), 2010) 5.06.090 Deficiencies Items to be inspected are weighted according to a point system established by the City. Accrual of 25 points or more for deficiencies constitutes a failure of the inspection and requires correction. The inspector shall provide the owner and the City written notice of each deficiency disclosed by inspection. A Certificate of Compliance shall not be issued until the Inspection Checklist indicates a score of less than 25 points. Repairs required to bring the unit into compliance are the responsibility of the owner. Rental units shall be subject to re -inspections pursuant to TMC Section 5.06.110. (Ord. 2459 §4, 2014; Ord. 2281 §1 (part), 2010) 5.06.100 Violations If an inspection of a rental unit conducted pursuant to this chapter reveals deficiencies of 25 points or more on the Inspection Checklist, the violation must be cured within 30 days. If upon re -inspection, the unit reveals deficiencies of 25 points or more, the City's code official may seek any remedies permitted by law including, but not limited to, denial or revocation of a residential rental business license for that unit pursuant to Title 5 of the Tukwila Municipal Code, and abatement proceedings pursuant to Chapter 8.45 of the Tukwila Municipal Code. The City may seek legal or equitable relief to enjoin any act or practice that constitutes or will constitute a violation of any regulation under this chapter. (Ord. 2459 §5, 2014; Ord. 2281 §1 (part), 2010) 5.06.110 Re -inspections A rental unit that exhibits deficiencies of 25 points or more on the Inspection Checklist shall be subject to a re -inspection and re -inspection fee as set forth in the City's fee schedule adopted pursuant to this chapter. (Ord. 2459 §6, 2014; Ord. 2281 §1 (part), 2010) 5.06.120 Notice of Non -Issuance of Certificate of Compliance If, upon re -inspection, the inspector determines a rental unit is unfit for occupancy by failing an inspection by 25 points or more, the City shall provide the owner with written notice of non - issuance of Certificate of Compliance. Such notice shall specify the date of the non -issuance determination, the rental unit address, the name of the owner, the name of the inspector and the specific reasons for the non -issuance determination. Failure to obtain a Certificate of Compliance will result in the non - issuance or revocation of the rental business license for that unit. The unit shall be posted Unfit for Occupancy. Tenants, if any, shall be required to vacate. Relocation Assistance pursuant to TMC 8.46 may apply. (Ord. 2281 §1 (part), 2010) 5.06.130 Contents of Certificate of Compliance Certificate of Compliance shall specify the date of issuance, the rental unit address, the name of the owner to whom the certificate is issued, the expiration date of the Certificate, and an indication the rental unit complies with applicable laws as far as could be determined by inspection. (Ord. 2459 §7, 2014; Ord. 2281 §1 (part), 2010) 5.06.140 Certificate of Compliance Validity and Renewal Certificates of Compliance expire on December 31, four years from the date of issuance by the City. Failure to renew the Certificate of Compliance every four years shall result in the non -issuance or revocation of the rental business license for that unit. Rental properties that are registered and continue to meet all the requirements of the City's Crime -Free Rental Housing Program, or other City -administered program to certify rental properties as working proactively at crime prevention, may extend their required rental inspection schedule to once every 8 years. If participation in such program is terminated due to failure to meet program requirements or for any other reason, the rental inspection shall be due at the end of the calendar year of the year of termination or 4 years from the last inspection, whichever is later. Furthermore, if a property registered in the Crime -Free Rental Housing Program, or any other City - administered program to certify rental properties as working proactively at crime prevention, is the subject of 3 or more code violation complaints verified by the City in any 6-month period for violations affecting the habitability of a residential unit, the property will revert to a 4-year inspection cycle. (Ord. 2519 §4, 2016; Ord. 2459 §8, 2014; Ord. 2281 §1 (part), 2010) 5.06.150 Notice All notices issued pursuant to this chapter shall provide the address and phone number where additional information concerning the inspection may be obtained. Notice to the owner and occupants shall be mailed by first-class mail to the owner's last known address as it appears in the records of the county assessor or other address provided by the owner. (Ord. 2459 §9, 2014; Ord. 2281 §1 (part), 2010) 5.06.160 Authority The code official shall be responsible for enforcement and administration of this ordinance. (Ord. 2281 §1 (part), 2010) Page 5-10 Produced by the City of Tukwila, City Clerk's Office TITLE 5 — BUSINESS LICENSES AND REGULATIONS 5.06.170 Administrative Regulations The code official is authorized and directed to promulgate administrative regulations pertaining to the implementation of this chapter. (Ord. 2281 §1 (part), 2010) 5.06.180 Complaint -Based Inspections Nothing contained herein shall prevent or restrict the authority of the City's code official to inspect any unit or premises thereof in response to a complaint alleging code violations or other violations of law at such unit and to pursue all code enforcement remedies available under this code or other laws following such a complaint -based inspection of a unit. (Ord. 2281 §1(part), 2010) 5.06.190 Voluntary Inspection Requests Nothing in this chapter shall be construed to prohibit an owner from voluntarily requesting an inspection to determine whether a rental unit complies with applicable laws, even though such inspection may not be required pursuant to this chapter. Such voluntary inspection requests shall be subject to all of the provisions of this chapter including, but not limited to, the provisions governing applications and fees. (Ord. 2281 §1 (part), 2010) 5.06.200 Penalties A. Violations of the provisions of this chapter shall be subject to enforcement and penalties as prescribed in TMC Chapter 8.45 and the issuance of a Notice of Violation in accordance with TMC Section 8.45.070. B. Any violation of this chapter that constitutes an immediate health or safety threat shall constitute a public nuisance. C. In addition to penalties, the City shall not issue or shall revoke the unit's business license and require that the unit be vacated until the unit is brought into compliance. (Ord. 2549 §3, 2017; Ord. 2281 §1 (part), 2010) 5.06.210 Appeal A. The owner may appeal the non -issuance of a Certificate of Compliance by filing a written notice of appeal with the City Clerk within 10 calendar days following receipt of the notice of non -issuance. The notice of appeal must state the grounds for appeal, including a detailed explanation of why the decision was incorrect. The notice of appeal must be accompanied by an Appeal Fee in accordance with the fee schedule adopted by resolution of the City Council. A timely notice of appeal shall stay the effect of the notice of non - issuance until the City's Hearing Examiner or other hearing body issues a written decision on the appeal. B. Upon timely filing of a notice of appeal, the Finance Director shall schedule a hearing on the appeal before the City's Hearing Examiner or other hearing body. The hearing shall be conducted no later than 30 business days from the date of the notice of appeal, unless an extension is agreed to by the appellant or otherwise ordered by the Hearing Examiner or other hearing body for good cause shown. Notice of the hearing will be mailed to the owner. C. The hearing shall be de novo. The decision of the City's Hearing Examiner or other hearing body shall be based upon a preponderance of the evidence. The burden of proof shall be on the appellant. The Hearing Examiner or other hearing body may affirm, reverse or modify the Finance Director's decision. D. Within 20 business days, excluding holidays recognized by the City of Tukwila, from the date of the hearing on an appeal under this section, the Hearing Examiner or other hearing body shall issue a written decision, which shall set forth the reasons therefor. (Ord. 2496 §7, 2016; Ord. 2281 §1(part), 2010) 5.06.220 Annual Review and Report The code official shall conduct an annual review of the Residential Rental Business License and Inspection Program and shall submit an annual report of the program's effectiveness to the City Council. (Ord. 2281 §1 (part), 2010) 5.06.230 Immediate Health and Safety Threats Nothing in this ordinance shall limit the City's ability to inspect properties and issue citations for property -related conditions that may constitute an immediate health or safety threat. (Ord. 2281 §1 (part), 2010) 5.06.240 No Warranty by City By enacting and undertaking to enforce this program, the City, City Council, its agents and employees do not warrant or guarantee the safety, fitness or suitability of any dwelling in the City or any unit inspected under this program. Owners and occupants should take whatever steps they deem appropriate to protect their interests, health, safety and welfare. (Ord. 2281 §1 (part), 2010) Produced by the City of Tukwila, City Clerk's Office Page 5-11 5.06.050 Certificate of Compliance and Inspection Required A. As a condition of the issuance of a residential rental business license, the property owner is responsible for obtaining and maintaining a valid Certificate of Compliance for each rental unit. 1. To obtain a Certificate of Compliance a passing rental inspection is required. a. The code official shall issue a Certificate of Compliance upon receipt of the inspection results indicating compliance with the applicable laws pursuant to this chapter. b. An inspection is not required the year a Certificate of Occupancy is issued for a newly -constructed building. 2. The Certificate of Compliance expires December 31, the year of which is based on the geographical quadrant in which the property is located. a. An expired Certificate of Compliance is invalid, and a new Certificate of Compliance must be obtained. b. Renewal of the Certificate of Compliance is required every four years 1. Exception: A Certificate of Compliance that is obtained late, or not in sync with geographical quadrant designated timelines may require renewal earlier based on the expiration date of the Certificate of Compliance. B. The property owner is responsible for obtaining an inspection of each rental unit and submitting the inspection checklist to the code official no later than September 30 of the year the Certificate of Compliance expires. Owners of complexes with 5 or more units are required to utilize a non -City inspector who meets the qualifications defined herein and who is preapproved by the City. Owners of rental properties with fewer than 5 units may utilize a City inspector or a non -City inspector, as defined herein. The City shall provide the Inspection Checklist to the owner with the application form. If using a non -City inspector, the owner shall be responsible for making the inspection arrangements with the non -City inspector. C. Failure to obtain a Certificate of Compliance will result in the denial or revocation of a residential rental business license and will result in the inability to rent the unit. 5.06.040 Residential Rental Business License Requirement A. Every rental unit owner shall obtain an annual residential rental business license, pursuant to Title 5 of the Tukwila Municipal Code, prior to operating, leasing or causing to be leased a rental unit. Rental unit owners must file a written application annually with the Department for each rental location to be leased. To be considered for approval, rental property owners must: 1. Submit a completed and signed Residential Rental Business License Application provided by the City. 2. Include appropriate fees as set forth in the fee schedule adopted by resolution of the City Council. In addition to the application fee, fees may include: a. Late fees: assessed for renewal applications filed March 1st or later. b. A Penalty fee: assessed for units that are leased and occupied before a license and inspection is obtained. 3. For multi -family buildings with 2 or more units, documentation of an ongoing integrated pest management (IPM) program. This could be provided by a property manager trained in IPM or a contract with a pest control company. 4. Comply with rental unit Certificate of Compliance and Inspection requirements. B. Failure to obtain a residential rental business license will result in the inability to rent the unit. 5.06.070 Rental Inspection Checklist/Deficiency Point System A. The code official shall prepare and shall keep on file for public inspection the rental inspection checklist/deficiency point system used in the point calculation procedure set forth herein. The code official shall assign points according to the severity of each code violation on a scale of 1 to 25. Except when otherwise provided by State law, conditions in the design or structure of a building such as, but not limited to, the size and dimension of rooms and windows and the electrical and plumbing systems that were legal under existing codes when built, shall not be violations as long as they are maintained in good repair. A violation noted during the inspection shall receive the assigned point value. 1. An inspection score of 24 points or less is considered a passing inspection. 2. An inspection score of 25 points or more is considered a failed inspection. B. The property owner shall provide a completed Inspection Checklist signed by the inspector showing the current condition of the rental unit. C. A rental unit shall be considered unfit for occupancy if it fails an inspection. (Ord. 2281 §1 (part), 2010) c.. COUNCIL AGENDA SYNOPSIS I nitiats Meeting Date Prepared by NQayor s review Council review 04/09/18 NG ITEM INFORMATION ITEM No. 5.B. STAFF SPONSOR: NORA GIERLOFF OR►G'NALAGENDrA DA'r'I_.: 04/09/18 .AcENDA LIEN( TI'►'L.E: Update to Short Term Rental Regulations 4/9/18 ❑Motion Nils Date ❑ Resolution A'1Ig Dale ❑ Ordinance A4tg Dale ❑ Bid Award A9tg Dale ❑ Public .Hearing A4tg Dale ❑ Other Al is Date CA.rECORY F2 Discussion Adtg Dale SPONSOR ❑Council ❑Mayor DCD ❑Finance ❑.Fire ❑7S ❑Pe R ❑Police ❑.PtV ❑Court ❑I-JR ►1 SPONSOR'S A review of Tukwila's short term (less than 30 day) rental housing regulations for SUMMARY accessory dwelling units, single family houses, multi -family units, and boarding houses. Council consensus is requested to choose to allow or prohibit the different types of short- term rentals, and send the issue to the Planning Commission for a public hearing and recommendation. R► vIF\Xtr.D BY ❑ C.O.W. Mtg. ❑ Trans &Infrastructure DATE: 3/13/18 0 CDN Comm ❑ Finance Comm. ❑ Public Safety Comm. ❑ Parks Comm. ❑ Planning Comm. COMMITTEE CI-IAIR: KRULLER ❑ Arts Comm. RECOMMENDATIONS: SPONSOR/ADMIN. COMMITTEE Department of Community Development No Recommendation, Forward to Full Council COST IMPACT / FUND SOURCE E\PI_.NDI'I uiu3 REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED $ $ Fund Source: Comments: MTG. DATE RECORD OF COUNCIL ACTION MTG. DATE ATTACHMENTS 4/9/18 Informational Memorandum dated 3/6/18 with attachments, updated 3/23/18 after CDN Minutes from the Community Development and Neighborhoods Committee of 3/13/18 c.. Allan Ekberg, INFORMATIONAL MEMORANDUM TO: Community Development and Neighborhoods Committee FROM: Jack Pace, DCD Director BY: Charlotte Archer, Asst. City Attorney; Nora Gierloff, Deputy DCD Director; Minnie Dhaliwal, Planning Supervisor CC: Mayor Ekberg DATE: March 23, 2018 SUBJECT: Short-term Rental Regulations (Updated after CDN Committee) ISSUE Should Tukwila update its short-term residential rental regulations to address ADUs and single family houses? BACKGROUND In conjunction with the City's discussions pertaining to detached accessory dwelling unit (ADU) regulations, which began in March 2017, the City Council requested a review of the City's regulation of short-term (defined as a period of less than thirty days) rentals within the City. This review was intended to focus on the use of single-family and multi -family residences, as well as both attached and detached ADUs, for the purpose of obtaining rental income, commonly via an online marketplace such as HomeAway, Vacation Rental By Owner ("VRBO") or AirBnB. Anecdotally, property owners in the City are using their residential structures for both short- and long-term rentals on a regular basis (see Attachment A). The intention for this project was to review and revise, where necessary, the standards for rentals.' A. Existing Regulations for Short and Long-term Rentals. Whether a particular residential building located within the City may be used as a short-term or long-term rental is determined by the regulations set out in Title 18 TMC Zoning Code. Currently, multi -family dwellings shall not be used for a rental tenancy of Tess than one month. See TMC 18.06.247. There is no prohibition on the use of a multi -family dwelling as a long-term rental. 1 Beyond the scope of this analysis are the following, which are subject to distinct regulations: Assisted Living Facilities (TMC 18.06.058); Continuing Care Retirement Communities (TMC 18.06.170); Convalescent/Nursing Homes (TMC 18.06.173); Correctional Institutions, including transitional housing (TMC 18.06.178); Extended -Stay Hotel or Motels (TMC 18.06.287); Hotels (TMC 18.06.440); Motels (TMC 18.06.585); Secure Community Transitional Facilities (TMC 18.06.706); Senior Citizen Housing (TMC 18.06.708); Shelters (TMC 18.06.743); commercial properties used for the purposes of short-term and extended -stay housing, such as motels, hotels, and extended stay motels. 63 INFORMATIONAL MEMO Page 2 There is no restriction on the use of a single-family dwelling as a short- or Tong -term rental. Similarly, there is no restriction on the use of mobile home dwellings in mobile home parks for short- or long-term rentals. Moreover, Tukwila's current standards for attached ADUs permit the rental of the ADU but require owner -occupancy of the either the primary residence or ADU. The draft ADU ordinance that allows detached ADUs has a placeholder ban on rentals of less than 30 days. That could be modified based on the Council's overall decision about short-term rentals. There are other categories of uses that may be used for short- and long-term rentals, including: • Dormitories defined as "a residential building or use which provides housing for students attending an affiliated school or housing for members of a religious order." • Boarding House defined as "a residential building which provides housing on a short-term commercial basis for tenants" is a conditional use in the MDR and HDR zones. • Bed and breakfast facilities defined as "an owner occupied dwelling unit that contains guest rooms where lodging is provided for compensation," are permitted in the LDR, MDR and. HDR zones as conditional uses (for up to twelve guests), and guests shall be limited to a 14-day maximum length of stay. Tukwila has never received an application for a bed and breakfast conditional use permit. Two other residential uses currently not identified in the TMC may also be affected by an amendment to the City's existing regulations for short- and long-term rentals. First, adult family homes (AFH)2 could arguably be considered residential properties used for rental purposes; however, state law prohibits the City from enacting regulations that put up a road -block to the placement of AFHs in all areas zoned for residential purposes. Second, the same analysis would likely apply to a residence used to house people with disabilities, including the recovery from a drug addiction.3 B. Existing Licensure Requirements for Rental Properties. Tukwila's Residential Rental Business License and Inspection Program, codified at Chapter 5.06 of the Tukwila Municipal Code (TMC), establishes an annual rental licensure requirement for all "units" intended for rent. Each dwelling unit must be inspected for life safety issues every four years and a Certificate of Compliance is issued by the City for those units that meet all requirements. The code is silent about whether it applies to short-term rentals. C. Regulation of Short -Term Rentals by Neighboring Jurisdictions. Staff analyzed the methods other cities in Washington utilize to regulate short-term rentals to develop a proposed model for Tukwila, see Attachment B. This issue is currently being debated in many jurisdictions in Washington in light of the dramatic recent growth of major companies in the short-term rental industry, as well as the housing crisis in the greater Seattle area. 2 Adult family homes are defined by state law as "a residential home in which a person or persons provide personal care, special care, room, and board to more than one but not more than six adults who are not related by blood or marriage to the person or persons providing the services." RCW 70.128.010. See RCW 36.70.990. 64 1`J QG Sr.\5eN t-�n`7 t r c" 17("e-^4t_Ga C.� INFORMATIONAL MEMO Page 3 On December 11, 2017, Seattle adopted new regulations to prevent property owners from operating short-term rentals as if they were hotels, as part of a larger effort to ensure an adequate supply of long-term rental stock for the City's permanent residents, see Attachment C. The new regulations limit hosts to two dwelling units each and requires a special license to operate said rentals. The City also requires short-term rental platforms, such as AirBnB, HomeAway and VRBO, to obtain a special "platform license" to facilitate bookings in Seattle. In advance of adopting these regulations, the City approved a new tax on short-term rentals, again designed to prevent property owners from operating short-term rentals as if they were hotels. Similarly, in October 2017, the City of Kirkland adopted Ordinance 0-4607, which regulates rentals lasting for less than thirty days. Properties must be owner -occupied at least 245 days per year and a "Short -Term Rental Business License" from the City is required. The use of an ADU as a short-term rental is allowed for up to 120 days per year, as long as the property owner (or authorized agent) occupy the primary residence for at least 245 days per year. A property manager must live within 15 miles of the residence when residence is used for short-term rental purposes. The City further dictates terms that must be included in the rental agreement, including a provision that "encourages renters to exercise best efforts to avoid conflicts with neighbors related to issues such as noise, littering, parking and trespass." The City also requires a business license for long-term rentals, including owner -occupants with a roommate. ANALYSIS Council is being asked to set a policy direction on short-term rentals. A. Advantages of Permitting Short -Term Rentals. Given the results of Staff's search (see Attachment A), there appears to be an existing marketplace for the short-term (defined as 29 days or less) rental of single- and multi -family dwellings in the City. This is occurring despite the codified prohibition on the use of multi -family dwellings for this purpose. From a policy perspective, short-term rentals can bring ous benefits to those who operate them, their visitors, and the surrounding neighborhood. rpon' ?rd?v!dcKzle Some homeowners use short-term rentals to help a#er-offset the cost of their ewe -home, eitherincludinq renting out a bacemert, c spare room; or the entire home when they are cut of town thc:rsrlves. The'. Kent, for example, adopted regulations to allow the rental of ADUs "Itlo make homeownership more affordable because it will be easier to buy both new and existing homes with the help of an accessory dwelling unit."4 SeaTac likewise currently permits the use of ADUs for rent to "increase opportunities for home ownership and allow older homeowners to remain in their homes and obtain extra income, companionship, and security."5 Some jurisdictions find that ADUs may increase the supply of affordable rental units and may provide a variety in affordable rental units. Additionally, short-term rentals may provide a flexible means for homeowners to earn mere money than b; renting cut their propertygreater return on investment for homeowners looking to rent, as short-term rental rates often outpace rates for rentals on a long-term basis. _For visitors, short- term rentals often offer .. more affcrd ab!e cptop, and short term rcrtalc may cost less than 4 Kent City Code § 18.08.350(3). 5 SeaTac Municipal Code § 15.465.100(A)(4). 65 INFORMATIONAL MEMO Page 4 traditional hotels or motels. which in turn provides a means to bring tourists and their sel•lective spending power to Tukwila. B. Disadvantages of Permitting Short -Term Rentals. TheSome jurisdictions have recently studied the rise in the use of rental properties as short-term rentals has also hadand the negative impacts insuch rentals have had to communities throughout Washington. ShortFor example. Seattle recently studied the impact short-term rentals sae o tif:cia??; :rf!ate renta! costchad on affordable housing within the City, and found that the -more commercial use of short-term rental platforms h-c take^ entire (by commercial operators, rather than traditional single-family homeowners) has resulted in the removal of houses, condos and apartments offfrom the long-term housing market. Some short term rentals See Attachment C. The significant impact of short-term rentals on affordable housing availability was also the subject of a Harvard Law and Policy Review article, which concluded So long as a property owner or leaseholder can rent out a room on Airbnb for cheaper than the price of a hotel room. while earning a substantial premium over the residential market or rent -controlled rent. there is an overpowering incentive to list each unit in a building on Airbnb... In tight housing markets with near -zero vacancyrates, a sudden reduction in supply naturally increases rents. particularly because neither the market nor the public sector can swiftly add to the housing stock.6 In addition. some jurisdictions have found that some short-term rentals can attract disruptive vistcrc, ivhc ere eccentia!!y vacationing withinvisitors to residential areas, and can which may have a negative impact on property values. A study commissioned by the hotel industry indicated some short-term rentals may have negative impacts on property ‘/-Macs. Semc stud c have i ^c'!cetec' some Acrt. term re^talc '.mpact the hotel/motel industry -and.' Short- term commercial rentals are likely subject to the largerCitv's business ccmm�.:r.ity, bylicensure and tax requirements, but do not pay thereby circumventing traditional lodging taxes. Shorn -here is also some evidence in the aforementioned studies that short-term rentals may also contribute to creating a transient community, and inoFeasecreate an increased parking demand in residential areas. Some of these negative effects may be mitigated by placing restrictions on commercial short-term rental operators, or by only allowing rentals of rooms within owner occupied dwellings as opposed to entire units. However, regulating the short or long-term rental of individual rooms within an owner -occupied dwelling would be a significant expansion of the Residential Rental Business License program. Additionally, without cooperation from the online rental platforms it is difficult to identify properties and enforce the current short-term rental regulations. We receive lodging tax as a lump sum and AirBnB only reports aggregate rental data, rather than by address. Currently, the City has no permitted Bed and Breakfast facilities. This appears to be a somewhat antiquated form of residential use, with the rise of AirBnB and other online alternatives. The City a Full article available at http://harvardlpr.com/wp-content/uploads/2016/02/10.1 10 Lee.pdf. ' Full article available at http://www.cbrehotels.com/EN/Research/Pages/An-Analysis-of-Airbnb-in-the-United- Statess.aspx. 66 INFORMATIONAL MEMO Page 5 is aware of a few Boarding Houses within the City and there are ongoing code enforcement complaints relating to un-permitted Boarding Houses in the LDR zoning district (where this use is prohibited). The existing definition of a Boarding House makes this regulation difficult to enforce, given its use of undefined terms like "short-term" and "commercial basis." Similarly, there is no cap on the number of tenants that may reside in one residential building, no requirement that the building is owner -occupied, and no other relevant regulations such as higher parking standards. C. Options. With this context in mind, the City could opt to prohibit short-term rental of all dwelling units within the City, including entire single-family residences, rooms within owner -occupied residences, multi -family residences, ADUs (attached and detached), mobile and manufactured homes, Bed and Breakfast facilities, and Boarding Houses. Alternatively, the City could permit the use of some or all types of dwelling units as short-term rentals, subject to restrictions such as: (1) limitations on the number of lease agreements per dwelling unit; (2) caps on the number of occupants per bedroom; (3) the length of time the dwelling unit may be occupied by a tenant within a calendar year; (4) require certain amount of parking stalls for the property, if used for rental purposes; and/or (5) owner -occupancy requirements. As discussed briefly above, there are additional restrictions from state law on regulations for adult family homes and inpatient substance abuse facilities. The City Attorney would craft language for these uses based on the overall direction from Council. FINANCIAL IMPACT Allowing short-term rentals and requiring them to be licensed would modestly increase the revenue to the Rental Housing Program. Enhanced enforcement of short-term rental restrictions would require additional resources. RECOMMENDATION The Council is being asked to review Tukwila's short-term residential rental regulations, chose to allow or prohibit the different types of short-term rentals, and send the issue to the Planning Commission for a public hearing and recommendation. ATTACHMENTS: A. Results of Staff Review of Rental Listings. B. Table of Neighboring Jurisdictions' Regulation of Short-term Rental Properties C. Regulating Short Term Rentals Seattle Policy Brief 67 INFORMATIONAL MEMO Page 6 ATTACHMENT A Staff Research Regarding Existing Short -Term Rental Stock Staff reviewed the inventory of short-term rental properties (as advertised on Craigslist, VRBO and AirBnB), in order to determine the scope of the existing use of these services. A review of AirBnB and VRBO, on December 28, 2017, found approximately 35 short-term rentals offered in Tukwila, including the following: Three bedroom home, for $149/night Private room in single family home, for $38/night Towne and Country Hotel, Furnished 3 bedroom suite for $250/night Two bedroom condo, for $135/night One bedroom condo, for $85/night Studio cabin (ADU), for $55/night Guesthouse (ADU), for $65/night Room in single family home with private bath, for $40/night Private room in single family house, for $56/night Private room in three -bedroom apartment, for $60/night Single family home, for $112/night Detached ADU (Cottage), for $80/night Private room in single family home, for $45/night Two bedroom apartment, $120/night 68 ffr INFORMATIONAL MEMO Page 7 ATTACHMENT B Neighboring Jurisdictions' Regulation of Short -Term Rentals Jurisdiction Single -Family Residences ADUs (Detached or Attached) Multi -Family Residences Licensure Requirements (if any) Relevant Code Citations Tacoma Permitted: (1) Permitted, up May rent 3-9 Must obtain a TMC 13.06.575 — may rent the to 4 people In quest rooms, Business Short Term entire dwelling all Residential, after License: must Rentals: TMC to one family or Commercial, receiving an obtain a 13.06.150.C.7 — a group of up to Mixed -Use, approved Transient Short Term 6 people in all and Downtown Conditional Accommodation Rental in ADUs: •Residential. Districts Use Permit License if TMC 6B.20 — Commercial, (CUP), in R- renting 3 or Annual Business Mixed -Use, and 3, R-4L, R-4, more rooms. License: TMC Downtown R-5, RCX, 6B.140 — Districts: (21 and NRX Transient may rent 1-2 Districts Accommodations quest rooms (these are within an owner- generally occupied residential dwelling in all districts that Residential allow duplex, Districts, triplex, and including single- multifamily family districts. dwellings). SeaTac No prohibition, Permitted, No prohibition, N/A SMC Ch. 15.465 no regulation owner- occupancy no regulation requirement and maximum occupancy restrictions (based on size) Renton No prohibition, Permitted, with RMC 4-2- no regulation conditional use 080(A)(7) permit and owner - occupancy. Kent °Dwelling unit' Permitted, No prohibition, Business KCC 15.02.130: defined to imply owner- License KCC Ch. 5.14 rental of entire occupancy no regulation Required unit can be on a requirement weekly, for six months monthly, or every calendar longer basis year. 69 INFORMATIONAL MEMO Page 8 Puyallup Bed and Permitted, PMC 20.20.015: Breakfast owner- PMC House occupancy 20.20.010(11) permitted, requirement subject to owner occupancy and occupant cap with conditional use permit) Sumner Presumably Permitted, No prohibition N/A SJC 18.04.0940., permitted (no owner- SMC 18.10.030 express occupancy prohibition, requirement although and maximum restriction that occupancy dwelling shall restrictions be used for "one (based on family") size) Bothell Bed and Permitted. BMC 12.06.110 Breakfast owner - facilities occupancy (for permitted in 6 months) most zones, required and capped at four cap on bedrooms and occupancy subject to parking restrictions and owner - occupancy Poulsbo Permitted Prohibited Prohibited None PMC 18.70.070 San Juan County Permitted, no more than 38 guests per bedroom; parking required . Permitted (attached only), max 3 guests per bedroom; parking required; owner must occupy ADU or primary residence Permitted in Commercial zone only "Vacation Rental Permit" required SJCC 18.40.270 8 San Juan County Council is currently considering legislation to reduce this to two guests per bedroom. 70 (T. INFORMATIONAL MEMO Page 9 Clyde Hill Permitted, with limits on occupancy, parking, and use (for lodging only, can't be used for events) Permitted, with limitations on occupancy, parking, and use (for lodging only, can't be used for events) Permitted, with limits on occupancy, parking, and use (for lodging only, can't be used for events) Business License Required Ch. 5.20 CHMC Ilwaco Conditional use in single-family, zones with limits on occupancy and parking. Permitted use in certain specified zones Permitted use in certain zones Business License Required Ch. 15.41 IMC Leavenworth Prohibits use of entire dwellings as vacation rentals; permits short-term rental of a portion of a home when the property owner lives on -site throughout the visitor's stay with appropriate permits, including a business license Permitted, subject to owner- occupancy requirement and permitting Prohibited Business License Required LMC 18.52.120 Westport Permitted, subject to occupancy cap, parking and other standards Permitted, but only 1 vacation rental unit per "property" Prohibited Business License Required Ch. 17.22 WMC 71 City of Tukwila Allan Ekberg, INFORMATIONAL MEMORANDUM TO: Community Development and Neighborhoods Committee FROM: Jack Pace, DCD Director BY: Charlotte Archer, Asst. City Attorney; Nora Gierloff, Deputy DCD Director; Minnie Dhaliwal, Planning Supervisor CC: Mayor Ekberg DATE: March 6, 2018 SUBJECT: Short-term Rental Regulations ISSUE Should Tukwila update its short-term residential rental regulations to address ADUs and single family houses? BACKGROUND In conjunction with the City's discussions pertaining to detached accessory dwelling unit (ADU) regulations, which began in March 2017, the City Council requested a review of the City's regulation of short-term (defined as a period of less than thirty days) rentals within the City. This review was intended to focus on the use of single-family and multi -family residences, as well as both attached and detached ADUs, for the purpose of obtaining rental income, commonly via an online marketplace such as HomeAway, Vacation Rental By Owner ("VRBO") or AirBnB. Anecdotally, property owners in the City are using their residential structures for both short- and Tong -term rentals on a regular basis (see Attachment A). The intention for this project was to review and revise, where necessary, the standards for rentals.' . A. Existing Regulations for Short and Long-term Rentals. Whether a particular residential building located within the City may be used as a short-term or long-term rental is determined by the regulations set out in Title 18 TMC Zoning Code. Currently, multi -family dwellings shall not be used for a rental tenancy of less than .one month. See TMC 18.06.247. There is no prohibition on the use of a multi -family dwelling as a long-term rental. ' Beyond the scope of this analysis are the following, which are subject to distinct regulations: Assisted Living Facilities (TMC 18.06.058); Continuing Care Retirement Communities (TMC 18.06.170); Convalescent/Nursing Homes (TMC 18.06.173); Correctional Institutions, including transitional housing (TMC 18.06.178); Extended -Stay Hotel or Motels (TMC 18.06.287); Hotels (TMC 18.06.440); Motels (TMC 18.06.585); Secure Community Transitional Facilities (TMC 18.06.706); Senior Citizen Housing (TMC 18.06.708); Shelters (TMC 18.06.743); commercial properties used for the purposes of short-term and extended -stay housing, such as motels, hotels, and extended stay motels. 63 INFORMATIONAL MEMO Page 2 There is no restriction on the use of a single-family dwelling as a short- or Tong -term rental. Similarly, there is no restriction on the use of mobile home dwellings in mobile home parks for short- or long-term rentals. Moreover, Tukwila's current standards for attached ADUs permit the rental of the ADU but require owner -occupancy of the either the primary residence or ADU. The draft ADU ordinance that allows detached ADUs has a placeholder ban on rentals of less than 30 days. That could be modified based on the Council's overall decision about short-term rentals. There are other categories of uses that may be used for short- and long-term rentals, including: • Dormitories defined as "a residential building or use which provides housing for students attending an affiliated school or housing for members of a religious order." • Boarding House defined as "a residential building which provides housing on a short-term commercial basis for tenants" is a conditional use in the MDR and HDR zones. • Bed and breakfast facilities defined as "an owner occupied dwelling unit that contains guest rooms where lodging is provided for compensation," are permitted in the LDR, MDR and HDR zones as conditional uses (for up to twelve guests), and guests shall be limited to a 14-day maximum length of stay. Tukwila has never received an application for a bed and breakfast conditional use permit. Two other residential uses currently not identified in the TMC may also be affected by an amendment to the City's existing regulations for short- and long-term rentals. First, adult family homes (AFH)2 could arguably be considered residential properties used for rental purposes; however, state law prohibits the City from enacting regulations that put up a road -block to the placement of AFHs in all areas zoned for residential purposes. Second, the same analysis would likely apply to a residence used to house people with disabilities, including the recovery from a drug addiction.3 B. Existina Licensure Reauirements for Rental Properties. Tukwila's Residential Rental Business License and Inspection Program, codified at Chapter 5.06 of the Tukwila Municipal Code (TMC), establishes an annual rental licensure requirement for all "units" intended for rent. Each dwelling unit must be inspected for life safety issues every four years and a Certificate of Compliance is issued by the City for those units that meet all requirements. The code is silent about whether it applies to short-term rentals. C. Regulation of Short -Term Rentals by Neighboring Jurisdictions. Staff analyzed the methods other cities in Washington utilize to regulate short-term rentals to develop a proposed model for Tukwila, see Attachment B. This issue is currently being debated in many jurisdictions in Washington in light of the dramatic recent growth of major companies in the short-term rental industry, as well as the housing crisis in the greater Seattle area. 2 Adult family homes are defined by state law as "a residential home in which a person or persons provide personal care, special care, room, and board to more than one but not more than six adults who are not related by blood or marriage to the person or persons providing the services." RCW 70.128.010. See RCW 36.70.990. 64 INFORMATIONAL MEMO Page 3 On December 11, 2017, Seattle adopted new regulations to prevent property owners from operating short-term rentals as if they were hotels, as part of a larger effort to ensure an adequate supply of long-term rental stock for the City's permanent residents, see Attachment C. The new regulations limit hosts to two dwelling units each and requires a special license to operate said rentals. The City also requires short-term rental platforms, such as AirBnB, HomeAway and VRBO, to obtain a special "platform license" to facilitate bookings in Seattle. In advance of adopting these regulations, the City approved a new tax on short-term rentals, again designed to prevent property owners from operating short-term rentals as if they were hotels. Similarly, in October 2017, the City of Kirkland adopted Ordinance 0-4607, which regulates rentals lasting for less than thirty days. Properties must be owner -occupied at least 245 days per year and a "Short -Term Rental Business License" from the City is required. The use of an ADU as a short-term rental is allowed for up to 120 days per year, as long as the property owner (or authorized agent) occupy the primary residence for at least 245 days per year. A property manager must live within 15 miles of the residence when residence is used for short-term rental purposes. The City further dictates terms that must be included in the rental agreement, including a provision that "encourages renters to exercise best efforts to avoid conflicts with neighbors related to issues such as noise, littering, parking and trespass." The City also requires a business license for long-term rentals, including owner -occupants with a roommate. ANALYSIS Council is being asked to set a policy direction on short-term rentals. A. Advantages of Permitting Short -Term Rentals. Given the results of Staff's search (see Attachment A), there appears to be an existing marketplace for the short-term (defined as 29 days or less) rental of single- and multi -family dwellings in the City. This is occurring despite the codified prohibition on the use of multi -family dwellings for this purpose. From a policy perspective, short-term rentals bring numerous benefits to those who operate them, their visitors, and the surrounding neighborhood. Many individuals use short-term rentals to help afford their own home, either renting out a basement, a spare room, or the entire home when they are out of town themselves. They provide a flexible means for homeowners to earn more money than by renting out their property on a long-term basis. For visitors, short-term rentals often offer a more affordable option, and short-term rentals bring tourists and their collective spending power to Tukwila. B. Disadvantages of Permitting Short -Term Rentals. The rise in the use of rental properties as short-term rentals has also had negative impacts in communities throughout Washington. Short-term rentals can artificially inflate rental costs, and the more commercial use of short-term rental platforms has taken entire houses, condos and apartments off the long-term housing market. Some short-term rentals attract disruptive visitors, who are essentially vacationing within residential areas, and can have negative impacts on property values. Some studies have indicated some commercialized short-term rentals impact the hotel industry and the larger business community, by circumventing traditional lodging taxes. 65 INFORMATIONAL MEMO Page 4 Short-term rentals may also contribute to creating a transient community and increase parking demand in residential areas. Some of these negative effects may be mitigated by only allowing rentals of rooms within owner occupied dwellings as opposed to entire units. However, regulating the short or long-term rental of individual rooms within an owner -occupied dwelling would be a significant expansion of the Residential Rental Business License program. Additionally, without cooperation from the online rental platforms it is difficult to identify properties and enforce the current short-term rental regulations. We receive lodging tax as a lump sum and AirBnB only reports aggregate rental data, rather than by address. Currently, the City has no permitted Bed and Breakfast facilities. This appears to be a somewhat antiquated form of residential use, with the rise of AirBnB and other online alternatives. The City is aware of a few Boarding Houses within the City and there are ongoing code enforcement complaints relating to un-permitted Boarding Houses in the LDR zoning district (where this use is prohibited). The existing definition of a Boarding House makes this regulation difficult to enforce, given its use of undefined terms like "short-term" and "commercial basis." Similarly, there is no cap on the number of tenants that may reside in one residential building, no requirement that the building is owner -occupied, and no other relevant regulations such as higher parking standards. C. Options. With this context in mind, the City could opt to prohibit short-term rental of all dwelling units within the City, including entire single-family residences, rooms within owner -occupied residences, multi -family residences, ADUs (attached and detached), mobile and manufactured homes, Bed and Breakfast facilities, and Boarding Houses. Alternatively, the City could permit the use of some or all types of dwelling units as short-term rentals, subject to restrictions such as: (1) limitations on the number of lease agreements per dwelling unit; (2) caps on the number of occupants per bedroom; (3) the length of time the dwelling unit may be occupied by a tenant within a calendar year; (4) require certain amount of parking stalls for the property, if used for rental purposes; and/or (5) owner -occupancy requirements. As discussed briefly above, there are additional restrictions from state law on regulations for adult family homes and inpatient substance abuse facilities. The City Attorney would craft language for these uses based on the overall direction from Council. FINANCIAL IMPACT Allowing short-term rentals and requiring them to be licensed would modestly increase the revenue to the Rental Housing Program. Enhanced enforcement of short-term rental restrictions would require additional resources. 66 INFORMATIONAL MEMO Page 5 RECOMMENDATION The Council is being asked to review Tukwila's short-term residential rental regulations, chose to allow or prohibit the different types of short-term rentals, and send the issue to the Planning Commission for a public hearing. and recommendation. ATTACHMENTS: A. Results of Staff Review of Rental Listings. B. Table of Neighboring Jurisdictions' Regulation of Short-term Rental Properties-1^�4"7`t�'�4- C. Regulating Short Term Rentals Seattle Policy Brief c. �.: G��-�°5 7 O n 0..Jti� OGLv�J�cd� �r�n�-5- c7(`� �l L (`7(��, �Cfid� �✓� GPI M 1 67 INFORMATIONAL MEMO Page 6 ATTACHMENT A Staff Research Regarding Existing Short -Term Rental Stock Staff reviewed the inventory of short-term rental properties (as advertised on Craigslist, VRBO and AirBnB), in order to determine the scope of the existing use of these services. A review of AirBnB and VRBO, on December 28, 2017, found approximately 35 short-term rentals offered in Tukwila, including the following: - Three bedroom home, for $149/night Private room in single family home, for $38/night Towne and Country Hotel, Furnished 3 bedroom suite for $250/night Two bedroom condo, for $135/night - One bedroom condo, for $85/night - Studio cabin (ADU), for $55/night Guesthouse (ADU), for $65/night - Room in single family home with private bath, for $40/night Private room in single family house, for $56/night Private room in three -bedroom apartment, for $60/night - Single family home, for $112/night Detached ADU (Cottage), for $80/night Private room in single family home, for $45/night - Two bedroom apartment, $120/night 68 INFORMATIONAL MEMO Page 7 ATTACHMENT B Neighboring Jurisdictions' Regulation of Short -Term Rentals Jurisdiction Single -Family Residences ADUs (Detached or Attached) Multi -Family Residences Licensure Requirements (if any) Relevant Code Citations Poulsbo Permitted Prohibited Prohibited None PMC 18.70.070 San Juan County Permitted, no more than 34 guests per bedroom; parking required Permitted (attached only), max 3 guests per bedroom; parking required; owner must occupy ADU or primary residence Permitted in Commercial zone only "Vacation Rental Permit" required SJCC 18.40.270 Clyde Hill Permitted, with limits on occupancy, parking, and use (for lodging only, can't be used for events) Permitted, with limitations on occupancy, parking, and use (for lodging only, can't be used for events) Permitted, with limits on occupancy, parking, and use (for lodging only, can't be used for events) Business License Required Ch. 5.20 CHMC Ilwaco Conditional use in single-family, zones with limits on occupancy and parking. Permitted use in certain specified zones Permitted use in certain zones Business License Required Ch. 15.41 IMC Leavenworth Prohibits use of entire dwellings as vacation rentals; permits short-term rental of a portion of a home when the property owner lives on -site throughout the visitor's stay with appropriate permits, including a business license Permitted, subject to owner- occupancy requirement and permitting Prohibited . Business License Required LMC 18.52.120 Westport Permitted, subject to occupancy cap, parking and other standards Permitted, but only 1 vacation rental unit per "property" Prohibited Business License Required Ch. 17.22 WMC 4 San Juan County Council.is currently considering legislation to reduce this to two guests per bedroom. 69 ILL VOOth St :0,0 taw 06th St \\ac'')n N 105th St CROWN HILL GREENWOOD > Yr n z E NW 85th SI z LOYAL HEIGHTS u, BALLARD AN! 50th St r._Ittenden LOCK 5th Si PHINNEY RIDGE NW Market St WOodl1lld Pt$:4 403�La NW AGII St, y MAGNOLIA s INTER1 AY ante . 82inbdidge telend Seattle - Buittbrtdye Mend 3 FREMO 1ML 1 hog ei Boston St N 85th St N nth St }tt'Ih dt•atlk College MAPLE LEAF to__ EN LAKE Mtl z N501h St WALLINGFORD N 34th SI W EN ANNE W STk L7TTL LAKE UNIONr- OUEEVE rare Needle o'A' on State conremlan Cen e� Denny Way E PLACE RKET STEAK WEDGWOOD 5. z VIEW RIDGE �o NORTHEAST 9 "' NE 75th St SEATTLE NE TSIh 51 8 NE 70111 51 . � �� r>,i4 3 A. - s NE 65th St RAVENNA 11E 651h SI z z NE 50,1t St Unarm:Ay V?!CLit'.v INE 45t1t St NE 45th Si 3 LAitverltyaf YMolnoglon e NE 551 h St CAPITOL HILl. Seattke MOHTLAKE 1S;r A f57 reIUm HAWTHORNE HILLS NE 600t SI t WINDERMERE > VLnY NE tiF..''Vei toe # Qo m S �Q NP. SCth St LAURELHU' MADISON HARRISON/' DENNY-BLAIN MADRONA a{ C Cherry St Q REGULATING SHORT TERM RENTALS POLICY BRIEF OFFICE OF COUNCILMEMBER TIM BURGESS Ala SEATTLE CITY COUNCIL Please Direct Questions to Seferiana Day / Office of Councilmember Tim Burgess seferiana.day@seattle.gov / 206-684-8806 / 600 4th Ave . 2nd Floor . Seattle, WA 98104 UPDATED APRIL 2017 Attachment C MI 4son" SW Morgan $. 3 y a 52 $W HMden St SW Holden St s 11 )'Ini 7 CW TTwn• Cr DEL$IDGE GEORGETOWN PARK King County„4.. national Airport -- y NEW HOLLY a' RAINIER VALLEY 71 0 -�- • • • . • • ', m yr--- r •• • -- • t .� a •;�. \Settle iv •• • At • !: ;— • ""'_ J;—t` • • , 1 • • •) • • �•i 1 *I %r• st• '••,..l1.• ° °r • .V • �•yFot "do : !• Estimated AirBnB rental reviews in Seattle in July 2013 (top) and July 2015 (bottom). Data from insideairbnb.com Introduction For many years, short term home rentals have been a popular lodging choice for travelers in Europe and certain high volume tourist destinations in the United States. With the advent of technology -based online platforms that facilitate the marketing and booking of short term rentals, this market has rapidly expanded across the globe. One need only look at the rise of two of the major companies in the short term rental industry to view the incredibly fast pace of growth. Airbnb received its first $20,000 seed grant in 2009.1 In December 2015, less than seven years later, the company confirmed a round of $1.5 billion in venture capital funding, bringing its total valuation up to $25.5 billion.2 Its website now touts more than 2 million listings available in 34,000 cities across 191 countries.3 HomeAway, another vacation rental company that includes the website VRBO.com (Vacation Rentals by Owner), launched in 2006 and also grew rapidly; the company's website states its annual revenue increased 28.9% in 2014 over the prior year.4 Previously a publicly traded company on the NASDAQ exchange, Homeaway was acquired by Expedia in late 2015 for $3.9 billion, a price nearly 20% higher than its market value at that point.5 It currently offers more than 1 million listings in 190 countries.° No evidence suggests that the growth of this industry in Seattle is any different. While Seattle -specific data has not been made publicly available by major players in the short term rental marketplace, external websites scrub Airbnb listings data and aggregate the information for market analysis. These websites show recent rapid growth in the number of listings.' Airbnb states on its website, "The number of guests using Airbnb has grown steadily since 2009, with visitation more than doubling every year." 2 72 "My landlord is a nice guy, he has kept the rent relatively reasonable for me and my partner, but he's recently informed us we will need to leave in a few months because he wants to rent out the property on Airbnb." -K., Seattle resident Benefits and Challenges of Short Term Rentals Short term rentals bring numerous benefits to those who operate them, their visitors, and the surrounding neighborhood. Many individuals use short term rentals as a way to help afford their own home, either renting out a basement, a spare room, or the entire home when they are out of town themselves. In a housing market that presents affordability challenges, there is no doubt short term rentals alleviate the housing burden for the many families that operate them. For visitors, short term rentals often offer a more affordable option. Short term rentals bring tourists, wedding parties, visiting family members and their collective spending power to neighborhoods across Seattle. Airbnb recently estimated the economic impact of its visitors in Seattle was $178 million from August 2014 to July 2015, supporting 1,700 jobs.8 At the same time, the more commercial use of short term rental platforms has taken entire houses, condos and apartments off of the long term housing market. One external website estimates that roughly one-third of Airbnb's listings in Seattle are from hosts with multiple listings. These could be multiple rooms in a house or completely separate units; hosts with multiple listings are more likely to be commercial operators not renting portions of their own primary residence.9 A recent report published by CBRE Hotels' American Research found that 79 percent of Airbnb's revenue in Seattle comes from entire home listings and the revenue generated by hosts with multiple entire -home listings increased by 183 percent between 2015 and 2016.1° Commercial enterprises utilizing online rental platforms to market multiple units in multiple locations further exacerbate the housing crisis facing Seattle. Without regulation, this practice could continue to rapidly expand. As a 3 73 G Any strategy the City can pursue to put more units into the Tong term market is worth examination. recent Harvard Law and Policy Review article explains, "So long as a property owner or leaseholder can rent out a room on Airbnb for cheaper than the price of a hotel room; while earning a substantial premium over the residential market or rent -controlled rent, there is an overpowering incentive to list each unit in a building on Airbnb... In tight housing markets with near -zero vacancy rates, a sudden reduction in supply naturally increases rents, particularly because neither the market nor the public sector can swiftly add to the housing stock." 11 The extent of Seattle's housing crisis is well known. Lower income renters are being pushed further from the center city as prices rise; home buyers face an extreme lack of options and strong competition for every purchase offer. In 2015, Mayor Murray's Housing Affordability and Livability Agenda (HALA) taskforce put forward recommendations to achieve his goal of 50,000 new units of housing over the next 10 years, with 20,000 of these units designated as affordable. Short term rentals are not the leading cause of the severe shortage of housing (at all levels of affordability), but they have exacerbated an existing crisis. Any strategy the City can pursue to put more units into the long term market is worth examination. One of the recommendations from the HALA taskforce focused on short term rentals. Specifically, the taskforce recommended that the City pursue collecting taxes on this activity and dedicating those tax dollars to affordable housing. Currently, the City lacks the taxing authority to implement this recommendation. The sales tax is collected by the State and the hotel -motel tax in Washington is revenue carved out from the State's portion of the sales tax and remitted to local jurisdictions; state law dictates how this revenue can be spent. Facing this lack of options for new taxing authority, we have focused on regulatory actions that would align with the HALA goal of putting more units into the long term market. "The only unit 1 have rented through a short term rental service, Airbnb, has been my primary residence, a single family home located in an SF 5000 zone. I utilize the service for times when I will he on vacation, and my rental days have never exceeded thirty days per year." - G., landlord and AirBnB host 4 74 While secondary to the housing concern, short term rentals also pose challenges to a fair economic playing field in the vacation market as it is unclear how many operators apply for the necessary business license and pay all applicable taxes. Further, many neighbors of units that have been converted to short term rentals raise legitimate questions about neighborhood livability. Regulatory Systems in Other Cities A review of the regulatory approach taken by other jurisdictions reveals a wide range of regulatory responses. On one end of the spectrum, some jurisdictions have focused exclusively on collecting the appropriate taxes that apply to short term rental transactions. On the other end, cities ranging from New York City to Santa Monica have enforced much stricter regulations; in New York City, apartments cannot be rented out for less than 30 days. Per a new law in Santa Monica, short term rental operators will have to live on the property during any short term rental stay. Other cities have attempted to find a middle ground. Philadelphia allows for short term rentals up to 90 cumulative days a year without a permit, requires a permit and owner occupancy of the unit for rentals from 90-180 cumulative days a year, and prohibits short term rentals for more than 180 cumulative days a year. San Jose allows short term rentals of up to 180 days a year without a host present and year-round with a host present. Both cities were cited by Airbnb's Public Policy Team as positive examples for Seattle to explore. 5 75 Taxation and Regulatory Context in Seattle Short term rental transactions currently operate outside of a solid regulatory framework in Seattle. Any person providing lodging services is required to collect and remit retail sales tax, meaning that anyone who offers their home or a portion of their home for short term rental should be paying this tax. Airbnb recently announced an agreement with the Washington State Department of Revenue to pay sales tax on behalf of its hosts, but it is unclear how many other owners pay the retail sales tax (9.6% in Seattle) on their units if they are not offering the units through Airbnb's website. "Last year a [neighboring townhouse] unit was sold.... One neighbor found that the owner is now renting out all three bedrooms in the house and apparently runs it as an AirBnB.... When I mentioned this to a couple of friends living in other parts of the city two of them said they were aware of similar situations in their areas." -E., concerned neighbor The Convention and Trade Center tax (15.6% when combined with sales tax) only applies to lodging businesses with 60 or more units. The sales tax is the only applicable tax to a short term rental transaction, because the basic hotel/motel tax in Washington State is collected as part of the state's portion of the sales tax and then remitted to local jurisdictions. The vast majority of short term rental operators do not have business licenses, which are currently required . While most if not all short term rental operators would fall under the Business and Occupation Tax minimum threshold of $100,000 in gross revenue, they are still required to get a license and report their revenue. With the exception of Bed and Breakfasts, commercial lodging (hotels and motels) are not allowed in residential zones. In single family zones, bed and breakfasts are allowed with conditions 6 76 outlined in Seattle Municipal Code 23.44.051. They must have a business license, adhere to dispersion requirements, establish quiet hours, must be operated by the principal owner and the owner must live on site, -must notify neighbors, have limited signage, and meet parking requirements. In multifamily zones, bed and breakfasts have similar but slightly less restrictive requirements (SMC 23.45.545G). Regulatory Role for Government While some elements of the current short term rental market are novel, including the technology and the flexibility it offers, many aspects of this market are simply business operations. The City has always played a regulatory role when it comes to business and determining what level of operations is appropriate in residential areas. Any City government regulations should support one of these three goals: e • • Balance the economic opportunity created by short term rentals with the need to maintain supply of long-term rental housing stock available at a range of prices. Ensure a level playing field for individuals and companies in the short term rental market. Protect the rights and safety of owners, guests and neighbors of these units. As explained in the Benefits and Challenges section, the first goal is the. most pressing for Seattle City government. The primary elements of the regulatory scheme proposed below were built to address this issue. At the same time, the proposed regulations also either directly or indirectly support the second and third goals. Primary goal Providing economic opportunity while maintaining rental housing stock 0 7 77 Proposed Regulations for Seattle Short Term Rental Operators With any regulation, one must start by defining the activity being regulated. In this case, we are defining short term rentals as any stays of 29 nights or fewer in duration. Stays longer than 29 nights in duration would not be subject to this proposal or be part of any cumulative short term rental stay calculations. We believe any stays of 30 nights or more fill a need in our housing market for households in transition. One benefit of the technology that facilitates the marketing and booking of short term rentals is that it expanded this niche in the housing market. Requirements Primary Residence Short term rental operator resides on -site Business License Existing Requirement Short Term Rental Operator's License New Requirement Not Primary Residence Short term rental operator resides off -site Business License Existing Requirement Short Term Rental Operator's License New Requirement Limited to 1 dwelling unit in addition to the operator's primary residence located in the City of Seattle New Requirement 8 78 The basic proposed framework for short term rentals in Seattle would look like this: You will be: 1. limited to renting your primary residence (including an in-law unit or backyard cottage associated with your primary residence) and a maximum of one additional dwelling unit and 2. required to register with the City and get a new Short Term Rental Operator license as well as a business license, an existing requirement. You will also be subject to a few more standards, including providing: • proof that the unit is your primary residence, • the license number on any short term rental listing, • a local contact number for guests, and • a signed declaration that the unit is up to code This proposed limit on the number of units is designed to meet the goal of maintaining our long term housing supply. This requirement will impact those who use these platforms commercially, not homeowners trying to make a little extra income on the side. The proposal would allow an exception to the proposed limits for operators of existing short-term rentals located in the Downtown, South Lake Union, and Uptown Urban Centers (areas where many of the City's lodging uses are located) while not allowing this commercial activity to expand. We also propose leveling the regulatory playing field for traditional bed and breakfasts, which still operate under regulations from the pre -online short term rental era. By lessening some the regulatory burden they currently face, the City can bring traditional bed and breakfasts in line with the new regulations for short term rentals. G The affected operators will be those who use these platforms commercially, not homeowners trying to make a little extra income on the side. 9 79 r. A Summary of New Regulations Facing Operators Regulations / requirements Operator's primary Operator resides residence off -site Applicable policy goal Title 5 Business License (existing requirement) x x 0 0 Pay all applicable taxes (existing requirement) x x 0 0 Prohibit evidence of STR use from exterior for except for signs as permitted by the sign code x x• Limit # of units to the primary residence and one additional dwelling unit x o Provide proof that the dwelling unit offered for short term rental is their primary residence x NA o Provide a local contact to all guests x x • Require operators declare that the unit meets the requirements of the Housing and Building Maintenance Code x x co Require posting of basic safety information for guests within rental units x x 10 80 Proposed Regulations for Seattle Short Term Rental Platforms After surveying practices in other jurisdictions, it became clear that receiving data from the online platform companies is vital to an effective enforcement structure. In order to facilitate the enforcement, the City will need to collect basic information from the Short Term Rental Platforms like VRBO or Airbnb. To do so, these companies will need to register for a new regulatory license with the City. "I am a residential cleaner and have cleaned for several Airbnb renters and have thought for a very long time that this was severely adding to the housing problem in our city. I find it unfair how people could sit on empty apartments and rent them out for income while my friends, who are willing to pay a monthly rent, can't find an affordable apartment in the city" -S., residential cleaner The only requirements for the license will be a) to provide information about Seattle's regulations to operators using the platform b) to share basic data with the City on a quarterly basis, including the total number of short term rentals listed on the platform and the total number of nights each listing was rented through the short term rental platform and c) provide booking services only with operators who have been issued a short-term rental operator's license. 11 81 NE.95th St 65th St RAVENNA Ath St nversity Village NE 45th St WEDGWOOD 32 0 z NORTHEAST VIEW RIDGE a TLE NE 75th St 'i r W�eqnr�e1n G NE 70th St ,t M Pztk on m r' NE 65th St / NA ILLS HILLS F NE (with St HILLS ti RI NE 551h St o ▪ • vJay tJE0a / 1 c caC NE SCth St clr---- University of Washington t ▪ C loam r MONTLAKE LAURELHURST N I _' M'" 1NP IlARRISONP w ▪ DENNY-BLAINE' MADRONA RAF PARK C Che+y 81 Yes1er Way LESCHI w — • ii n b vm \QI college St u+ R' 3TH ti NHILL 9�S Jeffe,:.on Park f Golf Cou,se 0 N BEACON HILL. to s S Genesee Si ,MSIA CITY SEW'/ARD PARK S Grattan, St `P NEW HOLLY ¢ RAINIER VALLEYr. i n L w!d Par4, Concluding Remarks and Comments on Equity Inevitably, no citywide policy can best meet theindividual needs of every short term rental operator. The proposed regulations detailed above attempt to strike a balance that recognizes both the benefits and challenges offered by short term rentals. They also attempt to focus on this issue through an equity -based lens: while there are a variety of stakeholders and interests in this area, those looking for an affordable home in this city are more in need of supportive local government intervention than those offering their second (or third or fourth) homes to out-of-town visitors. After these regulations are translated into legislation, they will be vetted through the full public process of the City Council, where input is eagerly accepted and further revisions robustly debated. Endnotes 1 http://techcrunch.com/2009/03/04/y-combinators-airbed-and- breakfast-casts-a-wider-net-for-housing-rentals-as-airbnb/ 2http://www.wired.com/2015/12/airbnb-confirms-1-5-billion-funding- round-now-valued-at-25-5-billion/ 3https://www.airbnb.com/about/about-us 4https://www.homeaway.com/info/media-center/presskit 5http://www.nyti mes.com/2015/11/05/business/dealbook/expedia-to- acquire-homeaway-for-3-9-billion.html?_r=0 6https://www.homeaway.com/info/about-us 7See https://www.airdna.co/sample/us/washington/seattle or http:// insideairbnb.com/get-the-data.html 8http://blog.airbnb.com/economicimpactsinseattle/ 9http://insideairbnb.com/seattle/ 10 https://www.ahla.com/sites/default/files/CBRE_AirbnbStudy_2017. pdf 11 http://harvardlpr.com/wp-content/uploads/2016/02/10.1_10_Lee.pdf l FILE NUMBERS: REQUEST: LOCATION: PUBLIC NOTICE: STAFF: ATTACHMENTS: Properties rn V\ % ,I L� STAFF REPORT TO THE PLANNING COMMISSION DECEMBER 2017 Review and revise Tukwila's short and long term rental regulations, hold a public hearing, and make a recommendation to the City Council City wide Nora Gierloff, Deputy DCD D;irsector; Minnie Dhaliwal, Planning Supervisor; Charlotte Archer, Asst. Cittorney Exhibit A: Table of eui e it TMC Pro,ions Relevant to Rental Exhibit B: Exhibit C: Policy Brieef, City of Seattle Short Term Rental Regulations Comparis,,City R daStandards •In conjunction with the City's discussio ns pertaining to detached accessory dwelling unit (ADU) regulations, which began in March 2017, th,e City.Council dird Staff to address the potential rental of detached ADUs • both for short termng. term,and loperiods, 'The intention was to review arid revise, where necessary, thetandardsorentals, genery, and to address the life safety issues uniquely pose7by short and long term rentals. Over the life of the project 'it wag 137oadened to include a review of the regulations for other residential sesXtha>ate , implicated as rentals;*.su.h aas� Boarding Houses and Bed and Breakfast establishments. The intention became to revile fi tth'ese regulations and current enforcement issues, to propos.e`_ amendments totvar�ious resident • ial uses, and to address life safety issues posed by these propertiessid their use as reels. Tukwila's Residential Rental Business License and Inspection Program, codified at Chapter 5.06 of the Tukwila M pal CodeTMC), establishes a rental licensure requirement for all "units" intended for rent. Theeleity's Code Enforcement department conducts an inspection of the unit for life safety issues, arid issues atC"ertificate of Compliance to those units meet all requirements. By definition, this licensure requirement applies to "any structure or part of a structure, which is used as a home, residence or sleeping place." There is no temporal limitation as to the rental offered. In addition, whether a particular residential building may be used as a rental is determined by the regulations set out in Title 18 TMC. For example, currently, multi -family dwellings shall not be used for a tenancy of less than one month. See TMC 18.06.247. Similarly, a "Boarding House," defined as "a residential building which provides housing on a short term commercial basis for tenants" is a conditional use permitted in the MDR and HDR zones. See TMC 18.06.073, and Table 18-6. "Bed and breakfast" facilities, defined as "an owner occupied dwelling unit that Staff Report Re Rental Uses I Pg. 1 of 13 contains guest rooms where lodging is provided for compensation," are permitted in the LDR, MDR and HDR zones as conditional uses (for up to twelve guests), subject to additional restrictions. See TMC 18.06.063, and Table 18-6. Tukwila's current standards for attached ADUs require owner -occupancy of the either the primary residence or ADU, but there is no temporal limitation regarding how long an ADU may be occupied by a renter. A table identifying Tukwila's current standards for long and short term rentals is attached hereto as Exhibit A. • The regulation of short term rental properties, in particular, is currently being debated in many jurisdictions in Washington in light of the dramatic recent growth of major companies in the industry, as well as the rental housing crisis present in the greater„Seattle area. On December 11, 2017, Seattle adopted a new set of regutatiOns designed to prevent property owners from operating short-term rentals as if they werelhote'ls; as part of a larger effort to ensure an adequate supply of long-term rental stock for theC ty' p rmanent residents. The new regulations limit hosts to two dwelling units each, :and requires ho tsbtain a special license to operate said rentals. The City also requires, short-term rental platforms, such as AirBnB, HomeAway and VRBO, to obtain a special "platform license" to facilitatetiookings in Seattle. In advance of adopting these regulations, the City approved akOW tax on shoo ter rentals, again. designed to prevent property owners�frrom operatingshortterm rentals as &they were hotels. Attached as Exhibit B hereto is a Po "`'y Brief commissToned by Councilmember Tim Burgess, describing the issues leading to the adoptio of these regulations Similarly, in October 2017sth,e City of Kirkland adopt,Ordi� ce 0-4607, which adopted a new regulatory scheme for tei nfrentals defined as rentals lasting for less than thirty days. As a o. result of the Ordinance, propertie that are. notthe proeowner s "continuance primary • residence" may no longerbe used forshort termals. The City now requires the property owner -, obtain a Short -Term Rental Bus ness; I icense from the City before renting out their home or Vilek multifamilly, regid&ke for a abort -„term, andi,fewther requires that the property owner (or authorized agent) upy the propeLty as apranary resider a for at least 245 days per year. The use of an ADU Oa»short-term rentaftallowedfor up to 120 days per year, as long as the property owner- (or autho 'zeagent) occu primaesidence for at least 245 days per year. A property manager must lie within 15 miles of the'residence when residence is used for short-term rental purposes. The City [urther dicta terms that must be included in the rental agreement, including a provision that encourages renters to exercise best efforts to avoid conflicts with neighbors related to issues such no.ise; ittering, parking and trespass." -The City also requires a business license for long-term rentalsncluding in the event of an owner -occupied roommate. A table comparing Tukwila's current standards for long and short term rentals with neighboring jurisdictions is attached at Exhibit C. DISCUSSION e Staff analyzed the methods other cities in Washington utilize to regulate short-term rentals, in order to develop a proposed model for Tukwila. Staff further reviewed the inventory of subject rental properties (as advertised on Craigslist, VRBO and AirBnB), in order to determine the scope Staff Report Re Rental Uses I Pg. 2 of 13 of the issue. A review of AirBnB and VRBO, on December 28, 2017, found approximately 35 short-term rentals offered in Tukwila, including the following: Three bedroom home, for $149/night Private room in single family home, for $38/night - Towne and Country Hotel, Furnished 3 bedroom suite for $250/night - Two bedroom condo, for $135/night One bedroom condo, for $85/night Studio cabin (ADU), for $55/night - Guesthouse (ADU), for $65/night Room in single family home with private bath, for $40/ht - Private room in single family house, for $56/night - Private room in three -bedroom apartment, for $6 /night - Single family home, for $112/night - Detached ADU (Cottage), for $80/night - Private room in single family home, for $45/night Two bedroom apartment, $120/night From a policy perspective, short term`rentals bring nume ous benefits to those Who operate them, their visitors, and the surrounding ne g boorh'ood. Many individuals use short term rentals as a way to help afford their own home, either nting 6ut,a basement; spare room, or the entire home orr" when they are out of town themselves. F'isitors ,short term a rentals often offer a more affordable option, and short term Eentals bring tourists and their liective spading power to Tukwila. At A the same time, the more =eomme vial use of shortter rentatTlatforms has taken entire houses, condos and apartments off of the lon"g term housing market. In light of the aforementioned, stafflo'ffers the following analysis and proposal. A.. 'Existingpand Proposed Short Tetan4Rental Regulations Tukwila c trent permits thefuse of certain structures for short term rental, as follows: rr�YN 1. Bed-and-Breakf st.Lodging Currently, at TMC 118.06.063,, Bed -and -Breakfast Lodging is defined as: "owner -occupied �rrwt, dwelling unit that contains guest rooms where lodging is provided for compensation." These facilities are permitted in the LDR, MDR and HDR with a conditional use permit, but only if they meet the following additional regulations, set out in Table 18-6 to TMC Ch. 18, footnote 5: Staff Report Re Rental Uses I Pg. 3 of 13 a. the manager/owner must live on -site, b. the maximum number of residents, either permanent or temporary, at any one time is twelve, c. two on -site parking spaces for the owner and permanent residents and one additional on -site parking space is provided for each bedroom rented to customers, d. the maximum length of continuous stay by a guest is 14 days, e. breakfast must be offered on -site to customers and f all necessary permits or approvals arse obtanedfrom the Health Department. Bed -and -breakfast facilities may operate without eeting the aforementioned requirements, and a conditional use permit, only in the MUO. Thesaaeilities are permitted to�op•"�erate without a permit required in the TSO. However, under the existing Fanguage ofTMC Title 51111. 6 for Residential Rental Businesses, these likely require a rental licenss€.. Currently, the City houses only a few of ,th se;facilities (possibly, only one). This appears to be a somewhat antiquated form of residential , w l" the rise of A`irBnB and other online alternatives. Staff would recommend removing this classification from the 7 MC, in favor of a new broader category for Transient Acco" odations. 2. BoardirigHouses • In TMC 18 06 073., a Board'i g Ho se `sNdefined as [A] resi''dential building or use which provides housing on a short term cornrner`c.ial ba sifor tenants The following uses are excluded not conside ecL boarding house: Bed and breakfast facilities, hotels and motels, tended -stay hotels or motels, shelters, and facilities v'ch provide s ort- or long-term care for tenants suffering from physical, mental; or other disabilities. Boarding Homes are cui r�entlypermitted with a conditional use permit in the MDR and HDR. The definition is difficult to enforce given its use of undefined terms like "short term" and "commercial basis." Similarly, there is no cap on the number of tenants that may reside in one residential building, no requirement that the building is owner -occupied, and no other relevant regulations such as allocated parking. Staff would recommend amending the definition so as to more accurately identify these forms of residential uses (without being overbroad), and to prohibit these in the City. The following is a proposed amended section: Staff Report Re Rental Uses I Pg. 4 of 13 "Boarding house" means a residential building erase designed to contain one dwelling unit, which provides housing o a shoes term commercial ba is for more than one tenants, pursuant to more than one Lease Agreement, for compensation. Boarding houses are prohibited in all zones. The following uses are ex -eluded not considered a boarding house: Bea andbre^kf st f cilities, hotels and motels, extended -stay hotels or motels, shelters, and facilities which provide short- or long-term care for tenants suffering from physical, mental or other disabilities, Assisted Living Facilities, Convalescent/Nursing Homes, Correctional Institutions, Diversion Facilities, Diversion Interim Services Facilities, nd Dormitories.] 3. Single and Multi -Family Dwellings At TMC 18.06:247, Multi -Family Dwellings are,e p essly proliili4ted from use as a short-term rental: "[d]uration of tenancy in multi -family dWell-ings is not less than one month." There is no such language for Single -Family Dwellings. See,MC 18.06.248. Given the results of the aforementioned search, there „PP a • earlobe an existiing tP n arke lace for the �.�� short-term (defined as 29 days or less' rental of single- ,and multi -family dwellings in the City. This is occurring despite the codified prop bition on the;.ruse of multi -family dwellings for this purpose. Staff would recommend amending the code to prohbfiitthe use ofoth single- and multi -family dwellings for the pure o rnf shorn` -term rentals. This could be acccomplished by adopting a category of Transient Accomod`ations, defined as: 18.60.XXX . ,Transient accommodations. Transient accommodationgoineans the rental of any building or Portionetheof uedfor the Po'seo(Providin lodging for periods of twenty-nine .(29) days.or less, for compensation. Single-family „dwellings, acsory d Pw�e� fling units, and multi -family dwellings shall not be used'for transient accommodations. This prohibition does not apply toAssisted Living Facilities, Convalescent/Nursing Homes„ Correct& nal Institutions, Diversion Facilities, Diversion Interim ervie cilcilities, Shelters, and Dormitories. Simultaneously, the definitions for single- and multi -family dwellings maybe amended as follows: 18.06.247 Dwelling, Multi -Family "Multi -family dwelling" means a building designed to contain two or more dwelling units. A multi -family dwelling shall not have an accessory dwelling unit, and shall not be used for transient accommodations. Staff Report Re Rental Uses I Pg. 5 of 13 18.06.248 Dwelling, Single -Family "Single-family dwelling" means a building, modular home or new manufactured home, designed to contain no more than one dwelling unit. A single-family dwelling may include, plus one accessory dwelling unit, but neither dwelling unit shall be used for transient accommodations. If the Council and Planning Commission desire to permit the use of single- and multi -family dwelling units for short term rental purposes, the following,,proposed code language would effectuate that goal while ensuring `+ 18.60.XXX Residences and ADUsUsed as Transient Accommodations. The following standards apply -tooa11 single-family _dwellings, accessory dwelling units, and multifamily dwellings, when used for the purpose of providing transient 'accommodations: 1. No more than two guests per bedroo n shall be accommodated' at any one time. 2. The rental shall be`opera edin a ways that will prevent unreasonable disturbances. to area residents. 3. At -least one additional off -street -parking spaceshall be provided fo tlie.. rental use r in addition•=to the parking required for the dwelli g?unit. Nooutdoradvertising igris.are p itted. An oWner,may tent as transient accommodations either the single-fam11 ' dwelling''or the accessory dwelling unit connected therewith, but not both %The owner must reside on the premises during the rental, or one of the two dwelling units shall remain unrented. 6. RentalJtaccommodations shall meet all local and state regulat onsrincluding the Residential Rental Business License and Inspection Program, pursuant to TMC Ch. 5.06. 7. Detached accessory dwelling units shall not be used as transient accommodations. The use of a single-family dwelling, accessory dwelling unit, and/or multi -family dwelling as transient accommodations may be allowed by conditional use permit only. Staff Report Re Rental Uses I Pg. 6 of 13 B. Existing and Proposed Long Term Rental Regulations Currently, the City permits the use of single- and multi -family dwelling units as long-term rentals, defined as a tenancy of thirty (30) days or longer. These rentals currently require a rental license pursuant to TMC Title 5, Ch. 6, however this requirement is not enforced as it relates to the owner - occupied renting of a room (i.e., a roommate). In addition, there are no regulations relevant to number of occupants, number of lease agreements, and parking spaces provided. Staff would recommend continuing to permit the use of single- and multi -family residences for long-term rental purposes, but with additional regulations addressing the aforementioned issues. The following proposed amendments would effectuate this go, A single family dwelling may be used for gimp of providing lodging .for periods of thirty (30 days),opmore, for, compensation, provided: a. There shall be single Lease' gr ement, which shall befog either the entire home, or the portion thereof that is. ented. If the/Single Lease Agreement is for a portion�of the single family dwelling, the owner must reside on the prern�i e 4or the duration of the rental. b. No more than twoocc ipants per bedroom shall be accommodated under the single "Lease Agreement, at any one time. c. Anowner may rent as accommodations an accessory dwelling unit connected Lthe single: family dwelling, but the owner must residontle.premises for the�,duration of the rental. d. Rental acconim dations sha�t1 meet all local and state regulatioIncludgthe Residential Rental Business License and Inspection Program`; pursuant to TMC Ch. 5.06. A multi -family ,dwelling, including duplex, triplex, fourplex, condominium, and/or townhouse, may be used for the purpose of providi ga l,odgfor periods of thirty (30) days or more, for compensatip nptovided: a. There shall be single Lease Agreement per dwelling unit, which shall be for either the entire dwelling unit, or the portion thereof that is rented. If the single Lease Agreement is for a portion of the dwelling unit, the owner must reside on the premises for the duration of the rental. b. No more than two occupants per bedroom shall be accommodated under the single Lease Agreement, at any one time. Staff Report Re Rental Uses I Pg. 7 of 13 c. Rental accommodations shall meet all local and state regulations, including the Residential Rental Business License and Inspection Program, pursuant to TMC Ch. 5.06. Currently, attached accessory dwelling units (ADUs) may be used for both short- and long-term rental. The Council has directed staff to propose for adoption regulations to permit detached ADUs, subject to certain restrictions. Staff would recommend against continuing to permit ADUs (both attached and detached) as short- term rentals, as discussed above. Staff would recommend permitting the use of attached and detached ADUs for long-term rental purposes, subject to the" p posed additional requirements described above. In addition to an added definition of Transient Accco mmodations Staff recommends adding the following definition (take directly from RCW 59:18:030(25), theResidential Landlord -Tenant Act) in order to clarify the proposed regulations;.g erning the rents ofsingle- and multi -family dwelling units: 18.06.XXX Rental or Lease Agreement "Rental or Lease agreement .means all agreements, whether written or oral, which establish''o modify the toms, conditions, rules, regulations, or any othen provisions concerning the use and occupancy,ofa_dwelling unitfor a porti $ thereof` C. Proposed Amendments o Title 5, Chapter:6 Residential, Rental Business Tukwila currently has obust residential rental'ii'Censure program, including the inspection of single- and multi -family dwellmgumts;used for rental purposes. In light of the aforementioned proposedrecornrnendations, Staff would recommend -the following modifications to TMC Title 5, Ch t6 o as to ensure a i rental properties — ex tiding the traditional "roommate" scenario are subject to the City's li a sure requirements. $A16.020 1 Definitions Dwellin ' means the whole of a structure or building, or a portionPthereot,providing complete housekeeping facilities for a group of(individuals living together as a single residential community;with one kitchen, one or more sleeping rooms, eeninien eeelngeating and bathroom facilities containing a toilet, and a shower or bathtub, other than trap it ho sing ection l facilities defined in this code, which is physically separated from any other dwelling units which may be in the same structure. XX. "Multi -family residence" means a building designed to contain two or more dwelling units, including but not limited to duplexes, tri-plexes, four-plexes, apartment buildings, condominiums, or townhouses. Staff Report Re Rental Uses I Pg. 8 of 13 11. "Occupant" means an individual, partnership, corporation or association, or agent of any of them lawfully residing in a rental unit. 12. "Owner" means the owner of record as shown on the last King County tax assessment roll or such owner's authorized agent XX. "Rental or Lease Agreement" means all agreements, whether written or oral, which establish or modify the terms, conditions, rules, regulations, or any other provisions concerning the use and occupancy of a dwelling unit or a portion thereof. 14. "Rental unit" means a dwelling unit, or poo rtion thereof, occupied or leased by a tenant. 15. "Single-family residence" mean01building, modular home, or new manufactured home design t to contain no mbre than one dwelling unit, plus one accessory dwelling unit. 16. "Tenant" means any adult person grante 1 temporary use of a rental unit pursuant toga lease or rental greement with the owner Of the rental unit. 17. "Unit" means any structure or p�+�ya�,�rt of a structure, which is used as a home, residence or sleeping place° -by one or .more persons, ineleeztimiteatfiroexes_fevr_fifieiti_faiii"ieilifigs_apaftment_43ufkhngs_xe_vmtpt_Fesieenees_euies_ui_ 18 Rental lunrt uriama liable for rents means a rental unit. whose ownerfiled with the code official a statement signed under penalty ofpjury that such renta it is not offered or available for rent as a rentalunit anat prior to offering or making the rental unit availableforr, rent as a' rental unit, the owner will apply for a Residential REal Business License and comply with any appl ;cable admilittrative regulations adopted pursuant to this chap 5.06.030 Scope The provisions of this chapter shall apply to all rental units, with the exception of: 1. 1 I \ 1 o*c.• 9` CP rwY : • A rental unit subject to a single Rental or Lease Agreement for a portion of a dwelling unit', where the owner resides in that dwelling unit with the tenant(s) for the duration of the term of the Rental Agreement (traditional roommate circumstance). Staff Report Re Rental Uses I Pg. 9 of 13 2. Units unavailable for rent; 3. Housing accommodations in hotels, motels, or extended -stay hotel or motel ' ; 4. Housing accommodations in retirement or convalescent/nursing homes, assisted living facilities, correctional institutions, diversion facilities, diversion interim services facilities, shelters, and dormitories; 5. Housing accommodations in any hospital, State licensed community care facility, convent, monastery or other facility occupied exclusively by members oftlfeligious order or an extended medical care facility; 6. Housing accommodations thatla government unitagency or authority owns, operates ormanages, or which are specifically exempted from municipal regulation by State or federal law or administrative regulation. Thisexception shall not apply once the governmentallownership, ‘7p:•eration or management regulation is discontinued., 5.06.040 Residential Rental BusinessLicensiRequirement Every .rentahviiiiitOwner sl allhobtairi an nnual residential rental businesicense p suant to Title 51of he Tukwila:Municipal Code, , prior to�operating, leasing or causing to be leased a rental unit. ,CONCLUTN Tukwila faces a dilemma as it relates. to short-terrm'rental properties, as they often pose a threat to the existing,rental housingtsupply while providing a means for homeowners to earn extra money by renting ottheir propertye afore entioned proposals address the concerns related to short- term rentals, cluding but not��limited to decreased rental housing supply for long-term tenants, creating a transient community, and •increased parking demand in residential areas. Please let us know,iif you would like further information or analysis on these issues. Staff Report Re Rental Uses I Pg. 10 of 13 Exhibit A — Table of Relevant TMC Provisions (with proposed amendments tracked in) 18.06.063 Bed -and -Breakfast Lodging "Bed -and -breakfast" means an owner -occupied dwelling unit that contains guest rooms where lodging is provided for compensation. 18.06.073 n Boarding House OL)-)+ur a LL ✓ n "Boarding house" building means a residential er -use designed to contain one dwelling unit, which provides housing on a short term commercial basis for more than one tenants, pursuante.to.more than one Lease Agreement, for compensation., B:oa ding houses are prohibited in all - zones. The uses�i� not considered a boarding house: followin , hotels and motels, extended -stay owls or motels, shelters,_and facilitiesw• ifigq-hch provide short long-term care for tenants suffering from physical, mental or other disabilities, NogAssisted Living Facilities, Conva'lescent/Nursing Homes, Correctional Institutions, Diversioacilities, Diversion Interim Services F,ac lties, and Dormitories.l 18.06.237 Dormitory , Dormitory means'`"aresidential building or use which t vides housing for students attending an affiliated school or"housing' fofinbers ofa�a religious order. Dormitories may incluk tchens cafeterias, meeting rooms, laundry room other accessory facilities to serve the residents of the cility. The owner/operator of a dormitory shall complvith the provisions of the Residential Rental Business' Lcense and Inspection Program, pursuant to TMC `Ch_ N. 6. 18.06.247 v Dwelling, Multi -'Family ' -Multi-family dwelling" means a building designed to contain two or more dwelling units. A multi -family dwelling shall not have an accessory dwelling unit. 18.06.248 Dwelling, Single Family "Single-family dwelling" means a building, modular home or new manufactured home, designed to contain no more than one dwelling unit. A single-family dwelling may include, dwelling plus one accessory unit. 18.06.287 Extended -Stay Hotel or Motel "Extended -stay hotel or motel" means a building or buildings or portion thereof, the units of which contain independent provisions for living, eating and sanitation including, but not limited to, a kitchen sink and permanent cooking facilities, a bathroom and a sleeping area in each unit, and are specifically constructed, kept, used, Staff Report Re Rental Uses I Pg. 11 of 13 maintained, advertised and held out to the public to be a place where temporary residence is offered for pay to persons for a minimum stay of more than 30 days and a maximum stay of six months per year. Extended -stay hotels or motels shall not include dwelling units, as defined in this section, for permanent occupancy. The specified units for extended -stay must conform to the required features, building code, and fire code provisions for dwelling units as set forth in this code. Nothing in this definition prevents an extended -stay unit from being used as a hotel or motel unitExtended-stay hotel or motels shall be required to meet:the hotel/motel parking requirements. �- ar Not included are°institutions housing persons under legal restraint or reg;medical attention or care 18.06.440 Hotel .... „-:�r '. "Hoteriiireans a building, or b tildings or portion thereof, the nits of which are used, rented'or hired out as sleeping accommodations onlyfor the purpose of transitory housing in which access to individual unit stpredominantly by means of mon interior hallways. `Hotel rooms shall hae their own private toilet facilities, and may or may not 'have their own kitchen facilities. Hotels shall not include ' dwellingunits, as defined in this section, for permanent occupancy'Acentral kitchen, dining room and accessory �sliops and,isery ces,cateri g to the general public can be provided- No room:`may, be used by the same person or persons -;or a period exceeding thirty (30) calendar days per year. 'Not included are institutions housing persons under .,legal restraint or requiring medical attention or care 18.06.585r `Motel "1Vlot l means a building or buildings or portion thereof, the unit of which are used, rented, or hired out as sleeping accommodations only for the purposes of transitory rt-housing, in which access to individual units is ~predominantly by means of common exterior corridors. A motel includes tourist cabins, tourist court, motor lodge, auto court, cabin court, motor inn and similar names but does not include accommodations for travel trailers or recreation vehicles. Motel rooms shall have their own private toilet facilities and may or may not have their own kitchen facilities. Motels are distinguished from hotels primarily by reason of providing adjoining parking and direct independent access to each rental unit. Motels shall not include dwelling units, as defined in this section, for permanent occupancy. No room may be used by the same person or persons for a period exceeding 30 calendar days per year. Not included are institutions housing persons under legal restraint or requiring medical attention or care Staff Report Re Rental Uses I Pg. 12 of 13 18.06.XXX Rental or Lease "Rental or Lease agreement" means all agreements, Agreement whether written or oral, which establish or modify the terms, conditions, rules, regulations, or any other provisions concerning the use and occupancy of a dwelling unit or a portion thereof. 18.06.685 Residence "Residence" means a building or structure, or portion thereof, which is designed for and used to provide a place of abode for human beings. 18.06.800 Structure "Structure" means a combination of materials constructed and erected permanent on the ground or attached to something having iipermanent location on the ground, but excluding all s of;uehicles even though immobilized. Not included ate residential fences up to six feet in height, • retaining.�waIls or rockeries with up to four feet of exposed faceface,alliifmilar improvements of minor character. rat" 18.60.XXX Transient "Transi nt, accommodations" means the rental of any accommodations building or? .portion thereof used" fdr .the purpose of providing odging o periods of less i an 30 days, for compensation.;[Single-family dwellings, accessory d tiling units, odmulti-family dwellings shall not be useWol.transient accommodations.] [This prohibition does not pa p . to '"'Assisted Living Facilities, C,onvalesc: nt/N rsing Fa es, Correctional Institutions, diwersicaaFa ilitie lbixersion Interim Services Facilities, Shel -rs,I d Dormitor es.] Staff Report Re Rental Uses I Pg. 13 of 13 Residential Types/Short Term Rental PROJ-00007 PARENT FILE PL18-0033 THIS FILE E 18-0007 SEPA/CHECKLIST