STR Grandfathering Amendment

We urge the City Council to grandfather existing short-term rental hosts, who started their business based on the 2015 ordinance. Below is our suggested amendment.

“Grandfathering” Amendment to Committee Ordinance 19-077

NOTE: amendment text is underlined

Add new definition: “Legacy Short-Term Rental Property” shall mean any residential dwelling unit or portion thereof operated as a Short-Term Rental Property prior to the adoption of this Chapter.

Add new subsection 255-2(b)(vii): Any Legacy Short-Term Rental Property, provided that rent is not set by HUD, set by a State agency, or governed by Chapter 260 of this Code.

Add the following to the beginning of the first and second sentences of each of subsections 255-2(e), 255-2(f), 255-2(g) and to the beginning of the first sentence of subsection 255-4(a)(iv): Other than with respect to any Legacy Short-Term Rental Property

Add the following after the second sentence of subsection 255-3(b): The foregoing shall not apply to any Legacy Short-Term Rental Property, and each Legacy Short-Term Rental Property shall be deemed to be permitted in accordance with this Section so long as a short-term rental permit application in accordance with this Section has been submitted by January 1, 2021, and until such time as the short-term rental permit has been issued or denied without possibility of further appeal.

Add new subsection 255-3(g):Upon any direct or indirect sale, transfer, conveyance, assignment, lease termination or non-renewal, sublease or license (any one or more of the foregoing, a “Transfer”) of a Legacy Short-Term Rental Property, the short-term rental permit for such Legacy Short-Term Rental Property shall automatically expire and such residential dwelling shall no longer constitute a Legacy Short-Term Rental Property for purposes of this Section. Within ten (10) business days of any Transfer, the transferor shall notify the Department of Housing Preservation in writing of the Transfer. Such writing shall (1) identify all advertisements or listings on third-party platforms with respect to such property and (2) certify under penalty of perjury that such advertisements or listings have been deactivated and that the property is, as of the date of the Transfer, not being advertised or operated as a short-term rental. Failure to notify the Department of Housing Preservation in accordance with this Section, or any Transfer of any Legacy Short-Term Rental Property in contravention of this subsection 255-3(g) shall be a violation of this Section and may result in enforcement action against the transferor, including the issuance of a summons and levying of fines and/or penalties.