Loading...
HomeMy WebLinkAboutOrdinance No. 4448 - Second Reading: Ordinance creating Chapter 7-6 relating to Short Term Rental Hosting Platforms ORDINANCE NO. ____ AN ORDINANCE CREATING CHAPTER 7-6 OF TITLE 7 OF THE ROCHESTER CODE OF ORDINANCES RELATING TO SHORT TERM RENTAL HOSTING PLATFORMS. THE COMMON COUNCIL OF THE CITY OF ROCHESTER ORDAINS: Section 1. Chapter 7-6 of the Rochester Code of Ordinances is hereby created to read as follows: Sec. 7-6-1 – Definitions. Whenever used in this chapter the following words shall have the meanings indicated. Building inspector. The director of building safety or any of his authorized representatives and assistants. License. A short-term rental hosting platform license. Short term rental (STR) hosting platform. A person or entity that participates in the short term rental business by providing, and collecting or receiving a fee for, booking services through which an owner may offer a dwelling unit, or a portion thereof, for tourist or transient use. Hosting platforms usually, though not necessarily, provide booking services through an online platform that allows an owner to advertise the dwelling unit through a website provided by the hosting platform and the hosting platform conducts a transaction by which potential tourist or transient users arrange tourist or transient use and payment, whether the tourist or transient pays rent directly to the owner or to the hosting platform. Short Term Rental - Owner Occupied. A dwelling unit, or a portion of a dwelling unit, rented for less than 30 days, in which at least one of the owners is occupying the site during the rental period, and is registered as an owner-occupied short term rental with the City of Rochester. Short Term Rental - Non-Owner Occupied. A dwelling unit, or a portion of a dwelling unit, rented for less than 30 days, in which the owner is not present during the rental period, and holds a short term rental certificate with the City of Rochester. Sec. 7-6-2 - License required. (a) No person shall engage in the activity of a short-term rental in the city without obtaining a registration certificate as provided in section 7-5-1. Single-family owner occupied short term rentals are required to be registered only. All other short-term rental are required to be registered and inspected per Chapter 7-5. (b) Short term rentals in multi-family buildings with three or more (3+) units would be prohibited as a primary use (these would be considered hotels). Structures with three or more (3+) units require building code classification change from an “apartment building” where occupants are primarily permanent in nature to “hotel/transient housing.” Structures with five or more (5+) beds would be classified by the Department of Health as “lodging” or “hotel” and require a lodging license. 1 (c) SHORT TERM RENTAL REGULATION TABLE # of STR Rental State Building Building or 2020 State Lodging Property Dwelling Registration Property Code portion thereof Accessibility License Type Units Required Inspection Occupancy Reclassification Code Required Allowed Required Classification Required Requirements Owner Occupied IRC-1, Single 1 Yes No IRC-3, or No None Family R-3 Building Lodging Non-Owner license Occupied IRC-1, required if Single 1 Yes Yes IRC-3, or No None structure Family R-3 rents five or Building more (5+) beds Lodging license Duplex required if IRC-2, or 3 Building 2 Yes Yes No None structure R-3 rents five or more (5+) beds Lodging license Triplex required if 2,3 Building 2 Yes Yes R-2 No None structure rents five or more (5+) beds Lodging license Four-Plex required if 2,3 Building 2 Yes Yes R-2 No None structure has five or more (5+) beds Multifamily Building 25% of Yes Yes R-2 Yes, R-1 2% Accessible Lodging with more dwelling Units license than Four 2,4,5 units required Units 1 Federal and other accessibility standards may apply. 2 If more than number stated is requested, Community Development would consider this change to be a change of use (due to modifying more than 25% of the units), and would require the project to go through the applicable change of use review process. 3 For the purposes of this table it is assumed that the number of occupants within the two dwelling unit does not exceed 10 total. 4 This includes condominium units. Due to building code requirements and local condominium association rules, two condominium units are permitted to be used as short term rentals. Thereafter, additional condominium units used as short term rentals must apply for a building reclassification through Community Development. 5 If two or less units are used as short term rentals, reclassification or additional 2020 State Accessibility regulations would not be applied. Sec. 7-6-3- Short-term rental and short-term rental hosting platform license fee. (a) All other short term rentals are required to be registered and inspected per Section 7- 5-5. (b) The annual fee for the issuance or renewal of a short-term rental hosting platform license shall be as is listed in the license fee schedule. The building inspector may, through the license fee schedule, impose a lesser annual fee for a short term rental hosting platform that lists or will list no more than one-hundred fifty (150) dwelling units at any given time. The license fee shall be paid as a precondition to issuance or renewal of the license. Sec. 7-6-4 - Short-term rental application. All short term rental applicants are required to adhere to requirements of Section 7-5-4. Sec. 7-6-5. - Short-term rental qualifications for license. All short-term rental applicants are required to adhere to requirements of Section 7-5-5 (a). Sec. 7-6-6 - Short-term rental, investigation and issuance. All short-term rentals are required to adhere to requirements of Section 7-5-6. Sec. 7-6-7 - Adverse license action. All short-term rentals are required to adhere to requirements of Section 7-5-20. Section 2. This ordinance shall become effective from and after its publication. PASSED AND ADOPTED BY THE COMMON COUNCIL OF THE CITY OF ROCHESTER, MINNESOTA, THIS __________ DAY OF _______________, 2021. ___________________________________ PRESIDENT OF SAID COMMON COUNCIL ATTEST: __________________________ CITY CLERK APPROVED THIS _____ DAY OF ______________________, 2021. ___________________________________ MAYOR OF SAID CITY (Seal of the City of Rochester, Minnesota) Ord15\\7-16.ShortTermRental.Final.docx