HomeMy WebLinkAboutOrdinance 6427OF FAYE rre
J V
l
4 m
µ.
9 Rk AN5 pS
113 West Mountain Street
Fayetteville, AR 72701
(479) 575-8323
Ordinance: 6427
File Number: 2020-1012
SHORT-TERM RENTAL REGULATIONS:
AN ORDINANCE TO AMEND §118.01 APPLICABILITY OF CHAPTER 118 BUSINESS
REGISTRY AND LICENSES, CHAPTER 151 DEFINITIONS, CHAPTER 161 ZONING
REGULATIONS, § 162.01 ESTABLISHMENT/LISTING OF CHAPTER 162 USE UNITS,
AND CHAPTER 163 USE CONDITIONS OF THE UNIFIED DEVELOPMENT CODE TO
CLASSIFY THE TYPES OF SHORT-TERM RENTALS AND CREATE REGULATIONS TO
PERMIT AND INSPECT THE RENTALS
WHEREAS, in July of 2019 the City Council adopted Resolution 172-19 requesting the study and
development of an ordinance for short-term rentals for their consideration; and
WHEREAS, it is estimated that there are approximately 500-600 short-term rental units in
Fayetteville; and
WHEREAS, the Fayetteville City Code does not have specific rules for short-term rentals and they
have been treated as hotels/motels in the zoning code which prevents them from legally operating in any
residential single-family zoning district.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
FAYETTEVILLE, ARKANSAS:
Section 1: That the City Council of the City of Fayetteville, Arkansas hereby amends § 118.01
Applicability of Chapter 118 Business Registry and Licenses, Chapter 151 Definitions, Chapter
161 Zoning Regulations, § 162.01 Establishment/Listing of Chapter 162 Use Units, and Chapter
163 Use Conditions of the Unified Development Code by adopting the changes as shown on
Exhibits A through E attached hereto and made a part hereof classifying the types of short term rentals
Page 1 Printed on 4128121
Ordinance: 6427
File Number: 2020-1012
and creating regulations to permit and inspect short term rentals in the City of Fayetteville.
Section 2 : Sunset Clause. That the City Council of the City of Fayetteville, Arkansas hereby
determines that this ordinance and all amendments to Code sections ordained or enacted by this
ordinance shall automatically sunset, be repealed, terminated, and become void twenty (20) months
after the passage and approval of this ordinance, unless prior to that date, the City Council amends this
ordinance to repeal this sunset, repeal and termination section.
PASSED and APPROVED on 4/20/2021
������rrrrrrri
Attest: ♦♦�� ARK
�♦♦ C:' • \T Y • •9s' �i
FAYETTEVILLE
Kara Paxton, City Clerk Treasure'rfzi•. 9 g .'
Page 2 Printed on 4128121
EXHIBIT A
CHAPTER 118: - BUSINESS REGISTRY AND LICENSES
118.01 - Applicability
(A) General Businesses.
(1) All businesses, institutions, corporations, LLCs, LLPs, partnerships, non-profit associations or
corporations, sole proprietorships or other non -governmental entities with a physical address or
which operates either a legally permitted home occupation or a short-term rental within the
Fayetteville city limits shall be required to file for the City of Fayetteville Business Registry and
License. A covered business or entity with multiple physical addresses in Fayetteville must
obtain a separate business license for each such business address.
(2) In addition, any person or non -governmental entity who has or should have a sales tax permit
and operates out of a physical address within Fayetteville shall be required to file for the City
of Fayetteville Business Registry and License.
(3) In addition, any person or non -governmental entity who is engaged in any trade or occupation
which requires federal or state licenses and who operates out of a physical address within
Fayetteville shall be required to file for the City of Fayetteville Business Registry and License.
(B) Religious Entities. Churches and other religious institutions are exempt from this chapter unless they
are performing functions like daycare that must be licensed by the state or that generate revenue
upon which state sales or use taxes must be paid. The city business license shall not be required
for the religious entity but only for those functions that require a state license or upon which state
sales or use taxes must be paid.
(C) Minors Exempt. No individual under eighteen (18) years of age shall be required to register or obtain
a business license. Minors are prohibited from leasing, advertising, managing or any other activity
involved in STRs unless they are an emancipated minor.
(D) Individual Landlords Renting Less Than Three (3) Dwelling Units Exempt. An individual landlord,
not operating as a corporation, LLC, LLP, or other business entity, who rents out less than three (3)
dwelling units, and no commercial, industrial, or institutional unit, site or building shall be exempt
from this chapter. However, a landlord that operates a short-term residential rental shall not be
exempt and must apply for and obtain a business license for each individual short-term rental.
(E) Short-term rentals. A residential dwelling unit, portion of a dwelling unit, or bedroom within a
residential dwelling unit, leased and/or rented to a guest(s), for a period of less than thirty
consecutive (30) days.
(1) Short-term rental, Type 1. A short-term rental where the principal use of the property remains
as a full-time residence. The occupants or owner rent their primary residence as a short-term
rental. A copy of the Homestead Tax Credit or long-term lease agreement for the subject
property is required to be classified as a Type 1 rental. The occupant or owner must occupy the
residence for 9 months of the year. Accessory dwelling units (ADUs) as defined in Unified
Development Code Chapter 151 shall be considered a Type 1 short-term rental.
(2) Short-term rental, Type 2. A short-term rental that is not occupied by a permanent resident. The
owner lists this property full-time as a short-term rental and has no intention of having permanent
residents living in the property. A conditional use permit is required for a Type 2 short-term rental
prior to the City issuing a business license, except as defined in §118.01(E)(4).
(3) License Required: No dwelling unit in the City shall be used as a short-term rental unless:
(a) The owner of the dwelling unit or operator of the short-term rental possess a valid and
current business license for the dwelling unit, and fully complies with all legal requirements
and duties imposed herein with respect to each and every short-term rental; and
(b) The owner has designated an agent. where said agent fully complies with all legal
requirements and duties imposed herein with respect to every short-term rental. The owner
may serve as their own agent.
(c) The owner of the dwelling unit or operator of the short-term rental provides proof of a valid
and current homeowners insurance rider policy which fully covers each unit when operated
as short term rental unit
(4) 6 Month Start-up Period. After the enactment of the short-term rental ordinance. short term rental
operators shall have 6 months to obtain a business license and be considered in compliance.
After the 6-month start-up period, all short term rental units must have a business license to be
considered in compliance.
(a) Persons seeking to operate a short-term rental within six months of the enactment of this
code section shall be granted a conditional use permit for such short-term rental without
having to pay a fee or have a hearing before the Planning Commission. The conditions
for such permit shall be full compliance with all terms and requirements of Chapter 118
Business Registry and Licenses, this section, and all other requirements of the
Fayetteville Code including timely and full payment of all Hotel, Motel, and Restaurant
taxes to the City. Revocation of the business license shall also revoke the conditional use
permit granted by this subsection.
(b) Persons seeking to operate a Type 2 Short-term rental who have failed to obtain such
conditional use permit and business license prior to the end of the six month start-up
period shall be required to follow normal procedures and apply to the Planning
Commission to request a conditional use permit which will be issued or denied pursuant
to the Planning Commission's decision pursuant to Chapter 163.18 (2) (a).
(c) Type 1 and 2 short-term rentals seeking a business license or permit under the 6-month
start-up period which are currently operating in 2, 3 and 4 unit buildings in which more
than 1 unit is being used as a short-term rental may obtain a business license for all
currently operating short-term rentals.
(5) A separate business license shall be required for each dwelling unit used as a short-term rental.
(6) Any change in ownership requires a new or amended business license.
(7) If any required contact information changes for the associated business license, the person to
whom the license was issued shall immediately notify the Development Services Department in
writing.
(8) License Application. The application for a business license shall include at minimum, the
following information from applicants:
(a) The property owner's information including legal name, mailing address, immediate contact
phone number, and immediate contact E-mail address.
(b) Information for the dwelling unit subject to the application, inclusive of the physical street
address assigned by the City.
(c) The type and total number of dwelling units located on the lot of record containing the
dwelling unit subject to the application.
(d) If the owner is not their own agent, the owner designated agent's information including
legal name, mailing address, immediate contact phone number and immediate contact E-
mail address.
(e) Documentation of approval of a life safety and egress inspection by the City Building Safety
Division for the dwelling unit subject to the application.
(f) Proof of application for remittance of Hotel, Motel and Restaurant tax to the City of
Fayetteville. and verification that all sales, use, and Hotel, Motel and Restaurant taxes are
current.
(g) Any additional data as deemed necessary or desirable for permit approval by the
Development Services Director.
(10) License Renewals. Business licenses for short-term rentals shall be renewed in accordance
with Chapter 118 of the Business Regulations (Business Registry and Licenses).
(11) Legal Duties of License Holders. An owner possessing a short-term rental license shall comply
at all times with the following requirements:
(a) Occupancy. Short-term rentals shall be subject to, and may not exceed, the occupancy
limits approved with the business license
(b) Advertisements. A short-term rental shall not be advertised if it violates occupancy, density,
safety, and any of the other provisions of the Fayetteville Code. No short-term rental unit
shall be advertised prior to having obtained a business license and the business license
number shall be included in the advertisement listing.
(c) Information and Posting. Business licensees shall provide to guests and post
conspicuously in the common area of the short-term rental unit the City phone number to
report a safety complaint.
(12) Owner or Agent Accessibility. The property owner shall ensure that they or a designated agent
are available at all times during guest occupancy, including nights and weekends, in order to
facilitate compliance with this section. For the purposes of these regulations, 'availability' means
that the owner or agent is accessible by telephone, and, able to be physically present at the
short-term rental within three (3) hours of being contacted.
(13) Guest records. The owner shall maintain summary guest registration records, which shall
contain the actual dates of occupancy, total number of guests per party per stay, and the rate(s)
charged, but shall not contain any personally identifiable information about guests. Such records
shall be maintained for three years and shall be provided to the City upon request.
(14) Health and safety. The owner shall ensure that each dwelling unit governed by this section
complies with the applicable provisions of the Unified Development Code Chapter 173: Building
Regulations.
(15) Criminal activity. The owner shall timely report any known or reasonably suspected criminal
activity by a guest to the Fayetteville Police Department within twelve (12) hours maximum.
(16) Taxes and fees. Except for those instances in which a hosting platform bears the responsibility
for collecting and remitting taxes and fees applicable to short-term rentals, the property owner
shall timely remit in full Fayetteville Hotel, Motel and Restaurant tax and other applicable local,
state, and federal taxes and City fees owed in connection with any short-term rental. The failure
of a hosting platform to collect and remit taxes and fees shall not relieve an owner of the
obligation to pay taxes and fees owed pursuant to this section.
(17) Authorization to Occupy, Use, and Operate. Authorization to operate a short-term rental may be
granted by the Development Services Director through the issuance of a City of Fayetteville
Business Registry and License (business license).
(18) Density For Type 2 Short-term Rentals. A city-wide density cap of two percent (2%) of all
dwelling units in the Fayetteville city limits may be utilized as Type 2 rentals. Total dwelling units
are determined from current United States Census Bureau and/or American Community Survey
numbers, whichever number is higher. A conditional use permit may not permit:
(a) More Type 2 short-term rentals than what is allowed by the city-wide density cap.
(b) More than ten (10) percent or a single unit whichever is greater: of total dwelling units as
Type 2 rentals within a multi -family dwelling complex.
(c) Individual 2, 3 and 4-family buildings that are owned by the same person or entity and are
not a part of a multi -family complex shall have no more than one (1) Type 2 short term
rental unit per building complex.
(d) Density of Type 2 short-term rentals shall not be limited in commercial and mixed -use
zoning districts where hotel/motels are permitted by right,
(19) Suspension and Revocation. If the Development Services Director has reason to believe that
any of the grounds specified in §118.03(A) of the Fayetteville Code exist, or that any rental unit
was rented for less than one full night, or to more than one part of guests for the same period of
time, or otherwise failed to comply with all terms and conditions of this section, the Development
Services Director may suspend or revoke the short-term rental's business license pursuant to
the procedures detailed in §118.03 and in §118.04 of the Fayetteville Code.
(20) Short-term rentals must comply with all applicable codes under Unified Development Code
Chapter 163.18 and successfully obtain a business license prior to operation.
EXHIBIT B
CHAPTER 151: DEFINITIONS
Agent, Owner -Designated. A person designated by the owner of a property, where designee has a physical
address within the City of Fayetteville, is accessible 24-hours a day, and otherwise in compliance with the
UDC requirements for short-term rentals. The owner may serve as their own agent.
Bedroom. As defined by the International Building Code and International Fire Code as adopted by the
State of Arkansas and the City of Fayetteville and listed on the City of Fayetteville STIR website.
Booking transaction. Any contractual agreement between a guest and an owner relative to a short-term
rental.
Dwelling unit (zoning). One (1) room, or rooms connected together, constituting a separate, independent
housekeeping establishment for owner occupancy, or rental or lease on a monthly, or longer basis, and
physically separated from any other rooms or dwelling units which may be in the same structure, and
containing independent cooking and sleeping facilities.
Guest, Short-term rental. Any person who occupies a short-term rental, for a period of less than 30
consecutive days. pursuant to a short-term rental lease term and/or other like agreement, for the purposes
of temporary lodging.
Host, Short-term rental. The owner(s) of a short-term rental who has authority to offer the dwelling unit,
portion thereof, or a room within the dwelling unit as a legal short-term rental.
Owner. A person who owns at least a 50 percent interest in a dwelling unit used for short-term rentals.
Permanent residential dwelling. A structure that has been legally permitted or is a legal, non -conforming
structure allowed for permanent occupancy as a residential dwelling.
Hosting Platform. A person or entity that participates in the short-term rental business by providing and
collecting or receiving a fee(s) for facilitating booking transactions through which a short-term rental host
may offer a short-term rental to a short-term rental guest. Hosting platforms typically, though not always,
facilitate booking transactions through an on line platform that allows a short-term rental host to advertise
the short-term rental through a website provided by the hosting platform and the hosting platform conducts
a transaction by which potential short-term rental guest reserve a guestroom(s) and arrange payment,
whether the short-term rental guest pays rent directly to the short-term rental host or to the hosting platform.
Short-term rental. A residential dwelling unit, portion of a dwelling unit, or bedroom within a residential
dwelling unit, leased and/or rented to a guest(s), for a period of less than thirty consecutive (30) days.
Short-term rental, Type 1. A short-term rental where the principal use of the property remains as a full-time
residence. The occupants or owner rent their primary residence as a short-term rental. A copy of the
Homestead Tax Credit or long-term lease agreement for the subject property is required to be classified as
a Type 1 rental. The occupant or owner must occupy the residence for 9 months of the year. Accessory
dwelling units (ADUs) as defined in Unified Development Code Chapter 151 shall be considered a Type 1
short-term rental.
Short-term rental, Type 2. A short-term rental that is not occupied by a permanent resident. The owner lists
this property full-time as a short-term rental and has no intention of having permanent residents living in the
property. A conditional use permit is required for a Type 2 short-term rental prior to the City issuing a
business license.
EXHIBIT C
CHAPTER 161: - ZONING REGULATIONS
161.02 - Zoning Compliance And Business License
(A) Required. It shall be unlawful to use or occupy or permit the use or occupancy of any building or
premises, or both, or part thereof hereafter created, erected, changed, converted, or wholly or partly
altered, or enlarged in its use or structure until a business license has been issued by the Zoning and
Development Administrator stating that the proposed use of the building or land conforms to the
requirements of this chapter.
(B) Conforming Uses. Uses permitted within the underlying zoning district shall be eligible for a
business license, subject to §118 of the Fayetteville Code.
(C) Nonconforming Uses.
(1) Except for short-term rental units subject to chapter 163 of the UDC, uses within the following
use unit categories established prior to September 7, 2010 and operating in a zoning district
that does not currently allow the use, are for the purposes of zoning compliance determined to
be an existing nonconforming use, may continue to operate and are eligible to obtain a city
business license. The exemption shall not be construed as relieving the owner or operator of
such business from the regulations of the business license ordinance, including grounds for
suspension and revocation, or from any other applicable federal, state, or city regulations.
Use Units
3 Public protection facilities
4 Cultural and recreational facilities
S Government facilities
6 Agricultural
7 Animal husbandry
12a Limited business
13 Eating places
15 Neighborhood shopping goods
24 Home occupation
25 Offices, studios, and related services
(2) Except for short-term rental units subject to chapter 163 of the UDC, uses within the following
use unit categories established prior to July 15, 2003 and operating in a zoning district that does
not currently allow the use, are for the purposes of zoning compliance determined to be an
existing nonconforming use, may continue to operate and are eligible to obtain a city business
license. The exemption shall not be construed as relieving the owner or operator of such
business from the regulations of the business license ordinance, including grounds for
suspension and revocation, or from any other applicable federal, state, or city regulations.
Use Units
2 City-wide uses by conditional use permit
14 Hotel, motel and amusement facilities
16 Shopping goods
17 Transportation trades and services
18 Gasoline service stations & drive in/drive
through restaurants
19 Commercial recreation, small sites
20 Commercial recreation, large sites
21 Warehousing and wholesale
22 Manufacturing
23 Heavy industrial
Wholesale bulk petroleum storage
27 facilities with
underground tanks
28 Center for collecting recyclable materials
29 Dance halls
30 Extractive uses
Facilities emitting odors/handling
31
explosives
32
Sexually oriented businesses
33
Adult live entertainment club or bar
34
Liquor stores
35
Outdoor music establishments
36
Wireless communications facilities
38
Mini -storage units
39
Auto salvage and junk yards
40
Sidewalk cafes
42
Clean technologies
43
Animal boarding and training
161.03 - District R-A, Residential -Agricultural
(B) Uses.
(1)
Permitted Uses.
Unit 1
City-wide uses by right
Unit 3
Public protection and utility facilities
Unit 6
Agriculture
Unit 7
Animal husbandry
Unit 8
Single-family dwellings
Unit 9 Two-family dwellings
Unit 37 Manufactured homes
Unit 41 Accessory dwellings
Unit 43 Animal boarding and training
Unit 46 Short-term rentals
161.04 - District RSF-.5, Residential Single -Family - One Half (Y2) Unit Per Acre
(B) Uses.
(1) Permitted Uses.
Unit 1 City-wide uses by right
Unit 8 Single-family dwellings
Unit 41 Accessory dwellings
Unit 46 Short-term rentals
161.05 - District RSF-1, Residential Single -Family - One (1) Unit Per Acre
(B) Uses.
(C) Permitted Uses.
Unit 1 City-wide uses by right
Unit 8 Single-family dwellings
Unit 41 Accessory dwellings
Unit 46 Short-term rentals
161.06 - District RSF-2, Residential Single -Family - Two (2) Units Per Acre
(B) Uses.
(C) Permitted Uses.
Unit 1 City-wide uses by right
Unit 8 Single-family dwellings
Unit 41 Accessory dwellings
Unit 46 Short-term rentals
161.07 - District RSF-4, Residential Single -Family - Four (4) Units Per Acre
(B) Uses.
(1) Permitted Uses.
Unit 1 City-wide uses by right
Unit 8 Single-family dwellings
Unit 41 Accessory dwellings
Unit 46 Short-term rentals
161.08 - District RSF-7, Residential Single -Family - Seven (7) Units Per Acre
(B) Uses.
(1) Permitted Uses.
Unit 1 City-wide uses by right
Unit 8 Single-family dwellings
Unit 41 Accessory dwellings
Unit 46 Short-term rentals
161.09 - District RSF-8, Residential Single -Family - Eight (8) Units Per Acre
(B) Uses.
(1) Permitted Uses.
Unit 1 City-wide uses by right
Unit 8 Single-family dwellings
Unit 41 Accessory dwellings
Unit 46 Short-term rentals
161.10 - District RSF-18, Residential Single -Family - Eighteen (18) Units Per Acre
(B) Uses.
(1) Permitted Uses.
Unit 1 City-wide uses by right
Unit 8 Single-family dwellings
Unit 41 Accessory dwellings
Unit 46 Short-term rentals
161.11 - District RI-12, Residential Intermediate, Twelve (12) Units Per Acre
(B) Uses.
(1) Permitted Uses.
Unit 1 City-wide uses by right
Unit 8 Single-family dwellings
Unit 9 Two (2) family dwellings
Unit 10 Three (3) and four (4) family dwellings
Unit 41 Accessory dwellings
Unit 44 Cluster Housing Development
Unit 46 Short-term rentals
161.12 - District RI-U, Residential Intermediate - Urban
(B) Uses.
(1) Permitted Uses.
Unit 1 City-wide uses by right
Unit 8 Single-family dwellings
Unit 9 Two (2) family dwellings
Unit 10 Three (3) and four (4) family dwellings
Unit 41 Accessory dwellings
Unit 44 Cluster housing development
Unit 46 Short-term rentals
161.13 - District RMF-6, Residential Multi -Family - Six (6) Units Per Acre
(B) Uses.
(1) Permitted Uses.
Unit 1 City-wide uses by right
Unit 8 Single-family dwellings
Unit 9 Two-family dwellings
Unit 10 Three (3) and four (4) family dwellings
Unit 26 Multi -family dwellings
Unit 41 Accessory dwellings
Unit 44 Cluster Housing Development
Unit 46 Short-term rental
161.14 - District RMF-12, Residential Multi -Family - Twelve (12) Units Per Acre
(B) Uses.
(1) Permitted Uses.
Unit 1 City-wide uses by right
Unit 8 Single-family dwellings
Unit 9 Two-family dwellings
Unit 10 Three (3) and four (4) family dwellings
Unit 26 Multi -family dwellings
Unit 41 Accessory dwellings
Unit 44 Cluster Housing Development
Unit 46 Short-term rental
161.15 - District RMF-18, Residential Multi -Family - Eighteen (18) Units Per Acre
(B) Uses.
(1) Permitted Uses.
Unit 1 City-wide uses by right
Unit 8 Single-family dwellings
Unit 9 Two-family dwellings
Unit 10 Three (3) and four (4) family dwellings
Unit 26 Multi -family dwellings
Unit 41 Accessory dwellings
Unit 44 Cluster Housing Development
Unit 46 Short-term rental
161.16 - District RMF-24, Residential Multi -Family - Twenty -Four (24) Units Per Acre
(B) Uses.
(1) Permitted Uses.
Unit 1 City-wide uses by right
Unit 8 Single-family dwellings
Unit 9 Two-family dwellings
Unit 10 Three (3) and four (4) family dwellings
Unit 26 Multi -family dwellings
Unit 41 Accessory dwellings
Unit 44 Cluster Housing Development
Unit 46 Short-term rental
161.17 - District RMF-40, Residential Multi -Family - Forty (40) Units Per Acre
(B) Uses.
(1) Permitted Uses.
Unit 1 City-wide uses by right
Unit 8 Single-family dwellings
Unit 9 Two-family dwellings
Unit 10 Three (3) and four (4) family dwellings
Unit 26 Multi -family dwellings
Unit 41 Accessory dwellings
Unit 44 Cluster Housing Development
Unit 46 Short-term rental
161.18 - NS-L, Neighborhood Services - Limited
(B) Uses.
(1) Permitted Uses.
Unit 1 City-wide uses by right
Unit 8 Single-family dwellings
Unit 9 Two (2) family dwellings
Unit 10 Three (3) and four (4) family
dwellings
Unit
Limited Business
12a I
Unit 24 Home occupations
Unit 40 Sidewalk cafes
Unit 41
Accessory dwelling units
Unit 44
Cluster housing development
Unit 46
Short-term rental
161.19 - NS-G, Neighborhood Services - General
(B) Uses.
(1) Permitted Uses.
Unit 1 City-wide uses by right
Unit 8 Single-family dwellings
Unit 9 Two-family dwellings
Unit 10 Three (3) and four (4) family
dwellings
Unit 12b General business
Unit 24 Home occupations
Unit 40 Sidewalk cafes
Unit 41
Accessory dwelling units
Unit 44
Cluster housing development
Unit 46
Short-term rental
161.20 - District R-O, Residential Office
(B) Uses.
(1) Permitted uses.
Unit 1 City-wide uses by right
Unit 5 Government facilities
Unit 8 Single-family dwellings
Unit 9 Two-family dwellings
Unit 12a Limited business
Unit 25 Offices, studios, and related services
Unit 41 Accessory dwellings
Unit 44 Cluster Housing Development
Unit 46 Short-term rental
161.22 - Community Services
(B) Uses.
(1) Permitted Uses.
Unit 1 City-wide uses by right
Unit 4 Cultural and recreational facilities
Unit 5 Government facilities
Unit 8 Single-family dwellings
Unit 9 Two-family dwellings
Unit 10 Three (3) and four (4) family dwellings
Unit 13 Eating places
Unit 15 Neighborhood Shopping goods
Gasoline service stations and drive -
Unit 18
in/drive through restaurants
Unit 24 Home occupations
Unit 25 Offices, studios and related services
Unit 26 Multi -family dwellings
Unit 40 Sidewalk Cafes
Unit 41 Accessory dwellings
Unit 44 Cluster Housing Development
Unit 45 Small scale production
Unit 46 Short-term rental
161.24 - Urban Thoroughfare
(B) Uses .
(1) Permitted Uses.
Unit 1 City-wide uses by right
Unit 4 Cultural and recreational facilities
Unit 5 Government facilities
Unit 8 Single-family dwellings
Unit 9 Two (2) family dwellings
Unit 10 Three (3) and four (4) family
dwellings
Unit 13 Eating places
Unit 14 Hotel, motel and amusement
services
Unit 16 Shopping goods
Unit 17 Transportation trades and services
Gasoline service stations and drive -
Unit 18
in/drive through restaurants
Unit 19 Commercial recreation, small sites
Unit 24 Home occupations
Unit 25 Offices, studios, and related
services
Unit 26 Multi -family dwellings
Unit 34 Liquor store
Unit 40 Sidewalk cafes
Unit 41 Accessory Dwellings
Unit 44 Cluster Housing Development
Unit 45 Small scale production
Unit 46 Short-term rental
161.25 - District C-3, Central Commercial
(B) Uses.
(1) Permitted Uses.
Unit 1 City-wide uses by right
Unit 4 Cultural and recreational facilities
Unit 5 Government facilities
Unit 13 Eating places
Unit 14 Hotel, motel, and amusement
facilities
Unit 16 Shopping goods
Gasoline service stations & drive-in
Unit 18
restaurants
Unit 19 Commercial recreation, small sites
Unit 25 Offices, studios, and related services
Unit 26 Multi -family dwellings
Unit 34 Liquor stores
Unit 40 Sidewalk Cafes
Unit 44 Cluster Housing Development
Unit 45 Small scale production
Unit 46 Short-term rental
161.26 - Downtown Core
(B) Uses.
(1) Permitted Uses.
Unit 1 City-wide uses by right
Unit 4 Cultural and recreational facilities
Unit 5
Government facilities
Unit 8
Single-family dwellings
Unit 9
Two-family dwellings
i
Three (3) and four (4) family
Unit 10
dwellings
Unit 13
Eating places
Hotel, motel, and amusement
Unit 14
facilities j
Unit 16
Shopping goods i
Unit 17
Transportation trades and services
Unit 19
Commercial recreation, small sites
Unit 24
Home occupations
Offices, studios, and related
Unit 25
services
Unit 26
Multi -family dwellings
Unit 34
Liquor stores
Unit 40
Sidewalk Cafes
Unit 41
Accessory dwellings
Unit 44
Cluster Housing Development
Unit 45
Small scale production
Unit 46
Short-term rental
161.27 - Main Street/Center
(B) Uses.
(1) Permitted uses.
Unit 1 City-wide uses by right
Unit 4 Cultural and recreational facilities
Unit 5 Government facilities
Unit 8 Single-family dwellings
Unit 9 Two-family dwellings
Unit 10 Three (3) and four (4) family
dwellings
Unit 13 Eating places
Unit 14 Hotel, motel, and amusement
facilities
Unit 16 Shopping goods
Unit 17 Transportation trades and services
Unit 19 Commercial recreation, small sites
Unit 24 Home occupations
Unit 25 Offices, studios, and related
services
Unit 26 Multi -family dwellings
Unit 34 Liquor stores
Unit 40 Sidewalk Cafes
Unit 41 Accessory dwellings
Unit 44 Cluster Housing Development
Unit 45 Small scale production
Unit 46 Short-term rental
161.28 - Downtown General
(B) Uses.
(1) Permitted Uses.
Unit 1 City-wide uses by right
Unit 4 Cultural and recreational facilities
Unit 5 Government facilities
Unit 8 Single-family dwellings
Unit 9 Two-family dwellings
Unit 10 Three (3) and four (4) family dwellings
Unit 13
Eating places
Unit 15
Neighborhood shopping goods
Unit 24
Home occupations
Unit 25
Offices, studios, and related services
Unit 26
Multi -family dwellings
Unit 40
Sidewalk Cafes
Unit 41
Accessory dwellings
Unit 44 Cluster Housing Development
Unit 45 Small scale production
Unit 46 Short-term rental
161.29 - Neighborhood Conservation
(B) Uses.
(1) Permitted Uses.
Unit 1 City-wide uses by right
Unit 8 Single-family dwellings
Unit 41 Accessory dwellings
Unit 46 Short-term rental
EXHIBIT D
CHAPTER 162: - USE UNITS
162.01 - Establishment/Listing
The various use units referred to in the zoning district provisions are herein listed in numerical order.
Within the use units, the permitted uses are ordinarily listed in alphabetical order. In these use units
where there is a preliminary descriptive statement (which may mention specific uses) in addition to the
detailed list of uses, the detailed list shall govern.
Unit 1 City-wide uses by right
Unit 2 City-wide uses by conditional use permit
Unit 3 Public protection and utility facilities
Unit 4 Cultural and recreational facilities
Unit 5 Government facilities
Unit 6 Agriculture
Unit 7 Animal husbandry
Unit 8 Single-family dwellings
Unit 9 Two-family dwellings
Unit 10 Three (3) and four (4) family dwellings
Unit 11 Manufactured home park
Unit 12a Limited business
Unit 12b General business
Unit 13 Eating places
Unit 14 Hotel, motel and amusement facilities
Unit 15 Neighborhood shopping goods
Unit 16 Shopping goods
Unit 17
Transportation Trades and services
Gasoline service stations and drive-in/drive
Unit 18
through restaurants
Unit 19
Commercial recreation, small sites
Unit 20
Commercial recreation, large sites
Unit 21
Warehousing and wholesale
Unit 22
Manufacturing
Unit 23
Heavy industrial
Unit 24
Home occupation
Unit 25
Offices, studios, and related services
Unit 26
Multi -family dwellings
Wholesale bulk petroleum storage facilities
Unit 27
with underground storage tanks
Unit 28
Center for collecting recyclable materials
Unit 29
Dance halls
Unit 30
Extractive uses
Facilities emitting odors & facilities
Unit 31
handling explosives
Unit 32
Sexually oriented business
Unit 33
Adult live entertainment club or bar
Unit 34
Liquor stores
Unit 35
Outdoor music establishments
Unit 36 Wireless communications facilities
Unit 37 Manufactured homes
Unit 38 Mini -storage units
Unit 39 Auto salvage and junk yards
Unit 40 Sidewalk Cafes
Unit 41 Accessory dwellings
Unit 42 Clean technologies
Unit 43 Animal boarding and training
Unit 44 Cluster Housing Development
Unit 45 Small scale production
Unit 46 Short-term rental
(0) Unit 14. Hotel, Motel, and Amusement Facilities.
(1) Description. Unit 14 consists of hotels, motels, and certain types of amusement facilities.
(2) Included Uses.
Hotel
Membership lodge
Motel
Motion picture theater
Night club, not providing dancing or outdoor music
Tavern, not providing dancing or outdoor music
Use Unit46, Short-term rental is also permitted within Use
Unit 14
(UU) Unit 46. Short-term rental.
(1) Description. Unit 46 is provided to allow a permanent residential dwelling unit, portion of a
residential dwelling unit, or bedroom within a residential dwelling unit, to be leased and/or
rented to a guest(s) for a period of less than thirty (30) consecutive days.
(2) Included Uses.
Short-term rentals
CHAPTER 163: - USE CONDITIONS
163.01 - Listing
The use conditions set forth in this chapter are the following:
Bed and breakfast facilities
Carnival, circus, amusement park or similar temporary
open-air enterprise
Child care, nursery school
Dance halls
Facilities emitting odors and facilities handling explosives
Home occupations
Manufactured homes
Outdoor music establishments
Sexually oriented businesses
Short-term rentals
Tandem lot development
Wireless communications facilities
163.18 — Short-term rentals
(A) General Standards.
(1) Residential Zoning Districts. Short-term rentals may be permitted in all zoning districts where
residential uses are allowed by right.
(2) Commercial and Mixed Use Zoning Districts. Short-term rentals may be permitted in all zoning
districts where hotel/motel uses are permitted by right and shall not count towards the Type 2
short-term rental density cap in these districts except in multi -family buildings as specified in
Chapter 118 of the Fayetteville City Code.
(3) Occupancy. Maximum of two (2) people per bedroom, plus two (2), for the entire unit when
operated as a short-term rental.
(4) Parking. Parking is limited to the maximum number of vehicles as allowed by the underlying
zoning district for the residential building on the property.
(5) Special events are not permitted in a short-term rental. Example of special events include, but
are not limited to, weddings, receptions, anniversaries, private parties, fundraisers and
business seminars.
(6) Short-term rental units are allowed in any structure established as a permanent residential
dwelling including an accessory dwelling unit. No recreational vehicle, trailer, other vehicle or
structure not classified as a permanent residential dwelling may be used as a short-term
rental.
(7) 6 Month Start-up Period. After the enactment of the short-term rental ordinance, short-term
rental operators shall have 6 months to obtain a business license and be considered in
compliance. After the 6-month start-up period, all short-term rental units must have a business
license to be considered in compliance.
(a) Persons seeking to operate a short-term rental within six months of the enactment of
this code section shall be granted a conditional use permit for such short-term rental
without having to pay a fee or have a hearing before the Planning Commission. The
conditions for such permit shall be full compliance with all terms and requirements of
Chapter 118 Business Registry and Licenses, this section, and all other requirements of
the Fayetteville Code including timely and full payment of all Hotel, Motel, and
Restaurant taxes to the City. Revocation of the business license shall also revoke the
conditional use permit granted by this subsection.
(b) Persons seeking to operate a Type 2 Short-term rental who have failed to obtain such
conditional use permit and business license prior to the end of the six month start-up
period shall be required to follow normal procedures and apply to the Planning
Commission to request a conditional use permit which will be issued or denied pursuant
to the Planning Commission's decision pursuant to Chapter 163.18 (2) (a).
(c) Type 1 and 2 short-term rentals seeking a business license or permit under the 6-month
start-up period which are currently operating in 2, 3 and 4 unit buildings in which more
than 1 unit is being used as a short-term rental may obtain a business license for all
currently operating short-term rentals.
(8) Exceptions. Exceptions to the short-term rental standards, except proposals that would
exceed the city-wide density maximum, may be granted by the Planning Commission as a
conditional use permit.
(9) Short-term rentals must comply with all applicable codes under City Code Section 118.01 and
successfully obtain a business license prior to operation.
46 City of Fayetteville, Arkansas 113West Mountain Street
f A Fayetteville, AR 72701
(479) 575-8323
s
i
Text File
— File Number: 2020-1012
Agenda Date: 4/20/2021 Version: 1 Status: Passed
In Control: City Council Meeting File Type: Ordinance
Agenda Number: 6.1
SHORT-TERM RENTAL REGULATIONS:
AN ORDINANCE TO AMEND §118.01 APPLICABILITY OF CHAPTER 118 BUSINESS REGISTRY
AND LICENSES, CHAPTER 151 DEFINITIONS, CHAPTER 161 ZONING REGULATIONS, §
162.01 ESTABLISHMENTILISTING OF CHAPTER 162 USE UNITS, AND CHAPTER 163 USE
CONDITIONS OF THE UNIFIED DEVELOPMENT CODE TO CLASSIFY THE TYPES OF
SHORT-TERM RENTALS AND CREATE REGULATIONS TO PERMIT AND INSPECT THE
RENTALS
WHEREAS, in July of2019 the City Council adopted Resolution 172-19 requesting the study and
development of an ordinance for short-term rentals for their consideration; and
WHEREAS, it is estimated that there are approximately 500-600 short-term rental units in Fayetteville; and
WHEREAS, the Fayetteville City Code does not have specific rules for short-term rentals and they have been
treated as hotels/motels in the zoning code which prevents them from legally operating in any residential
single-family zoning district.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
FAYETTEVILLE, ARKANSAS:
Section 1: That the City Council of the City of Fayetteville, Arkansas hereby amends § 118.01 Applicability of
Chapter 118 Business Registry and Licenses, Chapter 151 Definitions, Chapter 161 Zoning
Regulations, § 162.01 Establishment/Listing of Chapter 162 Use Units, and Chapter 163 Use Conditions
of the Unified Development Code by adopting the changes as shown on Exhibit 1 attached hereto and made a
part hereof classifying the types of short term rentals and creating regulations to permit and inspect short term
rentals in the City of Fayetteville.
Section 2 : Sunset Clause. That the City Council of the City of Fayetteville, Arkansas hereby determines that
this ordinance and all amendments to Code sections ordained or enacted by this ordinance shall automatically
sunset, be repealed, terminated, and become void twenty (20) months after the passage and approval of this
ordinance, unless prior to that date, the City Council amends this ordinance to repeal this sunset, repeal and
termination section.
OW o/Fayetteville, Arkansas Page I Printed on 4/26/2021
Mary McGetrick
Submitted By
City of Fayetteville Staff Review Form
2020-1012
Legistar File ID
12/1/2020
City Council Meeting Date - Agenda Item Only
N/A for Non -Agenda Item
11/12/2020 DEVELOPMENT SERVICES (620)
Submitted Date Division / Department
Action Recommendation:
STAFF RECOMMENDS APPROVAL OF A SHORT-TERM RENTALS ORDINANCE CLASSIFYING THE TYPES OF SHORT-TERM
RENTALS AND CREATING REGULATIONS TO PERMIT AND INSPECT THE RENTALS.
Account Number
Project Number
Budgeted Item? No
Does item have a cost? No
Budget Adjustment Attached? No
Purchase Order Number:
Change Order Number:
Original Contract Number:
Budget Impact:
Fund
Project Title
Current Budget
Funds Obligated
Current Balance
Item Cost
Budget Adjustment
Remaining Budget
Previous Ordinance or Resolution #
Approval Date:
V20180321
MM CITY OF
. T FAYETTEVILLE
ARKANSAS
TO:
FROM
MEETING DATE
City of Fayetteville City Council
CITY COUNCIL MEMO
Mary McGetrick, Long Range Planning Manger
January 13th, 2021
SUBJECT: ADM 20-7000 Administrative Item (Amend Fayetteville Code of
Ordinances: Short-term Residential Rentals): Submitted by the
Development Services Department for revisions to the Fayetteville Code of
Ordinances for short-term residential rentals.
RECOMMENDATION:
Staff recommends forwarding the proposed code change to the City Council with a
recommendation for approval.
RECOMMENDED MOTION:
"I move to approve ADM 20-7000 as recommend by City staff."
BACKGROUND:
The short-term rental code amendments were approved by Planning Commission at the ****
meeting. Staff presented a recommended code change along with alternatives. There were
several members of the public at the meeting and a variety of perspectives were shared about
how the city should handle short-term rentals. The recommended code amendments in this report
have been revised to incorporate the legal recommendations from the City Attorney's office. The
primary revisions from the City Attorney's office included relocating many of the short-term rental
requirements from Chapter 163 into Chapter 118, Business Licenses, changing enforcement staff
to the Development Services Director, replacing "shalls" in certain places with "mays", removing
the requirement for liability insurance, and clarifying what is required for building inspection.
A short-term rental (STR) is the leasing out of a furnished residential dwelling on a short-term
basis, generally less than a month. It is estimated that there are approximately 500-600 STR units
in Fayetteville. However, Fayetteville's codes do not have specific rules for STRs and they are
classified as hotels/motels in the zoning code. This prevents them from legally operating in a
single-family district and there are numerous STRs currently in violation. In July 2019 the City
Council adopted Resolution 172-19 directing staff to study and develop an ordinance for STRs
for their consideration.
Public Input: As the first step in studying STRs, the City hosted a focus group on August 19, 2019.
The focus group represented various perspectives including neighborhood representatives,
concerned citizens, rental owners and managers, and hotel owners. The group was guided by a
professional facilitator to identify key issues and recommendations in moving forward with local
rules for STRs. On September 30, 2019, the city hosted an open public input meeting which
allowed all attendees to provide input in writing and verbally on the issues identified by the focus
group. The city staff continued to take comment from the public and elected officials over the last
Mailing Address:
113 W. Mountain Street www.fayetteville-ar.gov
Fayetteville, AR 72701
few months. After reviewing the public comment and completing extensive research on many
cities' short-term rental codes, the City's consultant on the project, Garver LLC, completed a first
draft of revisions to the Fayetteville Code of Ordinance for STRs. This first draft was presented to
the same focus group on January 15, 2020 for their review and comment. Staff presented the
final draft ordinance, for comment, to the focus group on November 5th, 2020
DISCUSSION:
The Development Services Department and their consultant, Garver LLC, have drafted
amendments to the Fayetteville Code of Ordinances for short-term residential rentals. The primary
issues proposed in the previous revisions include the following:
• Location: STRs would be allowed by right in all zoning districts where residential
dwellings and hotel/motel uses are allowed.
• Type 1 and Type 2 STRs: There are two types of STRs. Type 1 is a full-time residence
and Type 2 is a full-time STR. Type 1's are not subject to density limitations, Type 2's are
subject to density limitations.
• Residency: A permanent resident does not have to live in the STR dwelling.
• Occupancy: Maximum of 2 people per bedroom plus 2,
FegaFdless of the R ember of bedF 9Fn6 A definition of bedroom is included.
• Permit: a business license must be obtained prior to operation.
• Inspection: prior to approval of a business license the rental unit must pass a safety and
egress inspection conducted by the Fayetteville Building Safety Division. A life safety and
egress inspection will verify the basic life safety requirements like fire alarms and basic
egress requirements like a door. The requirement for an inspection every three years has
been removed; an inspection is only required for the initial license.
• Grace period: 6 months for existing STRs to obtain inspection and business license.
After the enactment of the short-term rental ordinance, existing short-term rental
operators may temporarily continue to operate and shall have up to six months to obtain
a business license and be considered in compliance. After the six month start-up period,
all short- term rental units must have a business license to operate and be considered in
compliance. To qualify for this exemption from having to petition the Planning
Commission to obtain an individualized conditional use permit as a pre-existing short-
term rental, satisfactory proof of operation within the last three years and prior to the
enactment date must be provided to the City such as a copy of an advertisement listing
the unit and a copy of a transaction documenting that the unit was utilized as a short-
term rental within the applicable time period. Short-term rentals must also successfully
pass an inspection as described in §118.01 (E)(9)(e) of the Unified Development Code to
the City's satisfaction.
Type 1 and 2 short-term rentals seeking a business license or permit under the 6-month
start-up period which are currently operating in 2, 3 and 4 unit buildings in which more
than 1 unit is being used as a short-term rental may obtain a business license for all
currently operating short-term rentals.
All Type 2 short-term rentals submitting an application for a business license or permit
after the six month grace period has expired shall be required to obtain an individualized
conditional use permit from the Planning Commission and pass the City's premises
inspection prior to the City being able to issue a business license.
G:\ETC\Development Services Review\2020\Development Services\20-7000 ADM Amend Code of Ord. - Short Term Residential
Rentals
Special events: No parties or special events allowed in STRs by right.
Parking: Parking is limited to the maximum number of vehicles as allowed by the
underlying zoning district for the residential building on the property.
Density limitations: Density limitations only apply to Type 2 STRs. A city-wide density
cap of one percent (2%) of all dwelling units in the Fayetteville city limits may be utilized
as Type 2 rentals. Total dwelling units are determined from current United States Census
Bureau and/or American Community Survey numbers, whichever number is higher. A
conditional use permit may not permit the following:
o (a) More Type 2 short-term rentals than what is allowed by the city-wide density
cap.
o (b) More than ten percent (10 %) dwellings units as Type 2 rentals within a multi-
family dwelling complex
o (c) Individual 2-family, 3 and 4-family buildings that are owned by the same person
or entity are not a part of a multi -family complex shall have no more than one (1)
Type 2 short term rental unit per building complex.
o (d) Type 2 short-term rentals in commercial and mixed -use zoning districts where
hotel/motel are permitted by right shall not count towards the city-wide density cap.
o (e) Short-term rentals may be permitted in all zoning districts where hotel/motel
uses are permitted by right and shall not count towards the Type 2 short-term rental
density cap in these districts except in multi -family buildings as specified in Chapter
Fees: STRs would only be subject to the typical business license and occupancy
inspection fees.
Exceptions: Exceptions to the short-term rental code are subject to review as a
conditional use permit.
Request: Staff requests that the City Council amend chapter 118 of the Business Regulations and
chapters 151, 161, 162, and 163 of the Unified Development Code for short-term rentals. The
code changes are described above and shown in the attached strikeout -highlight version of the
code.
STAFF RECOMMENDATION:
Staff recommends that the City Council approve the code changes as outlined above and
in the attached ordinance.
BUDGET/STAFF IMPACT:
N/A
Attachments/website:
• Proposed code changes shown in strikeout — Updated 1/10/21
• City of Fayetteville short-term rental website
hftp://www.fayefteville-ar.gov/3801/Short-Term-Rentals
G:\ETC\Development Services Review\2020\Development Services\20-7000 ADM Amend Code of Ord. - Short Term Residential
Rentals
02-24-20 PLANNING COMMISSION
FAYETTEVILLE TITLE XI — BUSINESS REGULATIONS/ CHAPTER 118: STIR EDITS IN STRIKEOUT -UNDERLINE
CHAPTER 118: - BUSINESS REGISTRY AND LICENSES
118.01 -Applicability
(A) General Businesses.
(1) All businesses, institutions, corporations, LLCs, LLPs, partnerships, non-profit associations or
corporations, sole proprietorships or other non -governmental entities with a physical address or
which operates either a legally permitted home occupation or a short-term rental within the
Fayetteville city limits shall be required to file for the City of Fayetteville Business Registry and
License. A covered business or entity with multiple physical addresses in Fayetteville must
obtain a separate business license for each such business address.
(2) In addition, any person or non -governmental entity who has or should have a sales tax permit
and operates out of a physical address within Fayetteville shall be required to file for the City
of Fayetteville Business Registry and License.
(3) In addition, any person or non -governmental entity who is engaged in any trade or occupation
which requires federal or state licenses and who operates out of a physical address within
Fayetteville shall be required to file for the City of Fayetteville Business Registry and License.
(B) Religious Entities. Churches and other religious institutions are exempt from this chapter unless they
are performing functions like daycare that must be licensed by the state or that generate revenue
upon which state sales or use taxes must be paid. The city business license shall not be required
for the religious entity but only for those functions that require a state license or upon which state
sales or use taxes must be paid.
(C) Minors Exempt. No individual under eighteen (18) years of age shall be required to register or obtain
a business license.
(D) Individual Landlords Renting Less Than Three (3) Dwelling Units Exempt. An individual landlord,
not operating as a corporation, LLC, LLP, or other business entity, who rents out less than three (3)
dwelling units, and no commercial, industrial, or institutional unit, site or building shall be exempt
from this chapter. However, a landlord that operates a short-term residential rental shall not be
exempt and must apply for and obtain a business license for each individual short-term rental.
(E) Short-term rentals. A residential dwelling unit, portion of a dwelling unit, or room within a
residential dwelling unit, leased and/or rented to a guest(s), for a period of less than thirty
consecutive (30) days.
(1) Short-term rental, Type 9. A short-term rental where the principal use of the property remains
as a full-time residence. The occupants or owner rent their primary residence as a short-term
rental. A copy of the Homestead Tax Credit or long-term lease agreement for the subject
property is required to be classified as a Type 1 rental. Accessory dwelling units (ADUs) as
defined in Unified Development Code Chapter 151 shall be considered a Type 1 short-term
rental.
Short-term rental, Type 2. A short-term rental that is not occupied by a permanent resident. The
owner lists this property full-time as a short-term rental and has no intention of having permanent
residents living in the property. A conditional use permit is required for a Type 2 short-term rental
prior to the City issuinq a business license, except as defined in &1 18.01 (E)(4).
(3) License Required: No dwelling unit in the City shall be used as a short-term rental unless. -
(a) The owner of the dwelling unit or operator of the short-term rental possess a valid and
current business license for the dwelling unit, and fully complies with all legal requirements
and duties imposed herein with respect to each and every short-term rental; and
02-24-20 PLANNING COMMISSION
FAYETTEVILLE TITLE XI — BUSINESS REGULATIONS/ CHAPTER 118: STR EDITS IN STRIKEOUT -UNDERLINE
(b) The owner has designated an agent, where said agent fully complies with all legal
requirements and duties imposed herein with respect to every short-term rental. The owner
may serve as their own agent.
(4) 6 Month Start-up Period. After the enactment of the short term rental ordinance, existing short
term rental operators shall have 6 months to obtain a business license and be considered in
compliance. After the 6 month start-up period, all short term rental units must have a business
license to be considered in compliance. To qualify for this exemption as a pre-existing short-
term rental, satisfactory proof of operation prior to the enactment date shall be provided to the
city including a copy of a back -dated advertisement listing the unit and a copy of a transaction
prior to the adoption date documenting that the unit was utilized as a short-term rental. Short-
term rentals must also successfully pass an inspection as described in §118.01(E)(9)(e). The
City has complete discretion in determining whether such submitted proof is sufficient and
satisfactory.
(a) After the enactment of the short-term rental ordinance, existing short-term rental
operators may temporarily continue to operate and shall have up to six months to
obtain a business license and be considered in compliance. After the six month start-up
period, all short- term rental units must have a business license to operate and be
considered in compliance. To qualify for this exemption from having to petition the
Planning Commission to obtain an individualized conditional use permit as a pre-
existing short-term rental, satisfactory proof of operation within the last three years
and prior to the enactment date must be provided to the City such as a copy of an
advertisement listing the unit and a copy of a transaction docurenting that the unit
was utilized as a short-term rental within the applicable time period. Short-term rentals
must also successfully pass an inspection as described in §118.01(E)(9)(e) of the
I'ni iccl Developinclit Coda to the City's satisfaction.
(b) Type 1 and 2 short-term rentals seeking a business license or permit under the 6-month
start-up period which are currently operating in 2 3 and 4 unit buildings in which more
than 1 unit is being used as a short-term rental may obtain a business license for all
currently operating short-term rentals.
(c) All Type 2 short-term rentals submitting an application for a business license or permit
after the six month grace period has expired shall be required to obtain an individualized
conditional use permit from the Planning Commission and pass the City's premises
inspection prior to the City being able to issue a business license.
No hosting platform shall facilitate or conduct any booking transaction for a short-term rental in
the City without the short-term rental first obtaining and maintaining possession of the requisite
business license.
(6) A separate business license shall be required for each dwelling unit used as a short-term rental.
(7) Any change in ownership requires a new or amended business license.
(8) If any required contact information changes for the associated business license, the person to
whom the license was issued shall immediately notify the Development Services Department in
writing.
(9) License Application. The application for a business license shall include at minimum, the
following information from applicants:
(a) The property owner's information including legal name, mailing address immediate contact
phone number, and immediate contact E-mail address.
(b) Information for the dwelling unit subject to the application, inclusive of the physical street
address assigned by the City.
02-24-20 PLANNING COMMISSION
FAYETTEVILLE TITLE XI — BUSINESS REGULATIONS/ CHAPTER 118: STR EDITS IN STRIKEOUT -UNDERLINE
(c) The type and total number of dwelling units located on the lot of record containing the
dwelling unit subject to the application.
(d) If the owner is not their own agent, the owner designated agent's information including
legal name, mailing address, immediate contact phone number and immediate contact E-
mail address.
(e) Documentation of approval of a life safety and egress inspection by the City Building Safety
Division for the dwelling unit subject to the application.
(f) Proof of application for remittance of Hotel, Motel and Restaurant tax to the City of
Fayetteville, and verification that all sales, use, and Hotel, Motel and Restaurant taxes are
current.
(Q) Any additional data as deemed necessary or desirable for permit approval by the Zoning
and Development Administrator.
(10) License Renewals. Business licenses for short-term rentals shall be renewed in accordance
with Chapter 118 of the Business Regulations (Business Registry and Licenses).
02-24-20 PLANNING COMMISSION
FAYETTEVILLE TITLE XI — BUSINESS REGULATIONS/ CHAPTER 118: STIR EDITS IN STRIKEOUT -UNDERLINE
(11) Legal Duties of License Holders. An owner possessing a short-term rental license shall comply
at all times with the following requirements:
Occupancy. Short-term rentals shall be subject to, and may not exceed, the occupancy
limits approved with the business license. Exceptions to the occupancy standards for short-
term rentals may be qranted by the Planninq Commission as a conditional use permit.
(b) Advertisements. A short-term rental shall not be advertised if it violates occupancy, density,
safety, and any of the other provisions of the Fayetteville Code. No short-term rental unit
shall be advertised prior to having obtained a business license and the business license
number shall be included in the advertisement listing. No hosting platform or owner/agent
may offer, advertise, book, facilitate, or engage in short-term rental activity or
advertisement that violates any provision of the short-term rental code.
Information and Posting. Business licensees shall
conspicuously in the common area of the short-term rer
report a se
'ovide to
unit the C
12) Owner or Agent Accessibility. The property owner shall ensure that
compliance with this section. For
orad
and post
number to
ited agent
n order to
ity' means
ent at the
13) Guest records. The owner shall maintain summary guest registration records, which shall
contain the actual dates of occupancy, total number of guests per party per stay, and the rate(s)
charged, but shall not contain any personally identifiable information about guests. Such records
shall be maintained for three years and shall be provided to the City upon request.
14) Health and safety. The owner shall ensure that each dwelling unit governed by this section
complies with the applicable provisions of the Unified Development Code Chapter 173: Buildinq
lations.
(15) Criminal activity. The owner shall timely report any known or reasonably suspected criminal
activity by a quest to the Fayetteville Police Department.
(16) Taxes and fees. Except for those instances in which a hosting platform bears the responsibility
for collecting and remitting taxes and fees applicable to short-term rentals, the property owner
shall timely remit in full Fayetteville Hotel, Motel and Restaurant tax and other applicable local,
state, and federal taxes and City fees owed in connection with any short-term rental. The failure
of a hosting platform to collect and remit taxes and fees shall not relieve an owner of the
obligation to pay taxes and fees owed pursuant to this section.
(17) Authorization to Occupy, Use, and Operate. Authorization to operate a short-term rental may be
ranted by the Zoning and Development Administrator through the issuance of a City of
Fayetteville Business Registry and License (business license).
(18) Density For Type 2 Short-term Rentals. A city-wide density cap of one percent (2%) of all
dwelling units in the Fayetteville city limits may be utilized as Type 2 rentals. Total dwelling units
are determined from current United States Census Bureau and/or American Community Survey
numbers, whichever number is higher. A conditional use permit may not permit:
(a) More Type 2 short-term rentals than what is allowed by the city-wide density cap.
(b)
dwelling complex.
as Type 2 rentals within a multi -family
(c) Individual 2-family, 3 and 4-family buildings
and are not a part of a multi -family complex shall have no more than one (1) Type 2
(d) Type 2 short-term rentals in commercial and mixed -use zoning districts where hotel/motels
are permitted by right shall not count towards the city-wide density cap.
02-24-20 PLANNING COMMISSION
FAYETTEVILLE TITLE XI — BUSINESS REGULATIONS/ CHAPTER 118: STR EDITS IN STRIKEOUT -UNDERLINE
Suspension and Revocation. If the Zoning and Development Administrator has reason to believe
that any of the grounds specified in §118.03(A) of the Fayetteville Code exist, or that any rental
unit was rented for less than one full night, or to more than one part of guests for the same
period of time, or otherwise failed to comply with all terms and conditions of this section, the
Zoning and Development Administrator may suspend or revoke the short-term rental's business
license pursuant to the procedures detailed in �118.03 and in �118.04 of the Favetteville Code.
(20) Short-term rentals must comply with all applicable codes under Unified Development Code
Chapter 163.18 and successfully obtain a business license prior to operation.
FAYETTEVILLE TITLE XV - UDC/ CHAPTER 151: STIR EDITS IN STRIKEOUT -UNDERLINE
CHAPTER 151: DEFINITIONS
Agent, Owner -Designated. A person designated by the owner of a property, where designee has a physical
address within the City of Fayetteville, is accessible 24-hours a day, and otherwise in compliance with the
UDC requirements for short-term rentals. The owner may serve as their own agent.
Bedroom. A fully enclosed portion of a building designed or intended to be used principally for sleeping
purposes.
Bookinq transaction. Any contractual agreement between a quest and an owner relative to a short-term
rental.
Dwelling unit (zoning). One (1) room, or rooms connected together, constituting a separate, independent
housekeeping establishment for owner occupancy, or rental or lease on a weekly, monthly, or longer basis,
and physically separated from any other rooms or dwelling units which may be in the same structure, and
containing independent cooking and sleeping facilities.
Guest, Short-term rental. Any person who occupies a short-term rental, for a period of less than 30
consecutive days, pursuant to a short-term rental lease term and/or other like agreement, for the purposes
of temporary lodging.
Host, Short-term rental. The owner(s) of a short-term rental who has authority to offer the dwelling unit,
portion thereof, or a room within the dwelling unit as a legal short-term rental.
Owner. A person who owns at least a 50 percent interest in a dwelling unit used for short-term rentals.
Permanent residential dwelling. A structure that has been legally permitted or is a legal non -conforming
structure allowed for permanent occupancy as a residential dwelling.
Hosting Platform. A person or entity that participates in the short-term rental business by providing and
collecting or receiving a fee(s) for facilitating booking transactions through which a short-term rental host
may offer a short-term rental to a short-term rental guest. Hosting platforms typically, though not always,
facilitate booking transactions through an on line platform that allows a short-term rental host to advertise
the short-term rental through a website provided by the hosting platform and the hosting platform conducts
a transaction by which potential short-term rental guest reserve a guestroom(s) and arrange payment,
whether the short-term rental guest pays rent directly to the short-term rental host or to the hosting platform.
Short-term rental. A residential dwelling unit, portion of a dwelling unit, or room within a residential dwelling
unit, leased and/or rented to a quest(s), for a period of less than thirty consecutive (30) days.
Short-term rental, Type 1. A short-term rental where the principal use of the property remains as a full-time
residence. The occupants or owner rent their primary residence as a short-term rental. A copy of the
Homestead Tax Credit or long-term lease agreement for the subject property is required to be classified as
a Type 1 rental. Accessory dwelling units (ADUs) as defined in Unified Development Code Chapter 151
shall be considered a Type 1 short-term rental.
Short-term rental, Type 2. A short-term rental that is not occupied by a permanent resident. The owner lists
this property full-time as a short-term rental and has no intention of having permanent residents living in the
property. A conditional use permit is required for a Type 2 short-term rental prior to the City issuing a
business license.
FAYETTEVILLE TITLE XV - UDC/ CHAPTER 161: STR EDITS IN STRIKEOUT -UNDERLINE
CHAPTER 161: - ZONING REGULATIONS
161.02 - Zoning Compliance And Business License
(A) Required. It shall be unlawful to use or occupy or permit the use or occupancy of any building or
premises, or both, or part thereof hereafter created, erected, changed, converted, or wholly or partly
altered, or enlarged in its use or structure until a business license has been issued by the Zoning and
Development Administrator stating that the proposed use of the building or land conforms to the
requirements of this chapter.
(B) Conforming Uses. Uses permitted within the underlying zoning district shall be eligible for a
business license, subject to §118 of the Fayetteville Code.
(C) Nonconforming Uses.
(1) Except for short-term rental units subject to chapter 163 of the UDC, uses within the following
use unit categories established prior to September 7, 2010 and operating in a zoning district
that does not currently allow the use, are for the purposes of zoning compliance determined to
be an existing nonconforming use, may continue to operate and are eligible to obtain a city
business license. The exemption shall not be construed as relieving the owner or operator of
such business from the regulations of the business license ordinance, including grounds for
suspension and revocation, or from any other applicable federal, state, or city regulations.
Use Units
3 Public protection facilities
4 Cultural and recreational facilities
5 Government facilities
6 Agricultural
7 Animal husbandry
12a Limited business
13 Eating places
15 Neighborhood shopping goods
24 Home occupation
25 Offices, studios, and related services
FAYETTEVILLE TITLE XV - UDC/ CHAPTER 161: STR EDITS IN STRIKEOUT -UNDERLINE
(2) Except for short-term rental units subject to chapter 163 of the UDC, uses within the following
use unit categories established prior to July 15, 2003 and operating in a zoning district that does
not currently allow the use, are for the purposes of zoning compliance determined to be an
existing nonconforming use, may continue to operate and are eligible to obtain a city business
license. The exemption shall not be construed as relieving the owner or operator of such
business from the regulations of the business license ordinance, including grounds for
suspension and revocation, or from any other applicable federal, state, or city regulations.
Use Units
2 City-wide uses by conditional use permit
14 Hotel, motel and amusement facilities
16 Shopping goods
17 Transportation trades and services
18 Gasoline service stations & drive in/drive
through restaurants
19 Commercial recreation, small sites
20 Commercial recreation, large sites
21 Warehousing and wholesale
22 Manufacturing
23 Heavy industrial
Wholesale bulk petroleum storage
27 facilities with
underground tanks
28 Center for collecting recyclable materials
29 Dance halls
30 Extractive uses
FAYETTEVILLE TITLE XV - UDC/ CHAPTER 161: STR EDITS IN STRIKEOUT -UNDERLINE
31 Facilities emitting odors/handling
explosives
32 Sexually oriented businesses
33 Adult live entertainment club or bar
34 Liquor stores
35 Outdoor music establishments
36 Wireless communications facilities
38 Mini -storage units
39 Auto salvage and junk yards
40 Sidewalk cafes
42 Clean technologies
43 Animal boarding and training
161.3 - District R-A, Residential -Agricultural
(B) Uses.
(1) Permitted Uses.
Unit 1 City-wide uses by right
Unit 3 Public protection and utility facilities
Unit 6 Agriculture
Unit 7 Animal husbandry
Unit 8 Single-family dwellings
FAYETTEVILLE TITLE XV - UDC/ CHAPTER 161: STR EDITS IN STRIKEOUT -UNDERLINE
Unit 9 Two-family dwellings
Unit 37 Manufactured homes
Unit 41 Accessory dwellings
Unit 43 Animal boarding and training
Unit 46 Short-term rentals
161.4 - District RSF-.5, Residential Single -Family - One Half (%) Unit Per Acre
(B) Uses.
(1) Permitted Uses.
Unit 1 City-wide uses by right
Unit 8 Single-family dwellings
Unit 41 Accessory dwellings
Unit 46 Short-term rentals
161.5 -District RSF-1, Residential Single -Family -One (1) Unit Per Acre
(B) Uses.
(C) Permitted Uses.
Unit 1 City-wide uses by right
Unit 8 Single-family dwellings
Unit 41 Accessory dwellings
Unit 46 Short-term rentals
FAYETTEVILLE TITLE XV - UDC/ CHAPTER 161: STR EDITS IN STRIKEOUT -UNDERLINE
161.6 -District RSF-2, Residential Single -Family -Two (2) Units Per Acre
(B) Uses.
(C) Permitted Uses.
Unit 1 City-wide uses by right
Unit 8 Single-family dwellings
Unit 41 Accessory dwellings
Unit 46 Short-term rentals
161.7 -District RSF-4, Residential Single -Family -Four (4) Units Per Acre
(B) Uses.
(1) Permitted Uses.
Unit 1 City-wide uses by right
Unit 8 Single-family dwellings
Unit 41 Accessory dwellings
Unit 46 Short-term rentals
161.8 -District RSF-7, Residential Single -Family -Seven (7) Units Per Acre
(B) Uses.
(1) Permitted Uses.
Unit 1 City-wide uses by right
Unit 8 Single-family dwellings
Unit 41 Accessory dwellings
Unit 46 Short-term rentals
FAYETTEVILLE TITLE XV - UDC/ CHAPTER 161: STR EDITS IN STRIKEOUT -UNDERLINE
161.9 - District RSF-8, Residential Single -Family - Eight (8) Units Per Acre
(B) Uses.
(1) Permitted Uses.
Unit 1 City-wide uses by right
Unit 8 Single-family dwellings
Unit 41 Accessory dwellings
Unit 46 Short-term rentals
161.10 - District RSF-18, Residential Single -Family - Eighteen (18) Units Per Acre
(B) Uses.
(1) Permitted Uses.
Unit 1 City-wide uses by right
Unit 8 Single-family dwellings
Unit 41 Accessory dwellings
Unit 46 Short-term rentals
161.11- District RI-12, Residential Intermediate, Twelve (12) Units Per Acre
(B) Uses.
(1) Permitted Uses.
Unit 1 City-wide uses by right
Unit 8 Single-family dwellings
i
t
Unit 9 ' Two (2) family dwellings
Unit 10 Three (3) and four (4) family dwellings
FAYETTEVILLE TITLE XV - UDC/ CHAPTER 161: STR EDITS IN STRIKEOUT -UNDERLINE
Unit 41 Accessory dwellings
Unit 44 Cluster Housing Development
Unit 46 Short-term rentals
161.12 - District RI-U, Residential Intermediate - Urban
(B) Uses.
(1) Permitted Uses.
Unit 1 City-wide uses by right
Unit 8 Single-family dwellings
Unit 9 Two (2) family dwellings
Unit 10 Three (3) and four (4) family dwellings
Unit 41 Accessory dwellings
Unit 44 Cluster housing development
Unit 46 Short-term rentals
161.13 - District RMF-6, Residential Multi -Family - Six (6) Units Per Acre
(B) Uses.
(1) Permitted Uses.
Unit 1 City-wide uses by right
Unit 8 Single-family dwellings
Unit 9 Two-family dwellings
FAYETTEVILLE TITLE XV - UDC/ CHAPTER 161: STR EDITS IN STRIKEOUT -UNDERLINE
Unit 10 Three (3) and four (4) family dwellings
Unit 26 Multi -family dwellings
Unit 41 Accessory dwellings
Unit 44 Cluster Housing Development
Unit 46 Short-term rental
161.14 - District RMF-12, Residential Multi -Family - Twelve (12) Units Per Acre
(B) Uses.
(1) Permitted Uses.
Unit 1 City-wide uses by right
Unit 8 Single-family dwellings
Unit 9 Two-family dwellings
Unit 10 Three (3) and four (4) family dwellings
Unit 26 Multi -family dwellings
Unit 41 Accessory dwellings
Unit 44 Cluster Housing Development
Unit 46 Short-term rental
161.15 - District RMF-18, Residential Multi -Family - Eighteen (18) Units Per Acre
(B) Uses.
(1) Permitted Uses.
FAYETTEVILLE TITLE XV - UDC/ CHAPTER 161: STR EDITS IN STRIKEOUT -UNDERLINE
Unit 1
City-wide uses by right
Unit 8
Single-family dwellings
Unit 9
Two-family dwellings
Unit 10
Three (3) and four (4) family dwellings
Unit 26
Multi -family dwellings
Unit 41
Accessory dwellings
Unit 44
Cluster Housing Development
Unit 46
Short-term rental
161.16 - District RMF-24, Residential Multi -Family - Twenty -Four (24) Units Per Acre
(B) Uses.
(1) Permitted Uses.
Unit 1 City-wide uses by right
Unit 8 Single-family dwellings
Unit 9 Two-family dwellings
Unit 10 Three (3) and four (4) family dwellings
Unit 26 Multi -family dwellings
Unit 41 Accessory dwellings
Unit 44 Cluster Housing Development
Unit 46 Short-term rental
FAYETTEVILLE TITLE XV - UDC/ CHAPTER 161: STR EDITS IN STRIKEOUT -UNDERLINE
161.17 - District RMF-40, Residential Multi -Family - Forty (40) Units Per Acre
(B) Uses.
(1) Permitted Uses.
Unit 1 City-wide uses by right
Unit 8 Single-family dwellings
Unit 9 Two-family dwellings
Unit 10 Three (3) and four (4) family dwellings
Unit 26 Multi -family dwellings
Unit 41 Accessory dwellings
Unit 44 Cluster Housing Development
Unit 46 Short-term rental
161.18 - NS-L, Neighborhood Services - Limited
(B) Uses.
(1) Permitted Uses.
Unit 1 City-wide uses by right
Unit 8 Single-family dwellings
Unit 9 Two (2) family dwellings
Unit 10 Three (3) and four (4) family
dwellings
Unit
Limited Business
12a
Unit 24 Home occupations
FAYETTEVILLE TITLE XV - UDC/ CHAPTER 161: STR EDITS IN STRIKEOUT -UNDERLINE
Unit 40 Sidewalk cafes
Unit 41 Accessory dwelling units
Unit 44 Cluster housing development
Unit 46 Short-term rental
161.19 - NS-G, Neighborhood Services - General
(B) Uses.
(1) Permitted Uses.
Unit 1 City-wide uses by right
Unit 8 Single-family dwellings
Unit 9 Two-family dwellings
Unit 10 Three (3) and four (4) family
dwellings
i
Unit 12b General business
Unit 24 Home occupations
Unit 40 Sidewalk cafes
Unit 41 Accessory dwelling units
Unit 44 Cluster housing development
Unit 46 Short-term rental
161.20 - District R-O, Residential Office
(B) Uses.
FAYETTEVILLE TITLE XV - UDC/ CHAPTER 161: STR EDITS IN STRIKEOUT -UNDERLINE
(1) Permitted uses.
Unit 1 City-wide uses by right
Unit 5 Government facilities
Unit 8 Single-family dwellings
Unit 9 Two-family dwellings
Unit 12a Limited business
Unit 25 Offices, studios, and related services
Unit 41 Accessory dwellings
Unit 44 Cluster Housing Development
Unit 46 Short-term rental
i
161.22 - Community Services
(B) Uses.
(1) Permitted Uses.
Unit 1 City-wide uses by right
Unit 4 Cultural and recreational facilities
Unit 5 Government facilities
Unit 8 Single-family dwellings
Unit 9 Two-family dwellings
Unit 10 Three (3) and four (4) family dwellings
Unit 13 Eating places
FAYETTEVILLE TITLE XV - UDC/ CHAPTER 161: STR EDITS IN STRIKEOUT -UNDERLINE
Unit 15 Neighborhood Shopping goods
Gasoline service stations and drive -
Unit 18
in/drive through restaurants
Unit 24 Home occupations
Unit 25 Offices, studios and related services
Unit 26 Multi -family dwellings
Unit 40 Sidewalk Cafes
Unit 41 Accessory dwellings
Unit 44 Cluster Housing Development
Unit 45 Small scale production
Unit 46 Short-term rental
161.24 - Urban Thoroughfare
(B) Uses.
(1) Permitted Uses.
Unit 1 City-wide uses by right
Unit 4 Cultural and recreational facilities
Unit 5 Government facilities
Unit 8 Single-family dwellings
Unit 9 Two (2) family dwellings
Unit 10 Three (3) and four (4) family
dwellings
FAYETTEVILLE TITLE XV - UDC/ CHAPTER 161: STR EDITS IN STRIKEOUT -UNDERLINE
Unit 13 Eating places
Unit 14 Hotel, motel and amusement
services
Unit 16 Shopping goods
Unit 17 Transportation trades and services
Unit 18
Gasoline service stations and drive-
in/drive through restaurants
Unit 19 Commercial recreation, small sites
Unit 24 Home occupations
Unit 25 Offices, studios, and related
services
Unit 26 Multi -family dwellings
Unit 34 Liquor store
Unit 40 Sidewalk cafes
Unit 41 Accessory Dwellings
Unit 44
Cluster Housing Development
Unit 45
Small scale production
Unit 46
Short-term rental
161.25 - District C-3, Central Commercial
(B) Uses.
(1) Permitted Uses.
FAYETTEVILLE TITLE XV - UDC/ CHAPTER 161: STR EDITS IN STRIKEOUT -UNDERLINE
Unit 1 City-wide uses by right
Unit 4 Cultural and recreational facilities
Unit 5 Government facilities
Unit 13 Eating places
Unit 14 Hotel, motel, and amusement
facilities
Unit 16 Shopping goods
Gasoline service stations & drive-in
Unit 18
restaurants
Unit 19 Commercial recreation, small sites
Unit 25 Offices, studios, and related services
Unit 26 Multi -family dwellings
Unit 34 Liquor stores
Unit 40 Sidewalk Cafes
Unit
-44 Cluster Housing Development
Unit 45 1 Small scale production
Unit 46 Short-term rental
161.26 - Downtown Core
(B) Uses.
(1) Permitted Uses.
Unit 1 City-wide uses by right
FAYETTEVILLE TITLE XV - UDC/ CHAPTER 161: STR EDITS IN STRIKEOUT -UNDERLINE
Unit 4 Cultural and recreational facilities
Unit 5
Government facilities
Unit 8
Single-family dwellings
Unit 9
Two-family dwellings
Three (3) and four (4) family
Unit 10
dwellings
Unit 13
Eating places
Hotel, motel, and amusement
Unit 14
facilities
Unit 16
Shopping goods
Unit 17
Transportation trades and services
Unit 19
Commercial recreation, small sites
Unit 24 ;
Home occupations
13
Offices, studios, and related
Unit 25
services
Unit 26
Multi -family dwellings
Unit 34 j
Liquor stores
Unit 40 i
S
Sidewalk Cafes
I
Unit 41
Accessory dwellings
Unit 44
Cluster Housing Development
Unit 45
Small scale production
Unit 46
Short-term rental
FAYETTEVILLE TITLE XV - UDC/ CHAPTER 161: STR EDITS IN STRIKEOUT -UNDERLINE
161.27 - Main Street/Center
(B) Uses.
(1) Permitted uses.
Unit 1 City-wide uses by right
Unit 4 Cultural and recreational facilities
Unit S Government facilities
Unit 8 Single-family dwellings
Unit 9 I Two-family dwellings
Unit 10 Three (3) and four (4) family
dwellings
Unit 13 t Eating places
I
Unit 14 Hotel, motel, and amusement
facilities
Unit 16 Shopping goods
Unit 17 Transportation trades and services
Unit 19 Commercial recreation, small sites
Unit 24 Home occupations
Unit 25 Offices, studios, and related
services
Unit 26 Multi -family dwellings
Unit 34 Liquor stores
Unit 40 Sidewalk Cafes
Unit 41 Accessory dwellings
FAYETTEVILLE TITLE XV - UDC/ CHAPTER 161: STR EDITS IN STRIKEOUT -UNDERLINE
Unit 44
Cluster Housing Development
Unit 45
Small scale production
Unit 46
Short-term rental
161.28 - Downtown General
(B) Uses.
(1) Permitted Uses.
Unit 1 City-wide uses by right
Unit 4 Cultural and recreational facilities
Unit 5 Government facilities
Unit 8 Single-family dwellings
Unit 9 Two-family dwellings
Unit 10 Three (3) and four (4) family dwellings
Unit 13 Eating places
Unit 15 Neighborhood shopping goods
Unit 24 Home occupations
Unit 25 Offices, studios, and related services
Unit 26 Multi -family dwellings
Unit 40 Sidewalk Cafes
Unit 41 Accessory dwellings
Unit 44 Cluster Housing Development
FAYETTEVILLE TITLE XV - UDC/ CHAPTER 161: STR EDITS IN STRIKEOUT -UNDERLINE
Unit 45 Small scale production
Unit 46 Short-term rental
161.29 - Neighborhood Conservation
(B) Uses.
(1) Permitted Uses.
Unit 1 City-wide uses by right
Unit 8
Single-family dwellings
_i
Unit 41
Accessory dwellings
Unit 46
Short-term rental
FAYETTEVILLE TITLE XV - UDC/ CHAPTER 162: STR EDITS IN STRIKEOUT -UNDERLINE
CHAPTER 162: - USE UNITS
162.01 - Establishment/Listing
The various use units referred to in the zoning district provisions are herein listed in numerical order.
Within the use units, the permitted uses are ordinarily listed in alphabetical order. In these use units
where there is a preliminary descriptive statement (which may mention specific uses) in addition to the
detailed list of uses, the detailed list shall govern.
Unit 1 City-wide uses by right
Unit 2 City-wide uses by conditional use permit
Unit 3 Public protection and utility facilities
Unit 4 Cultural and recreational facilities
Unit 5 Government facilities
Unit 6 Agriculture
Unit 7 Animal husbandry
Unit 8 Single-family dwellings
Unit 9 Two-family dwellings
Unit 10 Three (3) and four (4) family dwellings
Unit 11 Manufactured home park
Unit 12a Limited business
Unit 12b General business
Unit 13 Eating places
Unit 14 Hotel, motel and amusement facilities
Unit 15 Neighborhood shopping goods
Unit 16 Shopping goods
FAYETTEVILLE TITLE XV - UDC/ CHAPTER 162: STR EDITS IN STRIKEOUT -UNDERLINE
Unit 17
Transportation Trades and services
Gasoline service stations and drive-in/drive
Unit 18
through restaurants
Unit 19
Commercial recreation, small sites
Unit 20
Commercial recreation, large sites
Unit 21
Warehousing and wholesale
Unit 22
Manufacturing
Unit 23
Heavy industrial
Unit 24
Home occupation
Unit 25
Offices, studios, and related services
Unit 26
Multi -family dwellings
Wholesale bulk petroleum storage facilities
Unit 27
with underground storage tanks
Unit 28
Center for collecting recyclable materials
Unit 29
Dance halls
Unit 30
Extractive uses
Facilities emitting odors & facilities
Unit 31
handling explosives
Unit 32
Sexually oriented business
Unit 33
Adult live entertainment club or bar
Unit 34
Liquor stores
Unit 35
Outdoor music establishments
FAYETTEVILLE TITLE XV - UDC/ CHAPTER 162: STIR EDITS IN STRIKEOUT -UNDERLINE
Unit 36
Wireless communications facilities
Unit 37
Manufactured homes
Unit 38
Mini -storage units
Unit 39
Auto salvage and junk yards
Unit 40
Sidewalk Cafes
Unit 41
Accessory dwellings
Unit 42
Clean technologies
Unit 43
Animal boarding and training
Unit 44
Cluster Housing Development
Unit 45
Small scale production
Unit 46
Short-term rental
(0) Unit 14. Hotel, Motel, and Amusement Facilities.
(1) Description. Unit 14 consists of hotels, motels, and certain types of amusement facilities.
(2) Included Uses.
Hotel
Membership lodge
Motel
Motion picture theater
Night club, not providing dancing or outdoor music
Tavern, not providing dancing or outdoor music
Use Unit46, Short-term rental is also permitted within Use
FAYETTEVILLE TITLE XV - UDC/ CHAPTER 162: STR EDITS IN STRIKEOUT -UNDERLINE
Unit 14
(UU) Unit 46. Short-term rental.
(1) Description. Unit 46 is provided to allow a permanent residential dwelling unit, portion of a
residential dwelling unit, or room within a residential dwelling unit, to be leased and/or rented to
a guest(s) for a period of less than thirty (30) consecutive days.
(2) Included Uses.
Short-term rentals
02-24-20 PLANNING COMMISSION
FAYETTEVILLE TITLE XV - UDC/ CHAPTER 163: STR EDITS IN STRIKEOUT -UNDERLINE
CHAPTER 163: - USE CONDITIONS
163.01- Listing
The use conditions set forth in this chapter are the following:
Bed and breakfast facilities
Carnival, circus, amusement park or similar temporary
open-air enterprise
Child care, nursery school
Dance halls
Facilities emitting odors and facilities handling explosives
Home occupations
Manufactured homes
Outdoor music establishments
Sexually oriented businesses
Short-term rentals
Tandem lot development
Wireless communications facilities
163.18 —Short-term rentals
(A) General Standards.
(1) Residential Zoning Districts. Short-term rentals may be permitted in all zoning districts where
residential uses are allowed by right.
(2) Commercial and Mixed Use Zoning Districts. Short-term rentals may be permitted in all zoning
districts where hotel/motel uses are permitted by right and shall not count towards the Type 2
short-term rental density cap in these districts except in multi -family buildings as specified in
Chapter 118 of the Fayetteville City Code.
02-24-20 PLANNING COMMISSION
FAYETTEVILLE TITLE XV - UDC/ CHAPTER 163: STIR EDITS IN STRIKEOUT -UNDERLINE
3 Occu anc . Maximum of two 2 people per bedroomplus two 2
for the entire unit.
(4) Parking. Parking is limited to the maximum number of vehicles as allowed by the underlying
zoning district for the residential building on the property.
Decial events are not permitted in a short-term rental. Example of
are not limited to, weddings, receptions, an
business seminars.
events include, but
s. fundraisers and
(6) Short-term rental units are permitted in any structure established as a permanent residential
dwelling including an accessory dwelling unit. No recreational vehicle, trailer, other vehicle or
structure not classified as a permanent residential dwelling may be used as a short-term
rental.
(7) 6 Month Start-up Period. After the enactment of the short-term rental ordinance, existing short-
term rental operators shall have 6 months to obtain a business license and be considered in
compliance. After the 6-month start-up period, all short-term rental units must have a business
license to be considered in compliance. To qualify for this exemption as a pre-existing short-
term rental, satisfactory proof of operation prior to the enactment date shall be provided to the
city including a copy of a back -dated advertisement listing the unit and a copy of a transaction
prior to the adoption date documenting that the unit was utilized as a short-term rental. Short-
term rentals must also successfully pass an inspection as described in §118.01(E)(9)(e). The
City has complete discretion in determining whether such submitted proof is sufficient and
satisfactory.
r7er the enactment of the short-term rental ordinance, existing short-term rental
operators may temporarily continue to operate and shall have un to six months to.
and be considered in compliance. After the six month s
eriod. all short- term rental units must h
considered in compliance. To qualify for this exemption from having to petition the
Planning Commission to obtain an individualized conditional use permit as a pre-
existing short-term rental, satisfactory proof of operation within the last three years
and prior to the enactment date must be provided to the City such as a copy of an
advertisement listing the unit and a copy of a transaction documenting that the unit
was utilized as a short-term rental within the applicable time period. Short-term rentals
must also successfully pass an inspection as described in §118.01(E)(9)(e) of the
( 11ijiccl 0c rcluhnJcnl (,o(lc to the City's satisfaction
Type 1 and 2 short-term rentals seeking a business license or permit under the 6-month
start-up period which are currently operating in 2, 3 and 4 unit buildings in which more
than 1 unit is being used as a short-term rental may obtain a business license for all
currentiv ooerating short-term rentals.
(c) All Type 2 short-term rentals submitting an application for a business license or permit
after the six month grace period has expired shall be required to obtain an individualized
conditional use permit from the Planning Commission and pass the City's premises
inspection prior to the City being able to issue a business license.
Exceptions. Exceptions to the short-term rental standards, except F
exceed the citv-wide densitv maximum, may be oranted by the Planni
sals that would
;ommission as a
conoitionai use permit.
(9) Short-term rentals must comply with all applicable codes under City Code Section 118.01 and
successfully obtain a business license prior to operation.
Real Estate Investors NWA — Arkansas Short Term Rental Alliance
Position Paper: Fayetteville Short Term Rental Ordinance
December 17, 2020
In an effort to provide input for further consideration and revision regarding the proposed Short Term Rental
Ordinance suggested at the December 1st City Council meeting, Real Estate Investors NWA and Arkansas Short
Term Rental Alliance has drafted a Position Paper to present our views.
Below are the Issues we find challenging and recommendations for further discussion.
1. Conditional Use Permit and Inspections
We find the Conditional Use Permit too onerous for Type 2 STR owners and suspect it will also be
burdensome to city officials charged with enacting the process. Most Type 2 owners are small investors
unfamiliar with this process and we believe a blanket regulation such as this would lead to confusion,
filing errors and ultimately noncompliance.
SUGGESTED REVISION: We recommend this regulation be eliminated or alternatively with
implementation only after the 2% Density Cap has been reached.
A general Fire Inspection for each unit seems reasonable and would address any safety concerns while
identifying possible code violations. The inspection process is already in place and would be the least
burdensome on city officials.
2. 8-Person Cap on STR
We find this regulation to be particularly burdensome. STR are neither residential owners nor hotels. We
fall somewhere in between and are actually a separate business category.
We understand the intent of both the Planning Commission and City Council is to make STRs legal without
diminishing the beneficial aspects for entertainment, short term training/educational programs,
prospective new residents and many other legitimate uses of temporary housing.
Placing an 8-person cap on STR eliminates a large portion of our market, particularly the higher end
housing so desired by event visitors, professionals exploring our "funky" city prior to a move and other
social purposes. The harm this cap imposes includes unnecessarily restricting Highest and Best use for our
properties, eliminating potential users of STR housing and lower revenue for both owners and the city
SUGGESTED REVISION: We recommend the regulation remain 2 people per bedroom plus 2 and that the
8-person cap be eliminated.
3. Cap of 1 STR Unit Per Multi -Family Property
We find this item to be an unwarranted over -regulation with no foundation, cause or need. It hampers
our ability to efficiently maintain our units and is a gross interference in the ability to run our businesses
as we see fit. Ultimately, we feel this will be deemed unconstitutional and again limit our capacity to
operate our property in the Highest and Best use possible.
SUGGESTED REVISION: We recommend this restriction be eliminated entirely.
4. Permanent Structure Requirement
Part of the value and desirability of STRs is for renters to experience new, different and creative
accommodations. Currently, there are many examples in Fayetteville including recreational vehicles,
houseboats and even a Tree House. We believe these alternative housing options to be of great benefit
and a major attraction to visitors of our unique city.
SUGGESTED REVISION: We feel this requirement would benefit from further study and propose a 1-year
review of STIR uses and accommodations. At the end of the year, if there is deemed to be a problem,
further action can be taken at that time.
5. Owner or Agent Accessibility
We feel the 24-7 availability and particularly the requirement of an agent to be physically present at the
STIR within one hour is unreasonable and probably unworkable.
SUGGESTED REVISION: The availability requirement should be no different than that of any landlord or
personal residential owner.
6. Special Events Prohibition
We find this restriction unnecessary and confusing. Special events or temporary housing related to
special events are the main purpose for STRs. Weddings at luxury accommodations, anniversaries, family
reunions and other private parties are the reason renters seek STRs. Weekend corporate training events
serve a beneficial and legitimate purpose for STRs. All these events and others not listed bring visitors,
revenue and goodwill to Fayetteville.
SUGGESTED REVISION: We find no reason or need for this restriction and recommend it be removed. If
there is some foundational cause the planners were trying to accomplish, it should be more clearly
defined and open to further discussion.
It is our desire that this Position Paper be used to facilitate more dialogue resulting in an Ordinance beneficial
to all parties. We hope the experience will foster additional collaboration among our members as
stakeholders in providing a vibrant, fun and beneficial short term rental market within our beloved City of
Fayetteville.
Respectfully submitted,
Real Estate Investors NWA
Arkansas Short Term Rental Alliance
MaryMcGetrick
Submitted By
City of Fayetteville Staff Review Form
2020-1012
Legistar File ID
12/1/2020
City Council Meeting Date - Agenda Item Only
N/A for Non -Agenda Item
11/12/2020 DEVELOPMENT SERVICES (620)
Submitted Date Division / Department
Action Recommendation:
STAFF RECOMMENDS APPROVAL OF A SHORT-TERM RENTALS ORDINANCE CLASSIFYING THE TYPES OF SHORT-TERM
RENTALS AND CREATING REGULATIONS TO PERMIT AND INSPECT THE RENTALS.
Account Number
Project Number
Budgeted Item? No
Does item have a cost? No
Budget Adjustment Attached? No
Purchase Order Number:
Change Order Number:
Original Contract Number:
Budget Impact:
Fund
Project Title
Current Budget
Funds Obligated
Current Balance
Item Cost
Budget Adjustment
Remaining Budget
Previous Ordinance or Resolution #
Approval Date:
V20180321
CITY OF
_ FAYETTEVILLE CITY COUNCIL MEMO
ARKANSAS
111t4>A
FROM
MEETING DATE:
City of Fayetteville City Council
Garner Stoll, Development Services Director
December 1 ', 2020
SUBJECT: ADM 20-7000 Administrative Item (Amend Fayetteville Code of
Ordinances: Short-term Residential Rentals): Submitted by the
Development Services Department for revisions to the Fayetteville Code of
Ordinances for short-term residential rentals.
RECOMMENDATION:
STAFF RECOMMENDS APPROVAL OF A SHORT-TERM RENTALS ORDINANCE
CLASSIFYING THE TYPES OF SHORT-TERM RENTALS AND CREATING REGULATIONS
TO PERMIT AND INSPECT THE RENTALS.
RECOMMENDED MOTION:
"I move to approve ADM 20-7000 as recommend by City staff."
BACKGROUND:
The short-term rental code amendments were approved by Planning Commission on February
24 of 2020. Staff presented a recommended code change along with alternatives. There were
several members of the public at the meeting and a variety of perspectives were shared about
how the city should handle short-term rentals. The recommended code amendments in this report
have been revised to incorporate the legal recommendations from the City Attorney's office and
Planning Commission. The primary revisions from the City Attorney's office included relocating
many of the short-term rental requirements from Chapter 163 into Chapter 118, Business
Licenses, changing enforcement staff to the Development Services Director, removing the
requirement for liability insurance, and clarifying what is required for building inspection.
A short-term rental (STR) is the leasing out of a furnished residential dwelling on a short-term
basis, generally less than a month. It is estimated that there are approximately 500-600 STR units
in Fayetteville. However, Fayetteville's codes do not have specific rules for STRs and they are
classified as hotels/motels in the zoning code. This prevents them from legally operating in a
single-family district and there are numerous STRs currently in violation. In July of 2019 the City
Council adopted Resolution 172-19 directing staff to study and develop an ordinance for STRs
for their consideration.
Public Input: As the first step in studying STRs, the City hosted a focus group on August 19, 2019.
The focus group represented various perspectives including neighborhood representatives,
Mailing Address:
113 W. Mountain Street www.fayetteville-ar.gov
Fayetteville, AR 72701
concerned citizens, rental owners and managers, and hotel owners. The group was guided by a
professional facilitator to identify key issues and recommendations in moving forward with local
rules for STRs. On September 30, 2019, the city hosted an open public input meeting which
allowed all attendees to provide input in writing and verbally on the issues identified by the focus
group. The city staff continued to take comment from the public and elected officials over the last
few months. After reviewing the public comment and completing extensive research on many
cities' short-term rental codes, the City's consultant on the project, Garver LLC, completed a first
draft of revisions to the Fayetteville Code of Ordinance for STRs. This first draft was presented to
the same focus group on January 15, 2020 for their review and comment. Staff presented the
final draft ordinance, for comment, to the focus group on November 5, 2020
DISCUSSION:
The Development Services Department and their consultant, Garver LLC, have drafted
amendments to the Fayetteville Code of Ordinances for short-term residential rentals. The primary
issues proposed in the previous revisions include the following:
• Location: STRs would be allowed by right in all zoning districts where residential
dwellings and/or hotel/motel uses are allowed.
• Type 1 and Type 2 STRs: There are two types of STRs. Type 1 is a full-time residence
and Type 2 is a full-time STR. Type 1's are not subject to density limitations, Type 2's are
subject to density limitations in districts where the use is not allowed by right. Type 2's
require a conditional use permit when use is not allowed by right.
• Residency: A permanent resident does not have to live in the STR dwelling.
• Occupancy: Maximum of 2 people per bedroom plus 2, with a maximum of 8 people
regardless of the number of bedrooms. A definition of bedroom is included.
• Permit: A business license must be obtained prior to operation.
• Inspection: Prior to approval of a business license the rental unit must pass a safety and
egress inspection conducted by the Fayetteville Building Safety Division. A life safety and
egress inspection will verify the basic life safety requirements like fire alarms and basic
egress requirements like a door. An inspection is only required for the initial license.
• Grace period: 6 months for existing STRs to obtain inspection and business license. If
both the inspection and the business license are obtained in the 6 month grace period a
conditional use permit will not be required.
• Special events: No parties or special events allowed in STRs by right.
• Parking: Parking is limited to the maximum number of vehicles as allowed by the
underlying zoning district for the residential building on the property.
• Conditional use permits: Type 2's require a conditional use permit when the use is not
allowed by right in the underlying zoning district.
• Density limitations: Density limitations only apply to Type 2 STRs. A city-wide density
cap of two percent (2%) of all dwelling units in the Fayetteville city limits may be utilized
as Type 2 rentals. Total dwelling units are determined from current United States Census
Bureau and/or American Community Survey numbers, whichever number is higher. A
conditional use permit may not permit the following:
o More Type 2 short-term rentals than what is allowed by the city-wide density cap.
o More than two (2) dwellings units as Type 2 rentals within a multi -family dwelling
complex
o Individual 2-family, 3 and 4-family buildings that are not a part of a multi -family
complex shall have no more than one (1) Type 2 short term rental unit per building
complex.
G:\ETC\Development Services Review\2020\Development Services\20-7000 ADM Amend Code of Ord. - Short Term Residential
Rentals
o Type 2 short-term rentals in commercial and mixed -use zoning districts where
hotel/motel are permitted by right shall not count towards the city-wide density cap.
o Short-term rentals may be permitted in all zoning districts where hotel/motel uses
are permitted by right and shall not count towards the Type 2 short-term rental
density cap in these districts except in multi -family buildings.
Fees: STRs would only be subject to the typical business license and occupancy
inspection fees.
Exceptions: Exceptions to the short-term rental code are subject to review as a
conditional use permit.
Request: Staff requests that the City Council amend chapter 118 of the Business Regulations and
chapters 151, 161, 162, and 163 of the Unified Development Code for short-term rentals. The
code changes are described above and shown in the attached strikeout -highlight version of the
code.
STAFF RECOMMENDATION:
Staff recommends that the City Council approve the code changes as outlined above and
in the attached ordinance.
BUDGET/STAFF IMPACT:
N/A
Attachments/website:
• Proposed code changes shown in strikeout
• City of Fayetteville short-term rental website
http://www.fayetteville-ar.gov/3801/Short-Term-Rentals
G:\ETC\Development Services Review\2020\Development Services\20-7000 ADM Amend Code of Ord. - Short Term Residential
Rentals
02-24-20 PLANNING COMMISSION
FAYETTEVILLE TITLE XI — BUSINESS REGULATIONS/ CHAPTER 118: STIR EDITS IN STRIKEOUT -UNDERLINE
CHAPTER 118: - BUSINESS REGISTRY AND LICENSES
118.01 -Applicability
(A) General Businesses.
(1) All businesses, institutions, corporations, LLCs, LLPs, partnerships, non-profit associations or
corporations, sole proprietorships or other non -governmental entities with a physical address or
which operates either a legally permitted home occupation or a short-term rental within the
Fayetteville city limits shall be required to file for the City of Fayetteville Business Registry and
License. A covered business or entity with multiple physical addresses in Fayetteville must
obtain a separate business license for each such business address.
(2) In addition, any person or non -governmental entity who has or should have a sales tax permit
and operates out of a physical address within Fayetteville shall be required to file for the City
of Fayetteville Business Registry and License.
(3) In addition, any person or non -governmental entity who is engaged in any trade or occupation
which requires federal or state licenses and who operates out of a physical address within
Fayetteville shall be required to file for the City of Fayetteville Business Registry and License.
(B) Religious Entities. Churches and other religious institutions are exempt from this chapter unless they
are performing functions like daycare that must be licensed by the state or that generate revenue
upon which state sales or use taxes must be paid. The city business license shall not be required
for the religious entity but only for those functions that require a state license or upon which state
sales or use taxes must be paid.
(C) Minors Exempt. No individual under eighteen (18) years of age shall be required to register or obtain
a business license.
(D) Individual Landlords Renting Less Than Three (3) Dwelling Units Exempt. An individual landlord,
not operating as a corporation, LLC, LLP, or other business entity, who rents out less than three (3)
dwelling units, and no commercial, industrial, or institutional unit, site or building shall be exempt
from this chapter. However, a landlord that operates a short-term residential rental shall not be
exempt and must apply for and obtain a business license for each individual short-term rental.
(E) Short-term rentals. A residential dwelling unit, portion of a dwelling unit, or room within a
residential dwelling unit, leased and/or rented to a quest(s), for a period of less than thirty
consecutive (30) days.
(1) Short-term rental, Type 1. A short-term rental where the principal use of the property remains
as a full-time residence. The occupants or owner rent their primary residence as a short-term
rental. A copy of the Homestead Tax Credit or long-term lease agreement for the subject
property is required to be classified as a Type 1 rental. Accessory dwelling units (ADUs) as
defined in Unified Development Code Chapter 151 shall be considered a Type 1 short-term
rental.
(2) Short-term rental, Type 2. A short-term rental that is not occupied by a permanent resident. The
owner lists this property full-time as a short-term rental and has no intention of having permanent
residents living in the property. A conditional use permit is required for a Type 2 short-term rental
prior to the City issuing a business license, except as defined in �118.01(E)(4).
(3) License Required: No dwelling unit in the City shall be used as a short-term rental unless:
(a) The owner of the dwelling unit or operator of the short-term rental possess a valid and
current business license for the dwelling unit, and fully complies with all legal requirements
and duties imposed herein with respect to each and every short-term rental; and
02-24-20 PLANNING COMMISSION
FAYETTEVILLE TITLE XI — BUSINESS REGULATIONS/ CHAPTER 118: STIR EDITS IN STRIKEOUT -UNDERLINE
(b) The owner has designated an agent where said agent fully complies with all legal
requirements and duties imposed herein with respect to every short-term rental. The owner
may serve as their own agent.
(4) 6 Month Start-up Period After the enactment of the short term rental ordinance, existing short
term rental operators shall have 6 months to obtain a business license and be considered in
compliance After the 6 month start-up period all short term rental units must have a business
license to be considered in compliance. To qualify for this exemption as a pre-existing short-
term rental satisfactory proof of operation prior to the enactment date shall be provided to the
city including a copy of a back -dated advertisement listing the unit and a copy of a transaction
prior to the adoption date documenting that the unit was utilized as a short-term rental. Short-
term rentals must also successfully pass an inspection as described in §118.01(E)(9)(e). The
City has complete discretion in determining whether such submitted proof is sufficient and
satisfactory.
(a) Type 2 short-term rentals seeking a business license or permit under the 6-month start-up
period will not be required to obtain a conditional use permit. Any Type 2 short-term rentals
submitting a business license or permit after the 6-month grace period shall be required to
obtain a conditional use permit prior to the City issuing a business license.
(5) No hosting platform shall facilitate or conduct any booking transaction for a short-term rental in
the City without the short-term rental first obtaining and maintaining possession of the requisite
business license.
(6) A separate business license shall be required for each dwelling unit used as a short-term rental.
(7) Any change in ownership requires a new or amended business license.
8) If anv required contact information chanqes for the associated business license, the person to
whom the license was issued shall immediately notify the Development Services Department in
writing.
(9) License Application. The application for a business license shall include at minimum, the
following information from applicants:
(a) The property owner's information including legal name, mailing address, immediate contact
phone number, and immediate contact E-mail address.
(b) Information for the dwelling unit subiect to the application, inclusive of the physical street
address assigned by the City.
(c) The type and total number of dwelling units located on the lot of record containing the
dwelling unit subject to the application.
(d) If the owner is not their own agent, the owner designated agent's information including
legal name, mailing address, immediate contact phone number and immediate contact E-
mail address.
(e) Documentation of approval of a life safety and egress inspection by the City Building Safety
Division for the dwelling unit subject to the application.
(f) Proof of application for remittance of Hotel, Motel and Restaurant tax to the City of
Fayetteville, and verification that all sales, use, and Hotel, Motel and Restaurant taxes are
current.
(q) Any additional data as deemed necessary or desirable for permit approval by the Zoning
and Development Administrator.
(10) License Renewals. Business licenses for short-term rentals shall be renewed in accordance
with Chapter 118 of the Business Regulations (Business Registry and Licenses).
02-24-20 PLANNING COMMISSION
FAYETTEVILLE TITLE XI — BUSINESS REGULATIONS/ CHAPTER 118: STR EDITS IN STRIKEOUT -UNDERLINE
(11) Legal Duties of License Holders. An owner possessing a short-term rental license shall comply
at all times with the following requirements:
(a) Occupancy. Short-term rentals shall be subject to and may not exceed the occupancy
limits approved with the business license. Exceptions to the occupancy standards for short-
term rentals may be granted by the Planning Commission as a conditional use permit
(b) Advertisements. A short-term rental shall not be advertised if it violates occupancy, density,
safety, and any of the other provisions of the Fayetteville Code. No short-term rental unit
shall be advertised prior to having obtained a business license and the business license
number shall be included in the advertisement listing. No hosting platform or owner/agent
may offer, advertise, book, facilitate or engage in short-term rental activity or
advertisement that violates any provision of the short-term rental code.
(c) Information and Posting. Business licensees shall provide to quests and post
conspicuously in the common area of the short-term rental unit the City phone number to
report a safety complaint.
(12) Owner or Agent Accessibility. The property owner shall ensure that they or a designated agent
are available at all times during quest occupancy, including nights and weekends in order to
facilitate compliance with this section. For the purposes of these regulations, 'availability' means
that the owner or agent is accessible by telephone, and, able to be physically present at the
short-term rental within one (1) hour of being contacted.
(13) Guest records. The owner shall maintain summary quest registration records, which shall
contain the actual dates of occupancy, total number of quests per party per stay, and the rate(s)
charged, but shall not contain any personally identifiable information about quests. Such records
shall be maintained for three years and shall be provided to the City upon request.
(14) Health and safety. The owner shall ensure that each dwelling unit governed by this section
complies with the applicable provisions of the Unified Development Code Chapter 173: Building
Regulations.
(15) Criminal activity. The owner shall timely report any known or reasonably suspected criminal
activity by a quest to the Fayetteville Police Department.
(16) Taxes and fees. Except for those instances in which a hosting platform bears the responsibility
for collecting and remitting taxes and fees applicable to short-term rentals, the property owner
shall timely remit in full Fayetteville Hotel, Motel and Restaurant tax and other applicable local,
state, and federal taxes and City fees owed in connection with any short-term rental. The failure
of a hosting platform to collect and remit taxes and fees shall not relieve an owner of the
obligation to pay taxes and fees owed pursuant to this section.
(17) Authorization to Occupy, Use, and Operate. Authorization to operate a short-term rental may be
granted by the Zoning and Development Administrator through the issuance of a City of
Fayetteville Business Registry and License (business license).
(18) Density For Type 2 Short-term Rentals. A city-wide density cap of two percent (2%) of all
dwelling units in the Fayetteville city limits may be utilized as Type 2 rentals. Total dwelling units
are determined from current United States Census Bureau and/or American Community Survey
numbers, whichever number is higher. A conditional use permit may not permit:
a) More Tvpe 2 short-term rentals than what is allowed by the citv-wide densitv ca
(b) More than two (2) dwellings units as Type 2 rentals within a multi -family dwelling complex.
(c) Individual 2-family. 3 and 4-family buildings that are not a part of a multi -family complex
shall have no more than one (1) Type 2 short term rental unit per building complex.
(d) Type 2 short-term rentals in commercial and mixed -use zoning districts where hotel/motels
are permitted by right shall not count towards the city-wide density cap.
02-24-20 PLANNING COMMISSION
FAYETTEVILLE TITLE XI — BUSINESS REGULATIONS/ CHAPTER 118: STR EDITS IN STRIKEOUT -UNDERLINE
(19) Suspension and Revocation If the Zoning and Development Administrator has reason to believe
that any of the grounds specified in §118 03(A) of the Fayetteville Code exist, or that any rental
unit was rented for less than one full night or to more than one part of guests for the same
period of time or otherwise failed to comply with all terms and conditions of this section the
Zoning and Development Administrator may suspend or revoke the short-term rental's business
license pursuant to the procedures detailed in §118.03 and in §118.04 of the Fayetteville Code.
(20) Short-term rentals must comply with all applicable codes under Unified Development Code
Chapter 163.18 and successfully obtain a business license prior to operation.
FAYETTEVILLE TITLE XV - UDC/ CHAPTER 1S1: STIR EDITS IN STRIKEOUT -UNDERLINE
CHAPTER 151: DEFINITIONS
Agent, Owner -Designated. A person designated by the owner of a property, where designee has a physical
address within the City of Fayetteville is accessible 24-hours a day, and otherwise in compliance with the
UDC requirements for short-term rentals. The owner may serve as their own agent
Bedroom. A fully enclosed portion of a building designed or intended to be used principally for sleeping
purposes.
Bookinq transaction. Any contractual agreement between a quest and an owner relative to a short-term
rental.
Dwelling unit (zoning). One (1) room, or rooms connected together, constituting a separate, independent
housekeeping establishment for owner occupancy, or rental or lease on a weekly, monthly, or longer basis,
and physically separated from any other rooms or dwelling units which may be in the same structure, and
containing independent cooking and sleeping facilities.
Guest, Short-term rental. Any person who occupies a short-term rental, for a period of less than 30
consecutive days, pursuant to a short-term rental lease term and/or other like agreement for the purposes
of temporary lodging.
Host, Short-term rental. The owner(s) of a short-term rental who has authority to offer the dwelling unit,
portion thereof, or a room within the dwelling unit as a legal short-term rental.
Owner. A person who owns at least a 50 percent interest in a dwelling unit used for short-term rentals.
Permanent residential dwelling. A structure that has been legally permitted or is a legal, non -conforming
structure allowed for permanent occupancy as a residential dwelling.
Hosting Platform. A person or entity that participates in the short-term rental business by providing and
collecting or receiving a fee(s) for facilitating booking transactions through which a short-term rental host
may offer a short-term rental to a short-term rental quest. Hosting platforms typically, though not always,
facilitate booking transactions through an on line platform that allows a short-term rental host to advertise
the short-term rental through a website provided by the hosting platform and the hosting platform conducts
a transaction by which potential short-term rental quest reserve a questroom(s) and arrange payment,
whether the short-term rental quest pays rent directly to the short-term rental host or to the hosting platform.
Short-term rental. A residential dwelling unit, portion of a dwelling unit, or room within a residential dwelling
unit, leased and/or rented to a quest(s), for a period of less than thirty consecutive (30) days.
Short-term rental, Type 1. A short-term rental where the principal use of the property remains as a full-time
residence. The occupants or owner rent their primary residence as a short-term rental. A copy of the
Homestead Tax Credit or long-term lease agreement for the subject property is required to be classified as
a Type 1 rental. Accessory dwelling units (ADUs) as defined in Unified Development Code Chapter 151
shall be considered a Type 1 short-term rental.
Short-term rental, Type 2. A short-term rental that is not occupied by a permanent resident. The owner lists
this property full-time as a short-term rental and has no intention of having permanent residents living in the
Property. A conditional use permit is required for a Type 2 short-term rental prior to the City issuing a
business license.
FAYETTEVILLE TITLE XV - UDC/ CHAPTER 161: STR EDITS IN STRIKEOUT -UNDERLINE
CHAPTER 161: - ZONING REGULATIONS
161.02 - Zoning Compliance And Business License
(A) Required. It shall be unlawful to use or occupy or permit the use or occupancy of any building or
premises, or both, or part thereof hereafter created, erected, changed, converted, or wholly or partly
altered, or enlarged in its use or structure until a business license has been issued by the Zoning and
Development Administrator stating that the proposed use of the building or land conforms to the
requirements of this chapter.
(B) Conforming Uses. Uses permitted within the underlying zoning district shall be eligible for a
business license, subject to §118 of the Fayetteville Code.
(C) Nonconforming Uses.
(1) Except for short-term rental units subiect to chapter 163 of the UDC, uses within the following
use unit categories established prior to September 7, 2010 and operating in a zoning district
that does not currently allow the use, are for the purposes of zoning compliance determined to
be an existing nonconforming use, may continue to operate and are eligible to obtain a city
business license. The exemption shall not be construed as relieving the owner or operator of
such business from the regulations of the business license ordinance, including grounds for
suspension and revocation, or from any other applicable federal, state, or city regulations.
Use Units
3 Public protection facilities
4 Cultural and recreational facilities
5 Government facilities
6 Agricultural
7 Animal husbandry
12a Limited business
13 Eating places
15 Neighborhood shopping goods
24 Home occupation
25 Offices, studios, and related services
FAYETTEVILLE TITLE XV - UDC/ CHAPTER 161: STR EDITS IN STRIKEOUT -UNDERLINE
(2) Except for short-term rental units subject to chapter 163 of the UDC uses within the following
use unit categories established prior to July 15, 2003 and operating in a zoning district that does
not currently allow the use, are for the purposes of zoning compliance determined to be an
existing nonconforming use, may continue to operate and are eligible to obtain a city business
license. The exemption shall not be construed as relieving the owner or operator of such
business from the regulations of the business license ordinance, including grounds for
suspension and revocation, or from any other applicable federal, state, or city regulations.
Use Units
2 City-wide uses by conditional use permit
14 Hotel, motel and amusement facilities
16 Shopping goods
17 Transportation trades and services
18 Gasoline service stations & drive in/drive
through restaurants
19 Commercial recreation, small sites
20 Commercial recreation, large sites
21 Warehousing and wholesale
22 Manufacturing
23 Heavy industrial
Wholesale bulk petroleum storage
27 facilities with
underground tanks
28 Center for collecting recyclable materials
29 Dance halls
30 Extractive uses
FAYETTEVILLE TITLE XV - UDC/ CHAPTER 161: STR EDITS IN STRIKEOUT -UNDERLINE
31 Facilities emitting odors/handling
explosives
32 Sexually oriented businesses
33 Adult live entertainment club or bar
34 Liquor stores
35 Outdoor music establishments
36 Wireless communications facilities
38 Mini -storage units
39 Auto salvage and junk yards
40 Sidewalk cafes
42 Clean technologies
43 Animal boarding and training
161.03 - District R-A, Residential -Agricultural
(B) Uses.
(1)
Permitted Uses.
Unit 1
City-wide uses by right
Unit 3
Public protection and utility facilities
Unit 6
Agriculture
Unit 7
Animal husbandry
Unit 8
Single-family dwellings
FAYETTEVILLE TITLE XV - UDC/ CHAPTER 161: STR EDITS IN STRIKEOUT -UNDERLINE
Unit 9 Two-family dwellings
Unit 37 Manufactured homes
Unit 41 Accessory dwellings
Unit 43 Animal boarding and training
Unit 46 Short-term rentals
161.04 - District RSF-.5, Residential Single -Family - One Half (Y2) Unit Per Acre
(B) Uses.
(1) Permitted Uses.
Unit 1 City-wide uses by right
Unit 8 Single-family dwellings
Unit 41 Accessory dwellings
Unit 46 Short-term rentals
161.05 - District RSF-1, Residential Single -Family - One (1) Unit Per Acre
(B) Uses.
(C) Permitted Uses.
Unit 1
City-wide uses by right
Unit 8
Single-family dwellings
Unit 41
Accessory dwellings
Unit 46
Short-term rentals
FAYETTEVILLE TITLE XV - UDC/ CHAPTER 161: STR EDITS IN STRIKEOUT -UNDERLINE
161.06 - District RSF-2, Residential Single -Family -Two (2) Units Per Acre
(B) Uses.
(C) Permitted Uses.
Unit 1 City-wide uses by right
Unit 8 Single-family dwellings
Unit 41 Accessory dwellings
Unit 46 Short-term rentals
161.07 - District RSF-4, Residential Single -Family - Four (4) Units Per Acre
(B) Uses.
(1) Permitted Uses.
Unit 1 City-wide uses by right
Unit 8 Single-family dwellings
Unit 41 Accessory dwellings
Unit 46 Short-term rentals
161.08 - District RSF-7, Residential Single -Family - Seven (7) Units Per Acre
(B) Uses.
(1) Permitted Uses.
Unit 1 City-wide uses by right
Unit 8 Single-family dwellings
Unit 41 Accessory dwellings
Unit 46 Short-term rentals
FAYETTEVILLE TITLE XV - UDC/ CHAPTER 161: STR EDITS IN STRIKEOUT -UNDERLINE
161.09 - District RSF-8, Residential Single -Family - Eight (8) Units Per Acre
(B) Uses.
(1) Permitted Uses.
Unit 1 City-wide uses by right
Unit 8 Single-family dwellings
Unit 41 Accessory dwellings
Unit 46 Short-term rentals
161.10 - District RSF-18, Residential Single -Family - Eighteen (18) Units Per Acre
(B) Uses.
(1) Permitted Uses.
Unit 1 City-wide uses by right
Unit 8 Single-family dwellings
Unit 41 Accessory dwellings
Unit 46 Short-term rentals
161.11 - District RI-12, Residential Intermediate, Twelve (12) Units Per Acre
(B) Uses.
(1) Permitted Uses.
Unit 1 City-wide uses by right
-r--
Unit 8 Single-family dwellings
Unit 9 Two (2) family dwellings
Unit 10 Three (3) and four (4) family dwellings
FAYETTEVILLE TITLE XV - UDC/ CHAPTER 161: STR EDITS IN STRIKEOUT -UNDERLINE
Unit 41 Accessory dwellings
Unit 44 Cluster Housing Development
Unit 46 Short-term rentals
161.12 - District RI-U, Residential Intermediate - Urban
(B) Uses.
(1) Permitted Uses.
Unit 1 City-wide uses by right
Unit 8 Single-family dwellings
Unit 9 Two (2) family dwellings
Unit 10 Three (3) and four (4) family dwellings
Unit 41 Accessory dwellings
Unit 44 Cluster housing development
Unit 46 Short-term rentals
161.13 - District RMF-6, Residential Multi -Family - Six (6) Units Per Acre
(B) Uses.
(1) Permitted Uses.
Unit 1 City-wide uses by right
Unit 8 Single-family dwellings
Unit 9 Two-family dwellings
FAYETTEVILLE TITLE XV - UDC/ CHAPTER 161: STR EDITS IN STRIKEOUT -UNDERLINE
Unit 10 Three (3) and four (4) family dwellings
Unit 26 Multi -family dwellings
Unit 41 Accessory dwellings
Unit 44 Cluster Housing Development
Unit 46 Short-term rental
161.14 - District RMF-12, Residential Multi -Family - Twelve (12) Units Per Acre
(B) Uses.
(1) Permitted Uses.
Unit 1 City-wide uses by right
Unit 8 Single-family dwellings
Unit 9 Two-family dwellings
Unit 10 Three (3) and four (4) family dwellings
Unit 26 Multi -family dwellings
Unit 41 Accessory dwellings
Unit 44 Cluster Housing Development
Unit 46 Short-term rental
161.15 - District RMF-18, Residential Multi -Family - Eighteen (18) Units Per Acre
(B) Uses.
(1) Permitted Uses.
FAYETTEVILLE TITLE XV - UDC/ CHAPTER 161: STIR EDITS IN STRIKEOUT -UNDERLINE
Unit 1 City-wide uses by right
Unit 8 Single-family dwellings
Unit 9 Two-family dwellings
Unit 10 Three (3) and four (4) family dwellings
Unit 26 Multi -family dwellings
Unit 41 Accessory dwellings
Unit 44 Cluster Housing Development
Unit 46 Short-term rental
161.16 - District RMF-24, Residential Multi -Family - Twenty -Four (24) Units Per Acre
(B) Uses.
(1) Permitted Uses.
Unit 1 City-wide uses by right
Unit 8 Single-family dwellings
Unit 9 Two-family dwellings
Unit 10 Three (3) and four (4) family dwellings
Unit 26 Multi -family dwellings
Unit 41 Accessory dwellings
Unit 44 Cluster Housing Development
Unit 46 Short-term rental
FAYETTEVILLE TITLE XV - UDC/ CHAPTER 161: STR EDITS IN STRIKEOUT -UNDERLINE
161.17 - District RMF-40, Residential Multi -Family - Forty (40) Units Per Acre
(B) Uses.
(1) Permitted Uses.
Unit 1 City-wide uses by right
Unit 8 Single-family dwellings
Unit 9 Two-family dwellings
Unit 10 Three (3) and four (4) family dwellings
Unit 26 Multi -family dwellings
Unit 41 Accessory dwellings
Unit 44 Cluster Housing Development
Unit 46 Short-term rental
161.18 - NS-L, Neighborhood Services - Limited
(B) Uses.
(1) Permitted Uses.
Unit 1 City-wide uses by right
Unit 8 Single-family dwellings
Unit 9 Two (2) family dwellings
Unit 10 Three (3) and four (4) family
dwellings
Unit
Limited Business
12a
Unit 24 Home occupations
FAYETTEVILLE TITLE XV - UDC/ CHAPTER 161: STIR EDITS IN STRIKEOUT -UNDERLINE
Unit 40 Sidewalk cafes
Unit 41
Accessory dwelling units
Unit 44
Cluster housing development
Unit 46
Short-term rental
161.19 - NS-G, Neighborhood Services - General
(B) Uses.
(1) Permitted Uses.
Unit 1 City-wide uses by right
Unit 8 Single-family dwellings
Unit 9 Two-family dwellings
Unit 10 Three (3) and four (4) family
dwellings
Unit 12b General business
Unit 24 Home occupations
Unit 40 Sidewalk cafes
Unit 41
Accessory dwelling units
Unit 44
Cluster housing development
Unit 46
Short-term rental
161.20 - District R-O, Residential Office
(B) Uses.
FAYETTEVILLE TITLE XV - UDC/ CHAPTER 161: STR EDITS IN STRIKEOUT -UNDERLINE
(1) Permitted uses.
Unit 1 City-wide uses by right
Unit 5 Government facilities
Unit 8 Single-family dwellings
Unit 9 Two-family dwellings
Unit 12a Limited business
Unit 25 Offices, studios, and related services
Unit 41 Accessory dwellings
Unit 44 Cluster Housing Development
Unit 46 Short-term rental
161.22 - Community Services
(B) Uses.
(1) Permitted Uses.
Unit 1 City-wide uses by right
Unit 4 Cultural and recreational facilities
Unit 5 Government facilities
Unit 8 Single-family dwellings
Unit 9 Two-family dwellings
Unit 10 Three (3) and four (4) family dwellings
Unit 13 Eating places
FAYETTEVILLE TITLE XV - UDC/ CHAPTER 161: STIR EDITS IN STRIKEOUT -UNDERLINE
Unit 15 Neighborhood Shopping goods
Gasoline service stations and drive -
Unit 18
in/drive through restaurants
Unit 24 Home occupations
Unit 25 Offices, studios and related services
Unit 26 Multi -family dwellings
Unit 40 Sidewalk Cafes
Unit 41 Accessory dwellings
Unit 44 Cluster Housing Development
Unit 45 Small scale production
Unit 46 Short-term rental
161.24 - Urban Thoroughfare
(B) Uses.
(1)
Permitted Uses.
Unit 1
City-wide uses by right
Unit 4
Cultural and recreational facilities
Unit 5
Government facilities
Unit 8
Single-family dwellings
Unit 9
Two (2) family dwellings
Three (3) and four (4) family
Unit 10
dwellings
FAYETTEVILLE TITLE XV - UDC/ CHAPTER 161: STIR EDITS IN STRIKEOUT -UNDERLINE
Unit 13 Eating places
Unit 14 Hotel, motel and amusement
services
Unit 16 Shopping goods
Unit 17 Transportation trades and services
Gasoline service stations and drive -
Unit 18
in/drive through restaurants
Unit 19 Commercial recreation, small sites
Unit 24 Home occupations
Unit 25 Offices, studios, and related
services
Unit 26 Multi -family dwellings
Unit 34 Liquor store
Unit 40 Sidewalk cafes
Unit 41 Accessory Dwellings
Unit 44 Cluster Housing Development
Unit 45 Small scale production
Unit 46 Short-term rental
161.25 - District C-3, Central Commercial
(B) Uses.
(1) Permitted Uses.
FAYETTEVILLE TITLE XV - UDC/ CHAPTER 161: STR EDITS IN STRIKEOUT -UNDERLINE
Unit 1 City-wide uses by right
Unit 4 Cultural and recreational facilities
Unit 5 Government facilities
Unit 13 Eating places
Unit 14 Hotel, motel, and amusement
facilities
Unit 16 Shopping goods
Gasoline service stations & drive-in
Unit 18
restaurants
Unit 19 Commercial recreation, small sites
Unit 25 Offices, studios, and related services
Unit 26 Multi -family dwellings
Unit 34 Liquor stores
Unit 40 Sidewalk Cafes
Unit 44 Cluster Housing Development
Unit 45 Small scale production
Unit 46 Short-term rental
161.26 - Downtown Core
(B) Uses.
(1) Permitted Uses.
Unit 1 City-wide uses by right
FAYETTEVILLE TITLE XV - UDC/ CHAPTER 161: STIR EDITS IN STRIKEOUT -UNDERLINE
Unit 4 Cultural and recreational facilities
Unit 5
Government facilities
Unit 8
Single-family dwellings
Unit 9
Two-family dwellings
Three (3) and four (4) family
Unit 10
dwellings
Unit 13
Eating places
Hotel, motel, and amusement
Unit 14
facilities
Unit 16
Shopping goods
Unit 17
Transportation trades and services
Unit 19
Commercial recreation, small sites
Unit 24
Home occupations
Offices, studios, and related
Unit 25
services
Unit 26
Multi -family dwellings
Unit 34
Liquor stores
Unit 40
Sidewalk Cafes
Unit 41
Accessory dwellings
Unit 44
Cluster Housing Development
Unit 45
Small scale production
Unit 46
Short-term rental
FAYETTEVILLE TITLE XV - UDC/ CHAPTER 161: STIR EDITS IN STRIKEOUT -UNDERLINE
161.27 - Main Street/Center
(B) Uses.
(1)
Permitted uses.
Unit 1
City-wide uses by right
Unit 4
Cultural and recreational facilities
Unit 5
Government facilities
Unit 8
Single-family dwellings
Unit 9
Two-family dwellings
Three (3) and four (4) family
Unit 10
dwellings
Unit 13
Eating places
Hotel, motel, and amusement
Unit 14
facilities
Unit 16
Shopping goods
Unit 17
Transportation trades and services
Unit 19
Commercial recreation, small sites
Unit 24
Home occupations
Offices, studios, and related
Unit 25
services
Unit 26
Multi -family dwellings
Unit 34
Liquor stores
Unit 40
Sidewalk Cafes
Unit 41
Accessory dwellings
FAYETTEVILLE TITLE XV - UDC/ CHAPTER 161: STR EDITS IN STRIKEOUT -UNDERLINE
Unit 44 Cluster Housing Development
Unit 45 Small scale production
Unit 46 Short-term rental
161.28 - Downtown General
(B) Uses.
(1) Permitted Uses.
Unit 1 City-wide uses by right
Unit 4 Cultural and recreational facilities
Unit 5 Government facilities
Unit 8 Single-family dwellings
Unit 9 Two-family dwellings
Unit 10 Three (3) and four (4) family dwellings
Unit 13
Eating places
Unit 15
Neighborhood shopping goods
Unit 24
Home occupations
Unit 25
Offices, studios, and related services
Unit 26
Multi -family dwellings
Unit 40
Sidewalk Cafes
Unit 41 Accessory dwellings
Unit 44 Cluster Housing Development
FAYETTEVILLE TITLE XV - UDC/ CHAPTER 161: STR EDITS IN STRIKEOUT -UNDERLINE
Unit 45 Small scale production
Unit 46 Short-term rental
161.29 - Neighborhood Conservation
(B) Uses.
(1) Permitted Uses.
Unit 1 City-wide uses by right
Unit 8 Single-family dwellings
Unit 41 Accessory dwellings
Unit 46 Short-term rental
FAYETTEVILLE TITLE XV - UDC/ CHAPTER 162: STR EDITS IN STRIKEOUT -UNDERLINE
CHAPTER 162: - USE UNITS
162.01 - Establishment/Listing
The various use units referred to in the zoning district provisions are herein listed in numerical order.
Within the use units, the permitted uses are ordinarily listed in alphabetical order. In these use units
where there is a preliminary descriptive statement (which may mention specific uses) in addition to the
detailed list of uses, the detailed list shall govern.
Unit 1 City-wide uses by right
Unit 2 City-wide uses by conditional use permit
Unit 3 Public protection and utility facilities
Unit 4 Cultural and recreational facilities
Unit 5 Government facilities
Unit 6 Agriculture
Unit 7 Animal husbandry
Unit 8 Single-family dwellings
Unit 9 Two-family dwellings
Unit 10 Three (3) and four (4) family dwellings
Unit 11 Manufactured home park
Unit 12a Limited business
Unit 12b General business
Unit 13 Eating places
Unit 14 Hotel, motel and amusement facilities
Unit 15 Neighborhood shopping goods
Unit 16 Shopping goods
FAYETTEVILLE TITLE XV - UDC/ CHAPTER 162: STR EDITS IN STRIKEOUT -UNDERLINE
Unit 17
Transportation Trades and services
Gasoline service stations and drive-in/drive
Unit 18
through restaurants
Unit 19
Commercial recreation, small sites
Unit 20
Commercial recreation, large sites
Unit 21
Warehousing and wholesale
Unit 22
Manufacturing
Unit 23
Heavy industrial
Unit 24
Home occupation
Unit 25
Offices, studios, and related services
Unit 26
Multi -family dwellings
Wholesale bulk petroleum storage facilities
Unit 27
with underground storage tanks
Unit 28
Center for collecting recyclable materials
Unit 29
Dance halls
Unit 30
Extractive uses
Facilities emitting odors & facilities
Unit 31
handling explosives
Unit 32
Sexually oriented business
Unit 33
Adult live entertainment club or bar
Unit 34
Liquor stores
Unit 35
Outdoor music establishments
FAYETTEVILLE TITLE XV - UDC/ CHAPTER 162: STR EDITS IN STRIKEOUT -UNDERLINE
Unit 36
Wireless communications facilities
Unit 37
Manufactured homes
Unit 38
Mini -storage units
Unit 39
Auto salvage and junk yards
Unit 40
Sidewalk Cafes
Unit 41
Accessory dwellings
Unit 42
Clean technologies
Unit 43
Animal boarding and training
Unit 44
Cluster Housing Development
Unit 45
Small scale production
Unit 46
Short-term rental
(0) Unit 14. Hotel, Motel, and Amusement Facilities.
(1) Description. Unit 14 consists of hotels, motels, and certain types of amusement facilities.
(2) Included Uses.
Hotel
Membership lodge
Motel
Motion picture theater
Night club, not providing dancing or outdoor music
Tavern, not providing dancing or outdoor music
Use Unit46, Short-term rental is also permitted within Use
FAYETTEVILLE TITLE XV - UDC/ CHAPTER 162: STR EDITS IN STRIKEOUT -UNDERLINE
Unit 14
(UU) Unit 46. Short-term rental.
(1) Description. Unit 46 is provided to allow a permanent residential dwelling unit, portion of a
residential dwelling unit or room within a residential dwelling unit, to be leased and/or rented to
a quest(s) for a period of less than thirty (30) consecutive days.
(2) Included Uses.
Short-term rentals
02-24-20 PLANNING COMMISSION
FAYETTEVILLE TITLE XV - UDC/ CHAPTER 163: STR EDITS IN STRIKEOUT -UNDERLINE
CHAPTER 163: - USE CONDITIONS
163.01 - Listing
The use conditions set forth in this chapter are the following:
Bed and breakfast facilities
Carnival, circus, amusement park or similar temporary
open-air enterprise
Child care, nursery school
Dance halls
Facilities emitting odors and facilities handling explosives
Home occupations
Manufactured homes
Outdoor music establishments
Sexually oriented businesses
Short-term rentals
Tandem lot development
Wireless communications facilities
163.18 — Short-term rentals
(A) General Standards.
(1) Residential Zoninq Districts. Short-term rentals may be permitted in all zoning districts where
residential uses are allowed by right.
(2) Commercial and Mixed Use Zoning Districts. Short-term rentals may be permitted in all zoning
districts where hotel/motel uses are permitted by right and shall not count towards the Type 2
short-term rental density cap in these districts except in multi -family buildings as specified in
Chapter 118 of the Fayetteville City Code.
02-24-20 PLANNING COMMISSION
FAYETTEVILLE TITLE XV - UDC/ CHAPTER 163: STR EDITS IN STRIKEOUT -UNDERLINE
Occupancy. Maximum of two (2) people per bedroom, plus two (2). with a maximum of eight (8)
people regardless of the number of bedrooms, for the entire unit.
(4) Parking. Parking is limited to the maximum number of vehicles as allowed by the underlying
zoning district for the residential building on the property.
(5) Special events are not permitted in a short-term rental. Example of special events include, but
are not limited to weddings receptions, anniversaries private parties, fundraisers and
business seminars.
(6) Short-term rental units are permitted in any structure established as a permanent residential
dwelling including an accessory dwelling unit. No recreational vehicle trailer, other vehicle or
structure not classified as a permanent residential dwelling may be used as a short-term
rental.
(7) 6 Month Start-up Period. After the enactment of the short-term rental ordinance, existing short-
term rental operators shall have 6 months to obtain a business license and be considered in
compliance. After the 6-month start-up period, all short-term rental units must have a business
license to be considered in compliance. To qualify for this exemption as a pre-existing short-
term rental, satisfactory proof of operation prior to the enactment date shall be provided to the
city including a copy of a back -dated advertisement listing the unit and a copy of a transaction
prior to the adoption date documenting that the unit was utilized as a short-term rental. Short-
term rentals must also successfully pass an inspection as described in §118.01(E)(9)(e). The
City has complete discretion in determining whether such submitted proof is sufficient and
satisfactory.
(a_) Type 2 short-term rentals seeking a business license or permit under the 6-month start-
up period will not be required to obtain a conditional use permit. Any Type 2 short-term
rentals submitting a business license or permit after the 6-month grace period shall be
required to obtain a conditional use permit prior to the City issuing a business license.
(8) Exceptions. Exceptions to the short-term rental standards, except proposals that would
exceed the city-wide density maxmum, may be granted by the Planning Commission as a
conditional use permit.
(9) Short-term rentals must comply with all applicable codes under City Code Section 118.01 and
successfully obtain a business license prior to operation.
Submit Public Comment
This page is provided for efficient submission of public comment for City Council and Planning
Commission meetings. All submissions must be directly related to a specific agenda item for the
next meeting.
Please ensure your comments conform to the Rules of Order and Procedure.
RULES OF ORDER AND PROCEDURE OF THE FAYETTEVILLE CITY COUNCIL
Full Name* Mary Cay Crow
Address or Ward* Address
Ward
Locate Your Ward Number
Address* 330 West Holly Street
Phone Number 4792257976
Email marycay330@yahoo.com
Meeting Body* City Council
Agenda Item Air B and Breakfast limitation of number of guests
Number/Subject
Locate City Council Agenda Item
Locate Planning Commission Agenda Item
Position Comment Only
Comments I understand the city council will discuss possible regulations for Air and Bs
December 1. In our neighborhood there is an air BB on Holly that rents to an
excessive number of guests. Weekend before last there were 11 vehicles in
residence there. Holly is a small neighborhood street and the vehicles were parked
all over our family neighborhood. In addition to placing reasonable limits on the
number of guests (? Per bedroom?) .Please also consider limiting to 1 vehicle per
bedroom. It would help if the regulations are published and include how residents
can report infractions.
Thank you
Attachments
Section from the RULES OF ORDER AND PROCEDURE OF THE FAYETTEVILLE CITY
COUNCIL Adopted 01/07/2020 by Resolution #01-20 & Amended 06/16/2020 by
Resolution #170-20:
Public Comments. Public comment at a City C ouncil meeting shall be allowed for all members of the audience
who have Si21led up prior to the beginning of the auenda item they wish to address being opened for public
comment. Speakers shall be limited to a maximum of five (5) minutes to be broken into segments of three and two
minutes. ;Amendments may receive public comments only if approved by the City Council by unanimous consent or
majority vote. if public comment is allowed for an amendment, speakers will only be allowed to speak for three 0)
minutes. The City Council may allow both a speaker additional time and an unsigned -up person to speak by
unanimous consent or majority vote
Courte y anAlRe2pS&L All members of the public. all city staff and elected officials shall accord the utmost courtesy and
respect to each other at all times. All shall refrain from rude or derogatory remarks. reflections as to integrity, abusive
comments and statements about motives or personalities. Any member of the public who violates these standards shall
be ruled out of order by the Mayor must immediately cease speaking and shall leave the podium.
Enter the text you want this field to display
Short Term Rentals
Garner Stoll, Development Services Director
Mary McGetrick, Long Range Planning Manager
Introduction
• A short-term rental (STR) is the leasing out of a
furnished residential dwelling on a short-term basis,
generally less than a 30 days.
• Pre-Covid it is estimated that there were approximately
500-600 STR units in Fayetteville.
• Fayetteville's codes do not have specific rules for STRs
and they are classified as hotels/motels in the zoning
code. This prevents them from legally operating in a
single-family district and there are numerous STRs
currently in violation.
CITY OF
FAYETTEVILLE
ARKANS
ARKANSAS
Residency: A permanent resident does not have to
live in the STR dwelling
Residential Zoning Districts: Short-term rentals
may be permitted in all zoning districts where
residential uses are allowed by right.
Commercial and Mixed Use Zoning Districts:
Short-term rentals may be permitted in all zoning
districts where hotel/motel uses are permitted by right
and shall not count towards the Type 2 short-term
rental density cap in these districts except in multi-
family buildings as specified in Chapter 118 of the
Fayetteville City Code.
Occupancy: Maximum of 2 people per bedroom plus
2, with a maximum of 8 people regardless of the
number of bedrooms. A definition of bedroom is
included.
FAYETTEVILLE
ARKANSAS
Special events: No parties or special events allowed
in STRs by right
Parking: Parking is limited to the maximum number of
vehicles as allowed by the underlying zoning district
for the residential building on the property.
Short-term rental units: Any structure established as
a permanent residential dwelling including an
accessory dwelling unit. No recreational vehicle,
trailer, other vehicle or structure not classified as a
permanent residential dwelling may be used as a
short-term rental.
Exceptions: Exceptions to the short-term rental
standards, except proposals that would exceed the
city-wide density maximum, may be granted by the
Planning Commission as a conditional use permit
FAYETTEVILLE
ARKANSAS
STR
Types
Type
«�
Type 1 is a full-time residence.
® The occupants or owner rent their primary
residence as a short-term rental.
® A copy of the Homestead Tax Credit or long-term
leaseaqreement for the subject proTrental.
e�yi5
require to be classified as a Type
® Accessory dwelling units (A D U S) as defined in
Unified D e v e| m e nƒ Code Chapter ] 5] shall be
considered a y p e ] short-term rental.
® Type ]'S are not subject to density limitations.
CITY OF
FAYETTEVILLE
A■KANSAS
STR Types -Type 2
Type 2 is any short-term (less than 30 days) rental that does not qualifyto
be a Type 1 rental that the owner lists this property full-time as a short-term
rental and has no intention of having permanent residents living at the
property.
• A conditional use permit is required prior to use and prior to
receiving a business license. Hotel, motel, and existing, licensed
Bed ancf Breakfast entities shall not be considered short-term
rentals subject to this section.
A conditional use permit may NOT permit the following;
Individual 2-family, 3 and 4-family buildings that are not a part
of a multi -family complex shall have no more than one Type 2
short term rental unit per building complex.
More than two dwellings units as Type 2 rentals within a multi-
family dwelling complex
CITY OF
FAYETTEVILLE
ARKANS
ARKANSAS
Density
Cap
Density limitations: Density limitations only
apply to Type 2 STRs. A city-wide density
cap of one 2% of all dwelling units in the
Fayetteville city limits may be utilized as
Type 2 rentals. Total dwelling units are
determined from current United States
Census Bureau and/or American Community
Survey numbers, whichever number is
higher.
Type 2 short-term rentals in commercial
and mixed -use zoning districts where
hotel/motel are permitted by right shall
not count towards the city-wide density
cap.
Short-term rentals may be permitted in
all zoning districts where hotel/motel
uses are permitted by right and shall not
count towards the Type 2 short-term
rental density cap in these districts
except in multi -family buildings.
• After the enactment of the short-term rental ordinance,
existing short-term rental operators shall have 6 months to
obtain a business license and be considered in
compliance.
• After the 6-month start-up period, all short-term rental
units must have a business license to be considered in
compliance.
GraceType 2 short-term rentals seeking a business license
• yp .se g
Period or permit under the 6-month start-up period will not be
required to obtain a conditional use permit.
• Any Type 2 short-term rentals submitting a business
license or permit after the 6-month grace period shall be
required to obtain a conditional use permit prior to the City
issuing a business license.
• To qualify for this exemption as a pre-existing short-
term rental, satisfactory proof of operation prior go the
enactment date shall be provided to the city including a
copy of a back -dated advertisement listing the unit and a
copy of a transaction prior to the adoption date
documenting that the unit was utilized as a short-term
rental.
• The City has complete discretion in determining
whether such submitted proof is sufficient and satisfactory.
• A short-term rental within the Fayetteville city
limits shall be required to file for the City of
Fayetteville Business Registry and License.
• An owner that operates a short-term
residential rental shall must apply for and
Permitting obtain a business license for each individual
short-term rental.
and
• An owner has desiggnated an agent, he
owner may serve as their own agent but must
Inspection be available by phone at all times during uest
g
occu ancy, includI nights and weekends and
able �o be present al the property with in one
hour.
• Business licensees must beposted
conspicuouslyy common area oftheshort-term
rental unit with the City phone number to report
a safety complaint.
• A life safety and egress inspection by the
City Building Safety Division for the dwelling
units required to obtain a Business License
Thank you!
Mary McGetrick
LONG RANGE PLANNING, CITY OF FAYETTEVILLE
CitvClerk
From: CityClerk
Sent: Friday, December 4, 2020 2:22 PM
To: Bolinger, Bonnie; Pennington, Blake; CityClerk; Eads, Gail; Roberts, Gina; Batker, Jodi;
Johnson, Kimberly; Rogers, Kristin; Williams, Kit; Branson, Lisa; Jordan, Lioneld; Mathis,
Jeana; Paxton, Kara; Petty, Matthew; Mulford, Patti; Norton, Susan; Thurber, Lisa;
Gutierrez, Sonia; Marsh, Sarah; Kinion, Mark; Scroggin, Sloan; Bunch, Sarah; Turk, Teresa;
Smith, Kyle
Cc: Kathy Malstrom
Subject: FW: Airbnb
Please pass this information on to the City Council members for their consideration.
My contact info is
Kathy Malstrom
1348 E Charlee Street
Fayetteville
479-871-5764
1 live in Ward 3
-----Original Message -----
From: Williams, Kit <kwilliams@fayetteville-ar.gov>
Sent: Friday, December 4, 2020 12:11 PM
To: Kathy Malstrom <kkmalst@uark.edu>
Subject: RE: Airbnb
Kathy,
Thanks for your email. The City council needs to hear from citizens like you that are concerned with the downsides
of numerous short-term rentals in the neighborhoods and not just from those now making substantial money by using
their properties in a way that is not consistent with residential zoning protections.
Kit
-----Original Message -----
From: Kathy Malstrom <kkmalst@uark.edu>
Sent: Friday, December 04, 2020 7:35 AM
To: Williams, Kit <kwilliams@fayetteville-ar.gov>
Cc: Kathy Malstrom <kkmalst@uark.edu>
Subject: Airbnb
CAUTION: This email originated from outside of the City of Fayetteville. Do not click links or open attachments unless
you recognize the sender and know the content is safe.
I have some concerns about the recent interest in residents who own properties renting these out short term under
Airbnb guidelines. The residents who own homes in a R-1(single family) or R-2(townhomes, condos) are now subjected
to have the traffic and persons unknown coming and going in their neighborhoods without restrictions.
I can appreciate the fact that property owners have their rights, but it should not be at the expense of residents living in
the neighborhoods that will suffer the consequences of short term rentals Thank you Kathy Malstrom Kkmalst@
uark.edu
npa•jaen@u lslewj>j
woalsleW A4le>l
auoydl Aw woaj luaS
Submit Public Comment
This page is provided for efficient submission of public comment for City Council and Planning
Commission meetings. All submissions must be directly related to a specific agenda item for the
next meeting.
Please ensure your comments conform to the Rules of Order and Procedure.
RULES OF ORDER AND PROCEDURE OF THE FAYETTEVILLE CITY COUNCIL
Full Name* george pipoly
Address or Ward* Address
Ward
Locate Your Ward Number
Address* 81230 legends way, laquinta ca.. 92253
Phone Number 4193517104
Email gpipoly@gmail.com
Meeting Body* City Council
Agenda Item
Number/Subject
Locate City Council Agenda Item
Locate Planning Commission Agenda Item
Position Comment Only
Comments I noticed an article in your newspaper that was picked up by my google news feed
concerning STVR. You would be wise to get information from some California cities
in the Coachella valley, ie Cathedral City, Palm Springs, Palm Desert, Indian Wells
all of which have or in the process of phasing out STVRs in their cities as the
problems associated with them were unmanageable. My city of La Quinta is trying to
save their program. It is very contentious. To date not successfully managed in spite
of multi thousand dollar fines for unruly rental violations, added Sherriff patrols.
dedicated complaint hotlines. Good luck. GM Pipoly
Attachments _
Section from the RULES OF ORDER AND PROCEDURE OF THE FAYETTEVILLE CITY
COUNCIL Adopted 01/07/2020 by Resolution #01-20 & Amended 06/16/2020 by
Resolution #170-20:
Public Comments. I'tIhIiC comment at a Cit% Council meetim, shall he alloticd lur all mcnthcrS ul'thc audience
who have signed up prior to the heginninr 4the agenda item the% %apish to address hein-, opened for puhlic
comment. Speakers Shall he limited to a nta�imum oi' tiae (5) minutes to he hrokcn into segment, of three and two
minutes. Amendment., may receive puhlic comments onh ifapproacd by the CitV Council by unanimous consent or
nrtjority aotc. It' Puhlic comment is allowed liir an amendment. speakers as ill only he allowed to ;peak tur three (31
minutes. The Cin Council ma% allo\N hoth a speaker additional time and an unsiUncd-up person to speak hr
unanimous consent or majority � ote
Courtesy and Respect. All members of the public.. all city staff and elected officials shall accord the utmost courtesy and
respect to each other at all times. All shall refrain from rude or derogatory remarks, reflections as to integrity, abusive
comments and statements about motives or personalities. Any member of the public who violates these standards shall
be ruled out of order by the Mayor. must immediately cease speaking and shall leave the podium.
Enter the text you want this field to display
L14
DEPARTMENTAL CORRESPONDENCE
OFFICE OF THE
CITY :A [ I MVR [ I
TO: Mayor Jordan
City Council
CC- Susan Norton, Chief of Staff
Paul Becker, Finance Director
Mary McGetrick, Long Range Planner
Jonathan Curth Develo ment Ma
p pager
FROM: Kit Williams, City Attorney
DATE: January 12, 2021
Kit Williams
City Attorney
Blake Pennington
Assistant City Attorney
Jodi Batker
Paralegal
RE: Planning Commission's Proposal for Short-term Rental Regulation
Legal Dangers Of Authorizing Much Higher Occupancy Levels for Short -Term
Rentals Than for Normal, Legal 30 Day Plus Rentals
Some Short -Term Rental representatives or operators have demanded that
the City grant even more density than the eight (8) persons per house proposed by
the Planning Commission for short-term rental occupancy. As you know, in a
single family zoning district, the number of not -all -related persons allowed to
reside in a house is THREE (3). However, the proposal before you would almost
TRIPLE this occupancy authorization to EIGHT (8) for a short-term rental.
The City has sometimes had to prosecute owners who rented (as a normal
long-term rental) their house to more than three (3) unrelated persons. This would
have been as a response to neighborhood problems from over -occupancy of such
house. If this Short -Term Rental ordinance is passed as proposed, every regular
long-term rental landlord could challenge the decades old definition of "Family"
that was examined and approved by the United States Department of Housing
and Urban Development. I would hate to lose the protection that previous review
and approval of our "Family" definition has given us.
How could the City explain to a Judge or jury that it is rational to prohibit
more than three unrelated persons in a normal long-term rental while the City
allows as many as eight unrelated persons in a short-term rental? Can we prove
that long-term tenants are inherently more disruptive to a neighborhood than
short-term tenants? Common sense would probably place more concern about
disruptive behavior on tenants only occupying the house for a day or two as
opposed to tenants occupying a residence for at least a month and usually a year
or longer. The City would probably lose such an Equal Protection of the Laws
complaint from owners with long-term tenants.
The likely result of such suit would not only be some Court ordered
monetary damages and attorney fees to be paid by the City, but also the invalidity
of the City's longstanding definition of "Family" for zoning considerations which
has successfully resolved much of the over -occupancy problems for our
neighborhoods during the last two decades. Risking that loss of over -occupancy
protection for our neighborhoods so Short -Term Rental operators can make more
money does not seem to be in our citizens' best interests.
The City Council Members have the policy -making power to make such a
change regardless of any legal cautions from me. However, please remember that
because of the Private Property Protection Act, once the Council has increased the
allowed density for a single-family residence, the Council probably cannot later
go back to the former allowed density even if substantial problems are being
caused to our neighborhoods. An owner/operator could certainly allege such
substantial reduction in the allowed number of "guests" had devalued the
property of an operator of a rental house more than 20%. To maintain the
reduction back to our current levels, the City would have to pay for the claimed
losses of so many home and apartment owners that it would "break the bank."
Thus, any change by the City Council to increase allowed density for rentals,
short-term or otherwise, would probably have to be permanent.
Definitions Need to be Changed to Clearly Distinguish Between Type 1
and Type 2 Short -Term Rentals
I need to present proposed changes in Type 1 and Type 2 definitions to
clarify what the Planning Commission probably intended, but did not express
accurately enough to withstand possible legal challenges. Since such regulations
will be interpreted by a Court in favor of the property owner/operator of a Short -
Term Rental and against the City if there is any ambiguity, we need to ensure the
definitions are very clear and not susceptible to any confusion as to whom they
apply.
z
Proposed Changes to Definitions of Type 1 and Type 2 Short -Term Rentals
"A Type 1 short-term rental is where the owner occupies and lives at the
residence for at least ten (10) months every calendar year, but may rent the
residence as a short-term rental not more than two (2) months any calendar year.
An owner who occupies and lives at a residence at least ten (10) months a year
may use the residence's bedroom or Accessory Dwelling Unit(s) as short-term
rental(s) for the entire year. This new privilege to operate a Type 1 short-term
rental may be revoked by the City Council if the short-term rental's operation
causes neighborhood problems or inconvenience. All occupancy limits shall be as
prescribed by the UDC based upon the zoning district."
If the City Council wants to authorize Type 2 short-term rentals, then its
definition needs to be changed as follows:
"A Type 2 short-term rental includes any short-term rental that does not
qualify as a Type 1 short-term rental and is not a hotel, motel, campground, RV
park, Bed and breakfast or similar commercial lodging entity in a properly zoned
district. A conditional use permit (subject to revocation by the Planning
Commission for causing neighborhood problems or inconvenience) is required for
any Type 2 short-term rental to legally operate in Fayetteville. All occupancy
limits shall be as prescribed by the UDC based upon the zoning district."
3
CITY OF
.'FAYETTEVILLE
ARKANS
ARKANSAS
TO:
FROM
MEETING DATE:
City of Fayetteville City Council
CITY COUNCIL MEMO
Mary McGetrick, Long Range Planning Manger
January 13`h, 2021
SUBJECT: ADM 20-7000 Administrative Item (Amend Fayetteville Code of
Ordinances: Short-term Residential Rentals): Submitted by the
Development Services Department for revisions to the Fayetteville Code of
Ordinances for short-term residential rentals.
RECOMMENDATION:
Staff recommends forwarding the proposed code change to the City Council with a
recommendation for approval.
RECOMMENDED MOTION:
"I move to approve ADM 20-7000 as recommend by City staff."
BACKGROUND:
The short-term rental code amendments were approved by Planning Commission at the ****
meeting. Staff presented a recommended code change along with alternatives. There were
several members of the public at the meeting and a variety of perspectives were shared about
how the city should handle short-term rentals. The recommended code amendments in this report
have been revised to incorporate the legal recommendations from the City Attorney's office. The
primary revisions from the City Attorney's office included relocating many of the short-term rental
requirements from Chapter 163 into Chapter 118, Business Licenses, changing enforcement staff
to the Development Services Director, replacing "shalls" in certain places with "mays", removing
the requirement for liability insurance, and clarifying what is required for building inspection.
A short-term rental (STR) is the leasing out of a furnished residential dwelling on a short-term
basis, generally less than a month. It is estimated that there are approximately 500-600 STR units
in Fayetteville. However, Fayetteville's codes do not have specific rules for STRs and they are
classified as hotels/motels in the zoning code. This prevents them from legally operating in a
single-family district and there are numerous STRs currently in violation. In July 2019 the City
Council adopted Resolution 172-19 directing staff to study and develop an ordinance for STRs
for their consideration.
Public Input: As the first step in studying STRs, the City hosted a focus group on August 19, 2019.
The focus group represented various perspectives including neighborhood representatives,
concerned citizens, rental owners and managers, and hotel owners. The group was guided by a
professional facilitator to identify key issues and recommendations in moving forward with local
rules for STRs. On September 30, 2019, the city hosted an open public input meeting which
allowed all attendees to provide input in writing and verbally on the issues identified by the focus
group. The city staff continued to take comment from the public and elected officials over the last
Mailing Address:
113 W. Mountain Street www.fayetteville-ar.gov
Fayetteville, AR 72701
few months. After reviewing the public comment and completing extensive research on many
cities' short-term rental codes, the City's consultant on the project, Garver LLC, completed a first
draft of revisions to the Fayetteville Code of Ordinance for STRs. This first draft was presented to
the same focus group on January 15, 2020 for their review and comment. Staff presented the
final draft ordinance, for comment, to the focus group on November 51h, 2020
DISCUSSION:
The Development Services Department and their consultant, Garver LLC, have drafted
amendments to the Fayetteville Code of Ordinances for short-term residential rentals. The primary
issues proposed in the previous revisions include the following:
• Location: STRs would be allowed by right in all zoning districts where residential
dwellings and hotel/motel uses are allowed.
• Type 1 and Type 2 STRs: There are two types of STRs. Type 1 is a full-time residence
and Type 2 is a full-time STR. Type 1's are not subject to density limitations, Type 2's are
subject to density limitations.
• Residency: A permanent resident does not have to live in the STR dwelling.
• Occupancy: Maximum of 2 people per bedroom plus 2,
A definition of bedroom is included.
• Permit: a business license must be obtained prior to operation.
• Inspection: prior to approval of a business license the rental unit must pass a safety and
egress inspection conducted by the Fayetteville Building Safety Division. A life safety and
egress inspection will verify the basic life safety requirements like fire alarms and basic
egress requirements like a door. The requirement for an inspection every three years has
been removed; an inspection is only required for the initial license.
• Grace period: 6 months for existing STRs to obtain inspection and business license.
After the enactment of the short-term rental ordinance, existing short-term rental
operators may temporarily continue to operate and shall have up to six months to obtain
a business license and be considered in compliance. After the six month start-up period,
all short- term rental units must have a business license to operate and be considered in
compliance. To qualify for this exemption from having to petition the Planning
Commission to obtain an individualized conditional use permit as a pre-existing short-
term rental, satisfactory proof of operation within the last three years and prior to the
enactment date must be provided to the City such as a copy of an advertisement listing
the unit and a copy of a transaction documenting that the unit was utilized as a short-
term rental within the applicable time period. Short-term rentals must also successfully
pass an inspection as described in §118.01 (E)(9)(e) of the Unified Development Code to
the City's satisfaction.
Type 1 and 2 short-term rentals seeking a business license or permit under the 6-month
start-up period which are currently operating in 2, 3 and 4 unit buildings in which more
than 1 unit is being used as a short-term rental may obtain a business license for all
currently operating short-term rentals.
All Type 2 short-term rentals submitting an application for a business license or permit
after the six month grace period has expired shall be required to obtain an individualized
conditional use permit from the Planning Commission and pass the City's premises
inspection prior to the City being able to issue a business license.
G:\ETC\Development Services Review\2020\Development Services\20-7000 ADM Amend Code of Ord. - Short Term Residential
Rentals
Special events: No parties or special events allowed in STRs by right.
Parking: Parking is limited to the maximum number of vehicles as allowed by the
underlying zoning district for the residential building on the property.
Density limitations: Density limitations only apply to Type 2 STRs. A city-wide density
cap of one percent (2%) of all dwelling units in the Fayetteville city limits may be utilized
as Type 2 rentals. Total dwelling units are determined from current United States Census
Bureau and/or American Community Survey numbers, whichever number is higher. A
conditional use permit may not permit the following:
o (a) More Type 2 short-term rentals than what is allowed by the city-wide density
cap.
o (b) More than ten percent (10 %) dwellings units as Type 2 rentals within a multi-
family dwelling complex
o (c) Individual 2-family, 3 and 4-family buildings that are owned by the same person
or entity are not a part of a multi -family complex shall have no more than one (1)
Type 2 short term rental unit per building complex.
o (d) Type 2 short-term rentals in commercial and mixed -use zoning districts where
hotel/motel are permitted by right shall not count towards the city-wide density cap.
o (e) Short-term rentals may be permitted in all zoning districts where hotel/motel
uses are permitted by right and shall not count towards the Type 2 short-term rental
density cap in these districts except in multi -family buildings as specified in Chapter
Fees: STRs would only be subject to the typical business license and occupancy
inspection fees.
Exceptions: Exceptions to the short-term rental code are subject to review as a
conditional use permit.
Request: Staff requests that the City Council amend chapter 118 of the Business Regulations and
chapters 151, 161, 162, and 163 of the Unified Development Code for short-term rentals. The
code changes are described above and shown in the attached strikeout -highlight version of the
code.
STAFF RECOMMENDATION:
Staff recommends that the City Council approve the code changes as outlined above and
in the attached ordinance.
BUDGET/STAFF IMPACT:
N/A
Attachments/website:
Proposed code changes shown in strikeout — Updated 1/10/21
City of Fayetteville short-term rental website
http://www.fayetteville-ar.gov/3801/Short-Term-Rentals
G:\ETC\Development Services Review\2020\Development Services\20-7000 ADM Amend Code of Ord. - Short Term Residential
Rentals
02-24-20 PLANNING COMMISSION
FAYETTEVILLE TITLE XI — BUSINESS REGULATIONS/ CHAPTER 118: STR EDITS IN STRIKEOUT -UNDERLINE
CHAPTER 118: - BUSINESS REGISTRY AND LICENSES
118.01 -Applicability
(A) General Businesses.
(1) All businesses, institutions, corporations, LLCs, LLPs, partnerships, non-profit associations or
corporations, sole proprietorships or other non -governmental entities with a physical address or
which operates either a legally permitted home occupation or a short-term rental within the
Fayetteville city limits shall be required to file for the City of Fayetteville Business Registry and
License. A covered business or entity with multiple physical addresses in Fayetteville must
obtain a separate business license for each such business address.
(2) In addition, any person or non -governmental entity who has or should have a sales tax permit
and operates out of a physical address within Fayetteville shall be required to file for the City
of Fayetteville Business Registry and License.
(3) In addition, any person or non -governmental entity who is engaged in any trade or occupation
which requires federal or state licenses and who operates out of a physical address within
Fayetteville shall be required to file for the City of Fayetteville Business Registry and License.
(B) Religious Entities. Churches and other religious institutions are exempt from this chapter unless they
are performing functions like daycare that must be licensed by the state or that generate revenue
upon which state sales or use taxes must be paid. The city business license shall not be required
for the religious entity but only for those functions that require a state license or upon which state
sales or use taxes must be paid.
(C) Minors Exempt. No individual under eighteen (18) years of age shall be required to register or obtain
a business license.
(D) Individual Landlords Renting Less Than Three (3) Dwelling Units Exempt. An individual landlord,
not operating as a corporation, LLC, LLP, or other business entity, who rents out less than three (3)
dwelling units, and no commercial, industrial, or institutional unit, site or building shall be exempt
from this chapter. However, a landlord that operates a short-term residential rental shall not be
exempt and must apply for and obtain a business license for each individual short-term rental.
(E) Short-term rentals. A residential dwelling unit, portion of a dwelling unit, or room within a
residential dwelling unit, leased and/or rented to a guest(s), for a period of less than thirty
consecutive (30) days.
Short-term rental, Type 1. A short-term rental where the principal use of the property remains
as a full-time residence. The occupants or owner rent their primary residence as a short-term
rental. A copy of the Homestead Tax Credit or long-term lease agreement for the subject
property is required to be classified as a Type 1 rental. Accessory dwelling units (ADUs) as
defined in Unified Development Code Chapter 151 shall be considered a Type 1 short-term
rental.
Short-term rental, Type 2. A short-term rental that is not occupied by a permanent resident. The
owner lists this property full-time as a short-term rental and has no intention of having permanent
residents living in the property. A conditional use permit is required for a Type 2 short-term rental
prior to the Citv issuino a business license, except as defined in �1 18.01 (E)(4).
(3) License Required: No dwelling unit in the City shall be used as a short-term rental unless:
(a) The owner of the dwelling unit or operator of the short-term rental possess a valid and
current business license for the dwelling unit, and fully complies with all legal requirements
and duties imposed herein with respect to each and every short-term rental; and
02-24-20 PLANNING COMMISSION
FAYETTEVILLE TITLE XI — BUSINESS REGULATIONS/ CHAPTER 118: STIR EDITS IN STRIKEOUT -UNDERLINE
(b) The owner has designated an agent, where said agent fully complies with all legal
requirements and duties imposed herein with respect to every short-term rental. The owner
may serve as their own agent.
(4) 6 Month Start-up Period. After the enactment of the short term rental ordinance, existing short
term rental operators shall have 6 months to obtain a business license and be considered in
compliance. After the 6 month start-up period, all short term rental units must have a business
license to be considered in compliance. To qualify for this exemption as a pre-existing short-
term rental satisfactory proof of operation prior to the enactment date shall be provided to the
city including a copy of a back -dated advertisement listing the unit and a copy of a transaction
prior to the adoption date documenting that the unit was utilized as a short-term rental. Short-
term rentals must also successfully pass an inspection as described in §118.01(E)(9)(e). The
City has complete discretion in determining whether such submitted proof is sufficient and
satisfactory.
(a) jWr the etment of t hort-te enrdice, exi` short-term rental
operators may temporarily continue to operate and shall have up to six months tQ
obtain a bus
After the six
period all short-term rental units must have a business license to operate and be
considered in compliance. To qualify for this exemption from having to petition the
Planning Commission to obtain an individualized conditional use permit as a pre-
existine short-term rental. satisfactory proof of operation within the last three vears
and prior to the enactment date must be provided to the City such as a copy of an
advertisement listing the unit and a copy of a transaction documenting that the unit
was utilized as a short-term rental within the applicable time period. Short-term rentals
must also successfully pass an inspection as described in 4118.01(E)(9)(e) of the
L lriiiCCI1)1TL' luj'nrenl C'uClL' to the City's satisfaction
(b) Type 1 and 2 short-term rentals seeking a business license or permit under the 6-month
start-up period which are currently operating in 2, 3 and 4 unit buildings in which more
than 1 unit is being used as a short-term rental may obtain a business license for all
currently operating short-term rentals.
(c) All Type 2 short-term rentals submitting an application for a business license or permit
after the six month grace period has expired shall be required to obtain an individualized
conditional use permit from the Planning Commission and pass the City's premises
inspection prior to the Cit able to issue a business license.
(5) No hosting platform shall facilitate or conduct any booking transaction for a short-term rental in
the City without the short-term rental first obtaining and maintaining possession of the requisite
business license.
(6) A separate business license shall be required for each dwelling unit used as a short-term rental.
(7) Any change in ownership requires a new or amended business license.
(8) If any required contact information changes for the associated business license, the person to
whom the license was issued shall immediately notify the Development Services Department in
writing.
(9) License Application. The application for a business license shall include at minimum, the
following information from applicants:
(a) The property owner's information including legal name, mailing address, immediate contact
phone number, and immediate contact E-mail address.
(b) Information for the dwelling unit subject to the application, inclusive of the physical street
address assigned by the City.
02-24-20 PLANNING COMMISSION
FAYETTEVILLE TITLE XI — BUSINESS REGULATIONS/ CHAPTER 118: STR EDITS IN STRIKEOUT -UNDERLINE
(c) The type and total number of dwelling units located on the lot of record containing the
dwelling unit subiect to the application.
(d) If the owner is not their own agent, the owner designated agent's information including
legal name, mailing address, immediate contact phone number and immediate contact E-
mail address.
(e) Documentation of approval of a life safety and egress inspection by the City Building Safety
Division for the dwelling unit subject to the application.
(f) Proof of application for remittance of Hotel, Motel and Restaurant tax to the City of
Fayetteville, and verification that all sales, use, and Hotel, Motel and Restaurant taxes are
current.
(g) Any additional data as deemed necessary or desirable for permit approval by the Zoning
and Development Administrator.
(10) License Renewals. Business licenses for short-term rentals shall be renewed in accordance
with Chapter 118 of the Business Regulations (Business Registry and Licenses).
02-24-20 PLANNING COMMISSION
FAYETTEVILLE TITLE XI — BUSINESS REGULATIONS/ CHAPTER 118: STR EDITS IN STRIKEOUT -UNDERLINE
(11) Legal Duties of License Holders. An owner possessing a short-term rental license shall comply
at all times with the following requirements:
limits
term
Short-term rentals shall be subject to, and may not exceed, the o
ad with the business license. Exceptions to the occupancy standards
m
the Planning Commission as a conditional use p
Advertisements. A short-term rental shall not be advertised if it violates occupancy, density,
safety, and any of the other provisions of the Fayetteville Code. No short-term rental unit
shall be advertised prior to having obtained a business license and the business license
number shall be included in the advertisement listing. No hosting platform or owner/agent
may offer, advertise, book, facilitate, or engage in short-term rental activity or
advertisement that violates any provision of the short-term rental code.
(c) Information and Posting. Business licensees shall provide to guests and post
conspicuously in the common area of the short-term rental unit the City phone number to
report a safety complaint.
12) Owner or Agent Accessibility. The property owner shall ensure that they or a d
are available at all times during guest occuoancv. includina niahts and weeks
at the
Of
(13) Guest records. The owner shall maintain summary guest registration records, which shall
contain the actual dates of occupancy, total number of guests per party per stay, and the rate(s)
charged, but shall not contain any personally identifiable information about guests. Such records
shall be maintained for three years and shall be provided to the City upon request.
(14) Health and safety. The owner shall ensure that each dwelling unit governed by this section
complies with the applicable provisions of the Unified Development Code Chapter 173: Building
Regulations.
(15) Criminal activity. The owner shall timely report any known or reasonably suspected criminal
activity by a quest to the Fayetteville Police Department.
(16) Taxes and fees. Except for those instances in which a hosting platform bears the responsibility
for collecting and remitting taxes and fees applicable to short-term rentals, the property owner
shall timely remit in full Fayetteville Hotel, Motel and Restaurant tax and other applicable local,
state, and federal taxes and City fees owed in connection with any short-term rental. The failure
of a hosting platform to collect and remit taxes and fees shall not relieve an owner of the
obligation to pay taxes and fees owed pursuant to this section.
(17) Authorization to Occupy, Use, and Operate. Authorization to operate a short-term rental may be
granted by the Zoning and Development Administrator through the issuance of a City of
Fayetteville Business Registry and License (business license).
(18) Density For Type 2 Short-term Rentals. A city-wide density cap of one percent (2%) of all
dwelling units in the Fayetteville city limits may be utilized as Type 2 rentals. Total dwelling units
are determined from current United States Census Bureau and/or American Community Survey
numbers, whichever number is higher. A conditional use permit may not permit:
(a) More Type 2 short-term rentals than what is allowed by the city-wide density cap.
(b) as Type 2 rentals within a multi -family
dwelling complex.
(c) Individual 2-family, 3 and 4-family buildings
and are not a part of a multi -family complex shall have no more than one (1) Type 2
(d) Type 2 short-term rentals in commercial and mixed -use zoning districts where hotel/motels
are permitted by right shall not count towards the city-wide density cap.
02-24-20 PLANNING COMMISSION
FAYETTEVILLE TITLE XI — BUSINESS REGULATIONS/ CHAPTER 118: STR EDITS IN STRIKEOUT -UNDERLINE
and Revocation. If the Zoning and Development Administrator has reason to believe
ie grounds specified in §118.03(A) of the Fayetteville Code exist, or that anv rental
unit was rented for less than one full night or to more than one part of guests for the same
period of time, or otherwise failed to comply with all terms and conditions of this section the
Zoning and Development Administrator may suspend or revoke the short-term rental's business
license pursuant to the procedures detailed in §118.03 and in §118.04 of the Fayetteville Code.
(20) Short-term rentals must comply with all applicable codes under Unified Development Code
Chapter 163.18 and successfully obtain a business license prior to operation.
FAYETTEVILLE TITLE XV - UDC/ CHAPTER 151: STR EDITS IN STRIKEOUT -UNDERLINE
CHAPTER 151: DEFINITIONS
Agent, Owner -Designated. A person designated by the owner of a property, where designee has a physical
address within the City of Fayetteville is accessible 24-hours a day, and otherwise in compliance with the
UDC requirements for short-term rentals. The owner may serve as their own agent.
Bedroom A fully enclosed portion of a building designed or intended to be used principally for sleeping
purposes.
Booking transaction Any contractual agreement between a quest and an owner relative to a short-term
rental.
Dwelling unit (zoning). One (1) room, or rooms connected together, constituting a separate, independent
housekeeping establishment for owner occupancy, or rental or lease on a weekly, monthly, or longer basis,
and physically separated from any other rooms or dwelling units which may be in the same structure, and
containing independent cooking and sleeping facilities.
Guest, Short-term rental. Any person who occupies a short-term rental, for a period of less than 30
consecutive days, pursuant to a short-term rental lease term and/or other like agreement, for the purposes
of temDorary lodging.
Host, Short-term rental. The owner(s) of a short-term rental who has authority to offer the dwelling unit,
oortion thereof. or a room within the dwelling unit as a legal short-term rental.
Owner. A person who owns at least a 50 percent interest in a dwelling unit used for short-term rentals
Permanent residential dwelling. A structure that has been legally permitted or is a legal, non -conforming
structure allowed for permanent occupancy as a residential dwelling.
Hosting Platform. A person or entity that participates in the short-term rental business by providing and
collecting or receiving a fee(s) for facilitating booking transactions through which a short-term rental host
may offer a short-term rental to a short-term rental guest. Hosting platforms typically, though not always,
facilitate booking transactions through an on line platform that allows a short-term rental host to advertise
the short-term rental through a website provided by the hosting platform and the hosting platform conducts
a transaction by which potential short-term rental guest reserve a guestroom(s) and arrange payment,
whether the short-term rental guest pays rent directly to the short-term rental host or to the hosting platform.
Short-term rental. A residential dwelling unit, portion of a dwelling unit, or room within a residential dwelling
unit, leased and/or rented to a guest(s), for a period of less than thirty consecutive (30) days.
Short-term rental, Type 1. A short-term rental where the principal use of the property remains as a full-time
residence. The occupants or owner rent their primary residence as a short-term rental. A copy of the
Homestead Tax Credit or long-term lease agreement for the subject property is required to be classified as
a Type 1 rental. Accessory dwelling units (ADUs) as defined in Unified Development Code Chapter 151
shall be considered a Type 1 short-term rental.
Short-term rental, Type 2. A short-term rental that is not occupied by a permanent resident. The owner lists
this property full-time as a short-term rental and has no intention of having permanent residents living in the
property. A conditional use permit is required for a Type 2 short-term rental prior to the City issuing a
business license.
FAYETTEVILLE TITLE XV - UDC/ CHAPTER 161: STR EDITS IN STRIKEOUT -UNDERLINE
CHAPTER 161: - ZONING REGULATIONS
161.02 - Zoning Compliance And Business License
(A) Required. It shall be unlawful to use or occupy or permit the use or occupancy of any building or
premises, or both, or part thereof hereafter created, erected, changed, converted, or wholly or partly
altered, or enlarged in its use or structure until a business license has been issued by the Zoning and
Development Administrator stating that the proposed use of the building or land conforms to the
requirements of this chapter.
(B) Conforming Uses. Uses permitted within the underlying zoning district shall be eligible for a
business license, subject to §118 of the Fayetteville Code.
(C) Nonconforming Uses.
(1) Except for short-term rental units subject to chapter 163 of the UDC uses within the following
use unit categories established prior to September 7, 2010 and operating in a zoning district
that does not currently allow the use, are for the purposes of zoning compliance determined to
be an existing nonconforming use, may continue to operate and are eligible to obtain a city
business license. The exemption shall not be construed as relieving the owner or operator of
such business from the regulations of the business license ordinance, including grounds for
suspension and revocation, or from any other applicable federal, state, or city regulations.
Use Units
3 Public protection facilities
4 Cultural and recreational facilities
5 Government facilities
6 Agricultural
7 Animal husbandry
12a ` Limited business
13 Eating places
15 Neighborhood shopping goods
24 Home occupation
25 Offices, studios, and related services
FAYETTEVILLE TITLE XV - UDC/ CHAPTER 161: STR EDITS IN STRIKEOUT -UNDERLINE
(2) Except for short-term rental units subject to chapter 163 of the UDC, uses within the following
use unit categories established prior to July 15, 2003 and operating in a zoning district that does
not currently allow the use, are for the purposes of zoning compliance determined to be an
existing nonconforming use, may continue to operate and are eligible to obtain a city business
license. The exemption shall not be construed as relieving the owner or operator of such
business from the regulations of the business license ordinance, including grounds for
suspension and revocation, or from any other applicable federal, state, or city regulations.
Use Units
2 City-wide uses by conditional use permit
14 Hotel, motel and amusement facilities
16 Shopping goods
17 Transportation trades and services
Gasoline service stations & drive in/drive
18
through restaurants
19 Commercial recreation, small sites
20 Commercial recreation, large sites
21 Warehousing and wholesale
22 Manufacturing
23 Heavy industrial
Wholesale bulk petroleum storage
27 facilities with
underground tanks
28 Center for collecting recyclable materials
29 Dance halls
30 Extractive uses
FAYETTEVILLE TITLE XV - UDC/ CHAPTER 161: STIR EDITS IN STRIKEOUT -UNDERLINE
Facilities emitting odors/handling
31
explosives
32
Sexually oriented businesses
33
Adult live entertainment club or bar
34
Liquor stores
35
Outdoor music establishments
36
Wireless communications facilities
38
Mini -storage units
39
Auto salvage and junk yards
40
Sidewalk cafes
42
Clean technologies
43
Animal boarding and training
161.3 - District R-A, Residential -Agricultural
(B) Uses.
(1) Permitted Uses.
Unit 1 City-wide uses by right .
Unit 3 Public protection and utility facilities
Unit 6 Agriculture
Unit 7 Animal husbandry
Unit 8 Single-family dwellings
FAYETTEVILLE TITLE XV - UDC/ CHAPTER 161: STR EDITS IN STRIKEOUT -UNDERLINE
Unit 9 Two-family dwellings
Unit 37 Manufactured homes
Unit 41 Accessory dwellings
Unit 43 Animal boarding and training
Unit 46 Short-term rentals
161.4 - District RSF-.5, Residential Single -Family - One Half (%) Unit Per Acre
(B) Uses.
(1) Permitted Uses.
Unit 1 City-wide uses by right
Unit 8 Single-family dwellings
I
Unit 41 Accessory dwellings
Unit 46 Short-term rentals
161.5 -District RSF-1, Residential Single -Family -One (1) Unit Per Acre
(B) Uses.
(C) Permitted Uses.
Unit 1 City-wide uses by right
Unit 8 Single-family dwellings
Unit 41 ) Accessory dwellings
Unit 46 1 Short-term rentals
FAYETTEVILLE TITLE XV - UDC/ CHAPTER 161: STR EDITS IN STRIKEOUT -UNDERLINE
161.6 -District RSF-2, Residential Single -Family -Two (2) Units Per Acre
(B) Uses.
(C) Permitted Uses.
Unit 1 City-wide uses by right
Unit 8 Single-family dwellings
Unit 41 Accessory dwellings
Unit 46 Short-term rentals
161.7 - District RSF-4, Residential Single -Family - Four (4) Units Per Acre
(B) Uses.
(1) Permitted Uses.
Unit 1 City-wide uses by right
Unit 8 Single-family dwellings
Unit 41 Accessory dwellings
Unit 46 Short-term rentals
161.8 - District RSF-7, Residential Single -Family - Seven (7) Units Per Acre
(B) Uses.
(1) Permitted Uses.
Unit 1 , City-wide uses by right
Unit 8 ) Single-family dwellings
Unit 41 ) Accessory dwellings
Unit 46 Short-term rentals
FAYETTEVILLE TITLE XV - UDC/ CHAPTER 161: STR EDITS IN STRIKEOUT -UNDERLINE
161.9 - District RSF-8, Residential Single -Family - Eight (8) Units Per Acre
(B) Uses.
(1) Permitted Uses.
Unit 1 City-wide uses by right
Unit 8 Single-family dwellings
Unit 41 Accessory dwellings
Unit 46 Short-term rentals
161.10 - District RSF-18, Residential Single -Family - Eighteen (18) Units Per Acre
(B) Uses.
(1) Permitted Uses.
Unit 1 City-wide uses by right
Unit 8 Single-family dwellings
Unit 41 Accessory dwellings
Unit 46 Short-term rentals
161.11 - District RI-12, Residential Intermediate, Twelve (12) Units Per Acre
(B) Uses.
(1) Permitted Uses.
Unit 1 City-wide uses by right
Unit 8 Single-family dwellings
Unit 9 Two (2) family dwellings
Unit 10 Three (3) and four (4) family dwellings
FAYETTEVILLE TITLE XV - UDC/ CHAPTER 161: STIR EDITS IN STRIKEOUT -UNDERLINE
Unit 41 Accessory dwellings
Unit 44 Cluster Housing Development
Unit 46 Short-term rentals
161.12 - District RI-U, Residential Intermediate - Urban
(B) Uses.
(1) Permitted Uses.
Unit 1 City-wide uses by right
Unit 8 Single-family dwellings
Unit 9 Two (2) family dwellings
Unit 10 Three (3) and four (4) family dwellings
Unit 41 Accessory dwellings
Unit 44 Cluster housing development
Unit 46 Short-term rentals
161.13 - District RMF-6, Residential Multi -Family - Six (6) Units Per Acre
(B) Uses.
(1) Permitted Uses.
Unit 1 City-wide uses by right
Unit 8 Single-family dwellings
Unit 9 Two-family dwellings
FAYETTEVILLE TITLE XV - UDC/ CHAPTER 161: STR EDITS IN STRIKEOUT -UNDERLINE
Unit 10 Three (3) and four (4) family dwellings
Unit 26 Multi -family dwellings
Unit 41 Accessory dwellings
Unit 44 Cluster Housing Development
Unit 46 Short-term rental
161.14 - District RMF-12, Residential Multi -Family -Twelve (12) Units Per Acre
(B) Uses.
(1) Permitted Uses.
Unit 1 City-wide uses by right
Unit 8 Single-family dwellings
Unit 9 Two-family dwellings
Unit 10 Three (3) and four (4) family dwellings
Unit 26 Multi -family dwellings
Unit 41 Accessory dwellings
Unit 44 Cluster Housing Development
Unit 46 Short-term rental
161.15 - District RMF-18, Residential Multi -Family - Eighteen (18) Units Per Acre
(B) Uses.
(1) Permitted Uses.
FAYETTEVILLE TITLE XV - UDC/ CHAPTER 161: STR EDITS IN STRIKEOUT -UNDERLINE
Unit 1 City-wide uses by right
Unit 8 Single-family dwellings
Unit 9 Two-family dwellings
Unit 10 Three (3) and four (4) family dwellings
Unit 26 Multi -family dwellings
Unit 41 Accessory dwellings
Unit 44 Cluster Housing Development
Unit 46 Short-term rental
161.16 - District RMF-24, Residential Multi -Family - Twenty -Four (24) Units Per Acre
(B) Uses.
(1)
Permitted Uses.
Unit 1
City-wide uses by right
Unit 8
Single-family dwellings
Unit 9
Two-family dwellings
Unit 10 !Three
(3) and four (4) family dwellings
I
Unit 26 !.
Multi -family dwellings
Unit 41 I
Accessory dwellings
Unit 44
Cluster Housing Development
Unit 46
Short-term rental
FAYETTEVILLE TITLE XV - UDC/ CHAPTER 161: STR EDITS IN STRIKEOUT -UNDERLINE
161.17 - District RMF-40, Residential Multi -Family - Forty (40) Units Per Acre
(B) Uses.
(1) Permitted Uses.
Unit 1 City-wide uses by right
Unit 8 Single-family dwellings
Unit 9 Two-family dwellings
Unit 10 Three (3) and four (4) family dwellings
Unit 26 Multi -family dwellings
Unit 41 Accessory dwellings
Unit 44 Cluster Housing Development
Unit 46 Short-term rental
161.18 - NS-L, Neighborhood Services - Limited
(B) Uses.
(1) Permitted Uses.
Unit 1 City-wide uses by right
Unit 8 Single-family dwellings
Unit 9 Two (2) family dwellings
Unit 10 Three (3) and four (4) family
dwellings
Unit
Limited Business
12a
Unit 24 Home occupations
FAYETTEVILLE TITLE XV - UDC/ CHAPTER 161: STR EDITS IN STRIKEOUT -UNDERLINE
Unit 40 Sidewalk cafes
Unit 41 Accessory dwelling units
Unit 44 Cluster housing development
Unit 46 Short-term rental
161.19 - NS-G, Neighborhood Services - General
(B) Uses.
(1) Permitted Uses.
Unit 1 City-wide uses by right
Unit 8 Single-family dwellings
Unit 9 Two-family dwellings
Unit 10 Three (3) and four (4) family
dwellings
Unit 12b
General business
Unit 24
Home occupations
Unit 40
Sidewalk cafes
Unit 41
Accessory dwelling units
Unit 44
Cluster housing development
Unit 46
Short-term rental
161.20 - District R-O, Residential Office
(B) Uses.
FAYETTEVILLE TITLE XV - UDC/ CHAPTER 161: STR EDITS IN STRIKEOUT -UNDERLINE
(1) Permitted uses.
Unit 1 City-wide uses by right
Unit 5 Government facilities
Unit 8 Single-family dwellings
Unit 9 Two-family dwellings
Unit 12a Limited business
Unit 25 Offices, studios, and related services
Unit 41 Accessory dwellings
Unit 44 Cluster Housing Development
Unit 46 Short-term rental
161.22 - Community Services
(B) Uses.
(1) Permitted Uses.
Unit 1 City-wide uses by right
Unit 4 Cultural and recreational facilities
Unit 5 Government facilities
Unit 8 Single-family dwellings
Unit 9 Two-family dwellings
Unit 10 Three (3) and four (4) family dwellings
Unit 13 Eating places
FAYETTEVILLE TITLE XV - UDC/ CHAPTER 161: STR EDITS IN STRIKEOUT -UNDERLINE
Unit 15 Neighborhood Shopping goods
Unit 18
Gasoline service stations and drive-
in/drive through restaurants
Unit 24 Home occupations
Unit 25 Offices, studios and related services
Unit 26 Multi -family dwellings
Unit 40 Sidewalk Cafes
Unit 41 Accessory dwellings
Unit 44
Cluster Housing Development
Unit 45
Small scale production
Unit 46
Short-term rental
161.24 - Urban Thoroughfare
(B) Uses.
(1) Permitted Uses.
Unit 1 { City-wide uses by right
Unit 4 1 Cultural and recreational facilities
Unit 5 Government facilities
Unit 8 ' Single-family dwellings
Unit 9 I Two (2) family dwellings
Unit 10 Three (3) and four (4) family
dwellings
FAYETTEVILLE TITLE XV - UDC/ CHAPTER 161: STR EDITS IN STRIKEOUT -UNDERLINE
Unit 13 Eating places
Unit 14 Hotel, motel and amusement
services
Unit 16 Shopping goods
Unit 17 Transportation trades and services
Gasoline service stations and drive -
Unit 18
in/drive through restaurants
Unit 19 Commercial recreation, small sites
Unit 24 Home occupations
Unit 25 Offices, studios, and related
services
Unit 26 Multi -family dwellings
Unit 34 Liquor store
Unit 40 Sidewalk cafes
Unit 41
Accessory Dwellings
Unit 44
Cluster Housing Development
Unit 45
Small scale production
Unit 46
Short-term rental
161.25 - District C-3, Central Commercial
(B) Uses.
(1) Permitted Uses.
FAYETTEVILLE TITLE XV - UDC/ CHAPTER 161: STR EDITS IN STRIKEOUT -UNDERLINE
Unit 1 City-wide uses by right
Unit 4 Cultural and recreational facilities
Unit 5 Government facilities
Unit 13 Eating places
Unit 14 Hotel, motel, and amusement
facilities
Unit 16 Shopping goods
Unit 18 Gasoline service stations & drive-in
restaurants
Unit 19 Commercial recreation, small sites
Unit 25 Offices, studios, and related services
Unit 26 Multi -family dwellings
Unit 34 Liquor stores
Unit 40
Sidewalk Cafes
Unit 44
Cluster Housing Development
Unit 45
Small scale production
Unit 46
Short-term rental
161.26 - Downtown Core
(B) Uses.
(1) Permitted Uses.
Unit 1 City-wide uses by right
FAYETTEVILLE TITLE XV - UDC/ CHAPTER 161: STR EDITS IN STRIKEOUT -UNDERLINE
Unit 4 Cultural and recreational facilities
Unit 5 Government facilities
Unit 8 i Single-family dwellings
Unit 9 Two-family dwellings
i
Unit 10 Three (3) and four (4) family
dwellings
i
Unit 13 ! Eating places
I
--� Unit 14 Hotel, motel, and amusement
facilities
Unit 16 Shopping goods
Unit 17 Transportation trades and services
Unit 19 Commercial recreation, small sites
Unit 24 Home occupations
Unit 25 Offices, studios, and related
services
Unit 26 1 Multi -family dwellings
Unit 34 1 Liquor stores
Unit 40 1 Sidewalk Cafes
Unit 41 ( Accessory dwellings
Unit 44
Cluster Housing Development
Unit 45
Small scale production
Unit 46
Short-term rental
FAYETTEVILLE TITLE XV - UDC/ CHAPTER 161: STR EDITS IN STRIKEOUT -UNDERLINE
161.27 - Main Street/Center
(B) Uses.
(1)
Permitted uses.
Unit 1
City-wide uses by right
Unit 4
Cultural and recreational facilities
Unit 5
Government facilities
Unit 8
Single-family dwellings
Unit 9
Two-family dwellings
Three (3) and four (4) family
Unit 10
dwellings
Unit 13
Eating places
Hotel, motel, and amusement
Unit 14
facilities
Unit 16
Shopping goods
Unit 17
Transportation trades and services
Unit 19
Commercial recreation, small sites
Unit 24
Home occupations
Offices, studios, and related
Unit 25
services
Unit 26
Multi -family dwellings
Unit 34
Liquor stores
Unit 40
Sidewalk Cafes
Unit 41
Accessory dwellings
FAYETTEVILLE TITLE XV - UDC/ CHAPTER 161: STR EDITS IN STRIKEOUT -UNDERLINE
Unit 44 Cluster Housing Development
Unit 45 Small scale production
Unit 46 Short-term rental
161.28 - Downtown General
(B) Uses.
(1) Permitted Uses.
Unit 1 City-wide uses by right
Unit 4 Cultural and recreational facilities
Unit 5 Government facilities
Unit 8 Single-family dwellings
Unit 9 Two-family dwellings
Unit 10 Three (3) and four (4) family dwellings
Unit 13 Eating places
Unit 15 Neighborhood shopping goods
Unit 24 Home occupations
Unit 25 Offices, studios, and related services
Unit 26 Multi -family dwellings
Unit 40 Sidewalk Cafes
Unit 41 Accessory dwellings
Unit 44 Cluster Housing Development
FAYETTEVILLE TITLE XV - UDC/ CHAPTER 161: STR EDITS IN STRIKEOUT -UNDERLINE
Unit 45 Small scale production
Unit 46 Short-term rental
161.29 - Neighborhood Conservation
(B) Uses.
(1) Permitted Uses.
Unit 1 City-wide uses by right
Unit 8 Single-family dwellings
Unit 41 Accessory dwellings
Unit 46 Short-term rental
FAYETTEVILLE TITLE XV - UDC/ CHAPTER 162: STR EDITS IN STRIKEOUT -UNDERLINE
CHAPTER 162: - USE UNITS
162.01- Establishment/Listing
The various use units referred to in the zoning district provisions are herein listed in numerical order.
Within the use units, the permitted uses are ordinarily listed in alphabetical order. In these use units
where there is a preliminary descriptive statement (which may mention specific uses) in addition to the
detailed list of uses, the detailed list shall govern.
Unit 1 City-wide uses by right
Unit 2 City-wide uses by conditional use permit
Unit 3 Public protection and utility facilities
Unit 4 Cultural and recreational facilities
Unit 5 Government facilities
Unit 6 Agriculture
Unit 7 Animal husbandry
Unit 8 Single-family dwellings
Unit 9 Two-family dwellings
Unit 10
Three (3) and four (4) family dwellings
Unit 11
Manufactured home park
Unit 12a
Limited business
i
Unit 12b
General business
Unit 13
Eating places
Unit 14
Hotel, motel and amusement facilities
Unit 15
Neighborhood shopping goods
Unit 16 Shopping goods
FAYETTEVILLE TITLE XV - UDC/ CHAPTER 162: STR EDITS IN STRIKEOUT -UNDERLINE
Unit 17
Transportation Trades and services
Gasoline service stations and drive-in/drive
Unit 18
through restaurants
Unit 19
Commercial recreation, small sites
Unit 20
Commercial recreation, large sites
Unit 21
Warehousing and wholesale
Unit 22
Manufacturing
Unit 23
Heavy industrial
Unit 24
Home occupation
Unit 25
Offices, studios, and related services
Unit 26
Multi -family dwellings
Wholesale bulk petroleum storage facilities
Unit 27
with underground storage tanks
Unit 28
Center for collecting recyclable materials
Unit 29
Dance halls
Unit 30
Extractive uses
Facilities emitting odors & facilities
Unit 31
handling explosives
Unit 32
Sexually oriented business
Unit 33
Adult live entertainment club or bar
Unit 34
Liquor stores
Unit 35
Outdoor music establishments
FAYETTEVILLE TITLE XV - UDC/ CHAPTER 162: STR EDITS IN STRIKEOUT -UNDERLINE
Unit 36 Wireless communications facilities
Unit 37 Manufactured homes
Unit 38 Mini -storage units
Unit 39 Auto salvage and junk yards
Unit 40 Sidewalk Cafes
Unit 41 Accessory dwellings
Unit 42 Clean technologies
Unit 43 Animal boarding and training
Unit 44 Cluster Housing Development
Unit 45 Small scale production
Unit 46 Short-term rental
(0) Unit 14. Hotel, Motel, and Amusement Facilities.
(1) Description. Unit 14 consists of hotels, motels, and certain types of amusement facilities.
(2) Included Uses.
Hotel
Membership lodge
Motel
Motion picture theater
Night club, not providing dancing or outdoor music
Tavern, not providing dancing or outdoor music
Use Unit 46, Short-term rental is also permitted within Use
FAYETTEVILLE TITLE XV - UDC/ CHAPTER 162: STR EDITS IN STRIKEOUT -UNDERLINE
Unit 14
(UU) Unit 46. Short-term rental.
(1) Description. Unit 46 is provided to allow a permanent residential dwelling unit, portion of a
residential dwelling unit, or room within a residential dwelling unit, to be leased and/or rented to
a guest(s) for a period of less than thirty (30) consecutive days.
(2) Included Uses.
Short-term rentals
02-24-20 PLANNING COMMISSION
FAYETTEVILLE TITLE XV - UDC/ CHAPTER 163: STR EDITS IN STRIKEOUT -UNDERLINE
CHAPTER 163: - USE CONDITIONS
163.01- Listing
The use conditions set forth in this chapter are the following:
Bed and breakfast facilities
Carnival, circus, amusement park or similar temporary
open-air enterprise
Child care, nursery school
Dance halls
Facilities emitting odors and facilities handling explosives
Home occupations
Manufactured homes
Outdoor music establishments
Sexually oriented businesses
Short-term rentals
Tandem lot development
Wireless communications facilities
163.18 — Short-term rentals
(A) General Standards.
(1) Residential Zoninq Districts. Short-term rentals may be permitted in all zoning districts where
residential uses are allowed by right.
(2) Commercial and Mixed Use Zoning Districts. Short-term rentals may be permitted in all zoning
districts where hotel/motel uses are permitted by right and shall not count towards the Type 2
short-term rental density cap in these districts except in multi -family buildings as specified in
Chapter 118 of the Fayetteville City Code.
02-24-20 PLANNING COMMISSION
FAYETTEVILLE TITLE XV - UDC/ CHAPTER 163: STR EDITS IN STRIKEOUT -UNDERLINE
3 Occu anc . Maximum of two 2 eo le per bedroomplus two 2
for the entire unit.
(4) Parking. Parking is limited to the maximum number of vehicles as allowed by the underlying
zoning district for the residential building on the property
(5) Special events are not permitted in a short-term rental. Example of special events include, but
are not limited to, weddings, receptions, anniversaries, private parties fundraisers and
business seminars.
Short-term rental units are permitted in any structure established as a permanent residential
dwelling including an accessory dwelling unit. No recreational vehicle trailer, other vehicle or
structure not classified as a permanent residential dwelling may be used as a short-term
rental.
6 Month Start-up Period. After the enactment of the short-term rental ordinance, existing short-
term rental operators shall have 6 months to obtain a business license and be considered in
compliance. After the 6-month start-up period, all short-term rental units must have a business
license to be considered in compliance. To qualify for this exemption as a pre-existing short-
term rental, satisfactory proof of operation prior to the enactment date shall be provided to the
city including a copy of a back -dated advertisement listing the unit and a copy of a transaction
prior to the adoption date documenting that the unit was utilized as a short-term rental. Short-
term rentals must also successfully pass an inspection as described in §118.01(E)(9)(e). The
City has complete discretion in determining whether such submitted proof is sufficient and
satisfactory.
RT9TR-e-r7he enactment fThe short-term rental orTnance, existing short-term rental)
operators may temporarily continue to operate and shall have up to six months to
obtain a business license and be considered in compliance. After the six month start-ul
period, all short-term rental units must have a business license to operate and be
considered in compliance. To qualify for this exemption from having to petition the
Planning Commission to obtain an individualized conditional use permit as a pre-
existing short-term rental, satisfactory proof of operation within the last three years
and prior to the enactment date must be provided to the City such as a copy of an
advertisement listing the unit and a copy of a transaction documenting that the unit
was utilized as a short-term rental within the applicable time period. Short-term rentals
must also successfully pass an inspection as described in §118.01(E)(9)(e) of the
( llifiCd /)CTC'l1)i)1)1c1l1 ('u�/c to the City's satisfaction.
Type 1 and 2 short-term rentals seeking a business license or permit under the 6-month
start-up period which are currently operating in 2, 3 and 4 unit buildings in which more
an 1 unit is being used as a short-term rental may obtain a business license for all
o AWMAhMONE6 rt-term rentals.
( ntals submitting an application for a business license or permit
after the six month grace period has expired shall be required to obtain an individualized
conditional use permit from the Planning Commission and pass the City's premises
inspection prior to the City being able to issue a business license.
(8) Exceptions. Exceptions to the short-term rental standards, except proposals that would
exceed the city-wide density maximum, may be granted by the Planning Commission as a
conditional use permit.
() Short-term rentals must comply with all applicable codes under City Code Section 118.01 and
successfully obtain a business license prior to operation.
Real Estate Investors NWA — Arkansas Short Term Rental Alliance
Position Paper: Fayetteville Short Term Rental Ordinance
December 17, 2020
In an effort to provide input for further consideration and revision regarding the proposed Short Term Rental
Ordinance suggested at the December 1st City Council meeting, Real Estate Investors NWA and Arkansas Short
Term Rental Alliance has drafted a Position Paper to present our views.
Below are the Issues we find challenging and recommendations for further discussion.
1. Conditional Use Permit and Inspections
We find the Conditional Use Permit too onerous for Type 2 STR owners and suspect it will also be
burdensome to city officials charged with enacting the process. Most Type 2 owners are small investors
unfamiliar with this process and we believe a blanket regulation such as this would lead to confusion,
filing errors and ultimately noncompliance.
SUGGESTED REVISION: We recommend this regulation be eliminated or alternatively with
implementation only after the 2% Density Cap has been reached.
A general Fire Inspection for each unit seems reasonable and would address any safety concerns while
identifying possible code violations. The inspection process is already in place and would be the least
burdensome on city officials.
2. 8-Person Cap on STR
We find this regulation to be particularly burdensome. STR are neither residential owners nor hotels. We
fall somewhere in between and are actually a separate business category.
We understand the intent of both the Planning Commission and City Council is to make STRs legal without
diminishing the beneficial aspects for entertainment, short term training/educational programs,
prospective new residents and many other legitimate uses of temporary housing.
Placing an 8-person cap on STR eliminates a large portion of our market, particularly the higher end
housing so desired by event visitors, professionals exploring our "funky' city prior to a move and other
social purposes. The harm this cap imposes includes unnecessarily restricting Highest and Best use for our
properties, eliminating potential users of STR housing and lower revenue for both owners and the city
SUGGESTED REVISION: We recommend the regulation remain 2 people per bedroom plus 2 and that the
8-person cap be eliminated.
3. Cap of 1 STR Unit Per Multi -Family Property
We find this item to be an unwarranted over -regulation with no foundation, cause or need. It hampers
our ability to efficiently maintain our units and is a gross interference in the ability to run our businesses
as we see fit. Ultimately, we feel this will be deemed unconstitutional and again limit our capacity to
operate our property in the Highest and Best use possible.
SUGGESTED REVISION: We recommend this restriction be eliminated entirely.
4. Permanent Structure Requirement
Part of the value and desirability of STRs is for renters to experience new, different and creative
accommodations. Currently, there are many examples in Fayetteville including recreational vehicles,
houseboats and even a Tree House. We believe these alternative housing options to be of great benefit
and a major attraction to visitors of our unique city.
SUGGESTED REVISION: We feel this requirement would benefit from further study and propose a 1-year
review of STR uses and accommodations. At the end of the year, if there is deemed to be a problem,
further action can be taken at that time.
5. Owner or Agent Accessibility
We feel the 24-7 availability and particularly the requirement of an agent to be physically present at the
STR within one hour is unreasonable and probably unworkable.
SUGGESTED REVISION: The availability requirement should be no different than that of any landlord or
personal residential owner.
6. Special Events Prohibition
We find this restriction unnecessary and confusing. Special events or temporary housing related to
special events are the main purpose for STRs. Weddings at luxury accommodations, anniversaries, family
reunions and other private parties are the reason renters seek STRs. Weekend corporate training events
serve a beneficial and legitimate purpose for STRs. All these events and others not listed bring visitors,
revenue and goodwill to Fayetteville.
SUGGESTED REVISION: We find no reason or need for this restriction and recommend it be removed. If
there is some foundational cause the planners were trying to accomplish, it should be more clearly
defined and open to further discussion.
It is our desire that this Position Paper be used to facilitate more dialogue resulting in an Ordinance beneficial
to all parties. We hope the experience will foster additional collaboration among our members as
stakeholders in providing a vibrant, fun and beneficial short term rental market within our beloved City of
Fayetteville.
Respectfully submitted,
Real Estate Investors NWA
Arkansas Short Term Rental Alliance
TO:
FROM
MEETING DATE
CITY OF
FAYETTEVILLE
ARKANS
ARKANSAS
City of Fayetteville City Council
CITY COUNCIL MEMO
Mary McGetrick, Long Range Planning Manger
April 6Ih, 2021
SUBJECT: ADM 20-7000 Administrative Item (Amend Fayetteville Code of
Ordinances: Short-term Residential Rentals): Submitted by the
Development Services Department for revisions to the Fayetteville Code of
Ordinances for short-term residential rentals.
RECOMMENDATION:
Staff recommends forwarding the proposed code change to the City Council with a
recommendation for approval.
RECOMMENDED MOTION:
"I move to approve ADM 20-7000 as recommend by City staff."
BACKGROUND:
The short-term rental code amendments were approved by Planning Commission in February
2019 and forwarded from the Ordinance review Sub -Committee to the full Council in March 2021.
Staff presented a recommended code change along with alternatives. There were several
members of the public at the Planning Commission, Council and Sub -Committee meetings and a
variety of perspectives have been shared over the last year concerning how the City should
handle short-term rentals.
A short-term rental (STR) is the leasing out of a furnished residential dwelling on a short-term
basis, generally less than a month. It is estimated that there are approximately 500-600 STIR units
in Fayetteville. However, Fayetteville's codes do not have specific rules for STRs and they are
classified as hotels/motels in the zoning code. This prevents them from legally operating in a
single-family district and there are numerous STRs currently in violation. In July 2019 the City
Council adopted Resolution 172-19 directing staff to study and develop an ordinance for STRs
for their consideration.
The recommended code amendments in this report have been revised to incorporate the legal
recommendations from the City Attorney's office and the Ordinance Review Sub -committee of
Council. The primary revisions from the City Attorney's office included relocating many of the
short-term rental requirements from Chapter 163 into Chapter 118, Business Licenses, changing
enforcement staff to the Development Services Director, replacing "shalls" in certain places with
"mays", and clarifying what is required for building inspection. The primary revisions, as shown
highlighted in green in the attached amended ordinance, from the Sub- committee include an
insurance rider requirement, a change in occupancy allowances and the addition of a sunset
clause.
Mailing Address:
113 W. Mountain Street www.fayetteville-ar.gov
Fayetteville, AR 72701
Public Input: As the first step in studying STRs, the City hosted a focus group on August 19, 2019.
The focus group represented various perspectives including neighborhood representatives,
concerned citizens, rental owners and managers, and hotel owners. The group was guided by a
professional facilitator to identify key issues and recommendations in moving forward with local
rules for STRs. On September 30, 2019, the city hosted an open public input meeting which
allowed all attendees to provide input in writing and verbally on the issues identified by the focus
group. The city staff continued to take comment from the public and elected officials over the last
few months. After reviewing the public comment and completing extensive research on many
cities' short-term rental codes, the City's consultant on the project, Garver LLC, completed a first
draft of revisions to the Fayetteville Code of Ordinance for STRs. This first draft was presented to
the same focus group on January 15, 2020 for their review and comment. Staff presented the
final draft ordinance to the focus group on November 51h, 2020
DISCUSSION:
The Development Services Department and their consultant, Garver LLC, have drafted
amendments to the Fayetteville Code of Ordinances for short-term residential rentals. The primary
issues proposed in the previous revisions include the following:
• Location: STRs would be allowed by right in all zoning districts where residential
dwellings and hotel/motel uses are allowed.
• Type 1 and Type 2 STRs: There are two types of STRs. Type 1 is a full-time residence
and Type 2 is a full-time STIR. Type 1's are not subject to density limitations, Type 2's are
subject to density limitations.
• Occupancy: Maximum of 2 people per bedroom plus 2,
FegaFdle66 of the A. �Mhor of hodrAr)mc A definition of bedroom is included.
• Permit: a business license must be obtained prior to operation.
• Inspection: prior to approval of a business license the rental unit must pass a safety and
egress inspection conducted by the Fayetteville Building Safety Division. A life safety and
egress inspection will verify the basic life safety requirements like fire alarms and basic
egress requirements like a door. The requirement for an inspection every three years has
been removed; an inspection is only required for the initial license.
• Grace period: 6 months for existing STRs to obtain inspection and business license.
After the enactment of the short-term rental ordinance, existing short-term rental
operators may temporarily continue to operate and shall have up to six months to obtain
a business license and be considered in compliance. After the six month start-up period,
all short- term rental units must have a business license to operate and be considered in
compliance. To qualify for this exemption from having to petition the Planning
Commission to obtain an individualized conditional use permit as a pre-existing short-
term rental, satisfactory proof of operation within the last three years and prior to the
enactment date must be provided to the City such as a copy of an advertisement listing
the unit and a copy of a transaction documenting that the unit was utilized as a short-
term rental within the applicable time period. Short-term rentals must also successfully
pass an inspection as described in §118.01 (E)(9)(e) of the Unified Development Code to
the City's satisfaction.
Type 1 and 2 short-term rentals seeking a business license or permit under the 6-month
start-up period which are currently operating in 2, 3 and 4 unit buildings in which more
than 1 unit is being used as a short-term rental may obtain a business license for all
currently operating short-term rentals.
G:\ETC\Development Services Review\2020\Development Services\20-7000 ADM Amend Code of Ord. - Short Term Residential
Rentals
All Type 2 short-term rentals submitting an application for a business license or permit
after the six month grace period has expired shall be required to obtain an individualized
conditional use permit from the Planning Commission and pass the City's premises
inspection prior to the City being able to issue a business license.
Special events: No parties or special events allowed in STRs by right.
Parking: Parking is limited to the maximum number of vehicles as allowed by the
underlying zoning district for the residential building on the property.
Density limitations: Density limitations only apply to Type 2 STRs. A city-wide density
cap of two percent (2%) of all dwelling units in the Fayetteville city limits may be utilized
as Type 2 rentals. Total dwelling units are determined from current United States Census
Bureau and/or American Community Survey numbers, whichever number is higher. A
conditional use permit may not permit the following:
o More Type 2 short-term rentals than what is allowed by the city-wide density cap.
o More than ten (10) percent or a single unit whichever is greater; of total dwelling
units as Type 2 rentals within a multi -family dwelling complex.
o Individual 2-family, 3 and 4-family buildings that are owned by the same person or
entity are not a part of a multi -family complex shall have no more than one (1) Type
2 short term rental unit per building complex.
o Type 2 short-term rentals in commercial and mixed -use zoning districts where
hotel/motel are permitted by right shall not count towards the city-wide density cap.
o Short-term rentals may be permitted in all zoning districts where hotel/motel uses
are permitted by right and shall not count towards the Type 2 short-term rental
density cap in these districts except in multi -family buildings as specified in Chapter
Fees: STRs would only be subject to the typical business license and occupancy
inspection fees.
Exceptions: Exceptions to the short-term rental code are subject to review as a
conditional use permit.
Request: Staff requests that the City Council amend chapter 118 of the Business Regulations and
chapters 151, 161, 162, and 163 of the Unified Development Code for short-term rentals. The
code changes are described above and shown in the attached strikeout -highlight version of the
code.
STAFF RECOMMENDATION:
Staff recommends that the City Council approve the code changes as outlined above and
in the attached ordinance.
BUDGET/STAFF IMPACT:
N/A
Attachments/website:
• Proposed code changes shown in strikeout — Updated 3/17/21
o Approved changes of the Ordinance Sub -Committee are highlighted in green
• Minutes of the March 171h, 2021 meeting of the Ordinance Review Sub -Committee
• City of Fayetteville short-term rental website
hftp://www.faVefteville-ar.gov/3801/Short-Term-Rentals
G:\ETC\Development Services Review\2020\Development Services\20-7000 ADM Amend Code of Ord. - Short Term Residential
Rentals
FAYETTEVILLE TITLE XI — BUSINESS REGULATIONS/ CHAPTER 118: STR EDITS IN STRIKEOUT -UNDERLINE
CHAPTER 118: - BUSINESS REGISTRY AND LICENSES
118.01 -Applicability
(A) General Businesses.
(1) All businesses, institutions, corporations, LLCs, LLPs, partnerships, non-profit associations or
corporations, sole proprietorships or other non -governmental entities with a physical address or
which operates either a legally permitted home occupation or a short-term rental within the
Fayetteville city limits shall be required to file for the City of Fayetteville Business Registry and
License. A covered business or entity with multiple physical addresses in Fayetteville must
obtain a separate business license for each such business address.
(2) In addition, any person or non -governmental entity who has or should have a sales tax permit
and operates out of a physical address within Fayetteville shall be required to file for the City
of Fayetteville Business Registry and License.
(3) In addition, any person or non -governmental entity who is engaged in any trade or occupation
which requires federal or state licenses and who operates out of a physical address within
Fayetteville shall be required to file for the City of Fayetteville Business Registry and License.
(B) Religious Entities. Churches and other religious institutions are exempt from this chapter unless they
are performing functions like daycare that must be licensed by the state or that generate revenue
upon which state sales or use taxes must be paid. The city business license shall not be required
for the religious entity but only for those functions that require a state license or upon which state
sales or use taxes must be paid.
(C) Minors Exempt. No individual under eighteen (18) years of age shall be required to register or obtain
a business license.
(D) Individual Landlords Renting Less Than Three (3) Dwelling Units Exempt. An individual landlord,
not operating as a corporation, LLC, LLP, or other business entity, who rents out less than three (3)
dwelling units, and no commercial, industrial, or institutional unit, site or building shall be exempt
from this chapter. However, a landlord that operates a short-term residential rental shall not be
exempt and must apply for and obtain a business license for each individual short-term rental.
(E) Short-term rentals. A residential dwelling unit, portion of a dwelling unit, or room within a
residential dwelling unit, leased and/or rented to a guest(s), for a period of less than thirty
consecutive (30) days.
Short-term rental, Type 1. A short-term rental where the principal use of the property remains
as a full-time residence. The occupants or owner rent their primary residence as a short-term
rental. A copy of the Homestead Tax Credit or long-term lease agreement for the subject
property is required to be classified as a Type 1 rental. Accessory dwelling units (ADUs) as
defined in Unified Development Code Chapter 151 shall be considered a Type 1 short-term
rental.
Short-term rental, Type 2. A short-term rental that is not occupied by a permanent resident. The
owner lists this property full-time as a short-term rental and has no intention of having permanent
residents living in the property. A conditional use permit is required for a Type 2 short-term rental
prior to the City issuinq a business license, except as defined in §118.01(E)(4).
(3) License Required: No dwelling unit in the City shall be used as a short-term rental unless:
(a) The owner of the dwelling unit or operator of the short-term rental possess a valid and
current business license for the dwelling unit, and fully complies with all legal requirements
and duties imposed herein with respect to each and every short-term rental; and
FAYETTEVILLE TITLE XI — BUSINESS REGULATIONS/ CHAPTER 118: STR EDITS IN STRIKEOUT -UNDERLINE
(b) The owner has designated an agent, where said agent fully complies with all legal
requirements and duties imposed herein with respect to every short-term rental. The owner
(c)
(4) 6 Month Start-up Period. After the enactment of the short term rental ordinance, existing short
term rental operators shall have 6 months to obtain a business license and be considered in
compliance. After the 6 month start-up period, all short term rental units must have a business
license to be considered in compliance. To qualify for this exemption as a re-existingshort-
term rental, satisfactory proof of operation prior to the
February 10, 20j documenting that
the unit was utilized as a short-term rental to the enactment date shall be provided to the
city including a copy of a back -dated advertisement listing the unit and a copy of a transaction
prior to the adoption date documenting that the unit was utilized as a short-term rental. Short-
term rentals must also successfully pass an inspection as described in §118.01(E)(9)(e). The
City has complete discretion in determining whether such submitted proof is sufficient and
satisfactory.
(a) After the enactment of the short-term rental ordinance existing short-term rental
operators may temporarily continue to operate and shall have up to six months t
obtain a business license and be considered in compliance. After the six month start-up
period, all short- term rental units must have a business license to operate and be
considered in compliance. To qualify for this exemption from having to petition the
Planning Commission to obtain an individualized conditional use permit as a pre-
existing short-term rental, satisfactory proof of operation within the last three years
and prior to the enactment date must be provided to the City such as a copy of an
advertisement listing the unit and a copy of a transaction documenting that the unit
was utilized as a short-term rental within the applicable time period. Short-term rentals
must also successfully pass an inspection as described in §118.01(E)(9)(e) of the
I)ii/iccl Ocrrlopinew ('ogle to the City's satisfaction.
0) Type 1 and 2 short-term rentals seeking a business license or permit under the 6-month
start-up period which are currently operating in 2, 3 and 4 unit buildings in which more
than 1 unit is being used as a short-term rental may obtain a business license for all
currently operating short-term rentals.
(c) All Type 2 short-term rentals submitting an application for a business license or permit
after the six month grace period has expired shall be required to obtain an individualized
conditional use permit from the Planning Commission and pass he Ci emises
inspection prior to the City being able to issue a business.lice
(5) No hosting platform shall facilitate or conduct any booking transaction for a short-term rental in
the City without the short-term rental first obtaining and maintaining possession of the requisite
business license.
(6) A separate business license shall be required for each dwelling unit used as a short-term rental.
(7) Any change in ownership requires a new or amended business license.
(8) If any required contact information changes for the associated business license, the person to
whom the license was issued shall immediately notify the Development Services Department in
writing.
(9) License Application. The application for a business license shall include at minimum, the
following information from applicants:
FAYETTEVILLE TITLE XI — BUSINESS REGULATIONS/ CHAPTER 118: STR EDITS IN STRIKEOUT -UNDERLINE
(a) The property owner's information including legal name mailing address immediate contact
phone number, and immediate contact E-mail address.
(b) Information for the dwelling unit subject to the application inclusive of the physical street
address assigned by the City.
(c) The type and total number of dwelling units located on the lot of record containing the
dwelling unit subiect to the application.
(d) If the owner is not their own agent the owner designated agent's information including
legal name mailing address immediate contact phone number and immediate contact E-
mail address.
(e) Documentation of approval of a life safety and egress inspection by the City Building Safety
Division for the dwelling unit subject to the application.
(f) Proof of application for remittance of Hotel, Motel and Restaurant tax to the City of
Fayetteville and verification that all sales, use, and Hotel, Motel and Restaurant taxes are
current.
(n) Any additional data as deemed necessary or desirable for permit approval by the
nevelnnment Services Drertnr
(10) License Renewals. Business licenses for short-term rentals shall be renewed in accordance
with Chapter 118 of the Business Regulations (Business Registry and Licenses).
FAYETTEVILLE TITLE XI — BUSINESS REGULATIONS/ CHAPTER 118: STR EDITS IN STRIKEOUT -UNDERLINE
(11) Legal Duties of License Holders An owner possessing a short-term rental license shall comply
at all times with the following requirements
(b) Advertisements. A short-term rental shall not be advertised if it violates occupancy, density,
safety, and any of the other provisions of the Fayetteville Code. No short-term rental unit
shall be advertised prior to having obtained a business license and the business license
number shall be included in the advertisement listing. No hosting platform or owner/agent
may offer, advertise, book, facilitate, or engage in short-term rental activity or
advertisement that violates any provision of the short-term rental code.
(c) Information and Posting. Business licensees shall provide to guests and post
conspicuously in the common area of the short-term rental unit the City phone number to
report a safety complaint.
12) OwnerorAgent Accessibility. The property owner shall ensure that they or a designated agent
are available at all times during quest occupancy, including nights and weekends, in order to
facilitate compliance with this section. For the purposes of these regulations, 'availability' means
that the owner or agent is accessible by tele hone and able to be phXsically present at the
short-term rental within fhree 3 hour of being contacted if required an
services, or the .DeveJ . ent Services.Dire tor:
13) Guest records. The owner shall maintain summary guest registration records, which shall
contain the actual dates of occupancy, total number of guests per party per stay, and the rate(s)
charged, but shall not contain any personally identifiable information about guests. Such records
shall be maintained for three vears and shall be provided to the Citv upon request.
(14) Health and safety. The owner shall ensure that each dwelling unit governed by this section
complies with the applicable provisions of the Unified Development Code Chapter 173: Building
Regulations.
(15) Criminal activity. The owner shall timely report any known or reasonably suspected criminal
activity by a quest to the Fayetteville Police Department.
(16) Taxes and fees. Except for those instances in which a hosting platform bears the responsibility
for collecting and remitting taxes and fees applicable to short-term rentals, the property owner
shall timely remit in full Fayetteville Hotel, Motel and Restaurant tax and other applicable local,
state, and federal taxes and City fees owed in connection with any short-term rental. The failure
of a hostinq platform to collect and remit taxes and fees shall not relieve an owner of the
uant to tnis section.
(17) Authorization to Occupy, Use, and Operate. Authorization to operate a short-term rental may be
granted by the through the issuance of a City of
Fayetteville Business Registry and License (business license).
(18) Density For Type 2 Short-term Rentals. A city-wide density cap of 0 percent (2%) of all
dwelling units in the Fayetteville city limits may be utilized as Type 2 rentals. Total dwelling units
are determined from current United States Census Bureau and/or American Community Survey
numbers, whichever number is higher. A conditional use permit may not permit:
(a) More Type 2 short-term rentals than what is allowed by the city-wide density cap.
(b) 1 dw� as Type
2 rentals within a multi -family dwelling complex.
(d) Type 2 short-term rentals in commercial and mixed -use zoning districts where hotel/motels
are permitted by right shall not count towards the city-wide density cap.
FAYETTEVILLE TITLE XI — BUSINESS REGULATIONS/ CHAPTER 118: STR EDITS IN STRIKEOUT -UNDERLINE
(19) Suspension and Revocation. If the has reason to believe
that any of the grounds specified in §118 03(A) of the Fayetteville Code exist or that any rental
unit was rented for less than one full night or to more than one party of guests for the same
period of time or otherwise failed to comply with all terms and conditions of this section, the
may suspend or revoke the short-term rental's business
license pursuant to the procedures detailed in §118.03 and in §118.04 of the Fayetteville Code.
(20) Short-term rentals must comply with all applicable codes under Unified Development Code
Chapter 163.18 and successfully obtain a business license prior to operation.
FAYETTEVILLE TITLE XV - UDC/ CHAPTER 151: STIR EDITS IN STRIKEOUT -UNDERLINE
CHAPTER 151: DEFINITIONS
Agent, Owner -Designated. A person designated by the owner of a property, where designee has a physical
address within the City of Fayetteville is accessible 24-hours a day, and otherwise in compliance with the
UDC requirements for short-term rentals. The owner may serve as their own agent.
Bedroom A fully enclosed portion of a building designed or intended to be used principally for sleeping_
purposes.
Booking transaction Any contractual agreement between a quest and an owner relative to a short-term
rental.
Dwelling unit (zoning). One (1) room, or rooms connected together, constituting a separate, independent
housekeeping establishment for owner occupancy, or rental or lease on a weekly, monthly, or longer basis,
and physically separated from any other rooms or dwelling units which may be in the same structure, and
containing independent cooking and sleeping facilities.
Guest, Short-term rental. Any person who occupies a short-term rental, for a period of less than 30
consecutive days, pursuant to a short-term rental lease term and/or other like agreement for the purposes
of temporary lodging.
Host, Short-term rental. The owner(s) of a short-term rental who has authority to offer the dwelling unit
portion thereof, or a room within the dwelling unit as a legal short-term rental.
Owner. A person who owns at least a 50 percent interest in a dwelling unit used for short-term rentals.
Permanent residential dwelling. A structure that has been legally permitted or is a legal, non -conforming
structure allowed for permanent occupancy as a residential dwelling.
Hosting Platform. A person or entity that participates in the short-term rental business by providing and
collecting or receiving a fee(s) for facilitating booking transactions through which a short-term rental host
may offer a short-term rental to a short-term rental guest. Hosting platforms typically, though not always,
facilitate booking transactions through an on line platform that allows a short-term rental host to advertise
the short-term rental through a website provided by the hosting platform and the hosting platform conducts
a transaction by which potential short-term rental guest reserve a guestroom(s) and arrange payment,
whether the short-term rental guest pays rent directly to the short-term rental host or to the hosting platform.
Short-term rental. A residential dwelling unit, portion of a dwelling unit, or room within a residential dwelling
unit, leased and/or rented to a guest(s), for a period of less than thirty consecutive (30) days.
Short-term rental, Type 1. A short-term rental where the principal use of the property remains as a full-time
residence. The occupants or owner rent their primary residence as a short-term rental. A copy of the
Homestead Tax Credit or long-term lease agreement for the subject property is required to be classified as
a Type 1 rental. Accessory dwelling units (ADUs) as defined in Unified Development Code Chapter 151
shall be considered a Type 1 short-term rental.
Short-term rental, Type 2. A short-term rental that is not occupied by a permanent resident. The owner lists
this property full-time as a short-term rental and has no intention of having permanent residents living in the
property. A conditional use permit is required for a Type 2 short-term rental prior to the City issuing a
business license.
FAYETTEVILLE TITLE XV - UDC/ CHAPTER 161: STIR EDITS IN STRIKEOUT -UNDERLINE
CHAPTER 161: - ZONING REGULATIONS
161.02 - Zoning Compliance And Business License
(A) Required. It shall be unlawful to use or occupy or permit the use or occupancy of any building or
premises, or both, or part thereof hereafter created, erected, changed, converted, or wholly or partly
altered, or enlarged in its use or structure until a business license has been issued by the Zoning and
Development Administrator stating that the proposed use of the building or land conforms to the
requirements of this chapter.
(B) Conforming Uses. Uses permitted within the underlying zoning district shall be eligible for a
business license, subject to §118 of the Fayetteville Code.
(C) Nonconforming Uses.
(1) Except for short-term rental units subject to chapter 163 of the UDC, uses within the following
use unit categories established prior to September 7, 2010 and operating in a zoning district
that does not currently allow the use, are for the purposes of zoning compliance determined to
be an existing nonconforming use, may continue to operate and are eligible to obtain a city
business license. The exemption shall not be construed as relieving the owner or operator of
such business from the regulations of the business license ordinance, including grounds for
suspension and revocation, or from any other applicable federal, state, or city regulations.
Use Units
3 Public protection facilities
4 Cultural and recreational facilities
5 Government facilities
6 Agricultural
7 Animal husbandry
12a Limited business
13 Eating places
15 Neighborhood shopping goods
24 Home occupation
25 Offices, studios, and related services
FAYETTEVILLE TITLE XV - UDC/ CHAPTER 161: STR EDITS IN STRIKEOUT -UNDERLINE
(2) Except for short-term rental units subject to chapter 163 of the UDC uses within the following
use unit categories established prior to July 15, 2003 and operating in a zoning district that does
not currently allow the use, are for the purposes of zoning compliance determined to be an
existing nonconforming use, may continue to operate and are eligible to obtain a city business
license. The exemption shall not be construed as relieving the owner or operator of such
business from the regulations of the business license ordinance, including grounds for
suspension and revocation, or from any other applicable federal, state, or city regulations.
Use Units
2 City-wide uses by conditional use permit
14 Hotel, motel and amusement facilities
16 Shopping goods
17 Transportation trades and services
18 Gasoline service stations & drive in/drive
through restaurants
19 Commercial recreation, small sites
20 Commercial recreation, large sites
21 Warehousing and wholesale
22 Manufacturing
23 Heavy industrial
Wholesale bulk petroleum storage
27 facilities with
underground tanks
28 Center for collecting recyclable materials
29 Dance halls
30 Extractive uses
FAYETTEVILLE TITLE XV - UDC/ CHAPTER 161: STR EDITS IN STRIKEOUT -UNDERLINE
31 Facilities emitting odors/handling
explosives
32 Sexually oriented businesses
33 Adult live entertainment club or bar
34 Liquor stores
35 Outdoor music establishments
36 Wireless communications facilities
38 Mini -storage units
39 Auto salvage and junk yards
40 Sidewalk cafes
42 Clean technologies
43 Animal boarding and training
161.3 - District R-A, Residential -Agricultural
(B) Uses.
(1) Permitted Uses.
Unit 1 City-wide uses by right
Unit 3 Public protection and utility facilities
Unit 6 9 Agriculture
Unit 7 Animal husbandry
Unit 8 Single-family dwellings
FAYETTEVILLE TITLE XV - UDC/ CHAPTER 161: STR EDITS IN STRIKEOUT -UNDERLINE
Unit 9 Two-family dwellings
Unit 37 Manufactured homes
Unit 41 Accessory dwellings
Unit 43 Animal boarding and training
Unit 46 Short-term rentals
161.4 - District RSF-.5, Residential Single -Family - One Half (Y2) Unit Per Acre
(B) Uses.
(1) Permitted Uses.
Unit 1 City-wide uses by right
Unit 8 Single-family dwellings
Unit 41 Accessory dwellings
Unit 46 Short-term rentals
161.5 -District RSF-1, Residential Single -Family -One (1) Unit Per Acre
(B) Uses.
(C) Permitted
Uses.
Unit 1
City-wide uses by right
Unit 8
Single-family dwellings
Unit 41
Accessory dwellings
Unit 46
Short-term rentals
FAYETTEVILLE TITLE XV - UDC/ CHAPTER 161: STR EDITS IN STRIKEOUT -UNDERLINE
161.6 -District RSF-2, Residential Single -Family -Two (2) Units Per Acre
(B) Uses.
(C) Permitted Uses.
Unit 1 City-wide uses by right
Unit 8 Single-family dwellings
Unit 41 Accessory dwellings
Unit 46 Short-term rentals
161.7 - District RSF-4, Residential Single -Family - Four (4) Units Per Acre
(B) Uses.
(1) Permitted Uses.
Unit 1 City-wide uses by right
Unit 8 Single-family dwellings
Unit 41 Accessory dwellings
Unit 46 Short-term rentals
161.8 - District RSF-7, Residential Single -Family - Seven (7) Units Per Acre
(B) Uses.
(1) Permitted Uses.
Unit 1 City-wide uses by right
Unit 8 ( Single-family dwellings
Unit 41 M) Accessory dwellings
Unit 46 1 Short-term rentals
FAYETTEVILLE TITLE XV - UDC/ CHAPTER 161: STR EDITS IN STRIKEOUT -UNDERLINE
161.9 -District RSF-8, Residential Single -Family -Eight (8) Units Per Acre
(B) Uses.
(1) Permitted Uses.
Unit 1 City-wide uses by right
Unit 8 Single-family dwellings
Unit 41 Accessory dwellings
Unit 46 Short-term rentals
161.10 - District RSF-18, Residential Single -Family - Eighteen (18) Units Per Acre
(B) Uses.
(1) Permitted Uses.
Unit 1 City-wide uses by right
Unit 8 I Single-family dwellings
Unit 41 Accessory dwellings
Unit 46 Short-term rentals
161.11 - District RI-12, Residential Intermediate, Twelve (12) Units Per Acre
(B) Uses.
(1) Permitted Uses.
Unit 1 City-wide uses by right
Unit 8 Single-family dwellings
Unit 9 Two (2) family dwellings
Unit 10 Three (3) and four (4) family dwellings
FAYETTEVILLE TITLE XV - UDC/ CHAPTER 161: STR EDITS IN STRIKEOUT -UNDERLINE
Unit 41 Accessory dwellings
Unit 44 Cluster Housing Development
Unit 46 Short-term rentals
161.12 - District RI-U, Residential Intermediate - Urban
(B) Uses.
(1) Permitted Uses.
Unit 1 City-wide uses by right
Unit 8 Single-family dwellings
Unit 9 Two (2) family dwellings
Unit 10 Three (3) and four (4) family dwellings
Unit 41 Accessory dwellings
Unit 44 Cluster housing development
Unit 46 Short-term rentals
161.13 - District RMF-6, Residential Multi -Family - Six (6) Units Per Acre
(B) Uses.
(1) Permitted Uses.
Unit 1 City-wide uses by right
Unit 8 Single-family dwellings
Unit 9 Two-family dwellings
FAYETTEVILLE TITLE XV - UDC/ CHAPTER 161: STIR EDITS IN STRIKEOUT -UNDERLINE
Unit 10 Three (3) and four (4) family dwellings
Unit 26 Multi -family dwellings
Unit 41 Accessory dwellings
Unit 44 Cluster Housing Development
Unit 46 Short-term rental
161.14 - District RMF-12, Residential Multi -Family - Twelve (12) Units Per Acre
(B) Uses.
(1) Permitted Uses.
Unit 1 City-wide uses by right
Unit 8 Single-family dwellings
Unit 9 Two-family dwellings
Unit 10 Three (3) and four (4) family dwellings
Unit 26 Multi -family dwellings
Unit 41 Accessory dwellings
Unit 44 Cluster Housing Development
Unit 46 Short-term rental
161.15 - District RMF-18, Residential Multi -Family - Eighteen (18) Units Per Acre
(B) Uses.
(1) Permitted Uses.
FAYETTEVILLE TITLE XV - UDC/ CHAPTER 161: STR EDITS IN STRIKEOUT -UNDERLINE
Unit 1 City-wide uses by right
Unit 8 Single-family dwellings
Unit 9 Two-family dwellings
Unit 10 Three (3) and four (4) family dwellings
Unit 26 Multi -family dwellings
Unit 41 Accessory dwellings
Unit 44 Cluster Housing Development
Unit 46 Short-term rental
161.16 - District RMF-24, Residential Multi -Family - Twenty -Four (24) Units Per Acre
(B) Uses.
(1) Permitted Uses.
Unit 1 City-wide uses by right
Unit 8 Single-family dwellings
_i
Unit 9 Two-family dwellings
Unit 10 Three (3) and four (4) family dwellings
Unit 26 Multi -family dwellings
Unit 41 Accessory dwellings
Unit 44 Cluster Housing Development
Unit 46 Short-term rental
FAYETTEVILLE TITLE XV - UDC/ CHAPTER 161: STR EDITS IN STRIKEOUT -UNDERLINE
161.17 - District RMF-40, Residential Multi -Family - Forty (40) Units Per Acre
(B) Uses.
(1) Permitted Uses.
Unit 1 City-wide uses by right
Unit 8 Single-family dwellings
Unit 9 Two-family dwellings
Unit 10 Three (3) and four (4) family dwellings
Unit 26 Multi -family dwellings
Unit 41 Accessory dwellings
Unit 44 Cluster Housing Development
Unit 46 Short-term rental
161.18 - NS-L, Neighborhood Services - Limited
(B) Uses.
(1) Permitted Uses.
Unit 1 City-wide uses by right
Unit 8 Single-family dwellings
Unit 9 Two (2) family dwellings
Three (3) and four (4) family
Unit 10
dwellings
Unit
Limited Business
12a
Unit 24
Home occupations
FAYETTEVILLE TITLE XV - UDC/ CHAPTER 161: STR EDITS IN STRIKEOUT -UNDERLINE
Unit 40 Sidewalk cafes
Unit 41 Accessory dwelling units
Unit 44 Cluster housing development
Unit 46 Short-term rental
161.19 - NS-G, Neighborhood Services - General
(B) Uses.
(1) Permitted Uses.
Unit 1 City-wide uses by right
Unit 8 Single-family dwellings
Unit 9 Two-family dwellings
Unit 10 Three (3) and four (4) family
dwellings
Unit 12b General business
Unit 24 1 Home occupations
Unit 40 1 Sidewalk cafes
Unit 41 1 Accessory dwelling units
Unit 44 l Cluster housing development
Unit 46 Short-term rental
161.20 - District R-O, Residential Office
(B) Uses.
FAYETTEVILLE TITLE XV - UDC/ CHAPTER 161: STR EDITS IN STRIKEOUT -UNDERLINE
(1) Permitted uses.
Unit 1 City-wide uses by right
Unit 5 Government facilities
Unit 8 Single-family dwellings
Unit 9 Two-family dwellings
Unit 12a Limited business
Unit 25 Offices, studios, and related services
Unit 41 Accessory dwellings
Unit 44 Cluster Housing Development
Unit 46 Short-term rental
161.22 - Community Services
(B) Uses.
(1) Permitted Uses.
Unit 1 City-wide uses by right
Unit 4 Cultural and recreational facilities
Unit 5 I
Government facilities
Unit 8
Single-family dwellings
Unit 9
Two-family dwellings
Unit 10
Three (3) and four (4) family dwellings
Unit 13 Eating places
FAYETTEVILLE TITLE XV - UDC/ CHAPTER 161: STR EDITS IN STRIKEOUT -UNDERLINE
Unit 15 Neighborhood Shopping goods
Gasoline service stations and drive -
Unit 18
in/drive through restaurants
Unit 24 Home occupations
Unit 25 Offices, studios and related services
Unit 26 Multi -family dwellings
Unit 40 Sidewalk Cafes
Unit 41 Accessory dwellings
Unit 44 Cluster Housing Development
Unit 45 Small scale production
Unit 46 Short-term rental
161.24 - Urban Thoroughfare
(B) Uses.
(1) Permitted Uses.
Unit 1 City-wide uses by right
I
Unit 4 Cultural and recreational facilities
Unit 5 Government facilities
Unit 8 _ Single-family dwellings
Unit 9 Two (2) family dwellings
Unit 10 Three (3) and four (4) family
dwellings
FAYETTEVILLE TITLE XV - UDC/ CHAPTER 161: STR EDITS IN STRIKEOUT -UNDERLINE
Unit 13 Eating places
Unit 14 Hotel, motel and amusement
services
Unit 16 Shopping goods
Unit 17 Transportation trades and services
Unit 18
Gasoline service stations and drive-
in/drive through restaurants
Unit 19 Commercial recreation, small sites
s
Unit 24 Home occupations
Unit 25 Offices, studios, and related
services
t
Unit 26 1 Multi -family dwellings
Unit 34
3
Liquor store
Unit 40
Sidewalk cafes
Unit 41
Accessory Dwellings
Unit 44
Cluster Housing Development
Unit 45
Small scale production
Unit 46
Short-term rental
161.25 - District C-3, Central Commercial
(B) Uses.
(1) Permitted Uses.
FAYETTEVILLE TITLE XV - UDC/ CHAPTER 161: STIR EDITS IN STRIKEOUT -UNDERLINE
Unit 1 City-wide uses by right
Unit 4 Cultural and recreational facilities
Unit 5 Government facilities
Unit 13 Eating places
Unit 14 Hotel, motel, and amusement
facilities
Unit 16 Shopping goods
Gasoline service stations & drive-in
Unit 18
restaurants
Unit 19 Commercial recreation, small sites
Unit 25 Offices, studios, and related services
Unit 26
Multi -family dwellings
Unit 34
Liquor stores
Unit 40
Sidewalk Cafes
Unit 44
Cluster Housing Development
i
Unit 45 '
Small scale production
Unit 46
4
a
Short-term rental
161.26 - Downtown Core
(B) Uses.
(1) Permitted Uses.
Unit 1 City-wide uses by right
FAYETTEVILLE TITLE XV - UDC/ CHAPTER 161: STR EDITS IN STRIKEOUT -UNDERLINE
Unit 4 Cultural and recreational facilities
Unit 5 Government facilities
Unit 8 Single-family dwellings
Unit 9 Two-family dwellings
Unit 10 Three (3) and four (4) family
dwellings
Unit 13 Eating places
Unit 14 Hotel, motel, and amusement
facilities
Unit 16 Shopping goods
Unit 17 Transportation trades and services
Unit 19 Commercial recreation, small sites
Unit 24 Home occupations
Unit 25 Offices, studios, and related
services
Unit 26 Multi -family dwellings
Unit 34 1 Liquor stores
Unit 40 1 Sidewalk Cafes
Unit 41 I Accessory dwellings
Unit 44 Cluster Housing Development
Unit 45 9 Small scale production
Unit 46 9 Short-term rental
1
FAYETTEVILLE TITLE XV - UDC/ CHAPTER 161: STIR EDITS IN STRIKEOUT -UNDERLINE
161.27 - Main Street/Center
(B) Uses.
(1) Permitted uses.
Unit 1 City-wide uses by right
Unit 4 Cultural and recreational facilities
Unit 5 Government facilities
Unit 8 I
Single-family dwellings
Unit 9�I
Two-family dwellings
Three (3) and four (4) family
Unit 10
dwellings
Unit 13
Eating places
Hotel, motel, and amusement
Unit 14
facilities
Unit 16 I
Shopping goods
Unit 17 ( Transportation trades and services
Unit 19 Commercial recreation, small sites
Unit 24 I
Home occupations
Offices, studios, and related
Unit 25
services
Unit 26
Multi -family dwellings
Unit 34
Liquor stores
Unit 40
Sidewalk Cafes
Unit 41
Accessory dwellings
FAYETTEVILLE TITLE XV - UDC/ CHAPTER 161: STR EDITS IN STRIKEOUT -UNDERLINE
Unit 44
Cluster Housing Development
Unit 45
Small scale production
Unit 46
Short-term rental
161.28 - Downtown General
(B) Uses.
(1) Permitted Uses.
Unit 1 City-wide uses by right
Unit 4 Cultural and recreational facilities
Unit 5 Government facilities
Unit 8 Single-family dwellings
Unit 9 Two-family dwellings
Unit 10 Three (3) and four (4) family dwellings
Unit 13
Eating places
Unit 15
Neighborhood shopping goods
Unit 24
Home occupations
Unit 25
Offices, studios, and related services
Unit 26
Multi -family dwellings
Unit 40
Sidewalk Cafes
Unit 41 Accessory dwellings
Unit 44 Cluster Housing Development
FAYETTEVILLE TITLE XV - UDC/ CHAPTER 161: STR EDITS IN STRIKEOUT -UNDERLINE
Unit 45 Small scale production
Unit 46 Short-term rental
161.29 - Neighborhood Conservation
(B) Uses.
(1) Permitted Uses.
Unit 1 City-wide uses by right
Unit 8 Single-family dwellings
Unit 41 Accessory dwellings
Unit 46 Short-term rental
FAYETTEVILLE TITLE XV - UDC/ CHAPTER 162: STR EDITS IN STRIKEOUT -UNDERLINE
CHAPTER 162: - USE UNITS
162.01 - Establishment/Listing
The various use units referred to in the zoning district provisions are herein listed in numerical order.
Within the use units, the permitted uses are ordinarily listed in alphabetical order. In these use units
where there is a preliminary descriptive statement (which may mention specific uses) in addition to the
detailed list of uses, the detailed list shall govern.
Unit 1 City-wide uses by right
Unit 2 City-wide uses by conditional use permit
Unit 3 Public protection and utility facilities
Unit 4 Cultural and recreational facilities
Unit 5
Government facilities
Unit 6 I
Agriculture
Y I W1 Unit 7
Animal husbandry
Unit 8
Single-family dwellings
Unit 9 Two-family dwellings
Unit 10 Three (3) and four (4) family dwellings
Unit 11 Manufactured home park
Unit 12a Limited business
Unit 12b General business
Unit 13 Eating places
Unit 14 Hotel, motel and amusement facilities
Unit 15 Neighborhood shopping goods
Unit 16 Shopping goods
FAYETTEVILLE TITLE XV - UDC/ CHAPTER 162: STR EDITS IN STRIKEOUT -UNDERLINE
Unit 17
Transportation Trades and services
Gasoline service stations and drive-in/drive
Unit 18
through restaurants
Unit 19
Commercial recreation, small sites
Unit 20
Commercial recreation, large sites
Unit 21
Warehousing and wholesale
Unit 22
Manufacturing
Unit 23
Heavy industrial
Unit 24
Home occupation
Unit 25
Offices, studios, and related services
Unit 26
Multi -family dwellings
Wholesale bulk petroleum storage facilities
Unit 27
with underground storage tanks
Unit 28
Center for collecting recyclable materials
Unit 29
I Dance halls
Unit 30
Extractive uses
Facilities emitting odors & facilities
Unit 31
handling explosives
Unit 32
Sexually oriented business
Unit 33
Adult live entertainment club or bar
Unit 34
Liquor stores
Unit 35
Outdoor music establishments
FAYETTEVILLE TITLE XV - UDC/ CHAPTER 162: STR EDITS IN STRIKEOUT -UNDERLINE
Unit 36 Wireless communications facilities
Unit 37 Manufactured homes
Unit 38 Mini -storage units
Unit 39 Auto salvage and junk yards
Unit 40 Sidewalk Cafes
Unit 41 I
Accessory dwellings
Unit 42 I
Clean technologies
Unit 43
Animal boarding and training
Unit 44 I
Cluster Housing Development
Unit 45
Small scale production
Unit 46
Short-term rental
(0) Unit 14. Hotel, Motel, and Amusement Facilities.
(1) Description. Unit 14 consists of hotels, motels, and certain types of amusement facilities.
(2) Included Uses.
Hotel
Membership lodge
Motel
Motion picture theater
Night club, not providing dancing or outdoor music
Tavern, not providing dancing or outdoor music
Use Unit46, Short-term rental is also permitted within Use
FAYETTEVILLE TITLE XV - UDC/ CHAPTER 162: STR EDITS IN STRIKEOUT -UNDERLINE
Unit 14
(UU) Unit 46. Short-term rental.
(1) Description. Unit 46 is provided to allow a permanent residential dwelling unit, portion of a
residential dwelling unit, or room within a residential dwelling unit, to be leased and/or rented to
a guest(s) for a period of less than thirty (30) consecutive days.
(2) Included Uses.
Short-term rentals
02-24-20 PLANNING COMMISSION
FAYETTEVILLE TITLE XV - UDC/ CHAPTER 163: STR EDITS IN STRIKEOUT -UNDERLINE
CHAPTER 163: - USE CONDITIONS
163.01- Listing
The use conditions set forth in this chapter are the following. -
Bed and breakfast facilities
Carnival, circus, amusement park or similar temporary
open-air enterprise
Child care, nursery school
Dance halls
Facilities emitting odors and facilities handling explosives
Home occupations
Manufactured homes
Outdoor music establishments
Sexually oriented businesses
Short-term rentals
Tandem lot development
Wireless communications facilities
163.18 — Short-term rentals
General Standards
(1) Residential Zoning Districts. Short-term rentals may be permitted in all zoning districts where
residential uses are allowed by right.
(2) Commercial and Mixed Use Zoning Districts. Short-term rentals may be permitted in all zoning
districts where hotel/motel uses are permitted by right and shall not count towards the Type 2
short-term rental density cap in these districts except in multi -family buildings as specified in
Chapter 118 of the Fayetteville City Code.
02-24-20 PLANNING COMMISSION
FAYETTEVILLE TITLE XV - UDC/ CHAPTER 163: STR EDITS IN STRIKEOUT -UNDERLINE
m. olus two
operated as a short-
(4) Parkinq. Parking is limited to the maximum number of vehicles as allowed by the underlying
zoning district for the residential building on the property.
Special events are not permitted in a short-term rental. Example of
are not limited to, weddings, receptions, anniversaries, private
Decial events include, but
rties, fundraisers and
(6) Short-term rental units are in any structure established as a permanent
dwelling including an accessory dwelling unit. No recreational vehicle, trailer, other vehicle or
structure not classified as a permanent residential dwelling may be used as a short-term
rental.
6 Month Start-up Period. After the enactment of the short-term rental ordinance, existing short-
term rental operators shall have 6 months to obtain a business license and be considered in
compliance. After the 6-month start-up period, all short-term rental units must have a business
license to be considered in compliance. To qualify for this exemption as a pre-existing short-
term rental, satisfactory proof of operation prior to the enactment date shall be provided to the
city including a copy of a back -dated advertisement listing the unit and a copy of a transaction
prior to the adeptfon
NNEWd—ocumenting that the unit was utilized as a short-term
rental. Short- term rentals must also successfully pass an inspection as described in
§118.01(E)(9)(e). The City has complete discretion in determining whether such submitted
proof is sufficient and satisfactory.
(&After the enactment of the short-term rental ordinance, existing short-term rental
operators may temporarily continue to operate and shall have up to six months to obtain a
business license and be considered in compliance. After the six month start-up period, all
short- term rental units must have a business license to operate and be considered in
compliance. To qualify for this exemption from having to petition the Planning Commission
to obtain an individualized conditional use permit as a pre-existing short-term rental,
Satisfactory proof of operation within the last three years and prior to the enactment date
must be provided to the City such as a copy of an advertisement listing the unit and a copy
of a transaction documenting that the unit was utilized as a short-term rental within the
applicable time period. Short-term rentals must also successfully pass an inspection as
described in §118.01(E)(9)(e) of the U'ruficd De velol�)) w ('(ule to the City's satisfaction.
(b) Type 1 and 2 short-term rentals seeking a business license or permit under the 6-month
start-uD period which are currently operating in 2, 3 and 4 unit buildings in which more than
(c) All Type 2 short-term rentals submitting an application for a business license or permit after
the six month grace period has expired shall be required to obtain an individualized
conditional use permit from the Planning Commission and pass the Citv's premises insoectiA
to the short-term rental standards, except proposals that would
mission as a
use
02-24-20 PLANNING COMMISSION
FAYETTEVILLE TITLE XV - UDC/ CHAPTER 163: STR EDITS IN STRIKEOUT -UNDERLINE
(9) Short-term rentals must comply with all applicable codes under City Code Section 118.01 and
successfully obtain a business license prior to operation.
D'Andre Jones
Council Member
Matthew Petty
Council Member
Mayor Lioneld Jordan
City Attorney Kit Williams
City Clerk Kara Paxton
MINUTES
Ordinance Review Commission Meeting
Wednesday, March 17, 2021
Sloan Scroggin
Council Member
Holly Hertzberg
Council Member
Chairman Sloan Scroggin called the meeting to order at 5:30 P.M. with
himself and Holly Hertzberg present by Zoom.
2. Mary McGetrick began to explain the current status with amendments of
the Short-term Rental Ordinance as presented at the last Ordinance
Review Committee Meeting. Committee Member Matthew Petty soon
joined the meeting.
Mary discussed some additional potential changes for the Ordinance
Review Committee's consideration including a Sunset Clause so the
ordinance could be reviewed and safely changed in the future if
experience with the ordinance revealed problems or issues.
3. Chairman Scroggin allowed the two members of the public attending by
Zoom to speak.
4. Chairman Scroggin then asked City Attorney Kit Williams to discuss his
proposal. Kit apologized for submitting anything at this late time. His
proposal would allow residential short-term rentals which would follow
the same rules as normal rentals to operate without needing any new
permits. Operators of short-term rentals that desired 8 or more occupants
would be deemed Micro -Hotels and could operate in commercial or
mixed -use districts without conditional uses. Kit wanted to recognize
those as businesses rather than residential rentals and include them in Use
Unit 12a Limited Business which would require a conditional use like all
113 W. Mountain Fayetteville AR 72701 (479) 575-8313 N%�%,w_.favetteville-ar.gov
the other listed businesses to operate in a single-family residential district.
Kit opposed treating short-term operators who had been violating City law
better (giving them automatic conditional use permits) than property
owners who had not broken the law.
5. The members of the Ordinance Review Committee approved the Short-
term Rental Ordinance presented by Mary including the automatic
conditional use permits for owners already operating short-term rentals
for a substantial period of time. All short-term rentals (both #1 and #2)
would receive occupancy limits of two persons per bedroom, plus two
additional persons. No cap of 8 o 10 occupants would be enacted. A sunset
clause for about 14 months after the six month initial period when current
short-term operators were supposed to get safety inspections performed
by the city accomplished was approved. The Committee wanted to add a
requirement that operators have a rider to their homeowner's insurance
policy for the short-term rental.
6. The Ordinance Review Committee unanimously recommended that the
City Council pass the Short-term Rental Ordinance as amended. Mary will
send out the revised ordinance to the members of the Ordinance Review
Committee to ensure they are satisfied with her drafting including the new
provisions.
7. The Committee adjourned around 7:30 P.M.
City Attorney Kit Williams
2
FAYETTEVILLE TITLE XI — BUSINESS REGULATIONS/ CHAPTER 118: STIR EDITS IN STRIKEOUT -UNDERLINE
CHAPTER 118: - BUSINESS REGISTRY AND LICENSES
118.01 -Applicability
(A) General Businesses.
(1) All businesses, institutions, corporations, LLCs, LLPs, partnerships, non-profit associations or
corporations, sole proprietorships or other non -governmental entities with a physical address or
which operates either a legally permitted home occupation or a short-term rental within the
Fayetteville city limits shall be required to file for the City of Fayetteville Business Registry and
License. A covered business or entity with multiple physical addresses in Fayetteville must
obtain a separate business license for each such business address.
(2) In addition, any person or non -governmental entity who has or should have a sales tax permit
and operates out of a physical address within Fayetteville shall be required to file for the City
of Fayetteville Business Registry and License.
(3) In addition, any person or non -governmental entity who is engaged in any trade or occupation
which requires federal or state licenses and who operates out of a physical address within
Fayetteville shall be required to file for the City of Fayetteville Business Registry and License.
(B) Religious Entities. Churches and other religious institutions are exempt from this chapter unless they
are performing functions like daycare that must be licensed by the state or that generate revenue
upon which state sales or use taxes must be paid. The city business license shall not be required
for the religious entity but only for those functions that require a state license or upon which state
sales or use taxes must be paid.
(C) Minors Exempt. No individual under eighteen (18) years of age shall be required to register or obtain
a business license.
(D) Individual Landlords Renting Less Than Three (3) Dwelling Units Exempt. An individual landlord,
not operating as a corporation, LLC, LLP, or other business entity, who rents out less than three (3)
dwelling units, and no commercial, industrial, or institutional unit, site or building shall be exempt
from this chapter. However, a landlord that operates a short-term residential rental shall not be
exempt and must apply for and obtain a business license for each individual short-term rental.
(E) Short-term rentals. A residential dwelling unit, portion of a dwelling unit, or room within a
residential dwelling unit, leased and/or rented to a guest(s), for a period of less than thirty
consecutive (30) days.
(1) Short-term rental, Type 9. A short-term rental where the principal use of the property remains
as a full-time residence. The occupants or owner rent their primary residence as a short-term
rental. A copy of the Homestead Tax Credit or long-term lease agreement for the subject
property is required to be classified as a Type 1 rental. Accessory dwelling units (ADUs) as
defined in Unified Development Code Chapter 151 shall be considered a Type 1 short-term
(2) Short-term rental, Type 2. A short-term rental that is not occupied by a permanent resident. The
owner lists this property full-time as a short-term rental and has no intention of having permanent
residents living in the property. A conditional use permit is required for a Type 2 short-term rental
prior to the City issuing a business license, except as defined in §118.01(E)(4).
(3) License Required: No dwelling unit in the City shall be used as a short-term rental unless:
(a) The owner of the dwelling unit or operator of the short-term rental possess a valid and
current business license for the dwelling unit, and fully complies with all legal requirements
and duties imposed herein with respect to each and every short-term rental; and
FAYETTEVILLE TITLE XI — BUSINESS REGULATIONS/ CHAPTER 118: STR EDITS IN STRIKEOUT -UNDERLINE
(b) The owner has designated an agent, where said agent fully complies with all legal
requirements and duties imposed herein with respect to every short-term rental. The owner
(c)
6 Month Start-up Period. After the enactment of the short term rental ordinance existing short
term rental operators shall have 6 months to obtain a business license and be considered in
compliance. After the 6 month start-up period, all short term rental units must have a business
license to be considered in compliance. To qualify for this exem tion as aere-existing short-
term rental, satisfactory proof of operation prior to the
February 10, 2020 documenting that
the unit was utilized as a short-term rental to the enactment date shall be provided to the
city including a copy of a back -dated advertisement listing the unit and a copy of a transaction
prior to the adoption date documenting that the unit was utilized as a short-term rental. Short-
term rentals must also successfully pass an inspection as described in §118.01(E)(9)(e). The
City has complete discretion in determining whether such submitted proof is sufficient and
satisfactory.
the enactment of the short-term rent
I have up to six months to
obtain a business license and be considered in compliance. After the six month start-up
period, all short-term rental units must have a business license to operate and be
considered in compliance. To qualify for this exemption from having to petition the
Planning Commission to obtain an individualized conditional use permit as a pre-
existing short-term rental, satisfactory proof of operation within the last three years
and prior to the enactment date must be provided to the City such as a copy of an
advertisement listing the unit and a copy of a transaction documenting that the unit
was utilized as a short-term rental within the applicable time period. Short-term rentals
must also successfully pass an inspection as described in �118.01(E)(9)(e) of the
l'nifiecl1ki,clopmew Uccle to the City's satisfaction.
(b) Type 1 and 2 short-term rentals seeking a business license or permit under the 6-month
start-up period which are currently operating in 2, 3 and 4 unit buildings in which more
than 1 unit is being used as a short-term rental may obtain a business license for all
currently operatine short-term rentals.
(c) All Type 2 short-term rentals submitting an application for a business license or permit
after the six month grace period has expired shall be required to obtain an indivi ' _d
conditional use permit from the Planning Commission and pass the, LMA—aremis'
inspection prior to the City being able to issue a business license,
(5) No hosting platform shall facilitate or conduct any booking transaction for a short-term rental in
the City without the short-term rental first obtaining and maintaining possession of the requisite
business license.
(6) A separate business license shall be required for each dwelling unit used as a short-term rental.
(7) Any change in ownership requires a new or amended business license.
(8) If any required contact information changes for the associated business license, the person to
whom the license was issued shall immediately notify the Development Services Department in
writing.
(9) License Application. The application for a business license shall include at minimum, the
following information from applicants:
FAYETTEVILLE TITLE XI — BUSINESS REGULATIONS/ CHAPTER 118: STIR EDITS IN STRIKEOUT -UNDERLINE
(a) The property owner's information including legal name mailing address immediate contact
phone number and immediate contact E-mail address
(b) Information for the dwelling unit sublect to the application. inclusive of the physical street
address assigned by the City.
(c) The type and total number of dwelling units located on the lot of record containing the
dwelling unit sublect to the application.
(d) If the owner is not their own agent, the owner designated agent's information including
leaal name. mailing address. immediate contact phone number and immediate contact E-
mail address.
(e) Documentation of approval of a life safety and egress inspection by the City Building Safety
Division for the dwelling unit sublect to the application.
Proof of application for remittance of Hotel. Motel and Restaurant tax to the City of
Fayetteville, and verification that all sales, use, and Hotel. Motel and Restaurant taxes are
current.
(q) Any additional data as deemed necessary or desirable for permit approval by the
DPVPInpmPnt Servicas Qirector
(10) License Renewals Business licenses for short-term rentals shall be renewed in accordance
with Chapter 118 of the Business Regulations (Business Registry and Licenses).
FAYETTEVILLE TITLE XI — BUSINESS REGULATIONS/ CHAPTER 118: STIR EDITS IN STRIKEOUT -UNDERLINE
(11) Legal Duties of License Holders. An owner possessing a short-term rental license shall comply
at all times with the following requirements:
Short-term rentals shall be subject to, and may not exceed, the occ
limits
Advertisements. A short-term rental shall not be advertised if it violates occupancy,density,
safety, and any of the other provisions of the Fayetteville Code. No short-term rental unit
shall be advertised prior to having obtained a business license and the business license
number shall be included in the advertisement listing. No hosting platform or owner/agent
may offer, advertise, book, facilitate, or engage in short-term rental activity or
advertisement that violates any provision of the short-term rental code.
(c) Information and Posting. Business licensees shall provide to guests and post
conspicuously in the common area of the short-term rental unit the City phone number to
report a safety complaint.
12) Owner or Agent Accessibility. The property owner shall ensure that they or a d
are available at all times durino auest occupancv. including niahts and week(
(13) Guest records. The owner shall maintain summary guest registration records, which shall
contain the actual dates of occupancy, total number of guests per party per stay, and the rate(s)
charged, but shall not contain any personally identifiable information about guests. Such records
shall be maintained for three years and shall be provided to the City upon request.
(14) Health and safety. The owner shall ensure that each dwelling unit governed by this section
complies with the applicable provisions of the Unified Development Code Chapter 173: Building
Regulations.
(15) Criminal activity. The owner shall timely report any known or reasonably suspected criminal
activity by a quest to the Fayetteville Police Department.
(16) Taxes and fees. Except for those instances in which a hosting platform bears the responsibility
for collecting and remitting taxes and fees applicable to short-term rentals, the property owner
shall timely remit in full Fayetteville Hotel, Motel and Restaurant tax and other applicable local,
state, and federal taxes and City fees owed in connection with any short-term rental. The failure
of a hosting platform to collect and remit taxes and fees shall not relieve an owner of the
obligation to pay taxes and fees owed pursuant to this section.
(18) Density For Type 2 Short-term Rentals. A city-wide density cap of M percent (2%) of all
dwelling units in the Fayetteville city limits may be utilized as Type 2 rentals. Total dwelling units
are determined from current United States Census Bureau and/or American Community Survey
numbers, whichever number is higher. A conditional use permit may not permit:
(a) More Type 2 short-term rentals than what is allowed by the city-wide density cap.
(b) M&Nhichever is greater, of total dwdlMMMM as Tvpe
2 rentals within a multi -family dwelling complex.
(d) Type 2 short-term rentals in commercial and mixed -use zoning districts where hotel/motels
are permitted by right shall not count towards the city-wide density cap.
FAYETTEVILLE TITLE XI — BUSINESS REGULATIONS/ CHAPTER 118: STR EDITS IN STRIKEOUT -UNDERLINE
(19) Suspension and Revocation. If the has reason to believe
that any of the grounds specified in §118.03(A) of the Fayetteville Code exist, or that any rental
unit was rented for less than one full night, or to more than one party of guests for the same
period of time or otherwise failed to comply with all terms and conditions of this section, the
may suspend or revoke the short-term rental's business
license pursuant to the procedures detailed in §118.03 and in §118.04 of the Fayetteville Code.
(20) Short-term rentals must comply with all applicable codes under Unified Development Code
Chapter 163.18 and successfully obtain a business license prior to operation.
FAYETTEVILLE TITLE XV - UDC/ CHAPTER 151: STR EDITS IN STRIKEOUT -UNDERLINE
CHAPTER 151: DEFINITIONS
Agent, Owner -Designated. A person designated by the owner of a property, where designee has a physical
address within the City of Fayetteville is accessible 24-hours a day, and otherwise in compliance with the
UDC requirements for short-term rentals. The owner may serve as their own agent.
Bedroom. A fully enclosed portion of a building designed or intended to be used principally for sleeping
purposes.
Booking transaction. Any contractual agreement between a quest and an owner relative to a short-term
rental.
Dwelling unit (zoning). One (1) room, or rooms connected together, constituting a separate, independent
housekeeping establishment for owner occupancy, or rental or lease on a weekly, monthly, or longer basis,
and physically separated from any other rooms or dwelling units which may be in the same structure, and
containing independent cooking and sleeping facilities.
Guest, Short-term rental. Any person who occupies a short-term rental, for a period of less than 30
consecutive days, pursuant to a short-term rental lease term and/or other like agreement, for the purposes
of temporary lodging.
Host, Short-term rental. The owner(s) of a short-term rental who has authority to offer the dwelling unit,
portion thereof, or a room within the dwelling unit as a legal short-term rental.
Owner. A person who owns at least a 50 percent interest in a dwelling unit used for short-term rentals.
Permanent residential dwelling. A structure that has been legally permitted or is a legal, non -conforming
structure allowed for permanent occupancy as a residential dwelling.
Hosting Platform. A person or entity that participates in the short-term rental business by providing and
collecting or receiving a fee(s) for facilitating booking transactions through which a short-term rental host
may offer a short-term rental to a short-term rental guest. Hosting platforms typically, though not always,
facilitate booking transactions through an on line platform that allows a short-term rental host to advertise
the short-term rental through a website provided by the hosting platform and the hosting platform conducts
a transaction by which potential short-term rental guest reserve a guestroom(s) and arrange payment,
whether the short-term rental guest pays rent directly to the short-term rental host or to the hosting platform.
Short-term rental. A residential dwelling unit, portion of a dwelling unit, or room within a residential dwelling
unit, leased and/or rented to a quest(s), for a period of less than thirty consecutive (30) days.
Short-term rental, Type 1. A short-term rental where the principal use of the property remains as a full-time
residence. The occupants or owner rent their primary residence as a short-term rental. A copy of the
Homestead Tax Credit or long-term lease agreement for the subject property is required to be classified as
a Type 1 rental. Accessory dwelling units (ADUs) as defined in Unified Development Code Chapter 151
shall be considered a Type 1 short-term rental.
Short-term rental, Type 2. A short-term rental that is not occupied by a permanent resident. The owner lists
this property full-time as a short-term rental and has no intention of having permanent residents living in the
property. A conditional use permit is required for a Type 2 short-term rental prior to the City issuing a
business license.
FAYETTEVILLE TITLE XV - UDC/ CHAPTER 161: STR EDITS IN STRIKEOUT -UNDERLINE
CHAPTER 161: - ZONING REGULATIONS
161.02 - Zoning Compliance And Business License
(A) Required. It shall be unlawful to use or occupy or permit the use or occupancy of any building or
premises, or both, or part thereof hereafter created, erected, changed, converted, or wholly or partly
altered, or enlarged in its use or structure until a business license has been issued by the Zoning and
Development Administrator stating that the proposed use of the building or land conforms to the
requirements of this chapter.
(B) Conforming Uses. Uses permitted within the underlying zoning district shall be eligible for a
business license, subject to §118 of the Fayetteville Code.
(C) Nonconforming Uses.
(1) Except for short-term rental units subject to chapter 163 of the UDC, uses within the following
use unit categories established prior to September 7, 2010 and operating in a zoning district
that does not currently allow the use, are for the purposes of zoning compliance determined to
be an existing nonconforming use, may continue to operate and are eligible to obtain a city
business license. The exemption shall not be construed as relieving the owner or operator of
such business from the regulations of the business license ordinance, including grounds for
suspension and revocation, or from any other applicable federal, state, or city regulations.
Use Units
3 Public protection facilities
4 Cultural and recreational facilities
5 Government facilities
6 Agricultural
7 Animal husbandry
12a Limited business
13 Eating places
15 Neighborhood shopping goods
24 Home occupation
25 Offices, studios, and related services
FAYETTEVILLE TITLE XV - UDC/ CHAPTER 161: STIR EDITS IN STRIKEOUT -UNDERLINE
(2) Except for short-term rental units subiect to chapter 163 of the UDC uses within the following
use unit categories established prior to July 15, 2003 and operating in a zoning district that does
not currently allow the use, are for the purposes of zoning compliance determined to be an
existing nonconforming use, may continue to operate and are eligible to obtain a city business
license. The exemption shall not be construed as relieving the owner or operator of such
business from the regulations of the business license ordinance, including grounds for
suspension and revocation, or from any other applicable federal, state, or city regulations.
Use Units
2 City-wide uses by conditional use permit
14 Hotel, motel and amusement facilities
16 Shopping goods
17 Transportation trades and services
18 Gasoline service stations & drive in/drive
through restaurants
19 Commercial recreation, small sites
20 Commercial recreation, large sites
21 Warehousing and wholesale
22 Manufacturing
23 Heavy industrial
Wholesale bulk petroleum storage
27 facilities with
underground tanks
28 Center for collecting recyclable materials
29 Dance halls
30 Extractive uses
FAYETTEVILLE TITLE XV - UDC/ CHAPTER 161: STR EDITS IN STRIKEOUT -UNDERLINE
31 Facilities emitting odors/handling
explosives
32 Sexually oriented businesses
33 Adult live entertainment club or bar
34 Liquor stores
35
Outdoor music establishments
l
36
Wireless communications facilities
38
Mini -storage units
39
Auto salvage and junk yards
40
Sidewalk cafes
42 Clean technologies
43 Animal boarding and training
161.3 - District R-A, Residential -Agricultural
(B) Uses.
(1)
Permitted Uses.
Unit 1
City-wide uses by right
Unit 3
Public protection and utility facilities
Unit 6
Agriculture
i
Unit 7
Animal husbandry
Unit 8
Single-family dwellings
FAYETTEVILLE TITLE XV - UDC/ CHAPTER 161: STIR EDITS IN STRIKEOUT -UNDERLINE
Unit 9 Two-family dwellings
Unit 37 Manufactured homes
Unit 41 Accessory dwellings
Unit 43 Animal boarding and training
Unit 46 Short-term rentals
161.4 - District RSF-.5, Residential Single -Family - One Half (%) Unit Per Acre
(B) Uses.
(1) Permitted Uses.
Unit 1 City-wide uses by right
Unit 8 Single-family dwellings
Unit 41 Accessory dwellings
Unit 46 Short-term rentals
161.5 -District RSF-1, Residential Single -Family -One (1) Unit Per Acre
(B) Uses.
(C) Permitted Uses.
Unit 1 City-wide uses by right
Unit 8 1 Single-family dwellings
Unit 41 Accessory dwellings
Unit 46 Short-term rentals
FAYETTEVILLE TITLE XV - UDC/ CHAPTER 161: STR EDITS IN STRIKEOUT -UNDERLINE
161.6 -District RSF-2, Residential Single -Family -Two (2) Units Per Acre
(B) Uses.
(C) Permitted Uses.
Unit 1 City-wide uses by right
Unit 8 Single-family dwellings
Unit 41 Accessory dwellings
Unit 46 Short-term rentals
161.7 -District RSF-4, Residential Single -Family -Four (4) Units Per Acre
(B) Uses.
(1) Permitted Uses.
Unit 1 City-wide uses by right
Unit 8 Single-family dwellings
Unit 41 Accessory dwellings
Unit 46 Short-term rentals
161.8 -District RSF-7, Residential Single -Family -Seven (7) Units Per Acre
(B) Uses.
(1) Permitted Uses.
Unit 1 City-wide uses by right
Unit 8 Single-family dwellings
Unit 41 Accessory dwellings
Unit 46 Short-term rentals
FAYETTEVILLE TITLE XV - UDC/ CHAPTER 161: STR EDITS IN STRIKEOUT -UNDERLINE
161.9 -District RSF-8, Residential Single -Family -Eight (8) Units Per Acre
(B) Uses.
(1) Permitted Uses.
Unit 1 City-wide uses by right
Unit 8 Single-family dwellings
Unit 41 Accessory dwellings
Unit 46 Short-term rentals
161.10 - District RSF-18, Residential Single -Family - Eighteen (18) Units Per Acre
(B) Uses.
(1) Permitted Uses.
Unit 1 City-wide uses by right
Unit 8 Single-family dwellings
Unit 41 Accessory dwellings
Unit 46 Short-term rentals
161.11- District RI-12, Residential Intermediate, Twelve (12) Units Per Acre
(B) Uses.
(1) Permitted Uses.
Unit i -City-wide uses by right
Unit 8 Single-family dwellings
Unit 9 Two (2) family dwellings
Unit 10 Three (3) and four (4) family dwellings
FAYETTEVILLE TITLE XV - UDC/ CHAPTER 161: STR EDITS IN STRIKEOUT -UNDERLINE
Unit 41 Accessory dwellings
Unit 44 Cluster Housing Development
Unit 46 Short-term rentals
161.12 - District RI-U, Residential Intermediate - Urban
(B) Uses.
(1) Permitted Uses.
Unit 1 City-wide uses by right
Unit 8 Single-family dwellings
Unit 9 Two (2) family dwellings
Unit 10 Three (3) and four (4) family dwellings
Unit 41 Accessory dwellings
Unit 44 Cluster housing development
Unit 46 Short-term rentals
161.13 - District RMF-6, Residential Multi -Family - Six (6) Units Per Acre
(B) Uses.
(1) Permitted Uses.
Unit 1 City-wide uses by right
Unit 8 Single-family dwellings
Unit 9 Two-family dwellings
FAYETTEVILLE TITLE XV - UDC/ CHAPTER 161: STR EDITS IN STRIKEOUT -UNDERLINE
Unit 10 Three (3) and four (4) family dwellings
Unit 26 Multi -family dwellings
Unit 41 Accessory dwellings
Unit 44 Cluster Housing Development
Unit 46 Short-term rental
161.14 - District RMF-12, Residential Multi -Family - Twelve (12) Units Per Acre
(B) Uses.
(1) Permitted Uses.
Unit 1 City-wide uses by right
Unit 8 Single-family dwellings
Unit 9 Two-family dwellings
Unit 10 Three (3) and four (4) family dwellings
Unit 26 Multi -family dwellings
Unit 41 Accessory dwellings
Unit 44 Cluster Housing Development
Unit 46+Short-term rental
—L
161.15 - District RMF-18, Residential Multi -Family - Eighteen (18) Units Per Acre
(B) Uses.
(1) Permitted Uses.
FAYETTEVILLE TITLE XV - UDC/ CHAPTER 161: STIR EDITS IN STRIKEOUT -UNDERLINE
Unit 1 City-wide uses by right
Unit 8 Single-family dwellings
Unit 9 Two-family dwellings
Unit 10 Three (3) and four (4) family dwellings
Unit 26 Multi -family dwellings
Unit 41 Accessory dwellings
Unit 44 Cluster Housing Development
Unit 46 Short-term rental
161.16 - District RMF-24, Residential Multi -Family - Twenty -Four (24) Units Per Acre
(B) Uses.
(1) Permitted Uses.
Unit 1 City-wide uses by right
Unit 8 Single-family dwellings
Unit 9 Two-family dwellings
Unit 10 Three (3) and four (4) family dwellings
Unit 26 Multi -family dwellings
Unit 41 Accessory dwellings
Unit 44 Cluster Housing Development
Unit 46 Short-term rental
FAYETTEVILLE TITLE XV - UDC/ CHAPTER 161: STIR EDITS IN STRIKEOUT -UNDERLINE
161.17 - District RMF-40, Residential Multi -Family - Forty (40) Units Per Acre
(B) Uses.
(1) Permitted Uses.
Unit 1 City-wide uses by right
Unit 8 Single-family dwellings
Unit 9 Two-family dwellings
Unit 10 Three (3) and four (4) family dwellings
Unit 26 Multi -family dwellings
Unit 41 Accessory dwellings
Unit 44 Cluster Housing Development
Unit 46 Short-term rental
161.18 - NS-L, Neighborhood Services - Limited
(B) Uses.
(1) Permitted Uses.
Unit 1 City-wide uses by right
Unit 8 Single-family dwellings
Unit 9 Two (2) family dwellings
Unit 10 Three (3) and four (4) family
dwellings
Unit
Limited Business
12a
Unit 24 Home occupations
FAYETTEVILLE TITLE XV - UDC/ CHAPTER 161: STR EDITS IN STRIKEOUT -UNDERLINE
Unit 40 Sidewalk cafes
Unit 41 Accessory dwelling units
Unit 44 Cluster housing development
Unit 46 Short-term rental
161.19 - NS-G, Neighborhood Services - General
(B) Uses.
(1) Permitted Uses.
Unit 1 City-wide uses by right
Unit 8 Single-family dwellings
Unit 9 Two-family dwellings
Unit 10 Three (3) and four (4) family
dwellings
Unit 12b General business
Unit 24 Home occupations
Unit 40 Sidewalk cafes
Unit 41
Accessory dwelling units
Unit 44
Cluster housing development
Unit 46
Short-term rental
161.20 - District R-O, Residential Office
(B) Uses.
FAYETTEVILLE TITLE XV - UDC/ CHAPTER 161: STIR EDITS IN STRIKEOUT -UNDERLINE
(1) Permitted uses.
Unit 1 City-wide uses by right
Unit 5 Government facilities
Unit 8 Single-family dwellings
Unit 9 Two-family dwellings
Unit 12a Limited business
Unit 25 Offices, studios, and related services
Unit 41 Accessory dwellings
Unit 44 Cluster Housing Development
Unit 46 Short-term rental
161.22 - Community Services
(B) Uses.
(1)
Permitted Uses.
Unit 1
City-wide uses by right
Unit 4 !
Cultural and recreational facilities
Unit 5 I
Government facilities
Unit 8 !
Single-family dwellings
Unit 9
Two-family dwellings
Unit 10
Three (3) and four (4) family dwellings
Unit 13
Eating places
FAYETTEVILLE TITLE XV - UDC/ CHAPTER 161: STR EDITS IN STRIKEOUT -UNDERLINE
Unit 15 Neighborhood Shopping goods
Gasoline service stations and drive -
Unit 18
in/drive through restaurants
Unit 24 Home occupations
Unit 25 Offices, studios and related services
Unit 26 Multi -family dwellings
Unit 40 Sidewalk Cafes
Unit 41 Accessory dwellings
Unit 44 Cluster Housing Development
Unit 45 Small scale production
Unit 46 Short-term rental
161.24 - Urban Thoroughfare
(B) Uses.
(1) Permitted Uses
Unit 1
City-wide uses by right
i
Unit 4
Cultural and recreational facilities
Unit 5
Government facilities
3
Unit 8
Single-family dwellings
i
Unit 9
Two (2) family dwellings
i
Three (3) and four (4) family
Unit 10
dwellings
FAYETTEVILLE TITLE XV - UDC/ CHAPTER 161: STIR EDITS IN STRIKEOUT -UNDERLINE
Unit 13 Eating places
Unit 14 Hotel, motel and amusement
services
Unit 16 Shopping goods
Unit 17 Transportation trades and services
Unit 18
Gasoline service stations and drive-
in/drive through restaurants
Unit 19 Commercial recreation, small sites
Unit 24 Home occupations
Unit 25 Offices, studios, and related
services
Unit 26 _ Multi -family dwellings
Unit 34 Liquor store
Unit 40 1 Sidewalk cafes
Unit 41 1 Accessory Dwellings
Unit 44 Cluster Housing Development
Unit 45 Small scale production
Unit 46 1 Short-term rental
161.25 - District C-3, Central Commercial
(B) Uses.
(1) Permitted Uses.
FAYETTEVILLE TITLE XV - UDC/ CHAPTER 161: STR EDITS IN STRIKEOUT -UNDERLINE
Unit 1 City-wide uses by right
Unit 4 Cultural and recreational facilities
Unit 5 Government facilities
Unit 13 Eating places
Unit 14 Hotel, motel, and amusement
facilities
Unit 16 Shopping goods
i
Gasoline service stations & drive-in
Unit 18
restaurants
Unit 19 Commercial recreation, small sites
Unite Offices, studios, and related services
Unit 26 ( Multi -family dwellings
Unit 34 ( Liquor stores
Unit 40 9 Sidewalk Cafes
Unit 44 Cluster Housing Development
Unit 45 I Small scale production
Unit 46 Short-term rental
161.26 - Downtown Core
(B) Uses.
(1) Permitted Uses.
Unit 1 City-wide uses by right
FAYETTEVILLE TITLE XV - UDC/ CHAPTER 161: STR EDITS IN STRIKEOUT -UNDERLINE
Unit 4 Cultural and recreational facilities
Unit 5
Government facilities
Unit 8
Single-family dwellings
Unit 9
Two-family dwellings
Three (3) and four (4) family
Unit 10
dwellings
Unit 13
Eating places
Hotel, motel, and amusement
Unit 14
facilities
Unit 16
Shopping goods
Unit 17
Transportation trades and services
Unit 19
Commercial recreation, small sites
Unit 24
Home occupations
Offices, studios, and related
Unit 25
services
Unit 26
Multi -family dwellings
Unit 34
Liquor stores
Unit 40
Sidewalk Cafes
Unit 41
Accessory dwellings
Unit 44
Cluster Housing Development
Unit 45
Small scale production
Unit 46
Short-term rental
FAYETTEVILLE TITLE XV - UDC/ CHAPTER 161: STR EDITS IN STRIKEOUT -UNDERLINE
161.27 - Main Street/Center
(B) Uses.
(1) Permitted uses.
Unit 1 City-wide uses by right
Unit 4 Cultural and recreational facilities
Unit 5 Government facilities
Unit 8 Single-family dwellings
Unit 9 Two-family dwellings
Unit 10 Three (3) and four (4) family
dwellings
Unit 13 Eating places
Unit 14 Hotel, motel, and amusement
facilities
Unit 16 Shopping goods
Unit 17 Transportation trades and services
Unit 19 Commercial recreation, small sites
Unit 24 Home occupations
Unit 25 Offices, studios, and related
Iservices
Unit 26 I Multi -family dwellings
Unit 34 Liquor stores
Unit 40� Sidewalk Cafes
Unit 41 I Accessory dwellings
FAYETTEVILLE TITLE XV - UDC/ CHAPTER 161: STR EDITS IN STRIKEOUT -UNDERLINE
Unit 44
Cluster Housing Development
Unit 45
Small scale production
Unit 46
Short-term rental
161.28 - Downtown General
(B) Uses.
(1) Permitted Uses.
Unit 1 City-wide uses by right
Unit 4 Cultural and recreational facilities
Unit 5 Government facilities
Unit 8 Single-family dwellings
Unit 9 Two-family dwellings
Unit 10 Three (3) and four (4) family dwellings
Unit 13
Eating places
Unit 15
Neighborhood shopping goods
Unit 24
Home occupations
i
I
Unit 25
Offices, studios, and related services
Unit 26
Multi -family dwellings
Unit 40
Sidewalk Cafes
Unit 41 Accessory dwellings
Unit 44 Cluster Housing Development
FAYETTEVILLE TITLE XV - UDC/ CHAPTER 161: STR EDITS IN STRIKEOUT -UNDERLINE
Unit 45 Small scale production
Unit 46 Short-term rental
161.29 - Neighborhood Conservation
(B) Uses.
(1) Permitted Uses.
Unit 1 City-wide uses by right
Unit 8 Single-family dwellings
Unit 41 Accessory dwellings
Unit 46 Short-term rental
FAYETTEVILLE TITLE XV - UDC/ CHAPTER 162: STR EDITS IN STRIKEOUT -UNDERLINE
CHAPTER 162: - USE UNITS
162.01 - Establishment/Listing
The various use units referred to in the zoning district provisions are herein listed in numerical order.
Within the use units, the permitted uses are ordinarily listed in alphabetical order. In these use units
where there is a preliminary descriptive statement (which may mention specific uses) in addition to the
detailed list of uses, the detailed list shall govern.
Unit 1 City-wide uses by right
Unit 2 City-wide uses by conditional use permit
Unit 3 Public protection and utility facilities
Unit 4 Cultural and recreational facilities
Unit S Government facilities
Unit 6 Agriculture
Unit 7 Animal husbandry
Unit 8 Single-family dwellings
Unit 9 Two-family dwellings
Unit 10 Three (3) and four (4) family dwellings
Unit 11 Manufactured home park
Unit 12a Limited business
Unit 12b General business
Unit 13 Eating places
Unit 14 Hotel, motel and amusement facilities
Unit 15 Neighborhood shopping goods
Unit 16 Shopping goods
FAYETTEVILLE TITLE XV - UDC/ CHAPTER 162: STR EDITS IN STRIKEOUT -UNDERLINE
Unit 17 Transportation Trades and services
Gasoline service stations and drive-in/drive
Unit 18
through restaurants
Unit 19 Commercial recreation, small sites
Unit 20 Commercial recreation, large sites
Unit 21 Warehousing and wholesale
Unit 22 Manufacturing
Unit 23 Heavy industrial
Unit 24
Home occupation
Unit 25
Offices, studios, and related services
Unit 26
Multi -family dwellings
Wholesale bulk petroleum storage facilities
Unit 27
with underground storage tanks
Unit 28
Center for collecting recyclable materials
Unit 29
Dance halls
Unit 30 I
Extractive uses
Facilities emitting odors & facilities
Unit 31
i
handling explosives
I
Unit 32
Sexually oriented business
Unit 33
Adult live entertainment club or bar
Unit 34 Liquor stores
Unit 35 Outdoor music establishments
FAYETTEVILLE TITLE XV - UDC/ CHAPTER 162: STR EDITS IN STRIKEOUT -UNDERLINE
Unit 36 Wireless communications facilities
Unit 37 Manufactured homes
Unit 38 Mini -storage units
Unit 39 Auto salvage and junk yards
Unit 40 Sidewalk Cafes
Unit 41 Accessory dwellings
Unit 42 Clean technologies
Unit 43 Animal boarding and training
Unit 44 Cluster Housing Development
Unit 45 Small scale production
Unit 46 _ Short-term rental
(0) Unit 14. Hotel, Motel, and Amusement Facilities.
(1) Description. Unit 14 consists of hotels, motels, and certain types of amusement facilities.
(2) Included Uses.
Hotel
Membership lodge
Motel
Motion picture theater
Night club, not providing dancing or outdoor music
Tavern, not providing dancing or outdoor music
Use Unit 46, Short-term rental is also permitted within Use
FAYETTEVILLE TITLE XV - UDC/ CHAPTER 162: STIR EDITS IN STRIKEOUT -UNDERLINE
Unit 14
(UU) Unit 46. Short-term rental.
a
)n. Unit 46 is provided to allow a permanent residential dwelli
dwelling unit, or room within a residential dwelling unit, to be lee
for a period of less than thirty (30) consecutive days.
(2) Included Uses.
Short-term rentals
unit, portion of a
I and/or rented to
02-24-20 PLANNING COMMISSION
FAYETTEVILLE TITLE XV - UDC/ CHAPTER 163: STR EDITS IN STRIKEOUT -UNDERLINE
CHAPTER 163: - USE CONDITIONS
163.01 - Listing
The use conditions set forth in this chapter are the following:
Bed and breakfast facilities
Carnival, circus, amusement park or similar temporary
open-air enterprise
Child care, nursery school
Dance halls
Facilities emitting odors and facilities handling explosives
Home occupations
Manufactured homes
Outdoor music establishments
Sexually oriented businesses
Short-term rentals
Tandem lot development
Wireless communications facilities
163.18 — Short-term rentals
General Standards
(1) Residential Zoning Districts. Short-term rentals may be permitted in all zoning districts where
residential uses are allowed by right.
(2) Commercial and Mixed Use Zoning Districts. Short-term rentals may be permitted in all zoning
districts where hotel/motel uses are permitted by right and shall not count towards the Type 2
short-term rental density cap in these districts except in multi -family buildings as specified in
Chapter 118 of the Fayetteville City Code.
02-24-20 PLANNING COMMISSION
FAYETTEVILLE TITLE XV - UDC/ CHAPTER 163: STR EDITS IN STRIKEOUT -UNDERLINE
m, plus two (2) %'�-
he entire unit when operated as a short-term
(4) Parking. Parking is limited to the maximum number of vehicles as allowed by the underlying
zoning district for the residential building on the property.
Special events are not permitted in a short-term rental. Example of
are not limited to, weddings, receptions, anniversaries, private
business seminars.
al events include, but
rties, fundraisers and
Short-term rental units are in any structure established as a permanent
dwelling including an accessory dwelling unit. No recreational vehicle, trailer, other vehicle or
structure not classified as a permanent residential dwelling may be used as a short-term
rental.
(7) 6 Month Start-up Period. After the enactment of the short-term rental ordinance, existing short-
term rental operators shall have 6 months to obtain a business license and be considered in
compliance. After the 6-month start-up period, all short-term rental units must have a business
license to be considered in compliance. To qualify for this exemption as a pre-existing short-
term rental, satisfactory proof of operation prior to the enactment date shall be provided to the
city includin a co of a back -dated advertisement listingthe unit and a co of a transaction
prior to the adept+ea
documenting that the unit was utilized as a short-term
rental. Short- term rentals must also successfully pass an inspection as described in
§118.01(E)(9)(e). The City has complete discretion in determining whether such submitted
proof is sufficient and satisfactory.
(a) After the enactment of the short-term rental ordinance, existing short-term rental
operators may temporarily continue to operate and shall have up to six months to obtain a
business license and be considered in compliance. After the six month start-up period all
short- term rental units must have a business license to operate and be considered in
compliance. To qualify for this exemption from having to petition the Planning Commission
to obtain an individualized conditional use permit as a pre-existing short-term rental,
satisfactory proof of operation within the last three years and prior to the enactment date
must be provided to the City such as a copy of an advertisement listing the unit and a copy
of a transaction documenting that the unit was utilized as a short-term rental within the
applicable time period. Short-term rentals must also successfully pass an inspection as
described in §118.01(E)(9)(e) of the tilifiecl Derelojimc N ('o le to the City's satisfaction.
Type 1 and 2 short-term rentals seeking a business license or permit under the 6-month
start-up period which are currently operating in 2, 3 and 4 unit buildings in which more than
1 unit is being used as a short-term rental may obtain a business license for all currently
�ng short-term rentals.
(c) All Type 2 short-term rentals submitting an application for a business license or permit after.
the six month grace period has expired shall be required to obtain an individualized
conditional use permit from the Planning Commission and pass the City's premises inspection
the Cit- issue a bujillMicense.
Dtions to the short-term rental standards, except proposals that would
exceed the city-wide density maximum, may be granted by the Planning Commission as a
conditional use permit.
02-24-20 PLANNING COMMISSION
FAYETTEVILLE TITLE XV - UDC/ CHAPTER 163: STR EDITS IN STRIKEOUT -UNDERLINE
(9) Short-term rentals must comply with all applicable codes under City Code Section 118.01 and
successfully obtain a business license prior to operation.
Received 4/7/21 8:37 AM
silDEPARTMENTAL CORRESPONDENCE
OFFICE OF THE
CITY ATTORNEY
Kit Williams
TO: Mayor Jordan
City Attorney
City COUriClI
Blake Pennington
Assistant City Attorney
CC: Susan Norton, Chief of Staff
Batker
loci Paralegal
Mary McGetrick, Long Range Planner
Jonathan Curth, Development Manager
FROM: Kit Williams, City Attorney q�__
DATE: April 2, 2021
RE: Explanation of the Constitutional Requirement for Equal Protection of the
Laws for the Short-term Rental Ordinance
CONSTITUTIONAL PROVISIONS
"(N)or shall any State ... deny to any person within its jurisdiction the equal
protection of the laws." 14th Amendment to United States Constitution
"The equality of all persons before the law is recognized, and shall ever remain
inviolate..." Arkansas Constitution Article 2 §3 Equality before the law.
"The General Assembly shall not grant to any citizen, or class of citizens, privileges
or immunities which, upon the same terms, shall not equally belong to all citizens.
"Arkansas Constitution Article 2§18 Privileges and Immunities -Equality
"The Equal Protection Clause of the Fourteenth Amendment 'is essentially a direction
that all persons similarly situated should be treated alike."' Lan7rence v. Texas, 539 US 558,
579 (2003); Justice O'Connor concurring.
SHORT-TERM RENTAL ORDINANCE ISSUES
The proposed Short-term Rental Ordinance must comply with all these
constitutional provisions to be valid. Let me illustrate the Equal Protection of the Lazvs and
other constitutional problems inherent within the ordinance presented by the Planning
Department for enactment by how three typical Fayetteville landlords would be treated
pursuant to this law.
Amy, Bob, and Connie are three landlords that each own a typical three bedroom
house in a Fayetteville neighborhood. Although having slightly different floor plans, all
three houses have about the same square footage built on similarly sized lots. The houses
sit side by side along the same residential street and have all been owned and operated
as rentals for the last decade.
Amy and Connie have always operated their houses as normal monthly rentals
and obeyed all zoning and other city regulations. Bob, who owns the middle house,
started off also renting his, house as a monthly rental. However, about three years ago
Bob decided to try to increase his annual profit on his house by listing and operating the
house as a short-term rental (less than 30 days at a time). This short-term rental operation
violated Fayetteville's Unified Development Code, but generated significantly more money
for Bob. Amy and Connie learned that Bob has been using his house as a short-term
rental because their tenants have complained about the large number of cars parking not
only in Bob's driveway, but also spilling over into and taking up much of the on -street
parking spaces.
The proposed Short-term Rental Ordinance requires that short-term rental
operators who rent their entire house and do not live there must obtain a Conditional Use
Permit from the Planning Commission. Actually, the ordinance only requires that
landlords like Amy who have not violated the Fayetteville Code must pay the $100.00
application fee and request the Planning Commission to grant them a Conditional Use
Permit. On the other hand, landlords like Bob (and hundreds of others) who have long
violated City law and disobeyed the Unified Development Code by illegally operating short-
term rentals get a free pass and a free Conditional Use Permit.
Bob and hundreds of his fellow law breakers do not have to apply to the Planning
Commission (and pay the $100.00 application fee), nor spend hours to attend the
Planning Commission Meeting to request the required Conditional Use Permit. The
proposed ordinance automatically and for free grants them a Conditional Use Permit. If
a landlord like Amy has obeyed our Fayetteville Code, she must pay the $100.00 application
fee and hope the Planning Commission will grant her a Conditional Use Permit to operate
a short-term rental. In contrast, a landlord like Bob who has long violated the Fayetteville
Code by illegally operating a short-term rental gets favorable treatment from our law by
automatically receiving a free Conditional Use Permit.
No matter how you look at it, a landlord like Bob who has long violated our Code
is treated much more favorably than a landlord like Amy who has not violated our Code.
Amy, who wants to convert her regular rental into a short-term rental once it becomes
legal, is treated much worse ($100.00 fee; time, effort and uncertainty of applying to and
presenting her request for a Conditional Use Permit to the Planning Commission) than
Bob who immediately is granted his free Conditional Use Permit with no hoops to jump
through, no uncertainty, no efforts, and none of preparation hours required of Amy.
2
The favoring of hundreds of law breakers over potentially thousands of our
citizens who have faithfully obeyed Fayetteville's laws does not only appear pretty
unfair, but may be a violation of the Equal Protection of the Lazns Clause. Justice Kennedy
writing for the United Sates Supreme Court in Romer v. Evans, 517 U.S. 620, 633-634 (1996)
puts it this way:
"It is not within our constitutional tradition to enact laws of this sort.
Central both to the idea of the rule of law and to our own Constitution's
guarantee of equal protection is the principle that government and each of
its parts remain open on impartial terms to all who seek its assistance.
'Equal protection of the laws is not achieved through indiscriminate
imposition of inequalities'. Respect for this principle explains why laws
singling out a certain class of citizens for disfavored legal status or general
hardships are rare. A law declaring that in general it shall be more difficult
for one group of citizens than for all others to seek aid from the government
is itself a denial of equal protection of the laws in the most literal sense. 'The
guaranty of 'equal protection of the laws is a pledge of the protection of
equal laws." (Citations omitted)
In the case of the Short-term rental ordinance, the "certain class of citizens for
disfavored legal status or general hardships" are those like Amy who have obeyed our
law. Those who are favored are those like Bob who have broken our law. No matter what
arguments the City may present, favoring law -breaking over law -obeying citizens will
be hard to justify. Amy would be treated unequally because it will be more expensive,
time consuming, and difficult for her to have to try to obtain the Conditional Use Permit
to operate a short-term rental than Bob who would have received his Conditional Use
Permit automatically with no fee.
FURTHER DISFAVORED TREATMENT OF LAWFUL LANDLORDS
Amy and other citizens who have obeyed our law also could be denied even the
possibility of operating a short-term rental because of the numerical limits allowed for
short-term rental limits in the ordinance. This 2% of residential units limitation will
initially all be given to the law -breakers like Bob. Thus, a majority (many hundreds) of
the limited number of short-term rentals allowed by this ordinance will immediately be
given to the law -breakers. The remaining allotment may be insufficient for all law-
abiding citizens like Amy who might want to convert to short-term rentals to even apply.
When the total number of allowed short-term rentals in residential areas has been
reached, some citizens like Amy who waited for short-term rentals to be legal will not be
allowed to even apply.
In fact, the ordinance guarantees that the vast majority of citizens who will be
allowed to operate the Type-2 short-term rentals will be those citizens like Bob who have
3
broken our law. Citizens who have obeyed our law like Amy are forced to the back of the
line. Does this satisfy the "pledge of the protection of equal laws?" Does this "not grant
to any ...class of citizens, privileges or immunities which, upon the same terms shall not
be equally belong to all citizens?" Arkansas Constitution, Article 2 § 18 Privileges and
Immunities - Equality.
Although neighbors of the houses of Amy, Bob, and Connie never got the chance
to speak to the Planning Commission about Bob's illegal short-term rental, they certainly
can complain to the Planning Commission when Amy seeks her Conditional Use Permit.
These neighbors could reasonably claim that a second short-term rental on this street is
way too much because of parking, noise, or other issues. Thus, Amy might not receive
her Conditional Use Permit because she followed the law while Bob broke the law.
OCCUPANCY LIMITS PRESENT MORE EQUAL PROTECTION ISSUES
Another separate Equal Protection of the Laws issue arises when the ordinance
grants significantly greater occupational density for a short-term rental than an ordinary
rental. Bob would be allowed to house eight unrelated persons in his short-term rental
while Connie who wants to continue renting in the normal month or longer term remains
limited to three unrelated persons. This three unrelated person limitation was enacted
by the City Council about twenty years ago to resolve almost constant neighborhood
complaints of over -crowding, over -parking and neighborhood disturbances especially
near the University. Multifamily districts allow up to four unrelated persons per unit.
This proposed ordinance almost triples the number of unrelated persons that can
occupy a single family home in a residential neighborhood. Connie might like to house
at least six persons in her three bedroom house which could substantially increase the
rent she could charge. Unfairly, this proposed ordinance says that eight transient renters
in a three bedroom house is allowed, but even half that amount, four monthly renters, is
illegal. So, the City Council would be telling the Judge and Jury in an Equal Protection
trial that it is rational and reasonable that four monthly renters would cause such
neighborhood problems that they should be prohibited while twice as many transient,
short-term renters would be no problem and should be allowed. Is that really a rational
distinction to justify such drastic increase in house occupancy limits? Or is it just caving
in to the pressure of the currently illegal short-term rental operators, so they can make
even more money at the expense of our residential neighborhoods?
The City Council would be favoring the interests of non-resident, transient, short-
term renters over Fayetteville citizens wanting to rent a house in a quiet residential
neighborhood or nice apartment to actually live, work and vote here. It would be those
Fayetteville residents who are often also our citizens who would be discriminated against
in favor of the transient, short-term renters. It would be our residents who would have
to live next to short-term renters clogging up street parking spaces because of their double
or triple occupancy. Are there careful provisions in the proposed ordinance to require
4
off-street parking for these large groups of visiting transient renters with no knowledge
or commitment to our pleasant residential neighborhoods? Not for law -breaking
landlords like Bob who would receive his Conditional Use Permit from the City Council
automatically by the enactment of this ordinance and thereby avoid any Planning
Commission Hearing where additional conditions could be imposed. Amy and her law-
abiding fellow landlords could be forced to accept additional conditions like off-street
parking, fencing or vegetation buffers required by the Planning Commission to protect
neighbors. Does this meet the Arkansas Constitution's requirement of "The equality of all
persons before the law... T'
THE BOTTOM LINE
The proposed ordinance creates the need for way more conditional use permits
than should be required. Then staff uses the hard work and effort it would require of the
Planning Staff and Planning Commission to individually consider each of these newly
required Conditional Use Permits to justify giving them automatically to all current long-
time law -breakers like Bob.
So the City Council would be telling the Judge and Jury that our discrimination
against our law-abiding landlords like Amy by pushing them to the back of the approval
line and forcing them to apply and pay for a Conditional Use Permit is justified because
we do not want to make the effort to have the law- breakers like Bob have to apply to the
Planning Commission for Conditional Uses.
The City Council would also be telling the Judge and Jury that eight transient
renters would cause fewer neighborhood issues and should therefore be allowed in a
single family house in a residential neighborhood while four long-term Fayetteville
residents would be so disruptive that they should not be allowed to rent an identical
single-family house.
If the City Council enacts this proposed ordinance, I believe it will be only a matter
of time before the established residential occupation limits for a family or three unrelated
individuals will probably have to be abandoned because of litigation alleging a violation
of the Equal Protection of the Lazvs clause. Then all residential rentals will have to be
allowed to have two tenants per bedroom, plus two more persons (for a living room
couch?). Thus, most three bedroom houses would have to be allowed at least eight
unrelated tenants.
There is a far simpler and fairer way to regulate most short-term rentals which
would not violate our constitutions, nor favor law -breakers over law abiding citizens. It
is up to the City Council Members and the Mayor to chart the course they want
Fayetteville to travel.
5
4
DEPARTMENTAL CORRESPONDENCE
OFFICE OF THE
CITY ATTORNEY
TO: Mayor Jordan
City Council
CC:
Kit Williams
City Attorney
Blake Pennington
Assistant City Attorney
Jodi Batker
Susan Norton, Chief of Staff Paralegal
Mary McGetrick, Long Range Planner
Jonathan Curth, Development Manager
FROM: Kit Williams, City Attorney
DATE: April 6, 2021
RE: Rational basis test for Equal Protection of a Law cases
City ordinances like State statutes are normally presumed to be
constitutional and the burden to prove a violation of Due Process or Unequal
Protection of the Lazv clauses is upon the person challenging the ordinance. No
matter what regulatory ordinance the City Council may enact for Short-term
rentals or any other subject, I will strongly argue that the ordinance "is rationally
related to achieving a legitimate governmental objective." Streight v. Ragland, 280
Ark. 206,655 S.W. 2d 459,463 (1983).
"(T)he legislation in question must bear a reasonable relation to the
achievement of the public objective. This requirement means that the law
must accomplish the declared public end and not impose a burden upon
someone not reasonably connected with the cause of the evil." Ragland v.
Forsythe, 282 Ark. 43, 666 S.W. 2d 680, 681 (1984) (citation omitted).
I think the currently proposed ordinance clearly meets the first requirement of a
"reasonable relation to the achievement of the public objective" of regulating Short-term
rentals. The second requirement to not impose a burden upon someone not reasonably
connected with the cause of the evil" is more problematic. The burden and cost of
obtaining a conditional use permit is not imposed upon the landlords who have been
breaking the law, but upon those who have not violated our law. It is hard to argue that
landlords obeying the Fayetteville Code are "connected with the cause evil" that needs to
be prevented by this ordinance.
The Arkansas Supreme Court invalidated a Springdale bee keeping ordinance on
State Constitutional grounds because the ordinance required "two or more neighbors (to)
have filed a written protest." City of Springdale v. Chandler, 257 S.W. 2d 934, 935 (1953).
"Hence the ordinance is in conflict with Art. 2, §18 of the
Constitution which provides: 'The General Assembly shall not grant to any
citizen or class of citizens privileges or immunities which upon the same
terms shall not equally belong to all citizens.'
A city ordinance which allows an arbitrary discrimination is
unconstitutional and void." Id.
Because the proposed ordinance grants free, automatic conditional use permits
only to the class of citizens who have long violated Fayetteville law while denying that
same privilege on the same terms to law-abiding citizens, the Privileges and Immunities
- Equality provision in the Arkansas Constitution's Declaration of Rights Chapter also
endangers the validity of the proposed ordinance.
"The Equal Protection Clause of the Fourteenth Amendment
protects an individual from state action which selects him out for
discriminatory treatment by subjecting him to taxes not imposed on others
of the same class." Southern Bell v. Arkansas Public Service, 73 Ark. App. 222,
40 S.W. 3d 838, 843 (2001).
The proposed ordinance requires $100.00 fees to be paid by law-abiding landlords
to apply for the necessary conditional use permits while exempting law -breaking
landlords from having to pay these government required fees. The Court might find that
assessing required fees rather than taxes is a distinction without a difference for Equal
Protection analysis.
Although there is a strong presumption that an ordinance challenged on Equal
Protection of Lau) grounds has a rational basis that the challenger must disprove, the
proposed ordinance remains vulnerable both for its classification favoring law -breakers
over law -abiders and for its double to triple occupancy allowance for short-term rentals
in residential zones over traditional rentals.
In order to protect the City Council's power to amend this regulatory in the future
and regardless if we all eventually agree that we have come up with a "perfect"
ordinance, I agree with the Ordinance Review Committee's decision that a Sunset Clause
should be included in the enacting ordinance. Attached is the currently proposed
enacting ordinance with a new Section 2 Sunset Clause so that 14 months after the 6
month initial preparation phase, the City Council can review the workings of the
regulations to determine if any changes need to be made. No matter what else is done
regarding the proposed Short-term Rental regulations, the enacting ordinance should be
amended to the ordinance attached to this memo.
2
DEPARTMENTAL CORRESPONDENCE
OFFICE OF THE
Crry ATTORNEY
TO: Mayor Jordan
City Council
CC: Susan Norton, Chief of Staff
Mary McGetrick, Long Range Planner
Jonathan Curth, Development Manager
FROM: Kit Williams, City Attorney
DATE: April 6, 2021
Kit Williams
City Attoi ncY
Blake Pennington
Assistant City ,4ttornt^.
Jodi Hatkrr
Piir,ii(
RE: Two Options for Safer Constitutional Regulation of Short-term Rentals
HISTORY
Since the City Council clearly expressed its desire to authorize and regulate short-
term rentals, I do not want to point out constitutional problems in the current proposal
without at least providing constitutionally safer alternative regulations. I did provide one
such potential regulation to the Ordinance Review Committee prior to its last meeting,
but like this presentation to the whole City Council despite my best efforts it comes too
late for more than a cursory review during the April 6th meeting.
My experience with neighborhood issues for residential rentals reveals the major
complaints the City had received were usually linked to crowding or over -occupancy
problems and overflowing tenant cars in the front yard or taking up most of the on -street
public parking. These problems most often involved University students in houses within
a mile of campus. The City Council in the past addressed these neighborhood concerns
by defining a family as either a related family group or not more than three unrelated
persons in a single-family zoned district or four in a multi -family district. The problems
which confronted the early 2000's City Councils are probably not on your radar now
because the previous City Council's laws on occupancy in the definition of "Family' and
for excessive parking have been very successful. However, these neighborhood
problems would likely resurface if the solutions enacted by your predecessors are
repealed or ignored.
OPTION ONE: Provide legislatively issued Conditional Use Permits for all
One option that has been suggested would solve half of the Equal Protection of the
Law problem. It would be to legislatively grant free conditional use permits not only to
landlords who have been illegally operating short-term rentals, but to all landlords who
may wish to operate a high density short-term rental in residential neighborhoods. This,
unfortunately would not solve the Equal Protection of the Lain issue of allowing short-term
rentals to house double or triple the number of tenants as opposed to monthly rentals,
but at least the regulation would not favor law -breakers over landlords who have obeyed
the law as in the currently proposed ordinance.
My concern is that this would permit any high density short-term rental (which I
refer to as a Micro -Hotel) to operate in all single-family and multi -family zoned
neighborhoods throughout Fayetteville without allowing any input from the neighbors.
This foreclosure of any neighbor input whether or not to allow a Micro -Hotel in a single
family or multi -family zoned neighborhood would expand from the currently proposed
ordinance's illegally operating short-term rentals to any house or structure where a
landlord or owner might want to take advantage of the doubling, tripling or even higher
number of tenants allowed in the high density short-term rental (Micro -Hotel).
Allowing a residential short-term rental which is held to the same occupancy and
other standards as our monthly or yearly rentals without requiring a public hearing may
be okay. But allowing a business to lodge eight to twenty or more transient tenants in a
three-story structure in a residential neighborhood could cause significant neighborhood
problems. If the City Council authorizes this type of project and denies any neighborhood
comment about granting approval for such project, I am afraid there could be a lot of
unhappy neighbors.
OPTION TWO: Regulate Only Micro -Hotels (Type #2)
I have been guided by this history of neighborhoods adversely affected by over-
crowded houses to try to make short-term rentals functionable, but not disruptive, in
residential neighborhoods. My proposal would require many fewer conditional use
permits which would be required only if a landlord wanted the rental to act like a
business with many tenants rather than merely a residential short-term rental under all
the same rules as every other residential rental except for the length of the tenants' stay.
To make this easier to understand, I would avoid the #1 and #2 jargon. I would
concentrate almost all regulation on what I would refer to as a Micro -Hotel (although any
other easy to understand term would be acceptable.)
A key to protecting the very successful definition of "Family" (that has been so
successful that recent prosecutions for violating occupancy have been very rare) is to
acknowledge that a Micro -Hotel with 8 or more transient, short-term tenants in a
standard three bedroom single family house is not a residential rental, but a business.
2
Micro -Hotels should be allowed to operate just like any other business wanting to locate
in a purely residential zoning district. The district would need to be approved for Use
Unit 12a Limited Business. That would mean we can skip amending those 14 or so
residential zoning districts currently proposed for amendments by making a single
amendment to add Micro -Hotel to Use Unit 12a, Limited Business.
Short-term residential rentals should be treated just like normal over thirty day
residential rentals
The vast majority of single family houses that the owners would like to operate as
Short-term rentals should be treated exactly like all the regular over 30 day rentals except
their owners would need to obtain the HMR tax forms from the City's Accounting
Division just like every other entity that is subject to our HMR tax collecting
requirements. I see little reason to treat residential rentals for over and under 30 days
differently except for the collection of HMR taxes pursuant to state law. Owners
operating more than three residential rentals would still need a business license
regardless of the length of the rental period. The same rules should apply for the
Landlord Representative Registry. I believe that the City needs no new regulations for
short-term residential rentals. They would simply be required to obey all regulation for
all residential rentals including density limitations.
Higher Density Commercially Operating Short-term rentals
For an owner who wants hirer density for their commercially operated rental,
their Micro -Hotel could operate wherever Limited Business or General Business is
authorized: which is in virtually every residential district (all those denser than RSF-2)
with a conditional use. No conditional use permit at all would be required for a Micro -
Hotel to operate in:
Neighborhood Services -Limited;
Neighborhood Services - General;
Residential- Office;
Neighborhood Commercial;
Community Services;
Thoroughfare Commercial;
Urban Thoroughfare;
Central Commercial;
Downtown Core;
Main Street/ Center;
Downtown General;
"Micro -Hotels" would need conditional use permits only in purely residential
districts just like every other limited or general business owner that wants to operate
commercially in those residential districts. I do not recommend rewarding those
3
property owners who have disobeyed our law by legislatively granting them any
privileges such as conditional use permits while our law-abiding citizens would be
treated as second class citizens. The City Council could enact this ordinance, but delay
penalty enforcement for several months to allow our law-abiding citizens to take
advantage of this new opportunity and to allow those who ignored our law to get into
compliance through a conditional use or rezoning.
Occupancy Limits for the Commercial Micro -Hotels
and Residential Short-term rentals
In order to better protect our long-established and effective occupancy limit for
single family zoned districts, residential short-term rentals would have to follow all
existing regulations for normal residential rentals. On the other hand, a Micro -Hotel, as
an acknowledged and permitted limited or general business use, would not be a
residential dwelling unit at all, but a commercial enterprise subject to commercial
standards rather than residential standards. I agree with Planning's suggested
commercial occupancy limit. Indeed, most of Planning's proposed requirements for this
commercial enterprise should be adopted for Micro -Hotels.
All residentially zoned districts from RSF-4 to RMF-40 allow Limited Business (not
to exceed 3,000 square feet) as a Conditional Use. I suggest an amendment to the Limited
Business Use Unit to include a Micro -Hotel as one of the Limited Businesses which can
be allowed in these residentially zoned districts with a conditional use.
Both Neighborhood Services Limited and Residential Office permit Limited
Business as of right. These districts would then be allowed a limited size Micro -Hotel as
of right. All more intense commercial districts from NS-G to Urban Thoroughfare and
Downtown General would permit Micro -Hotels as large as 8,000 square feet as of right
with simple amendments to Limited Business, General Business, Neighborhood
Shopping Goods and Hotel, Motel, and Amusement Facilities to add Micro -Hotel.
Practical Effects of this Second Option
Zoning districts or land devoted to RSF-4, Residential Single Family, Four Units
per acre and all denser residential units could be used for Micro -Hotels with an approved
conditional use to allow Limited Business. The current 3,000 square feet limitation
required by Limited Business helps ensure that the included commercial activities (now
to include Micro -Hotel) will be more compatible with a surrounding residential
neighborhood.
Every owner of a residentially zoned lot could install a normal, noncommercial
short-term rental as of right.
4
Every property owner in a commercial or mixed -use zoning district from
Neighborhood Services General and Community Services to Urban Thoroughfare and
Downtown General could as of right construct or remodel a Micro -Hotel up to the 8,000
square feet limit.
Conditional Uses would be required only where they are most needed: in the
primarily residential districts for owners seeking a Micro -Hotel rather than a residential
Short-term rental. All residential short-term rentals (but not Micro -Hotels) would remain
subject to the current residency limits in the code. If an owner wanted to take advantage
of the commercial occupancy limits allowed for Micro -Hotels, that owner would need to
obtain a conditional use permit for Limited Business or rezone to one of the eleven mixed -
use zoning district that allows General Business, Neighborhood Shopping Goods, or
Hotels and thus, Micro -Hotels as of right.
BENEFITS OF THIS OPTION
(1) Short-term residential rentals would not need a conditional use permit or
rezoning, but would operate under the same rules as normal rentals.
(2) The long-standing definition of "Family" protecting our neighborhoods would
remain valid for all residential rentals.
(3) Micro -Hotels would be authorized by right in eleven current zoning districts with
no conditional use required.
(4) Micro -Hotels could be authorized by conditional use permit in almost all
residential zoned districts or rezoned to a mixed -use district to allow a use by
right.
(5) Neighbors could comment on any necessary conditional use or rezoning.
POTENTIAL DOWNSIDES
(1) Residential short-term rentals would be allowed in all residential districts with a
greater density than RSF-2 without neighborhood approval or comment.
(2) No limits on number of short-term rentals that could be operated in Fayetteville.
(Affordable housing concern.)
(3) No liability insurance requirement for residential short-term rentals (just like
monthly rentals) (Still required for Micro -Hotels).
(4) No special health/safety inspection for residential short-term rentals. (Still
required for Micro -Hotels.)
(5) No 3-hour response requirement for landlord of residential short-term rental. (Still
required for Micro -Hotel.)
Any of these potential problems could be remedied as part of a Sunset review or
extension.
5
EXHIBIT A
CHAPTER 118: - BUSINESS REGISTRY AND LICENSES
118.01 -Applicability
(A) General Businesses.
(1) All businesses, institutions, corporations, LLCs, LLPs, partnerships, non-profit associations or
corporations, sole proprietorships or other non -governmental entities with a physical address or
which operates either a legally permitted home occupation or a short-term rental within the
Fayetteville city limits shall be required to file for the City of Fayetteville Business Registry and
License. A covered business or entity with multiple physical addresses in Fayetteville must
obtain a separate business license for each such business address.
(2) In addition, any person or non -governmental entity who has or should have a sales tax permit
and operates out of a physical address within Fayetteville shall be required to file for the City
of Fayetteville Business Registry and License.
(3) In addition, any person or non -governmental entity who is engaged in any trade or occupation
which requires federal or state licenses and who operates out of a physical address within
Fayetteville shall be required to file for the City of Fayetteville Business Registry and License.
(B) Religious Entities. Churches and other religious institutions are exempt from this chapter unless they
are performing functions like daycare that must be licensed by the state or that generate revenue
upon which state sales or use taxes must be paid. The city business license shall not be required
for the religious entity but only for those functions that require a state license or upon which state
sales or use taxes must be paid.
(C) Minors Exempt. No individual under eighteen (18) years of age shall be required to register or obtain
a business license. Minors are prohibited from leasing, advertising, managing or any other activity
involved in STRs unless they are an emancipated minor.
(D) Individual Landlords Renting Less Than Three (3) Dwelling Units Exempt. An individual landlord,
not operating as a corporation, LLC, LLP, or other business entity, who rents out less than three (3)
dwelling units, and no commercial, industrial, or institutional unit, site or building shall be exempt
from this chapter. However, a landlord that operates a short-term residential rental shall not be
exempt and must apply for and obtain a business license for each individual short-term rental.
(E) Short-term rentals. A residential dwelling unit, portion of a dwelling unit, or bedroom within a
residential dwelling unit, leased and/or rented to a guest(s), for a period of less than thirty
consecutive (30) days.
(1) Short-term rental, Type 1. A short-term rental where the principal use of the property remains
as a full-time residence. The occupants or owner rent their primary residence as a short-term
rental. A copy of the Homestead Tax Credit or long-term lease agreement for the subject
property is required to be classified as a Type 1 rental. The occupant or owner must occupy the
residence for 9 months of the year. Accessory dwelling units (ADUs) as defined in Unified
Development Code Chapter 151 shall be considered a Type 1 short-term rental.
(2) Short-term rental, Type 2. A short-term rental that is not occupied by a permanent resident. The
owner lists this property full-time as a short-term rental and has no intention of having permanent
residents living in the property. A conditional use permit is required for a Type 2 short-term rental
prior to the City issuing a business license, except as defined in §118.01(E)(4).
(3) License Required: No dwelling unit in the City shall be used as a short-term rental unless:
(a) The owner of the dwelling unit or operator of the short-term rental possess a valid and
current business license for the dwelling unit, and fully complies with all legal requirements
and duties imposed herein with respect to each and every short-term rental; and
(b) The owner has designated an agent. where said agent fully complies with all legal
requirements and duties imposed herein with respect to every short-term rental. The owner
may serve as their own agent.
(c) The owner of the dwelling unit or operator of the short-term rental provides proof of a valid
and current homeowners insurance rider policy which fully covers each unit when operated
as short term rental unit
(4) 6 Month Start-up Period. After the enactment of the short-term rental ordinance, short term rental
operators shall have 6 months to obtain a business license and be considered in compliance.
After the 6-month start-up period, all short term rental units must have a business license to be
considered in compliance.
(a) Persons seeking to operate a short-term rental within six months of the enactment of this
code section shall be granted a conditional use permit for such short-term rental without
having to pay a fee or have a hearing before the Planning Commission. The conditions
for such permit shall be full compliance with all terms and requirements of Chapter 118
Business Registry and Licenses, this section, and all other requirements of the
Fayetteville Code including timely and full payment of all Hotel, Motel, and Restaurant
taxes to the City. Revocation of the business license shall also revoke the conditional use
permit granted by this subsection.
(b) Persons seeking to operate a Type 2 Short-term rental who have failed to obtain such
conditional use permit and business license prior to the end of the six month start-up
period shall be required to follow normal procedures and apply to the Planning
Commission to request a conditional use permit which will be issued or denied pursuant
to the Planning Commission's decision pursuant to Chapter 163.18 (2) (a).
(c) Type 1 and 2 short-term rentals seeking a business license or permit under the 6-month
start-up period which are currently operating in 2, 3 and 4 unit buildings in which more
than 1 unit is being used as a short-term rental may obtain a business license for all
currently operating short-term rentals.
(5) A separate business license shall be required for each dwelling unit used as a short-term rental.
(6) Any change in ownership requires a new or amended business license.
(7) If any required contact information changes for the associated business license, the person to
whom the license was issued shall immediately notify the Development Services Department in
writing.
(8) License Application. The application for a business license shall include at minimum, the
following information from applicants:
(a) The property owner's information including legal name, mailing address, immediate contact
phone number, and immediate contact E-mail address.
(b) Information for the dwelling unit subject to the application, inclusive of the physical street
address assigned by the City.
(c) The type and total number of dwelling units located on the lot of record containing the
dwelling unit subject to the application.
(d) If the owner is not their own agent, the owner designated agent's information including
legal name, mailing address, immediate contact phone number and immediate contact E-
mail address.
(e) Documentation of approval of a life safety and egress inspection by the City Building Safety
Division for the dwelling unit subject to the application.
(f) Proof of application for remittance of Hotel, Motel and Restaurant tax to the City of
Fayetteville. and verification that all sales, use, and Hotel, Motel and Restaurant taxes are
current.
(g) Any additional data as deemed necessary or desirable for permit approval by the
Development Services Director.
(10) License Renewals. Business licenses for short-term rentals shall be renewed in accordance
with Chapter 118 of the Business Regulations (Business Registry and Licenses).
(11) Legal Duties of License Holders. An owner possessing a short-term rental license shall comply
at all times with the following requirements:
(a) Occupancy. Short-term rentals shall be subject to, and may not exceed, the occupancy
limits approved with the business license
(b) Advertisements. A short-term rental shall not be advertised if it violates occupancy, density,
safety, and any of the other provisions of the Fayetteville Code. No short-term rental unit
shall be advertised prior to having obtained a business license and the business license
number shall be included in the advertisement listing.
(c) Information and Posting. Business licensees shall provide to guests and post
conspicuously in the common area of the short-term rental unit the City phone number to
report a safety complaint.
(12) Owner or Agent Accessibility. The property owner shall ensure that they or a designated agent
are available at all times during guest occupancy, including nights and weekends, in order to
facilitate compliance with this section. For the purposes of these regulations, `availability' means
that the owner or agent is accessible by telephone, and, able to be physically present at the
short-term rental within three (3) hours of being contacted.
(13) Guest records. The owner shall maintain summary guest registration records, which shall
contain the actual dates of occupancy, total number of guests per party per stay, and the rate(s)
charged, but shall not contain any personally identifiable information about guests. Such records
shall be maintained for three years and shall be provided to the City upon request.
(14) Health and safety. The owner shall ensure that each dwelling unit governed by this section
complies with the applicable provisions of the Unified Development Code Chapter 173: Building
Regulations.
(15) Criminal activity. The owner shall timely report any known or reasonably suspected criminal
activity by a guest to the Fayetteville Police Department within twelve (12) hours maximum.
(16) Taxes and fees. Except for those instances in which a hosting platform bears the responsibility
for collecting and remitting taxes and fees applicable to short-term rentals, the property owner
shall timely remit in full Fayetteville Hotel, Motel and Restaurant tax and other applicable local,
state, and federal taxes and City fees owed in connection with any short-term rental. The failure
of a hosting platform to collect and remit taxes and fees shall not relieve an owner of the
obligation to pay taxes and fees owed pursuant to this section.
(17) Authorization to Occupy, Use, and Operate. Authorization to operate a short-term rental may be
granted by the Development Services Director through the issuance of a City of Fayetteville
Business Registry and License (business license).
(18) Density For Type 2 Short-term Rentals. A city-wide density cap of two percent (2%) of all
dwelling units in the Fayetteville city limits may be utilized as Type 2 rentals. Total dwelling units
are determined from current United States Census Bureau and/or American Community Survey
numbers, whichever number is higher. A conditional use permit may not permit:
(a) More Type 2 short-term rentals than what is allowed by the city-wide density cap.
(b) More than ten (10) percent or a single unit whichever is greater: of total dwelling units as
Type 2 rentals within a multi -family dwelling complex.
(c) Individual 2, 3 and 4-family buildings that are owned by the same person or entity and are
not a part of a multi -family complex shall have no more than one (1) Type 2 short term
rental unit per building complex.
(d) Density of Type 2 short-term rentals shall not be limited in commercial and mixed -use
zoning districts where hotel/motels are permitted by right.
(19) Suspension and Revocation. If the Development Services Director has reason to believe that
any of the grounds specified in §118.03(A) of the Fayetteville Code exist, or that any rental unit
was rented for less than one full night, or to more than one part of guests for the same period of
time, or otherwise failed to comply with all terms and conditions of this section, the Development
Services Director may suspend or revoke the short-term rental's business license pursuant to
the procedures detailed in §118.03 and in §118.04 of the Fayetteville Code.
(20) Short-term rentals must comply with all applicable codes under Unified Development Code
Chapter 163.18 and successfully obtain a business license prior to operation.
EXHIBIT B
CHAPTER 151: DEFINITIONS
Agent. Owner -Designated. A person designated by the owner of a property, where designee has a physical
address within the City of Fayetteville, is accessible 24-hours a day, and otherwise in compliance with the
UDC requirements for short-term rentals. The owner may serve as their own agent.
Bedroom. As defined by the International Building Code and International Fire Code as adopted by the
State of Arkansas and the City of Fayetteville and listed on the City of Fayetteville STR website.
Booking transaction. Any contractual agreement between a guest and an owner relative to a short-term
rental.
Dwelling unit (zoning). One (1) room, or rooms connected together, constituting a separate, independent
housekeeping establishment for owner occupancy, or rental or lease on a monthly, or longer basis, and
physically separated from any other rooms or dwelling units which may be in the same structure, and
containing independent cooking and sleeping facilities.
Guest, Short-term rental. Any person who occupies a short-term rental, for a period of less than 30
consecutive days, pursuant to a short-term rental lease term and/or other like agreement, for the purposes
of temporary lodging.
Host, Short-term rental. The owner(s) of a short-term rental who has authority to offer the dwelling unit,
portion thereof, or a room within the dwelling unit as a legal short-term rental.
Owner. A person who owns at least a 50 percent interest in a dwelling unit used for short-term rentals.
Permanent residential dwelling. A structure that has been legally permitted or is a legal, non -conforming
structure allowed for permanent occupancy as a residential dwelling.
Hosting Platform. A person or entity that participates in the short-term rental business by providing and
collecting or receiving a fee(s) for facilitating booking transactions through which a short-term rental host
may offer a short-term rental to a short-term rental guest. Hosting platforms typically, though not always,
facilitate booking transactions through an on line platform that allows a short-term rental host to advertise
the short-term rental through a website provided by the hosting platform and the hosting platform conducts
a transaction by which potential short-term rental guest reserve a guestroom(s) and arrange payment.
whether the short-term rental guest pays rent directly to the short-term rental host or to the hosting platform.
Short-term rental. A residential dwelling unit, portion of a dwelling unit, or bedroom within a residential
dwelling unit, leased and/or rented to a guest(s), for a period of less than thirty consecutive (30) days.
Short-term rental, Type 1. A short-term rental where the principal use of the property remains as a full-time
residence. The occupants or owner rent their primary residence as a short-term rental. A copy of the
Homestead Tax Credit or long-term lease agreement for the subject property is required to be classified as
a Type 1 rental. The occupant or owner must occupy the residence for 9 months of the year. Accessory
dwelling units (ADUs) as defined in Unified Development Code Chapter 151 shall be considered a Type 1
short-term rental.
Short-term rental, Type 2. A short-term rental that is not occupied by a permanent resident. The owner lists
this property full-time as a short-term rental and has no intention of having permanent residents living in the
property. A conditional use permit is required for a Type 2 short-term rental prior to the City issuing a
business license.
EXHIBIT C
CHAPTER 161: - ZONING REGULATIONS
161.02 - Zoning Compliance And Business License
(A) Required. It shall be unlawful to use or occupy or permit the use or occupancy of any building or
premises, or both, or part thereof hereafter created, erected, changed, converted, or wholly or partly
altered, or enlarged in its use or structure until a business license has been issued by the Zoning and
Development Administrator stating that the proposed use of the building or land conforms to the
requirements of this chapter.
(B) Conforming Uses. Uses permitted within the underlying zoning district shall be eligible for a
business license, subject to §118 of the Fayetteville Code.
(C) Nonconforming Uses.
(1) Except for short-term rental units subject to chapter 163 of the UDC, uses within the following
use unit categories established prior to September 7, 2010 and operating in a zoning district
that does not currently allow the use, are for the purposes of zoning compliance determined to
be an existing nonconforming use, may continue to operate and are eligible to obtain a city
business license. The exemption shall not be construed as relieving the owner or operator of
such business from the regulations of the business license ordinance, including grounds for
suspension and revocation, or from any other applicable federal, state, or city regulations.
Use Units
3 Public protection facilities
4 Cultural and recreational facilities
S Government facilities
6 Agricultural
7 Animal husbandry
12a Limited business
13 Eating places
15 Neighborhood shopping goods
24 Home occupation
25 Offices, studios, and related services
(2) Except for short-term rental units subject to chapter 163 of the UDC, uses within the following
use unit categories established prior to July 15, 2003 and operating in a zoning district that does
not currently allow the use, are for the purposes of zoning compliance determined to be an
existing nonconforming use, may continue to operate and are eligible to obtain a city business
license. The exemption shall not be construed as relieving the owner or operator of such
business from the regulations of the business license ordinance, including grounds for
suspension and revocation, or from any other applicable federal, state, or city regulations.
Use Units
2 City-wide uses by conditional use permit
14 Hotel, motel and amusement facilities
16 Shopping goods
17 Transportation trades and services
18 Gasoline service stations & drive in/drive
through restaurants
19 Commercial recreation, small sites
20 Commercial recreation, large sites
21 Warehousing and wholesale
22 Manufacturing
23 Heavy industrial
Wholesale bulk petroleum storage
27 facilities with
underground tanks
28 Center for collecting recyclable materials
29 Dance halls
30 Extractive uses
31 Facilities emitting odors/handling
explosives
32 Sexually oriented businesses
33 Adult live entertainment club or bar
34 Liquor stores
3S Outdoor music establishments
36 Wireless communications facilities
38 Mini -storage units
39 Auto salvage and junk yards
40 Sidewalk cafes
42 Clean technologies
43 Animal boarding and training
161.03 - District R-A, Residential -Agricultural
(B) Uses .
(1)
Permitted Uses.
Unit 1
City-wide uses by right
Unit 3
Public protection and utility facilities
Unit 6
Agriculture
Unit 7
Animal husbandry
Unit 8
Single-family dwellings
Unit 9 Two-family dwellings
Unit 37 Manufactured homes
Unit 41 Accessory dwellings
Unit 43 Animal boarding and training
Unit 46 Short-term rentals
161.04 - District RSF-.5, Residential Single -Family - One Half (%) Unit Per Acre
(B) Uses.
(1) Permitted Uses.
Unit 1 City-wide uses by right
Unit 8 Single-family dwellings
Unit 41 Accessory dwellings
Unit 46 Short-term rentals
161.05 - District RSF-1, Residential Single -Family - One (1) Unit Per Acre
(B) Uses.
(C) Permitted Uses.
Unit 1 City-wide uses by right
Unit 8 Single-family dwellings
Unit 41 Accessory dwellings
Unit 46 Short-term rentals
161.06 - District RSF-2, Residential Single -Family - Two (2) Units Per Acre
(B) Uses.
(C) Permitted Uses.
Unit 1 City-wide uses by right
Unit 8 Single-family dwellings
Unit 41 Accessory dwellings
Unit 46 Short-term rentals
161.07 - District RSF-4, Residential Single -Family - Four (4) Units Per Acre
(B) Uses.
(1) Permitted Uses.
Unit 1 City-wide uses by right
Unit 8 Single-family dwellings
Unit 41 Accessory dwellings
Unit 46 Short-term rentals
161.08 - District RSF-7, Residential Single -Family - Seven (7) Units Per Acre
(B) Uses.
(1) Permitted Uses.
Unit 1 City-wide uses by right
Unit 8 Single-family dwellings
Unit 41 Accessory dwellings
Unit 46 Short-term rentals
161.09 - District RSF-8, Residential Single -Family - Eight (8) Units Per Acre
(B) Uses.
(1) Permitted Uses.
Unit 1 City-wide uses by right
Unit 8 Single-family dwellings
Unit 41 Accessory dwellings
Unit 46 Short-term rentals
161.10 - District RSF-18, Residential Single -Family - Eighteen (18) Units Per Acre
(B) Uses.
(1) Permitted Uses.
Unit 1 City-wide uses by right
Unit 8 Single-family dwellings
Unit 41 Accessory dwellings
Unit 46 Short-term rentals
161.11 - District RI-12, Residential Intermediate, Twelve (12) Units Per Acre
(B) Uses.
(1) Permitted Uses.
Unit 1 City-wide uses by right
Unit 8 Single-family dwellings
Unit 9 Two (2) family dwellings
Unit 10 Three (3) and four (4) family dwellings
Unit 41 Accessory dwellings
Unit 44 Cluster Housing Development
Unit 46 Short-term rentals
161.12 - District RI-U, Residential Intermediate - Urban
(B) Uses.
(1) Permitted Uses.
Unit 1 City-wide uses by right
Unit 8 Single-family dwellings
Unit 9 Two (2) family dwellings
Unit 10 Three (3) and four (4) family dwellings
Unit 41 Accessory dwellings
Unit 44 Cluster housing development
Unit 46 Short-term rentals
161.13 - District RMF-6, Residential Multi -Family - Six (6) Units Per Acre
(B) Uses.
(1) Permitted Uses.
Unit 1 City-wide uses by right
Unit 8 Single-family dwellings
Unit 9 Two-family dwellings
Unit 10 Three (3) and four (4) family dwellings
Unit 26 Multi -family dwellings
Unit 41 Accessory dwellings
Unit 44 Cluster Housing Development
Unit 46 Short-term rental
161.14 - District RMF-12, Residential Multi -Family - Twelve (12) Units Per Acre
(B) Uses.
(1) Permitted Uses.
Unit 1 City-wide uses by right
Unit 8 Single-family dwellings
Unit 9 Two-family dwellings
Unit 10 Three (3) and four (4) family dwellings
Unit 26 Multi -family dwellings
Unit 41 Accessory dwellings
Unit 44 Cluster Housing Development
Unit 46 Short-term rental
161.15 - District RMF-18, Residential Multi -Family - Eighteen (18) Units Per Acre
(B) Uses.
(1) Permitted Uses.
Unit 1
City-wide uses by right
Unit 8
Single-family dwellings
Unit 9
Two-family dwellings
Unit 10
Three (3) and four (4) family dwellings
Unit 26
Multi -family dwellings
Unit 41
Accessory dwellings
Unit 44
Cluster Housing Development
Unit 46
Short-term rental
161.16 - District RMF-24, Residential Multi -Family - Twenty -Four (24) Units Per Acre
(B) Uses.
(1) Permitted Uses.
Unit 1 City-wide uses by right
Unit 8 Single-family dwellings
Unit 9 Two-family dwellings
Unit 10 Three (3) and four (4) family dwellings
Unit 26 Multi -family dwellings
Unit 41 Accessory dwellings
Unit 44 Cluster Housing Development
Unit 46 Short-term rental
161.17 - District RMF-40, Residential Multi -Family - Forty (40) Units Per Acre
(B) Uses.
(1) Permitted Uses.
Unit 1 City-wide uses by right
Unit 8 Single-family dwellings
Unit 9 Two-family dwellings
Unit 10 Three (3) and four (4) family dwellings
Unit 26 Multi -family dwellings
Unit 41 Accessory dwellings
Unit 44 Cluster Housing Development
Unit 46 Short-term rental
161.18 - NS-L, Neighborhood Services - Limited
(B) Uses.
(1) Permitted Uses.
Unit 1 City-wide uses by right
Unit 8 Single-family dwellings
Unit 9 Two (2) family dwellings
Unit 10 Three (3) and four (4) family
dwellings
Unit
Limited Business
12a
Unit 24 Home occupations
Unit 40 Sidewalk cafes
Unit 41
Accessory dwelling units
Unit 44
Cluster housing development
Unit 46
Short-term rental
161.19 - NS-G, Neighborhood Services - General
(B) Uses.
(1) Permitted Uses.
Unit 1 City-wide uses by right
Unit 8 Single-family dwellings
Unit 9 Two-family dwellings
Unit 10 Three (3) and four (4) family
dwellings
Unit 12b General business
Unit 24 Home occupations
Unit 40 Sidewalk cafes
Unit 41
Accessory dwelling units
Unit 44
Cluster housing development
Unit 46
Short-term rental
161.20 - District R-O, Residential Office
(B) Uses.
(1) Permitted uses.
Unit 1 City-wide uses by right
Unit 5 Government facilities
Unit 8 Single-family dwellings
Unit 9 Two-family dwellings
Unit 12a Limited business
Unit 25 Offices, studios, and related services
Unit 41 Accessory dwellings
Unit 44 Cluster Housing Development
Unit 46 Short-term rental
161.22 - Community Services
(B) Uses.
(1) Permitted Uses.
Unit 1 City-wide uses by right
Unit 4 Cultural and recreational facilities
Unit 5 Government facilities
Unit 8 Single-family dwellings
Unit 9 Two-family dwellings
Unit 10 Three (3) and four (4) family dwellings
Unit 13 Eating places
Unit 15 Neighborhood Shopping goods
Gasoline service stations and drive -
Unit 18
in/drive through restaurants
Unit 24 Home occupations
Unit 25 Offices, studios and related services
Unit 26 Multi -family dwellings
Unit 40 Sidewalk Cafes
Unit 41 Accessory dwellings
Unit 44 Cluster Housing Development
Unit 45 Small scale production
Unit 46 Short-term rental
161.24 - Urban Thoroughfare
(B) Uses.
(1) Permitted Uses.
Unit 1 City-wide uses by right
Unit 4 Cultural and recreational facilities
Unit 5 Government facilities
Unit 8 Single-family dwellings
Unit 9 Two (2) family dwellings
Unit 10 Three (3) and four (4) family
dwellings
Unit 13 Eating places
Unit 14 Hotel, motel and amusement
services
Unit 16 Shopping goods
Unit 17 Transportation trades and services
Gasoline service stations and drive -
Unit 18
in/drive through restaurants
Unit 19 Commercial recreation, small sites
Unit 24 Home occupations
Unit 25 Offices, studios, and related
services
Unit 26 Multi -family dwellings
Unit 34 Liquor store
Unit 40 Sidewalk cafes
Unit 41 Accessory Dwellings
Unit 44 Cluster Housing Development
Unit 45 Small scale production
Unit 46 Short-term rental
161.25 - District C-3, Central Commercial
(B) Uses.
(1) Permitted Uses.
Unit 1 City-wide uses by right
Unit 4 Cultural and recreational facilities
Unit 5 Government facilities
Unit 13 Eating places
Unit 14 Hotel, motel, and amusement
facilities
Unit 16 Shopping goods
Unit 18 Gasoline service stations & drive-in
restaurants
Unit 19 Commercial recreation, small sites
Unit 25 Offices, studios, and related services
Unit 26 Multi -family dwellings
Unit 34 Liquor stores
Unit 40 Sidewalk Cafes
Unit 44 Cluster Housing Development
Unit 45 Small scale production
Unit 46 Short-term rental
161.26 - Downtown Core
(B) Uses.
(1) Permitted Uses.
Unit 1 City-wide uses by right
Unit 4 Cultural and recreational facilities
Unit 5
Government facilities
Unit 8
Single-family dwellings
Unit 9
Two-family dwellings
Three (3) and four (4) family
Unit 10
dwellings
Unit 13
Eating places
Hotel, motel, and amusement
Unit 14
facilities
Unit 16
Shopping goods
Unit 17
Transportation trades and services
Unit 19
Commercial recreation, small sites
Unit 24
Home occupations
Offices, studios, and related
Unit 25
services
Unit 26
Multi -family dwellings
Unit 34
Liquor stores
Unit 40
Sidewalk Cafes
Unit 41
Accessory dwellings
Unit 44
Cluster Housing Development
Unit 45
Small scale production
Unit 46
Short-term rental
161.27 - Main Street/Center
(B) Uses.
(1)
Permitted uses.
Unit 1
City-wide uses by right
Unit 4
Cultural and recreational facilities
Unit 5
Government facilities
Unit 8
Single-family dwellings
Unit 9
Two-family dwellings
Three (3) and four (4) family
Unit 10
dwellings
Unit 13
Eating places
Hotel, motel, and amusement
Unit 14
facilities
Unit 16
Shopping goods
Unit 17
Transportation trades and services
Unit 19
Commercial recreation, small sites
Unit 24
Home occupations
Offices, studios, and related
Unit 25
services
Unit 26
Multi -family dwellings
Unit 34
Liquor stores
Unit 40
Sidewalk Cafes
Unit 41
Accessory dwellings
Unit 44 Cluster Housing Development
Unit 45 Small scale production
Unit 46 Short-term rental
161.28 - Downtown General
(B) Uses.
(1) Permitted Uses.
Unit 1 City-wide uses by right
Unit 4 Cultural and recreational facilities
Unit 5 Government facilities
Unit 8
Single-family dwellings
Unit 9
Two-family dwellings
Unit 10
Three (3) and four (4) family dwellings
Unit 13
Eating places
Unit 15
Neighborhood shopping goods
Unit 24
Home occupations
Unit 25
Offices, studios, and related services
Unit 26
Multi -family dwellings
Unit 40
Sidewalk Cafes
Unit 41 Accessory dwellings
Unit 44 Cluster Housing Development
Unit 45 Small scale production
Unit 46 Short-term rental
161.29 - Neighborhood Conservation
(B) Uses.
(1) Permitted Uses.
Unit 1 City-wide uses by right
Unit 8 Single-family dwellings
Unit 41 Accessory dwellings
Unit 46 Short-term rental
IMMI11:31111111E
CHAPTER 162: - USE UNITS
162.01 - Establishment/Listing
The various use units referred to in the zoning district provisions are herein listed in numerical order.
Within the use units, the permitted uses are ordinarily listed in alphabetical order. In these use units
where there is a preliminary descriptive statement (which may mention specific uses) in addition to the
detailed list of uses, the detailed list shall govern.
Unit 1 City-wide uses by right
Unit 2 City-wide uses by conditional use permit
Unit 3 Public protection and utility facilities
Unit 4 Cultural and recreational facilities
Unit 5 Government facilities
Unit 6 Agriculture
Unit 7 Animal husbandry
Unit 8 Single-family dwellings
Unit 9 Two-family dwellings
Unit 10 Three (3) and four (4) family dwellings
Unit 11 Manufactured home park
Unit 12a Limited business
Unit 12b General business
Unit 13 Eating places
Unit 14 Hotel, motel and amusement facilities
Unit 15 Neighborhood shopping goods
Unit 16 Shopping goods
Unit 17
Transportation Trades and services
Gasoline service stations and drive-in/drive
Unit 18
through restaurants
Unit 19
Commercial recreation, small sites
Unit 20
Commercial recreation, large sites
Unit 21
Warehousing and wholesale
Unit 22
Manufacturing
Unit 23
Heavy industrial
Unit 24
Home occupation
Unit 25
Offices, studios, and related services
Unit 26
Multi -family dwellings
Wholesale bulk petroleum storage facilities
Unit 27
with underground storage tanks
Unit 28
Center for collecting recyclable materials
Unit 29
Dance halls
Unit 30
Extractive uses
Facilities emitting odors & facilities
Unit 31
handling explosives
Unit 32
Sexually oriented business
Unit 33
Adult live entertainment club or bar
Unit 34
Liquor stores
Unit 35
Outdoor music establishments
Unit 36 Wireless communications facilities
Unit 37 Manufactured homes
Unit 38 Mini -storage units
Unit 39 Auto salvage and junk yards
Unit 40 Sidewalk Cafes
Unit 41 Accessory dwellings
Unit 42 Clean technologies
Unit 43 Animal boarding and training
Unit 44 Cluster Housing Development
Unit 45 Small scale production
Unit 46 Short-term rental
(0) Unit 14. Hotel, Motel, and Amusement Facilities.
(1) Description. Unit 14 consists of hotels, motels, and certain types of amusement facilities.
(2) Included Uses.
Hotel
Membership lodge
Motel
Motion picture theater
Night club, not providing dancing or outdoor music
Tavern, not providing dancing or outdoor music
Use Unit46, Short-term rental is also permitted within Use
Unit 14
(UU) Unit 46. Short-term rental.
(1) Description. Unit 46 is provided to allow a permanent residential dwelling unit, portion of a
residential dwelling unit, or bedroom within a residential dwelling unit, to be leased and/or
rented to a guest(s) for a period of less than thirty (30) consecutive days.
(2) Included Uses.
Short-term rentals
EXHIBIT E
CHAPTER 163: - USE CONDITIONS
163.01 - Listing
The use conditions set forth in this chapter are the following:
Bed and breakfast facilities
Carnival, circus, amusement park or similar temporary
open-air enterprise
Child care, nursery school
Dance halls
Facilities emitting odors and facilities handling explosives
Home occupations
Manufactured homes
Outdoor music establishments
Sexually oriented businesses
Short-term rentals
Tandem lot development
Wireless communications facilities
163.18 — Short-term rentals
(A) General Standards.
(1) Residential Zoning Districts. Short-term rentals may be permitted in all zoning districts where
residential uses are allowed by right.
(2) Commercial and Mixed Use Zoning Districts. Short-term rentals may be permitted in all zoning
districts where hotel/motel uses are permitted by right and shall not count towards the Type 2
short-term rental density cap in these districts except in multi -family buildings as specified in
Chapter 118 of the Fayetteville City Code.
(3) Occupancy. Maximum of two (2) people per bedroom, plus two (2), for the entire unit when
operated as a short-term rental.
(4) Parking. Parking is limited to the maximum number of vehicles as allowed by the underlying
zoning district for the residential building on the property.
(5) Special events are not permitted in a short-term rental. Example of special events include, but
are not limited to, weddings, receptions, anniversaries, private parties, fundraisers and
business seminars.
(6) Short-term rental units are allowed in any structure established as a permanent residential
dwelling including an accessory dwelling unit. No recreational vehicle, trailer, other vehicle or
structure not classified as a permanent residential dwelling may be used as a short-term
rental.
(7) 6 Month Start-up Period. After the enactment of the short-term rental ordinance, short-term
rental operators shall have 6 months to obtain a business license and be considered in
compliance. After the 6-month start-up period, all short-term rental units must have a business
license to be considered in compliance.
(a) Persons seeking to operate a short-term rental within six months of the enactment of
this code section shall be granted a conditional use permit for such short-term rental
without having to pay a fee or have a hearing before the Planning Commission. The
conditions for such permit shall be full compliance with all terms and requirements of
Chapter 118 Business Registry and Licenses, this section, and all other requirements of
the Fayetteville Code including timely and full payment of all Hotel, Motel, and
Restaurant taxes to the City. Revocation of the business license shall also revoke the
conditional use permit granted by this subsection.
(b) Persons seeking to operate a Type 2 Short-term rental who have failed to obtain such
conditional use permit and business license prior to the end of the six month start-up
period shall be required to follow normal procedures and apply to the Planning
Commission to request a conditional use permit which will be issued or denied pursuant
to the Planning Commission's decision pursuant to Chapter 163.18 (2) (a).
(c) Type 1 and 2 short-term rentals seeking a business license or permit under the 6-month
start-up period which are currently operating in 2, 3 and 4 unit buildings in which more
than 1 unit is being used as a short-term rental may obtain a business license for all
currently operating short-term rentals.
(8) Exceptions. Exceptions to the short-term rental standards, except proposals that would
exceed the city-wide density maximum, may be granted by the Planning Commission as a
conditional use permit.
(9) Short-term rentals must comply with all applicable codes under City Code Section 118.01 and
successfully obtain a business license prior to operation.
Democrat azette
P _ ..:,i r r C , .0 ' 7C? • '• is; 'I _'-1 , • { u,, ,1 > • i'r ., v, 1`.,.' G,;.C"If
AFFIDAVIT OF PUBLICATION
I, Brittany Smith, do solemnly swear that I am the Accounting Legal Clerk of the
Northwest Arkansas Democrat -Gazette, a daily newspaper printed and
published in said County, State of Arkansas; that I was so related to this
publication at and during the publication of the annexed legal advertisement
the matter of. Notice pending in the Court, in said County, and at the dates of
the several publications of said advertisement stated below, and that during said
periods and at said dates, said newspaper was printed and had a bona fide
circulation in said County; that said newspaper had been regularly printed and
published in said County, and had a bona fide circulation therein for the period of
one month before the date of the first publication of said advertisement; and that
said advertisement was published in the regular daily issues of said newspaper
as stated below.
City of Fayetteville
Ord 6427
Was inserted in the Regular Edition on:
May 2, 2021
Publication Charges: $155.04
- sll R
Brittany Smith
Cathy Wiles
Benton COUNTY
Subscribed and sworn to before me NOTARY PUBLIC -ARKANSAS
This 3 day ofA 2021. My Commission Expires 02-20-2024
I Commission No.12397118
Notary Public Jt^
My Commission Expires:
**NOTE**
Please do not pay from Affidavit.
Invoice will be sent.
Ordinance: 6427
File Number: 2020-1012
SHORT-TERM RENTAL
REGULATIONS:
AN ORDINANCE TO AMEND
§118.01 APPLICABILITY OF
CHAPTER 118 BUSINESS REGISTRY
AND LICENSES, CHAPTER 151
DEFINITIONS, CHAPTER 161
ZONING REGULATIONS, § 162.01
ESTABLISHMENT/LISTING OF
CHAPTER 162 USE UNITS, AND
CHAPTER 163 USE CONDITIONS OF
THE UNIFIED DEVELOPMENT
CODE TO CLASSIFY THE TYPES OF
SHORT-TERM RENTALS AND
CREATE REGULATIONS TO
PERMIT AND INSPECT THE
RENTALS
WHEREAS, in July of 2019 the City
Council adopted Resolution 172-19
requesting the study and development of
an ordinance for short-term rentals for
their consideration; and
WHEREAS, it is estimated that there are
approximately 500-600 short-term rental
units in Fayetteville; and
WHEREAS, the Fayetteville City Code
does not have specific rules for short-
term rentals and they have been treated
as hotels/motels in the zoning code
which prevents them from legally
operating in any residential single-
family zoning district.
NOW, THEREFORE, BE IT
ORDAINED BY THE CITY COUNCIL
OF THE CITY OF FAYETTEVILLE,
ARKANSAS:
Section 1: That the City Council of the
City of Fayetteville, Arkansas hereby
amends § 118.01 Applicability of
Chapter 118 Business Registry and
Licenses, Chapter IS Definitions,
Chapter 161 Zoning Regulations,
§ 162.01 Establishment/Listing of
Chapter 162 Use Units, and Chapter 163
Use Conditions of the Unified
Development Code by adopting the
changes as shown on
Exhibits A through E attached hereto
and made a part hereof classifying the
types of short term rentals
and creating regulations to permit and
inspect short term rentals in the City of
Fayetteville.
Section 2 : Sunset Clause. That the City
Council of the City of Fayetteville,
Arkansas hereby determines that this
ordinance and all amendments to Code
sections ordained or enacted by this
ordinance shall automatically sunset, be
repealed, terminated, and become void
twenty (20) months after the passage and
approval of this ordinance, unless prior
to that date, the City Council amends
this ordinance to repeal this sunset,
repeal and termination section.
PASSED and APPROVED on
4/20/2021
Approved:
Lioneld Jordan, Mayor
Attest: Kara Paxton, City Clerk
Treasurer 75410993 May 2, 2021
Ii
44.KgNs-
113 West Mountain Street
Fayetteville, AR 72701
(479) 575-8323
Ordinance: 6710
File Number: 2023-1269
SHORT-TERM RENTAL SUNSET CLAUSE(AMENDMENT):
AN ORDINANCE TO AMEND ORDINANCE 6427 AND ORDINANCE 6625 TO EXTEND THE SUNSET
PROVISION FOR SHORT-TERM RENTAL REGULATIONS TO DECEMBER 31,2024
WHEREAS, the sunset clause in Ordinance 6427, which was passed on April 20, 2021, provides that the ordinance
"and all amendments to Code sections ordained or enacted by this ordinance shall automatically sunset, be repealed,
terminated, and become void twenty (20)months after the passage and approval of this ordinance, unless prior to that
date,the City Council amends this ordinance to repeal this sunset,repeal and termination section";
WHEREAS,Ordinance 6625,which was passed on December 6,2022,amended Ordinance 6427 so that the ordinance
"and all amendments to Code Sections ordained or enacted by Ordinance 6427 shall automatically sunset, be repealed,
and become void on December 31, 2023, unless prior to that date the City Council amends this ordinance to repeal or
further amend this sunset repeal and termination section";
WHEREAS, the Ordinance Review Committee recommends extending the sunset date to allow for consideration of
amendments to the City's short-term rental regulations and to allow the continued operation of short-term rentals for a
one-year period.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE,
ARKANSAS:
Section 1: That the City Council of the City of Fayetteville, Arkansas hereby determines that Ordinance 6427(Sunset
Clause) and Ordinance 6625 (extending Sunset Clause) be amended so that Ordinance 6427 and all amendments to
Code Sections ordained or enacted by Ordinance 6427 shall automatically sunset, be repealed and become void on
December 31, 2024, unless prior to that date the City Council amends this ordinance to repeal or further amend this
sunset,repeal and termination section.
PASSED and APPROVED on November 21,2023
Page 1
Ordinance:6710
File Number:2023-1269
Approved: Attest:
oneld Jorda. .r Kara Paxton,City Clerk(Treasurer- ; :/0': i ; • •
• •
Page 2