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HomeMy WebLinkAboutOrdinance 6625 of h A IJ 113 West Mountain Street Fayetteville,AR 72701 (479)575-8323 Ordinance: 6625 File Number: 2022-0878 AMEND§118.01 APPLICABILITY,§151.01 DEFINITIONS AND§163.18 SHORT-TERM RENTALS: AN ORDINANCE TO AMEND SECTION 2 OF ORDINANCE 6427 TO EXTEND THE SUNSET PROVISION FOR SHORT TERM RENTAL REGULATIONS TO DECEMBER 31, 2023,AND TO DECLARE AN EMERGENCY 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the ordinance"and all amendments to Code sections ordained or enacted by this ordinance shall automatically sunset, be repealed,terminated,and become void twenty(20)months after the passage and approval of this ordinance,unless prior to that date,the City Council amends this ordinance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";and WHEREAS,the City Council 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 Section 2 of Ordinance 6427(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Ordinance 6427 and all amendments to Code Sections ordained or enacted by Ordinance 6427 shall automatically sunset,be repealed and become void on December 31,2023, unless prior to that date the City Council amends this ordinance to repeal or further amend this sunset,repeal and termination section. Section 2: That the City Council of the City of Fayetteville,Arkansas hereby determines that this ordinance should become effective without delay because allowing the City's short term rental Page 1 Printed on 12/7/22 Ordinance: 6625 File Number: 2022-0878 regulations to expire will likely lead to unregulated and illegal operation of short term rentals not subject to the City's life safety standards and insurance requirements,such that an extension of the sunset clause is necessary for the public peace as well as the health and safety of Fayetteville residents. Therefore,the City Council hereby declares an emergency exists such that this ordinance shall become effective immediately upon its passage and approval. PASSED and APPROVED on 12/6/2022 Approve Attest: x���RK 1rT���i,� �—______ V• ILf_E•7j- ioneld Jordan, or Kara Paxton, City lerk Treasurer y:_- G :',� .17 Page 2 Printed on 12/7/22 City of Fayetteville, Arkansas 113 West Mountain Street Fayetteville, AR 72701 (479)575-8323 Text File File Number: 2022-0878 Agenda Date: 12/6/2022 Version: 1 Status: Passed In Control: City Council Meetinq File Type: Ordinance Agenda Number: B.2 AMEND §118.01 APPLICABILITY, §151.01 DEFINITIONS AND §163.18 SHORT-TERM RENTALS: AN ORDINANCE TO AMEND SECTION 2 OF ORDINANCE 6427 TO EXTEND THE SUNSET PROVISION FOR SHORT TERM RENTAL REGULATIONS TO DECEMBER 31, 2023, AND TO DECLARE AN EMERGENCY 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"; and WHEREAS, the City Council 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 Section 2 of Ordinance 6427 (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, 2023, unless prior to that date the City Council amends this ordinance to repeal or further amend this sunset, repeal and termination section. Section 2: That the City Council of the City of Fayetteville, Arkansas hereby determines that this ordinance should become effective without delay because allowing the City's short term rental regulations to expire will likely lead to unregulated and illegal operation of short term rentals not subject to the City's life safety standards and insurance requirements, such that an extension of the sunset clause is necessary for the public peace as well as the health and safety of Fayetteville residents. Therefore, the City Council hereby declares an emergency exists such that this ordinance shall become effective immediately upon its passage and approval. City of Fayetteville, Arkansas Page 1 Printed on 121712022 Britin Bostick Submitted By City of Fayetteville Staff Review Form 2022-0878 Legistar File ID 10/4/2022 City Council Meeting Date - Agenda Item Only N/A for Non -Agenda Item 9/16/2022 LONG RANGE PLANNING (634) Submitted Date Division / Department Action Recommendation: Approve ADM-2022-0043: Administrative Item: (Amend UDC Chapter 118 — Applicability, Chapter 151— Definitions, and Chapter 163 — Short -Term Rentals): Submitted by CITY OF FAYETTEVILLE STAFF. The request is an amendment to remove the conditional use permit requirement for type 2 short-term rentals and to repeal a sunset provision in Ordinance No. 6427. Budget Impact: Account Number Fund Project Number Project Title Budgeted Item? No Current Budget $ - Funds Obligated $ - Current Balance Does item have a cost? No Item Cost $ - Budget Adjustment Attached? No Budget Adjustment $ - Remaining Budget Purchase Order Number: Change Order Number: Original Contract Number: Comments: V20210527 Previous Ordinance or Resolution # 6427, 6537 Approval Date: 4/20/21,02/15/22 CITY OF FAYETTEVILLE ARKANSAS MEETING OF OCTOBER 4, 2022 TO: Mayor; Fayetteville City Council THRU: Susan Norton, Chief of Staff Jonathan Curth, Development Services Director Fayetteville Planning Commission CITY COUNCIL MEMO FROM: Britin Bostick, Long Range Planning/Special Projects Manager DATE: September 16, 2022 SUBJECT: ADM-2022-0043: Administrative Item: (Amend UDC Chapter 118 — Applicability, Chapter 151 — Definitions, and Chapter 163 — Short -Term Rentals): Submitted by CITY OF FAYETTEVILLE STAFF. The request is an amendment to remove the conditional use permit requirement for type 2 short-term rentals and to repeal a sunset provision in Ordinance No. 6427. RECOMMENDATION: City staff and the Planning Commission recommend approval of an amendment to the Unified Development Code amending § 118.01, Applicability in Chapter 118, Business Registry and Licenses; amending § 151.01, Definitions; and amending § 164.26, Short -Term Rentals, to remove the Conditional Use Permit requirement for Type 2 Short -Term Rentals. The recommendation also includes repealing a sunset provision in Ordinance No. 6427, which automatically repeals the regulation of Short -Term Rentals 20 months after the adoption of the ordinance on April 20, 2021. BACKGROUND: Short-term rentals are defined in the Fayetteville Unified Development Code (UDC) as, "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 rentals are classified as two different types. Type 1 short-term rentals are those where the principal use of the property remains as a full-time residence. Type 2 short-term rentals are defined as, "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." On April 20, 2021 the Fayetteville City Council adopted Ordinance No. 6427 to regulate short- term rentals, which followed Resolution 172-19 passed in July 2019 to study such an ordinance. This ordinance established a 6-month start-up period for existing short-term rentals to obtain a business license and set the business license requirements and use conditions specific to short- term rentals. The initial ordinance included a citywide density cap on the number of business licenses that may be issued for type 2 short-term rentals at 2% of the total dwelling units in the Fayetteville city limits. This cap is applied in zoning districts that do not allow hotel or motel uses. Mailing Address: 113 W. Mountain Street www.fayetteville-ar.gov Fayetteville, AR 72701 There is currently a citywide cap of 875 business licenses for type 2 short term rentals based on the 2020 U.S. Census estimation of 43,795 housing units. The initial ordinance also established a limit of either 10% or a single unit, whichever is greater, on the total number of dwelling units used as type 2 rentals within a multi -family dwelling complex. Excluded from the multi -family cap are dwellings held separately through condominium association, horizontal property regime, fee simple, or similar ownership structure. Subsequent Ordinances No. 6505 adopted November 16, 2021 and No. 6537 adopted February 15, 2022 extended the start-up period to nine and twelve months, respectively. Since Ordinance No. 6427 was adopted on April 20, 2021, and as of September 14, 2022, Development Services has: • Issued 326 business licenses for type 2 short-term rentals o 282 are subject to the citywide density cap for a 32.2% usage of the cap • Issued 75 active business licenses for type 1 short-term rentals • Denied 104 business license applications for short-term rentals (most of which were denied due to not completing the business license application during the start-up period) o Of those denials 84 were for type 2 short-term rental applications • Received 5 complaints for short-term rentals • Issued 2 violation notices for short-term rentals Since the end of the start-up grace period on July 21, 2022 and as of September 14, 2022 Development Services has: • Received 54 conditional use permit applications for type 2 short-term rentals • Issued 51 business licenses for short-term rentals, 38 of which are type 2 short-term rentals • Denied 0 business licenses for short-term rentals This year as of September 14 the Fayetteville Planning Division has received a total of 83 conditional use permit applications, 54 of which have been submitted for type 2 short-term rentals since July 21. In less than two months, short-term rentals represent 65% of the total number of conditional use permits submitted for 2022, with an average of two conditional use permit applications per Planning Commission meeting in May, June and July and an average of eight applications Per Planning Commission meeting in August and September, which correlates with the end of the short-term rental start-up period. A sunset clause was included in the initial ordinance approved on April 20, 2021. The clause provided for an automatic repeal of the ordinance regulating short-term rentals within 20 months without action by the Council to repeal the sunset clause. This automatic repeal of the ordinance would take effect on December 20, 2022 if no action is taken by the Council to continue it. Given the enforcement provisions in the ordinance and the majority of short-term rentals being located in residential neighborhoods, continuing the regulation of short-term rentals provides clear expectations for operation and a remedy in the event that the use of a property as a short-term rental violates the adopted standards. If the sunset clause is not extended or if the short-term rental ordinance is not made permanent, this will remove life safety inspections and enforcement tools, render many short term rentals illegal, and likely reduce tax collections. DISCUSSION: The purpose of this amendment is to remove the conditional use permit requirement for type 2 short-term rental business licenses, as requirements and review processes are otherwise in place to address the operation of short-term rentals. The citywide density cap provides a limit to the number of businesses licenses for type 2 short-term rentals, and the business license regulations grant administrative authority to revoke approved business licenses if it is found that the conditions of operation are not being met. Additionally, the removal of the requirement for the approval of a conditional use permit (CUP) prior to the issuance of a short-term rental reduces the time and resources allocated by the Planning Division's Development Review staff to these items and allows for a reallocation of time to other customer service and development application review needs, including enforcing adopted ordinance. Per UDC Sec. 118.01(E)(18), a CUP may not permit more type 2 short-term rentals than is allowed by the city-wide density cap. It should be noted that type 2 short-term rentals in commercial and mixed -use zoning districts where hotels/motels are permitted by right do not contribute to the city-wide density cap. A conditional use permit may also not permit more type 2 short-term rentals in a multi -family dwelling complex than the multi -family density cap allows. Per UDC Section 163.02(C)(3)(c), the Planning Commission considers the following when reviewing CUP requests for type 2 short-term rentals or other conditional uses: • Compliance with the specific rules governing individual conditional uses • Ingress to and egress from property and proposed structures thereon with particular reference to automotive and pedestrian safety and convenience, traffic flow and control and access in case of fire or catastrophe • Off-street parking and loading areas where required, with particular attention to ingress and egress, economic, noise, glare, or odor effects of the special exception on adjoining properties and properties generally in the district • Refuse and service areas, with particular reference to ingress and egress, and off-street parking and loading • Utilities, with reference to locations, availability, and compatibility • Screening and buffering with reference to type, dimensions, and character • Signs, if any, and proposed exterior lighting with reference to glare, traffic safety, economic effect, and compatibility and harmony with properties in the district • Required setbacks and other open space • General compatibility with adjacent properties and other property in the district • General compatibility with the goals and intent of the city's adopted land -use, transportation, and other strategic plans Given the scope of review granted to the Planning Commission for CUPs and the requirements in place for a business license to operate a type 2 short-term rental, staff's position is that the business license requirements are sufficient to adequately condition and enforce type 2 short- term rentals. Those requirements are included in UDC Sec. 118.01, attached to this memo. If the requirements for a business license are not being met for any short-term rental, enforcement provisions are in place to revoke an approved business license. Per UDC Sec. 118.01 (E)(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 (1) full night, or to more than one (1) 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." The revocation of a business license may be appealed to the Fayetteville City Council. One reason staff advocates the business license as an enforcement rather than a CUP, is that the revocation of a business license is a more expedient process than that to revoke a CUP. The CUP revocation is described in UDC Sec. 163.14, Revocation or Change of Conditional Use, attached for reference to this memo. Although the business license approval process requires multiple steps and can take up to a few weeks to complete, the time from application to Planning Commission review of a CUP, approximately six weeks, has been perceived by some potential applicants as a hurdle representing a disincentive for compliance. Anecdotally, potential applicants have communicated to staff that the CUP requirement does not dissuade them from operating a short-term rental, rather that the requirement is a strong incentive to operate a short-term rental without the required approvals until a complaint is submitted. In the Planning Commission's Long Range Planning Committee meeting on August 18, 2022 the Commissioners noted the sudden increase in the number of CUP applications on the regular meeting agendas and expressed a desire to streamline the review process. Commissioners additionally noted other concerns. These included impacts to neighborhood parking via the use of short-term rentals by large groups with multiple vehicles and whether thresholds for review should be set based on approved business licenses for short-term rentals approaching the citywide density cap. The committee ultimately voted 4-0-1 in favor of forwarding the item to the next available regular meeting. A further concern that has been expressed by the Planning Commission in recent meetings includes the potential impacts of long-term rentals changing to short-term rentals, and the resulting reduction in available housing. The city's permanent population growth and the growth of student enrollment at the University of Arkansas both play a prominent role in the cost and availability of housing. Evaluating housing supply and demand and the role short-term rentals play in that dynamic is an ongoing task. As CUPs are a tool for reviewing compatibility and do not have the ability to affect the citywide density cap, retaining the CUP requirement would not effectively address this concern about housing. However, staff recognizes that as the school season begins and college athletics serve as a large weekend draw to the city, there are potential seasonal trends to short-term rentals that should be considered. As the citywide cap still has hundreds of available approvals, and as there is financial incentive to owners though increased income typical of a short-term rental, staff's expectation is that economic trends will prove stronger than seasonal trends and continue to result in a large number of short-term rental requests. At their September 12, 2022 meeting, the Planning Commission evaluated the amendment described above before forwarding to the City Council, recommending approval. Commissioner 4 Brink made the motion to forward with Commissioner McGetrick providing the second. A vote of 6-2-0 followed. The Commissioners noted a desire to streamline the process and relieve the sudden large number of conditional use requests brought on by the end of the start-up period. The notification aspect of the conditional use permit, however, was viewed as a benefit and the Commissioners discussed whether notification requirements could be applied to the business license review process. The Commissioners expressed a preference for a means of notification to neighboring properties when a short-term rental is in review. Additional concerns included neighborhood destabilization caused by multiple properties on a block being used as short-term rentals, potential impacts to safety if neighborhoods are vacant part of the time, how short-term rentals affect housing affordability, and impacts to adjacent properties. The Commissioners asked to discuss further refinements to type 2 short-term rental requirements in their next Long Range Planning Committee meeting, but ultimately decided to forward the item to City Council acknowledging the timing of the sunset provision and that the Council may want to discuss the proposed amendment and sunset clause in more than one meeting. No public comment was received on the item, but staff did receive one call related to a request for a type 2 short-term rental conditional use permit application prior to the meeting in which the caller also had questions about the proposed amendment. In summary: • The conditional use permit requirement in addition to the business license requirement creates a duplicative set of reviews with no apparent gain in enforcement. • There have been minimal complaints issued to staff since the ordinance regulating short- term rentals was adopted. • Removing the CUP requirement does not remove the density cap requirement, and enforcement provisions are captured in the business license requirements. • Planning Commissioners intend to study and discuss the regulation of short-term rentals further, but at this time have forwarded the requested amendment and repeal of the sunset clause to the City Council with a recommendation of approval. BUDGET/STAFF IMPACT: N/A Attachments: Proposed Ordinance — Exhibit "A" o §118.01, Applicability o §151.01, Definitions o §164.26, Short -Term Rentals Proposed Ordinance Amendment in Strikeout/Highlight o §118.01, Applicability o §151.01, Definitions o §163.18, Short -Term Rentals §163.14, Revocation or Change of Conditional Use (for reference, no change proposed) EXHIBIT `A' ADM-2022-0043 118.01 Applicability (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 nine (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. (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) A separate business license shall be required for each dwelling unit used as a short-term rental. (5) Any change in ownership requires a new or amended business license. (6) 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. (7) 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. (8) License Renewals. Business licenses for short-term rentals shall be renewed in accordance with Chapter 118 of the Business Regulations (Business Registry and Licenses). (9) 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. (10) 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. (11) 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 (3) years and shall be provided to the City upon request. (12) 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. (13) 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. (14) 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. (15) 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). (16) Density For Type 2 Short -Term Rentals. A city-wide density cap of 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. Type 2 short- term rentals in commercial and mixed -use zoning districts where hotel/motels are permitted by right shall not contribute to the city-wide density cap. (b) More than 10% 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) Where attached residential units are held separately through condominium association, horizontal property regime, fee simple, or similar ownership structure, no cap shall be applied to buildings with attached residential dwellings. Structures of attached residential dwellings where applicants seek more than 10% of total units for licensing as Type 2 rentals shall be evaluated by the Building Safety Director and/or Fire Marshal for adequate fire protection as defined by the adopted Arkansas Fire Prevention Code. Where inadequate fire protection is identified, improvements may be required prior to issuance of a business license. (17) 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 (1) full night, or to more than one (1) 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. (18) Short-term rentals must comply with the Unified Development Code including the regulations contained in § 164.25 and must successfully obtain a business license prior to operation. EXHIBIT'B' ADM-2022-0043 164.26 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) 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. (8) Short-term rentals must comply with all applicable codes under City Code §118.01 and successfully obtain a business license prior to operation. 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 nine (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. F .,,_i+i,,.,-,l , permit is required for a Type 2 short term rental prier to the City iSSUiRg a b SiRess li.-. Rse except as defined in f.114 01!CllA1 (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 (Supp. No. 25) Created: 2022-07-06 12:48:43 [EST] Page 1 of 4 (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) Avelve (12) Menth Start up Peried. After the enactment of the short term rental ordinance, short term rental operators shall have twelve (12) months to submit an application for a business license for the operation of a short term rental. After the twelve (12) month start up peried, all shert term rental hits must have a business license to be considered I compliance. Code section shall be granted a cend-itien-al use Permit fer -,;hA-.rt tp_Rm. re.ntal viathout having to pay aa fee or have a hearing before the Planning Commission. The conditions for such permit shall be full ,eempliance with all terms and requirements of Chapter 118, Business RegiStFY and Licenses, this sectien, and all other requirefflents of the Fayetteville Code including timely and full payment of all hetel, metel, and Festaurant taxes to the city. Revocation ef the business license shall also revoke the conditional use permit granted by this subsection. _(b) Persons seeking to eperate a Type 2 short term rental who have failed to apply for such conditional use permit and business license prior to the end of the twelve (!2) month start up period shall be required to follow normal procedures and apply to the Planning Commission te request a Genditional use per which will be issued or denied PLIFSLiant to the Planning Commission's decision pursuant t-0 (bc) Type 1 and 2 short terM Fentals seeking a business license or permit undeF the 12 month staFt Lip period which are currently operating in 2 , 3 and 4 unit buildings an which more than one (I) Unit is being used as a short term rental Fnay obtain a business license for all cuFrently Operating short term re (�id) Applaeatiens submitted PFiOF te the end of the 12 menth staFt Lip peFied shall expire sixty (60) days afteF the staFt Lip peFied has ended if the business lieense has not been issued by the City by that time. (&4) A separate business license shall be required for each dwelling unit used as a short-term rental. (65) Any change in ownership requires a new or amended business license. (76) 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. (97) 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. (Supp. No. 25) Created: 2022-07-06 12:48:43 [EST] Page 2 of 4 (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. (388) License Renewals. Business licenses for short-term rentals shall be renewed in accordance with Chapter 118 of the Business Regulations (Business Registry and Licenses). (319) 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. (1210) 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. (1311) 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 (3) years and shall be provided to the City upon request. (4412) 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. (1-513) 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. (1614) 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. (1-715) 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). (4816) Density For Type 2 Short -Term Rentals. A city-wide density cap of 2% of all dwelling units in the Fayetteville city limits may be utilized as Type 2 rentals. Total dwelling units are determined from (Supp. No. 2S) Created: 2022-07-06 12:48:43 [EST] Page 3 of 4 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. Type 2 short- term rentals in commercial and mixed -use zoning districts where hotel/motels are permitted by right shall not contribute to the city-wide density cap. (b) More than 10% 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) Where attached residential units are held separately through condominium association, horizontal property regime, fee simple, or similar ownership structure, no cap shall be applied to buildings with attached residential dwellings. Structures of attached residential dwellings where applicants seek more than 10% of total units for licensing as Type 2 rentals shall be evaluated by the Building Safety Director and/or Fire Marshal for adequate fire protection as defined by the adopted Arkansas Fire Prevention Code. Where inadequate fire protection is identified, improvements may be required prior to issuance of a business license. (4-917) 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 (1) full night, or to more than one (1) 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. (2018) Short-term rentals must comply with all appleEable ^,.des nderthe Unified Development Code including the regulations contained in §363.18 164.26 and must successfully obtain a business license prior to operation. ( Ord. No. 6427, §§1(Exh. A), 2, 4-20-21; Ord. No. 6505, §1(Exh. A), 11-16-21; Ord. No. 6521, §§1, 2, 1-18-22; Ord. No. 6537, §1(Exh. A), 2-15-22) Editor's note(s)—Ord. No. 6427, § 2, adopted April 20, 2021, "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." (Supp. No. 25) Created: 2022-07-06 12:48:43 [EST] Page 4 of 4 151,01 Definitions 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. .4. cend-iflenal use permit is required for a Type 2 short term rental prier to the City issuing a buSiRess lice.nse. (Code 1965, §§13A-1; 1313-1; 17B-7(a0, 19-24, 1713-2; App. A, Art. 17; App. B, §1; App. C, Art. 1, §D; Ord. No. 1509, 8-8-66; Ord. No. 1747, 6-20-70; Ord. No. 1790, 3-15-71; Ord. No. 1801, 6-21-71; Ord. No. 1859, 3-20-72; Ord. No. 1893, 12-19-72; Ord. No. 1998, 5-7-74; Ord. No. 2581, 12-4-79; Ord. No. 2697, 1-20-81; Ord. No. 2753, 8-18-81; Ord. No. 2789, 1-18-82; Ord. No. 2934, 8-2-83; Ord. No. 2948, 9-20-83; Ord. No. 3011, 6-5-84; Ord. No. 3024, 8-21- 84; Ord. No. 3231, 12-2-86; Ord. No. 4024, §2, 3-28-87; Ord. No. 3298, 10-6-87; Code 1991, §§98.60, 118.01, 150.02, 156.001, 156.065, 158.03, 158.35, 159.04, 160.002, 160.096(A), 160.121, 161.06, 162.02, 163.02; Ord. No. 3551, 6-4-91; Ord. No. 3138, 11-5-85; Ord. No. 3165, 2-4-86; Ord. No. 3699, §2, 4-20-93; Ord. No. 3780, §1, 4-19- 94; Ord. No. 3794, §1 5-17-94; Ord. No. 3870, §1, 4-1-94; Ord. No. 3895, 6-20-95; Ord. No. 3901, §1, 2, 7-5-95; Ord. No. 3908, §1, 7-18-95; Ord. No. 3970, §1, 7-18-95; Ord. No. 3913, §1, 8-1-95; Ord. No. 3963, §1, 4-16-96; Ord. No. 3970, §1, 5-7-96; Ord. No. 3971, §1, 5-21-96; Ord. No. 4100, §2 (Ex. A), 6-16-98; Ord. No. 4113, 8-18-98; Ord. No. 4127, 12-15-98; Ord. No. 4178, 8-31-99; Ord. No. 4226, 2-15-00; Ord. No. 4285, 1-2-01; Ord. No. 4321, 6-19-01; Ord. No. 4340, 10-2-01; Ord. 4714, 6-21-05; Ord. No. 4817, 1-03-06; Ord. No. 4847, 3-7-06; Ord. No. 4855, 4-18-06; Ord. No. 4919, 09-05-06; Ord. No. 4930, 10-03-06; Ord. No. 5028, 6-19-07; Ord. No. 5029, 6-19-07; Ord. No. 5056, 9-04-07; Ord. No. 5128, 4-15-08; Ord. No. 5206, 12-16-08; Ord. No. 5238, 5-5-09; Ord. No. 5296, 12-15-09; Ord. No. 5304; 1-19-10; Ord. No. 5312, 4-20-10; Ord. No. 5313, 4-20-10; Ord. No. 5327. 6-1-10; Ord. No. 5339, 8-3-10; Ord. No. 5352, 9-7-10; Ord. No. 5348, 9-7-10; Ord. No. 5375, 12-21-10; Ord. No. 5453, 10-18-11; Ord. No. 5490, 4- 3-12; Ord. No. 5526 9-18-12; Ord. No. 5559, 01-03-13; Ord. No. 5592, 06-18-13; Ord. No. 5634, 11-05-13; Ord. No. 5653, 01-21-14; Ord. No. 5679, 4-15-14; Ord. No. 5735, 1-20-15; Ord. No. 5793, 8-18-15; Ord. No. 5866, §1, 4-5- 16; Ord. No. 5888, §1, 6-21-16; Ord. No. 5901, §1, 9-6-16; Ord. No. 5951, §1, 2-7-17; Ord. No. 5986, §3, 7-6-17; Ord. No. 6015, §2, 11-21-17; Ord. No. 6087, §1, 9-4-18; Ord. No. 6245, §1, 10-15-19; Ord. No. 6350, §2(Exh. A), 8-18-20; Ord. No. 6407 §1, 1-19-21; Ord. No. 6427, §§1(Exh. B), 2, 4-20-21; Ord. No. 6440, §1, 5-18-21; Ord. No. 6442, §7(Exh. G), 6-1-21; Ord. No. 6446, §2(Exh. A), 6-15-21; Ord. No. 6520, §§1, 2, 1-18-22; Ord. No. 6521, §3, 1-18-22) Editor's note(s)-Ord. No. 6427 , § 2, adopted April 20, 2021, "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." (Supp. No. 25) Created: 2022-07-06 12:48:4S [EST] Page 1 of 1 I G�164.26 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. rental operators shall have twelve (12) menths to submit an application f9F a business license. Afte the twelve (12) month start up peFied, all short term rental units must have a business license to be considered i compliance. this Code section shall be ffanted a eenditienal use permit feF SWeh SheFt term reRtal witheut peffnit shall be full eemplianEe with all teFms and FequiFements ef GhapteF 118, Business RegiStFy and Licenses, this seetien, and all etheF FequiFements ef the Fayetteville Cede including timek ' , lie-e-r,se Shall also r el(e the c nditi. nal use ....it g . ted by this s uh. ectien _(b) PeFsens seeking te eperate a Type 2 Short term rental whe have failed te apply fer such eenditienal use peFFAit and business license prier to the end ef the twelve (12) month start up peFied shall be FeqWiFed te follow normal ff8eedwres and apply to the WaRning Gemmissien to (c) Type 1 and 2 sheFt teFrn rentals seeking a business license er permit under the twelve (12) mentli start up peried whieh are currently eperating In 2 , 3 and 4 unit buildings On which MeFe than ene (1) unit us being used as a shert term rental may elatain a business lieense fer all currently (12) menth start up peried shall expire s xty (60) days afteF the start up peried has ended ifthe huriness license has net been ssue by the city by that time. (87) 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. (Supp. No. 25) Created: 2022-07-06 12:48:49 [EST] Page 1 of 2 (98) Short-term rentals must comply with all applicable codes under City Code §118.01 and successfully obtain a business license prior to operation. ( Ord. No. 6427, §§1(Exh. E), 2, 4-20-21; Ord. No. 6505 , §2(Exh. B), 11-16-21; Ord. No. 6537 , §2(Exh. B), 2-15-22) Editor's note(s)—Ord. No. 6427, § 2, adopted April 20, 2021, "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." (Supp. No. 25) Created: 2022-07-06 12:48:49 [EST] Page 2 of 2 163.14 - Revocation Or Change Of Conditional Use (A) Upon receipt by the Planning Department of a written complaint by a Fayetteville resident that a holder of a conditional use has substantially violated or is violating any term or condition of the conditional use, the Planning Department shall investigate this complaint to determine if it is substantiated. (B) If the Planning and Zoning Administrator determines that the complaint is substantiated, official notification by letter outlining the violation shall be sent to the holder of the conditional use requiring immediate compliance with all conditions and terms of approval of the conditional use and noting the substantiated complaint. (C) If the Zoning and Development Administrator determines that the holder has violated the terms of the conditional use and failed to promptly and voluntarily correct its failures, the Zoning and Development Administrator shall refer the existing conditional use to the Planning Commission for its review. After a hearing for all interested persons, the Planning Commission may amend or add conditions to the conditional use, may revoke a conditional use for substantial violations of the existing terms and conditions of the conditional use, or may reaffirm that the holder has complied with all terms of its conditional use. (D) Except in extraordinary circumstances, the Zoning and Development Administrator shall not refer any alleged violations of a specific conditional use to the Planning Commission more often than once per year. (E) Periodic Review. In addition to the consideration of substantial violation provisions of (A), (B), and (C), the Planning Commission may periodically review and reconsider a conditional use permit under the following criteria: (1) Receipt of a petition to review an approved conditional use permit from an adjacent property owner and 50% or more of the property owners within 100 feet of the property boundary on which the conditional use permit has been granted, in a form provided by the Planning Division. The property owners signing the petition must provide the reasons for which they feel reconsideration is warranted and how they are adversely affected by the approved conditional use permit. (2) Upon receipt of a verified petition, the Planning Commission may review the conditional use permit and either approve the conditional use as it exists or modify the conditional use with new or altered conditions to achieve a greater degree of compatibility with adjacent properties. (3) Appeals from the decision of the Planning Commission under this subsection shall follow the requirements of §155 Appeals of the Unified Development Code, for conditional use permits. (4) The right to a periodic review of a conditional use under this subsection may only be exercised five (5) years or longer after the conditional use permit was granted. No periodic review may be conducted more than one (1) time in a five (5) year period. (5) This periodic review procedure is not applicable for wireless communication facilities and vital government facilities. (Ord. No. 4837, 02-21-06; Ord. No. 5330, 6-15-10) Received by Britin Bostick 9/26/22 5:46 PM CITY OF FAYETTEVILLE ARKANSAS MEETING OF OCTOBER 4, 2022 TO: Mayor; Fayetteville City Council THRU: Susan Norton, Chief of Staff Jonathan Curth, Development Services Director CITY COUNCIL MEMO FROM: Fayetteville Planning Commission Britin Bostick, Long Range Planning/Special Projects Manager DATE: September 23, 2022 SUBJECT: ADM-2022-0043: Administrative Item: (Amend UDC Chapter 118 - Applicability, Chapter 151 - Definitions, and Chapter 163 - Short -Term Rentals): Submitted by CITY OF FAYETTEVILLE STAFF. The request is an amendment to remove the conditional use permit requirement for type 2 short-term rentals and to repeal a sunset provision in Ordinance No. 6427. RECOMMENDATION: The Planning Commission recommends that the City Council consider an additional amendment to UDC Chapter 118 - Applicability to require notification to surrounding properties when a Type 2 short-term rental business license application has been submitted to Development Services and is in review. This would occur in lieu of the current conditional use permit requirement and associated public notification. The Planning Commission proposes that notification occur via letter to adjacent owners and residents or owners and residents within the standard development application notification radius of 200', and that the letters be sent while the business license application for the type 2 short-term rental is being reviewed so that Development Services staff can confirm the notification was completed. The Planning Commission additionally recommends that the City Council consider additional provisions to regulate short-term rentals, which could include whether short-term rentals are permitted in every zoning district or restricted from some zoning districts, limits on total occupancy of short-term rentals, and density caps on a geographic basis rather than a citywide basis to reduce concentrations of short-term rentals in some neighborhoods. BACKGROUND: In their September 12, 2022 meeting the Fayetteville Planning Commission forwarded ADM-2022- 0043 to the City Council with a recommendation of approval. The recommendation included repealing the sunset clause in Ordinance No. 6427 to continue the regulation of short-term rentals and the removal of the conditional use permit requirement for type 2 short-term rentals. The Commissioners voted 6-2-0 to forward the item and noted a desire to streamline the process and relieve the sudden large number of conditional use requests brought on by the end of the start- up period. The notification aspect of the conditional use permit, however, was viewed as a benefit and the Commissioners discussed whether notification requirements could be applied to the Mailing Address: 113 W. Mountain Street www.fayetteville-ar.gov Fayetteville, AR 72701 business license review process. The Commissioners expressed a preference for a means of notification to neighboring properties when a short-term rental is in review. Additional concerns included neighborhood destabilization caused by multiple properties on a block being used as short-term rentals, potential impacts to safety if neighborhoods are vacant part of the time, how short-term rentals affect housing affordability, and impacts to adjacent properties. The Commissioners asked to discuss further refinements to type 2 short-term rental requirements in their next Long Range Planning Committee meeting, but ultimately decided to forward the item to City Council acknowledging the timing of the sunset provision and that the Council may want to discuss the proposed amendment and sunset clause in more than one meeting. Following the Planning Commission Agenda Session on September 22, 2022 the Planning Commission met in their Long Range Planning Committee to further discuss short-term rentals, focusing on type 2 short-term rentals. In that meeting, which was attended by six of the nine Commissioners, they reviewed data from staff, discussed concerns and considered whether to make further recommendations to the City Council. DISCUSSION: In their Long Range Planning Commission meeting on September 22, 2022 the Planning Commissioners discussed providing a letter or memo to the Council in addition to the forwarded item ADM-2022-0043 to be able to provide additional recommendations to the City Council as they consider whether to remove the sunset clause on the regulation of short-term rentals and whether to remove the conditional use permit requirement for type 2 short-term rentals. Questions and points of discussion from both Commissioners and staff included recognizing the benefits of notification to neighbors that a type-2 short-term rental was being reviewed, even if the notification was for awareness purposes only and not for public comment; the policy that a conditional use permit once approved is applied to the property and not to the business license, allowing future owners to apply for a business license without needing to reapply for a conditional use permit; the requirement for short-term rental agents to register with the City's landlord registry; whether notification by letter would be issued after a type 2 short-term rental business license is approved or whether the notification should be a condition of approval of the business license; and the likelihood that short-term rentals are operating without receiving the required approvals. Additional discussion and consideration included whether the 2% citywide density cap on type 2 short-term rentals should be reduced to a lower percentage, whether short-term rentals should be restricted by zoning district, whether additional limits should be placed on the business license requirements for short-term rentals, how many type 2 short-term rental owners had addresses outside of Fayetteville, how many new housing units are being permitted compared to the number of type 2 short-term rental business licenses issued, and parking and occupancy issues being the main complaints received by the Planning Division. In summary: • The Planning Commission recommends that the City Council consider adding a notification requirement for the type 2 short-term rental business license in the event that the conditional use permit requirement is removed so that adjacent or surrounding property owners and residents are notified by letter that a type 2 short-term rental application has been submitted and is in review. The Planning Commission further recommends that the City Council consider whether short-term rentals should be permitted in every zoning district, whether there should be limits on the total number of occupants for any short-term rental, and whether there should be a density cap established on a geographic basis rather than a citywide basis. BUDGET/STAFF IMPACT: N/A ATTACHMENTS: N/A Received by Jonathan Curth 10/07/22 2:35 PM CityClerk From: CityClerk Sent: Tuesday, October 11, 2022 3:20 PM To: CityClerk Subject: Short -Term Rentals - Requested Information & Resources (2022-0878) From: Curth, Jonathan <icurth@fayetteville-ar.gov> Sent: Friday, October 7, 2022 2:35 PM To: Curth, Jonathan <jcurth@fayetteville-ar.gov> Cc: Bostick, Britin <bbostick@fayetteville-ar.gov> Subject: Short -Term Rentals - Requested Information & Resources Mayor & Council, As a first step in responding to Council's questions and concerns about short-term rentals, we have collected the following items with access through the City's short-term rental page: Short -Term Rental Quick/Helpful Links • October 4, 2022 City Council Presentation • December 14, 2018 UA Student STR Policy Analysis and Alternatives Presentation • December 2018 UA Student STR Policy Analysis and Alternatives • Development Services Dashboard Map: This maps opens with a display of all business licenses, short-term rental or otherwise. Please use the dialogue box towards the upper right titled "Type of License" to select "BL Short - Term Rental, Type 1", "BL Short -Term Rental, Type 2", or a combination of both. Please let us know if you have follow-up questions, concerns, or requests for information. In the meantime, Britin and I are working on answers to your questions on enforcement, compliance, and localizing allowances, along with proposals to address these concerns. We appreciate your thoughtful input and efforts to constructively consider the ordinance. Thanks, Jonathan Curth, AICP Development Services Director Development Services Department City of Fayetteville, Arkansas icurthPfavetteville-ar.eov 479.575.8308 Website I Facebook I Twitter I Youtube Received by Britin Bostick 10/13/22 1:15 PM CITY OF FAYETTEVILLE ARKANSAS MEETING OF OCTOBER 18, 2022 TO: Mayor; Fayetteville City Council THRU: Susan Norton, Chief of Staff CITY COUNCIL MEMO FROM: Jonathan Curth, Development Services Director Britin Bostick, Long -Range Planning & Special Projects Manager DATE: October 13, 2022 SUBJECT: ADM-2022-0043: Administrative Item: (Amend UDC Chapter 118 - Applicability, Chapter 151 - Definitions, and Chapter 163 - Short -Term Rentals): Submitted by CITY OF FAYETTEVILLE STAFF. The request is an amendment to remove the conditional use permit requirement for type 2 short-term rentals and to repeal a sunset provision in Ordinance No. 6427. BACKGROUND: At their October 4th, 2022 meeting, the City Council considered a Planning Commission recommendation to reaffirm adoption of Fayetteville's short-term rental (STR) requirements. Within the Planning Commission's recommendation is a proposal for an amendment removing the requirement for conditional use permit approval from Type 2 STRs, which are those dwellings utilized primarily for short-term rental, not owner -occupancy or long-term rental. By contrast, Type 1 STRs are occupied by a permanent resident, with renting limited to no more than three months per year. At the October 4th Council meeting, staff solicited feedback and input from the Council, including comments from their constituents and the public. Concerns included, but were not limited to, inadequate enforcement and penalties, reactive pursuit of compliance, opportunities for limited STR concentration or frequency within neighborhoods, and details on the sunset clause incorporated into the STR ordinance. DISCUSSION: Staff observed that the Council's comments largely fell into three policy objectives: compliance, enforcement, and the frequency or concentration of STRs in neighborhoods. Taking these one at a time, each objective is outlined below in terms of the current state and options moving forward. Compliance Currently, operators of STRs submit conditional use permit applications for Type 2 STRs followed by a business license application, while operators of Type 1 STRs submit directly for the business license. If an STR has been operating without a license, licensing and permitting for STRs occurs in response to a complaint or verified violation. Mailing Address: 113 W. Mountain Street www.fayetteville-ar.gov Fayetteville, AR 72701 Alternatively, a proactive approach could be adopted, where staff utilizes online resources to identify operating, but unlicensed STRs. These properties would then be issued notification letters outlining licensing requirements. If the owner or manager continued to advertise and operate the STIR, a violation letter and penalty would be the next steps. Using one of the most common STIR identification platforms, AirDNA, staff has identified approximately 650 dwellings utilized as STRs in the last twelve months. This is in comparison to the 395 licenses issued as of the October 4th City Council meeting. Additional STRs may exist using a myriad of other platforms that were not captured in the AirDNA data. Based on the disparity between the number of properties currently licensed as STRs, the number of dwellings utilized as STRs as shown on the AirDNA platform, and the staff time and resources needed to investigate and resolve complaints received regarding STRs that may be operating without a license, it would be reasonable to assume additional resources and capacity may need to be dedicated to successful and timely proactive enforcement. A second alternative would be to pursue 3rd party compliance support. Several firms offer a suite of services related to STRs, including compliance, enforcement, tax collection, and licensing. Pricing varies significantly, and largely depends on the size of the municipality, the number of STRs, and the extent of services. Staff discussions with 3rd party compliance groups suggest pricing may be in the range of $30,000 to $75,000 per year. Lastly, encouraging compliance can include disincentivizing non-compliance. More specifically, stricter and well -advertised penalties may motivate current and future operators to observe Fayetteville's standards. While Fayetteville's use of a general `dollar amount per day' penalty is common, other municipalities have adopted higher penalties and additional long-term consequences, including fines of $1000-$4000 per violation, upward scaling fines for repeat violations, and prohibition of STIR operation on a property for a designated period, ranging from weeks to months. Enforcement Operators, whether property owners or managers, found to be in violation for renting without a permit or license, or otherwise not complying with the ordinance, receive a written Notice of Violation. Without action towards compliance, the violation is forwarded to the City Prosecutor with a potential penalty of $250 per day. Additionally, the Development Services Director is empowered to order water shut-off to a property in violation. Complaints begin with Business Licensing or Planning. Investigation includes site visits, cross referencing a property with police records, and a review for online advertisement, existing approvals, previous complaints, ownership records, and guest records. Limitations on enforcement include off -hour and weekend availability for staff investigation, the inability to confirm the number of occupants inside a dwelling or vehicles associated with a property from the street, and constrained or limited access to online advertising platforms and their records. On the last item, many online advertising platforms or STIR data sites provide information aggregated over extended periods, limiting the ability of staff to confirm an active violation on a single property for a specific date. Enforcement remains a challenge for all cities that staff contacted or reviewed, whether in Arkansas or elsewhere. Examples abound of properties where utilities have been disconnected and fines levied, but the owner or manager continued to advertise the address. When staff reviewed affidavit requirements for other cities, including cities with tourism as the primary economic sector, the affidavits were written for the signatory to acknowledge compliance with local requirements for building safety where inspections were not required, to acknowledge the provisions of the local ordinance (tax remittance, insurance, etc.), to certify compliance with notification requirements, to certify number of bedrooms and parking spaces, to acknowledge understanding of parking and trash requirements, and to agree to furnish "good neighbor" policy brochures in the rental property. Additional acknowledgements included hold harmless provisions and notification requirements for change of owner or operator. One city, Jersey City, New Jersey, included a section to confirm code compliance, specifically whether there had been a documented dangerous condition, whether noise ordinance violations had been issued in the past two years, whether any code violations had been issued and whether such violations had been properly abated, whether there were open construction permits for the property, whether the owner was current on all taxes and utility charges, and whether any fines had been issued and paid. Frequency/Concentration With Fayetteville's STIR ordinance, two caps were implemented. The first and highest -level is a citywide cap of 2% on the number of dwellings used as Type 2 STRs. While this cap did exclude STRs in zoning districts that permit hotels and motels by -right, the citywide cap number is dynamic and codified to reference the annual American Community Survey data or the U.S. Census. This allows the number of Type 2 STRs citywide to increase over time, but only as a percent of the total housing stock. The second cap is on attached dwellings. In a multi -family dwelling complex, either one unit or 10% of total units may be licensed as Type 2 rentals. The intent of this cap is to restrict the number of affordable units that may be removed from the long- term housing market. Some exemptions to these caps were allowed during the start-up period where existing operators were permitted to receive licenses without a conditional use permit application and public hearing. Other exemptions were adopted to allow attached residential units that are individually owned, such as in a horizontal property regime, to be licensed with no limitation on number within a building. Changing the current caps or implementing new ones can take many forms. Regarding the existing citywide cap, licensed and permitted Type 2 STRs currently fall well below the 2% limit. If a concern is the total number of properties dedicated fully to STR use in Fayetteville, the citywide cap could be reduced. However, it should be noted given the number of potential noncompliant properties, reducing the cap may prevent the current, full market of STRs to receive licensing and approval. Instead, or in addition to, the frequency or concentration of STRs could be managed by zoning district. This represents a finer grain and possibly more contextual means of implementing policies related to housing affordability and neighborhood stability. With data available on the number of addresses and their use as residential or nonresidential property in each zoning district, staff could enforce a limit on the number or percent of Type 2 rentals in a given zoning district. In a similar vein, some municipalities have limited STRs in residentially -zoned districts to those occupied by owners or long-term occupants. This would have the effect of banning Type 2 STRs on residentially -zoned properties in favor of Type 1 STRs. An additional, but more involved means of calibrating STR density is to set caps based on designated neighborhoods. Lacking established neighborhood boundaries in much of the city however, this may be more difficult to implement for Fayetteville. Similarly, banning or restricting STRs in some neighborhoods, but not others, presents an equity concern, where vocal neighborhoods could enjoy an exception while others do not. In lieu of regulating by zoning, some municipalities have adopted stricter ownership standards as a means of limiting non-resident or investment STR operators. While current data suggests Fayetteville's licensed STRs are not significantly concentrated among few operators, regulations can ensure this by limiting the number of units per owner, or limiting STR operation to those who can demonstrate Fayetteville residence. Residence can be demonstrated in a manner similar to that required by a school district, including provision of a utility bill, or by affidavit. Lastly, Council asked two specific questions regarding the current proposal to remove the requirement for Type 2 STRs to receive conditional use permit approval from the Planning Commission: What would be implemented in its place, and what manner of public notification can still be performed? 4 If the requirement for Planning Commission approval of Type 2 STRs is removed, staff envisions one of two options. First is for all STRs, Type 1 and Type 2, be reviewed solely through the business license process. This includes reviews for adequate insurance, ownership, HMR remittance documentation, life safety inspection, and contribution towards citywide and building caps. Alternatively, staff could continue to review Type 2 STRs as they were considered during the start-up period, where a conditional use permit was administratively issued with the business license, but could be reviewed and possibly revoked by the Planning Commission in instances of violation. Regarding public notification, it is possible to require mail notifications, sign posting, or both with a business license review. Unlike notification in association with a public hearing though, this will be advisory, and serve to alert nearby property owners of the presence of an STR nearby. This may have the effect of removing resident agency, but can address concerns about workload and the Planning Commission's expanded docket. Received by Jonathan Curth 10/27/22 at 12:24 pm CITY OF FAYETTEVILLE ARKANSAS MEETING OF NOVEMBER 1, 2022 TO: Mayor; Fayetteville City Council Susan North, Chief of Staff CITY COUNCIL MEMO FROM: Jonathan Curth, Development Services Director Britin Bostick, Long -Range Planning & Special Projects Manager DATE: October 26, 2022 SUBJECT: ADM-2022-0043: Administrative Item: (Amend UDC Chapter 118 - Applicability, Chapter 151 - Definitions, and Chapter 163 - Short -Term Rentals): Submitted by CITY OF FAYETTEVILLE STAFF. The request is an amendment to remove the conditional use permit requirement for type 2 short-term rentals and to repeal a sunset provision in Ordinance No. 6427. BACKGROUND: At their October 4th, 2022 meeting, the City Council considered a Planning Commission recommendation to reaffirm adoption of Fayetteville's short-term rental (STR) requirements. Within the Planning Commission's recommendation is a proposal for an amendment removing the requirement for conditional use permit approval from Type 2 STRs, which are those dwellings utilized primarily for short-term rental, not owner -occupancy or long-term rental. By contrast, Type 1 STRs are occupied by a permanent resident, with renting limited to no more than three months per year. At the October 18th Council meeting, staff solicited feedback and input from the Council on proactive compliance, increasing enforcement tools, modifying the density cap(s), the requirement for Planning Commission approval of Conditional Use Permits (CUP) for Type 2 STRs, and an extension of the sunset provision. The Council's feedback included a possible extension of the sunset provision for more time to review options and information, keeping the CUP requirement, additional assessment of the administrative aspects of compliance and enforcement, fee increases and more effective enforcement, an adjustment to the density cap for single-family dwellings, and a finer grain approach to the density or concentration of Type 2 STRs. DISCUSSION: Given the Council's input at the October 18 meeting, staff observed there are still three primary categories of concern regarding the Type 2 STRs and proposes the following with those three categories discussed at the October 18 meeting: compliance, enforcement, and frequency/concentration. Compliance Given the available information that suggests approximately 200 may be operating without the required licensing and approval, compliance achievement is estimated Mailing Address: 113 W. Mountain Street www.fayetteville-ar.gov Fayetteville, AR 72701 at two-thirds since the ordinance was passed in April 2020. Should the Council prefer to pursue proactive enforcement of compliance — that is, proactively searching for and contacting potential STR operators who are operating without the required license and approval, staff recommends extending the sunset provision for a minimum of 6 months so that staff can issue an RFP for third party services for compliance support in order to compare third party costs to the costs of additional staffing to support proactive compliance. This would be paired with enforcement as noted below. While requiring more time, this process would allow for a more thorough evaluation of resources needed for compliance, which could then be used to determine appropriate fees or penalties for non-compliance. When staff reviewed application and licensing fees for STRs in peer cities, including cities in Arkansas that regulate STRs, we found the following: Little Rock, AR (current ordinance being considered) • $150 administrative review fee for currently operating STR-1 • $100 annual inspection fee for STR-1 • $500 annual inspection fee for STR-2 Hot Springs, AR • The initial and subsequent annual fee/occupation tax shall be $50.00 per person, per year, based on the maximum overnight occupancy authorized by the short-term residential rental business license. For example, the initial and subsequent annual fee/occupation tax for a transient use site with a maximum authorized overnight occupancy of eight shall be $400.00. • Annual license fees are due on the first day of business each January. A ten percent late fee shall be assessed on March 1 st. A 30 percent late fee shall be assessed on April 1st. Any license that has not been renewed before May 1st shall be deemed to have lapsed. Should any short-term residential rental business license lapse, or not otherwise be renewed in the following calendar year, any subsequent application shall be considered as an initial application, and shall be subject to any and all requirements and conditions of an initial application. Conway, AR $100 annual application/renewal fee • Annual license renewal applications must be submitted by January 31 st. A ten percent late fee shall be assessed for renewal applications submitted after March 1st. A 30 percent late fee shall be assessed for renewal applications submitted after April 1st. Any license that has not been renewed before May 1st shall be deemed revoke if an application for renewal has not been made before May 1st Lawrence, KS • $17 annual application fee plus a $50 inspection fee. Ashville, NC • $208 application permit with $208 annual renewal Fort Collins, CO • $150 application permit with $100 annual renewal Enforcement Staff has consistently heard throughout this process that there is a substantial gap between the number of complaints received by staff regarding Type 2 STRs and the number of potential violations by Type 2 STR guests. Quickly available options to address this gap include promoting and communicating ways for the community to file a complaint with staff to document issues. Staff is also reviewing existing opportunities to leverage technology to connect police complaints with our STR records to understand how our existing reporting systems may be able to better inform staff on potential violations that are not currently captured via zoning violation complaints. Should the Council prefer to pursue proactive enforcement of code violations related to STRs, staff recommends extending the sunset provision for a minimum of 6 months so that staff can issue an RFP for third party services for enforcement support in order to compare third party costs to the costs of additional staffing to support proactive enforcement. This would be paired with compliance as noted above. While requiring more time, this process would allow for a more thorough evaluation of staff time needed for enforcement, which could then be used to determine appropriate fees or penalties. As a note, compliance and enforcement could be separated in the RFP to give the Council options on whether to pursue staff -supported compliance and enforcement or third -party support, or a combination of the two. When staff reviewed penalties for noncompliance regarding STRs in peer cities, including cities in Arkansas that regulate STRs, we found the following: Little Rock, AR (current ordinance being considered) • No financial penalty proposed Hot Springs, AR $1,000 for the first offense or violation • $2,000 for the second offense or violation • $4,000 for each subsequent offense or violation If a prohibited action continuous in respect to time, the fine or penalty for allowing the continuance shall be $500 for each day it is unlawfully continued In addition, the City Manager or his/her designee may also order the disconnection of municipal water service to any person, firm or corporation who violates any provision of the City's building and development codes. This includes, but is not limited to, failure to secure proper permits, failure to obtain required inspections and/or commencement of operations, business or structure occupancy prior to issuance of a certificate of occupancy. Conway, AR • No financial penalties in the ordinance Eureka Springs, AR • $250 per day fine for illegal operation with each 24 hour of rental being a separate violation Lawrence, KS • $500 minimum fine with adjudication and a maximum $2,500 for each unlawful act. • "Habitual Violators", or those operators having more than three license revocations, shall lose the right to operate short-term rentals in Lawrence. Ashville, NC • $500 per day fine for illegal operation (compared with $100 per day under general municipal penalty). Fort Collins, CO • $3,000 maximum fine under a general municipal penalty along with any additional penalties deemed appropriate to address specific short-term rental violations. • Revocation of a license renders a property ineligible for short-term rental for one year. Frequency/Concentration The initial recommendation to the Council by both staff and the Planning Commission was to remove the CUP requirement for Type 2 STRs. One aspect of that recommendation was the consistent finding by staff in favor of compatibility based on the criteria set forward for review of CUPs. Conditional use compatibility is currently framed to evaluate ingress and egress, parking, trash, utilities, screening, general compatibility with adjacent properties and general compatibility with the goals and intent of the city's plans, including land use and transportation plans. As in most cases residential dwellings meet these set criteria for evaluation, the Planning Commission has relied on input from neighbors to identify compatibility concerns when making their decisions on CUPs for Type 2 STRs. Given the Council's feedback and ongoing discussions with the Planning Ed Commission via their Long Range Planning Committee, staff proposes an alternate approach to the evaluation of compatibility from what was proposed in the September 16 memo: • Staff proposes that the CUP requirement could be kept for properties in residential zoning districts, or zoning districts that exclude commercial uses by right, as the primary compatibility concerns have been within residential neighborhoods. Properties in commercial or mixed -use zoning districts could either continue to have the CUP requirement if there remain concerns about the concentration of STRs being an issue of compatibility, or properties in commercial and mixed use zoning districts could only be required to obtain a business license, which would not include a public hearing and compatibility review. • Additionally, staff proposes to add language to UDC Sec. 163.18 — Short - Term Rentals to include concentration or proximity of Type 2 STRs in neighborhoods as a criteria for evaluating compatibility, with the intent to respond to concerns expressed by the community that a high concentration of Type 2 STRs within a neighborhood is more like the operation of a hotel or motel, which are not generally permitted in residential neighborhoods, and less like the traditional residential uses allowed by right. If the Council agrees, this would provide needed policy guidance to staff and the Planning Commission for evaluating compatibility with the review of a CUP. Additional criteria can include availability of on- or off-street parking as it relates to proposed number of bedrooms and the presence of pedestrian infrastructure such as sidewalks. RECEIVED DEC 2 7 20.21 _ NORTHWEST ARKAWS CITY CITY OF FRK50EILE ,kMOCMt tAAZC jC AFFIDAVIT OF PUBLICATION 1, Paola Lopez, 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 fast publication of said advertisement; and that said advertisement was published in the regular daily issues of said newspaper as stated below. City of Fayetteville -Clerks Office Ord. 6625 Was inserted in the Regular Edition on: December 19, 2022 Publication Charges: $145.60 Paola Lope �— Subscribed and sworn to before me This 2-1 day of , 2022. TAMMY RUSHER Nmary Publie-Ado. 'Hur"'ho Cowry ss11 ' Orrsnaki,121/03e20 My Cesmlaim, Sip,. fee 12,2028 Notary Public My Commission Expires: 241z 04 **NOTE** Please do not pay from Affidavit. Invoice will be sent. 151.01 DEFINITIONS AND §163.18 HOR?-iERM RENTALS: N ORDNANCE TO AMEND SECTION OF ORDNANCE 6427 To EXPEND HE SUNSET PROVISION FOR SHORT FROM RENTAL REGULATIONS TO ECEMRER 31, 2M3, ANDTO ECLARE AN EMERGENCY 'HEREAS, Me Lamer clause in Ordiwnce 127 which was passed on April ZIT, 2021, ovides List Me ordimnce "and all Widmeno to Cade sections ordained or acted by Nis ordinance shall aometically sunset, he repealed. minted, and become void twenty (20) oohs after the passage Will approval of is ordinance, unless prior a Mat doe, the ty Cowcil ammids this ordinance f peal Mis a., repeal Will termination aion";and HEREAS, the Ciry CWw,,I recommends finding Me smmel rare to slow for msiderstion ofarrenduWas f the Calls on term Wool regulations had to allow ewofr. We eYrar of shoeterm nlals for REYemperiod. DW, THEW COlJ, HE IT DROAINED P CT1v Y THE CITE COUNCIL A THE CrIV F onl TfEVILCiRy Co ANSAS: ow' aThothe Ciry Cowcneby tyof Fes th" Sle, An 2 of hereby *ermines Met aanon 2 ofOrdimnce 22 (°•rear Clause) be amended sa that ide S.. o and all or endmenb to rde Sectiomardaimdor automatically by sinwce 6427 shall a VOW son Di smoke, repesed and biome vos w llheeCiter , Zo'2J, unless prior to av date the City rwcilamends Misordiwceetond or noes arendi sethis sunset, repel and winoion anion. aion a That Me City Council of the City 'Fayetteville, Arkansas hereby terminres that this ardinwce should me ache Co'awe ahrt a r because wings esprishort semi rental ;d wista f expire will likely lead la ra,mRads wt subj operationysLife rmtss ratsubject ame Cay's life (tly sea nti, s wa iasurwce lid elis ts, such that w extension lie are clan 1 is naxssaft for the public we11 as the healed and safety of it ...I erresidents.Therefore.flos,ew City wad hereby declares an. hallnq roesuch Mat Maly ona shallbecome festive immedioely upon its passage and pmval. 15SED and APPROVED on IN6Q@2 ,proved'. Less lardaa Mayor tc Pax[aa si Clark Treawrer his publirafion was paid forty the City kao" e, Amoufdf City 45Faydoville, kwam. Amount paid. E 14560 6J5434 Dec 19.2022 1$1- 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: a\N fit?!' oneld Jordad .r - Kara Paxton,City Cleric Treasurer - ; :;,r ; • Page 2