AGENDA CAPTION:
Title
Consider approval of Ordinance 2024-14, on the second of two readings, amending Chapter 34, Article 7, Rental Property Standards, of the San Marcos City Code by updating the regulations governing Short-Term Rentals; providing a savings clause; providing for the repeal of conflicting ordinances; and providing an effective date.
Body
Meeting date: April 16, 2024
Department: Neighborhood Enhancement
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Background Information:
Staff received direction from council to proceed with updating Chapter 34 of the San Marcos City Code relating to Short Term Rentals (STR) on November 3, 2021.
Staff held public meetings.
• Meeting with neighborhoods January 5, 2022
• Meeting with owners of STRs January 12, 2022
• CONA January 17, 2022
• Neighborhood Commission January 19, 2022
• Neighborhood Commission November 15, 2023 (Agreed to be appeal board)
• Neighborhood Commission January 17, 2024
The recommended changes to the Short Term Rental ordinance are based on staff recommendations based on input received and industry best practices.
Information was provided to City Council at the April 4th, 2023 Executive Session regarding recent court rulings regarding short term rentals and the ability to have ordinances that required owner occupation. Based on this, the section requiring proof that the home is the primary residence of the applicant has been removed.
The section banning the use of the property for parties (or gatherings) has been removed based on Texas Court of Appeals, Third District ruling. The courts held that banning assemblies or prohibiting more than a certain number of persons to gather is unconstitutional.
The updated ordinance improves our ability to keep issues arising from short term rentals to a minimum and provides consequences for short term rentals that do not operate in a manner that disrupt neighborhoods.
A presentation was given at the January 30th, 2024 Council Workshop.
The following changes have been made to the ordinance since it was presented at the workshop. These changes were based on comments and suggestions made by City Council or improvements determined by staff. Some wording was also cleaned up.
• Type - The description of what a type 1 and type 2 was included in the definitions. A type 1 includes zoning districts that are not specifically designated single family, but where the use of the district is primarily residential. Wording was included on how the determination will be made.
• Occupancy - Occupancy in both the definitions and ordinance were changed to the requirements of the International Fire Code (IFC) adopted by the City of San Marcos. This includes for both sleeping and congregation. This will also be a requirement that must be provided to the renter. (Examples of limits based on IFC. A 2,000 square foot house would be allowed to have 10 maximum and a 3,000 square foot house would be allowed to have 15 maximum individuals.)
• Public information - The City would provide a list of all registered short term rentals on our website. This would include the contact information for the designated contact.
• Suspensions - If a permit is suspended no new reservations would be allowed to be taken. Any current reservations would be allowed to be honored.
• Linear was added to the 660 feet.
The attached document “Amended Ordinance (changes since first reading)” shows changes that will be requested at second reading. Staff will provide slide for amendments to be made.
City Council received an email from Nick Martinez of Airbnb. He had two concerns.
1. Remove the 660 foot density limitation.
2. Remove data sharing requirements.
I have spoken with Mr. Martinez and explained that his suggestion of a Conditional Use Permit for homes closer than the 660 feet would place stronger limitations instead of decreasing them and he understood and agreed with the current language. I also explained that language was added that information would only be upon request to reconcile Hotel Occupancy Tax submittal issues. He agreed that this language was appropriate.
Council Committee, Board/Commission Action:
The Neighborhood Commission reviewed and approved the recommended changes to the ordinance.
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Recommendation:
Staff recommends approval of changes to the definitions and ordinance.