Springfield City Council approves regulations on short-term rentals

(From the City of Springfield)

City Council approved regulations and definitions for short-term rental properties in the city of Springfield at their regular meeting Jan. 28, 2019.

Hosts who rent out their property in the city limits of Springfield for less than 30 days will need to have a business license and comply with other short-term rental regulations aimed at protecting the safety, character and quality of life in Springfield neighborhoods.

All types need to apply for a business license and meet certain requirements. Short-term rental type 2s have a 30-day grace period from density restrictions. This grace period for short-term rental type 2 applications from the density limitations will conclude at the end of the business day on February 27, 2019. Type 2 owners who fail to apply by February 27 risk losing the ability to operate due to the density restrictions.

Short-term type 2s are categorized as a non-owner-occupied residence or an owner-occupied primary residence, legal accessory apartment or historic carriage house that is rented for more than 95 days in a calendar year when the owner is absent from the premises.

The Zoning Ordinance defines a short-term rental as the rental of an entire dwelling, or any portion thereof, for a period of not more than 30 days, where the owner is engaged in a contract for the rental of that specific dwelling, or any portion thereof. Short-term rentals are further categorized as Type 1, 2 or 3, depending on the zoning district of the property and whether it is owner-occupied.

Type 1

• Allowed in the Single-Family Residential (R-SF) or Residential Townhouse (R-TH) districts.

• For owner-occupied primary residences or historic carriage houses as allowed in the Zoning Ordinance

• Cannot be rented for more than 95 days in a calendar year when the owner is absent from the premise.

• Must obtain an annual business license.

• Must provide an affidavit certifying that the primary residence, legal accessory apartment or historic carriage house will not be rented for more than 95 days in a calendar year when the owner is absent from the premise.

• No density restrictions.

Type 2

• Allowed in the R-SF or R-TH districts.

• For non-owner-occupied residence or an owner-occupied primary residence, legal accessory apartment or historic carriage house that is rented for more than 95 days in a calendar year when the owner is absent from the premise.

• No limitation on the number of days that it can be rented; however, all Type 2’s will require a Short-Term Rental Type 2 permit. The permit requires a neighborhood meeting and at least 55% of adjacent property owners to give consent.

• Must obtain an annual business license and a certificate of occupancy.

• Density Limitations: A Short-Term Rental Type 2 shall be limited to no more than one STR Type 2 or bed and breakfast per eight residential structures on the block face in R-SF or R-TH districts. No STR Type 2 shall be permitted on a block face with fewer than four residential structures unless an appeal is granted by City Council (i.e. 1-3: no STR; 4-8: 1 STR; 9-15: 1 STR; 16-23: 2 STR). For purposes of this section, block face shall be defined as one side of a street, from one intersection to the next, not including alleys. Residential structures’ block face shall be determined by the mailing address assigned to each.

Type 3

• Allowed in all other zoning districts.

• No residency requirement or limitations on the number of days that it can be rented.

• No more than two dwelling units within a premise can be rented.

• Must obtain an annual business license and a certificate of occupancy.

• No density restrictions.

General provisions

• All short-term rental properties shall comply with the residential occupancy requirements in the Zoning Ordinance, which requires that a dwelling unit may not be occupied by more than three unrelated persons in a R-SF or R-TH zoning district or four unrelated persons in a Low-Density Multi-Family Residential (R-LD), Medium-Density Multi-Family Residential (R-MD) or High-Density Multi-Family Residential (R-HD) districts.

• Short-term rental Type 2 & 3 properties must obtain and continually maintain a service agent business license. Licensing fees are based on gross receipts and typically range from $25 per year ($0-$10,000 in annual gross receipts) to $105 per year ($200,000 in annual gross receipts). Businesses that collect more than $200,000 in annual gross receipts are charged an additional 25 cents per $1,000. New applicants will be asked to estimate their gross receipts for the upcoming year. The figures can be adjusted accordingly when the business renews the following year, according to Licensing Supervisor Lori Stubbeman.

If an annual business license is not continually obtained, the owner/business risks losing the ability to operate due to the density restrictions in Type 2 and maximum dwellings in Type 3.

• Applicants filing an application for a Short-Term Rental Type 2 within the first thirty (30) days following passage of this ordinance shall not be subject to the density limitations set forth in 36-472(2)(d)(1). Applications received after this initial period will be subject to this density.

Application forms and information will be added on the City’s website as they become available.