This week's update covers new laws, permit requirements, and regulation news for hosts in:

• Maui, Hawaii

• Big Rapids, Michigan 

• Jackson, Wyoming

• Sedona, Arizona 

• Hermosa Beach, California

• Peoria, Illinois

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Maui

Hawaii Governor Josh Green is considering a drastic measure to address Maui's housing crisis, following the August Lahaina wildfires. With over 6,000 residents still living in hotels, Green has threatened to impose a moratorium on all short-term rentals on Maui in January if the housing needs of these displaced residents are not met. The governor and Maui Mayor Richard Bissen had earlier proposed tax incentives for owners of Maui's 12,000 short-term rentals to convert them into long-term housing. While some owners are open to this idea, others resist being told how to use their properties. Green expressed his willingness to shut down the short-term rental industry if 3,000 units don't volunteer for the program, acknowledging potential litigation risks. The next month is crucial to determine the outcome, with the possibility of a moratorium affecting future reservations and the industry's ability to rent to visitors. Additionally, families who lost loved ones in the fire might receive a $1.5 million payout in February as damages.

Big Rapids

The Big Rapids city commission is set to review a proposed update to the zoning ordinance aimed at regulating short-term rentals. The city’s Community Development Director noted that the planning commission has dedicated four meetings to crafting this ordinance after examining various languages and zoning maps. A public hearing saw some residents favoring the ordinance with certain restrictions, but no opposition was reported. The ordinance allows short-term rentals in all residential zones, with specific stipulations for different districts. Key rules include a maximum 28-day stay, notification to neighbors within 300 feet, and adherence to housing and zoning regulations. In R1 and RP districts, rentals are limited to one occupant and must be owner-occupied. In RR, R2, R3, and C2 districts, occupancy is capped at two people per bedroom, with a maximum of 10 people per house. The ordinance also addresses the management of rentals by non-local owners.

Jackson

The Town of Jackson has announced new regulations for short-term rentals, effective January 1, 2024. These updates allow homes in residential zones to be rented for less than 30 days. Operators must obtain an annual basic use permit from the Planning Department and a business license from the Finance Department. The rules include a limit of three short-term rentals per housing unit each year, with a total of 60 days of rental allowed. Operators must notify neighbors annually. Homeowners Associations must approve short-term rentals for these rules to apply. Violations will result in a five-year ban on short-term renting. The new regulations aim to address community concerns about noise, parking, and community character related to short-term rentals. These guidelines will not affect rentals in the lodging overlay or resort district.

Sedona

Sedona is addressing its affordable housing crisis by incentivizing short-term rental owners to convert their properties into long-term housing for local workers. The city's Rent Local Program, launched last year, offers owners cash incentives ranging from $6,000 to $10,000 for shifting to long-term rentals with at least a one-year lease for locals working 30 hours or more in the city. Despite the program's benefits, it received only a few applicants, with some owners unsure about transitioning from Airbnb operations to traditional landlord roles. Sedona plans to rework the program in 2024 to increase participation, potentially including property management assistance. The initiative aims to provide better housing options for local workers amidst rising housing costs, with the median home price in Sedona exceeding $1.2 million. The revised program will be presented to the city council next year, continuing until the pilot's funds are exhausted.

Hermosa Beach

The Hermosa Beach City Council is tightening its ban on short-term vacation rentals (STVRs) in residential neighborhoods. Despite STVRs being illegal in these areas, around 150 are currently advertised on short-term rental platforms. The city's Community Development Director, Carrie Tai, informed the council that enforcing the ban has been challenging due to the lack of addresses in advertisements and nuanced language that often conflicts with the actual rental lengths. To strengthen the ordinance, the council unanimously agreed to add language stating that in cases of conflicting information in an advertisement, the shorter rental period will be considered the valid one. Hermosa Beach has an average daily STVR rate of $430, with some rentals going up to $2,000 a day. The city has hired Granicus Host Compliance to help locate illegal STVRs using AI and big data, resulting in 10 to 12 citations per month. STVRs are legal in Hermosa's commercial districts, where they pay a 14% Transient Occupancy Tax and an annual permit fee.

Peoria

The Peoria City Council has postponed discussions on amending short-term rental (STR) regulations until January. The proposed changes include reducing the cap on special-use STRs in neighborhoods from 3% in a quarter-mile radius to 1% in a half-mile radius, with a minimum distance of 1,500 feet between each special-use STR. A council member suggested making all STRs permitted uses, which would not require city council approval but would be subject to the new restrictions. Currently, STRs without the owner present need special council approval. At-large council member John Kelly supported expanding permitted uses, while Second District council member Chuck Grayeb opposed it, viewing it as a threat to neighborhood control. The city has only received two complaints about STRs since passing its original ordinance. The council's final decision will be drafted into an ordinance, reviewed by the Planning and Zoning Commission, and then returned to the council for a final vote.