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  • Weekly Regulation Roundup: San Antonio, Los Angeles, Asheville, Wilmington, Lakewood, Wellington

Weekly Regulation Roundup: San Antonio, Los Angeles, Asheville, Wilmington, Lakewood, Wellington

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

  • San Antonio, Texas

  • Los Angeles, California

  • Asheville, North Carolina

  • Wilmington, Vermont 

  • Lakewood, Washington 

  • Wellington, Florida

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San Antonio

San Antonio, Texas

San Antonio officials are looking to increase enforcement of the city's short-term rental ordinance to crack down on owners operating without permits and not paying hotel occupancy taxes. About 70% of operators currently have permits, leaving potentially 1,500 that don't. Neighborhood groups want stricter rules to limit rentals, citing noise and parking issues. Permitted owners also want a crackdown, as illegal rentals hurt their business. The city has been revoking more permits lately for violations instead of just warnings. A new 20-member task force will make recommendations in 6 months on amending the ordinance, including higher permit fees, stricter neighborhood caps, and increased enforcement. Ideas include requiring a larger distance between rentals, increasing permit revocation periods, and lowering the percentage cap of non-owner occupied rentals allowed per block.

Los Angeles

Los Angeles, California

The Los Angeles City Council voted 14-0 to draft an ordinance requiring new hotels to replace any housing lost in development. In a surprising last-minute addition, the ordinance also increases oversight of short-term rentals through new permitting requirements. Short-term rental hosts will soon need to obtain police permits involving background checks and possible public hearings to receive a short-term rental license. Many hosts opposed the motion, concerned about bureaucracy and fees and being blinded by the fact that a backroom deal between the city and hotel developers added short-term rentals to the ordinance. The ordinance aims to increase housing supply, but some council members expressed concern it could dissuade home sharing and wanted to ensure all stakeholders help craft the final ordinance. It remains to be seen if any additional provisions will be added or removed before the bill is signed. Once the bill has been signed, hosts can continue operating for up to six months before an application is required.

Asheville

Asheville, North Carolina

Asheville city council members said citizens allege some homeowners are illegally renting homes for short-term stays despite a ban on rentals under 30 days. At a recent council meeting,  city council members explained the difficulty in enforcing the short-term rental ban as the city can no longer charge annual permit fees after a court ruling. The city now only charges a one-time fee. There are 176 grandfathered short-term rentals, and 861 permitted homestays (rooms in homes). The department overseeing this operation lacks funds to investigate host violations. Although the city won two $15k cases this year against illegal short-term rental hosts, city council members believe many more violate the ban, impacting housing inventory amid a shortage. One council member said zoning is their primary enforcement tool but questioned if more could be done. Currently, Asheville is exploring other options for curbing illegal short-term rentals.

Wilmington

Wilmington, Vermont

The Wilmington Planning Commission approved a proposal 4-1 to send zoning amendments to the Select Board that would loosen restrictions on short-term rentals (STRs) in residential districts. The amendments would allow STRs with four or fewer bedrooms as a permitted use with zoning approval and 5+ bedrooms as a conditional use needing Development Review Board approval. Commission Chair John Lebron opposed, hoping the Select Board would correct this "big change." Some commissioners noted the Select Board could still implement other regulations like a registry system or limit on STRs per owner. The proposal aims to formalize the current status quo of approximately 500 illegal STRs. The commission proposed more restrictive regulations in October, but this new proposal provides a pathway for more legal STRs. The Select Board will hold a public hearing before adopting any amendments.

Lakewood

Lakewood, Washington

The Lakewood City Council is considering allowing short-term rentals in accessory dwelling units (ADUs). City staff have concerns this could worsen the housing crisis, impact neighbors, and cause parking issues. The Planning Commission recommended allowing short-term ADU rentals, arguing it offers returns for property owners and brings housing to the market. If approved, new rules on short-term rentals and ADUs could take effect in December.

Wellington

Wellington, Florida

The Village of Wellington in Florida recently passed stricter regulations on short-term rentals in response to residents' complaints about noise and parking. The new rules hold homeowners responsible for their renters' actions, require a $600 permit fee, and allow faster action to suspend or revoke permits for violations like underage drinking. The changes come amid a broader national crackdown on short-term rentals, with cities trying to limit their negative impacts like housing shortages while home-sharing companies face growing criticism. Wellington aims to retain discretion in enforcement while streamlining the process to punish repeat offenders, though some council members raised concerns about fairness to owners.