PROPOSED SHORT TERM RENTAL (STR) ORDINANCE
Update: Since this was published, the STR proposed ordinance was reviewed by the Zoning Commission on February 6th (after hours of public testimony) who voted to recommend approval with the added language to add authorized bed and breakfast (B&Bs) establishments to the proposed distance limitations for Type 2 STRs. The Commission also voted to recommend revisiting the distance grid for Type 2 STRs, to consider a limitation on the amount of condo and apartments units in individual buildings which are used as Type 2 STRs, and to consider a limit on the number of sleeping areas and occupancies for Type 1 STRs.
The proposed ordinance will got to City Council B-Session for discussion and then City Council A-Session for consideration. The dates have not been announced for these meetings.
The STR proposed ordinance can be found at https://docsonline.sanantonio.gov/FileUploads/dsd/ShortTermRentalDRAFTOrdinance.pdf
History
In February 2017, then District 10 Council member Mike Gallagher submitted a Council Consideration Request to “review current code and research best practices regarding short term rentals.” The City’s Developmental Services Department (DSD) formed a Short Term Rental Task Force (STRTF) to study the issue and draft an ordinance. The Task Force was made of six representatives from five neighborhood association boards. The task force also included ten STR operators, a representative from Airbnb, two land use attorneys, staff, and various other interests. Since May 2017, the Task Force met eight times with DSD staff as well as five public general meetings held monthly in the evenings for broader input.
The Board of Adjustment met on January 8th and approved the ordinance with the added requirement that no Type 2 STRs be allowed a special exemption only if it “…will not alter the essential character of the district and location…” of the property. The Planning Commission approved the proposed ordinance including the requirement added by Board of Adjustment and also added a request that City Council explore prohibiting Type 2 STRs in designated Historic Districts.
Summary
Elements of the draft ordinance that are of particular interest to neighborhoods (Portions of this proposed ordinance at end of this document):
- A distinction is made between owner-occupied (Type 1) STRs and non-owner occupied properties used exclusively as STRs (Type 2).
- Much of the permitting (not all), fees, taxation, and safety requirements are the same for both types and both are permitted in any residential zone; however, a distinction is made in two important ways: Only Type 2 STRs have to appeal to the Board of Adjustments (BoA) for a variance and only Type 2s are subject to a density requirement (similar to the existing ordinance regarding B&Bs) although that is subject to appeal. Type 1 STRs have no such restrictions. All properties registered before the ordinance is adopted are “grandfathered” in terms of density; these properties will not be required to adhere to density standards but will count towards future density calculations.
Neighborhoods
Most of the inner loop neighborhoods have concerns about the proliferation of Type 2 STRs and seek regulations to guide future STR use. Neighborhoods have come under considerable duress with the rising unaffordability and unavailability of housing (both through ownership and rental). The proliferation of unregulated Short Term Rentals (STRs) deepens this problem by removing housing from the market and community resiliency is strained as long term housing become hotels.
The following recommendations are from the neighborhood representatives who served on the Short Term Rental Task Force:
“Having served on the Short Term Rental Task Force we are generally in favor of the ordinance that was drafted in addition to the recommendations made by both the Board of Adjustments and the Planning Commission with the caveat that we would still like to see language regarding density requirements for the Type 2 rentals strengthened. Although there may have been an attempt for the representation of neighborhoods to be equal to that of STR operators and other stakeholders we ended up with only six (6) neighborhood representatives on a Task Force of 25 members clearly putting us in the minority.
One of the strongest concerns that we hear from neighborhoods is that residential blocks are losing neighbors because of the slow but sure proliferation of STR rentals. While the density grid attempts to address this issue, it does not take into account the existence of B & B’s or Type 1 STRs resulting in a narrow view of what could become the accumulative effect on the residential use and quality of life of the neighborhood. As we did during the STR Task Force meetings, we continue to advocate for the inclusion of B&Bs in the calculation of distance as per Figure 399.06-1.
Our second recommendation regarding density goes to the number of STR units per lot. Our concern is that multi-family properties will be allowed to operate like hotels and reduce the number of long term rentals. We would support adding either a percentage or a fixed number of total units per lot to ensure the retention of affordable housing stock.”
Different neighborhoods present different issues in response to the proposed STR ordinance. Downtown neighborhoods like Beacon Hill for example, seem most concerned with the growth of Type 2 STRs, while a historic neighborhood like King William, who is also contending with B&Bs, have an added concern about Type 1 STRs. Most agree that the issue of density of Type 2s, as well as the process of seeking approval from BoA for Type 2s are a priority to protect neighborhoods and communities.
Schedule (Revised)
The next meetings are as follows:
- Jan. 25, 2018 – Community, Health, & Equity Committee Briefing and Action (dated stayed the same)
- Feb. 6, 2018 – Zoning Commission Action (dated changed)
- Feb. 8, 2018– City Council Action (date stayed the same)
The times, place, and agendas may be viewed at https://sanantonio.legistar.com/Calendar.aspx). There will be one more General Meeting for public input on January 31st from 5:30-7:00 pm at the DSD /Cliff Morton Building (1901 S. Alamo) before the draft ordinance goes to City Council for a vote on February 8th. A copy of the draft ordinance, the meeting schedules, a history of public comments and other details and information are available at http://www.sanantonio.gov/DSD/Resources/Codes#176642678-short-term-rental.