| ITEM #: 1. DATE: 07/18/2022 AI #:1004 |
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CITY COUNCIL ACTION REPORT
| SUBJECT: | SHORT-TERM RENTAL REGULATIONS |
| STAFF PRESENTER(S): | Ginna Carico, Governmental Relations Manager |
OTHER PRESENTER(S):
Jay Karlovich, Assistant City Attorney
Summary
As Goodyear continues to grow, the number of short-term rentals (STRs) listed on online platforms such as Vacation Rental by Owner (VRBO) and Air Bed & Breakfast (Airbnb) will increase. This work session is intended to provide an overview of the legislative history and new SB 1168 which will become an effective/new STR law on September 24, 2022. (Ginna Carico, Governmental Relations Manager)
FISCAL IMPACT
Pending Council direction, there is no fiscal impact at this time.
BACKGROUND AND PREVIOUS ACTIONS
In 2016, the Arizona Legislature passed its initial STR law which essentially preempted municipalities from regulating or restricting STRs, with the exception of, enforcing property public health and safety regulations.
In 2019, the Arizona Legislature passed a revised STR law requiring STR owners to include a lodging tax license number in advertisements and prohibiting STRs from hosting non-residential uses/events. This revised law also allowed cities to require STR owners to provide contact information for someone who can respond to complaints about the STR in a timely manner.
At the February 28, 2022, Goodyear Council Work Session Meeting, City staff introduced a draft STR Ordinance which included:
On July 6, 2022, the Governor signed a new revised STR law that will become legally effective on September 24, 2022.
This new STR law allows for:
In 2019, the Arizona Legislature passed a revised STR law requiring STR owners to include a lodging tax license number in advertisements and prohibiting STRs from hosting non-residential uses/events. This revised law also allowed cities to require STR owners to provide contact information for someone who can respond to complaints about the STR in a timely manner.
At the February 28, 2022, Goodyear Council Work Session Meeting, City staff introduced a draft STR Ordinance which included:
- A requirement for a 1-hour Emergency Contact Response;
- A requirement for a 24-hour Complaint Contact Response;
- A requirement for STRs to comply with public health, safety, sanitation, property tax registration, and property maintenance laws; and
- A requirement that STRs not be used for non-residential uses.
- A requirement that STRs may not be used to house sex offenders, operate, or maintain a sober living home, sell illegal drugs, or liquor or allow adult-oriented business activities.
On July 6, 2022, the Governor signed a new revised STR law that will become legally effective on September 24, 2022.
This new STR law allows for:
- Permitting or License Regulation Process
- Emergency Contact Requirements and Penalties
- Neighborhood Notification
- Verified Violations and Penalties
- License/Permit Suspension up to 12 months if needed
- Sex Offender Background Checks
- Liability Insurance Requirements
- License Number Displayed on Advertisements
STAFF ANALYSIS
Staff recommends the City's new STR Ordinance be prepared to include all of the above provisions that comply with the new State STR law.