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HomeMy WebLinkAbout2013-01-24 Housing PACKET Ashland Housing Commission Regular Meeting Agenda January 24, 2013: 4:00 – 5:45pm Lithia Room – 51 Winburn Way 1. (4:00) Approval of Minutes (5 min) October 22, 2012 2. (4:05) Public Forum (5 min) 3.(4:10)Update on fundraising efforts of Ashland Emergency Food Bank (15 min) Ward Wilson, Food Bank Board Member-Capital Campaign Organizer 4.(4:25) Unified Land Use Code Update (25 min) Maria Harris, Long Range Planner 5.(4:50)Vacation Rental Discussion and Recommendation (20 min) 6. (5:10) Liaison Reports discussion (15 min) Liaison Reports Council(Carol Voisin) Staff(Linda Reid) General Announcements 8.(5:25)2012Goal Review and Approval (15 min) th 9.(5:40)February 27 2013 MeetingAgenda Items Commissioner items suggested(5 min) Quorum Check – Commissioners not available to attend upcoming regular meetings should declare their expected absence. 10.(5.45)Upcoming Events and Meetings Next Housing Commission Regular Meeting 4:00-5:45 PM; February 27, 2013 11. (5:45) Adjournment In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the Community Development office at 541-488-5305 (TTY phone is 1-800-735-2900). Notification 48 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to the meeting(28 CFR 35.102-35.104 ADA Title 1). ASHLAND HOUSING COMMISSION DRAFT MINUTES October 24, 2012 CALL TO ORDER ChairRegina Ayars called the meeting to order at 4:10 p.m. at the Council Chambers located at 1175 East Main St. Ashland, OR 97520. Commissioners Present:Council Liaison Regina AyarsCarol Voisin Ben Scott Barb BarasaStaff Present: Evan LasleyLinda Reid, Housing Specialist Carolyn Schwendener, absent Commissioners Absent: Michael Gutman Brett Ainsworth APPROVAL OF MINUTES Lasley/Scott m/s to approve the minutes of the September 26, 2012 regular Housing Commission meeting. Voice Vote: All Ayes; minutes were approved as presented. PUBLIC FORUM No one spoke VACATION RENTAL DISCUSSION Bill Molnar, Community Development Director was present to brief the Commission on an issue that has come before the City Council. Molnar asked the question “What impact does the way the City treats vacation rentals in the community have on our housing inventory?” Council has directed staff to look at possible changes to the zoning. Because there is an impact on housing the Council would like the Housing Commission to participate and weigh in on this discussion. The purpose of this presentation is to give the Housing Commission some background. Short term accommodations traditionally are the motels, hotels, and bed and breakfasts where a guest can stay less than 30 days. Ashland has prohibited the renting out of homes in single family residential neighborhoods on a short term basis. It is prohibited by the land use ordinance. As part of the Community Development Department we also address Code Compliance as it relates to zoning violations, stated Molnar. We have seen an increase in activity not only from complaints but from looking at internet sites. The department took an aggressive compliance effort in the summer and sent out forty to fifty code compliance letters to those properties they were aware of that did not have a land use permit and were not paying transient occupancy tax. This created some frustration from those individuals bringing about the question; should we create some flexibility with the zoning code? There is also the issue of fairness for those who follow the guidelines and rules. Molnar stated the key issues for future discussion are: What is the impact on available housing in the community due to this circumstance? Does this increase the cost of housing? Ultimately these homes are taken out of the rental market. 1 The long term history in Ashland as a community has been the concern about growing outward. The desire has been to maintain a compact community that promotes alternative modes of transportation. The City has taken a position in the region where they adopted the City Urban Growth boundary (UGB) thirty years ago (1981) being one of the few cities if not the only city in the state who has never increased the UGB. The City chose not to identify future areas to expand the UGB but offered to develop more innovative land use strategies to accommodate future business, employment and housing over the next twenty years using the current land base. Molnar explained that the next step will be, after the first of the year the staff will know what direction the Planning Commission would like them to take. Ultimately before they write any specific ordinance language staff will bring suggestions from both the Planning Commission and the Housing Commission back to the Council. The Commissioners asked for a profile of the rental houses. They were curious if people are renting high end housing or inexpensive housing. Molnar conveyed that the preliminary internet searches for code compliance showed rentals for smaller inexpensive homes within walking distance to the downtown. The proximity to downtown seemed to out weight the amenities that might be offered. Abi Maghamfar owner of Abigail’s Bed & Breakfast (B&B) located on North Main Street spoke. Maghamfar explained that he understands the situation that has arisen regarding the problem with illegal units being rented. Maghamfar stated he is just looking for a fairness level playing field. As long as the houses operating as a vacation rental are permitted properly and provide adequate insurance and safety features just the way Bed & Breakfast and hotels offer he has no concern. Competition is a good thing as long as it’s an even and fair playing field. Though forty to fifty letters went out to properties that the Planning Department was aware of, Maghamfar stated there is evidence that as many as one hundred and fifty houses are actively being rented for vacation rentals. With that number of units being out of the short term housing market it is his opinion it does make a difference to the City’s housing inventory. These are homes that would otherwise be available to those wishing to live in Ashland. People coming into town do have a place to stay as the Bed & Breakfasts in town are not 100% full. Ellen Campbell, Campbell addressed the question of what the typical profile of the rental houses is. She stated that they are not just second homes for people it’s an entire range of scenarios. In the last twelve years the industry has seen an eighteen percent decrease in the number of B&B’s that are operating in Ashland. Though it would make sense that the current B&B’s would absorb that increase in occupancy the opposite has happened. In the last ten years the occupancy has either been stable or declined due to the increase of illegal units in town. Campbell commented that it might be tempting for the City to allow these additional vacation rentals in order to receive the Transient Occupancy Tax. She believes that the City could in fact receive an increase in tax by not allowing those illegal rentals which would increase the occupancy of the legal units. PROPOSED CHANGES TO UNIFORM POLICIES FOR COMMISSIONS AND COMMITTEES DISCUSSION AND RECOMMENDATION Reid pointed out that City Recorder, Barbara Christianson and City Attorney Dave Lowman took the information provided to them by the Commissions and created three options for the Commissioners to vote between. After the discussion the Commissioners made the following recommendation. Lasley/Scott m/s to recommend Section 2.10.025 of Option Two with Section 2.10.040 of Option Three and Section 2.10.050 of Option Three with the definition of excused absence the same as defined adding the following (“An excused absence is defined as an urgent personal or job related matter or a matter where the member has no control over their ability to attend a meeting.”) Ayars made an amendment to the motion adding the following sentence after the definition of excused absence to say “also a Commissioner is allowed a single annual excused absence for a vacation” The Commissioners’ voted on the amendment. Voice Vote: All Ayes, amendment passed unanimously The Commissioners voted on the original motion. Voice Vote: All Ayes. Motion passed unanimously to include the amendment 2 COMMISSIONER AND SOU LIAISON RECRUITMENT DISCUSSION Lasley announced the Commission will soon have a new SOU Liaison. He spoke with the President of ASSOU and there is a freshman who is interested in the position. Lasley sent the person an email for confirmation and the Commission would like to have them on board by the January meeting. The Commission is down one member and each Commissioner agreed to make an effort to try and recruit someone as soon as possible. LIAISON REPORTS Council – Voisin acknowledged that Reid did an excellent job presenting the Fair Housing Ordinance to the City Council. Staff – Reid reported the Fair Housing Ordinance passed first reading at Council and will be going to second reading on the sixth of November along with the first reading of the Housing Needs Analysis. The Fair Housing Council of Oregon has hired a three quarter time person, Louise Dix, to serve the Jackson, Josephine, Curry, Coos and Klamath regions. She will be stationed at ACCESS and is expected to be down next month. Ms Dix recently left the city of Gresham though prior to that she was the CDBG administrator for the City of Medford. She was on the Medford Housing Commission, Chair of the Homeless task force as well as the Chair of the Southern Oregon Housing Resource Center. Reid gave an update from the Homeless Steering Committee. A joint meeting was held with members of the faith based community. Good things came out of the meeting; Trinity Episcopal announced they will add a weekly shelter night on Wednesdays starting Thanksgiving week. The Universal Unitarian Church is considering also hosting a weekly shelter night; they are continuing to take up a special collection to provide materials like sleeping bags. A shelter training is being organized. thth General Announcements – The Council meeting may change from November 6 to the 7 due to the general election. Councilman Chapman has resigned and there is a process for appointing a new Council person. The City has sixty days to appoint a new person. GOAL SETTING RETREAT AGENDA DISCUSSION Voisin will not attend the goal setting retreat. She did encourage the Commissioners to send their suggested goals to the Council no later than January. Suggested topics were: Co-housing ordinances and zoning issues. More and more seniors are considering co-housing experiences. Review the recommendations in the Housing Needs Analysis. Review the 2012 goals to see what has been accomplished and what may need to carry over to 2013. A more in depth look at the Housing Trust Fund. Still need a revenue source. Dot Exercise/Goal prioritization Discussion of Fair housing for students UPCOMING EVENTS AND MEETINGS th Normal Avenue Neighborhood Design Workshop – October 25, Ashland Middle School 7:00 – 9:00 P.M. th Public Hearing – First Reading Housing Needs Analysis – November 6, City Council Chambers 7:00 – 10:00 P.M. rd Discussion of policy changes for commissions and committees – December 3 City Council Study Session, Community Development Building 5:30-7:00 P.M. Next Meeting-Housing Commission Retreat th 9:00-12:00 PM; November 17 (Lunch included from 12:00-1:00) ADJOURNMENT - The meeting was adjourned at 5:50 p.m. Respectfully submitted by Carolyn Schwendener 3 Memo DATE: January 23, 2013 TO: Ashland Housing Commission FROM: Maria Harris, Planning Manager RE: Update on Unified Land Use Ordinance Project SUMMARY The Planning Commission has reviewed a substantial amount of the first draft of the Unified Land Use Ordinance (see attached Ordinance Outline). Several amendments the Housing Commission had previously expressed interest in were reviewed as part of this work, and are detailed below. Staff has also included several other items related to lot size and dimensions that may be of interest to the Commission. PROPOSED AMENDMENTS QUESTION: Does the Housing Commission have comments on the proposed changes to the land use ordinance? BACKGROUND: The purpose of the Unified Land Use Ordinance project is to combine the land use ordinance and related standards into one user-friendly document with improved organization, wording, formatting and graphics. The project also includes an evaluation of the planning application process and green development incentives, and preparation of code amendment options addressing these areas for consideration. SUMMARY OF AMENDMENTS: In the sections of the Unified Land Use Ordinance reviewed by the Planning Commission thus far, there are several potential amendments related to housing issues. These items are summarized below, and the individual pages of the draft ordinance are attached. The complete sections of code along with memos highlighting proposed amendments and meeting minutes can be viewed at the project web page in the Planning Commission packet materials www.ashland.or.us/unifiedcode . Accessory Residential Units (ARUs) ARUs currently require a conditional use permit in the single-family zones (R-1 and RR), and a site review (but not a conditional use permit) in the multi-family zones (R-2 and R-3). The proposed amendment discussed by the Planning Commission is to make ARUs a permitted use in all zones, and removing the conditional use permit requirement. The proposed change makes ARUs a permitted use in the four zoning districts they are currently allowed in (R-1, RR, R-2 and R-3). A site review planning approval would continue to be required to address parking Page 2 of 3 requirements, landscaping and screening, building orientation and design, but the more discretionary conditional use permit process would be eliminated in the single-family zones. Manufactured Homes on Individual Lots Several items were revised for consistency with the Oregon Revised Statutes (ORS) regarding placement of manufactured homes on individual lots. The proposed amendments include the deletion of the requirement that a home be 28 feet in width, a change in wording for exterior building materials and the maximum height above grade. Additionally, the requirement to have a garage or storage building is proposed to be deleted. The ORS does allow local jurisdictions to require a garage to be constructed with manufactured homes on individual lots. However, the Planning Commission concurred with the Housing Commission regarding the cost of a garage offsetting the monetary savings gained by using a manufactured home, and using the same requirements as single-family homes which in Ashland are to provide the required number of off-street parking spaces, but not requiring a garage or carport. Manufactured Housing Developments Amendments were recommended to the setback requirements for consistency with ORS requirements for manufactured home parks. Currently, the code requires a minimum of 20 feet from the street or any exterior property line while the ORS requires a minimum of five feet from a property boundary line. For exterior property lines, staff recommends using the same approach as used in Performance Standards Subdivisions which requires setbacks along the perimeter of the development to have the same setback as required in the parent zone. The second issue is the interior side and rear yard setbacks. Currently, the code requires a minimum of six feet and a minimum separation between units of 12 feet. In contrast, the ORS requires a minimum of ten feet between units. Affordable Housing Density Bonus For housing projects in the multi-family zones (R-2 and R-3) and for subdivisions developed under the Performance Standards Options (Chapter 18.88), the current ordinance allows for an equivalent density bonus for every percent of units that are affordable. The 2006 Land Use Ordinance Review recommends doubling the density bonus for affordable housing to provide a greater incentive for affordability. Two items were suggested by Planning Commissioners for consideration regarding the affordable housing density bonus. First, it was suggested that staff solicit input from the development community to get feedback as whether the increase in the density bonus would provide a greater incentive to provide affordable units. Second, concern was expressed regarding the size of the affordable units in projects that voluntarily utilize the density bonus, such as multi-family developments and subdivisions that do not involve a zone change or annexation. (Currently, zone changes and annexations are required to provide affordable units in a variety of unit sizes, of comparable building materials and distributed throughout the project in accordance with 18.106.030.G.) As a result, the suggestion was to consider using the affordable housing requirements that are now limited to zone changes and annexations for projects that voluntarily use the density bonus. DEPT. OF COMMUNITY DEVELOPMENT Tel: 541-488-5305 20 E. Main Street Fax: 541-552-2050 Ashland, Oregon 97520 TTY: 800-735-2900 www.ashland.or.us Page 3 of 3 Corner Lots in R-1 Zone Currently, the code requires corner lots to have a minimum width of 60 feet, and a minimum lot size of 6,000 square feet. Per the 2006 Land Use Ordinance Review recommendation, the proposed amendment is to change the requirement for corner lots to the same for interior lots minimum width of 50 feet and minimum lot size of 5,000 square feet. Minimum Lot Depth in R-1 Zone Currently, the code requires lots in the R-1 zone to have a minimum depth of 80 feet. Per the 2006 Land Use Ordinance Review recommendation, the proposed amendment is to reduce the minimum lot depth to match the minimum lot width. Front Porch Setback in R-1 Zone Currently, the code requires lots in the R-1 zone to be setback a minimum of eight feet from the property line. In contrast, the requirement in the R-2 and R-3 zones is ten feet. Per the 2006 Land Use Ordinance Review recommendation, the proposed amendment is to make the setback ten feet uniformly across all of the zones. Ten feet was chosen because it is the standard width of public utility easements that run along the front of properties. Cottage Housing or Pocket Neighborhoods Though there is no clear or set definition for this type of development, the terms cottage housing or pocket neighborhoods are typically used to described a type of development involving relatively small homes (750 to 1,250 square feet) clustered around a common open space developed at two to two and a half times the density normally allowed in land zoned for single-family development. The Planning Commission directed staff to pursue revisions to the code to promote the development of pocket neighborhoods. NEXT STEPS: The Planning Commission will review the final piece of the first draft, Part 5 - Site Development and Design Standards, in February. Additionally, the Planning Commission will review evaluations of the planning application process and green development incentives, and code amendment options addressing these areas for consideration in the spring. Public meetings will be held in the late spring after the Planning Commission has gone through the initial review of the complete first draft of the Unified Land Use Ordinance and the related evaluations. The public meetings will provide informal opportunities to learn about and make comments on the draft code, as well as the process and green development incentive code amendment options. The final draft of the Unified Land Use Ordinance is expected to be completed by September 2013, with the formal adoption process taking place directly thereafter. ATTACHMENTS 1.Unified Ordinance Outline 2.Misc. Pages from Draft 1 of the Unified Land Use Ordinance DEPT. OF COMMUNITY DEVELOPMENT Tel: 541-488-5305 20 E. Main Street Fax: 541-552-2050 Ashland, Oregon 97520 TTY: 800-735-2900 www.ashland.or.us Unified Land Use Ordinance Project 1.23.13 Page 1 of 3 Ordinance Outline The following outline groups similar code functions together into six distinct parts of the land use ordinance (Title 18), with each part containing a suite of related chapters, and subsections with each chapter. t/ 18-1 General Provisions ƩĻǝźĻǞĻķ ğƷ 18-1.1 Introduction ВΉЋЎΉЊЋ ƒĻĻƷźƓŭ 18-1.2 Title, Purpose and General Administration 18-1.3 Lot of Record and Legal Lot Determination 18-1.4 Non-Conforming Situations 18-1.5 Ordinance Interpretations 18-1.6 Zoning Permit Expiration, Extension and Enforcement t/ 18-2 Zoning Regulations ƩĻǝźĻǞĻķ ğƷ 18-2.1 Zoning Regulations General Provisions ЊЊΉЊЌΉЊЋ ƒĻĻƷźƓŭ 18-2.2 Base Zones Allowed Uses 18-2.3 Special Use Standards 18-2.4 General Regulations for Base Zones 18-2.5 Standards for Residential Zones 18-2.6 Standards for Non-Residential Zones t/ 18-3 Special Districts and Overlay Zones ƩĻǝźĻǞĻķ ğƷ 18-3.1 Special District and Overlay Zone Purpose and Administration ЊЊΉЋАΉЊЋ ƒĻĻƷźƓŭ 18-3.2 Croman Mill District 18-3.3 Health Care Services District 18-3.4 North Mountain Neighborhood District 18-3.5 Southern Oregon University District 18-3.6 Airport Overlay DEPT. OF COMMUNITY DEVELOPMENT Tel: 541-488-5305 20 E. Main Street Fax: 541-552-2050 Ashland, Oregon 97520 TTY: 800-735-2900 www.ashland.or.us Unified Land Use Ordinance Project 1.23.13 Page 2 of 3 18-3.7 Freeway Sign Overlay 18-3.8 Performance Standards Options Overlay 18-3.9 Physical and Environmental Constraints Overlays (Floodplain Corridors, Hillside Lands, Severe Constraints, Wildfire Lands) 18-3.10 Water Resource Overlay 18-3.11 Site Development and Design Overlays (Detail Site Review, Downtown Design, Historic District, Pedestrian Place) 18-3.12 Residential Overlay t/ Ǟźƌƌ ƩĻǝźĻǞ źƓ CĻĬƩǒğƩǤ ЋЉЊЌ 18-4 Site Development and Design Standards 18-4.1 Design Standards Administration 18-4.2 Building Placement and Orientation 18-4.3 Access and Circulation 18-4.4 Parking and Loading 18-4.5 Landscaping and Screening 18-4.6 Light and Glare 18-4.7 Public Facilities and Utilities 18-4.8 Recycling Requirements 18-4.9 Sign Regulations 18-4.10 Solar Access 18-4.11 Subdivision Design Standards 18-4.12 Grading and Excavation 18-4.13 Tree Preservation and Protection 18-4.14 Wireless Communication and Facilities and Disc Antennas t/ ƩĻǝźĻǞĻķ ğƷ ЊЊΉЋАΉЊЋ 18-5 Application Review Procedures and Approval Criteria ƒĻĻƷźƓŭ 18-5.1 General Review Procedures 18-5.2 Site Design Review DEPT. OF COMMUNITY DEVELOPMENT Tel: 541-488-5305 20 E. Main Street Fax: 541-552-2050 Ashland, Oregon 97520 TTY: 800-735-2900 www.ashland.or.us Unified Land Use Ordinance Project 1.23.13 Page 3 of 3 18-5.3 Land Divisions and Property Line Adjustments 18-5.4 Conditional Use Permits 18-5.5 Adjustments and Variances 18-5.6 Modifications to Approved Planning Applications 18-5.7 Annexations 18-5.8 Plan Amendments and Zone Changes 18-5.9 Ballot Measure 49 Claims 18-6 Definitions and Rules of Measurements DEPT. OF COMMUNITY DEVELOPMENT Tel: 541-488-5305 20 E. Main Street Fax: 541-552-2050 Ashland, Oregon 97520 TTY: 800-735-2900 www.ashland.or.us Council Communication August 6, 2012 Study Session Discussion of Issues Surrounding Short-term Vacation Rentals FROM: Bill Molnar, Community Development Director, molnarb@ashland.or.us SUMMARY Short-term vacation home rentals is a type of short-term rental housing that refers to a residence or dwelling that is rented for a period of less than 30 days. The Land Use Ordinance limits the use of short-term rental housing through the conditional use permit process to Commercial, Employment (Hotels & Motels) and Multi-family (B&B or Travelers Accommodations) zoning districts, while prohibiting short-term rental housing in areas zoned Single-Family. As a result, short-term vacation - ordinance. After hearing testimony on this subject during public forum at the June 18, 2012 Council meeting, staff was directed to bring back information on the item for Council discussion at a future study session. There is considerable debate at the local level around the country as to what role vacation rentals should or should not play in the visitor accommodation economy. Some of the arguments for allowing and for restricting vacation rentals are covered in this communication. Ultimately, changes to ements for short-term rental housing could take considerable time given the number of issues and regulating standards worthy of possible consideration. BACKGROUND AND POLICY IMPLICATIONS: , which allows for short-term, overnight accommodations within multi-family zones with approval of a conditional use permit, was established in the early 1980s. The ordinance was intended to provide an opportunity for the owner of an existing and preferably historic structure to gain additional income by offering overnight accommodations. In turn, a portion of the revenue would be reinvested into improvements to the historic structure and site. Ashland limits short-term accommodations to specific zoning districts throughout the city, while specifically prohibiting the use in single-family zones. Hotels and motels are allowed in commercial and employment zones, while accommodations in residential areas, commonly referred to as bed & breakfasts, are limited to multi-family zoning districts. A land use approval in the form of a conditional use permit is required before operating a hotel/motel or bed and breakfast. accommodation site. It is estimated that there are over 70 approved short-term accommodation establishments in the City, accounting for approximately 1300 rooms. Page 1 of 4 Annually, Code Compliance staff sends enforcement letters to property owners believed to be operating short-term rentals in violation of local land use regulations. These potential zoning infractions may be brought to attention by complaints from residents, but the majority of properties were identified from a review of internet sites that advertise short-term home rentals. Staff has witnessed a rise in the number of short-term home rentals operating illegally within the city limits over the past two to three years. In May and June of 2012, approximately 40 letters were mailed to property owners believed to be offering short term home rentals without the required land use approval, or within areas of the town not zoned for short-term accommodations. In light of the recent compliance effort, a resident addressed the Council during public forum and requested that the Council consider changes to the land use code that would result in a relaxation of current restrictions on homeowners in single-family zoning districts. After reviewing information on this topic, it is evident that many communities are dealing with issues and impacts related to short-term vacation home rentals in their communities. While the politics of individual communities ultimately influence the adopted code language dealing with short-term vacation home rentals, the following issues and concerns commonly highlight local discussion and debate. Protection of Neighborhood Character A common municipal purpose for regulating short-term rental housing is to protect the character of existing residential neighborhoods. Tension between permanent residents and operators of short-term vacation home rentals arise due to increased traffic, noise, impacts to available on-street parking and other potentially disruptive activities (e.g. late night celebrations). Another concern cited, yet often difficult to measure, is the perception that too many short-term vacation rentals in an a neighborhood based on the idea that permanent residents often hold a greater attachment to local social networks and community involvement. 2010 Census data estimates the average household size of Ashland at 2.03 persons, while an informal survey of short-term vacation rentals in Ashland listed on the VBRO website offers accommodations for an average of seven persons. Similarly, statistics compiled by the North Carolina Vacation Managers Association estimates that the average number of people utilizing a vacation rental per night is six persons. The impact of six people in a household per night versus the average Ashland household of two can be quite significant in terms of noise generation, traffic, water and wastewater usage, solid waste generation and road maintenance. Increase Choice and Fairer Competition with Licensed Lodging Short-term vacation home rentals in existing neighborhoods offer a greater sense of freedom and choice to visitors. In general, short-term vacation home rentals differ from bed & breakfasts, hotels, persons, including permanent provisions for living, sleeping, eating, cooking and sanitation. Although appearance and location to many short-term vacation home rentals, they are distinguishable by the requirement that the property or business owner reside onsite. This standard ensures that the person(s) responsible for the daily operations of the accommodation and compliance with the conditions of the land use application are housed on the property, while also being integrated into and accessible to the immediate neighborhood should concerns arise. Page 2 of 4 Effects on Housing Supply and Affordability The local housing market may also be impacted by the proliferation of illegal, short-term vacation home rentals. According to the 2010 Census, 357 or 3.4% of all housing units in the City of Ashland are for seasonal, recreational, or occasional use. This is an increase of 140% from the 2000 census that s housing stock. The economic benefits to property owners from the conversion of existing residences to short-term vacation homes can potentially drive up prices of existing homes, decreasing the supply available to long-term residents. Additionally, an increase in short-term vacation homes can lead to a reduction in the availability in the number of long-term, single-family home rentals. This is because the economic benefits to the property owner from operating a short-term vacation home are potentially greater than that of a traditional, longer term home rental. Physical Impacts While not necessarily the case in Ashland, some communities cite the need for restrictions on short- term vacation rentals in order to protect the physical characteristics of their residential neighborhoods. The underlying rationale is that short-term home rentals in single-family zones generally are not owner-occupied and therefore are less likely to be cared for to the same degree as permanent residences. Other communities note, however, that it is in the best interest of the owners of short-term vacation homes to take good care of their property in order to have a successful business and, therefore, have a strong incentive to select guests who are respectful of their properties. Economic Impacts For Ashland with its robust tourist industry, short-term vacation home rentals represent a potential additional ansient Occupancy Tax (TOT), establishments offering overnight accommodation are required to hold and annually renew a business license, as well as have a valid land use approval (i.e. conditional use permit and other applicable permit fees). As a tool for economic growth, short-term vacation home rentals can create considerable economic benefits within a community through the creation of jobs, and attracting visitors who spend money in local shops and restaurants. Many of the jobs created by short-term vacation home rentals, however, often are low skilled, low paying and seasonal or part time. This can create a drain on the local workforce and exacerbate issues related to continuing a cycle of lower paying jobs in a community with an expensive housing market. Studies have identified both negative and positive property tax impacts from an increase in short-term vacation rentals on small, medium and large communities. In some instances, the increased value of vacation rental properties has driven the price of property up and therefore property taxes. This can have the effect of raising the property tax rate on year round citizens and in some communities have driven lower income residents out of the community altogether. Summary of Potential Impacts - Short Term Rentals in Single-Family zones Positive Impacts TOT and business license fees Increased choice of accommodation types, especially for families Income source for individual property owners Page 3 of 4 Employment opportunities Negative Impacts Neighborhood Impacts noise, traffic, physical changes to site, etc. Reduced housing and rental availability for residents Decreased sense of localness Increased stress on infrastructure and services FISCAL IMPLICATIONS: A review a other communities indicate that expanding short-term rental restrictions to include other areas of Ashland (i.e. single family neighborhoods) may put additional administrative burdens on the local government, including the processing of land use and building permits, licensing and registration applications and code compliance. Building officials are likely to be faced with an increased volume of required inspections. Code Compliance personnel and the police officers may need to assume additional enforcement duties under a short-term rental ordinance. Down the road, this could lead to a discussion about the potential reinstatement of the citywide Code Compliance position that was eliminated in January 2009. STAFF RECOMMENDATION AND REQUESTED ACTION: Changes to land use requirements related to short-term vacation home rentals should be undertaken with caution and an understanding of the potential effects to longstanding community goals for maintaining strong neighborhoods, and a diverse, permanent housing inventory designed to serve a wide range of households representing a variety of household incomes. A discussion and review of possible code amendments likely would attract considerable community dialogue and debate consisting of a mixture of housing and neighborhood advocates, individual property owners, members of industry (i.e. B&B and Hotel/Motel owners), etc. Consequently, the Council may wish to discuss where this issue fits in with other priorities, or continue discussion of the topic as part of their annual goal setting process. SUGGESTED MOTION: N/A. This item is for the purpose of Council discussion. ATTACHMENTS: Informal Survey of Other Cities Map of Ashland and Bed & Breakfasts) Document submitted by Mark Dennettis Document submitted by Ashland Bed & Breakfast Network Page 4 of 4 Memo DATE: 1/17/2013 TO: Housing Commission FROM: Linda Reid, Housing Program Specialist RE: Housing Commission goals 2013 The Housing Commission held their annual goal setting retreat on November 17th. At their retreat they identified six goals to pursuit in the following year: explore and potentially implement a Student fair housing plan. The next HC meeting will take place in January. 1. Establishment of a Rental Registry 2. Preservation of vulnerable properties (Focus on Sun Village) 3. Housing Trust fund-identify 3 viable options to forward to the council 4. Develop a Landlord Tenant Brochure. 5. Support the implementation of specific (to be identified at a later date) potential strategies identified in the HNA 6. Explore and potentially implement a Student fair housing plan DEPT. OF COMMUNITY DEVELOPMENT Tel: 541-488-5305 20 E. Main Street Fax: 541-488-6006 Ashland, Oregon 97520 TTY: 800-735-2900 www.ashland.or.us