TO: Mayor and Town Council
FROM: Jill Keimach, Town Manager
Andrew Miller, Town Attorney
DATE: December 5, 2019
CONTACT:
Staff Contact
Andrew Miller, 480-348-3691
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AGENDA TITLE:
Title
Discussion of Ordinance No. 2019-12, amendment to Chapter 10, Offenses, by adding Article 10-14, adding a registration requirement by the property owner(s) of short-term rental properties and other related regulations.
Body
Background
BACKGROUND:
On May 21, 2019, Governor Ducey signed HB 2672 (the “Bill”); which made some changes to the prior preemption of cities and towns in the regulation of residential vacation rentals or short-term rentals (STR). The Bill clarifies that cities and towns can prohibit a STR operator (owner) from using a STR for non-residential purposes including for a retail, restaurant, banquet space or other similar use. The Bill also allows cities and towns to require the owner of an STR to provide contact information for someone who is responsible for responding to complaints before offering for rent or renting the STR and that a STR contact person is responsible for responding to complaints in a timely manner.
The Bill also authorized the Arizona Department of Revenue (ADOR) to impose additional penalties in some circumstances to STR operators who have been cited by a local government for ordinance violations relating to their STR operations. As a result, the bill requires local governments that issue a citation at a STR property to make a reasonable attempt to notify the owner, or their designee, within seven business days of a citation being issued, but only if contact information has been provided pursuant to a local requirement. It also requires local government to notify ADOR within 30 days of a STR violation being finally adjudicated so that ADOR may issue its mandatory fines for “verified violations.”.
The proposed ordinance will allow the Town to adopt the additional provisions authorized by the Bill, including contact information for STR properties, timely responses to complaints, and limiting the use of a STR to residential uses only. It is hoped that these added regulations will help the Town code enforcement officials more readily enforce STR restrictions and accesses penalties to STR property owners.
RECOMMENDATION: It is recommended the Council review the draft ordinance, provide comment, and direct staff on whether to set the draft ordinance for adoption by the Council.
ATTACHMENTS:
Draft of Ordinance No. 2019-12