You May Be Able to Have Two Short-Term Rental Properties
UPDATE: 5 March, 2023. Public comment is not being accepted for this item on Lakewood speaks. Until and unless they enable this feature, you can comment under agenda item 6: General Public comment. The latest redline version to be voted on is available on https://lakewoodspeaks.org/items/2887.
Over two years of committee work on Short-Term Rentals (STRs) was overthrown during February 13ths City Council meeting. One of the basic underlying premises of the proposed regulations was whether to allow STR use in investment homes, or only in primary residences. After working with residents for year, the Lakewood City Council committee on STRs decided to only allow STR use in home with an owner in residence,
However, on Feb 13, Council Member Shahrezaei proposed changing that base assumption and allowing another, secondary or investment home, to also be used as an STR.
Whether you agree or not, this was a major change and one that residents may not be prepared for. Those concerned can still contact City Council with their views.
Using a non-owner-occupied house as an STR impacts the residents that are concerned about an increased number of strangers in the area posing a safety concern; that increased use of investment housing will make housing more unaffordable; that properties will not be well cared for.
Advocates for non-owner-occupied homes point to the economic advantages in investing, property rights and standards of care that ensure good business.
Discussion in City Council revealed that a “primary residence” clause was recently struck down in Texas. Legal advice was that federal case law in other circuits don’t affect us.
Sidenote: Council Member Springsteen disagreed with this legal opinion and stated her reasons. Mayor Paul forced a break with the advice that she was not the City’s Attorney.
Council Member Franks, who worked extensively on the issues, raised many questions that showed the proposed regulations would need reworked if non-owner occupied STRs were accepted. Everything from definitions to operations would need changed. New language to accompany this change was not available but Council Member Shahrezaei did offer the insight that in 2021 she replaced someone who had a different philosophy on this issue than she did.
Discussion ensued as to how to pass this change quickly, in part because elections were again coming up, but also because the issue has already taken so long. The City Attorney offered language that would allow it to pass with any future modifications necessary to be made by city staff.
In the end, the amendment to allow a second, non-owner-occupied STR passed 7-4, with Council Members Franks, Springsteen, Vincent and Able voting no.
The entire proposal was then tabled until March 13, to allow time for the city staff to rework the regulations as necessary. On March 13, there will be another public comment period regarding the whole proposal, including the new changes. This is your time to have your concerns heard.
However, Lakewood’s City Attorney asked for 30 days to complete the required work so it is unclear when the final product will be available to the public, or even to Council itself.
Other changes to the proposed regulations:
Inspections: A provision was added to allow the City Clerk to decide if adequate compliance with the section on inspection rules was made, so that grace periods can be accommodated as necessary.
Parking: The entire proposed parking plan was removed. Discussion against a parking plan was that there is already a problem but we don’t make others follow a plan and this would be hard to enforce anyway. Discussion for keeping the parking plan was that there is already a problem so don’t make it worse.
Insurance: Council Member Mayott-Guerrero made a motion to change “commercial” insurance to “insurance that adequately covers STR liability”. Motion passed.
Notifications: The requirements for notifying neighbors of STR activity were simplified. Mediation requirements were removed.
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