Proposal would generally allow short-term rentals where homes are allowed

The proposal would treat short-term rentals as residential use and generally allow them wherever residential use is allowed. The proposed permissions cover areas where residential use is allowed, including homes, apartments, and other listed dwelling types. A jurisdiction or zoning district could expressly prohibit short-term rentals. Even then, the prohibition could not block renting all or part of the owner's primary residence and one separate residence on the same parcel or an adjacent property. A primary residence is a home the owner can show they occupy at least 183 days a year. The proposal says it would take effect upon passage and approval.

The proposal would require local governments to analyze and document reasons for zoning restrictions on short-term and long-term rentals. The proposed analysis covers county zoning restrictions or bans on short-term or long-term rentals; the notice rule covers municipal restrictions or bans on short-term rentals. For county zoning, the analysis must address whether the rule fits the growth policy and is designed to protect safety, health, and general welfare, or provide public needs such as transportation, water, schools, and parks. Municipal notice for a short-term rental restriction or ban must explain how it furthers the listed zoning standards. County analysis would be included in public documents for adopting or changing zoning rules. Municipal notice must be published at least 15 days before the public hearing.

The proposal would keep some rules from blocking existing short-term rentals. It would cover short-term rentals already in existence on or before the act's effective date. The protection covers restrictions under the proposal's zoning sections and additional rules that were not in existence when the act took effect. The protection would apply to rentals in existence on or before passage and approval, the proposed effective date.

The proposal would treat short-term rentals as residential use under certain property covenants and homeowners' association rules. It would apply to residential property covenants and homeowners' association governing documents that do not clearly and expressly address short-term rentals. This treatment would not apply where a covenant, association bylaws, or another governing document clearly and expressly says otherwise. The proposal makes this rule retroactive and applies it to covered documents in existence on or after the effective date, which would be passage and approval.