Short-Term Rental Ordinance – DRAFT (01560374).DOCX

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City of University Heights Codified Ordinance – DRAFT

Chapter 882

Short-Term Rental Operations

882.01 DEFINITIONS

As used in this Chapter

(a) “Short-Term Rental” means any room or dwelling that is rented wholly or

partly for a fee for less than thirty (30) consecutive days by persons other than the

permanent occupant or owner from which the permanent occupant or owner receive

monetary compensation, whether such compensation is paid directly by the short-term

rental guest or is collected and remitted to the permanent occupant or owner by a

hosting platform. “Short-Term Rental” does not include a room in any Hotel or Motel,

as defined elsewhere in the Codified Ordinances of the City of University Heights.

(b) “Short-Term Rental Operation” or “operation of a short-term rental”

means occupancy for a fee of any room or dwelling in a short-term rental by a transient

guest.

that facilitates, through advertising or any other means, a short-term rental booking

transaction for accommodations between a short-term rental host and short-term rental

guest, including, but not limited to, reservations and/or collection of payment for such

accommodations on behalf of the short-term rental host. Examples include, but are

not limited to, Airbnb, VRBO, and HomeAway.

(d) “Transient Guests” means persons occupying a room or rooms for

sleeping accommodations for less than thirty (30) consecutive days.

(e) “Short-Term Rental Guests” means persons renting temporary lodging

from a short-term rental host, or through a hosting platform on behalf of the short-term

rental host, for less than thirty (30) consecutive days.

(f) “Guestroom” means a room offered to the public for a fee that contains,

at a minimum, provisions for sleeping.

(g) “Permanent Occupant” means persons who reside in a dwelling more

than 51% of the time during a calendar year; the dwelling in which the persons reside

shall be referred to as their primary residence.

(h) “Primary Residence” means a residence that is the usual place of return

for housing as documented by at least two of the following: motor vehicle registration,

driver’s license, tax documents, lease copy, or a utility bill. An owner or permanent

occupant can only have one primary residence.

(i) “Dwelling” means any building or structure which is occupied or intended

for occupancy in whole or in part as a home, residence or sleeping place for one or

more persons.

(j) “Owner” means an individual(s), corporation, or partnership that has legal

title to and control of a dwelling.

(k) “Short-term rental host” or “host” means the owner and/or permanent

occupant of a short-term rental who offers the short-term rental for temporary lodging.

(l) “Special Event” means a wedding, party, family reunion, or similar

gathering that exceeds the maximum number of occupants allowed under the short-

term rental permit.

882.02 PERMIT REQUIRED

(a) No person, including, but not limited to, an owner, operator, manager, or

employee shall engage in, conduct, or carry on, or permit to be engaged in, conducted

or carried on, in or upon any premises in the City of University Heights, the operation

of a short-term rental in a calendar year, without obtaining a permit in accordance with

this Chapter. It shall be prima facie evidence of a short-term rental operation if a short-

term rental guest is found to be occupying or using a short-term rental operation if a

short-term rental guest is found to be occupying or using a short-term rental or if a

residence has been placed on any hosting platform for short-term purposes.

(b) Any application for a new short-term rental permit may be submitted at

any time to the Housing and Community Development Director, or his/her designee. If

the application is approved and a permit is issued, the short-term rental permit shall

take effect on the day of issuance and shall expire on December 31

of the year in

which it was issued.

before the end of each calendar year. The deadline for submitting an application for

renewal shall be the first Monday of November of the year in which the permit is set to

expire. Failure to renew shall result in expiration of the short-term rental permit on

December 31

. If a short-term rental permit is successfully and timely renewed, it shall

be in effect for one calendar year, beginning on January 1

and expiring on December

of the same year.

(d) The total number of short-term rental permits that may be issued by the

City shall not exceed five percent (5%) of the total number of housing units within each

census block, as tabulated by the most recent United States Census.

882.03 APPLICATION FOR SHORT-TERM RENTAL PERMIT, NEW

AND RENEWAL

(a) An application for a short-term rental permit, and/or renewal of a permit,

shall be made to the Housing and Community Development Director, or his/her

designee, upon approved forms, for an application processing fee of $150.00. City

Council shall have authority to amend the fee amount from time to time to reflect the

costs of administering this Chapter.

(b) The application for a permit to operate a short-term rental shall contain

the following information:

(1) Name of the applicant, including mailing address, telephone

number, and email address. For a non-owner-occupied short-term rental application,

the permanent occupant shall provide sufficient information to demonstrate compliance

with the primary requirements is outlined in Section 882.01(h).;

(2) The names of the legal owner or owners of the property, including

mailing address, telephone number, and email address;

(3) Sufficient information to demonstrate compliance with either the

permanent occupancy or ownership requirements defined and outlined in Section

882.01 and 882.04 of this Chapter;

(4) The names and addresses of any other short-term rental located

in the City of University Heights that the applicant or property owner has any interest

in, including, but not limited to, ownership, licensure, or management;

(5) The names of all hosting platforms that are used by the short-term

rental host and proof of rental insurance for the unit rental;

(6) The names of all advertising outlets in which the short-term rental

host intends to advertise such rental if the short-term rental host is not using a hosting

platform;

(7) The maximum number of occupants that will be accommodated at

the short-term rental, not to exceed two (2) per bedroom, plus three (3) additional

occupants. For example, in a short-term rental with two (2) bedrooms, the maximum

number of occupants would be seven (7);

(8) The maximum number of motor vehicles that will be permitted to

park at the short-term rental; this number shall not exceed the number that can be

garaged on premises plus two that may park in a driveway;

(9) An affidavit attesting that the short-term rental operation is in

compliance with all applicable local, state and federal laws and regulations concerning

the provisions of sleeping accommodations to transient guests; and

(10) The contact name and telephone number for the short-term rental

that may be used 24 hours a day, seven days a week for any issues that may arise

related to the short-term rental unit or its transient guests.

Director, or his/her designee, of any change in information contained in the permit

application within ten (10) days of the change.

(d) Any change in ownership of the dwelling shall void the current short-term

rental permit and shall require submission an approval of a new short-term rental permit

application.

(e) A short-term rental shall be assigned an individual registration account

number that must be prominently posted with the unit on any hosting platform(s) or in

any other advertisement regarding the unit. Said valid registration shall be displayed

but removed upon expiration.

(f) Posted public notice and comment; Inspection.

(1) Inspection. A short-term rental shall be inspected by the City

Building and Housing Department and Fire Department on an annual basis prior to

issuance and/or renewal of a permit to ensure compliance with all applicable Federal,

State and local fire safety statutes, regulations, ordinances and codes including the

requirements set forth below in Sections 882.04(a)(4)-(5).

A. If a short-term rental fails to pass the City inspection

required pursuant to this section, then the short-term rental applicant may request a

re-inspection, provided that the reinspection request is submitted within sixty (60) days

of the first inspection. The short-term rental permit application (or renewal application)

shall be voided, and no permit will be issued (or renewed) if the proposed short-term

rental fails to pass re-inspection.

(2) Public notice and comment. For short-term rental permit

applications in any residential zoning district, the City shall cause a temporary sign to

be placed on the property which is the subject of the short-term rental application for

the purpose of giving notice of the proposed short-term rental and soliciting public

comment. The City shall use any public comment received for the purpose of assisting

in the City’s evaluation of the short-term rental application’s compliance with Section

882.05 of this Chapter. The temporary sign shall be placed on the property no less

than fourteen (14) days before the short-term rental permit is issued by the City. The

temporary sign notice requirements described in this Section shall not apply to timely

filed renewal applications. Any public comment received during the notice period shall

be kept on file with the City.

882.04 SHORT-TERM RENTAL HOST REQUIREMENTS

(a) Short-term rental host requirements. A short-term rental host shall be the

owner and/or the permanent occupant of the dwelling. The short-term rental host must

provide: one (1) form of proof of identity, and two (2) pieces of evidence that the

dwelling is the host’s primary residence or two (2) pieces of evidence that the host is

the owner of the dwelling.

(1) One (1) short-term rental permit per short-term rental operation

may be issued.

(2) If a short-term rental host is not the property owner, but a

permanent occupant of the dwelling, the host shall obtain permission from the property

owner of the dwelling to register the dwelling on any hosting platform or to advertise

the dwelling in any other manner for use as a short-term rental.

(3) The short-term rental host must provide written notice to the short-

term rental guest of:

(i) The contact information, including telephone number, of a

local person who resides or is located within ten (10) miles of the dwelling unit with

responsibility to resolve any complaints, regarding the condition, operation, or

maintenance of a dwelling unit;

(ii) The trash and recycling collection days for the dwelling and

any applicable rules and regulations pertaining to leaving or storing trash on the

exterior of the dwelling. The short-term rental host shall provide proper trash and

recycling containers for the short-term rental guest(s);

(iii) No short-term rental guest shall be permitted to sleep in any

accessory building to the primary building on the site, nor shall sleeping

be permitted outside or in tents, campers, recreational vehicles, or other

similar structures or vehicles outside of the main dwelling;

(iv) Special events, as is defined in this Chapter, are not

permitted;

(v) Short-term renters shall observe quiet hours between

10:00p.m. and 7:00 a.m.;

(vi) Pets shall be secured within the dwelling or on a leash while

on the exterior of the dwelling at all times.

(4) Smoke detectors shall be provided and maintained within each

sleeping area in each dwelling unit;

(5) One or more carbon monoxide detection devices shall be installed

and maintained as close to the center of the dwelling unit and within close proximity to

the living area and within each sleeping area of the dwelling unit;

(6) Occupancy shall be limited to two (2) individuals per bedroom,

plus three (3) additional occupants within the dwelling unit. For example, in a short-

term rental with two (2) bedrooms, the maximum number of occupants would be seven

(7);

(7) Maximum number of motor vehicles that will be permitted to park

at the short-term rental: the maximum number of motor vehicles that are permitted to

be parked at any short-term rental shall not exceed the number that can be garaged

on-premises plus two (2) that may park in the attached driveway;

(8) Compliance with all other applicable provisions of the City of

University Heights Codified Ordinances relating to residential housing;

(9) All short-term rental hosts shall obtain liability insurance for the

short-term rental. Each short-term rental shall at all times maintain the following

insurance coverage meeting all of the following requirements: A general liability

insurance policy or certificate that shall provide the following minimum coverage:

(i) Not less than three hundred thousand dollars

($300,000.00) Such policy or certificate must be issued by an insurance company that

is admitted to do business in the State of Ohio or by an eligible surplus lines company

or risk retention group;

(ii) The policy or certificate shall provide notice of cancellation

of insurance to the Housing and Community Development Director at least ten (10)

days prior to cancellation; and

(iii) Any cancellation of insurance required by this section shall

result in an automatic revocation of the respective short-term rental permit.

(10) Rentals for thirty or more consecutive days by the same guest(s)

will not be subject to short-term rental regulations.

(b) Records required. Short-term rental hosts that offer short-term rentals

shall retain and, upon request, make available to the Housing and Community

Development Director, or his/her designee, official records to demonstrate compliance

with this Chapter, including, but not limited to, primary residency, the dates and

duration of each stay in the short-term rental, the maximum occupancy permitted at

the short-term rental, and the maximum number of motor vehicles permitted at the

short-term rental. A short-term rental host that provides units for short-term rental use

shall retain records for a period of at least four (4) years.

obtain a permit or offer a short-term rental, where prohibited by any other provision of

law.

882.05 GROUNDS FOR DENIAL

(a) The Housing and Community Development Director, or his/her designee,

shall issue a new permit upon application, or grant the renewal of an existing permit,

except as provided in divisions (b) and (c) of this section.

(b) The Housing and Community Development Director or his/her designee,

shall deny any application for a new permit, or renewal of permit, if any of the following

are shown to have occurred at the short-term rental property:

(1) The applicant makes a material misrepresentation of fact on the

application for a short-term rental permit or, if requested, fails to submit documentation

evidencing compliance with the rental host requirements outlined in Section 882.04;

(2) The applicant or any owner of the short-term rental has been

convicted of violating Section 882.02(a);

(3) Any owner, applicant, operator, or manager of the short-term

rental is shown to have been convicted of the act of prostitution or soliciting for

prostitution, or an act that would constitute a violation of the Ohio R.C. Chapters 2925

(Drug Offenses) or 3719 (Controlled Substances), in or on the premises of the dwelling

of the short-term rental in question, or any short-term rental in which the owner has any

interest in, including, but not limited to, ownership, licensure, or management;

(4) The property taxes of the short-term rental host are in arrears with

the Cuyahoga County Fiscal Office;

(5) The short-term rental host and/or owner is in arrears in payment

of taxes or assessments due and owing to the City of University Heights;

(6) The short-term rental has a documented history of repeated

conduct that endangers neighborhood safety or of conditions interfering with the use

and enjoyment of property within its vicinity (as such conditions are defined below in

Section 882.06); or of conduct in violation of Section 882.08;

(7) The short-term rental has outstanding orders from the City

Building and Housing Department or Fire Department that have not been corrected.

(8) The owner, applicant, operator, or manager of the short-term

rental has hindered or prevented any inspection by the City Building and Housing

Department or Fire Department as authorized above by Section 882.03(f)(1).

of de facto violation of law, evidence of conviction is not a prerequisite for denial unless

specifically indicated.

882.06 REVOCATION AND SUSPENSION OF SHORT-TERM RENTAL

PERMIT

(a) The Housing and Community Development Director, or his/her designee,

may revoke and/or suspend a short-term rental permit if it is determined that the

activities set forth above in Section 882.05(b) are determined to have occurred at the

short-term rental; or a short-term rental unit is listed on a hosting platform or advertised

elsewhere without the registration number as required under Section 882.03(e); or is

perpetuating conditions interfering with use and enjoyment properties within its vicinity;

or is delinquent in filing or payment of taxes and assessments due and owing to the

City of University Heights; or is engaging in conduct in violation of Section 882.08.

Conditions interfering with use and enjoyment of properties within the vicinity of a short-

term rental include, but are not limited to:

(1) The occurrence of any of the activities set forth in the University

Heights Codified Ordinances relating to noise disturbance, nuisance, drug offenses, or

disorderly conduct;

(2) Occupancy by a number of short-term rental users exceeding

either (1) the maximum number included in the application for the short-term rental

permit or (2) the maximum occupancy permitted pursuant to this Chapter;

(3) Parking of a number of motor vehicles exceeding either (1) the

maximum number included in the application for the short-term rental permit or (2) the

maximum number of motor vehicles permitted at any short-term rental pursuant to this

Chapter;

(4) Uninvited entry of short-term rental occupants upon private

property within five hundred (500) feet of the short-term rental;

(5) Failure to remit the appropriate Short-Term Rental Tax as is

required pursuant to University Heights Codified Ordinance Chapter 896.

(b) A violation of any of the conditions in Section 882.06(a) shall result in

progressive measures:

(1) Upon the first violation, the permit for the short-term rental shall be

terminated and the short-term rental host prohibited from re-applying for a new permit

for six (6) months from the date of termination;

(2) Upon the second violation, the permit for the short-term rental

shall be terminated and the short-term rental host prohibited from re-applying for a new

permit for one (1) year from the date of termination.

(3) Upon the third violation, the permit for the short-term rental shall

be terminated and the short-term rental host prohibited from re-applying for a new

permit at any time in the future.

882.07 APPEAL OF DENIAL OR REVOCATION OF PERMIT

In the event an applicant has been denied a permit, or if a permit has been

revoked or suspended, the party affected shall have the right to appeal to the Board of

Zoning Appeals from such denial, revocation or suspension within ten (10) business

days. Notice of appeal shall be filed with the Board of Zoning Appeals on a form

created by the City for such purpose, and the Board of Zoning Appeals shall hear the

appeal at its next regularly scheduled meeting. The burden of proof in such an appeal

shall be upon the appellant to show that the denial or revocation was arbitrary or

unreasonable.

882.08 TRANSFER OF SHORT-TERM RENTAL PERMIT PROHIBITED

(a) No permit under this Chapter shall be transferable to another short-term

rental operation.

(b) No permit under this Chapter shall be transferable to another individual,

corporation, firm, partnership, association, organization, or other group acting as a unit.

882.09 DISCRIMINATION PROHIBITED

(a) A short-term rental host shall not:

(1) Decline a short-term rental guest based on race, sex, sexual

orientation, gender identity, or expression, color, religion, ancestry, national origin, age,

disability, familial status, or military status;

(2) Impose any different terms or conditions based on race, sex,

sexual orientation, gender identity, or expression, color, religion, ancestry, national

origin, age, disability, familial status, or military status;

(3) Post any listing or make any statement that discourages or indicates

a preference for or against any short-term rental guest on account of race, sex, sexual

orientation, gender identity, or expression, color, religion, ancestry, national origin, age,

disability, familial status, or military status.

882.10 RULES AND REGULATIONS

The Housing and Community Development Director may promulgate and

enforce reasonable rules and regulations to carry out the intent of this Chapter.

882.11 SHORT-TERM RENTAL PERMIT DISPLAY

The short-term rental host shall maintain the short-term rental permit and

prominently display it in the dwelling.

882.12 SEVERABILITY

In the event any section or provision of this Chapter shall be declared by a court

of competent jurisdiction to be invalid or unconstitutional, such decision shall not affect

the validity of this chapter as a whole or any part thereof other than the part so declared

to be invalid or unconstitutional.

882.13 SHORT-TERM RENTAL TAX

(a) The Short-Term Rental Tax shall be 3% of the listing price, including any

fees, for reservations twenty-nine (29) days and shorter.

(b) The tax shall be collected and administered in conformance with Chapter

896 of the University Heights Codified Ordinances.

882.99 SHORT-TERM RENTAL PENALTY

(a) Whoever violates any provision of this Chapter shall be guilty of a

misdemeanor of the first degree and shall be punished as provided in Chapter 698, in

addition to any other penalties as imposed by this Chapter. A separate offense shall

be deemed to occur for each day the violations exists.