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Snow Hill establishing new short-term rental regulations

(March 23, 2017) Snow Hill, which is in the midst of establishing regulations for short-term rental units, held public readings of two related ordinances during a town council meeting last Tuesday.
The first ordinance, which took effect after being introduced as emergency legislation during a council work session on Jan. 31, establishes a temporary moratorium for approval of short-term lodging units within the town for a period of up to six months.
The second ordinance, which had its first reading last Tuesday, would amend the town code to add definitions and provisions for the registering short-term rental housing.
Jon Hill, Snow Hill code enforcement officer, provided background on the effort to assure short-term rentals are regulated for safety and tax purposes.
“The existing code did not allow for a short-term rental use within town limits,” he said. “It did, however, have a definition in the zoning code that was adopted last year.”
Despite the moratorium, Hill said the town’s intent is not to shutter current short-term lodgings.
“Right now you can do what you’re doing, but let’s develop code that you have to adhere to, and we will regulate in a fashion that is both safe and something that would actually promote the use inside the town,” he said.
Under the proposed ordinance short-term rental units would be defined as a primary residence of which a portion, or the entire structure, is occupied by persons other than the owner or immediate family members, with a monetary fee, or other compensation, exchanged for occupation.
“There are also different provisions for the operation of short-term rentals very similar to the code we’ve already developed for bed and breakfasts,” he said. “There is a residency requirement for operating a second home or structure as short-term rental.”
During a Snow Hill Planning Commission meeting in early February, Hill said the idea of permitting resident agents in lieu of the residency requirement was discussed. That language was not included in the ordinance, but could be added in the future, he said.
There are clear distinctions between short-term lodgings and bed and breakfast or boarding houses, including a limit of five unrelated persons renting rooms at any given time, Hill said.
“When that’s done you’re not subject to fire protection code, and the fire marshal doesn’t do an inspection,” he said. “We thought it would be a good idea that there is some safety built into this. The town is being good stewards of this program by having this requirement.
“There are also requirements to notify neighbors within 400 feet by certified letter, letting people know that they are operating an Airbnb so we don’t get calls and complaints,” he continued. “We’re going to know and the neighbors are going to know that this operation is taking place.”
While short-term rental operators would be permitted to provide food for paying guests, they would be prohibited from selling food to the general public without involving the county health department.
“That would mean that the health department would have to inspect their food,” he said.
Hill also said the proposed ordinance would require landlords to register to operate short-term lodgings and would include a $60 annual rental permit.
Another said parking requirements were also a concern.
The ordinance specifics an owner-occupied primary residence offering short-term lodgings would be required to have two off-street paring spaces for the owner and one off-street parking space per room rented. Also, short-term rentals within the downtown shopping-district would be exempted from the off-street parking mandates.
Proper remittance of applicable Worcester County room taxes and potential state sales tax stipulations were also addressed as part of the proposed ordinance.
“There’s a sales tax involved with anything that they might sell, if they have goods or anything contained within their home,” Hill said.
If the short-term rental ordinance, which is scheduled for a second reading at the council meeting on April 11, is approved, Hill said the current moratorium could end relatively quickly.  
“That will lift in 20 days after the second reading … and the new rules will go into effect,” he said. “There are things that we have to do in the right process to make these things work.”
Councilman Michael Pruitt said the ordinance is a work in progress. He offered praise for the planning commission’s effort thus far.  
“I like what were doing,” he said. “We’re not telling people they can’t do it, we’re just saying you’ve got to have a little parking regulations, a little room tax and that’s what I was after.”
Mayor John Dorman echoed Pruitt’s sentiments.
“We want people to come to town we just want to make sure that the people are safe,” he said.