Legal Review Committee Agenda and Packet 2017 05 11

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SUBJECT: RECREATION CENTER EXPANSION AND AQUATIC CENTER OPTIONS DATE: NOVEMBER 10, 2015 PAGE 2 OF 5 allowed in any residential zone district, unless they are a boardinghouse / lodging house. The LMC's definition of "dwelling unit" restricts the rental of units for periods less than 30 -days. Sec. 17.08.130. - Dwelling unit. Dwelling unit means one room or rooms connected together constituting a separate, independent housekeeping establishment for owner occupancy or for rental or lease on a monthly or longer basis, physically separated from any other rooms or dwelling units which may be in the same structure, and served by not more than one gas meter and one electric meter. If a complaint arises about a particular rental unit, Code Enforcement requests the owner provide evidence they are renting the property for period 30 -days, or longer (per Sec.17.04.130). If owner cannot produce such evidence during an investigation, the staff would be inclined to define the activity as a boarding house and therefore not allowed to occur in any residential zone district except the RM and RH Zone Districts. Louisville Municipal Code - Taxation The city imposes a lodging tax on rentals of thirty days or less in Chapter 3.22. The intent of the code is for "every person who, for consideration, leases or rents any hotel room, apartment hotel room, motel room, lodging house room, motor hotel room, guesthouse room, guest ranch room, extended stay lodging room or similar accommodation (collectively "lodging") located in the city shall pay, and every person who furnishes for lease or rental any such lodging shall collect, the tax imposed by this chapter." According to the LMC, these short-term rentals should apply for a Business License with the City's Finance Department and be subject to the City's 3% lodging tax and 3.5% sales tax. Currently, single family housing units are not eligible for short-term rental of less than 30 -days. CONSIDERATIONS The City of Boulder staff produced a series of pros and cons for their February 10th City Council Study Session. Staff believes the items presented in that communication are relevant in Louisville and discussion related to possible modifications to the City's short- term rental policies and regulations. Cons 1. Impact on Residential Neighborhoods. One major concern is the impact of short-term rentals on the character and stability of the neighborhoods in which the short-term rentals exist. Frequent turnover, additional traffic and cars can undermine the quality of life in a residential neighborhood. 2. Unfair competition to the Hotel/Motel Industry. The Hotel and Motel Industry is subject to significant regulation both at the city and the state level. Hotel CITY COUNCIL COMMUNICATION 9