The legislation would give local governments the authority to limit the number of short-term rentals owned by the same person in an effort to prevent investors from buying up multiple homes. DEIJ Policy | Ethics Policy | Privacy Policy. I do support the [HB 4722] legislation, but I think that a local governments ability to police these, which still seems to be preserved in that legislation, is still the most important angle, said Jason A. Metcalf, an attorney and short-term rental owner in Suttons Bay who has been monitoring the developments at the local and state level. The village issued a. moratorium on short-term rental licenses in June and recently extended it for an additional 90 days. We still oppose it and theres been no negotiation, Rigterink said. She lives in Norton Shores and her work can be found at marlarmiller.com. The material on this site may not be reproduced, distributed, transmitted, cached or otherwise used, except with the prior written permission of Advance Local. Michigan House Bill 4722 (Prior Session Legislation) MI State Legislature page for HB4722. Summary; Sponsors; Texts; . More: Low income housing, single-family homes remain focus in Holland, More: Park Township hires firm for short-term rental help. The Michigan Advance is a nonprofit outlet featuring hard-hitting reporting on politics and policy and the best progressive commentary in the state. Additionally, Rigterink takes issue with how the substitute handles zoning, saying allowing nuisance ordinances is a reactive instead of proactive solution to problems that may arise with renters. Local elected officials know better what is good for a small community such as ours rather than it being dictated to us out of Lansing.. , which Rep. Graham Filler (R-DeWitt) introduced in December 2021. proposes an excise tax on short-terms at a rate equal to the tax of traditional lodging, along with a requirement that accommodation intermediaries such as Airbnb be responsible for the remittance of all their hosts taxes. At the heart of the issue is whether short-term rentals are a residential or commercial use of property. I do support the [HB 4722] legislation, but I think that a local governments ability to police these, which still seems to be preserved in that legislation, is still the most important angle, said, Jason A. Metcalf, an attorney and short-term rental owner in Suttons Bay who has been monitoring the developments at the local and state level. Lightner first introduced the bipartisan legislation back in April. The Michigan Municipal League is among the groups opposing the bill. Noise, trash and nuisance complaints, and a lack of affordable housing for year-round residents, are some of the issues associated with too many short-term rentals in a community. The league and the Michigan Township Association are not advocating for bans, Gilmartin said. Amends 2006 PA 110 (MCL 125.3101 - 125.3702) by adding sec. Website is a free service of the Legislative Service Bureau in cooperation with the Michigan Legislative Council, the Michigan House of Representatives, the Michigan Senate, and the Library of Michigan. It was sounding a lot more like they were going to limit it down to nothing, which concerned me, Metcalf said. short-term rentals arent subject to the same taxes or regulations. They often never visit Michigan, or the city where the home is located, and have no stake in the community other than profit. . ), protects an owners right to rent. In order for us to maintain a quality life in Grand Rapids, we need additional housing supply, he said. Amends 2006 PA 110 (MCL 125.3101 - 125.3702) by adding sec. 64. It really could happen and you would have all of these communities where the population could dip 20 or 30%.. The current ordinance permits short-term rentals in residential areas. HB 4722 passed Michigan's House with a vote of 55-48. Use of and/or registration on any portion of this site constitutes acceptance of our User Agreement (updated 4/4/2023), Privacy Policy and Cookie Statement, and Your Privacy Choices and Rights (updated 1/26/2023). Holland Township does not allow short-term rentals through services like VRBO, Airbnb and Homestay. Listings on Airbnb comprise 0.3% of total dwellings across the state, according to data from Airbnb, and 61% of Michigan hosts are women and over 25% are over the age of 60. YouTubes privacy policy is available here and YouTubes terms of service is available here. Holland's regulations on short-term rentals were adoptedlast year after the pilot program was deemed a success. An unintended consequence is a decline in population, school enrollment and quality of life for year-round residents. House Republicans on Wednesday narrowly passed a bill to increase the nation's debt ceiling while cutting federal government spending -- and while the legislation has no prospect of becoming law . We know from other communities, what this could have the impact of doing is taking either single-family homes that are owner-occupied, or potentially long-term rental properties, and converting them away from those uses, which are homes for long-term residents, whether they be owner-occupied or rentals, and convert them into these short-term rental uses, which only puts additional pressure on what we know is a very tight housing market, particularly a very tight affordable housing market.. Banning the right to rent harms property owners and local businesses in many communities all over Michigan.. Short-term rentals take away year-round housing stock, and affordable housing is already an issue for local residents and service-industry workers who live in tourist towns. http://legislature.mi.gov/doc.aspx?2021-HB-4722, SUMMARY OF BILL REPORTED FROM COMMITTEE (Date Completed: 10-10-22), Summary as Passed by the House (11/2/2021), Summary as Reported from Committee (6/24/2021), District 42, District Companion Senate Bill 446 is still making its way through the upper house with similar provisions. In addition, many lakeshore communities are grappling with a, shortage of available, affordable, year-round housing. Saying that were going to let nuisances happen, and then well let people issue a noise violation. In the early morning hours of Wednesday, October 27, 2021, the Michigan House of Representatives passed House Bill 4722 ("HB 4722"), which significantly limits how local governments may regulate short-term rentals. Its the change in use that is the problem for that neighborhood, McGinnis said. Many lakeshore communities have enacted similar ordinances in recent years in an effort to preserve housing stock and residential neighborhoods, maintaining that short-term rentals are a commercial use of property. 206b. . The substitutes would keep short-term rentals from being zoned out of existence, but would not stop local ordinances from regulating noise, traffic, advertising and capacity. - Amendments made by the Senate will be red, such as: Senate amended text. 4722 bill to amend 2006 PA 110, entitled "Michigan zoning enabling act," (MCL 125.3101 to 125.3702) by adding section 206b. THE PEOPLE OF THE STATE OF MICHIGAN ENACT: Sec. HB 5605, which Rep. Graham Filler (R-DeWitt) introduced in December 2021, proposes an excise tax on short-terms at a rate equal to the tax of traditional lodging, along with a requirement that accommodation intermediaries such as Airbnb be responsible for the remittance of all their hosts taxes. View Latest Bill Text Sign In to Follow Gretchen Whitmer. 4985, calling it a compromise. It just doesnt make sense and it does nothing to protect against the rights of the property owners that live around that vacation rental.. The heated debate continues in New Buffalo, a Southwest Michigan community that recently extended a moratorium on new short-term rental licenses until Dec. 13. We recognize from employers and those that are looking for housing that there just are limited housing options available to people, he said. At the heart of the issue is whether short-term rentals are a residential or commercial use of property. Holland is another West Michigan community that has enacted local ordinances to manage short-term rentals, permitting them in commercially zoned areas such as the downtown. MARQUETTE State Rep. Sara Cambensy, D-Marquette, is a cosponsor of House Bill 4722, which would "amend the Michigan Zoning Enabling Act to provide that the short-term rental dwelling, for 30 . ContactArpan Lobo, Cassandra Lybrink and Carolyn Muyskens at newsroom@hollandsentinel.com. Under the bill, local governments can continue to create and enforce ordinances related to inspections, noise, traffic and other nuisances that apply to rentals and owner-occupied residences. Representatives from Michigan Township Association testified in opposition to HB 4722 at early House committee hearings and. Rep. Sarah Lightner, R-Springport, sponsored 4722. A local unit of government shall not adopt or enforce zoning ordinance provisions that have the effect of prohibiting short-term rentals," the bill states. SUBSTITUTE FOR HOUSE BILL NO. It's a pretty simple bill. In 2017, the city developed a. in response to complaints from residents who showed up at public meetings. Broad allowances for short-term rentals would also affect local hotels, according to a statement from the Michigan Restaurant and Lodging Association. (The Center Square) - In an overnight session, the Michigan House voted 55-48 to pass a bill that aims to prohibit local governments from banning short-term rentals. If its 30% as proposed, right now it would allow up to 500 short-term rentals in the city of Petoskey, and I think thats way too much, Murphy said. Advocates, Misogyny is fueling the countrys gun violence epidemic,, Across the country, a big backlash to new renewables is. , maintaining that local governments can enforce nuisance ordinances and housing codes to protect public safety and address any unruly behavior. Providing tools allowing you to research pending legislation, stay informed with email alerts, content feeds, and share dynamic reports. Under HB 4722, the cap is up to 30% of a communitys existing housing stock, which opponents say is unreasonable for small communities. Contact Editor Susan Demas for questions: info@michiganadvance.com. To me, this is a prime example of cities being allowed to legislate for themselves, Murphy said. The House Committee on Commerce and Tourism approved the bill on May 25, 2021. In todays digital economy, its relatively easy for an outside investor or homeowner to advertise their property as a short-term rental. The bipartisan legislation, House Bill 4722 and Senate Bill 446, revisits an ongoing debate about local government control over short-term rentals. However, the bill loosely defines common ownership as ownership in whole or in part by the same individual, individuals, or legal entity. Consequently, it seems that an individual could potentially circumvent a limit on the number of short-term rental units under common ownership by forming business entities to own additional units. As currently written, House Bill 4722 and Senate Bill 446 would impede a local government's ability to inspect these mini-hotels to ensure they are being operated safely. He rallied STR owners to attend Suttons Bay council meetings on the issue. This exemption is remarkably narrow and specific; it does not seem to further a distinguishable public policy purpose, but rather it appears to be a byproduct of political maneuvering among legislators. If 30% becomes the number, then enforcement becomes a huge issue.. Municipal officials should contact Mika Meyers for assistance with any questions or concerns about the effects of HB 4722. The general feeling in our community and not just in resort towns, but all communities is that were not supportive of efforts to do land-use planning from Lansing, said Grand Haven City Manager Pat McGinnis. Lawmakers contend HB 4722 strikes a balance between property owners who may want to buy an investment property or a second home and then rent it out while still giving local municipalities some authority in how to regulate the industry. 50, District (The Center Square) - Local governments are pushing back on bills that aim to prevent cities from banning short-term rentals (STR) Senate Bill 446 and House Bill 4722 seek to allow homeowners to convert their homes to short-term vacation rentals. amendment that prohibits new short-term rentals in certain residentially zoned districts. Short-term rentals are more prevalent in lakeshore communities that attract tourists and those that host sporting events, but they also are located on small inland lakes and in rural parts of the Upper Peninsula. . I dont want this legislation unintendedly to create a further gap, a further erosion of our housing supply.. , but bills havent gained traction until last month. The legislation prohibits local municipalities from adopting zoning regulations that outright ban short-term rentals or make them subject to a special-use or conditional-use permit. Corporate media arent cutting it. ), protects an owners right to rent. The final result of the House vote was 55 in favor, 48 opposed, and 6 abstentions. Lets talk about it how can we make it so people can reasonably use their properties without destroying communities?. The measure approved by the House is a solid compromise that provides both certainty for private property owners across the state and flexibility for local municipalities that deserve to have some control over the planning and zoning of their communities, Lightner said. It does the following: Prevents municipalities from banning short-term rentals Removes most regulations that unfairly discriminate against owners of short-term rental property Rigterink disagrees and said that is the whole point of zoning for conflicting uses. Introduced by Rep. Sarah Lightner R-Springport on April 27, 2021. Calls to Michigan Realtors were not returned for this story, but the association does have a statement on its website, maintaining that local governments can enforce nuisance ordinances and housing codes to protect public safety and address any unruly behavior. Our stories may be republished online or in print under Creative Commons license CC BY-NC-ND 4.0. Petoskey has an ordinance that permits short-term rentals in a business district with a city license. Short-term rentals incur a much larger cost due to the number of people they bring in, Humphrey said. HB 4722 is supported by Airbnb, the Michigan Association of Realtors and the Rental Property Owners Association. In addition, it also codifies the right for counties, cities and townships to continue to, or begin to, require the issuance of a locally issued STR license, limit local licenses to two per person, and implement license enforcement policies to meet the communitys standards. While those opposed to the bill say communities arent banning outright short-term rentals, Skorup argues that municipalities like Holland Township and St. Clair Shores essentially have full bans through their zoning. Holland Township brings the total to over a dozen, with a handful of extended-stay hotels, a Holiday Inn Express, a Best Western, a Country Inn and more. We feel local communities are best equipped to deal with planning and zoning issues. The bill targets those efforts and essentially strips a local municipalitys ability to regulate short-term rentals through local zoning ordinances or make them subject to a special-use or conditional-use permit. Short-term rentals are properties that are available for tourists and vacationers visiting an area for a brief stay, or not more than 30 days. Corporate media arent cutting it. Short-term rentals have been on the Michigan Legislatures radar for several years, but bills havent gained traction until last month. stop Michigan communities from outright banning short-term rentals, short-term rentals through services like VRBO, Airbnb and Homestay. in residential areas with various regulations that was adopted as part of its local zoning ordinance. Dan Gilmartin, Michigan Municipal League CEO, called the push for a ban against bans a scare tactic during a Monday morning press conference. The Park Township Board of Trustees formally opposed the House and Senate bills in a resolution approved over the summer. This is not a false concern. Other studies show short-term rentals deplete housing stock and increase rent for long-term renters. Lawmakers and opposing groups have worked to, that recognizes the difference between homeowners who rent their properties a few weekends a year and those who buy up properties to operate them as mini hotels.. The legislation states a short-term rental is a residential use of property and a permitted use in all residential zones. Daniel Krason / Shutterstock.com. Short-term rentals have been on the Michigan Legislatures radar for. Theres definitely work being done to try to get it to a vote.. New Buffalo Mayor John Humphrey has been outspoken about his opposition to the rise of Airbnb-style rentals in his community, which held several packed public meetings in 2021 as the City Council took up the issue. The bill passed just after 2 a.m. Wednesday morning, and it could mean more . No legislative action had been taken on HB 4722 in [] 206b. HB 4722 specifically states short-term rentals are not a commercial use of property. In the early morning hours of Wednesday, October 27, 2021, the Michigan House of Representatives passed House Bill 4722 (HB 4722), which significantly limits how local governments may regulate short-term rentals. If, 30% becomes the number, then enforcement becomes a huge issue., Local governments could still enforce ordinances related to parking, noise and nuisance complaints. In Traverse City, Grand Haven and other lakeshore communities, the demand is there, and so is the lure of making money. Steckloff said she appreciates short-term rentals and she does use them, as do many businesspeople who visit the Farmington Hills area for work. It was supported by Representative Greg Markkanen, R-Hancock. Typically, tourists, vacationers and some business travelers rent them for a brief stay, or not more than 30 days, through platforms like Airbnb, VRBO, Vacasa, Turnkey and others. The state wants to come in and say, We know better, preempting them from the work that they have done.. Neighboring Park Township is in the middle of a months-long study of its short-term rental situation as its planning commission explores potential regulations of the rentals, which have generated resident complaints. Amends 2006 PA 110 (MCL 125.3101 - 125.3702) by adding sec. has a problem with STRs operating illegally. The bill does not appear to have enough support in the legislature to override a veto. If the sole purpose is to be a commercial activity to make money that is different from families who live, work, raise their children there, and want to have a quality of life in a community, she said.
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