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HomeMy WebLinkAboutItem 02 First Reading of Ordinance for Land Development Code Amendment to Article II, Section 2-4, Definitions, and Article V, Section 5-15 Specific UseDevelopment Standards, Relating to Tourist HomesVacation HomesShortMeeting Date: June 7, 2022 Item # a Reviewed By: Contact Name: Anoch Whitfield, Zoning epartment Director: Contact Number: Ext. 1016 Mo�city Manager: Robeq��*��',f&I Background Summary: The City has been experiencing a greater interest and influx of property owners and investors wanting to operate tourist homes or vacation rental units in the City. Section 509.032(7), Florida Statutes (FS), preempts the City's ability to prohibit vacation rentals or to regulate the duration or frequency of rental of vacation units if local Codes were not already in place prior to 2011. Because the City had provisions in place regarding tourist homes, including the number of rooms that could be offered for rent and requirements for parking and tax classification for lodging establishments based on the number of rooms or rental spaces with fewer than five (5) rooms, the City has the ability to update its Code in a manner that does not violate the preemption. I 111•51P•RINITIMPS! !I II: IIIII 1111!!III•IIIII• 111 111 111 11�!I Amendments to Article 11, Section 2-4. Definitions: • Clarify existing definition of tourist home, and • Create two (2) new definitions: ® "Transient guest" — The existing tourist home definition makes reference to "transient guests", but there is currently no definition for what a transient guest means, and • "Vacation and short-term rental" — To refer readers doing keyword searches for "vacation rentals" in the Code to refer to the "tourist home" definition. Amendments to Article V, Section 5-15. Specific Use/Development Standards: Create a new Subsection 5-15(C) to establish the standards and a process for tourist homes, including: • A no -cost application for Tourist Home Local Business Tax Receipt and Certificate, • Payment of local taxes per Chapter 119 of the Code of Ordinances and obtaining a Tourist Home Certificate (updated annually), • Identification of a Responsible Party (which may be the tourist homeowner, property owner, or other person or entity) to ensure compliance with all state and local codes and regulations, including all requirements of the City's residential district standards, • Clarification of existing parking requirements, • Building and Fire safety inspections, and • Ability of the Development Services Director to revoke the Certificate or pursue other remedies if the provisions in Section 5-15 and the Certificate are violated. Based on a preliminary inventory conducted by staff, the existing tourist homes and short-term rental units offered or available for rent include rooms in a house, entire houses, boathouses, and tiny homes. While the City does not desire to prevent or otherwise stop the operation of tourist homes and other short-term rentals, there is a recognized need to establish standards to protect the health, safety, and general welfare of the public and reduce or eliminate adverse impacts to those property owners or residents residing adjacent to or near a tourist home or other short-term rentals. Issue: Should the Honorable Mayor and City Commission approve an Ordinance implementing amendments to Section 2-4 of Article 11 and Section 5-15 of Article V of the Land Development Code (LDC) relating to regulation of tourist homes? Planning and Zoning Commission Recommendation: The Planning and Zoning Commission (P&Z) reviewed and discussed proposed LDC amendments on April 12, 2022, and May 10, 2022, and recommend approval of the proposed Ordinance. Staff Recommendation: to Section 2-4 of Article 11 and Section 5-15 of Article V of the Land Development Code (LDC) relating to regulation of tourist homes. Attachments: Summary of Vacation Rental Legislation Ordinance for Tourist HomesNacation Rentals Amendment • Type of Item: (please mark with an 'Y) Public Hearing (Adoption Hearing) x Ordinance First Reading Ordinance Second Reading Resolution Commission Approval Discussion & Direction Original Document/Contract Attached for Execution by City Clerk Original Document/Contract Held by Department for Execution Reviewed by City Attorney N/A Reviewed by Finance Dept. N/A Reviewed by Q N/A ��o���e���R���a!�����V�caƒi��O����ta|s _ '- _ ' . Rentals — �'' Rentals There were no specific references nrregulations relative tovacation rentals prior to2011. Original Statutes in2O10. (7) PREEMPTION AUTHORITY. —The regutation of pubtic lodging establishments and public food service establishments, including, but not limited to, the insdection of public lodging establishments and public food service establishments for comptiance with the sanitation standards adopted, under this section, and the regulation of food safety protection standards for required training and testing of food service establishment personnel are preempted to the state. This subsection does not preempt the authority of a local government or local, enforcement district to conduct inspections of pubLic lodging and public food service establishments for compliance with the Rorida Building Code and the Florida Fire Prevention Code, pursuant to ss553.80 and �Q3.022. OnJune 2L2O11,HQ8A3amended 5O9.032,F.3,bv toprohibit local governments from regulating, restricting, or prohibiting vacation rentals based solely on their classification, use or occupancy. This legislation, however, states that this paragraph does not apply to any local law, ordinance, or regulation adopted on or before June 1,20l1. What this meant, or at least implied at the time, was that the State prohibited local governments from restricting, regulating or prohibiting vacation rentals based solely on their classification, use or occupancy but did not prohibit local governments from regulating other aspects or impacts of vacation rentals. Below isnew language copied from HB8O3, (7) PREEMPTION AUTHORITY. — 'rho regulation of public lodging establishments and public food service establishments, including, but not limited to, the ­ ytm�� and testing of foo _ee estab-1 8 en', personnel. and matters related,to the nutritional content and marketina of foods offered in such establish- ments, is are preempted to the state. This pgragLaph sabseetion does not preempt the authority of a local government or local enforcement district to conduct inspections of public lodging and public food service establishments for compliance with the Florida Building Code and the Florida Fire Prevention Code, pursuant to ss. 553.80 and 633.022. macation, rentals. (c) Paragraph (b) does not apply to any local law. ordinance. or regulation exclusively relating to property valuation as a criterion for vacation rental if the local law, ordinance. or regulation is re uired to be ant)rovoti hv the xt area of critical s concern designation. I Short Term Rentals and Vacation Rentals Subsequently, in 2014, the State passed 1-113 356 that further amended 509.032(b), F.S., to add more restrictions on local governments by requiring that local governments may not prohibit vacation rentals or regulate the duration (the length of stay) or frequency (how often a room or unit gets rented out) of rental of vacation rentals. See 2014 HB 356 excerpt below: (a) The regulation of public lodging establishments and public food service establishments, including, but not limited to, sanitation standards, inspections, training and testing of personnel, and matters related to the nutritional content and marketing of foods offered in such establishments, is preempted to the state. This paragraph does not preempt the authority of a local government or local enforcement district to conduct inspections of public lodging and public food service establishments for compliance with the Florida Building Code and the Florida Fire Prevention Code, pursuant toss; 553.80 and 633.206, (c) Paragraph (b) does not apply to any local law, ordinance, or regulation exclusively relating to property valuation as a criterion for vacation rental if the local law, ordinance, or regulation is required to be approved by the state land planning agency pursuant to an area of critical state concern designation. (7) PREEMPTION AUTHORITY. — (a) The regulation of public lodging establishments and public food service establishments, inctuding, but not (imited to, sanitation standards, inspections, training and testing of personnel, and matters related to the nutritional content and marketing of foods offered in such establishments, is preempted to the state. This paragraph does not preempt the authority of a local government or local enforcement district to conduct inspections of public lodging and public food service establishments for compliance with the Florida Building Code and the Florida Fire Prevention Code, pursuant to ss. 551-.N and JU,2-Q�, (b) A local law, ordinance, or regulation may not prohibit vacation rentals or regutate the duration or frequency of rental of vacation rentals. This piragraph does not apply to any (ocat tAw, ordinance, or regulation adopted on or before June 1, 2011, (c) Paragraph (b) does not apply to any local lav,,, ordinance, or regulation exclusively retating to property valuation as a criterion for vacation rental If the total law, ordinance, or regulation is required to be approved by the state land planning agency pursuant to an area of critical state concern designation. IQ Short Term Rentals and Vacation Rentals Below are existing City Codes and Florida Statutes that can be used to help develop standards for regulating vacation and short-term rentals. -' City Code of Ordinances: i. Section 219-2. — Levy of tax. "The City hereby levies an occupational license tax upon every person exercising the privilege of engaging in or carrying on any business, profession or occupation within the City and authorizes the issuance of occupational licenses as authorized by Chapter 205, FS." ii Section 129-5 totax; amount oftax. The City currently has atax classification for lodging establishments based onthe number ofrooms orrental spaces. Fewer than Srooms orrental spaces is$78,15. {]lylI: |. Section 2-4(306) Tourist Home. There is currently a definition for tourist homes, asfollows: "Adwelling in which sleeping accommodations in not more than four (4) rooms are provided or offered for transient guests for compenaadon." ii. Section 6-4G(1)(c). The Parking Code currently establishes a parking ratio fortourist homes as follows: one /1\space per bedroom and one /1\space for the resident ovvner/nnanager. iii. Section 5'13. Uses Accessory toResidential Uses. The current Code allows accessory apartments, garage apartments and guest cottages on a residential lot so long as such accessory dwelling does not exceed 600 SF and meets the building setback requirements of the principal structure. iv. Section 6-15.Multi-family Development Standards. Short term rentals are expressly prohibited in a multi- family development that are under fee simple ownership or condominium form of ownership. c Florida Statutes: SectionS09 Public Lodging Establishments. Florida Statutes establishes a distinction between "transient public lodging establishments" and "non-transientpublic lodging establishments" aafollows: • Transient public lodging establishments: Renting of rooms or units to guests more than 3 times in acalendar year for aperiod of less than 30 days or 1 month, whichever is less. Advertised orheld out tothe public eaaplace regularly rented toguests. w Non-bransientpub|ic|udgingeetab|ishments":Renbngofnoomsorunitstoguestafnraperiodof at least 30 days or 1 month, whichever is less. Advertised or held out to the public as 'a place regularly rented to guests for a period of at least 30 days or 1 calendar month. w Does not apply to facilities or establishments licensed or regulated by AHCA or the Department of Health (so, does not apply to community residential homes and ALFs serving 6 or fewer residents per s.419.001,FS\ • Does not apply tounits orgroups ofunits rented for periods of at least 3Odays Vr2calendar month, whichever is less, that are not advertised or held out to the public as a place regularly rented for periods of less than 1 calendar month (but no more than 4 rental units in a single building complex) Section 509.032C4dd Preemption Authority. State preemption on vacation rentals in relative to prohibition of vacation rentals and the ability to regulate duration and frequency. |tdoes not state that local governments cannot regulate impacts, and it does not apply to the local government's or local enforcement district's authority to conduct inspections of public lodging establishments for compliance with the Florida Building Code and Florida Fire Prevention Code. Short Term Rentals and Vacation Rentals - Based on the findings above, staff makes the following recommendations. a) Amend Section 2-4, Article 11, Definitions, to update the existing tourist home definition and add a definition for "transient guest" using existing definitions in Florida Statues as follows: (3O6}Tourist Home. A dwelling, buildiingor structure inwhich sleeping accommodations innot more than four (4) rooms are provided or offered for transient guests for compensation. Tourist homes must meet the home b\ Amend Section 5-15i Specific use/development standards to create a new sub -section for tourist homes. 8e|ovv are recommended regulations that are intended to alleviate adverse impacts of tourist homes on surrounding neighborhood without regulating duration or frequency. *** § 5-15. —SPECIFIC USE/DEVELOPMENT STANDARDS. C. Tourist Homes. /1J Operation of a tourist home shall be subject to all applicable City business taxes under Chapter 205, F.S., and Article 119,Code VfOrdinances. Notourist home shall berented oroffered oradvertised for rent without an active Local Business Tax Receipt (BTR) and a valid Tourist Home Certificate. The Certificate and BTR must beupdated annually. (2) The owner of a tourist home shall designate a Responsible Party who will be the person or entity authorized by the property owner to obtain a Tourist Home Certificate and who: i. VNU be responsible for ensuring compliance with all regulations related to the operation of transient public lodging establishment or tourist home; Will be available to respond 24hours per day, 7days per week toany issue that arises relating to the tourist home; and iii. May bethe property owner. The designation ofaResoomjbkyPartydopsnotre|ievethepnopertyuvvner of the responsibility of complying with all state and local regulations. (3) An application for a Tourist Home Certificate shall include the following: 1. Business Name I Name, address and telephone number of the owner/operator of the tourist home 3. Name, address and telephone number ofthe responsible party 4. Tourist Home Affidavit; 5. A survey or site plan, drawn to -scale, demonstrating how parking will be provided and identifying any proposed improvements tothe property; and 6. A floor plan of the tourist home and the rooms that may be rented or offered for rent to transient guests. Maximum nffour (4) rooms may berented nroffered for rent totransient guests. ORDINANCE 2022- (LDC Updatefor Tourist i e • • i - .�J AN ORDINANCE OF THE CITY OF OCOEE, FLORIDA, AMENDING THE CITY OF OCOEE LAND DEVELOPMENT iiE, ARTICLE 11, SECTION DEFINITIONS AND ARTICLEiSPECIFIC USE/DEVELOPMENT STANDARDS RELATING TO TOURIST HOMESNACATION HOMES/SHORT-TERM RENTAL UNITS; PROVIDING FOR CODIFICATION; PROVIDING FOR CONFLICT; PROVIDING FOR SEVERABILITY; PROVIDING AN EFFECTIVE DATE. WHEREAS, as provided in Article VIII of the Constitution of the State of Florida and Chapter 166, Florida Statutes, the City of Ocoee (the "City") enjoys all home rule authority, police power, land development and zoning authority, and governmental and proprietary powers necessary to conduct municipal government and perform municipal functions; and WHEREAS, the City may exercise any power for municipal purposes, except as expressly prohibited by law; and WHEREAS, the City has experienced, within its jurisdictional limits, an increase in the tourist home, vacation home and short-term rental industry; and WHEREAS, the City has found it is necessary to protect existing adjacent properties from potential adverse impacts of such tourist home, vacation home and short-term rental industry and to ensure the health, safety and general welfare of the public; and WHEREAS, on April 12, 2022 and May 10, 2022, the Planning and Zoning Commission, acting as the Local Planning Agency, held an advertised and publicly noticed public hearing and recommended approval of an amendment proposed by staff to revise Sections 2-4 and 5-15 of the City of Ocoee Land Development Code ("LDC") in accordance with Section 559-955, Florida Statutes, relating to home -based businesses; and WHEREAS, the Ocoee City Commission in good faith determines that this Ordinance is in the best interest of the City and its residents and promotes the health, safety, and welfare of the • • and WHEREAS,• •. • advertisement and duly noticed public ^ter n • on the Ordinance on '.:. daOcoee City Commissionppro -• the amendments • Sections 2-4 and 5-15 of the LDC. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY OF •FLORIDA, SECTION 1. RECITALS. The foregoing recitals are hereby ratified and confirmed as true and correct and incorporated herein by this reference. SECTION 2. AUTHORITY. The Ocoee City Commission has the authority to adolm this Ordinance pursuant to Article Vill of the Constitution of the State of Florida and Chapte 163 and 166, Florida Statutes, i SECTION 3. AMENDMENT OF THE ILDC. Sections 2-4 and 5-15 of the City of Ocoee Land Development Code are hereby amended to read as depicted in Exhibit "A" wi*, underlines representing additions and strike-throughs representing deletions. SECTION 4. CONFLICT. All Ordinances or parts of Ordinances, Resolutions, or parts of Resolutions in conflict herewith are hereby made ineffective to the extent of such conflict. SECTION 5. SEVERABILITY. If any section, subsection, sentence, clause, phrase, or portion of this Ordinance is for any reason held invalid or unconstitutional by any court of competent jurisdiction, such portion shall be deemed a separate, distinct, and independent provision and such holding shall not affect the validity of the remaining portion hereto SECTION 6. CODIFICATION. It is the intention of the Ocoee City Commission th"-" the provisions stated in this Ordinance shall become and be made a part of the Code Ordinances of the City; and that sections of this Ordinance may be renumbered or re -letter and the word "ordinance" may be changed to "chapter", "section", "article", or such oth appropriate word or phrase in order to accomplish such intentions; and regardless of wheth such inclusion in the Code is accomplished, sections of this Ordinance may be renumbered re -lettered and the correction of typographical errors which do not affect the intent may authorized by the City Manager, without need of public hearing, by filing a corrected or r codified copy of same with the City Clerk, I SECTION 7. EFFECTIVE DATE. This Ordinance shall become effective immediately upon passage and adoption. PASSED AND ADOPTED this _ day of 2029 [Space intentionally blank] -2- APPROVED: CITY OF OCOEE, FLO Melanie Sibbitt, City Clerk Rusty Johnson, Mayor (SEAL) FOR USE AND RELIANCE ONLY BY THE CITY OF OCOEE, FLORIDA; APPROVED AS TO FORM AND LEGALITY this day of 2022. m City Attorney ADVERTISED 2022 READ FIRST TIME 112022. READ SECOND TIME AND ADOPTED ,12022. UNDER AGENDA ITEM NO. m IMNIOU" Changes are hereby made to Sections 2-4 and 5-15, as follows, with underline representing additions and strike -through representing deletions: UM14 (308) Tourist Mome. A dwelling,_bMLildinq 2r structure in which sleeping pDd bathing accommodations in not more than four (4) rooms are provided or offered for transient guests for compensation. Tourist homes must meet the criteria established in Section 5-15C Article V. • occ oied unit or room is not the s le residence of th shall include the followiM. 11MM-11=1 I 4, Tourist Home Affidavit, -4- • ided and Ment►and 61_ A floor la d • offered for ts for habitable sle accommodations. 20�i of the touri ssue that aftes relatibgIgIbqjqgri�� iii. m of a Res onsible Part does • relieve t • local re, ulations. •. with tbg_pprking Is • nances as well as local and stat b ildim and fire safet re ulations. -5-