Council members Chip Henderson and Jenny Hill
A new plan for Short Term Vacation Rentals (STVRs) in Chattanooga would ban them from R-1 - except for those that were approved earlier.
A City Council committee on Tuesday discussed a possible new code that would do away with the overlay map in which certain council members opted out from having any rentals in their districts.
Instead, new STVRs would be allowed in R-3 and R-4 multi-family structures with a limit of 25 percent of the units. They could also be in any commercial zone that allows residences. They could also be in duplexes where the owner lived in the other side. For a triplex, one of the three units could be a STVR.
Dr. Chris Acuff, UTC professor who is serving as an advisor to the City Council, said Knoxville and Nashville have also moved away from STVRs in R-1.
The proposal as presented by Chris Anderson of the mayor's office includes a $500 application fee and annual $500 renewals. Councilman Chip Henderson, who heads the committee, said he could go along with the initial $500 fee, but said that much on renewals seemed excessive. He said fees should be based on enforcement costs.
Officials said only one person now is involved in rental enforcement and more staff is needed.
There would be a seven-member appeals board to hear STVR issues, and the City Council would not be involved. Enforcement would go to an administrative law judge rather than to City Court. It was noted that the former could issue fines of up to $500 per day, while City Court is limited to $50.
A person setting up a new owner-occupied rental would have to do so in their personal name, not an LLC.
Jermaine Freeman, city Economic Development director, expressed concern that a new push for rentals in multi-family buildings would decrease opportunities for builders using some space for workforce housing.
Some STVR operators at the meeting were concerned about the move away from R-1, stating that many visitors would prefer to stay in a neighborhood rather than a multi-family setting.
They said the rentals have grown to around a $400 million economic force in the city.
One operator said with the move that rentals would eventually disappear from R-1 since a person selling their property could not pass on the permit to the new owner. Councilman Henderson said it should make the existing ones (already approved) popular with visitors who want the neighborhood atmosphere.
Another attendee at the meeting welcomed the move, saying a number of home owners did not want a STVR next door.
The plan is to have the full City Council discuss it again. Councilman Henderson said he is not convinced that the current proposal could pass.
It would go to the Planning Commission on Dec. 12 and to a City Council committee on Jan. 10. The first vote would be Jan. 17 and final vote on Jan. 24, Mr. Anderson said.
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