AGEND A ITEMS #4E & 6A
October 10, 2017
ACTION
MEM ORAN DUM
October 6, 2017
TO:
FROM:
SUBJECT:
County Council
Jeffrey L. Zyonf« .nior Legislative Analyst
Action - Zoning Text Amendm ent 17-03, Accessory Residential Uses - Short-term Rental;
and Bill 2-16, Transient Housing - Licensing and Registration
ZTA 17-03
On September 25, 2017, the Committee (3-0) recommended approval of ZTA 17-03 with revisions to
Subsection 59.3.3.3.I.2.b and c as follows:
b.
c.
The dwelling unit used as
f!:
Short-Term Rental must be the [[applicant's]l property owner's
or owner-authorized resident 's primary residence, regardless of dwelling unit~
,,
If
the [[applicant]] property owner or owner-authorized resident is not present in the
residence, the property can be used as~ Short-Term Residential Rental for~ maximu m of
90 days inf!: calendar year.
If
the [[applicant]l property owner or owner-authorized resident
is physically present [[in]] and occupies the residence during the rental stay, there is no
limitatio n on the number of days the property can be used as
f!:
Short-Term Residential
Rental.
After the Commit tee meeting, a poll of Committee members indicated support for making the ZTA
effective on July 1, 2018. The delay in the effective date will give the Department of Health and Human
Services time to prepare to administer the licensing program under Bill 2-16.
The Committee in all other respects agreed with the Planning Board recommendation to include the
following limitatio ns on short-term residential rental:
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Allow only on sites without either a farm tenant dwelling or an accessory apartment.
Allow only if the site is the primary resident of the applicant.
Limit the maximu m rentals in a calendar year to 90 days, counting only when the owner or
authoriz ed resident is absent.
Limit the total number of adult overnight guests to six.
Limit the total number of adult overnight guests per bedroom to two.
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Require one off-street parking space for each rental contract, unless the online listing indica
tes that
vehicle parking is prohibited.
Background
Current code
Under the current code, the residential occupancy of a dwelling by a household is only
allowed on a
monthly or longer basis.
1
Shorter term residential living is prohibited. In 2015, the Counc
il amended tax
provisions to include any type of dwelling unit within the scope of hotel (transient lodgin
g) taxes.
2
The
result is the collection of transient lodging taxes from illegal uses.
3
All transient lodging facilities are required to be licensed by the Department of Health and Huma
n Services
(HHS).
4
The code treats all hostels, rooming houses, boardinghouses, and tourist homes
the same as
hotels. To date, only hotels and the Center for Leadership Excellence have applied for
and received
transient housing licenses.
5
No licenses have been issued for short-term residential rental
use.
The Department of Permitting Services (DPS) has received few complaints concerning
short-term
residential rentals. There are no ongoing enforcement actions by DPS. DPS refers compl
aints to HHS.
HHS stopped one owner from renting short-term by court order and has not fined any owner
for the short-
term rental use of residential property.
ZTAH istory
Zoning Text Amendment (ZTA) 16-03, Land Use - Bed and Breakfast was
introduced on
February 2, 2016.
It
would have amended the definition of a Bed and Breakfast and allowe
d a Bed and
Breakfast as a limited use in all residential and mixed-use (Commercial/Residenti
al) zones.
Councilmember Riemer was the lead sponsor of ZTA 16-03. On March 22, after a public
hearing, the
sponsor and the Chair of the Planning, Housing, and Economic Development Comm
ittee asked the
Planning Board to reconsider the ZTA and allow for more public outreach. On May 11, 2017,
the Planning
Board approved revised recommendations to ZTA 16-03. Because the recommenda
tions were
significantly different from ZTA 16-03, Staff recommended a new ZTA (ZTA 17-03)
to achieve the
Planning Board 's recommendations.
In:
addition, many of the Board 's recommendations more
clearly fell
under licensing requirements. To that end, Staff recommended revisions to Bill 2-16 to incorp
orated some
of the Planning Board 's recommendations.
Section 59.3.3.1.A. This is a typical restriction in zoning. A bed and breakfast and hotel are
generally allowed under separate
provisions. ZTA 17-03 would create a new short-term residential rental use.
2
Bill 14-15, amending Section 52- l 6(b ). Taxes are being collected under an agreement with
on-line host platform companies.
3
Average taxes collected from Airbnb has been $34,000 per month, with an upward trend
over the past 11 months. In May,
$48,631 was remitted. Taxing illegal income is well-established. AI Capone went to
jail for tax evasion for not reporting
illegal income. Even embezzled funds are subject to reporting and taxes (see James v. United
States, 366 U.S. 213 (1961)).
4
Chapter 54.
5
Under section 54-17, licensed property must have a use and occupancy permit issued
by DPS. Under Section 8-28, the
Department must issue such a permit if(amo ng other requirements) there is no violation oflaw.
As transient lodging in a single
dwelling unit is not allowed by zoning, the Department may not issue a use and occupancy
permit, thus making it impossible
to get licenses for transient housing outside of allowed hotels and bed and breakfast uses.
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Public Hearing
On September 12, 2017, the Council conducted a public hearing. The positive tenor and tone of the public
hearing is a credit to the Planning Department's work on this issue. Most testimony favored the Planning
Board's proposed approach, with some relatively minor amendments.
Hosts and potential hosts want to take advantage of the sharing economy without harsh restrictions. In
their opinion, short-term residential rentals can help make mortgage payments and property taxes
affordable. Hosts cited positive social interaction with their guests. One speaker asked for the ability to
have short-term rentals without constraints.
Home Owners Associations (HOAs) and condominiums wanted greater assurances that their rules apply.
If an association bars rentals, then no license should be issued to allow the use, in their opinion. Some
wanted the issuance of a license to be predicated on a statement from the appropriate association that the
short-term rental was allowed. In addition, they request a provision to bar a license if HOA dues are in
arrears.
Hotel owners do not want short-term residential rentals to have a competitive advantage. The hotel
industry supported the proposed ZTA as offering a more even regulatory playing field. Hotels are
currently subject to taxes, licensing, and inspections. Hotels would favor an additional requirement that
any advertisement for a short-term residential rental include the owner's state and local license number.
The Apartment and Office Building Association (AOBA) requested the opportunity for landlords to rent
some units on a short-term basis. The Association also asked for more enforcement authority for the
administering department, including subpoena power, among other recommendations.
The most critical testimony came from people and civic organizations who thought that the current illegal
status of short-term rentals was satisfactory. The testimony stated a concern that short-term residential
rentals will:
create nuisances (noise, traffic, underage drinking, litter, public urination, drugs, and other illegal
activities);
bring an influx of strangers to the neighborhood on a regular basis;
be unsafe because they do not meet fire and safety standards;
destabilize and disrupt communities by driving out long-term residents;
reduce the availability of affordable housing;
be an enforcement problem;
tum into party houses;
create parking problems; and
be overconcentrated in unincorporated areas of the County.
Assuming the Council would approve ZTA 17-03, some civic associations wanted some way of getting
contact information for the owner of the unit. These would want direct notice when a license is renewed,
or at least on-line notice similar to DHCA's website on the location of accessory dwelling units.
The Town of Somerset wanted assurance that the town would not be affected by the proposed legalization.
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Issues concerning ZTA 17-03
Why should the zoning code be changed at all?
By its enactment of Bill 14-15, the Council agreed with the County Executive's recommendation to tax
short-term residential rentals.
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Although licensing is required by the code, such licenses may not be issued
due to their illegal zoning status. The conflict between the licensing requirement and the zoning code
should be resolved.
There are certainly reasons to make the use legal. There are on the order of 1,400 dwelling units in the
County being offered and rented on-line. Short-term rentals offer an economic return for property owners.
Between April of 2010 and July 2017, the County has only received 30 complaint calls that described the
problem as transient housing.
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Tax collections for short-term rentals are averaging around $35,000 a month.
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Licenses cannot be issued.
There is no easy way to know who is undertaking this activity. The agreement between the County and
Airbnb for the payme nt of taxes
does not
allow for an audit trail.
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Enforced licensing will at least allow
the County to track the level of short-term rental interest, if not the activity. Licensing would also require
the licensee to maintain activity records.
What proble ms can be avoided?
In some cities, apartment buildings have been purchased for the purpose of renting out every unit as a
short-term rental. The result was a de facto hotel and the loss oflong -term living options for households.
In suburban areas, it has been reported that some single-family dwellings have been purchased by investors
for the same purpose. ZTA 17-03 as introduced requires that the dwelling unit used as a short-term rental
must be the applic ant's primary residence, regardless of dwelling unit type. (See lines 36-37.) This
provision would limit the number of units any individual may use for short-term rentals to one.
10
Residents want the opportunity to know their neighbors.
11
This is next to impossible when their neighbors
change every day. The Planning Board recommends that if the primary resident is not present in the
residence, the property can be used as a short-term residential rental for a maximum of 90 days in a
calendar year. (See lines 38-40.) This reduces, but does not eliminate, the concern. The Planning Board
did not recommend limiting the duration of rentals when the primary resident is present in the dwelling.
(See lines 40-43.)
Any dwelling unit that offers, for compensation, sleeping accommodations in the County was made subject
to the hotel tax.
A complaint for a specific reason such as noise or trash would only be counted as a short-term rental
complaint if the
complainer indicated that the source of the problem was a short-term rental.
8
It is impossible to determi ne if all the taxes owed by short-term residential rentals are being collected.
9
Testimony asserted that the County is the only jurisdiction in Maryland that has reached a payment agreeme
nt.
It
has been
said that the State has refused any similar type of agreement because it does not allow a means to audit
remissions.
10
The Apartment and Office Building Association did ask for the ability oflandlo rds to profit from short-ter
m rentals, but that
would run counter to the restrictions recommended by the Planning Board. The Committee did
not recommend the
Association's requeste d revision.
11
The neighbors whom residents may or may not know are the folk who want to use their property for short-ter
m residential
rentals. "The Bible tells us to love our neighbors, and also to love our enemies; probably because generall
y they are the same
people." G.K. Chester ton.
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Some testimony suggested that 90 days of rental with an absent owner was too long, while other testimony
suggested that it was too short. The Greater Colesville Civic Association recommended a 45-day limit.
The proposed 90-day requirement is the same duration as San Francisco's.
12
The City of New Orleans
allows a maximu m of 90 days of short-term rental without regard to the presence of an owner.
13
The cities
of Boulder, CO and Austin, TX have no limit.
14
Washington, D.C. is considering a 15-day limit.
The issue is a balancing act between neighbors' rights of cohesion and private property rights.
The
Committee recommended approval of the proposed 90-day limit when the owner or owner-
authority tenant was absent from the property.
Is the provision for on-site supervision adequate?
As introduced, ZTA 17-03 includes the following provision:
If
the applican t is not present in the residence, the property can be used as a Short-Term Residential
Rental for a maximum of 90 days in a calendar year.
If
the applicant is present in the residence
during the rental stay, there is no limitation on the number of days the property can be used as a
Short-Term Residential Rental.
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Testimony suggested clarifying this provision to state that "the property owner or an owner-authorized
resident of the property must be physically present and occupy the property during the short-term stay"
instead of using the term "applicant" and "present".
The Committee agreed with this clarification.
Are too many people allowed in a short-term rental?
Under ZTA 17-03 as introduced, the maximum number of occupants is limited by housing code health
standards; however, the total number of overnight guests in the short-term residential rental who are
18 years or older is limited to 6, and the total number of overnight guests over 18 years of age per bedroom
is limited to 2. Under this provision, a 3-bedroom house could have 6 adults.
This is different from the definition of a household in the current code, where there is a numeric limit for
the number of unrelate d individuals in a dwelling unit:
Household: A person living alone, or any one of the following groups living together as a single
housekeeping unit and sharing common living, sleeping, cooking, and eating facilities:
1.
any number of people related by blood, marriage, adoption, or guardianship;
2.
up to 5 unrelated people; or
3.
2 unrelated people and any children, parents, siblings, or other persons related to either of
them by blood, adoption, or guardianship.
Household does not include any society, club, fraternity, sorority, association, lodge, federation,
or like organization; any group of individuals whose association is seasonal in nature; or any group
of individuals who are in a group living arrangement as a result of criminal offenses.
http://sfist.com/2016/11/16/sf supes approve 60-day cap on rent.php
https://www.nola.gov/short-term-rentals/str-zoning-restrictions/
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https://bouldercolorado. gov/plan-develop/short-term-rentals,
https ://www.austintexas.gov/sites/default/files/files/Code Compliance/S TRs/Revised Ordinance .pdf
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Lines 38-43.
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If the definition of household were to be applicable to short-term residential rental property, any household
with 6 members must be related.
The Committee did not recommend changing the Planning Board
proposed limits.
Does the ZTA adequat ely address on-site parking?
As introduced, ZTA 17-03 would require one off-street parking space for each rental contract
unless
the
online listing indicate s that vehicle parking is prohibited. This provision does not require any off-site
parking spaces if the landlord indicates that parking is prohibited. This is not likely to reduce parking
demand.
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Zoning has different on-site parking requirements, ranging from zero to 2 spaces per dwelling
unit. Having one off-street parking space may not meet minimum zoning requirements, depending upon
when the unit was constructed.
The Planning Board proposal will not prevent parking problems. The Council may wish to limit licenses
to locations that provide off-street parking. The Council also could vary the parking required based on
transit availability, as suggested in testimony.
The Committee did not recommend changing the
Planning Board proposed limits.
Should ZTA 17-03 be amended to allow a bed and breakfast for more than 5 guest rooms and allow for
additional meal service under certain circumstances?
ZTA 17-03 was describe d in the public hearing advertisement as:
An amendm ent to the Montgomery County Zoning Ordinance to:
modify the definition of "Househ old Living";
define "Short-Term Residential Rental";
establis h limited use standards for short-term residential rental; and
generall y amend provisions allowing for short-term residential rentals.
It created a new use (short-term rentals). Its only connect ion to a bed and breakfast was to exclude a short-
term rental from the definition of a bed and breakfast. Staff expressed the belief that the requested
amendment was beyond the scope of the ZTA's advertisement.
The Committee recommended
introdu cing a separat e ZTA (ZT A 17-08) to address this issue.
BILL 2-16
On September 25, 2017, the Committee recommended amending Bill 2-16 as follows:
1.
2.
Make a violation of any provision of Article II or Article III a class A violation (lines 165-
166).
Require a license applicant to certify that:
a.
the applicant is the owner or owner-authorized agent of the facility (line 457);
b.
the applicant has provided notice to any applicable home owner association,
condominium, housing cooperative, and the owner of the unit or the owner's rental
agent, if the applicant is not the owner (lines 471-474);
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"The more things are forbidden, the more popular they become." Mark Twain
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2.
3.
4.
5.
the short-term rental is not prohibited by any home owner association,
condominium document or rental lease (lines 475-476);
d.
the applicant is current on dues owed to any home owner association, condominium
(lines 477-478);
e.
the applicant will have the license number and State Sales and Use Tax registration
number on any on-line listing (lines 481-482).
Licenses and license renewal require the Director to find compliance with applicable laws
and the certification required by the licensee (line 495-496).
Allow challenges to occur for short-term rental licenses (line 501).
Allow municipalities, condominium associations, and housing cooperatives to challenge a
license (lines 506-509).
Revise the text on a license suspension to define the reason to suspend a license as a
violation of the license certifications or of the County Code; three violations within any
12-month period would warrant suspension of the license (lines 519-520).
c.
After the Committee meeting, a poll of Committee members indicated support for making the Bill
effective on July 1, 2018. The delay in the effective date will give the Department of Health and Human
Services time to prepare to administer the licensing program.
Backgrou nd
This Bill anticipates the approval of ZTA 17-03, which will make Bed and Breakfast a limited use in most
residential and mixed-use zones.
Short-term residential licensing in the attached draft of Bill 2-16 would require:
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Compliance with zoning
Maximum occupancy consistent with zoning
Limiting rentals to habitable rooms
A carbon dioxide detector for units with natural gas
No code violations in the past year (for new licenses)
Operating sanitation facilities
Paid taxes
Site of the rental is the primary residence of the applicant
The applicant is the owner or is authorized by the owner to apply
Posted rules and posted contact information for a designated representative
A record of guests
Notice to neighbors of the application request
Certification that the rental is allowed by the HOA, or condominium restrictions if applicable
Licenses issued for a one-year term.
What is the fiscal impact ofBill 2-16?
The Executive estimates that the licensing program envisioned under Bill 2-16 would require total
expenditures of $213,947 in FY18 and $211,094 every year thereafter. The Bill calls for on-line filing
and self-certification. The first-year operating cost for Information Technology is estimated at $157,500
in FY18 and $102,500 every year after FY18.
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There would be revenues from licensing fees available to offset expenditures. The Executive assumed an
annual fee of $100 per license. At that fee, and with 100% compliance, total annual revenue would be
$140,000 per year. On an annual basis, the Executive would anticipate a net cost of Bill 2-16 of $71,094
($211,094 minus $140,000).
This expenditure estimate is based on traditional complaint-based enforcement. More funds will be
required for proactive enforcement.
Who should enforce short-term residential licensing?
The Planning Board suggested that the Council consider having one agency responsible for both short-
term and long-term rentals. The current code splits that responsibility between HHS (transient/short-term
rentals) and DHCA (long-term rentals). The Apartment and Office Building Association recommended
enforcement by DHCA; the Department already has subpoena power.
17
The current code requires the licensing of all transient rental units; however, the focus of HHS in this area
has been on hotels. DHCA licenses long-term residential rental and administers approval of accessory
dwelling units.
Staff asked Executive staff about changing the jurisdiction of non-hotel transient housing to DHCA, but
Executive staff continues to believe that HHS is the more appropriate administrator. This will result in
two agencies issuing rental licenses of various types. In Staffs opinion, the issues concerning short-term
rentals are more like the issues surrounding accessory dwelling units than hotels. Staff, if asked, would
recommend assigning DHCA this responsibility.
The Committee supported the Executive's
recommendation to retain HHS responsibility for short-term housing.
This division of responsibility
would retain DHCA's focus on long-term housing.
Should there be proactive enforcement of licensing requirements?
There are many activities in the County that go unnoticed. Short-term residential rentals are different in
that listings are posted (without street addresses) on relatively few on-line web platforms. There are third-
party resources who, for a fee, would match valid licenses against on-line postings. The purpose would
be to assure compliance with the requirement to obtain a license.
Enforcement, or lack thereof, is critical if the County wants any regulatory control of short-term rentals.
Generally, enforcement issues are left to the Executive.
The Committee recommends leaving all issues
of enforcement up
to
HHS.
Should on-site inspections be required before licensing?
As proposed, licensing would be issued based on an on-line self-certification process. As proposed, it
would be easy, efficient, and inexpensive. Some testimony suggested that public safety inspections are
warranted before the issuance of a license. Such inspections are being considered in the District of
Columbia.
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Montgomery Code §29-6( e).
http://www.nbcwashington.com/news/locaVShould-Every-Airbnb-Unit-Be-Inspected-DC-Bill-Would-Require-It-
431620733.html
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Inspections would involve time and expense.
It
would likely lead to fewer licenses, but not fewer short-
term rental units.
The Apartment and Office Building Association suggested County verification of elements certified in the
application. This too is inconsistent with an easy, efficient, and inexpensive process.
The Committee
did not recommend pre-licensing inspections.
Are the noticing requirements sufficient?
As proposed, neighbors must be given notice of a short-term residential license application. Testimony
suggested that notice also be given to any non-applicant owner (which would be a landlord), HOAs,
condominium associations, and municipalities.
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Testimony also suggests that the content of a notice
include the emergency contact information.
Testimony indicated that the outcome of the licensing process should be noticed and include challenges
and renewals to a license.
At some point, the burdens of noticing are greater than the benefits. This is a balancing act for the Council.
The Committee did not recommend requiring notice for license renewals.
Would the requirement for action on a license or a license renewal within 15 days result in the issuance
of a license
if
the time limit is not met?
The intent for the time limit was to provoke action. It was not to imply that an application was approved
unless disapproved within that time period.
If
the Council wants a process of approval unless disapproved,
it should state that intent.
The Committee did not recommend revisions.
Should the provision for compliance with HOA or condominium restrictions be revised?
Under the proposed licensing requirements, the applicant must certify that:
the application is permitted by any Home Owner's Association or condominium document, or a
rental lease ...
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Testimony suggested revising this provision to read: "the use [proposed] is not prohibited by any Home
Owner's Association or condominium document or a rental lease including an occupancy agreement of a
housing co-operative."
The general rule for legislative drafting is to express ideas in the positive form.
It
is the general rule of
the English language to avoid double negatives. Is something that is "not prohibited", allowed? The
answer is yes ... but is it easier to directly find a prohibition.
The Committee agreed with changing "is
permitted" to "is not prohibited".
Testimony suggested adding that notice be sent to "the representative of the common ownership community designated in
the annual registration filed with the Montgomery County Commission on Common Ownership Communities pursuant to
Montgomery County Code, Section 10B~7(a)". Staff does not believe that this is necessary in code and can be addressed in
guidelines or regulations.
20
Line 471-472.
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The Apartment and Office Building Association would have the license applicant attach the applicable
language in a lease, condominium, or home owner association document to the application. This request
seems extreme and was not recommended by the Committee.
The Association would further want a new provision that the license does not supersede any contracts
among individuals. This seems redundant to the provision that would not allow a license if it is prohibited
by such contracts. The Committee did not recommend this revision.
Should there be a requirement for current HOA dues paid?
Licensed rental housing, excluding transient housing, is subject to licensing under Chapter 29 of the Code.
Those licensing provisions prohibit the issuance of a license for a dwelling unit in a common ownership
community unless the owner certifies that the common ownership community fees for the dwelling unit
are no more than 30 days past due.
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Common ownership communities request an identical provision for any short-term rental license.
The
Committee recomm ended changes to this provision to be consistent with the long-term rental license
provision.
Should a licensee be required to post their license number and the state license number of their on-line
listing?
Enforcement will be easier if there is a requirement to post the County license number with the on-line
listing. Testimony also suggested requiring the host's State Vendor Identification number on any on-line
listing.
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This requirement was not included in Bill 2-16 as proposed.
The Committee recommended
this additional requirement.
Are the challenges to an existing or proposed license adequate?
There is an intent to allow challenges to both bed and breakfast and short-term residential rentals. As
drafted, challenges to licenses may be limited to bed and breakfast establishments.
The Committee
recommends deleting the words "bed and breakfast" in lines 493 and 495 and replacing with the
word "license".
Municipalities, condominium associations, and housing cooperatives may want the opportunity to
challenge a license or a license renewal. That provision is not currently allowed in the draft Bill.
The
Committee recommends including these entities in the list of parties that file a challenge (line 495).
Should the County require short-term residential rental platforms to do anything through legislation?
Testimony requested the County to require any on-line rental platform to provide a monthly listing of
units and to remove unlicensed units. Other testimony requested that on-line platforms give notice to
property managers regarding rentals at their property. The Apartment and Office Building Association
requested that platforms be required to provide a landlord with information on upcoming trip activity and
a summary year-to-date of activity at the property.
Sec. 29-19. Licensing procedures.
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The state has a 6% sales tax.
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The ZTA and the Bill put requirements on the party with local property connections.
The Committee
did not make recommendations to impose obligations on short-term rental platforms but retained
the obligations of a licensee to provide information on their on-line advertisements.
Are the provision s for the suspension ofa license adequate?
As proposed, Bill 2-16 includes the following provision:
The license must be suspended for any applicant receiving at least three verified complaints within
a calendar year.
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Staff intended that verified complaint mean any action found to be a violation of the license or any other
aspect of County code. Noise and trash violations would be within the intended scope of a verified
complaint. Testimony suggested that a single verified complaint should warrant the suspension of a
license.
The provision used the term "within a calendar year". Testimony suggested that it would be better to say
within any 12-month period.
The Community Association Institute requested a provision to immediately suspend a license if the
governing body of a common ownership community submits proof of unpaid common ownership fees.
Staff expressed the belief that this situation may be efficiently handled by challenging at renewal. The
proposed provision states that each license "must be issued for a term of one year, renewable for additional
one-year terms, subject to payment of the license fee and compliance with all applicable laws".
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The Committee recommended adding a requirement that renewals comply with certification
requirements and the 3-violation rule would count violations within any 12-month period
(lines 518-
519).
Can HHS address violations under the Bill?
HHS staff noticed that the proposed Bill before the Committee on September 18 failed to make violations
of the new Article concerning short-term residential rental licensing subject to Class A violations.
The
Committee corrected that oversight by making Class A violations apply to Articles II and III
(lines
165-166). HHS was satisfied with this solution and did not believe that repeating the provision as
suggested in testimony was necessary. The Department also did not recommend specific subpoena
authority as a requirement for their enforcement.
Should the Bill be amended to require HHS to provide information ofshort-term rental licenses?
Staff suggested that the regulating Department could post maps and contact information of licensees and
their status.
The Committee did not recommend that the Bill be amended to require HHS to provide maps and
data (as on DHCA's site) on accessory dwelling units.
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Lines 505-506.
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Lines 486-488.
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Can municipalities opt out of the proposed regulatory scheme?
Except for Brookeville, Poolesville, Laytonsville, Rockville, Barnesville, Gaithersburg, and Washington
Grove, all municipalities are subject to the County's zoning code. The Town of Somerset has requested
an exemption for and change to the illegal status of short-term residential rental. Staff knows of no
municipal exemptions in the current code.
Chapter 54 of the code is different from zoning. Municipalities may opt out by their own action. The
towns of Chevy Chase View, Chevy Chase, Gaithersburg, Garrett Park, Glen Echo, Laytonsville,
Poolesville, Rockville, Somerset, and Washington Grove are NOT subject to the provisions of Chapter 54.
ZTA 17-03 requires any short-term rental to have a license under Chapter 54. Any municipality that opts
out of Chapter 54 could not have licenses approved by the County within its jurisdiction. Under these
circumstances and under the proposed text, the Zoning Ordinance would not allow a legal short-term rental
in a municipality that that opts out of Chapter 54.
This Packet Contains
ZTA 17-03 revised per PHED recommendations
Bill 2-16 revised per PHED recommendations
©number
1- 9
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Zoning Text Amendment No.: 17-03
Concerning: Accessory Residential
Uses - Short-Term Rental
Draft No. & Date: 2 - 9/19/17
Introduced: June 13, 2017
Public Hearing: September 12, 2017
Adopted:
Effective:
Ordinance No.:
COUNTY COUNCIL FOR MONTGOMERY COUNTY, MARYLAND
SITTING AS THE DISTRICT COUNCIL FOR THAT PORTION OF
THE MARYLAND-WASHINGTON REGIONAL DISTRICT WITHIN
MONTGOMERY COUNTY, MARYLAND
Lead Sponsor: Council President at the request of the Planning Board
AN AMENDM ENT
to the Montgomery County Zoning Ordinance to:
modify the definition of "Household Living";
define "Short-Term Residential Rental";
establish limited use standards for short-term residential rental; and
generally amend provisions allowing for short-term residential rentals
By amending the following sections of the Montgomery County Zoning Ordinance,
Chapter 59 of the Montgomery County Code:
DIVISION 59.1.4.
Section 59.1.4.2.
DIVISION 59-3.1.
Section 59-3.1.6.
DIVISION 59.3.3.
Section 59.3.3.3.
DIVISION 59-3.5.
Section 59-3.5.6.
DIVISION 8.2.
Section 8.2.3.
DIVISION 8.3.
Section 8.3.2.
"Defined Terms"
"Specific Terms and Phrases Defined"
"Use Table"
"Use Table"
"Residential Uses
"Accessory Residential Uses"
"Commercial Uses"
"Lodging"
"Residential Floating Zones"
"Use Table for the RT and R-H Zones"
"Planned Unit Development Zones"
"PD Zone"
And
adding the following section:
Section 3.3.3.I.
"Short-Term Residential Rental"
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EXPLANATION: Boldface
indicates a Heading or a defined term.
Underlining indicates text that is added to existing law by the original text
amendment.
[Single boldface brackets] indicate text that is deleted.from existing law by
original text amendment.
Double underlining indicates text that is added to the text amendm ent by
amendment.
[[Double boldface brackets]] indicate text that is deleted.from the text
amendm ent by amendment.
* * *
indicates existing law unaffected by the text amendment.
OPINION
Zoning Text Amendment No. 17-03 was introduced on June 13, 2017 to allow for short-term
residential rental under certain circumstances, including a requirement for a short-term rental
license under Bill 2-16.
In its report to the Council, the Montgomery County Planning Board recommended approval as
introduced with the approval of Bill 2-16 as revised.
The County Council held a public hearing on September 19, 2017 to receive testimony
concerning the proposed text amendment. Some wanted the issuance of a license to be
predicated on a statement from the appropriate association that the short-term rental was allowed.
In addition, they request a provision to bar a license if HOA dues are in arrears.
Hotel owners do not want short-term residential rentals to have a competitive advantage. The
hotel industry supported the proposed ZTA as offering a more even regulatory playing field.
Hotels are currently subject to taxes, licensing, and inspections. Hotels would favor an
additional requirement that any advertisement for a short-term residential rental include the
owner's state and local license number.
The Apartment and Office Building Association (AOBA) requested the opportunity for landlords
to rent some units on a short-term basis. The Association also asked for more enforcement
authority for the administering department, including subpoena power among other
recommendations.
The most critical testimony came from people and civic organizations who thought that the
current illegal status of short-term rentals was satisfactory. The testimony stated a concern that
short-term residential rentals will:
create nuisances (noise, traffic, underage drinking, litter, public urination, drugs, and
other illegal activities);
bring an influx of strangers to the neighborhood on a regular basis;
be unsafe because they do not meet fire and safety standards;
destabilize and disrupt communities by driving out long-term residents;
®
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reduce the availability of affordable housing;
be an enforcement problem;
turn into party houses;
create parking problems; and
be overconcentrated in unincorporated areas of the County.
The text amendment was referred to the Planning, Housing, and Economic Development
Committee for review and recommendation.
The Planning, Housing, and Economic Development Committee held worksessions on
September 18, 2017 and September 25, 2017 to review the text amendment.
On
September 25, 2017, the Committee (3-0) recommended approval of ZTA 17-03 with revisions
to Subsection 59.3.3.3.I.2.b and c as follows:
b.
The dwelling unit used as g Short-Term Rental must be the [[applicant's]] property
owner's or owner-authorized resident's primary residence, regardless of dwelling unit
~
c.
If
the [[ applicant]] property owner or owner-authorized resident is not present in the
residence, the property can be used as g Short-Term Residential Rental for g maximum of
90 days in g calendar year.
If
the [[applicant]] property owner or owner-authorized
resident is physically present [[in]] and occupies the residence during the rental stay,
there is no limitation on the number of days the property can be used as g Short-Term
Residential Rental.
The Committee in all other respects agreed with the Planning Board recommendation to include
the following limitations on short-term residential rental:
>
>
>
>
>
>
Allow only on sites without either a farm tenant dwelling or an accessory apartment.
Allow only if the site is the primary resident of the applicant.
Limit the maximum rentals in a calendar year to 90 days, counting only when the owner
or authorized resident is absent.
Limit the total number of adult overnight guests to six.
Limit the total number of adult overnight guests per bedroom to two.
Require one off-street parking space for each rental contract, unless the online listing
indicates that vehicle parking is prohibited.
The District Council reviewed Zoning Text Amendment No. 17-03 at a worksession held on
October 10, 2017. The Council agreed with the Committee's recommendation to approve
ZTA 17-03 as amended.
For these reasons, and because to approve this amendment will assist in the coordinated,
comprehensive, adjusted, and systematic development of the Maryland-Washington Regional
District located in Montgomery County, Zoning Text Amendment No. 17-03 will be approved as
amended.
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ORDINANCE
The County Council for Montgomery County, Maryland, sitting as the District Council for
that portion of the Maryland-Washington Regional District in Montgomery County, Maryland,
approves the following ordinance:
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Zoning Text Amendment No.: 17-03
1
Sec. 1. DIVISION 59.1.4 is amended as follows:
Division 59.1.4. Defined Terms
2
3
4
5
6
* * *
Section 59.1.4.2. Specific Terms and Phrases Defined
In this Chapter, terms that are not specifically defined have their ordinary meaning.
The following words and phrases have the meanings indicated.
*
*
7
8
9
*
Shooting Range (Outdoor):
See Section 3.5.10.J.1
Short-Term Residential Rental:
See Section 3 .3 .3
.I
*
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11
* *
Sec. 2. DIVISION 59-3.1 is amended as follows:
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15
*
*
*
Section 3.1.6. Use Table
The following Use Table identifies uses allowed in each zone. Uses may be
modified in Overlay zones under Division 4.9.
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Zoning Text Amendment No.: 17-03
Residential
Residential
Residential Detached
Townhouse
Residential
Multi-Unit
Rural
Definitions
Commercial/
Residential
Employment
Ag
Residential
USE OR USE
GROUP
and
Standards
AR
R RC RNC RE-2
RE- RE- R- R- R- R-
2C 1 200 90 60 40
TLD TMD THD
R- R-
30 20
R-10 CRN CRT CR GR NR LSC
EOF
* * *
RESIDENTIAL
* * *
ACCESSORY
RESIDENTIAL USES
***
3.3.3.
* * *
Short-Term
Residential
Rental
3.3.3.1
1
1 1 1
1
1 1 1 1 1 1
1
1
1
1 1
1
1
1
1
1 1 1
1
* * *
17
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Sec. 3. DIVISION 59.3.3 is amended as follows:
DIVISION 59.3.3. Residential Uses
Section 3.3.1. Household Living
A.
Defined, In General
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Household Living means the residential occupancy of a dwelling unit by a
household [on a monthly or longer basis] for 30 consecutive days or longer.
*
* *
* *
Short-Term Residential Rental
1.
Defined
Section 59-3.3.3. Accessory Residential Uses
*
I.
28
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Zoning Text Amendme nt No.: 17-03
29
Short-Term Residential Rental means the residential occupan cy of£!
dwelling unit for
f!
fee for less than 30 consecutive days. Short-Term
Residential Rental is not
£!
Bed and Breakfast.
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2.
Use Standards
Where Short-Term Residential Rental is allowed as
fl
limited use,
must satisfy the following standards:
a.
Short-Te rm Residential Rental is prohibited in
fl
Farm Tenant
Dwelling or on
£!
site that includes an Accessory Apartme nt.
i1
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b.
The dwelling unit used as
f!
Short-Term Rental must be the
[[applicant's]] property owner's or owner-authorized resident' s
primary residence, regardless of dwelling unit
~
C.
If the [[applicant]] property owner or owner-au thorized resident
is not present in the residence, the property can be used as
f!
Short-Term Residential Rental for
f!
maximum of 90 days in
f!
calendar year. If the [[ applicant]] property owner or owner-
authorized resident is physically present
[[!!1}]
and occupies the
residence during the rental stay, there is no limitatio n on the
number of days the property can be used as
f!
Short-Te rm
Resident ial Rental.
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d.
e.
The use must be licensed under Chapter 54.
The maximum number of occupants is limited by Chapter 26,
Section
~
however, the total number of overnigh t guests in the
Short-Te rm Residential Rental who are
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18.
years or older is
limited to six, and the total number of overnight guests over
18_
years of age per bedroom is limited to two.
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Zoning Text Amendm ent No.: 17-03
54
55
f.
One off-street parking space must be provid ed for each rental
contract unless the online listing indicates that vehicle parking
is prohibited.
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*
* *
Sec. 4. DIVISION 59-3.5 is amended as follows:
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59
Division 3.5. Commercial Uses
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*
A.
*
*
Define d, In General
Lodgin g means a building.1 dwellin g unit, or
~
portion of~ dwelling unit used
for the short-term overnight accommodation of paying guests.
Section 3.5.6. Lodging
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B.
Bed and Breakfast
1.
Defined
Bed and Breakfast means a detached house that is owner-occupied
with no more than 5 guest rooms for rent and customarily serves
breakfasts to guests. A Bed and Breakfast is not~ Short-Term
Residential Rental.
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*
*
*
Sec. 5. DIVIS ION 59-8.2 is amend ed as follows :
73
Division 8.2. Residential Floating Zones
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*
A.
*
*
Section 3.1.1 through Section 3.1.4 apply to the Use Table in Section 8.2.3.
The following Use Table identifies uses allowe d in each zone. Uses may be
modifi ed in Overlay zones under Division 4.9.
Section 8.2.3. Use Table for the RT and R-H zones
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B.
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Zoning Text Amendme nt No.: 17-03
USE OR USE
GROUP
RESIDENTIAL
Accessory
Residential Uses
Short-Term
Residential
Rental
Definitions
RT-6.0
and Standards
RT-8.0
RT-10.0
RT-12.5
RT-15.0
R-H
* * *
* * *
3.3.3
* * *
3.3.3.I
L
L
L
L
L
L
* * *
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Sec. 6. DIVISION 59-8.3 is amended as follows:
Division 8.3. Planned Unit Development Zones
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*
*
*
Section 8.3.2. PD Zone
*
B.
*
1.
*
Uses
Residential Uses
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*
*
*
C.
Short-Term Residential Rental is allowed as
Section 3.3.3.I.
~
limited use under
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*
*
*
Sec. 7. Effective date.
This ordinance becomes effective on July 1, 2018.
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This is a correct copy of Council action.
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96
Linda M. Lauer, Clerk of the Council
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Bill No.
2-16
Concerning: Transient
Housing
Licensing and registration
Revised:
9/25/17
Draft No.
=8_ _ __
Introduced:
February
2, 2016
Expires:
August
2, 2017
Enacted: _ _ _ _ _ _ _ _ __
Executive: _ _ _ _ _ _ _ __
Effective: _ _ _ _ _ _ _ _ __
Sunset Date: -.:...;.No=n-=e'--- -----
Ch. _ _ , Laws of Mont. Co. _ __
COUNTY COUNCIL
FOR MONTGOMERY COUNTY, MARYLAND
Lead Sponsor: Councilmember Riemer
Co-Sponsor: Councilmember Rice
AN ACT
to:
(1)
(2)
(3)
(4)
(5)
(6)
(7)
(8)
(9)
By amending
Montgomery County Code
Chapter 54, Transient Lodging Facilities
Sections 54-1, 54-2, 54-3, 54-4, 54-5, 54-6, 54-7, 54-8, 54-9, 54-10, 54-11, 54-12, 54-13, 54-
14, 54-15, 54-16, 54-17, 54-18, 54-19, 54-20, 54-21, 54-22, 54-23, 54-24, 54-25, 54-26, 54-
27, 54-28, 54-29, 54-30, 54-31, 54-32, 54-33, 54-34, 54-35, 54-36, 54-37, 54-38, 54-39, 54-
40, and 54-41
By adding:
Montgomery County Code
Chapter 54, Transient Lodging Facilities
Sections 54-22A, 54-42, 54-43, 54-44, 54-45, 54-46, 54-47, 54-48, and 54-49
Boldface
Underlining
[Single boldface brackets]
Double underlining
[[Double boldface brackets]]
*
* *
define a bed and breakfast and hotel establishment;
limit the transient housing allowed to a bed and breakfast and a hotel;
require only hotels to comply with most current licensing provisions for transient
housing;
revise the requirement for resident hotel management;
delete the requirement for annual hotel inspections;
add a requirement for hotel inspections upon complaint;
establish a licensing system for bed and breakfast establishments;
amend provisions to make them more precise, concise, and decisive; and
generally amend Chapter 54 of the County Code.
Heading or defined term.
Added to existing law by original bill.
Deletedfrom existing law by original bill.
Added by amendment.
Deletedfrom existing law or the bill by amendment.
Existing law unaffected by bill.
The County Council for Montgomery County!_Maryland approves the following Act:
(v
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BILL
No. 2-16
1
Sec.1. Sections 54-1, 54-2, 54-3, 54-4, 54-5, 54-6, 54-7, 54-8, 54-9, 54-10, 54-
11, 54-12, 54-13, 54-14, 54-15, 54-16, 54-17, 54-18, 54-19, 54-20, 54-21, 54-22, 54-
23, 54-24, 54-25, 54-26, 54-27, 54-28, 54-29, 54-30, 54-31, 54-32, 54-33, 54-34, 54-
35, 54-36, 54-37, 54-38, 54-39, 54-40, and 54-41 are amended as follows:
54-1. Definitions.
2
3
4
5
6
7
For the purposes of this Chapter, unless the language or context clearly
indicates that a different meaning is intended, the following words and phrases
have the following meanings:
Average lot grade
means the arithmetic average of the highest and lowest
elevations of the ground contiguous to the building.
Basement[:
That] means that portion of any building [which is] located below
grade [; provided, however, that] when at least one-half of the vertical height
extends above the average lot grade. [Average lot grade, for this purpose, shall
mean the arithmetic average of the highest and lowest elevations of the ground
contiguous to the house.]
[Boardinghouse:
A dwelling in which, for compensation, lodging, or lodging
and meals, are provided or offered to not more than 5 transient visitors.]
Bed and Breakfast
means~ [dwelling unit or part of~ dwelling that is available
to overnight guests for compensation. Overnight guests on any night must
satisfy the definition of one household. A guest must stay at
~
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9
1
o
11
12
13
14
15
16
17
18
19
20
21
Bed and
Breakfast for no more than 30 days in any one visit. Meals may be provided
to overnight guests. Bed and Breakfast means ~] detached house that is
owner-occupied with no more than 5 guest rooms for rent and customarily
serves breakfast to guests and allowed under Section 59-3.5.6.B of this Code.
Cellar
[:That] means that portion of any building which is located below grade
and whose vertical height extends less than one-half above the average lot
grade.
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@
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BILL
No. 2-16
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29
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Director [and Department:
The term "Director"] means the Director of the
Depart ment of Health and Human Services, or the Director's designee[, and
the term "Department" means the Department of Health and Human Services].
Depart ment
means the Department of Health and Human Services.
Establishment
[:
Every hostel, tourist home, boardinghouse, rooming house
and guestrooms in an apartment hotel which, for compensation, provides or
offers lodging or lodging and meals to transient visitors.] means
~
hotel or Bed
and Breakf ast or Short-term Residential Rental regulated under this chapter.
Fire Code
[:
The] means the Fire Prevention Code [set forth] in Chapter 22
[of this Code, and any amendments thereto] as amended.
Habitable room
[:
Any] means ~ room in which people normally congregate
or sleep with
~
minimum ceiling height of
Z
feet. [This shall not include
40
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bathrooms,] Bathrooms, closets, porches, decks, toilet rooms, storage rooms,
kitchens,. [or] and pantries are not habitable rooms.
[Hostel] Hotel
[:
Any] means ~ building or portion [thereof or any group of
buildings] of~ building where, for compensation, lodging or lodging and
meals are provid ed or offered to 3 or more transient visitors [, including hotels,
motels, tourist courts, motor courts, tourist camps and similar establishments
such as apartment hotels]. Hotel includes
f!
motel, but not
f!
bed and breakfast.
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Househ old
means ~ person living alone, or any one of the following groups
living together as
~
single housekeeping unit and sharing common living,
sleeping, cooking, and eating facilities:
1.
any number of people related
by
blood, marriage, adoption, or
guardianship;
!fil
to
~
unrelated people; or
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50
51
52
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BILL
No. 2-16
53
2.
unrelated people and any children, parents, siblings, or other
persons related to either of them
Qy
blood, adoption, or
guardianship.
[Liquid wastes:
Human excreta, bath water, wash water, laundry wastes,
dishwater and any other liquid wastes resulting from cleaning operations.
54
55
56
57
58
59
Gasoline and explosive or inflammable liquids are not included.]
Lodgi ng
[~
The] means the short-term overnight accommodation of~ paying
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guest.
Plumb ing Code
[:
The] means the Plumbing Code [in effect within the
jurisdiction of] adopted
Qy
the Washington Suburban Sanitary Commission,
[and any other jurisdictions in the County having or subsequently adopting a
Plumbing Code, and any changes or revisions thereof] as amended.
[Rooming house:
In a residential zone, shall mean a dwelling in which, for
compensation, lodging is provided or offered to 3 or more but not exceeding
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9 guests.]
Short-Term Residential Rental
means the residential occupancy of a dwelling
unit for a fee for less than 30 consecutive days as allowed under Section 59-
3.3.3.I of this Code.
Solid wastes
[:]
means garbage, trash, sweepings, animal refuse and dead
animals.
[Tourist home:
A dwelling in which, for compensation, lodging or lodging
and meals are provided or offered to not more than 12 transient visitors.]
Transient visitor
[:
A] mean s~ person who [obtains] purchases lodging,. [or
lodging and] with or without meals, [upon payment or promise of payment
71
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therefor at the same premises] for a continuous period of [not more than] 6
months or less.
54-2. Autho rity of [county executive] Execu tive to regulate and license.
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BILL
No.
2-16
80
The [county executive] Executive I,in order to implement the health standards
and regulations of this chapter, is hereby authorized by law to] may adopt
[such] regulations, under method (3) [of section 2A-15 of this Code],
concerning the operation, maintenance [and].,_ conduct-1 licensing, and license
fees for [of]£! [any of the types of establishments] hotel or bed and breakfast
(referred to in this chapter, including provision of such licenses and license
fees for such establishments as he may deem appropriate].
54-3. Guest register - Required [to be kept by hotels, tourist homes, etc.;
information
to
be shown].
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Any person who owns or operates a hotel, (rooming house, tourist home,
motel, or tourist cabin park] in the County must maintain on the premises a
permanent register [in which must be inscribed in ink in legible writing]
containing:
(a) the name of each visitor;
(b) the residence address of each visitor, including state, city or town, street
and street number or rural mail delivery route number;
the number of the room or facility occupied by each visitor; and
(
d) the date and time of registration and checkout of each visitor.
[In tourist homes, motels, and tourist cabin parks the] The register must
include a record of the license plate ·numbers and state of registration of any
automobiles or trailers [in or with which the guests are traveling] that guests
are using. The owner or operator of the establishment must see that the license
plate and automobile or trailer registration information is correct. A person
must not occupy any room [or facility] until [after] the registration required
under this section is provided. The permanent register may be in a bound
book, looseleaf book, or cards.
If
a looseleaf book or cards are used, the pages
or cards must be numbered consecutively before use and all numbered pages
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c)
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BILL
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or cards must be kept even though they are not used. The register [provided
for] required by this section must be kept for at least 3 years and must be open
to inspection upon the request of the Director or of any law enforcement
officer of the county or the state.
54-4. Same-G iving or permitting false information to be given prohibited.
[It shall be unlawful for any] A person must not knowingly [to inscribe] write
any false or incorrect name or address or license plate number in any such
register. [It shall be unlawful for the] The owner, [or] manager.,_ or employee
of [any type of establishment or any employee thereof]
§:
hotel must not [to]
knowingly [to] permit any person to [inscribe] write any false name or address
or license plate number in any such register.
Article
II. [Hostels, Rooming Houses, Boardinghouses and Tourist Hornes]
Hotels.
54-5. Number ing of rooms.
Every [establishment shall] hotel must have a unique number on the corridor
side of the door to each guest room [and no two (2) doors shall bear the same
number].
54-6. Limitation on admission of visitors.
[No establish ment shall] A hotel must not adm.it more visitors than the number
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for which it is licensed.
54-7. Inspection of register by county officials.
Registers kept [in accordance with] under section 54-3 [shall] must always be
available at the [establishment] hotel for inspection by the [director] Director,
the fire marshal, the [county] police chief and [such other officials as may be
designated by the above named officials] their designees. The licensee may
request the official to present [Presentation of] proper credentials or proof of
identity [may be requested by the licensee].
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BILL
No.
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54-8. Owner, operator or manager to reside on premises.
The owner, operator, or a responsible manager appointed by the owner or
operator [shall reside on the premises of] must be on-site at all times at each
[establishment] hotel.
54-9. Parking facilities.
Every [establishment shall] hotel must provide off-street automobile parking
for visitors as [is set forth in the zoning ordinance] required
QY
chapter 59 of
[the Montgomery County] this Code, as amended. [No license shall be issued
by the director unless he finds the required parking facilities have been
provided.]
54-10. Administration and enforcement of article generally.
The [director is hereby authorized and directed to] Director must administer
and enforce [the provisions of] this chapter with the assistance of other County
departments, as necessary. [All department heads in the county government
are hereby authorized and directed to provide such assistance as may be
required by the director for the purpose of enforcing this article.]
54-11. Right of entry of county officials.
[For the purpose of enforcing this article, the director] The Director, the fire
marshal, the [county] police chief and [such other officials as may be
designated by the above named county officials shall] their designee, upon
exhibiting the proper credentials or proof of identity, [have the right to] may
enter any [establishment for the purpose of making] hotel to make any
necessary inspection [they may deem necessary at any time] during business
or operating hours [, and at such]. Inspections may also occur at other times
[as] if the county officials find [may be necessary in the public interest] it
necessary to protect the health and safety of any person.
54-12. Responsibility for compliance with article.
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The owner or operator of [an establishment] f! hotel, and [his] the hotel's agent
or manager, [shall be] are responsible for [conforming to the provisions ofj
complying with this article.
54-13. Violation of article; penalties [and injunctive, etc., relief].
[Any person who violates] A violation of any provision of Article II or Article
III of this [[article]] [shall be] Chapter is [subject to punishment for] a class A
violation [as set forth in section 1-19 of chapter 1 of the County Code]. [Each
day such violation shall continue shall be deemed a separate offense.]
54-14. License required [Required].
[No] Any building [or premises shall be] occupied or used as a [hostel,
rooming house, boardinghouse or tourist home] hotel within the county
[unless a license shall have been issued] must be licensed for such occupancy
and use by the [director, nor shall any] Director. An operator off! [such
building or premises be so occupied and used] hotel must cease operating
immediately after [such] the license has expired, or has been revoked or
suspended.
54-15. Application.
Before the Director issues an annual license for any [establishment shall be
issued by the director] hotel under this [division, an application shall be filed
by] Division, the owner or operator, or [his duly] their authorized agent, [in
accordance with] must file an application that satisfies the regulations
[prescribed] approved by the [county executive] Executive under method (3)
of [[section]] Section 2A-15 of this Code.
54-16. Compliance with Code, [etc., prior to] before issuance.
[No license shall be issued to] The Director must not issue f! license to any
[establishment] hotel [to] under this [division] Division unless [such] the
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proposed [establishment is in conformance] hotel conforms with the
applicable provisions of this Code [and other ordinances of the county].
54-17. Certificates to be filed [prior
to]
before issuance.
The Director must not issue an initial [annual] license or license renewal under
this Division unless the applicant files [the following certificates have been
filed] with the Department
_g
certificate:
(a)
[A certificate] of use and occupancy from the Department of Permitting
Services[.];
(b)
[A certificate] from the fire marshal stating that the building [is in
compliance with] complies with the fire prevention code[.]; and
(
c)
[A certificate] from the Director stating that the building or buildings
and rooms to be occupied or used by the guests of the [establishment]
hotel, and the premises on which such buildings are located, [are in
compliance with] comply with the standards and regulations of the
County and State Boards of Health.
54-18. Separate license required for each establishment.
[Each individual establishment] The Director must reqmre each hotel,
[although] operated by the same management, [shall be required] to obtain a
separate license under this [division] Division.
54-19. Fees.
206
207
208
209
210
211
The Executive must establish annual fees for licenses under this [division shall
be of such amount as may be established by the county executive] Division
by [written] regulation adopted under method (3) of [[section]]Section 2A-15
of this Code~ [and shall] Fees must not exceed an amount necessary to defray
the costs of administering this [chapter] Chapter.
54-20. Denial where operator has been convicted of certain state law violations.
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The Director may deny an initial [or annual] license or license renewal to
operate [an establishment] a hotel under this Division if the Director finds the
owner or operator of the proposed [establishment has been] hotel was
convicted of violating the following provisions of the Criminal Law Article
of the Maryland Code:
(a) Section 10-202 (keeping disorderly house);
(b)Title 12 (gaming);
(
c) Title 5 (controlled dangerous substances, prescriptions, and other
substances); or
(
d) Section 10-201 (disturbing the public peace and disorderly conduct).
The Director may deny an initial [or annual license] or license renewal
if the owner or operator [has been] was convicted of any similar offense
outside Maryland.
54-21. Procedure for issuance or denial.
(a) [Upon receipt of] When an application for [an annual]
~
license under
this [division] Division, or [for renewal of a] when£! previously issued
license is in the renewal process, the [director shall make or cause to be
made] Director or the Director's designee must conduct all investigations
and inspections required by this article. The [director shall act upon]
Director must approve or deny the application within [ninety (90)] 90
days after the date of filing, or as soon thereafter as practicable. [In cases
in which an application] Applications for renewal of [an annual]
~
license [has been] filed on or before October 1 [as provided in section]
under Section 54-25 and [has] that have not been [neither] approved or
[disapproved] denied by the [director prior to] Director before the
following January 1, [the current license shall remain] remain in [full
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No. 2-16
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force and] effect until approved or denied by the Director [[the
application]] [has been acted upon by the director].
(b) If, [upon the completion of] after all investigations and inspections are
completed, the [director] Director finds that the [establishment] hotel
for which a license under this [division] Division is requested does not
[comply with the provisions] satisfy the requirements of this chapter, [he
shall] the Director must, within [ten (10)]
lQ
days after making such a
finding, [cause to be served upon the applicant written] transmit notice
of such finding to the applicant [and shall in sucht The notice must
advise the applicant of the necessary corrective measures to be taken
before [a license will be issued] the Director will issue the license. The
[
director] Director may [, in such notice,] direct the applicant to appear
[before him] within [ten (10)] 10 days from the date of service of the
notice to show cause why the license should not be denied.
If
the
applicant [shall fail] fails to show cause as directed in such notice, or
[shall fail] fails to take the necessary corrective action [specified
therein], the [director shall refuse to issue or renew such license] Director
may deny the application.
(c) [All] The Director must send all of the Director's orders and notices
[issued by the director hereunder shall be served upon] to the applicant
either by registered mail or by personal delivery at the address shown on
the application. If the applicant cannot be found in the [county] County,
service by personal delivery [shall] must be made [upon] to the person
who is [at the time] in charge of the [establishment] hotel.
258
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263
54-22. Display.
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[Each] The applicant must prominently display each license issued under this
[division shall be prominently displayed] Division in the [establishment] hotel
for which it was issued.
54-22A. Complaints
W
The Director must investigate any [[complaints]] complaint that~ licensee
is in violation of this Article within 30 days of receiving the
complaint[[/s./s]L.
@If
~
violation is found, the Director must issue written notice of the
violation to the owner or operator requiring that the violation be corrected
immediately.
(9)
If the violation is not corrected immediately, the Director may revoke or
suspend the license under Section 54-26.
54-23. Change of location of establishment; transfer.
(a) Whenever [an establishment]
~
hotel changes its location, the current
license held by such owner or operator under this [division shall
automatically become] Division is void.
(b) The [director] Director may [, in his discretion,] authorize the transfer of
a license issued under this [division] Division to a new owner or operator
upon an application for transfer of the license and payment of a transfer
fee [which shall be established by the county executiveL. The Executive
must establish the transfer fee by [written] regulation adopted under
method (3) of [[section]]Section 2A-15 of this Code.
54-24. Expiration.
All [annual] licenses issued under this [division shall] Division expire on
December 31 of the year for which they are issued, unless sooner revoked or
suspended [as provided in] under this [article] Article.
54-25. Renewal.
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[Every establishment shall, on] On or before July 1 of each year, every hotel
must make application to the department for renewal of the [annual] license
required by this [division] Division. Before [an annual]
~
license for any
[establishment shall be] hotel is renewed by the [director, the director shall
have received] Director, the Director must receive, [within ninety (90) days
prior to renewing any such license,] certificates as [prescribed in section]
required by Section 54-17 [, which shall indicate thereon that the premises
have been inspected within ninety (90) days prior to the expiration of the
license]. The Director must renew the license after receiving the certificates,
completing any outstanding complaint investigations, and finding that the
application satisfies this Article.
54-26. Revocation or suspension generally.
(a)
The [director] Director may revoke or suspend any license issued under
this [division upon finding] Division if the Director finds that the owner
or operator of any [establishment] hotel is in violation of any provision
of this [article] Article. Any such revocation or suspension [shall] must
be by written order directed to [and served upon] the owner or operator
of [[such establishment]] [in the manner prescribed in subsection (c) of
section 54-21] the hotel under the procedure~ of subsection
54-2l(c).
Any such notice of revocation or suspension [shall] must require the
holder of the license to appear before the [director] Director and show
cause why the license should not be revoked or suspended [in the
manner provided above].
(b)
The Director may revoke or suspend any license issued under this
Division if the Director finds that the [establishment] hotel is disruptive
to the general peaceful enjoyment, dangerous to the health and safety,
of the community or a nuisance because of noise or indecent or immoral
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No.
2-16
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activity by any guest, owner, operator or employee. The Director may
also revoke or suspend any license issued under this Chapter if the
owner or operator of the [establishment] hotel has, while operating the
[[establishment]] hotel, been convicted of violating:
(1) the provisions of the Criminal Law Article of the Maryland Code
[listed] in [[section]]Section
54-20;
or
(2) the drunkenness and disorderly conduct provisions of Section 10-
201 of the Criminal Law Article of the Maryland Code while on
the licensed premises.
Revocation or suspension of a license under this subsection must follow
the procedures in Section
54-21
(b ).
54-27. Appeals from denial, revocation or suspension.
Any person aggrieved by the denial, revocation or suspension of a license
under this [division] Division may appeal from the action of the [director]
Director to the [county board of appeals] Board of Appeals. Such person
[shall] must file a [written] notice of appeal with the clerk of the [board of
appeals] Board of Appeals within [twenty (20)] 20 days after service of notice
of such action. Upon receiving such appeal, the [board of appeals shall] Board
of Appeals must hold a hearing [thereon] within [thirty (30)] 30 days after the
337
338
339
340
341
342
343
344
notice of appeal has been filed, and [shall] must act upon [such] the appeal
within [thirty (30)] 30 days after the hearing. [The council may, by resolution
entered on its minutes, extend such periods of time.]
Division 3. Health Standards and Regulations.
54-28. Water and sewer facilities.
Water and sewer facilities in every [establishment] hotel must be connected
to public lines where such lines are available. [In the event no] When public
sewer lines are not available,. the [sewage must be collected, treated and
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disposed of in an independent sewerage system which complies with the
standards of the excreta disposal laws of the State and of] private sewage
system must satisfy Chapter 45 of this Code. [In the event no] When public
water lines are not available, [no] only~ water supply [may be used by an
establishment unless it has been] approved by the Director [of the Department
of Health and Human Services] may be used.
54-29. Plumbing facilities.
[All plumbing facilities in establishments shall be constructed, installed and
maintained so as to prevent sanitary hazards.] Toilet and bath facilities [shall
be provided in accordance with] must satisfy the plumbing code for the
Washington Suburban Sanitary Commission [and any amendments thereto]
as amended.
54-30. Disposal of solid waste.
All solid waste [at establishments shall] must be stored in covered metal
receptacles [which shall be]~ These receptacles must be removed from the
premises and cleaned at least once a week or as often as [prescribed by the
director] the Director requires. All such waste [shall be burned, buried or
otherwise] must be disposed of in [such]
54-31. [Screens.] Insects.
~
manner [as] that does not [to]
constitute a nuisance [or to be accessible to animals or flies].
[All outside doors, windows and other outside openings in establishments
shall be adequately screened against flies, mosquitoes and other insects.
If
the
establishment is completely air-conditioned, screening shall not be required.]
All interior spaces must be maintained free of all insects. Any infestation
must be immediately addressed
QY
management.
54-32. Minimum size of rooms.
(a) [No] Any habitable room [shall be occupied at] in
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No. 2-16
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[an establishment unless it contains]
~
hotel must be at least [seventy
(70)] 70 square feet in floor area and there must be at least [fifty (50)] 50
square feet of floor area for each person. Children under [twelve (12)]
11
years of age [shall be] are counted as one-half person. Children under
[one (1)]
l
year of age [shall not be] are not counted as~ person for the
purpose of this requirement.
(b) At least one-half of the floor area of every habitable room [shall] must
have a ceiling height of at least [seven (7)]
Z
feet, and the floor area of
that part of any room where the ceiling height is less than [five (5)]
2_
feet
[shall] is not [be] considered as part of the floor area in computing the
total floor area of the room for the purpose of determining the maximum
permissible occupancy [thereof] of the room.
54-33. Heating and ventilation.
All rooms in [establishments shall] hotels must be adequately heated and
ventilated. Every habitable room [shall] must have at least one [(1)] easily
opened window or skylight [which can easily be opened], or such other device
[as will] that adequately [ventilate] ventilates the room. Every [establishment
shall] hotel must have~ heating [facilities which are} system. The heating
system must be properly installed and maintained in safe and good working
condition [. Such heating facilities shall_be] capable of safely and adequately
heating all habitable rooms, bathrooms and water closet compartments to a
temperature of at least [seventy (70)] 70 degrees Fahrenheit at a distance of
[three (3))
1
feet above floor level upder ordinary minimum winter conditions.
54-34. Lighting.
All rooms in [establishments shall] hotels must be adequately lighted [by
either natural or artificial light and additional] including light [shall be
provided] for reading [purposes).
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400
401
402
403
404
405
406
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54-35. Basement rooms.
[No habitable room shall be in the basement of an establishment unless the]
Only when basement floors and walls are constructed of material impervious
to water~ may
c:!
habitable room be located in
£!
basement.
54-36. Cellar rooms.
A room in a cellar [shall not be considered] is not
fl
habitable room [and shall
not be used by any establishment for habitation].
54-37. Bedd ing and linen.
(a) All mattresses, blankets and other bedding used at [establishments shall]
hotels must be kept clean and free of bedbugs.
(b) Clean sheets and pillow slips [shall] must be provided in
[establishments] hotels at least once each week and after each
succeeding guest.
[(c) Two (2) clean towels shall be provided for each establishment guest at
least twice each week and after each succeeding guest.]
54-38. [Drinking glasses.] Reserved.
411
412
413
414
415
416
417
[Drinking glasses used in any establishment shall be sterilized at least after
each succeeding guest and common drinking glasses shall be prohibited.]
54-39. Food, dining rooms and kitchens.
418
419
420
421
422
423
424
Food, public dining rooms and kitchens in each [establishment shall comply
with the provisions of chapter] hotel must satisfy Chapter
U
of this Code [and
any amendments thereto] as amended.
54-40. Maintenance of premises.
Every owner or operator of [an establishment shall be]
fl
hotel is responsible
for maintaining all parts of the [[establishment]] hotel, in a clean and sanitary
condition [all parts of the establishment], including the land on which the
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No. 2-16
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[establishment] hotel is located. Every owner or operator [shall be] 1s
responsi ble for maintain ing the [establishment] hotel in good repair.
54-41. Inspections and report of violations of article.
The Departm ent [of Health and Human Services] is responsib le for making
all necessar y inspectio ns [of the establishments] regulated under this Article
and must report to the Director any violation s of this Division.
Article
III.
[Reserved] Bed and Breakfast and Short Term Residential Rental.
54-42. License required.
A person must not operate .§: bed and breakfas t or short term residenti al rental
in the County without .§: license issued by the Director.
After the initial
issuance of.§: license, the license must be renewed once
£1.
year.
54-43. Certification for!! License.
An applicati on for.§: bed and breakfas t license or short term residenti al rental
or .§: license renewal for either use must be signed by the applicant. The
applican t must certify that:
W
the building in which the bed and breakfas t or short term residenti al
rental is located complies with all applicab le zoning standard s under
Chapter 59 of this Code;
.(hl
[[the overnight occupants of each dwelling unit will satisfy the definition
of one household]] the total number of overnight guests in the short term
residential rental who are 18 years or older is limited to 6, and the total
number of overnigh t guests over 18 years of age per bedroom is limited
to 2.
(
c)
only habitable rooms will be used by guests;
smoke detectors in all units and carbon dioxide detectors in all units
using natural gas operate as designed;
@
W
sanitation facilities operate as designed;
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No. 2-16
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453
454
455
456
457
458
459
460
461
462
463
464
465
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467
468
469
470
ill
.(g}
the applicant has not been found guilty off! violation of this Chapter in
the past 12 months;
all local taxes and required fees are paid in full;
the dwelling unit where the bed and breakfast or short term residential
rental is located is the primary residence of the applicant; [[and]]
the applicant is the owner or owner-authorized agent of the facility~
the applicant posted rules and regulations inside the rental, including
contact information for a representative designated for emergency
purposes;
(hl
ill
ill
!kJ
the designated representative resides within 15 miles of the unit and be
accessible for the entirety of any contract where the primary resident is
not present:
ill
(m)
a record of all overnight visitors will be maintained and readily available
for inspection;
where applicable, the following parties were notified:
in a single-unit or attached unit, abutting and confronting neighbors.
in a multi-unit building, neighbors living across the hall and those that
share a ceiling, floor, and walls with the applicant's unit,
the municipality in which the residence is located,
any applicable home owner association, condominium, housing
cooperative, and the owner of the unit or the owner' s rental agent, if the
applicant is not the owner;
4 71
472
4
73
474
475
ID)
the application is not prohibited by any Home Owner 's Association or
condominium document. or a rental lease:
4
76
477
(QJ
the common ownership community fees for the dwelling unit are no more
than 30 days past due;
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No. 2-16
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479
480
481
482
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ui} except for persons visiting the primary resident, only registered guests will
be allowed on the property; and
(w
any on-listing rental listing will include the short-term residential rental
license number and State Sales and Use Tax registration number.
54-44. Applications.
The Director must establish an electronic method of submitting, 1ssumg,
renewing, denying, and revoking an application for £ license through the
internet.
54-45. License Approval and Renewal.
The Director must:
W
.(hl
accept the self-certification of the applicant after verifying compliance
by
reviewing available records; [[and]]
approve or deny~ license or£ license renewal within
U
working days
after receipt of the application and all required fees unless the Director
receives£ challenge to the certifications under Section 54-47([.J]; and
!£)
issue the license for a term of one year, renewable for additional one-
year terms, subiect to payment of the license fee and compliance with
all applicable laws and certifications required for the license.
54-46. Challenge to Certifications.
W
A challenge to any required certification made
by
the applicant may be
filed with the Director within 30 days after the application is filed by:
ill
ffi
£ resident or owner of real property located within 300 feet of~
licensed or proposed [[bed and breakfast]] license;
[[~
civic or homeowner' s association comprised of property
owners located within 300 feet of.§: licensed or proposed bed and
breakfast]] the municipality in which the residence is located,
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505
506
507
508
509
510
511
512
513
514
515
516
517
518
519
520
521
522
Q)
any applicable homeowners association, condominium, housing
cooperative, or
the owner of the unit or the owner's rental agent, if the applicant is
not the owner.
fil
ili)
The Director must, within 60 days after receipt of the challenge:
ill
ill
ill
ill
54-47. Suspension
provide notice of the challenge to the applicant;
provide an opportunity for the applicant to respond to the
challenge;
investigate the question of fact raised
by
the challenge; and
revoke or deny the license if the Director finds that one or more
facts certified
by
the applicant is false.
w
ail
The license must be suspended for any applicant receiving at least three
complaints that are verified as a violation of the license or of the County
Code within any 12-month period.
Renewal or reinstatement of licenses must follow procedures
established by the Director.
54-48. Appeals.
Any person aggrieved
!2y
an approval, denial, revocation or suspension of
_g
bed and breakfast license may appeal the decision to the Board of Appeals.
The Board of Appeals must hold~ hearing on the appeal within 30 days after
the notice of appeal has been filed, and must act on the appeal within 30 days
after the hearing.
523
524
525
526
527
528
529
530
[(54-48.l] 54-49. Effect of!! revocation.
For
~
period of
J
years after
~
license is revoked, the Director must not issue
_g
bed and breakfast or short-term residential rental license to:
.(fil
the former licensee or~ member of the former licensee's household; or
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F:\LAW\BILLS\1602 Transient Housin~c:e,nsing And Registration\Bill 8.Docx
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BILL
No. 2-16
531
532
533
534
535
.(hl
any applicant for~ license to use the same dwelling unit where the licen
was revoked.
se
Sec. 2. Effective date.
This Bill beco mes effective on July 1, 2018.
Approved:
536
Roge r Berliner, President, County Council
Date
537
Approved:
538
Isiah Leggett, Coun ty Executive
Date
539
This is a corr ect copy ofCouncil action.
540
Lind a M. Lauer, Clerk of the Council
Date
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F:\LAW\BILLS\1602 Transient Hous inJ~i ng And Registration\Bill
r
'-:?r
8 .Docx
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AGEND A ITEMS #4E & 6A
October 10, 2017
ACTION
MEM ORAN DUM
October 6, 2017
TO:
FROM:
SUBJECT:
County Council
Jeffrey L. Zyonf« .nior Legislative Analyst
Action - Zoning Text Amendm ent 17-03, Accessory Residential Uses - Short-term Rental;
and Bill 2-16, Transient Housing - Licensing and Registration
ZTA 17-03
On September 25, 2017, the Committee (3-0) recommended approval of ZTA 17-03 with revisions to
Subsection 59.3.3.3.I.2.b and c as follows:
b.
c.
The dwelling unit used as
f!:
Short-Term Rental must be the [[applicant's]l property owner's
or owner-authorized resident 's primary residence, regardless of dwelling unit~
,,
If
the [[applicant]] property owner or owner-authorized resident is not present in the
residence, the property can be used as~ Short-Term Residential Rental for~ maximu m of
90 days inf!: calendar year.
If
the [[applicant]l property owner or owner-authorized resident
is physically present [[in]] and occupies the residence during the rental stay, there is no
limitatio n on the number of days the property can be used as
f!:
Short-Term Residential
Rental.
After the Commit tee meeting, a poll of Committee members indicated support for making the ZTA
effective on July 1, 2018. The delay in the effective date will give the Department of Health and Human
Services time to prepare to administer the licensing program under Bill 2-16.
The Committee in all other respects agreed with the Planning Board recommendation to include the
following limitatio ns on short-term residential rental:
>
>
>
>
>
Allow only on sites without either a farm tenant dwelling or an accessory apartment.
Allow only if the site is the primary resident of the applicant.
Limit the maximu m rentals in a calendar year to 90 days, counting only when the owner or
authoriz ed resident is absent.
Limit the total number of adult overnight guests to six.
Limit the total number of adult overnight guests per bedroom to two.
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>
Require one off-street parking space for each rental contract, unless the online listing indica
tes that
vehicle parking is prohibited.
Background
Current code
Under the current code, the residential occupancy of a dwelling by a household is only
allowed on a
monthly or longer basis.
1
Shorter term residential living is prohibited. In 2015, the Counc
il amended tax
provisions to include any type of dwelling unit within the scope of hotel (transient lodgin
g) taxes.
2
The
result is the collection of transient lodging taxes from illegal uses.
3
All transient lodging facilities are required to be licensed by the Department of Health and Huma
n Services
(HHS).
4
The code treats all hostels, rooming houses, boardinghouses, and tourist homes
the same as
hotels. To date, only hotels and the Center for Leadership Excellence have applied for
and received
transient housing licenses.
5
No licenses have been issued for short-term residential rental
use.
The Department of Permitting Services (DPS) has received few complaints concerning
short-term
residential rentals. There are no ongoing enforcement actions by DPS. DPS refers compl
aints to HHS.
HHS stopped one owner from renting short-term by court order and has not fined any owner
for the short-
term rental use of residential property.
ZTAH istory
Zoning Text Amendment (ZTA) 16-03, Land Use - Bed and Breakfast was
introduced on
February 2, 2016.
It
would have amended the definition of a Bed and Breakfast and allowe
d a Bed and
Breakfast as a limited use in all residential and mixed-use (Commercial/Residenti
al) zones.
Councilmember Riemer was the lead sponsor of ZTA 16-03. On March 22, after a public
hearing, the
sponsor and the Chair of the Planning, Housing, and Economic Development Comm
ittee asked the
Planning Board to reconsider the ZTA and allow for more public outreach. On May 11, 2017,
the Planning
Board approved revised recommendations to ZTA 16-03. Because the recommenda
tions were
significantly different from ZTA 16-03, Staff recommended a new ZTA (ZTA 17-03)
to achieve the
Planning Board 's recommendations.
In:
addition, many of the Board 's recommendations more
clearly fell
under licensing requirements. To that end, Staff recommended revisions to Bill 2-16 to incorp
orated some
of the Planning Board 's recommendations.
Section 59.3.3.1.A. This is a typical restriction in zoning. A bed and breakfast and hotel are
generally allowed under separate
provisions. ZTA 17-03 would create a new short-term residential rental use.
2
Bill 14-15, amending Section 52- l 6(b ). Taxes are being collected under an agreement with
on-line host platform companies.
3
Average taxes collected from Airbnb has been $34,000 per month, with an upward trend
over the past 11 months. In May,
$48,631 was remitted. Taxing illegal income is well-established. AI Capone went to
jail for tax evasion for not reporting
illegal income. Even embezzled funds are subject to reporting and taxes (see James v. United
States, 366 U.S. 213 (1961)).
4
Chapter 54.
5
Under section 54-17, licensed property must have a use and occupancy permit issued
by DPS. Under Section 8-28, the
Department must issue such a permit if(amo ng other requirements) there is no violation oflaw.
As transient lodging in a single
dwelling unit is not allowed by zoning, the Department may not issue a use and occupancy
permit, thus making it impossible
to get licenses for transient housing outside of allowed hotels and bed and breakfast uses.
·
2
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Public Hearing
On September 12, 2017, the Council conducted a public hearing. The positive tenor and tone of the public
hearing is a credit to the Planning Department's work on this issue. Most testimony favored the Planning
Board's proposed approach, with some relatively minor amendments.
Hosts and potential hosts want to take advantage of the sharing economy without harsh restrictions. In
their opinion, short-term residential rentals can help make mortgage payments and property taxes
affordable. Hosts cited positive social interaction with their guests. One speaker asked for the ability to
have short-term rentals without constraints.
Home Owners Associations (HOAs) and condominiums wanted greater assurances that their rules apply.
If an association bars rentals, then no license should be issued to allow the use, in their opinion. Some
wanted the issuance of a license to be predicated on a statement from the appropriate association that the
short-term rental was allowed. In addition, they request a provision to bar a license if HOA dues are in
arrears.
Hotel owners do not want short-term residential rentals to have a competitive advantage. The hotel
industry supported the proposed ZTA as offering a more even regulatory playing field. Hotels are
currently subject to taxes, licensing, and inspections. Hotels would favor an additional requirement that
any advertisement for a short-term residential rental include the owner's state and local license number.
The Apartment and Office Building Association (AOBA) requested the opportunity for landlords to rent
some units on a short-term basis. The Association also asked for more enforcement authority for the
administering department, including subpoena power, among other recommendations.
The most critical testimony came from people and civic organizations who thought that the current illegal
status of short-term rentals was satisfactory. The testimony stated a concern that short-term residential
rentals will:
create nuisances (noise, traffic, underage drinking, litter, public urination, drugs, and other illegal
activities);
bring an influx of strangers to the neighborhood on a regular basis;
be unsafe because they do not meet fire and safety standards;
destabilize and disrupt communities by driving out long-term residents;
reduce the availability of affordable housing;
be an enforcement problem;
tum into party houses;
create parking problems; and
be overconcentrated in unincorporated areas of the County.
Assuming the Council would approve ZTA 17-03, some civic associations wanted some way of getting
contact information for the owner of the unit. These would want direct notice when a license is renewed,
or at least on-line notice similar to DHCA's website on the location of accessory dwelling units.
The Town of Somerset wanted assurance that the town would not be affected by the proposed legalization.
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Issues concerning ZTA 17-03
Why should the zoning code be changed at all?
By its enactment of Bill 14-15, the Council agreed with the County Executive's recommendation to tax
short-term residential rentals.
6
Although licensing is required by the code, such licenses may not be issued
due to their illegal zoning status. The conflict between the licensing requirement and the zoning code
should be resolved.
There are certainly reasons to make the use legal. There are on the order of 1,400 dwelling units in the
County being offered and rented on-line. Short-term rentals offer an economic return for property owners.
Between April of 2010 and July 2017, the County has only received 30 complaint calls that described the
problem as transient housing.
7
Tax collections for short-term rentals are averaging around $35,000 a month.
8
Licenses cannot be issued.
There is no easy way to know who is undertaking this activity. The agreement between the County and
Airbnb for the payme nt of taxes
does not
allow for an audit trail.
9
Enforced licensing will at least allow
the County to track the level of short-term rental interest, if not the activity. Licensing would also require
the licensee to maintain activity records.
What proble ms can be avoided?
In some cities, apartment buildings have been purchased for the purpose of renting out every unit as a
short-term rental. The result was a de facto hotel and the loss oflong -term living options for households.
In suburban areas, it has been reported that some single-family dwellings have been purchased by investors
for the same purpose. ZTA 17-03 as introduced requires that the dwelling unit used as a short-term rental
must be the applic ant's primary residence, regardless of dwelling unit type. (See lines 36-37.) This
provision would limit the number of units any individual may use for short-term rentals to one.
10
Residents want the opportunity to know their neighbors.
11
This is next to impossible when their neighbors
change every day. The Planning Board recommends that if the primary resident is not present in the
residence, the property can be used as a short-term residential rental for a maximum of 90 days in a
calendar year. (See lines 38-40.) This reduces, but does not eliminate, the concern. The Planning Board
did not recommend limiting the duration of rentals when the primary resident is present in the dwelling.
(See lines 40-43.)
Any dwelling unit that offers, for compensation, sleeping accommodations in the County was made subject
to the hotel tax.
A complaint for a specific reason such as noise or trash would only be counted as a short-term rental
complaint if the
complainer indicated that the source of the problem was a short-term rental.
8
It is impossible to determi ne if all the taxes owed by short-term residential rentals are being collected.
9
Testimony asserted that the County is the only jurisdiction in Maryland that has reached a payment agreeme
nt.
It
has been
said that the State has refused any similar type of agreement because it does not allow a means to audit
remissions.
10
The Apartment and Office Building Association did ask for the ability oflandlo rds to profit from short-ter
m rentals, but that
would run counter to the restrictions recommended by the Planning Board. The Committee did
not recommend the
Association's requeste d revision.
11
The neighbors whom residents may or may not know are the folk who want to use their property for short-ter
m residential
rentals. "The Bible tells us to love our neighbors, and also to love our enemies; probably because generall
y they are the same
people." G.K. Chester ton.
7
6
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Some testimony suggested that 90 days of rental with an absent owner was too long, while other testimony
suggested that it was too short. The Greater Colesville Civic Association recommended a 45-day limit.
The proposed 90-day requirement is the same duration as San Francisco's.
12
The City of New Orleans
allows a maximu m of 90 days of short-term rental without regard to the presence of an owner.
13
The cities
of Boulder, CO and Austin, TX have no limit.
14
Washington, D.C. is considering a 15-day limit.
The issue is a balancing act between neighbors' rights of cohesion and private property rights.
The
Committee recommended approval of the proposed 90-day limit when the owner or owner-
authority tenant was absent from the property.
Is the provision for on-site supervision adequate?
As introduced, ZTA 17-03 includes the following provision:
If
the applican t is not present in the residence, the property can be used as a Short-Term Residential
Rental for a maximum of 90 days in a calendar year.
If
the applicant is present in the residence
during the rental stay, there is no limitation on the number of days the property can be used as a
Short-Term Residential Rental.
15
Testimony suggested clarifying this provision to state that "the property owner or an owner-authorized
resident of the property must be physically present and occupy the property during the short-term stay"
instead of using the term "applicant" and "present".
The Committee agreed with this clarification.
Are too many people allowed in a short-term rental?
Under ZTA 17-03 as introduced, the maximum number of occupants is limited by housing code health
standards; however, the total number of overnight guests in the short-term residential rental who are
18 years or older is limited to 6, and the total number of overnight guests over 18 years of age per bedroom
is limited to 2. Under this provision, a 3-bedroom house could have 6 adults.
This is different from the definition of a household in the current code, where there is a numeric limit for
the number of unrelate d individuals in a dwelling unit:
Household: A person living alone, or any one of the following groups living together as a single
housekeeping unit and sharing common living, sleeping, cooking, and eating facilities:
1.
any number of people related by blood, marriage, adoption, or guardianship;
2.
up to 5 unrelated people; or
3.
2 unrelated people and any children, parents, siblings, or other persons related to either of
them by blood, adoption, or guardianship.
Household does not include any society, club, fraternity, sorority, association, lodge, federation,
or like organization; any group of individuals whose association is seasonal in nature; or any group
of individuals who are in a group living arrangement as a result of criminal offenses.
http://sfist.com/2016/11/16/sf supes approve 60-day cap on rent.php
https://www.nola.gov/short-term-rentals/str-zoning-restrictions/
14
https://bouldercolorado. gov/plan-develop/short-term-rentals,
https ://www.austintexas.gov/sites/default/files/files/Code Compliance/S TRs/Revised Ordinance .pdf
15
Lines 38-43.
13
12
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If the definition of household were to be applicable to short-term residential rental property, any household
with 6 members must be related.
The Committee did not recommend changing the Planning Board
proposed limits.
Does the ZTA adequat ely address on-site parking?
As introduced, ZTA 17-03 would require one off-street parking space for each rental contract
unless
the
online listing indicate s that vehicle parking is prohibited. This provision does not require any off-site
parking spaces if the landlord indicates that parking is prohibited. This is not likely to reduce parking
demand.
16
Zoning has different on-site parking requirements, ranging from zero to 2 spaces per dwelling
unit. Having one off-street parking space may not meet minimum zoning requirements, depending upon
when the unit was constructed.
The Planning Board proposal will not prevent parking problems. The Council may wish to limit licenses
to locations that provide off-street parking. The Council also could vary the parking required based on
transit availability, as suggested in testimony.
The Committee did not recommend changing the
Planning Board proposed limits.
Should ZTA 17-03 be amended to allow a bed and breakfast for more than 5 guest rooms and allow for
additional meal service under certain circumstances?
ZTA 17-03 was describe d in the public hearing advertisement as:
An amendm ent to the Montgomery County Zoning Ordinance to:
modify the definition of "Househ old Living";
define "Short-Term Residential Rental";
establis h limited use standards for short-term residential rental; and
generall y amend provisions allowing for short-term residential rentals.
It created a new use (short-term rentals). Its only connect ion to a bed and breakfast was to exclude a short-
term rental from the definition of a bed and breakfast. Staff expressed the belief that the requested
amendment was beyond the scope of the ZTA's advertisement.
The Committee recommended
introdu cing a separat e ZTA (ZT A 17-08) to address this issue.
BILL 2-16
On September 25, 2017, the Committee recommended amending Bill 2-16 as follows:
1.
2.
Make a violation of any provision of Article II or Article III a class A violation (lines 165-
166).
Require a license applicant to certify that:
a.
the applicant is the owner or owner-authorized agent of the facility (line 457);
b.
the applicant has provided notice to any applicable home owner association,
condominium, housing cooperative, and the owner of the unit or the owner's rental
agent, if the applicant is not the owner (lines 471-474);
16
"The more things are forbidden, the more popular they become." Mark Twain
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2.
3.
4.
5.
the short-term rental is not prohibited by any home owner association,
condominium document or rental lease (lines 475-476);
d.
the applicant is current on dues owed to any home owner association, condominium
(lines 477-478);
e.
the applicant will have the license number and State Sales and Use Tax registration
number on any on-line listing (lines 481-482).
Licenses and license renewal require the Director to find compliance with applicable laws
and the certification required by the licensee (line 495-496).
Allow challenges to occur for short-term rental licenses (line 501).
Allow municipalities, condominium associations, and housing cooperatives to challenge a
license (lines 506-509).
Revise the text on a license suspension to define the reason to suspend a license as a
violation of the license certifications or of the County Code; three violations within any
12-month period would warrant suspension of the license (lines 519-520).
c.
After the Committee meeting, a poll of Committee members indicated support for making the Bill
effective on July 1, 2018. The delay in the effective date will give the Department of Health and Human
Services time to prepare to administer the licensing program.
Backgrou nd
This Bill anticipates the approval of ZTA 17-03, which will make Bed and Breakfast a limited use in most
residential and mixed-use zones.
Short-term residential licensing in the attached draft of Bill 2-16 would require:
>
>
>
>
>
>
>
>
>
>
>
>
>
>
Compliance with zoning
Maximum occupancy consistent with zoning
Limiting rentals to habitable rooms
A carbon dioxide detector for units with natural gas
No code violations in the past year (for new licenses)
Operating sanitation facilities
Paid taxes
Site of the rental is the primary residence of the applicant
The applicant is the owner or is authorized by the owner to apply
Posted rules and posted contact information for a designated representative
A record of guests
Notice to neighbors of the application request
Certification that the rental is allowed by the HOA, or condominium restrictions if applicable
Licenses issued for a one-year term.
What is the fiscal impact ofBill 2-16?
The Executive estimates that the licensing program envisioned under Bill 2-16 would require total
expenditures of $213,947 in FY18 and $211,094 every year thereafter. The Bill calls for on-line filing
and self-certification. The first-year operating cost for Information Technology is estimated at $157,500
in FY18 and $102,500 every year after FY18.
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There would be revenues from licensing fees available to offset expenditures. The Executive assumed an
annual fee of $100 per license. At that fee, and with 100% compliance, total annual revenue would be
$140,000 per year. On an annual basis, the Executive would anticipate a net cost of Bill 2-16 of $71,094
($211,094 minus $140,000).
This expenditure estimate is based on traditional complaint-based enforcement. More funds will be
required for proactive enforcement.
Who should enforce short-term residential licensing?
The Planning Board suggested that the Council consider having one agency responsible for both short-
term and long-term rentals. The current code splits that responsibility between HHS (transient/short-term
rentals) and DHCA (long-term rentals). The Apartment and Office Building Association recommended
enforcement by DHCA; the Department already has subpoena power.
17
The current code requires the licensing of all transient rental units; however, the focus of HHS in this area
has been on hotels. DHCA licenses long-term residential rental and administers approval of accessory
dwelling units.
Staff asked Executive staff about changing the jurisdiction of non-hotel transient housing to DHCA, but
Executive staff continues to believe that HHS is the more appropriate administrator. This will result in
two agencies issuing rental licenses of various types. In Staffs opinion, the issues concerning short-term
rentals are more like the issues surrounding accessory dwelling units than hotels. Staff, if asked, would
recommend assigning DHCA this responsibility.
The Committee supported the Executive's
recommendation to retain HHS responsibility for short-term housing.
This division of responsibility
would retain DHCA's focus on long-term housing.
Should there be proactive enforcement of licensing requirements?
There are many activities in the County that go unnoticed. Short-term residential rentals are different in
that listings are posted (without street addresses) on relatively few on-line web platforms. There are third-
party resources who, for a fee, would match valid licenses against on-line postings. The purpose would
be to assure compliance with the requirement to obtain a license.
Enforcement, or lack thereof, is critical if the County wants any regulatory control of short-term rentals.
Generally, enforcement issues are left to the Executive.
The Committee recommends leaving all issues
of enforcement up
to
HHS.
Should on-site inspections be required before licensing?
As proposed, licensing would be issued based on an on-line self-certification process. As proposed, it
would be easy, efficient, and inexpensive. Some testimony suggested that public safety inspections are
warranted before the issuance of a license. Such inspections are being considered in the District of
Columbia.
18
Montgomery Code §29-6( e).
http://www.nbcwashington.com/news/locaVShould-Every-Airbnb-Unit-Be-Inspected-DC-Bill-Would-Require-It-
431620733.html
18
17
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Inspections would involve time and expense.
It
would likely lead to fewer licenses, but not fewer short-
term rental units.
The Apartment and Office Building Association suggested County verification of elements certified in the
application. This too is inconsistent with an easy, efficient, and inexpensive process.
The Committee
did not recommend pre-licensing inspections.
Are the noticing requirements sufficient?
As proposed, neighbors must be given notice of a short-term residential license application. Testimony
suggested that notice also be given to any non-applicant owner (which would be a landlord), HOAs,
condominium associations, and municipalities.
19
Testimony also suggests that the content of a notice
include the emergency contact information.
Testimony indicated that the outcome of the licensing process should be noticed and include challenges
and renewals to a license.
At some point, the burdens of noticing are greater than the benefits. This is a balancing act for the Council.
The Committee did not recommend requiring notice for license renewals.
Would the requirement for action on a license or a license renewal within 15 days result in the issuance
of a license
if
the time limit is not met?
The intent for the time limit was to provoke action. It was not to imply that an application was approved
unless disapproved within that time period.
If
the Council wants a process of approval unless disapproved,
it should state that intent.
The Committee did not recommend revisions.
Should the provision for compliance with HOA or condominium restrictions be revised?
Under the proposed licensing requirements, the applicant must certify that:
the application is permitted by any Home Owner's Association or condominium document, or a
rental lease ...
20
Testimony suggested revising this provision to read: "the use [proposed] is not prohibited by any Home
Owner's Association or condominium document or a rental lease including an occupancy agreement of a
housing co-operative."
The general rule for legislative drafting is to express ideas in the positive form.
It
is the general rule of
the English language to avoid double negatives. Is something that is "not prohibited", allowed? The
answer is yes ... but is it easier to directly find a prohibition.
The Committee agreed with changing "is
permitted" to "is not prohibited".
Testimony suggested adding that notice be sent to "the representative of the common ownership community designated in
the annual registration filed with the Montgomery County Commission on Common Ownership Communities pursuant to
Montgomery County Code, Section 10B~7(a)". Staff does not believe that this is necessary in code and can be addressed in
guidelines or regulations.
20
Line 471-472.
9
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The Apartment and Office Building Association would have the license applicant attach the applicable
language in a lease, condominium, or home owner association document to the application. This request
seems extreme and was not recommended by the Committee.
The Association would further want a new provision that the license does not supersede any contracts
among individuals. This seems redundant to the provision that would not allow a license if it is prohibited
by such contracts. The Committee did not recommend this revision.
Should there be a requirement for current HOA dues paid?
Licensed rental housing, excluding transient housing, is subject to licensing under Chapter 29 of the Code.
Those licensing provisions prohibit the issuance of a license for a dwelling unit in a common ownership
community unless the owner certifies that the common ownership community fees for the dwelling unit
are no more than 30 days past due.
21
Common ownership communities request an identical provision for any short-term rental license.
The
Committee recomm ended changes to this provision to be consistent with the long-term rental license
provision.
Should a licensee be required to post their license number and the state license number of their on-line
listing?
Enforcement will be easier if there is a requirement to post the County license number with the on-line
listing. Testimony also suggested requiring the host's State Vendor Identification number on any on-line
listing.
22
This requirement was not included in Bill 2-16 as proposed.
The Committee recommended
this additional requirement.
Are the challenges to an existing or proposed license adequate?
There is an intent to allow challenges to both bed and breakfast and short-term residential rentals. As
drafted, challenges to licenses may be limited to bed and breakfast establishments.
The Committee
recommends deleting the words "bed and breakfast" in lines 493 and 495 and replacing with the
word "license".
Municipalities, condominium associations, and housing cooperatives may want the opportunity to
challenge a license or a license renewal. That provision is not currently allowed in the draft Bill.
The
Committee recommends including these entities in the list of parties that file a challenge (line 495).
Should the County require short-term residential rental platforms to do anything through legislation?
Testimony requested the County to require any on-line rental platform to provide a monthly listing of
units and to remove unlicensed units. Other testimony requested that on-line platforms give notice to
property managers regarding rentals at their property. The Apartment and Office Building Association
requested that platforms be required to provide a landlord with information on upcoming trip activity and
a summary year-to-date of activity at the property.
Sec. 29-19. Licensing procedures.
22
The state has a 6% sales tax.
10
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The ZTA and the Bill put requirements on the party with local property connections.
The Committee
did not make recommendations to impose obligations on short-term rental platforms but retained
the obligations of a licensee to provide information on their on-line advertisements.
Are the provision s for the suspension ofa license adequate?
As proposed, Bill 2-16 includes the following provision:
The license must be suspended for any applicant receiving at least three verified complaints within
a calendar year.
23
Staff intended that verified complaint mean any action found to be a violation of the license or any other
aspect of County code. Noise and trash violations would be within the intended scope of a verified
complaint. Testimony suggested that a single verified complaint should warrant the suspension of a
license.
The provision used the term "within a calendar year". Testimony suggested that it would be better to say
within any 12-month period.
The Community Association Institute requested a provision to immediately suspend a license if the
governing body of a common ownership community submits proof of unpaid common ownership fees.
Staff expressed the belief that this situation may be efficiently handled by challenging at renewal. The
proposed provision states that each license "must be issued for a term of one year, renewable for additional
one-year terms, subject to payment of the license fee and compliance with all applicable laws".
24
The Committee recommended adding a requirement that renewals comply with certification
requirements and the 3-violation rule would count violations within any 12-month period
(lines 518-
519).
Can HHS address violations under the Bill?
HHS staff noticed that the proposed Bill before the Committee on September 18 failed to make violations
of the new Article concerning short-term residential rental licensing subject to Class A violations.
The
Committee corrected that oversight by making Class A violations apply to Articles II and III
(lines
165-166). HHS was satisfied with this solution and did not believe that repeating the provision as
suggested in testimony was necessary. The Department also did not recommend specific subpoena
authority as a requirement for their enforcement.
Should the Bill be amended to require HHS to provide information ofshort-term rental licenses?
Staff suggested that the regulating Department could post maps and contact information of licensees and
their status.
The Committee did not recommend that the Bill be amended to require HHS to provide maps and
data (as on DHCA's site) on accessory dwelling units.
23
Lines 505-506.
24
Lines 486-488.
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Can municipalities opt out of the proposed regulatory scheme?
Except for Brookeville, Poolesville, Laytonsville, Rockville, Barnesville, Gaithersburg, and Washington
Grove, all municipalities are subject to the County's zoning code. The Town of Somerset has requested
an exemption for and change to the illegal status of short-term residential rental. Staff knows of no
municipal exemptions in the current code.
Chapter 54 of the code is different from zoning. Municipalities may opt out by their own action. The
towns of Chevy Chase View, Chevy Chase, Gaithersburg, Garrett Park, Glen Echo, Laytonsville,
Poolesville, Rockville, Somerset, and Washington Grove are NOT subject to the provisions of Chapter 54.
ZTA 17-03 requires any short-term rental to have a license under Chapter 54. Any municipality that opts
out of Chapter 54 could not have licenses approved by the County within its jurisdiction. Under these
circumstances and under the proposed text, the Zoning Ordinance would not allow a legal short-term rental
in a municipality that that opts out of Chapter 54.
This Packet Contains
ZTA 17-03 revised per PHED recommendations
Bill 2-16 revised per PHED recommendations
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1- 9
10-31
F:\Land Use\ZTASVZY ONTZ\20 I 7 ZTAs\17-03 Accessory Residential Uses - Short-term rental\ZTA 17-03 Action memo I 0-10-17.docx
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Zoning Text Amendment No.: 17-03
Concerning: Accessory Residential
Uses - Short-Term Rental
Draft No. & Date: 2 - 9/19/17
Introduced: June 13, 2017
Public Hearing: September 12, 2017
Adopted:
Effective:
Ordinance No.:
COUNTY COUNCIL FOR MONTGOMERY COUNTY, MARYLAND
SITTING AS THE DISTRICT COUNCIL FOR THAT PORTION OF
THE MARYLAND-WASHINGTON REGIONAL DISTRICT WITHIN
MONTGOMERY COUNTY, MARYLAND
Lead Sponsor: Council President at the request of the Planning Board
AN AMENDM ENT
to the Montgomery County Zoning Ordinance to:
modify the definition of "Household Living";
define "Short-Term Residential Rental";
establish limited use standards for short-term residential rental; and
generally amend provisions allowing for short-term residential rentals
By amending the following sections of the Montgomery County Zoning Ordinance,
Chapter 59 of the Montgomery County Code:
DIVISION 59.1.4.
Section 59.1.4.2.
DIVISION 59-3.1.
Section 59-3.1.6.
DIVISION 59.3.3.
Section 59.3.3.3.
DIVISION 59-3.5.
Section 59-3.5.6.
DIVISION 8.2.
Section 8.2.3.
DIVISION 8.3.
Section 8.3.2.
"Defined Terms"
"Specific Terms and Phrases Defined"
"Use Table"
"Use Table"
"Residential Uses
"Accessory Residential Uses"
"Commercial Uses"
"Lodging"
"Residential Floating Zones"
"Use Table for the RT and R-H Zones"
"Planned Unit Development Zones"
"PD Zone"
And
adding the following section:
Section 3.3.3.I.
"Short-Term Residential Rental"
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EXPLANATION: Boldface
indicates a Heading or a defined term.
Underlining indicates text that is added to existing law by the original text
amendment.
[Single boldface brackets] indicate text that is deleted.from existing law by
original text amendment.
Double underlining indicates text that is added to the text amendm ent by
amendment.
[[Double boldface brackets]] indicate text that is deleted.from the text
amendm ent by amendment.
* * *
indicates existing law unaffected by the text amendment.
OPINION
Zoning Text Amendment No. 17-03 was introduced on June 13, 2017 to allow for short-term
residential rental under certain circumstances, including a requirement for a short-term rental
license under Bill 2-16.
In its report to the Council, the Montgomery County Planning Board recommended approval as
introduced with the approval of Bill 2-16 as revised.
The County Council held a public hearing on September 19, 2017 to receive testimony
concerning the proposed text amendment. Some wanted the issuance of a license to be
predicated on a statement from the appropriate association that the short-term rental was allowed.
In addition, they request a provision to bar a license if HOA dues are in arrears.
Hotel owners do not want short-term residential rentals to have a competitive advantage. The
hotel industry supported the proposed ZTA as offering a more even regulatory playing field.
Hotels are currently subject to taxes, licensing, and inspections. Hotels would favor an
additional requirement that any advertisement for a short-term residential rental include the
owner's state and local license number.
The Apartment and Office Building Association (AOBA) requested the opportunity for landlords
to rent some units on a short-term basis. The Association also asked for more enforcement
authority for the administering department, including subpoena power among other
recommendations.
The most critical testimony came from people and civic organizations who thought that the
current illegal status of short-term rentals was satisfactory. The testimony stated a concern that
short-term residential rentals will:
create nuisances (noise, traffic, underage drinking, litter, public urination, drugs, and
other illegal activities);
bring an influx of strangers to the neighborhood on a regular basis;
be unsafe because they do not meet fire and safety standards;
destabilize and disrupt communities by driving out long-term residents;
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reduce the availability of affordable housing;
be an enforcement problem;
turn into party houses;
create parking problems; and
be overconcentrated in unincorporated areas of the County.
The text amendment was referred to the Planning, Housing, and Economic Development
Committee for review and recommendation.
The Planning, Housing, and Economic Development Committee held worksessions on
September 18, 2017 and September 25, 2017 to review the text amendment.
On
September 25, 2017, the Committee (3-0) recommended approval of ZTA 17-03 with revisions
to Subsection 59.3.3.3.I.2.b and c as follows:
b.
The dwelling unit used as g Short-Term Rental must be the [[applicant's]] property
owner's or owner-authorized resident's primary residence, regardless of dwelling unit
~
c.
If
the [[ applicant]] property owner or owner-authorized resident is not present in the
residence, the property can be used as g Short-Term Residential Rental for g maximum of
90 days in g calendar year.
If
the [[applicant]] property owner or owner-authorized
resident is physically present [[in]] and occupies the residence during the rental stay,
there is no limitation on the number of days the property can be used as g Short-Term
Residential Rental.
The Committee in all other respects agreed with the Planning Board recommendation to include
the following limitations on short-term residential rental:
>
>
>
>
>
>
Allow only on sites without either a farm tenant dwelling or an accessory apartment.
Allow only if the site is the primary resident of the applicant.
Limit the maximum rentals in a calendar year to 90 days, counting only when the owner
or authorized resident is absent.
Limit the total number of adult overnight guests to six.
Limit the total number of adult overnight guests per bedroom to two.
Require one off-street parking space for each rental contract, unless the online listing
indicates that vehicle parking is prohibited.
The District Council reviewed Zoning Text Amendment No. 17-03 at a worksession held on
October 10, 2017. The Council agreed with the Committee's recommendation to approve
ZTA 17-03 as amended.
For these reasons, and because to approve this amendment will assist in the coordinated,
comprehensive, adjusted, and systematic development of the Maryland-Washington Regional
District located in Montgomery County, Zoning Text Amendment No. 17-03 will be approved as
amended.
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ORDINANCE
The County Council for Montgomery County, Maryland, sitting as the District Council for
that portion of the Maryland-Washington Regional District in Montgomery County, Maryland,
approves the following ordinance:
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Zoning Text Amendment No.: 17-03
1
Sec. 1. DIVISION 59.1.4 is amended as follows:
Division 59.1.4. Defined Terms
2
3
4
5
6
* * *
Section 59.1.4.2. Specific Terms and Phrases Defined
In this Chapter, terms that are not specifically defined have their ordinary meaning.
The following words and phrases have the meanings indicated.
*
*
7
8
9
*
Shooting Range (Outdoor):
See Section 3.5.10.J.1
Short-Term Residential Rental:
See Section 3 .3 .3
.I
*
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11
* *
Sec. 2. DIVISION 59-3.1 is amended as follows:
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13
14
15
*
*
*
Section 3.1.6. Use Table
The following Use Table identifies uses allowed in each zone. Uses may be
modified in Overlay zones under Division 4.9.
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Zoning Text Amendment No.: 17-03
Residential
Residential
Residential Detached
Townhouse
Residential
Multi-Unit
Rural
Definitions
Commercial/
Residential
Employment
Ag
Residential
USE OR USE
GROUP
and
Standards
AR
R RC RNC RE-2
RE- RE- R- R- R- R-
2C 1 200 90 60 40
TLD TMD THD
R- R-
30 20
R-10 CRN CRT CR GR NR LSC
EOF
* * *
RESIDENTIAL
* * *
ACCESSORY
RESIDENTIAL USES
***
3.3.3.
* * *
Short-Term
Residential
Rental
3.3.3.1
1
1 1 1
1
1 1 1 1 1 1
1
1
1
1 1
1
1
1
1
1 1 1
1
* * *
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Sec. 3. DIVISION 59.3.3 is amended as follows:
DIVISION 59.3.3. Residential Uses
Section 3.3.1. Household Living
A.
Defined, In General
22
23
24
25
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Household Living means the residential occupancy of a dwelling unit by a
household [on a monthly or longer basis] for 30 consecutive days or longer.
*
* *
* *
Short-Term Residential Rental
1.
Defined
Section 59-3.3.3. Accessory Residential Uses
*
I.
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Zoning Text Amendme nt No.: 17-03
29
Short-Term Residential Rental means the residential occupan cy of£!
dwelling unit for
f!
fee for less than 30 consecutive days. Short-Term
Residential Rental is not
£!
Bed and Breakfast.
30
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2.
Use Standards
Where Short-Term Residential Rental is allowed as
fl
limited use,
must satisfy the following standards:
a.
Short-Te rm Residential Rental is prohibited in
fl
Farm Tenant
Dwelling or on
£!
site that includes an Accessory Apartme nt.
i1
35
36
37
38
39
40
b.
The dwelling unit used as
f!
Short-Term Rental must be the
[[applicant's]] property owner's or owner-authorized resident' s
primary residence, regardless of dwelling unit
~
C.
If the [[applicant]] property owner or owner-au thorized resident
is not present in the residence, the property can be used as
f!
Short-Term Residential Rental for
f!
maximum of 90 days in
f!
calendar year. If the [[ applicant]] property owner or owner-
authorized resident is physically present
[[!!1}]
and occupies the
residence during the rental stay, there is no limitatio n on the
number of days the property can be used as
f!
Short-Te rm
Resident ial Rental.
41
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45
46
47
48
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