Council OKs short-term rental law
New legislation closes loophole that allowed companies to share investments
After months of discussion, the Annapolis City Council passed legislation Monday to close a loophole in current law to prevent limited liability companies from having shared investments in short-term rental properties.
The bill, sponsored by Alderman Rob Savidge, a Democrat from Ward 7, passed 8-0. Alderwoman Elly Tierney abstained. A vote on the bill was postponed for the second time in March to allow the Rules and City Government Committee to have more time to review it.
Passage of the legislation ends a moratorium on the consideration of new shortterm rental license applicants. The moratorium was approved in February because the bill had been in committee for so long. The moratorium excluded applicants with short-term rental licenses that would need to be renewed while it was in effect, said Alderwoman Karma O’Neill, the sponsor of the resolution. The moratorium was in place for a year or until the council passed legislation changing the City Code.
The council first passed legislation regulating shortterm rental licenses in January
2020. In the years since, Tierney, a Democrat from Ward 1 and the 2020 legislation’s sponsor, had raised concerns that the bill’s definition of one owner could allow one person to acquire multiple licenses through separate LLCs. The spirit of the original short-term rental ordinance, O-26-19, was one license for each property owner, Tierney said at the time.
Tierney had attempted similar measures to close the loophole but ultimately failed. She abstained from voting on the new legislation after she withdrew an amendment proposing that Airbnbs be prohibited from advertising as event venues.
“Residential neighbor
hoods hold personal significance for me, as I attempted to enact similar measures several years ago in Ward One. Unfortunately, my efforts were thwarted, and it was perceived as a NIMBY [Not In My Backyard] endeavor,” Tierney said in a message. “If they wish to host events like weddings, they should adhere to our event code, if applicable. However, the situation in Ward One has already reached a saturation point, with no new Airbnb listings or, at least, a steady status quo. Let’s observe how the revised code unfolds, as enforcement ultimately becomes pivotal.”
In the new updated legislation, applicants for new short-term rental licenses are prohibited from listing their property on short-term rental property websites before obtaining license approval. A shortterm rental license application will not be approved or issued if it does not follow rules established by any “applicable condominium, homeowners, community or other similar association having authority over the use of the premises.” If an association requires its consent to use a property as a short-term rental, the owner must provide proof of approval to the director of Planning and Zoning.
Several amendments were passed to implement enforcement measures.
O’Neill proposed two that allow the Planning and Zoning Department or the Annapolis Police Department to revoke a shortterm rental license after three “verified” nuisance complaints and establish fines that may be issued for such complaints.
Alderman Ross Arnett, a Democrat from Ward 8, asked how this rule would be enforced for things like noise complaints, and what constitutes a valid complaint. Arnett also asked if the owner or third-party manager of a short-term license would be notified of any recorded complaint when a citation is issued.
“I’m not sure we really have, in this amendment or in practice, a regularized process that puts the owner on notice and could stand up if the owner comes and says that they have no knowledge of complaints and therefore their license shouldn’t be revoked,” he said.
O’Neill said that valid complaints result in “actual code violation[s].”
Alderman DaJuan Gay, a Democrat from Ward 6, asked if noise complaints qualify as a “valid” complaint, adding that not every Annapolis Police officer carries a device that measures decibels.
“I am going to support [the amendment] because I think that there should be some way that neighbors can submit a complaint and have some sort of follow up, I am just not sure on how the actual process works,” he said.
Department of Planning and Zoning staff are to “promulgate such rules and regulations as are necessary and proper” within 90 days of the legislation’s enactment, according to city attorney Michael Lyles. The amendments did not specify how much the fines would be. They will have to be created through a resolution during the budget process.
An annual report detailing statistics on the state of short-term rentals in the city must be given to the City Council by the Department of Planning and Zoning. This report will include items such as a map of short-term rentals, statistics on the increase or decrease in the number of such rentals,the number of new licenses in the past year, an analysis of the impact of short-term rentals on the city and any recommendations on City Code changes regarding shortterm rentals.
Tierney’s withdrawn amendment would have prohibited the advertisement of a short-term rental as a potential event venue unless it obtained permits.
“You can’t govern everything,” Gay said. “Some things are out of city governance, particularly with this. I think that we are stretching our staff too thin to regulate and manage things taking place in people’s personal homes and personal property. … This is gonna be a mess.”