ORDINANCE NO. BL2016-381

SUBSTITUTE ORDINANCE NO. BL2016-381

An ordinance to amend Chapter 6.28 of the Metropolitan Code pertaining to Short Term Rental Property (STRP).

WHEREAS, short-term rental of homes can provide a flexible housing stock that allows travelers a safe accommodation while contributing to the local economy; and

WHEREAS, short-term rental of homes can provide homeowners an opportunity to hold property in difficult economic circumstances or as an investment; and

WHEREAS, the needs of long-term residents should be balanced with the allowance of short-term rentals; and

WHEREAS, to further this goal, the application and enforcement procedures in Nashville's Short Term Rental Property ordinance should be modified.

NOW, THEREFORE BE IT ENACTED BY THE COUNCIL OF THE METROPOLITAN GOVERNMENT OF NASHVILLE AND DAVIDSON COUNTY:

Section 1: Section 6.28.030(D) is amended to insert the following after the word "Application" and before the first sentence: “STRP permit applications shall be valid for sixty (60) calendar days from the date filed and shall expire if the application process has not been completed within that time.”

Section 2: Paragraph 3 of Section 6.28.030(D)(3) is deleted in its entirety and replaced with the following: “Proof of written notification to the owner of each adjacent property prior to filing the application. For each such adjacent property, proof of written notification shall be: (a) a signature of an owner; (b) a signed receipt of U.S. registered or certified mail addressed to an owner; or (c) notice from the U.S. Postal Service that registered or certified mail to an owner was refused or not timely accepted."

Section 3: Add the following Paragraph 5 to Section 6.28.030(D): “For owners applying for an owner-occupied permit, two documents giving proof of owner occupation shall be provided. Acceptable documentation includes Tennessee Driver’s license or other valid State of Tennessee identification card, Davidson County voter registration card, or a bank statement, each showing the owner’s name and address matching that of the property to be utilized for short term rental.”

Section 4: Section F of 6.28.030 is amended to read as follows: “All STRP occupants shall abide by all applicable noise restrictions and regulations regarding the public peace and welfare contained in the Metropolitan Code, and all applicable waste management provisions of Chapter 10.20 of the Metropolitan Code."

Section 5: Section H of 6.28.030 is amended by inserting the following sentence at the beginning: “Parking shall be provided as required by Section 17.20.030.”

Section 6: Section N of 6.28.030 is deleted in its entirety and replaced with the following:

N. Expiration of permit.

1. A STRP permit shall expire three hundred sixty-five days after it is issued unless it is renewed prior to its expiration.

2. For STRP units that have received no documented complaints to Metro Codes, Police, or Public Works during the most recent permit period, a renewal application may be submitted by mail, online, or in person according to regulations promulgated by the Metro Codes Department.

All such renewal applications shall include:

(a) the payment of a fifty dollar renewal fee; and

(b) a statement verified by affidavit that:

(i) includes all of the information required in an application under Part D of this Section 6.28.030; and

(ii) the STRP continues to be in full compliance with all applicable laws, including the payment of all applicable taxes.

3. For an STRP that has received no documented complaints to Metro Codes, Police, or Public Works during the most recent permit period, a 30 day grace period for renewal after the expiration of the STRP permit may be allowed by the Board of Zoning Appeals, after an appeal, upon a showing by the owner of a reasonable explanation other than neglect or mistake for the delay.

4. For an STRP with documented complaints to Metro Codes, Police, or Public Works during the most recent permit period, no grace period shall be allowed and all permit renewal applications shall be submitted timely. After the full resolution of all documented complaints to the reasonable satisfaction of Metro Codes Department, the permit may be renewed upon the payment of a fifty dollar renewal fee, and the submission of a statement verified by affidavit that includes all of the information required in an application under Part D of this Section 6.28.030. If the permit expires before all documented complaints are fully resolved, the STRP shall cease operating and not resume operating unless the permit is renewed.

Section 7: Section Q of 6.28.030 is deleted in its entirety and replaced with the following:

Q. Types of permits, and quantities

1. STRP permit holders shall obtain a use permit from the zoning administrator as an accessory use to the primary residential use pursuant to section 17.16.250.E. of the Metropolitan Code.

2. There shall be three types of permits issued as follows:

(a) Type 1 (Owner-Occupied): A Type 1 permit is available only for an owner-occupied STRP. Metro Codes Department shall promulgate regulations to ensure that the unit satisfies the definition of owner-occupied in this section.

(b) Type 2 (Not Owner-Occupied): A Type 2 permit is available for units that are in: (i) single-family, duplex, or non-conforming triplex or quadplex in residential zoning districts; and (ii) not owner-occupied.

(c) Type 3 (Not Owner-Occupied Multifamily): A Type 3 permit is available for units that are: (i) multifamily apartments or condominiums; and (ii) not owner-occupied.

3. Limits on quantities: No more than three percent of the single-family or two-family residential units within each census tract shall be permitted as Type 2 non-owner-occupied short-term rental use as determined by the zoning administrator.

4. Only one permit shall be issued per lot for single-family homes, two-family homes, triplexes, and quadplexes.

Section 8: Section R(1) of 6.28.030 shall be revised to read as follows: “Upon the filing of a complaint regarding a STRP permit, the department of codes administration shall notify the permit holder in writing of such complaint.”

Section 9: Section R(2) of 6.28.030 shall be revised to read as follows: “If the Zoning Administrator determines, based on reasonably reliable information that the Zoning Administrator has obtained including without limitation public records or reports, records of regularly conducted activity, or a direct or online statement against a person's own interest, that three violations of this section or any other ordinance or law have occurred within a 12 month period, the permit to operate a STRP shall be revoked."

Section 10: Section Q of 6.28.030 is moved to become Section C of 6.28.030. The existing Sections C through P shall be each moved to become Sections D through Q, respectively. All references to sections of 6.28.030 in Sections 1-9 of this ordinance refer to the existing sections of 6.28.030 prior to being moved. To the extent necessary, all references in the Metro Code to the sections of 6.28.030 that are being moved shall be updated.

Section 11: That this Ordinance shall take effect from and after its passage, the welfare of the Metropolitan Government of Nashville and Davidson County requiring it.

Sponsored by: Burkley Allen, Bob Mendes

AMENDMENT NO. 1
TO
SUBSTITUTE ORDINANCE BL2016-381

Mr. President,

I move to amend Substitute Ordinance No. BL2016-381 as follows:

I. By amending Section 1 by deleting the reference to “sixty (60) calendar days” therein and substituting in lieu thereof: “ninety (90) calendar days.”

II. By amending Section 3 by deleting it in its entirety and substituting the following in lieu thereof:

Section 3: Add the following Paragraph 5 to Section 6.28.030(D): “For owners applying for an owner-occupied permit, two documents giving proof of owner occupation shall be provided. Acceptable documentation includes Tennessee Driver’s license, other valid State of Tennessee identification card, Davidson County voter registration card, utility bills, paycheck/check stub, work ID or badge, Internal Revenue Service tax reporting W-2 form, or a bank statement, each current and showing the owner’s name and address matching that of the property to be utilized for short term rental.”

III. By amending Section 6 by deleting sub-section 6.28.030.N.3 in its entirety and substituting in lieu thereof the following:

3. For an STRP that has received no documented complaints to Metro Codes, Police, or Public Works during the most recent permit period, a 30 calendar day grace period for renewal after the expiration of the STRP permit may be allowed by the zoning administrator upon a showing by the owner of a reasonable explanation other than neglect or mistake for the delay.

IV. By further amending Section 6 by deleting sub-section 6.28.030.N.4 in its entirety and substituting in lieu thereof the following:

4. For an STRP with documented complaints to Metro Codes, Police, or Public Works during the most recent permit period, no grace period shall be allowed and all permit renewal applications shall be submitted timely, the permit may be renewed upon the payment of a fifty dollar renewal fee, and the submission of a statement verified by affidavit that includes all of the information required in an application under Part D of this Section 6.28.030.

V. By amending Section 7 by deleting in its entirety subsection 6.28.030.Q.2(b) and substituting the following in lieu thereof:
(b) Type 2 (Not Owner-Occupied): A Type 2 permit is available for units that are in: (i) single-family, duplex, nonconforming three-family homes and nonconforming four-family homes in residential zoning districts; and (ii) not owner-occupied.

VI. By further amending Section 7 by deleting in its entirety subsection 6.28.030.Q.4 and substituting the following in lieu thereof:

4. Only one permit shall be issued per lot for single-family homes, two-family homes, nonconforming three-family homes and nonconforming four-family homes.

VII. By amending Section 8 by adding the words: “or by e-mail” immediately following the word “writing” in section 6.28.030.R(1)

VII. By amending Section 9 by deleting it in its entirety and substituting the following in lieu thereof:

Section 9: Section R(2) of 6.28.030 shall be revised to read as follows: “If the Zoning Administrator determines, based on reasonably reliable information that the Zoning Administrator has obtained including without limitation public records or reports, records of regularly conducted activity, or a direct or online statement against a person's own interest, that three violations of this section or other Code sections referenced in this section have occurred within a 12 month period, the permit to operate a STRP may be revoked."

LEGISLATIVE HISTORY
Introduced:	September 6, 2016
Passed First Reading:	September 6, 2016
Referred to:	Convention, Tourism, and Public Entertainment Facilities Committee Codes, Fair, and Farmer's Market Committee
Substitute Introduced:	September 20, 2016
Deferred to October 18, 2016:	September 20, 2016
Re-Referred to:	Convention, Tourism, and Public Entertainment Facilities Committee Codes, Fair, and Farmer's Market Committee
Deferred:	October 18, 2016
Deferred:	November 1, 2016
Amended:	November 15, 2016
Passed Second Reading:	November 15, 2016
Passed Third Reading:	December 6, 2016
Approved:	December 7, 2016
By: