ORDINANCE NO. BL2017-610

An ordinance amending section 17.16.250.E of the Metropolitan Code of Laws to establish a 36-month moratorium on the issuance of new Type 2 and Type 3 short term rental property permits for properties zoned for single and two-family residential use (Proposal No. 2017Z-006TX-001).

WHEREAS, the emergence and popularity of short term rental property (STRP) units has paralleled Nashville’s popularity as a tourist destination city, thereby providing an available alternative to hotel and motel operations and affording greater flexibility to tourists and visitors; and

WHEREAS, STRP units have begun contributing significantly to the Metropolitan Government tax revenues through the Hotel Occupancy Privilege Tax assessed upon STRP units pursuant to chapter 5.12 of the Metropolitan Code of Laws, a portion of which proceeds are dedicated for appropriation to the Barnes Fund for Affordable Housing; and

WHEREAS, Nashville has nevertheless witnessed an exponential growth in the number of non-owner occupied short term rental property (STRP) units following the initial allowance of STRPs as an accessory use, many of which are owned and operated by investors; and

WHEREAS, at the January 3, 2017, Metropolitan Council public hearing, the Council was presented with evidence detailing neighborhood concerns with the operation of non-owner occupied STRPs, including public intoxication, lewdness, and loud noise; and

WHEREAS, despite a large and growing volume of complaints from neighborhood residents regarding STRPs, a report submitted December 20, 2016 by Fiscal Choice Consulting, LLC confirmed that no STRP property owner has had a permit revoked for code violations; and

WHEREAS, the report by Fiscal Choice Consulting, LLC further recited a lengthy number of recommendations for improvements to the Metropolitan Department of Codes Administration, particularly within the Property Standards Division; and

WHEREAS, barring immediate and drastic changes to the efficacy of property standards enforcement, it is necessary to avoid further exacerbating the problem and to promptly halt further increases in the number of non-owner occupied STRPs within residential areas until more effective regulatory methods can be adopted; and

WHEREAS, enacting a limited duration moratorium of 36 months, in good faith, upon non-owner occupied STRPs in residential areas will provide time for the Council to study the effectiveness of the increased enforcement efforts and to develop a comprehensive plan and appropriate zoning ordinances for the consideration of non-owner occupied STRPs in the future.

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

Section 1. That section 17.16.250.E of the Metropolitan Code is hereby amended by adding the following as subsection 17.16.250.E.5:

5. Moratorium. Beginning May 1, 2017 and continuing for 36 months thereafter, a moratorium shall be placed upon the issuance of any new permit for the operation of any Type 2 or Type 3 STRP located within the RS and R zoning districts or within a SP district that permits a STRP in single or two-family dwellings. This moratorium shall not preclude the renewal of STRP permits to (a) current permit holders in good standing who have committed no more than two (2) violations of section 17.16.250.E within the preceding 12-month period, or (b) applicants with current STRP applications on file with the Metropolitan Department of Codes Administration.

Section 2. The Metropolitan Clerk is directed to send a copy of this Ordinance to the Zoning Administrator for the Metropolitan Department of Codes Administration.

Section 3. This Ordinance shall take effect from and after its enactment, the welfare of The Metropolitan Government of Nashville and Davidson County requiring it.

Sponsored by: Nancy VanReece