ORDINANCE NO. BL2017-685

An ordinance to amend Title 17 of the Metropolitan Code, Zoning Regulations, pertaining to Short Term Rental Properties (Proposal No. 2017Z-012TX-001).

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, hotel taxes from short term rental of homes can be used to promote travel and tourism and to support the local tourism industry; and

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

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

Section 1. That Section 17.16.250 of the Metropolitan Code is hereby amended by deleting subsection E (1) b (iii). in its entirety and substituting with the following new subsection E (1) b (iii):

iii. Limits on quantities: No more than two and a half percent of the residential units within each census tract outside of the UZO that includes an RS district shall be permitted as Type 2 non-owner occupied short-term rental use. No more than three percent of the single-family or two-family residential units within each UZO census tract shall be permitted as Type 2 non-owner-occupied short-term rental use. Existing Type 2 STRP permit holders located within a census tract that has reached the cap referenced above, as of the date this ordinance becomes effective, will continue to be allowed to apply for renewal.

Section 2. That Section 17.16.250 of the Metropolitan Code is hereby amended by adding a new subsection E. (2) c.:

An online marketplace operator may, with consent, submit the application on behalf of an STRP operator. The online marketplace provider shall provide to the city the following information for any such STRP permit application: The name of the person applying and their phone number and email address; the STRP address; the STRP owner's tax assessment address (if different than the STRP address); and permit type.

Section 3. That Section 17.16.250 of the Metropolitan Code is hereby amended by deleting subsection E (4) f. in its entirety and substituting with the following new subsection E (4) f.:

f. Maximum occupancy. The maximum number of occupants permitted on a STRP property at any one time shall not exceed more than twice the number of sleeping rooms plus four or ten persons, whichever is lower. Simultaneous rental to more than one party under separate contracts shall not be allowed. The occupancy maximum shall be conspicuously posted within the STRP unit. Advertising a STRP for more occupants than allowed by this regulation shall be grounds for revocation of the permit.

Section 4. That Section 17.16.250 of the Metropolitan Code is hereby amended by adding subsection E. (4) i (v).:

An online marketplace operator may, with consent, submit a renewal application on behalf of an STRP operator. The online marketplace shall provide the city the same information as in 17.04.060 subsection E. (2) f as part of any such renewal application.

Section 5. That Section 17.16.250 of the Metropolitan Code is hereby amended by adding subsection E. (4) I (vii) and (viii).

vii. The City may contact the online marketplace operator to request that it voluntarily remove a listing from the online marketplace.

viii. No online marketplace operator shall be held responsible for content created or controlled by its users or otherwise be held liable for violations of this Chapter committed by its users.

Section 6. That Section 17.16.250 of the Metropolitan Code is hereby amended by adding subsection E. (5).

5. Online marketplace data sharing

a. The online marketplaces that list STRPs and that submit STRP applications with consent to the city, must provide certain information about activity on the online marketplace on a monthly basis. This information includes:

i. The total number of STRPs listed on the online marketplace during the applicable reporting period;

ii. Aggregated statistics regarding the total number of nights that STRPs on the platform were rented to guests during the applicable reporting period;

iii. Aggregated statistics regarding the number of nights that STRPs on the online marketplace are booked for rental during the remaining months of the applicable calendar year;

iv. Aggregated statistics regarding the STRP permit type for each listing; and

v. The total amount of tax collected by the platform and remitted to the city.

In providing the information required by this subsection, the online marketplace is not required to provide personally identifiable information.

b. The City shall have the authority to issue a subpoena for information from the online marketplace. Any such administrative subpoena shall:

i. Be submitted in writing by the City attesting that the City has reasonable belief that a STRP may be in violation of this Chapter.

ii. Be sent to the online marketplace by certified and registered mail; and

iii. Be related to a specific investigation by the City relating to a single STRP that is specifically identified in the subpoena, and alleges the specific violations of this Article or of applicable provisions in the Comprehensive Zoning Ordinance.

iv. The online marketplace shall notify their user of the information requested in the subpoena within 10 days of receipt of the subpoena and produce the responsive records within 30 days of providing notice to the user, except to the extent that the platform has provided written objections or the user or platform has sought relief in a court of competent jurisdiction.

Section 7. This Ordinance shall take effect six months after its passage and such change be published in a newspaper of general circulation, the welfare of The Metropolitan Government of Nashville and Davidson County requiring it.

Sponsored by: Sheri Weiner, Anthony Davis, Robert Swope