CITY OF LANGLEY SHORT TERM RENTALS PURPOSE Present

CITY OF LANGLEY SHORT TERM RENTALS

PURPOSE Present proposed new regulations for short term rentals in the City of Langley Receive citizen input.

VISION Tourism continues to play an important role in Langley’s economy Fulltime residents outnumber seasonal residents and tourists Tourism and service workers live in Langley Long-term rentals outnumber short-term rentals The majority of short-term rentals are bedrooms or accessory dwelling units where the owner/ manager lives there. A small percentage of whole homes are used as short-term rentals and the owner/manager lives in close proximity. All short-term rental operators and operations comply with the City and State Codes. The City enforces unauthorized short-term rentals.

OBJECTIVES Maximizes the availability of potentially more affordable housing options by minimizing the numbers of long-term rental properties being converted into short-term rentals Ensures that short-term rentals are taxed in the same way as traditional lodging providers to create a level playing field and maintain local service jobs Ensures that the city does not lose out on lodging tax revenue that is invested in tourism related activities consistent with State code Is managed and enforced equitably across the City. Does not create an undue burden on City staff and resources. Builds in cost recovery. Establish and manage a short-term rental regulation and program that Prevents residential neighborhoods from being turned into tourist areas to the detriment of full-time residents Does not negatively affect property values (and property tax revenue) Does not create pseudo hotels or “party houses” Minimizes public safety risks and nuisances such as noise, trash and parking problems Gives permanent residents the option to occasionally use their properties to generate extra income from short-term rentals.

RESULTS FROM JULY 2018 HOUSING SURVEY Should the City place more restrictions on short term rentals? 54% in favor of placing more restrictions on STRs 7% 5% reported having an STR Yes 39% 54% No Not Sure 70% said there was not enough housing in Langley

GROWTH OF SHORT TERM RENTALS IN LANGLEY Number of Private STR Operators by Year 60 50 40 30 20 No data 10 No data 0 2015 2016 2017 2018 2019

NUMBER OF TOURIST BEDS Tourist Accommodation by Number of Beds 400 350 Commercial STR Private STR Totals 300 250 200 150 100 50 0 2015 2016 2017

BUSINESS LICENSE Business Licenses by Year 2017 2016 2015 0 5 10 15 20 No Business License 25 30 Business License 35 40 45

TOURIST ACCOMMODATION TAX REVENUE Year Taxes Increase allocated ($) to Langley Increase (%) 2015 $68, 068. 65 - -- 2016 $75, 595. 59 +$7, 526. 94 +11% 2017 $77, 687. 70 +$2, 092. 11 +3% 2018 $78, 410. 01 +$722. 31 +0. 9%

TOURIST ACCOMMODATION Current Municipal Code Hotel (Inn at Langley) Motel (Langley Motel) Bed & Breakfast Inn Bed & Breakfast Rooms (rooms in the home or in an ADU) Tourist accommodation - commercial

MORATORIUM Six month moratorium in July 2018 Renewed in January 2019 Reviewing other codes What makes sense for Langley?

STATE AND COUNTY REQUIREMENTS The Washington State Department of Revenue requires registration for the purpose of collecting sales tax and lodging tax from guests. Island County Health Department requires a food handlers certificate.

PROPOSED ORDINANCE FRAMEWORK Short-Term Rental Type I – Rooms 1. STR Type I is hosted and the owner/operator shall reside on-site when guests are present. 2. The number of guest rooms shall be limited to no more than two. 3. Is permitted as an accessory or secondary use in all residential zone districts. Short-Term Rental Type II – B&B Inn 1. STR Type II is hosted and the owner/operator shall reside on-site when guests are present. 2. The number of guest rooms shall be limited to no more than six. 3. Is permitted as a principal (conditional) use in all residential zone districts. Short-Term Rental Type III - Commercial 1. STR Type III maybe hosted or non-hosted. 2. Is permitted as a principal use in the commercial zone districts 3. In the CB zone short term rental use is not permitted on the first floor and/or street level of the building. Short-Term Rental Type IV – Limited NEW 1. STR Type IV maybe non-hosted 2. The number of guest rooms shall be limited to no more than five. 3. Is permitted in all residential zone districts. 4. Is not transferable. 5. Permits are only valid for one year. 6. Limited number of permits.

LIFE SAFETY & FOOD SAFETY Guest room is a bedroom Food handling permits for those serving and/or providing food Smoke detectors Carbon Monoxide detectors Fire extinguisher Egress routes posted in each guestroom Off-site manager 24/7 contact with 20 minute response time

OTHER CONSIDERATIONS All parking must be onsite. Signs must be unlit and 4 square feet or less Quiet time is 9 pm to 9 am. Outdoor fires are not allowed. STRs on septic must have a performance evaluation and be approved for the number of bedrooms. No events or large gatherings in residential zones.

HOST COMPLIANCE Third party agency to assist us with enforcement and compliance Scan from March 2019 shows 56 listings

ENFORCEMENT License may be suspended after two documented violations Monetary penalties for each day of violation Repeat offenders could lose license to operate

REGULARIZING EXISTING STRS Existing STRs that have received City approval AND a business license can continue operation. Review as part of 2020 business license application. STRs that conform with current code and with the new code BUT have not received prior City approval will be required to apply for approval and obtain a business license. STRs that are not permitted by current code but comply with new code will have to go through the full application process.

NEXT STEPS Refine code amendments Establish new fee structure including utilities Share with Chamber of Commerce & Island County Tourism Board Prepare draft ordinance Begin formal adoption process

QUESTIONS AND ANSWERS

THANK YOU PO Box 366 CITY OF LANGLEY 112 Second Street Langley WA 98260 360. 221. 4246