Sunday, May 5, 2024

City Council moves toward regulating short-term rentals

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The Granbury City Council has taken the first step in addressing the growing number of short-term rentals that have led to complaints from homeowners.

Although ordinance amendments made at the council’s regular meeting on July 5 were met with appreciation from some in the audience, the tweaks did not address a top concern: neighbors being replaced by vacationing strangers.

The city isn’t finished, though, and the issue of density — how many short-term rentals, or STRs, will be allowed in neighborhoods — is expected to be considered at a later date.

Deputy City Manager Michael Ross explained that the initial changes were to clear up confusion and to “primarily clarify and correct a lot of our existing short-term rental-related ordinances and guidelines. It was just about impossible to administer from a staff perspective because it was so unclear in so many areas.”

Mayor Jim Jarratt told the Hood County News, “We now have a workable document that we can continue to work on. It’s just a work in progress.”

Amendments that were approved took effect Monday.

They do not impact property owners who currently have Specific Use Permits for STRs, nor do they affect the SUPs for un-hosted STRs that were approved by the council at its July 5 meeting.

However, should an SUP no longer be in effect due to expiration or violations, the property owner will be required to adhere to the new policies if they want to continue leasing their property as an STR.

The Comprehensive Plan adopted by the City Council in 2016 identified the downtown area as an opportunity for STRs.

According to the zoning ordinance, bed-and-breakfasts may be permitted within residential districts upon the issuance of an SUP and in accordance with supplemental land use standards including parking, signage, architectural design and life safety, which is a reference to smoke detectors.

Some of the rules pertaining to those things have been unclear.

In recent months, homeowners, particularly those who live on East Bridge Street and Counts Alley near the square, complained to the City Council that their neighborhoods were disappearing because so many homes were being converted for commercial usage as STRs.

The growing number of short-term rentals is indicative of Granbury’s growing tourism industry. According to the city, 68 SUPs for transient lodging were issued between 2001 and 2021. Of that number, 47 — 69% — were approved between 2016 and 2021.

When homeowners began coming to council meetings to complain about the number of STRs in their neighborhoods, council members indicated a willingness to impose stricter regulations but they expressed concern about respecting property owners’ rights. They wanted to await the outcome of a related case that was pending before the Texas Supreme Court.

That case involved a lawsuit against the city of Arlington.

Officials there created districts where STRs are allowed and districts where they are not allowed. Some who were denied use of their property as an STR filed a lawsuit.

The case was ultimately decided in favor of the city of Arlington.

While that case was pending, Granbury city staff worked on proposed amendments to the city’s Bed and Breakfast ordinance.

Staffers obtained feedback from a community meeting attended by about 75 people. They also examined how eight cities in the region are regulating STRs.

Their research found variations among the cities’ policies, with some regulations resulting in lawsuits. City employees also found that courts favor regulation over an outright ban.

Zoning ordinance adjustments presented to the City Council included clarification of parking requirements; review of terms such as “bedroom” and “suite;” and re-evaluation of language defining the geographic area in the Historic Preservation and Historic Compatibility Districts in and near the downtown area.

Changes include defining a bedroom as areas of a dwelling intended as sleeping quarters and not including a kitchen, dining room, bathroom, living room, utility room, closet or storage area.

Five people who live near the square spoke at the council meeting. Some expressed gratitude for the city’s efforts but asked that the city continue working on such issues as density and quick response from property owners when problems arise.

Pamela Brewster, who said she lives on Counts Alley, thanked city officials for the new definition of bedrooms.

“You listened to us. Lots of our concerns have been met,” she said. “(But) the density has not been met yet. The density is a huge issue. The proliferation of these un-hosted short-term rentals does affect our everyday lives.”

The Planning and Zoning Commission also requested further study related to density. That was among a few recommendations made by the panel when it considered and approved the proposed amendments at the P&Z’s regular meeting on Monday, June 13.

Ross referred to the amendments as the “first” round of changes for the council to consider.

Mayor Pro Tem Trish Reiner told the HCN, “Basically, we’re just at a starting point right now. It’s going to be a very fluid document for the next few months.”