Proponents of the bill say that its passage will help property owners earn extra income and will give tourists more lodging options. Local governments could still enforce ordinances related to parking, noise and nuisance complaints as long as such regulations are applied consistently to owner-occupied residences as well. House Bill 4722 passed the House 55-47 during an extended session early Wednesday. Humphrey said short-term rentals have been destroying our town for the last seven years. He moved to New Buffalo, a Southwest Michigan lakefront community 35 miles from Chicago, with a young family and lived the experience in his own neighborhood. But she said there are problems with the bill, particularly the stipulation that permits short-term rentals in up to 30% of existing residential units. They replaced it as a 20-person Airbnb that completely wrecked our neighborhood, he said. (The Center Square) - In an overnight session, the Michigan House voted 55-48 to pass a bill that aims to prohibit local governments from banning short-term rentals. Michigan House passes bill barring the banning of short-term rentals My biggest fear is housing and apartments for our seasonal and everyday laborers in Petoskey; that it will take up those spaces with short-term rentals knowing someone can make one months rent in a week during the busy season of the year, said Petoskey, Petoskey has an ordinance that permits short-term rentals in a business district with a city license. Michigan House Bill 4722 ( Prior Session Legislation) MI State Legislature page for HB4722 Summary Sponsors Texts Votes Research Comments Track Status Spectrum: Strong Partisan Bill (Republican 12-1) Status: Engrossed on October 27 2021 - 50% progression, died in chamber Action: 2022-10-11 - Referred To Committee Of The Whole We still oppose it and theres been no negotiation,, . PDF HB-4722, As Passed House, October 27, 2021 - Michigan Legislature Humphrey agrees, saying New Buffalo has 150 rentals with active licenses plus a number of illegal rentals that the city struggles to police. It also caps the total number of short-term rentals as a percentage of all residences, but officials say the proposed 30% cap is unreasonable for small communities. The people in Lansing have no concept about what this bill will do to local municipalities.. Michigan Legislature - Bills Neighboring Park Township is in the middle of a months-long study of its short-term rental situation as its planning commission explores potential regulations of the rentals, which have generated resident complaints. Holland is another West Michigan community that has enacted local ordinances to manage short-term rentals, permitting them in commercially zoned areas such as the downtown. DEIJ Policy | Ethics Policy | Privacy Policy. This exemption is remarkably narrow and specific; it does not seem to further a distinguishable public policy purpose, but rather it appears to be a byproduct of political maneuvering among legislators. on new short-term rental licenses until Dec. 13. "Legislation should not politicize our . The legislation states a short-term rental is a residential use of property and a permitted use in all residential zones. The bill does not appear to have enough support in the legislature to override a veto. This means that at least 30% of the residential units in each municipality could be potentially used as short-term rentals. Register now for our free OneVote public service or GAITS Pro trial account and you can begin tracking this and other legislation, all driven by the real-time data of the LegiScan API. Rigterink has been fielding plenty of calls from members after the surprise vote. The San Francisco-based company Airbnb has a. of fighting local regulations across the country. They have said that communities are banning short-term rentals. In addition, many lakeshore communities are grappling with a, shortage of available, affordable, year-round housing. HB 4722 is supported by Airbnb, the Michigan Association of Realtors and the Rental Property Owners Association. Follow Michigan Advance on Facebook and Twitter. The ordinance has been in place since 2014, prohibiting new vacation rentals in residential districts, but Petoskey still has a problem with STRs operating illegally. "Michigan's hotel industry remains in a weakened state from a pandemic that is still presenting very real challenges to its survival 18 months later," said President and CEO Justin Winslow on Wednesday. MARQUETTE State Rep. Sara Cambensy, D-Marquette, is a cosponsor of House Bill 4722, which would "amend the Michigan Zoning Enabling Act to provide that the short-term rental dwelling, for 30 . Van Beek also raised concerns about housing stock issues if short-term rentals are allowed to go virtually uncapped, particularly among affordable housing units. The city also launched a, pilot program for non-owner occupied short-term rentals. If 30% becomes the number, then enforcement becomes a huge issue.. Please see our republishing guidelines for use of photos and graphics. with the growth of companies like Airbnb and VRBO in the name of protecting private property rights. The city allows short-term rentals in specific zoning districts and requires out-of-town owners to designate a local agent to manage the rental and address problems. The key thing here is, from our perspective, were very strong on private property rights, and people should be able to do what they want with their own property, said Mackinac Center Director of Marketing and Communications Jarrett Skorup, who testified in favor of the bills in May. The final result of the House vote was 55 in favor, 48 opposed, and 6 abstentions. It is not subject to a special use or conditional use permit or procedure . In a late-night vote last week, the Michigan House of Representatives approved a bill that essentially nullifies local ordinances on short-term rentals which have become. Cambensy weighs in on proposed bill - The Mining Journal House Bill 4722 passed the Michigan House recently and is being considered by the Michigan Senate. A House Fiscal Agency Legislative Analysis of House Bill 4722 stated that the bill would: amend the Michigan Zoning Enabling Act to provide that the short- term rental a dwelling (for 30 days or less) is a permitted residential use of property that is not subject to a special use or conditional use permit or procedure. The bipartisan legislation, House Bill 4722 and Senate Bill 446, revisits an ongoing debate about local government control over short-term rentals. While the Legislature is currently controlled by Republicans, Democrats won both chambers, which adds to the uncertainty of what might be on the last session agendas of the year. State bill would take away local control for short-term rentals Short-term rentals have been on the Michigan Legislatures radar for. The average limit is 6.4% of the housing stock based on other Leelanau County communities that have short-term rental caps. The bill passed just after 2 a.m. Wednesday morning, and it could mean more . A local unit of government shall not adopt or enforce zoning ordinance provisions that have the effect of prohibiting short-term rentals," the bill states. This is a local issue.. Its now up to the Senate to move on the bill in the lame duck session following the Nov. 8 election. Its the desirability of the area. Michigan House Passes Short-Term Rental Legislation in Late-Night That seems to be lost.. The state wants to come in and say, We know better, preempting them from the work that they have done.. It really could happen and you would have all of these communities where the population could dip 20 or 30%.. for service-industry workers or people who want to relocate to the community for employment. their names from the bill, in a somewhat unusual move. Humphrey said more than 20 community leaders in lakeshore communities in Southwest Michigan have united to oppose the legislation by adopting formal resolutions and contacting legislators. Rather, it is a residential use of property and should be permitted in all residential zones. Right now, we just have under 300 short-term rentals, McGinnis said. Humphrey said short-term rentals have been . I was very surprised it moved on [Oct. 27] in the way and fashion it did, said Jennifer Rigterink, a legislative associate with the Michigan Municipal League (MML), which opposes the bill. Data on Open States is updated periodically throughout the day from the official website of the Michigan Legislature. If we let it go hog wild, we wont have neighborhoods.. Follow Michigan Advance on Facebook and Twitter. The substitutes would keep short-term rentals from being zoned out of existence, but would not stop local ordinances from regulating noise, traffic, advertising and capacity. This is simply special-interest lobbyists who are influencing our state legislature to benefit themselves to the detriment of all of the communities of Michigan.. Back in the spring, Steckloff agreed to add her name to the bill after being told it was about personal property rights not short-term rentals. Airbnb says HB 4722 and HB 5605 would modernize Michigans regulation of short-term rentals. House Bill 4722, introduced by Rep. Sarah Lightner, R-Springport Township, passed 55-48 after the House remained in session past 2 a.m. Our stories may be republished online or in print under Creative Commons lisence CC BY-NC-ND 4.0. The village issued a moratorium on short-term rental licenses in June and recently extended it for an additional 90 days. Why are they getting more out of this than the person who lives next door? I dont have two identical townships. New Buffalo Mayor John Humphrey has been outspoken about his opposition to the rise of Airbnb-style rentals in his community, which held several packed public meetings in 2021 as the City Council took up the issue. Votes: MI HB4722 | 2021-2022 | 101st Legislature | LegiScan LANSING, Mich. Michigan's House of Representatives says cities can't block short-term rentals in their communities. Rigterink disagrees and said that is the whole point of zoning for conflicting uses. They maintain local communities are in essence banning short-term rentals by limiting the number of licenses and restricting where they can be located. DONATE The bill has been referred to the Senate Committee on Regulatory Reform. 4722 bill to amend 2006 PA 110, entitled "Michigan zoning enabling act," (MCL 125.3101 to 125.3702) by adding section 206b. The Village of Suttons Bay is reexamining its current ordinance after complaints from residents and even hired a firm, Beckett & Raeder of Ann Arbor, to research short-term rental regulations in communities around Leelanau County and elsewhere. Michigan Advance maintains editorial independence. The Republican-led Senate Regulatory Reform Committee in late September moved the legislation to the floor in a 6-3 vote. Our message is very clear that we need to have thoughtful local ordinances to take into consideration all of the unique aspects of a particular community, he said. lived the experience in his own neighborhood. Nobody knew they were voting on it.. Proponents say that will prevent outside investors and corporations from owning too many units, but opponents disagree. HB 5605, which Rep. Graham Filler (R-DeWitt) introduced in December 2021, proposes an excise tax on short-terms at a rate equal to the tax of traditional lodging, along with a requirement that accommodation intermediaries such as Airbnb be responsible for the remittance of all their hosts taxes. Tackling short-term rentals was a tumultuous two-year process that included a moratorium on city-issued licenses for rentals in May 2020, and a Nov. 23, 2021, special session where the City Council approved a zoning ordinance amendment that prohibits new short-term rentals in certain residentially zoned districts. Those in opposition counter that year-round residents also have rights to live in residential areas without the issues that come with short-term rentals, such as trash, noise, parties, and parking issues, and local zoning ordinances are designed to minimize conflicting land uses in neighborhoods. The bill would prohibit local governments from adopting zoning regulations banning short-term rentals. Before HB 4722 can become law, it still must be passed by the Senate and then signed into law by Governor Whitmer. Were still at the table, ready and willing to negotiate if the opportunity arises., There is a growing trend in local government to enact zoning bans that preemptively tell property owners they are unable to rent, according to a statement on the Michigan Realtors, . Under HB4722, that number could increase to 750 short-term rental units. YouTubes privacy policy is available here and YouTubes terms of service is available here. Holland's regulations on short-term rentals were adoptedlast year after the pilot program was deemed a success. Legislative Update on Short-Term Rentals Bill | Mika Meyers Theres definitely work being done to try to get it to a vote., Humphrey opposes attempts to legislate the issue from Lansing and says HB 4722 is a, giveaway to private interests at the expense of the taxpayer.. Under the substitute bill, local governments may limit the number of short-term rentals under a common owner to two or more. HB 4722 would amend the Michigan Zoning Enabling Act of 2006 to define and add the term "short-term rental" to the Code as a residential use of property that is permitted in all residential zoning districts. 206b. HOLLAND The Michigan House of Representatives stayed in session through the early hours of Wednesday morning, passing a bill that local officials say will largely strip communities of their ability to regulate short-term rentals. We know from other communities, what this could have the impact of doing is taking either single-family homes that are owner-occupied, or potentially long-term rental properties, and converting them away from those uses, which are homes for long-term residents, whether they be owner-occupied or rentals, and convert them into these short-term rental uses, which only puts additional pressure on what we know is a very tight housing market, particularly a very tight affordable housing market.. The bill targets those efforts and essentially strips a local municipalitys ability to regulate short-term rentals through local zoning ordinances or make them subject to a special-use or conditional-use permit. Last week, Rep. John Damoose, R-Harbor Springs, and Rep. Jack OMalley, R-Lake Ann, proposed House Bill 4985. Zoning is intended to regulate conflicting land uses and problems that ensue, and communities zone based on master plans, local needs, and the Michigan Zoning Enabling Act. http://legislature.mi.gov/doc.aspx?2021-HB-4722, SUMMARY OF BILL REPORTED FROM COMMITTEE (Date Completed: 10-10-22), Summary as Passed by the House (11/2/2021), Summary as Reported from Committee (6/24/2021), District THE PEOPLE OF THE STATE OF MICHIGAN ENACT: Sec. Several communities in Ottawa County have regulations on short-term rentals or continue to examine the issue, while also opposing the bill. - Amendments made by the House will be blue, such as: House amended text. Michigan Legislature - House Bill 4722 (2021) She voted no last week. Were still at the table, ready and willing to negotiate if the opportunity arises.. The city even took an illegal STR operator to court after they were cited numerous times and won. Under the bill, local governments can continue to create and enforce ordinances related to inspections, noise, traffic and other nuisances that apply to rentals and owner-occupied residences. Access to affordable housing has been a prevalent issue throughout greater-Holland. in residential areas with various regulations that was adopted as part of its local zoning ordinance. Airbnb will continue to work with leaders across the state on balanced rules that protect property rights, help address community concerns, and support the states tourism economy.. The bill was referred to the Senate Committee on Regulatory Reform. She lives in Norton Shores and her work can be found at marlarmiller.com. The legislation prohibits local municipalities from adopting zoning regulations that outright ban short-term rentals or make them subject to a special-use or conditional-use permit. Marla R. Miller is an award-winning journalist and content marketing writer who previously worked for newspapers in Indiana and the Muskegon Chronicle. , but bills havent gained traction until last month. One of the biggest challenges facing Traverse City is having enough quality housing for a range of incomes and demographics, including families, retirees, single individuals, young professionals and a growing homeless population. But opponents say short-term rentals should be regulated at the local level. "It was disappointing, then, to see the House of Representatives work through the night to pass legislation that will make the hotel industry's recovery that much harder.". Jennifer Rigterink, assistant director of state and federal affairs for the Michigan Municipal League, one organization that opposes the legislation. The city also launched a pilot program for non-owner occupied short-term rentals in residential areas with various regulations that was adopted as part of its local zoning ordinance. Michigan House says cities can't block short-term rentals - WZZM13.com 93, District Toilet paper wasnt the only shortage caused by the pandemic. In short, lawmakers claiming the current bills wont take away local control is a false narrative, Rigterink said. This legislation protects private property rights by preventing short-term rentals from being zoned out of existence and also allows local governments to effectively regulate these properties, he said. The San Francisco-based company Airbnb has a long history of fighting local regulations across the country. , Each community is different. Short-term rentals also are popular among tourists throughout Michigan. . Families across Michigan rely on home sharing to supplement their income and welcome visitors whose spending supports the states businesses and tourism economy, said Vincent Frillici, a public policy regional manager for San Francisco-based Airbnb, in a statement. The way short-term rentals are defined in the substitutes still provide them protection from local regulation, she said. If you purchase a product or register for an account through one of the links on our site, we may receive compensation. Dan Gilmartin, Michigan Municipal League CEO, called the push for a ban against bans a scare tactic during a Monday morning press conference. We have had a long history of dealing with short-term rentals and a set of regulations that are strongly supported by our community.. In Grand Haven, that means up to 1,500 homes could convert to short-term rentals. Representatives from Michigan Township Association testified in opposition to HB 4722 at early House committee hearings and worked on the compromising legislation, but it hasnt gained traction, said Judy Allen, MTAs director of government relations. Several of the hotels in Holland Township opened in the past three years. Amends 2006 PA 110 (MCL 125.3101 - 125.3702) by adding sec. amendment that prohibits new short-term rentals in certain residentially zoned districts. I dont have two identical townships. The measure approved by the House is a solid compromise that provides both certainty for private property owners across the state and flexibility for local municipalities that deserve to have some control over the planning and zoning of their communities, Lightner said. 64. Taking away local control ties our hands on this, and it could be many other things, Carruthers said. He was surprised about the late-night vote on the bill. House Bill 4722, along with its companion Senate Bill 446, has been making its way through the Legislature for several months. Appropriations Bills Bill Lists Daily Introduced, Passed by Chamber, Enrolled Bills and Adopted Resolution Report Most Recent Bill Activity . The solution I brought forward ends these bans while creating consistency and restoring the rights of Michigan families, so they can invest confidently in a home without worrying whether they will unexpectedly lose the ability to rent that home if they choose, she added. When it comes to the property rights issue, there seems to be a lack of acknowledgement that everybody has property rights, Rigterink told the, . Who determines the 30% of property owners eligible to have a short-term rental while denying the other 70% is it based on location, a first-come, first-serve application process, housing density or other factors? In addition, the citys infrastructure water, sewer and other utilities were built for a year-round population. They should be paying lodging taxes, a tourism tax to supplement the municipality.. Besides taking business away from traditional hotels. It wipes out local zoning control from every municipality, Humphrey said. Our stories may be republished online or in print under Creative Commons license CC BY-NC-ND 4.0. The House Committee on Commerce and Tourism approved the bill on May 25, 2021. McGinnis has attended previous legislative hearings in Lansing to address attempts to change the law. Short-term rentals take away year-round housing stock, and affordable housing is already an issue for local residents and service-industry workers who live in tourist towns. Humphrey opposes attempts to legislate the issue from Lansing and says HB 4722 is a giveaway to private interests at the expense of the taxpayer. Humphrey said more than 20 community leaders in lakeshore communities in Southwest Michigan have united to oppose the legislation by adopting formal resolutions and contacting legislators. Michigan Restaurant & Lodging Association oppose the legislation and have offered compromises. Calls to Michigan Realtors were not returned for this story, but the association does have a statement on its website, maintaining that local governments can enforce nuisance ordinances and housing codes to protect public safety and address any unruly behavior. You cant all of a sudden convert a single-family house into a store or an auto mechanic shop. Representative Markkanen's office declined the Gazette's request for comment. In Leelanau County, another popular vacation destination, villages and townships continue to grapple with the issue. worked on the compromising legislation, but it hasnt gained traction, said Judy Allen, MTAs director of government relations. We have put forth compromise after compromise, Allen said. has a problem with STRs operating illegally. , sponsored by Rep. Sarah Lightner (R-Springport Twp. This would have the effect of undoing regulatory frameworks of many Michigan municipalities that restrict where and how short-term . The bill would not prohibit zoning ordinance provisions that regulate noise, advertising, traffic, or other nuisances related to the rental of a dwelling, but only if such regulations are applied consistently to owner-occupied residences as well. But when warm weather rolls around, you soon discover a revolving door at the house next door. Lightners office declined a request for an interview, but sent the Advance her statement. Local government officials say they're disappointed after the state House passed a bill that allows homeowners to set up short term rentals where ever they own property. 105, District In Holland Township, the rentals are banned. Contact Editor Susan Demas for questions: [email protected]. As currently written, House Bill 4722 and Senate Bill 446 would impede a local government's ability to inspect these mini-hotels to ensure they are being operated safely. The bipartisan legislation, House Bill 4722 and Senate Bill 446, revisits an ongoing debate about local government control over short-term rentals. Bill authors are adamant that the bills will not overstep local zoning ordinances. John Humphrey has been outspoken about his opposition to the rise of Airbnb-style rentals in his community, which held several packed public meetings in 2021 as the City Council took up the issue. Ottawa County has also opposed it. Short-term Rental Preemption Bill Passed By House - Inside 208 A 30% reduction in use during the winter months has other implications. The definition of common ownership has a loophole big enough to drive a semi through it, Rigterink said. Under HB 4722, the cap is up to 30% of a communitys existing housing stock, which opponents say is unreasonable for small communities. 206b. Besides taking business away from traditional hotels, short-term rentals arent subject to the same taxes or regulations. (Dec. 5), State bills would take away local control for short-term rentals, prompting local opposition, Local groups hoping for 'compromise' with Legislature over short-term rental regulation, Low income housing, single-family homes remain focus in Holland, Park Township hires firm for short-term rental help, Your California Privacy Rights/Privacy Policy. These are some of the issues created by short-term vacation rentals, according to local government and municipal officials who oppose recent state legislation that would preempt local regulations on short-term rentals. To me, this is a prime example of cities being allowed to legislate for themselves, Murphy said. Are There Legal Restrictions To Homeowners Or Tenants Opening Their Grand Haven welcomes short-term rentals, but there needs to be a balanced approach, McGinnis said. The measure approved by the House is a solid compromise that provides both certainty for private property owners across the state and flexibility for local municipalities that deserve to have some control over the planning and zoning of their communities, Lightner said in a statement. There is a growing trend in local government to enact zoning bans that preemptively tell property owners they are unable to rent, the group says. Bridgman Council members told short-term rental bill alive in State 67, District 50, District During the House session, which lasted from 1:30 p.m. Tuesday, October 26 until a few hours past midnight, the bill was read to the House for its second time, then amended with a substitute bill, and then the substitute bill was presented to the House for the bills required third reading before the full chamber could vote on it. Of Michigans 533 cities and villages, not one has a full short-term rental ban on the books, Gilmartin said. Michigan Municipal League, Michigan Township Association and Michigan Restaurant & Lodging Association oppose the legislation and have offered compromises. Municipalities dismayed, property owners pleased as short-term rental