Douglas County commissoners approve new VHR ordinance and appoint advisory board

DOUGLAS COUNTY, Nev. - Vacation home rentals (VHRs) in Douglas County will have a new set of rules to follow starting the third Thursday in July, the 15th. By a vote of 4-1, the County Commissioners approved the updated ordinance that adds new parking regulations, a cap of 600 permits in Tahoe Township, creates a new tier system based on home size, and other updates. There will now be a civil penalty of $20,000 for operating an unpermitted Tier 3 VHR and $10,000 for unpermitted Tier 1 or Tier 2 homes.

The new rules will start when the VHR owners renew their permits the next time following the July 15 date.

As with other communities around Lake Tahoe, the ordinance was updated to get residents in Tahoe Township (area of Douglas County at Lake Tahoe) relief from VHR-related noise, parking, and trash issues, while also allowing homeowners the ability to rent their homes out on a short-term basis. The collected tax on overnight stays adds over $2 million a year to the County's revenues.

County staff and the commissioners had found it an increasing need to update their ordinance to prevent the continued burden on County services and impacts on
residential neighborhoods and homeowners adjacent to a vacation rental home,
who ultimately bear the burden of these vacation homes. Funds will be allocated to increase enforcement and reduce the need for neighbors to file complaints against the vacation home.

There will also be a cap of 600 VHR permits in Tahoe Township. At the time of last week's meeting, there were approximately 550 permits issued.

Also during the meeting, the commissioners appointed five people to the Vacation Home Rental Advisory Board. Brian “Keith” Byer, Jeffrey Mains, Micki Hempler, Lauren Romain, and Robert Drabant were appointed to the new board. They will provide the commissioners with additional advisory opinions regarding future VHR
related matters and act as the Board of Appeals for VHR violations and complaints. At their first meeting. the Advisory Board will choose a chair, vice-chair and decide which members will hold a two-year term, and which a four-year term. This will create staggered terms in the future.

Some provisions of the updated ordinance:

Falsifying any information contained in the application or provided to Douglas County in conjunction with a VHR permit subjects the applicant to a $10,000 civil penalty and will ban the applicant from ever obtaining a permit for all tier 1 and tier 2 units.

New tier systems the homes will fall into -

Tier 1 – Owner-occupied at all times when the unit is rented and having four
or fewer occupants. The unit must be advertised as being occupied by the owner
during the rental period. Tier 1 permits are excluded from the cap.

Tier 2 – Units with up to 10 occupants.

Tier 3 – Units above 10 occupants require a VHR special use permit development application. Following the enactment of this ordinance, if a tier 3 unit fails to obtain a VHR special use permit within 180 days, they shall only be authorized to operate at tier 2 (i.e., maximum of 10 occupants).

Property owners that have a valid VHR Permit from the County must demonstrate at the time of renewal that the dwelling unit was rented in the prior year. Failure to demonstrate use of the permit may result in the permit not being renewed. This is intended to prevent Vacation Home Rental Permits from being obtained with no intent to rent the property, thus tying up the cap of 600 permits.

Permitted occupancy has been reduced to two people per bedroom or four per parking space, whichever is less.

A local licensed property manager is required for all tier 3 units unless the property is managed by the homeowner that is a Douglas County resident.

Each owner of a vacation home rental must designate a local contact person who
has access and authority to assume management of the unit and take remedial
measures. This contact person must live within 30 minutes from the unit and is
responsible for resolving complaints within one hour after receipt.

For all permits issued or renewed after May 1, 2021, the local contact shall have
successfully completed a training course and achieved a qualifying score on a
County administered certification test. If the owner is the local contact, they too must take the course. It is currently being created and will be in place by the July 15 ordinance date.

Permits may be issued to family trusts and individuals only, and are not
transferable with the sale of the property; limited liability companies, corporations, partnerships, and other similar commercial arrangements may not apply for nor receive a new permit.