Douglas County Commissioners decide changes to Lake Tahoe VHR ordinance

DOUGLAS COUNTY, Nev. - In search of a perfect, balanced ordinance for vacation home rentals in Douglas County, the Vacation Home Rental (VHR) Advisory Board created a list of proposed changes and presented it to the County's planning commission, and on Monday, the County's Board of County Commissioners (BOCC) held a special meeting to discuss.

Over the past several months, an appointed VHR Advisory Board has met with staff and the public to work through the new ordinance that went into effect on July 15, 2021, hoping to refine a document that has pitted community members and commissioners against each other. As has been the case in all areas with VHRs, the issue has been a contentious one and always the subject of debate. VHRs have been allowed in the Tahoe Township area of Douglas County by ordinance since 2005. Currently, no more than 600 VHR permits may be issued within the Tahoe Township. There is currently a waitlist.

During the long public meeting Monday at the Hard Rock, the BOCC heard public comment from both sides along as well as county staff and Douglas County's VHR Program Manager, Ernie Strehlow. The advisory board's suggested changes to the ordinance had already been presented to the planning commission, and Monday was the time the commissioners weighed in. They did not all agree with the recommended changes, approved some, and changed others.

Many who spoke suggested the commissioners look at "reasonable restrictions" and keep the process and rules simple. As with other Lake Tahoe communities, the call is for responsible owners and renters who respect the neighborhoods, and for enforcement of the rules.

Current fees for VHRs range from $590 (Tier 1 - owner occupied) to $4,260 (Tier 3 - more than 10) for new permits, and $475 to $4,260 for renewals. All of those charges will have a four percent service charge added. Tahoe Douglas Fire also has charges added for required inspections.

All rentals for 10 or more occupants must also have monitored fire alarms (monitored by a third party) as well as all attached dwellings - condominiums, duplexes, or townhouses.

Some of the suggested amendments to County Code, followed by the Commissioner's decision:

• The Tier Structure is revised as follows:
- Tier 1 is retitled “Resident Host,” and the requirements are clarified
- Tier 2 is divided into 3 new tiers: “Tier 1,” with up to 4 occupants per unit; “Tier 2,” with up to 8 occupants per unit; and “Tier 3,” with up to 10 occupants per unit.
- Tier 3 is retitled as “Tier 4”

The BOCC voted 5-0 to not change to suggestions and keep the three-tier system.

• The “+2” occupancy provision is eliminated for properties with 4 or fewer bedrooms

The BOCC voted 4-1 to allow two people per bedroom and two additional people only if they are under 18 years of age.

• Density is reduced to 15% in all neighborhoods (except Tahoe Village, which is set at 40%)

The BOCC voted 5-0 to limit the number of VHR permits in every neighborhood to 15%. Currently, the limit is 15% for single-family homes and 20% for multi-family homes. There will be no distinction for Tahoe Village.

• The 50-person “daytime” occupancy for Tier 3 (proposed Tier 4) units is removed. The advisory recommendation was to limit occupancy to the daytime as well.

The BOCC voted 4-1 to limit daytime occupancy to twice that of the nighttime limit for guests.

• A 12-month waiting period for new property owners to apply for a VHR Permit is added

BOCC voted 4-1 not to adopt this recommendation so there will be no waiting period.

• A 100’ rule for 10+ occupancy units is created between a Tier 3 VHR and another home. The current rule had been "sufficiently far away."

The BOCC voted 4-1 against this recommendation so it will remain the same.

• Standards are added for noise monitors, which are required for units with 10 or more occupants. The Advisory Board recommended requiring noise monitors for Tier 2 permits after one substantiated noise complaint.

The BOCC voted 4-1 to adopt this recommendation.

The owners of any property being advertised and/or operated as an unpermitted VHR located anywhere within Douglas County in violation of the Douglas County Code and the Nevada Revised Statutes remain subject to a penalty of up to $20,000.

Once staff puts the changes into an ordinance it will come back before the BOCC for a vote.