Regulation of vacation homes a hot topic in South Lake Tahoe

The impact of vacation rentals, a popular option for tourist lodging, is a big, and controversial topic in South Lake Tahoe.

On one side you have the residents who are bothered by the noisy tenants and numerous cars associated with some vacation homes in South Lake Tahoe. On another side, you have the real estate community who have come out strong against an ordinance, saying that an ordinance will drive down home values because they speculate buyers won't want to buy a home they cannot rent out. Still, on another side, you have the City who is trying to create an ordinance that will satisfy all sides of the issue. And yes, another side, which is a group that includes the owner of Lake Tahoe Properties, Inc, Jim and Melinda Morris and the South Lake Tahoe Vacation Rental Alliance, who have sued the City and want the April 22 ordinance reversed.

All of this is expected to bring out a large crowd to Tuesday's City Council meeting when they discuss an additional ordinance which proposes a new permit process for vacation rentals that are in neighborhoods where Tourist Accommodation Units (TAUs) are not allowed.

The new ordinance is separate from the ordinance that was passed on April 22. That ordinance raised permit fees based on the number of people allowed, set fines for not following it, requires quiet after 10 p.m. and no hottub use between 10 p.m. and 7 a.m., requires parking areas designated for cars, set guidelines for trash and established a good neighbor policy. That ordinance was passed unanimously.

It is the next phase that is getting many in the home and vacation rental business so upset. The South Lake Tahoe Board of Realtors has led the fight by created www.keeptahoevacationrentals.com and sent out numerous emails to their realtors and through the Tahoe Chamber, calling for action. Via their website they say, "the new ordinance will effectively create a permanent moratorium on vacation rentals."

What the City Council will be looking at is a draft of the ordinance. It is stressed in the agenda that the draft is provided as a basis for discussion.

The key points of the draft ordinance are:
1) A permit request is received by the Development Services Department who will notify all properties within a 300 foot radius that the home will be a vacation home rental (VHR). A public hearing will be scheduled no less than ten days after the notice has been issued, giving the neighbors a chance to respond. The applicant will pay for the cost of the mailing. During the hearing the applicant will need to show that making their home a VHR will preserve the residential character of the area and will not be detrimental to the public health, safety and welfare of the neighbors.

2) The VHR permit will be reviewed annually and it is issued to a person, not the property. New home owners would have to apply for their own permit.

3) The City Zoning Administrator will look at several issues before approving, or denying, a permit. These include hot tubs that follow all County health and safety codes; homes to contain fire extinguisher, smoke and C02 detectors; exterior lighting to conform to TRPA standards; contact information available for owners including a 24/hr a day contact phone number; record retention for paying Transient Occupancy Tax (TOT); compliance with building and safety codes.

These are all discussion points for the Council. Also on the table is the possibility that homes comply with the American with Disabilities Act (ADA) since they are in sense a type of hotel/bed and breakfast.

Over the past few months, the City has reached out to the public, realtors, and vacation property owners through workshops, meetings and with the ability to gather comments on their website.

Many have been looking at communities across the state who are faced with the same situations.

In the City of Carmel, they have banned short term rentals. "In order to preserve Carmel-by-the-Sea's residential character, no home or subordinate unit may be rented for less than 30 consecutive days," it says on the City's website.

In May, the City of Santa Monica banned rentals for under 30 days as well

Carlsbad, CA has banned vacation rentals of under 30 days for half of the city, leaving the coastal region allowable.

In Bend, OR, many felt their shortage of affordable housing for lower and middle income residents was due largely to the conversion of residential units to commercial use. They adopted a new ordinance in April but did not ban them.