Homes are being purchased and not available when they have a business locate in their community, Allen said. The reason it is a big deal now is the internet and Airbnb, he added. Several of the hotels in Holland Township opened in the past three years. We feel local communities are best equipped to deal with planning and zoning issues. SUBSTITUTE FOR HOUSE BILL NO. 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. We ask that you edit only for style or to shorten, provide proper attribution and link to our web site. The bipartisan legislation, House Bill 4722 and Senate Bill 446, revisits an ongoing debate about local government control over short-term rentals. That seems to be lost.. One issue hinges on whether short-term rentals are considered commercial use. The Arguments Against Short-Term Rentals Are Shallow View Latest Bill Text Sign In to Follow Humphrey agrees, saying New Buffalo has 150 rentals with active licenses plus a number of illegal rentals that the city struggles to police. ), protects an owners right to rent. - Amendments made by the House will be blue, such as: House amended text. He was surprised about the late-night vote on the bill. in residential areas with various regulations that was adopted as part of its local zoning ordinance. I dont want this legislation unintendedly to create a further gap, a further erosion of our housing supply.. 50, District 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.. , Each community is different. There is a tradition up here, long before Vrbo and Airbnb, of short-term rentals. Daniel Krason / Shutterstock.com. 206b. Like any land use, too much of one thing becomes a negative impact on other things.. In order for us to maintain a quality life in Grand Rapids, we need additional housing supply, he said. Related: Lawmakers look to stop cities from banning short-term rentals, but some say they add to housing shortage. Michigan Municipal League says Airbnb legislation based on 'false Were on high alert on that bill, said Jennifer Rigterink, assistant director of state and federal affairs for the Michigan Municipal League, one organization that opposes the legislation. More: State bills would take away local control for short-term rentals, prompting local opposition, More: Local groups hoping for 'compromise' with Legislature over short-term rental regulation. a Southwest Michigan lakefront community 35 miles from Chicago. 23 Mika Meyers Attorneys Listed in Best Lawyers. Republican-led Senate Regulatory Reform Committee in late September moved the legislation to the floor in a 6-3 vote. House Bill 4722, along . Tourism is important to Michigan and short-term rentals provide visitors the opportunity to experience our beautiful state.. Other studies show short-term rentals deplete housing stock and increase rent for long-term renters. Theres also some opposition from business groups, like the Michigan Restaurant and Lodging Association, which says the legislation would add to the challenges the hotel and lodging industry faces while continuing to recover from the COVID-19 pandemic. The rental of residential property is important to Michigan second home markets and in urban areas around event destinations. Thirty percent of 12,185 is 3,655 meaning if HB 4722 were to become law as written, Holland couldnt set a limit on the number of short-term rentals below 3,655. City officials from Grand Rapids, Frankenmuth and Marquette joined the press conference to voice their concern over short-term rentals eating away at an already competitive housing market. We are not opposed to short-term rentals, Rigterink said. PDF Resolution Opposing Michigan House Bill 4722 and Senate Bill 0466 (2021 Michigan Municipal League, Michigan Township Association and. The practice helps Michigan property owners cover the cost of property taxes and maintenance. HB 4722 - Michigan House (2021-2022) - Open States The substitute bill adopted by the House adds several additional provisions to the version reported out of the Commerce and Tourism Committee. I dont have two identical townships. Michigan Legislature - House Bill 4722 (2021) We have put forth compromise after compromise, Allen said. "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.". Community Rules apply to all content you upload or otherwise submit to this site. 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. In the early morning hours of Wednesday, October 27, 2021, the Michigan House of Representatives passed House Bill 4722 ("HB 4722"), which significantly limits how local governments may regulate short-term rentals. DEIJ Policy | Ethics Policy | Privacy Policy. Amid the wrangling, three of the bills co-sponsors Reps. Sara Cambensy (D-Marquette), Samantha Steckloff (D-Farmington Hills) and Brad Paquette (R-Niles) withdrew their names from the bill, in a somewhat unusual move. Noise, trash and nuisance complaints, and a lack of affordable housing for year-round residents, are some of the issues associated with too many short-term rentals in a community. Why are they getting more out of this than the person who lives next door? In addition, many lakeshore communities are grappling with a, shortage of available, affordable, year-round housing. HB 4722 specifically states short-term rentals are not a commercial use of property. Michigan House Bill 4722 (Prior Session Legislation) MI State Legislature page for HB4722. Sign up here Lightner first introduced the bipartisan legislation back in April. Each one has different needs and different makeups. Holland's regulations on short-term rentals were adoptedlast year after the pilot program was deemed a success. The San Francisco-based company Airbnb has a long history of fighting local regulations across the country. If its 30% as proposed, right now it would allow up to 500 short-term rentals in the city of Petoskey, and I think thats way too much, Murphy said. We recognize from employers and those that are looking for housing that there just are limited housing options available to people, he said. MI HB4722 | 2021-2022 | 101st Legislature | LegiScan Introduced by Rep. Sarah Lightner R-Springport on April 27, 2021. Holland Township does not allow short-term rentals through services like VRBO, Airbnb and Homestay. If you purchase a product or register for an account through one of the links on our site, we may receive compensation. Banning the right to rent harms property owners and local businesses in many communities all over Michigan.. DEIJ Policy | Ethics Policy | Privacy Policy. destroying our town for the last seven years. He moved to New Buffalo. There has been some movement. Typically, tourists, vacationers and some business travelers rent them for a brief stay, or not more than 30 days, through platforms like Airbnb, VRBO, Vacasa, Turnkey and others. The average limit is 6.4% of the housing stock based on other Leelanau County communities that have short-term rental caps. In todays digital economy, its relatively easy for an outside investor or homeowner to advertise their property as a short-term rental. 59, District The current ordinance permits short-term rentals in residential areas. Companion Senate Bill 446 is still making its way through the upper house with similar provisions. Our restaurant workers are having a hard time living here [and] were a foodie town, Carruthers said. HB 4722 has been referred to the Senate Committee on Regulatory Reform, which approved a bill earlier this year that was identical to the previous version of HB 4722 approved by the House Committee on Commerce and Tourism. 4985, calling it a compromise. Under HB 4722, the cap is up to 30% of a communitys existing housing stock, which opponents say is unreasonable for small communities. Short-term rentals have been on the Michigan Legislatures radar for several years, but bills havent gained traction until last month. ContactArpan Lobo, Cassandra Lybrink and Carolyn Muyskens at newsroom@hollandsentinel.com. 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, . Many lakeshore communities have enacted similar ordinances in recent years in an effort to preserve housing stock and residential neighborhoods, maintaining that short-term rentals are a commercial use of property. Petoskey has an ordinance that permits short-term rentals in a business district with a city license. But short-term rentals do bring added traffic, nuisance and public safety issues. Short-term rentals also are popular among tourists throughout Michigan. The legislation would give local governments the authority to limit the number of short-term rentals owned by the same person in an effort to prevent investors from buying up multiple homes. for service-industry workers or people who want to relocate to the community for employment. Those looking for a compromise say HB 4722 fails to address a key issue, which is how to distinguish between homeowners with a second home who occasionally rent it out versus owners and investors that buy up homes and operate them from out-of-state as for-profit enterprises. Lawmakers and opposing groups have worked to introduce compromise legislation that recognizes the difference between homeowners who rent their properties a few weekends a year and those who buy up properties to operate them as mini hotels. House Bills 5465 and 5466 are supported by a coalition of organizations representing local government, public safety, the restaurant and lodging industry. Banning the right to rent harms property owners and local businesses in many communities all over Michigan.. While Metcalf feels for people who live next to problematic short-term rentals, he said local communities need to focus on enforcement of occupancy limits, noise, parking and nuisance violations. In general, we definitely feel that the bill as proposed really doesnt have any compromise built into it, Van Beek 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. From the township's perspective, short-term rentals are prohibited, and we believe that any action that takes away local zoning authority from the local unit of government is not good legislation, said Township Manager Steve Bulthuis. Short-term rentals incur a much larger cost due to the number of people they bring in, Humphrey said. We still oppose it and theres been no negotiation,, . For instance, many vacationers stay up later and may have bonfires, parties or play loud music while the person next door is trying to sleep and get up for work the next day. 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. 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. It was sounding a lot more like they were going to limit it down to nothing, which concerned me, Metcalf said. The bills remove local governments' ability to outright ban. The average limit is 6.4% of the housing stock based on other Leelanau County communities that have short-term rental caps. 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. Businesses that want to relocate to a community worry about housing for their employees. Local officials maintain a one-size-fits-all approach does not work when it comes to short-term rentals because each community has different needs, demographics and public safety and housing concerns. We dont agree with that, but they should have the ability to regulate them to balance the need of full-time residents as well as accommodate visitors. Local elected officials know better what is good for a small community such as ours rather than it being dictated to us out of Lansing.. 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.. Representative Markkanen's office declined the Gazette's request for comment. Marla R. Miller is an award-winning journalist and content marketing writer who previously worked for newspapers in Indiana and the Muskegon Chronicle. 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. Spectrum: Strong Partisan Bill (Republican 12-1). The village issued a moratorium on short-term rental licenses in June and recently extended it for an additional 90 days. 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. 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. President and CEO Justin Winslow said 70% of voters oppose legislation that strips power from local governments to control short-term rentals and 79% believe they should be taxed the same as hotels. I would hope the Senate is more levelheaded. 2021 MI HB4722 (Votes) Land use: zoning and growth management; Michigan zoning enabling act; amend to include short-term rentals. We ask that you edit only for style or to shorten, provide proper attribution and link to our web site. 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. Michigan Advance is part of States Newsroom, a network of news bureaus supported by grants and a coalition of donors as a 501c(3) public charity. She lives in Norton Shores and her work can be found at marlarmiller.com. THE PEOPLE OF THE STATE OF MICHIGAN ENACT: Sec. PDF SEVEN Reasons HB 4722 and SB 446 are WRONG for Michigan Follow them on Twitter @arpanlobo, @BizHolland and @cjmuyskens. We have put forth compromise after compromise, Allen said. The ordinance has been in place since 2014, prohibiting, new vacation rentals in residential districts, but Petoskey still. House Bill 4722, introduced by Rep. Sarah Lightner, R-Springport, would amend the Michigan Zoning Enabling Act to allow short-term rentals, units where guests reside for not more than 30 days, to . The bill has been referred to the Senate Committee on Regulatory Reform. Under HB4722, that number could increase to 750 short-term rental units. Toilet paper wasnt the only shortage caused by the pandemic. Sen. Aric Nesbitt, R-Lawton, who authored S.B. All rights reserved (About Us). The heated debate continues in New Buffalo, a Southwest Michigan community that recently extended a moratorium on new short-term rental licenses until Dec. 13. The state wants to come in and say, We know better, preempting them from the work that they have done.. Its the desirability of the area. Airbnb says HB 4722 and HB 5605 would modernize Michigans regulation of short-term rentals. 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. 64. , but bills havent gained traction until last month. HB 4722 would allow limited authority to oversee short-term rentals in some scenarios including if local noise and traffic ordinances are violated and if the number of occupants in a unit is more than permitted although this would have to take place on an individual basis for units. It wipes out local zoning control from every municipality, Humphrey said. Proponents of the bill argue that property owners have the right to do what they want with their property, including renting it out as a vacation home without cumbersome regulations. The general feeling in our community and not just in resort towns, but all communities is that were not supportive of efforts to do land-use planning from Lansing, said Grand Haven City Manager Pat McGinnis. 104, District 67, District The Michigan Municipal League is in support of H.B. This would have the effect of undoing regulatory frameworks of many Michigan municipalities that restrict where and how short-term . If 30% wanted to locate in your most desirable neighborhood, you have now turned that residential district into transient mini-hotels and completely crushed anybody who is actually living there, she said. McGinnis has attended previous legislative hearings in Lansing to address attempts to change the law. WHEREAS, While the amendments to HB 4722 as passed by the House emphasize the ability of local governments to inspect properties for health and safety . Marla R. Miller is an award-winning journalist and content marketing writer who previously worked for newspapers in Indiana and the Muskegon Chronicle. House Bill 4722 passed the Michigan House recently and is being considered by the Michigan Senate. Michigan Advance maintains editorial independence. 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. Contact Editor Susan Demas for questions: info@michiganadvance.com. Grand Rapids needs to add more than 9,000 housing units over the next four years to keep up with demand, city manager Mark Washington said.
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