Planning Commission

City of Petersburg Subcommittee for Short-term Rental Uses Meeting Agenda Monday, March 17, 2025 6:30 PM Petersburg Public Library Study Room 1 Click here to join the meeting virtually https://www.microsoft.com/en-us/microsoft-teams/join-a-meeting Meeting ID: 247 909 409 188 Passcode: J8yoAt 1. Call to Order 2. Roll Call 3. Adoption of the Agenda 4. Review/Discussion of Proposed Text Amendment on Short-term Rental Use and Regulation City of Petersburg Department of Planning and Community Development 135 N Union St, Room 304 Petersburg, VA 23803 (804) 733-2308 MEMORANDUM DATE: March 17, 2025 TO: Planning Commission Subcommittee on Short-Term Rental Uses FROM: Planning and Community Development RE: Proposed Text Amendment on Short-term Rental Uses SUMMARY: The Petersburg Planning Commission has been considering a potential text amendment pertaining to short-term rental uses in the City since July of 2024. Short-term rental uses are not currently permitted in the city and the goal of the text amendment is to allow as well as regulate these uses. A text amendment was drafted and edited based on feedback from the Planning Commission and the public, but in November of 2024, a majority of the Commission members were replaced with new members. The drafted text amendment was brought to a public hearing in January of 2025, but the current Planning Commission requested that a subcommittee be appointed to review the proposed regulations. TIMELINE: July 11, 2024 – Planning Staff presented to the Planning Commission on a potential text amendment permitting and regulating short-term rental uses in the city. August, 2024 – The Planning Commission completed a survey on preferences for regulations of short-term rental uses. September 5, 2024 – Planning Staff presented an overview of the proposed text amendment with the survey results incorporated. The Planning Commission voted to move the proposed amendment to public hearing. October 3, 2024 – A public hearing was held on the proposed text amendment. During the public comment period, a resident asked the Planning Commission to consider allowing the use in more districts and to provide some exemptions from requirements to properties currently being rented. The Planning Commission directed staff to incorporate this feedback and subsequently schedule a new public hearing. November 7, 2024 – Planning Staff presented the proposed updates to the text language based on the feedback received. The Planning Commission voted to accept the changes and hold a second public hearing on the text amendment in its entirety. January 2, 2025 – The Planning Commission held a new public hearing on the proposed amendment. The Commissioners stated they were not prepared to take action and asked that a subcommittee be formed to review the proposed text. ATTACHMENTS: Draft Regulations (pages 4-6) January 2, 2025 Staff Report (pages 7-10) July 11, 2024 Original Presentation (pages 11-19) September 5, 2024 Presentation incorporating survey results (pages 20-28) November 7, 2024 Presentation of proposed changes based on public feedback (pages 29-32) January 2, 2025 Presentation (pages 33-42)  PART II - CODE APPENDIX B - ZONING ARTICLE 39. SHORT-TERM RENTAL REGULATIONS Section 1. – Registry. 1. Prior to utilizing any dwelling unit for short-term rental, a short-term rental operator shall apply to be registered by the Zoning Administrator who shall review the application for conformance with this article. Registrations shall be recertified yearly no later than January 31. 2. The registration form shall include the following information: a. The name, telephone number, address, and email address of the short-term rental operator; b. If the property shares a common wall or common driveway with another property owner, proof of written notification to such property owner(s); c. The designation of a responsible party who will be available twenty-four (24) hours a day, seven (7) days a week, to respond to and resolve issues and complaints that arise during the period of time in which the dwelling is being used for short-term rental; d. Certification that the short-term rental unit meets the requirements of this article and, as part of the registration, the operator is agreeing to permit inspections of the home (at reasonable times and after notice has been provided) to address complaints. Failure to permit such an inspection is grounds for registration suspension; e. Proof of commercial general liability in a coverage amount of at least one million dollars ($1,000,000.00). 3. Registration is not required for persons who are (i) licensed by the Real Estate Board or a property owner who is represented by a real estate licensee; (ii) registered pursuant to the Virginia Real Estate Time-Share Act (§ 55.1-2200); (iii) licensed or registered with the Department of Health, related to the provision of room or space for lodging; or (iv) licensed or registered with the locality, related to the rental or management of real property, including licensed real estate professionals, hotels, motels, campgrounds, and bed and breakfast establishments. 4. An operator’s failure to register a short-term rental property prior to use shall result in a registration fee of $500 as a penalty. Until the operator has completed registration, including payment of the registration fee, the property shall not be offered for short-term rental. 5. Short-term rental uses existing at the time of adoption of this article may register the property by no later than July 1, 2025, without incurring the penalty fee outlined in Section 1.3. Section 2. - Occupation by property owner. 1. A short-term rental unit shall be located within the property owner’s primary residence. Where the property owner is a legal person but not an individual, the short-term rental unit shall be located within the primary residence of the individual who manages the day-to-day EXHBIT A Page 1 of 3  PART II - CODE APPENDIX B - ZONING operations of the owner, or who is a trustee or a beneficiary of the owner if the owner is a trust. 2. A special use permit shall be required for any short-term rental use wherein the short-term rental operator does not own and occupy the property as their primary residence unless such short-term rental use was active prior to adoption of this Article. 3. For purposes of this section, whether a dwelling unit is a property owner’s or a qualifying individual's primary residence shall be determined by the records of the Virginia Department of Motor Vehicles or the Office of the Registrar of the City current as of the date of application to operate a short-term rental on such lot. Section 3. - Safety. 1. Each short-term rental operator shall provide to the Zoning Administrator and conspicuously post within the short-term rental a floor plan of the layout of the dwelling unit, on which floor plan the short-term rental operator shall label the following: a. The use of each room; b. The occupancy level of sleeping rooms and cooking facilities; c. The location and size of emergency egress and rescue openings; and d. The location of fire and carbon monoxide detectors. 2. Smoke detectors, fire extinguishers, and carbon monoxide detectors shall be present and functional in compliance with the current edition of the Virginia Uniform Statewide Building Code. 3. The name and telephone number of the responsible party shall be conspicuously posted within the short-term rental unit. Section 4. - Use standards. Short-term rental uses shall adhere to the following: 1. Lodging accommodations shall be limited to primary structures; 2. The principal short-term renter shall be at least twenty-one (21) years of age; 3. The maximum number of short-term renters shall not exceed the maximum occupancy permitted in the dwelling unit being used for short-term rental; 4. No short-term rental operator shall agree to more than one booking transaction during the same period that results in reservations for two or more separately-booked short-term renters to occupy the same short-term rental at the same time; 5. No recreational vehicles, buses, or trailers shall be parked on the adjoining street or visible on the property in conjunction with the short-term rental use; 6. No signage may be placed on the exterior of a dwelling in conjunction with the short-term rental use; 7. The dates for trash and recycling collection shall be posted prominently within the short-term rental unit; 8. No food shall be prepared for or served to guests by the property owner or short-term rental operator; and EXHBIT A Page 2 of 3  PART II - CODE APPENDIX B - ZONING 9. No short-term rental operator shall offer, provide, advertise or permit use of a dwelling unit for any commercial use that is prohibited by law. Section 5. - Short-term rental of multiple-family dwelling units. For multiple-family dwellings, a maximum of ten (10) or one-third (1/3) of the dwelling units, whichever is lesser, on a lot shall be registered for short-term rental use. This shall not apply to short- term rental uses of multiple-family dwellings existing prior to the adoption of this Article, except that those uses may not be expanded except in conformance with this Article. Section 6. - Revocation of short-term rental registration. 1. Registration approval for a short-term rental use can be revoked by the Zoning Administrator for the following reasons: a. Failure to collect and/or remit any required taxes or to register and maintain a business license for the short-term rental use; b. Three (3) or more substantiated claims of failure to maintain compliance with any of the regulations set forth in this article within a twelve (12) month period; c. The failure of a property owner to maintain their primary residence at the short-term rental unit unless approval is otherwise granted through a special use permit; and d. The failure to abide by any other regulations set forth in the Zoning Ordinance or City Code 2. Before any revocation is made effective, the Zoning Administrator shall give written notice to the short-term rental operator. The notice shall be sent by certified mail and a copy of the notice shall be posted in a conspicuous place on the premises. The notice shall contain: a. A description of the violation(s) constituting the basis of the revocation; b. If applicable, a statement of acts necessary to correct the violation(s); and c. A statement that if no request for appeal is made within thirty (30) days from the date of the notice, the registration will be revoked. 3. A short-term rental operator whose registration has been revoked pursuant to this section shall not be eligible to re-register for a short-term rental use for the remaining portion of the calendar year in which the registration is revoked, and for the entire succeeding calendar year. Section 7. - Petition for review of decision by Zoning Administrator. 1. Any short-term rental operator who is aggrieved by a decision of the Zoning Administrator to revoke registration approval may petition the Board of Zoning Appeals for review of such decision pursuant to the provisions of Article 27 within thirty days of the notice given by the Zoning Administrator. EXHBIT A Page 3 of 3  City of Petersburg Department of Planning and Community Development 135 N Union St, Room 304 Petersburg, VA 23803 (804) 733-2308 MEMORANDUM UPDATED: NEW TEXT IN RED DATE: January 2, 2025 TO: Planning Commission FROM: Planning and Community Development RE: 2024-ZTA-09: Consideration of a resolution recommending approval of an amendment to the Zoning Ordinance of the City of Petersburg pertaining to short-term rental uses in the City. EXECUTIVE SUMMARY: A number of residential properties in the City are utilized for short-term rental, but the City currently has no registry of these properties and the use is currently unregulated by the Zoning Ordinance. The proposed text amendment would introduce short-term rental as a use in the Ordinance, allowing the City to create a registry of properties conducting short-term rentals and to introduce standards to regulate the use. A draft ordinance was reviewed by the Planning Commission in October, but the ordinance has been revised based on the Commission’s desire to allow short-term rental uses in additional districts and to relax certain potential hardships on operators of existing short-term rental properties. Planning staff recommend approval of the text amendment as drafted. CHRONOLOGY OF EVENTS: 1. July-September 2024 – The Planning Commission has a potential text amendment regarding short-term rental uses, including being surveyed on preferences for use standards. At the September 5 meeting, Staff were directed to bring the proposed amendment to public hearing. 2. October 3, 2024 – The Planning Commission held a public hearing on draft short-term rental regulations. The Commission requested several changes and it was decided to hold a new public hearing in December.  3. November 7, 2024 – Staff presented draft changes based on the Commission’s comments; the Commission stated the changes seemed to address their concerns from October 4. December 5, 2024 – A public hearing on the amendment was scheduled but not held due to time constraints. BACKGROUND: Short-term rental refers to the rental of a dwelling unit or room for fewer than 30 days in exchange for payment. Short-term rental uses are commonly associated with entities like Airbnb, Homestay, or Flipkey. Short-term rental uses typically occur within the residence of the operator and distinguishing them from traditional bed-and-breakfast inns, which are built specifically for transient guests and include eating accommodations and a resident-manager on site. An unknown amount of dwellings within the City are currently used for short-term rental, but the properties are not tracked or governed by any specific regulations in the Zoning Ordinance. Without being listed in the Ordinance, the use is technically prohibited. The Code of Virginia empowers the City to regulate short-term rental as a land use and to create a registry of properties being used for short-term rental. Penalties can be applied to properties which fail to register that are. The City can also require Special Use Permits for short-term rentals of property that are not occupied by a property owner as their primary residence. Proposed Changes: The proposed text amendment would introduce short-term rental as a permitted use in the R-3 Two-Family Residence, R-4 Multiple-Dwelling, R-5 Multiple-Dwelling, R-6 High Rise, RB Office- Apartment, MXD-1, Mixed Use, MXD-2, Mixed use, B-2 General Commercial, and B-3 Central Commercial District. The use would generally be by-right subject to certain development standards, but a Special Use Permit would be required to operate a short-term rental in a property not occupied by the owner as their primary residence unless that property was operated as a short-term rental prior to the text amended being adopted. Short-term rental of apartment units would be permitted, but limited to no more than ten units or one-third of total units in a development, whichever is less. On properties where apartments are being used for short-term rental when the text amendment is adopted, those rentals may continue regardless of the number or portion of units as long as no additional units are rented in cases that exceed the established limits. The proposed amendment would stipulate that properties used for short-term rental would need to register annually with the Zoning Administrator to certify the property meets regulations. A penalty fee would apply to any properties who fail to register. Existing short-term rental properties would be given a grace period through July 1, 2025 to register and obtain a Special Use Permit if needed. Approval to operate as a short-term rental would be revocable based on violations of any regulations and operators would not be able to re-register for the remaining portion of the year in which they lose a license. Prior to a revocation, an rental operator would be made aware of the applicable violations and would be given a chance to appeal the revocation to the Board of Zoning Appeals within 30 days. The proposed text amendment would also introduce Article 39 of the Zoning Ordinance which would introduce specific regulations of the use which would include: • Operators must provide floor plans and emergency contact information to the City and renters and the provide smoke detectors, carbon monoxide detectors, and fire extinguishers in accordance with the Building Code • Lodging accommodations are limited to primary structures • The primary renter must be at least 18 and the total number of renters cannot exceed the maximum occupancy of the dwelling unit being based on its underlying zoning • Rental units cannot be double-booked or split to accommodate multiple parties • No recreational vehicles, buses, or trailers associated with a short-term rental use can be visible on the property or an adjoining street • No signs are permitted associated with the short-term rental use • The dates for trash and recycling collection for a property shall be posted for renters • A short-term rental operator cannot prepare or serve food or beverages to guests • A property used for short-term rental cannot include commercial use unless that use is permitted by the Zoning Ordinance Inspection of properties for compliance with these regulations would be required prior to approval of a registration as well as in the case of any complaints against the property. Failure of an operator to allow an inspection could result in revocation of a registration. COMPREHENSIVE PLAN CONSIDERATIONS: In general, The PetersburgNEXT Comprehensive Plan speaks to the importance of the hospitality industry within the City, mentioning that hospitality uses are expanding and should be accommodated as the City looks towards the future. The plan also specifically mentions short- term rental uses as potential revenue streams not currently being utilized by the City. The Comprehensive Plan is supportive of permitting short-term rental uses and further appears to support the creation of a registry to ensure that those uses are accounted for and taxed appropriately. RECOMMENDATION: Staff recommend approval of the proposed text amendment. ATTACHMENTS Presentation Resolution Article 3, Definitions - Revised Article 8, R-3 Two-Family Residence District Regulations Article 9, R-4 Multiple Dwelling District Regulations Article 18.1, MXD-1, Mixed Use District – Revised Article 18.2, MXD-2, Mixed Use District - Revised Article 23, Supplementary Use Regulations – Special Uses – Revised Article 39, Short-Term Rental Regulations – New Public Comment Received  Text PLANNING COMMISSION Amendment MEETING JULY 11, 2024 Discussion: Short Term Rental Background ◦ Short-term Rental – rental of dwelling unit or room for fewer than 30 consecutive days, in exchange for payment. ◦ Examples: AirBNB, FlipKey, Homestay ◦ Traditional bed-and-breakfast inn – allows ONLY transient guests, includes eating accommodations, resident-manager must be on premises ◦ Use exists within City; currently not spoken to in Zoning Ordinance Overview Components of the proposed amendment: A. Define short-term rental and associated terms B. Stipulate where use is permitted; special use or by- right C. Specify standards for short-term rental uses State Code Considerations oCan regulate short-term rental through general land use and zoning authority oCan establish short-term rental registry with operators registering annually oCannot require Special Use Permits for short-term rental use if property is occupied by owner as primary residence  Definitions Short-term rental. oThe provision of a room or space that is suitable or intended for occupancy for dwelling, sleeping, or lodging purposes, for a period of fewer than 30 consecutive days, in exchange for a charge for the occupancy. Short-term rental operator. oThe proprietor of any dwelling, lodging, or sleeping accommodations offered as a short-term rental, whether in the capacity of owner, lessee, sublessee, mortgagee in possession, licensee, or any other possessory capacity. Short-term renter. oAny person who contracts with a short-term rental operator to occupy a short- term rental in exchange for a charge for such occupancy, and any companions or guests of such person. Where/How Permitted ◦ Common practice to allow in districts that permit residential uses (residential, mixed-use, and business districts) ◦ SUP can be required for properties if they aren’t owner occupied, but seemingly more common to allow by-right across the board with conditions built into ordinance ◦ Registry to be created; operators to apply to Zoning Administrator annually and verify compliance with standards Standards for Short-Term Rentals oMust be located within operator’s primary residence oFloor plans must be submitted specifying number/use of rooms, maximum occupancy, means of egress oMust name responsible party – individual designated by operator to be available to City or renters during any rental to respond to any issues, complaints, or emergencies that arise oOperator contact information must be posted oCannot be double-booked or divided into additional units – must be rented wholly oAt least one renter must be 18 years or older Standards – cont. oMust be in conformance with Building Code; Functioning smoke detectors, fire extinguishers, carbon monoxide detectors required o Must present proof of commercial general liability insurance oNo food or drink to be prepared or served to guests by operator oNo RV’s, buses, trailers parked on street or visible on property in conjunction with rental oNo commercial use in association with short-term rental oPermit may be revoked with three or more substantiated complaints in calendar year Questions for Commission: oWhere to allow short-term rental? oSUP for rentals if not owner-occupied? oAllow occupancy beyond maximum for single-family dwelling? oRequire inspections prior to approval? Based on complaints? oShort-term rental of multi-family units allowed? Limited? oAdditional parking requirements? oSet deadline to register with penalty? PLANNING Text COMMISSION MEETING Amendment SEPTEMBER 5, Discussion: 2024 Short Term Rental Background ◦ Short-term Rental – rental of dwelling unit or room for fewer than 30 consecutive days, in exchange for payment. ◦ Examples: AirBNB, FlipKey, Homestay ◦ Traditional bed-and-breakfast inn – allows ONLY transient guests, includes eating accommodations, resident-manager must be on premises ◦ Use exists within City; currently not spoken to in Zoning Ordinance Overview Components of the proposed amendment: A. Define short-term rental and associated terms B. Stipulate where use is permitted; special use or by- right C. Specify standards for short-term rental uses State Code Considerations oCan regulate short-term rental through general land use and zoning authority oCan establish short-term rental registry with operators registering annually oCannot require Special Use Permits for short-term rental use if property is occupied by owner as primary residence  Definitions Short-term rental. oThe provision of a room or space that is suitable or intended for occupancy for dwelling, sleeping, or lodging purposes, for a period of fewer than 30 consecutive days, in exchange for a charge for the occupancy. Short-term rental operator. oThe proprietor of any dwelling, lodging, or sleeping accommodations offered as a short-term rental, whether in the capacity of owner, lessee, sublessee, mortgagee in possession, licensee, or any other possessory capacity. Short-term renter. oAny person who contracts with a short-term rental operator to occupy a short- term rental in exchange for a charge for such occupancy, and any companions or guests of such person. Where/How Permitted ◦ To be allowed by-right in higher-density residential districts; R-3, 4, 5, and 6, RB, B-2, B-3 ◦ SUP will be required where properties aren’t owner-occupied ◦ Registry to be created with deadline to register; operators to apply to Zoning Administrator annually and verify compliance with standards ◦ Occupancy standards for rentals will match underlying district ◦ Rental of multi-family units allowed, but limited to no more than 1/3 of total units Standards for Short-Term Rentals oMust be located within operator’s primary residence oFloor plans must be submitted specifying number/use of rooms, maximum occupancy, means of egress oMust name responsible party – individual designated by operator to be available to City or renters during any rental to respond to any issues, complaints, or emergencies that arise oOperator contact information must be posted oCannot be double-booked or divided into additional units – must be rented wholly oAt least one renter must be 18 years or older Standards – cont. oMust be in conformance with Building Code; Functioning smoke detectors, fire extinguishers, carbon monoxide detectors required; inspections required prior to approval to verify o Must present proof of commercial general liability insurance oNo food or drink to be prepared or served to guests by operator oNo RV’s, buses, trailers parked on street or visible on property in conjunction with rental oNo commercial use in association with short-term rental oPermit may be revoked with three or more substantiated complaints in calendar year; City can require inspections based on complaints Parking Consideration: If occupancy is limited to underlying district, is there a need for additional parking? PLANNING COMMISSION 2024-ZTA-09: MEETING Discussion on an amendment to the Zoning Ordinance of the City of Petersburg pertaining to the regulation of short-term rental uses within NOVEMBER 7, the City. 2024 Background ◦ Staff and Planning Commission have been reviewing proposed regulation for short-term rental uses beginning in July ◦ Public hearing held on proposed regulations in October; Planning Commission deferred pending several changes ◦ Requested changes included allowing short-term rental uses in the Mixed Use Districts and allowing certain exceptions for existing short-term rental uses Proposed Changes Short-term rental will be allowed in MXD-1 and MXD-2 Districts in addition to the R-3, 4, 5, 6, and RB Districts Short-term rental operations existing prior to the adoption of the ordinance will not be required to get a Special Use Permit even if those units are not owner-occupied The maximum number of units in multi-family dwellings that can be rented will not apply to short-term rental operations existing prior to the adoption of the ordinance as long as the number of units rented remain as-is Next Steps If Planning Commission is supportive of proposed changes, the draft ordinance will be brought back at December regular meeting for new public hearing PLANNING COMMISSION 2024-ZTA-09: MEETING Consideration of a resolution recommending approval of an amendment to the Zoning Ordinance of the City of Petersburg pertaining to JANUARY 2, short-term rental uses in the City. 2025 Background ◦ Short-term Rental – rental of dwelling unit or room for fewer than 30 consecutive days, in exchange for payment. ◦ Examples: AirBNB, FlipKey, Homestay ◦ Traditional bed-and-breakfast inn – allows ONLY transient guests, includes eating accommodations, resident-manager must be on premises ◦ Use exists within City but not accounted for; currently not spoken to in Zoning Ordinance ◦ Draft ordinance reviewed in October; updated based on Planning Commission feedback Overview Components of the proposed amendment: A. Define short-term rental and associated terms B. Stipulate where use is permitted; special use or by- right C. Specify standards for short-term rental uses  Definitions Short-term rental. oThe provision of a room or space that is suitable or intended for occupancy for dwelling, sleeping, or lodging purposes, for a period of fewer than 30 consecutive days, in exchange for a charge for the occupancy. Short-term rental operator. oThe proprietor of any dwelling, lodging, or sleeping accommodations offered as a short-term rental, whether in the capacity of owner, lessee, sublessee, mortgagee in possession, licensee, or any other possessory capacity. Short-term renter. oAny person who contracts with a short-term rental operator to occupy a short- term rental in exchange for a charge for such occupancy, and any companions or guests of such person. Where/How Permitted ◦ To be allowed by-right in higher-density residential districts; R-3, 4, 5, and 6, MXD-1 and 2, RB, B-2, B-3 ◦ SUP will be required where properties aren’t owner-occupied unless rental was operated prior to adoption of ordinance ◦ Registry to be created with deadline to register for existing rentals; operators to apply to Zoning Administrator annually and verify compliance with standards; $500 applies for rentals not registered by deadline ◦ Maximum occupancy for rentals will match underlying district ◦ Rental of multi-family units allowed, but limited to no more than 1/3 of total units or ten units, whichever is less unless rental was operated prior to adoption of ordinance Standards for Short-Term Rentals oMust be located within operator’s primary residence oFloor plans must be submitted specifying number/use of rooms, maximum occupancy, means of egress oMust name responsible party – individual designated by operator to be available to City or renters during any rental to respond to any issues, complaints, or emergencies that arise oOperator contact information must be posted oCannot be double-booked or divided into additional units – must be rented wholly oAt least one renter must be 18 years or older Standards – cont. oMust be in conformance with Building Code; Functioning smoke detectors, fire extinguishers, carbon monoxide detectors required; inspections required prior to approval to verify o Must present proof of commercial general liability insurance oNo food or drink to be prepared or served to guests by operator oNo RV’s, buses, trailers parked on street or visible on property in conjunction with rental oNo signage or commercial use in association with short-term rental oPermit may be revoked with three or more substantiated complaints in calendar year; City can require inspections based on complaints Registration Revocation •Registration approval can be revoked for 3 substantiated violations of rules specific to short-term rentals, violation of City/State/Federal laws, failure to remit any taxes/fees, and/or refusal to allow inspections •Before revocation is made effective, operator is given written notice and chance to appeal the decision •If revocation stands, operator cannot reapply for remaining portion of calendar year Comprehensive Plan Considerations •Hospitality uses are expanding and should be accommodated as City looks forward •Existing short-term rentals are currently un-utilized revenue stream •Plan recommends ensuring that short-term rental uses pay taxes; registry is first step in this process Planning Commission Options •Recommend approval of the text amendment as drafted •Recommend denial of the text amendment •Recommend approval of the text amendment with changes