Short-Term Rental Hurdles Still Remain

Although the Short Term Rental (STR) Ordinance proposed by the Task Force passed favorably, there were two "special exception" ideas raised by Councilmembers that concern to the Foundation:

• Councilman Keith Waring introduced a motion instructing City Staff to develop a "special exception" process allowing for commercially-zoned properties to operate at STRs with essentially no restrictions. HCF has been consistently opposed to this, primarily as it would open the door for investment groups to purchase real estate in Charleston for use as non-owner occupied STRs.
• Additionally, Councilwoman Carol Jackson instructed City Staff to include in the special exception a path for properties in the Old and Historic District to become STRs even if they are not individually listed on the National Register of Historic Places. Her motion to this effect was defeated by a vote of 11-1 at the last City Council meeting. HCF is opposed to weakening the protections for the core of the historic district.

The special exception process, once developed by city staff, will have to be heard by the Planning Commission prior to being presented to City Council, so there will be ample opportunity for public comment.Regulations under the new ordinance state:

• Operators must obtain a special license from the city's Department of Planning, Preservation and Sustainability and list the registration number on all online advertisements. They will have to present site plans to identify where guests would stay and park their cars.
• To be eligible, operators must own and live on the property full time, determined by the four percent owner-occupied property tax assessment.
• The short-term rental cannot host more than four adults at a time.
• Operators must pay business license fees and accommodations taxes.

However, with the short term rentals, the ability to enforce the ordinance has been problematic, and in fact, the dissenting votes of Councilmembers Mitchell and Lewis were cast citing a lack of faith in the city's ability to enforce the law. This is an area of concern to the Foundation as well; however, it is important to understand that this new ordinance now criminalizes the advertisement of illegal, or unregistered, rentals within the city.As reported in the April 10th meeting, two new livability staff members have been hired with a third starting next week. These new staff members are solely charged with monitoring compliance and enforcing the new Ordinance. The City aims to complete the procurement and installation process for enforcement computer software within the next 90 days.The Foundation will continue to advocate for the protection of the city's neighborhoods and residential quality of life and oppose the "special exception" motions until the matter is concluded.Photo: The Post and Courier