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. Humphrey opposes attempts to legislate the issue from Lansing and says HB 4722 is a giveaway to private interests at the expense of the taxpayer. Humphrey said more than 20 community leaders in lakeshore communities in Southwest Michigan have united to oppose the legislation by adopting formal resolutions and contacting legislators. Right now, we just have under 300 short-term rentals, McGinnis said. Several communities in Ottawa County have regulations on short-term rentals or continue to examine the issue, while also opposing the bill. 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. Michigan Municipal League says Airbnb legislation based on 'false 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. Short-term rentals also are popular among tourists throughout Michigan. stop Michigan communities from outright banning short-term rentals, short-term rentals through services like VRBO, Airbnb and Homestay. It was supported by Representative Greg Markkanen, R-Hancock. It wipes out local zoning control from every municipality, Humphrey said. House: House Third . Our restaurant workers are having a hard time living here [and] were a foodie town, Carruthers said. The legislation aims to protect Michigan property owners fundamental right to use their dwelling or home as a short-term rental, according to proponents. narrowly passed the House in a late-night session last October, a move that. Skyrocketing housing costs have pushed hospitality and service industry workers into outlying areas or forced them to relocate. Short-term rentals take away year-round housing stock, and affordable housing is already an issue for local residents and service-industry workers who live in tourist towns. Its a misnomer; its a fallacious argument, Metcalf said, noting his Airbnbs often help subsidize the units he rents out to year-round workers. It is not subject to a special use or conditional use permit or procedure . The practice helps Michigan property owners cover the cost of property taxes and maintenance. People who work here need to have a place to live, McGinnis said. Contact Editor Susan Demas for questions: [email protected]. I would hope the Senate is more levelheaded. Families across Michigan rely on home sharing to supplement their income and welcome visitors whose spending supports the states businesses and tourism economy, said Vincent Frillici, a public policy regional manager for San Francisco-based Airbnb, in a statement. We feel local communities are best equipped to deal with planning and zoning issues. Holland Township does not allow short-term rentals through services like VRBO, Airbnb and Homestay. We have put forth compromise after compromise, Allen said. There has been some movement. The Village of Suttons Bay has decided to grandfather in existing short-term rental licenses and reduce the number through attrition, while looking at ways to update the ordinance and right-size the number of short-term rentals. The solution I brought forward ends these bans while creating consistency and restoring the rights of Michigan families, so they can invest confidently in a home without worrying whether they will unexpectedly lose the ability to rent that home if they choose, she added. That seems to be lost., , a Southwest Michigan community that recently. - Amendments made by the Senate will be red, such as: Senate amended text. The bill is supported by Michigan Realtors, a real-estate advocacy group, and the Mackinac Center for Public Policy, a conservative think tank. May 24, 2021. 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, . Humphrey said short-term rentals have been . If HB 4722 becomes law, it will have the effect of invalidating many regulations crafted and implemented by municipalities across the state to address issues presented by short-term rentals at the local level. Van Beek also raised concerns about housing stock issues if short-term rentals are allowed to go virtually uncapped, particularly among affordable housing units. We have had a long history of dealing with short-term rentals and a set of regulations that are strongly supported by our community.. short-term rentals arent subject to the same taxes or regulations. Beckett & Raeder report, the village currently has 61 operating short-term rentals, which represents 13% of the communitys total housing stock. In 2017, the city developed a short-term rental ordinance in response to complaints from residents who showed up at public meetings. I do support the [HB 4722] legislation, but I think that a local governments ability to police these, which still seems to be preserved in that legislation, is still the most important angle, said Jason A. Metcalf, an attorney and short-term rental owner in Suttons Bay who has been monitoring the developments at the local and state level. Marla R. Miller is an award-winning journalist and content marketing writer who previously worked for newspapers in Indiana and the Muskegon Chronicle. 67, 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.. 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. Tackling short-term rentals was a tumultuous two-year process that included a moratorium on city-issued licenses for rentals in May 2020, and a Nov. 23, 2021, special session where the. their names from the bill, in a somewhat unusual move. But having too many short-term rentals on one residential street causes unintended problems. House Bill 4722 was not on the Oct. 26 agenda, but an amended version passed 55-48 after the GOP-controlled House stayed in session past 2 a.m. Oct. 27. (Dec. 5), State bills would take away local control for short-term rentals, prompting local opposition, Local groups hoping for 'compromise' with Legislature over short-term rental regulation, Low income housing, single-family homes remain focus in Holland, Park Township hires firm for short-term rental help, Your California Privacy Rights/Privacy Policy. House passes bill to check short term-rental regulations; local An amendment offered before Wednesdays vote would also allow local units to set limits for how many short-term rentals a property owner could operate, with a limit of no fewer than two. Sign up here I dont have two identical townships. In Traverse City, Grand Haven and other lakeshore communities, the demand is there, and so is the lure of making money. Rigterink sees the law as ripe for litigation. 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.. (The Center Square) - In an overnight session, the Michigan House voted 55-48 to pass a bill that aims to prohibit local governments from banning short-term rentals. While most people were sleeping the state House passed House Bill 4722 (H-11) by a vote of 55-48. In addition, many lakeshore communities are grappling with a, shortage of available, affordable, year-round housing. Murphy said the bill would void our efforts and the will of the people here in Petoskey.. 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. 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. Banning the right to rent harms property owners and local businesses in many communities all over Michigan.. Locals are using zoning to prevent nuisances she said. as long as such regulations are applied consistently to owner-occupied residences as well. Dan Gilmartin, Michigan Municipal League CEO, called the push for a ban against bans a scare tactic during a Monday morning press conference. Michigan Advance maintains editorial independence. and Senate Bill 446 (Sen. Aric Nesbitt, R- . Under HB 4722, the cap is up to 30% of a communitys existing housing stock, which opponents say is unreasonable for small communities. Who determines the 30% of property owners eligible to have a short-term rental while denying the other 70% is it based on location, a first-come, first-serve application process, housing density or other factors? 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.. HB 4722 would amend the Michigan Zoning Enabling Act to establish the rental of a dwellingincluding, but not limited to, short-term rentalsto be a residential use of property that is permitted in all residential zoning districts, and not to be considered a commercial use nor subject to any permit requirements different from those applicable to other dwellings in the same zone. All rights reserved (About Us). He rallied STR owners to attend Suttons Bay council meetings on the issue. The Michigan Advance is a nonprofit outlet featuring hard-hitting reporting on politics and policy and the best progressive commentary in the state. She lives in Norton Shores and her work can be found at marlarmiller.com. Airbnb says HB 4722 and HB 5605 would modernize Michigans regulation of short-term rentals. 2023 Advance Local Media LLC. In Holland Township, the rentals are banned. Introduced by Rep. Sarah Lightner R-Springport on April 27, 2021. Proponents say that will prevent outside investors and corporations from owning too many units, but opponents disagree. Why are they getting more out of this than the person who lives next door? 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. A 30% reduction in use during the winter months has other implications. The Airbnb app icon is seen on an iPad screen, Saturday, May 8, 2021. Please see our republishing guidelines for use of photos and graphics. Some municipalities, including Traverse City and Grand Haven, have taken the stance that short-term rentals are a commercial activity and local zoning rules prohibit other commercial activities in residential neighborhoods. The bipartisan legislation, House Bill 4722 and Senate Bill 446, revisits an ongoing debate about local government control over short-term rentals. We ask that you edit only for style or to shorten, provide proper attribution and link to our web site. You cannot approach this as a one-size-fits-all, she told the, Lightners office declined a request for an interview, but sent the, The key thing here is, from our perspective, were very strong on private property rights, and people should be able to do what they want with their own property, said Mackinac Center Director of Marketing and Communications Jarrett Skorup, who, Calls to Michigan Realtors were not returned for this story, but the association does have a statement on its. We ask that you edit only for style or to shorten, provide proper attribution and link to our web site. In todays digital economy, its relatively easy for an outside investor or homeowner to advertise their property as a short-term rental. 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. 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. Bill 4722 is not a thoughtful solution to a complicated issue that needs to balance residential safety, fair competition and property rights it is a tone-deaf handout to mostly out-of-state corporations that will erode neighborhoods, increase crime and cost jobs, Winslow said in a statement. 45, District The village issued a. moratorium on short-term rental licenses in June and recently extended it for an additional 90 days. They havent fully banned them, but youre banning it for the vast majority of property owners, Skorup said. PDF SEVEN Reasons HB 4722 and SB 446 are WRONG for Michigan The bill still has yet to be passed by the Senate and signed into law by Gov. We still oppose it and theres been no negotiation, Rigterink said. In addition, many lakeshore communities are grappling with a shortage of available, affordable, year-round housing for service-industry workers or people who want to relocate to the community for employment. HB 4722 specifically states short-term rentals are not a commercial use of property. Holland is another West Michigan community that has enacted local ordinances to manage short-term rentals, permitting them in commercially zoned areas such as the downtown. Theres definitely work being done to try to get it to a vote., Humphrey opposes attempts to legislate the issue from Lansing and says HB 4722 is a, giveaway to private interests at the expense of the taxpayer.. In a late-night vote last week, the Michigan House of Representatives approved a bill that essentially nullifies local ordinances on short-term rentals which have become increasingly popular with the growth of companies like Airbnb and VRBO in the name of protecting private property rights. Michigan Restaurant & Lodging Association oppose the legislation and have offered compromises. Michigan House Passes Short-Term Rental Legislation in Late-Night If it is passed by the state Senate and signed by the governor, it would prevent local governments. Ottawa County has also opposed it. Lightner first introduced the bipartisan legislation back in April. Lawmakers contend HB 4722 strikes a balance between property owners who may want to buy an investment property or a second home and then rent it out while still giving local municipalities some authority in how to regulate the industry. 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. More: Low income housing, single-family homes remain focus in Holland, More: Park Township hires firm for short-term rental help. 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. The Village of Suttons Bay is reexamining its current ordinance after complaints from residents and even hired a firm, in communities around Leelanau County and elsewhere. Its now up to the Senate to move on the bill in the lame duck session following the Nov. 8 election. The city even took an illegal STR operator to court after they were cited numerous times and won. Related: Lawmakers look to stop cities from banning short-term rentals, but some say they add to housing shortage. Bill tracking in Michigan - HB 4722 (2021-2022 legislative session) - FastDemocracy Introduced Apr 27, 2021 Passed House Oct 27, 2021 Passed Senate Signed into Law HB 4722 Michigan House Bill Did you know we offer free bill tracking in Congress and 50 states, and a great mobile app? Summary as Introduced (5/17/2021) This document analyzes: HB4722 Summary as Reported from Committee (6/24/2021) This document analyzes: HB4722 Summary as Passed by the House (11/2/2021) This document analyzes: HB4722 Senate Fiscal Analysis SUMMARY OF BILL REPORTED FROM COMMITTEE (Date Completed: 10-10-22) This document analyzes: HB4722 History Its the change in use that is the problem for that neighborhood, McGinnis said. LANSING, Mich. Michigan's House of Representatives says cities can't block short-term rentals in their communities. The key thing here is, from our perspective, were very strong on private property rights, and people should be able to do what they want with their own property, said Mackinac Center Director of Marketing and Communications Jarrett Skorup, who testified in favor of the bills in May. Short-term rentals are properties that are available for tourists and vacationers visiting an area for a brief stay, or not more than 30 days. In response to criticism, substitutes for the bills were added to narrow their scope. Short-term rentals have been on the Michigan Legislatures radar for several years, but bills havent gained traction until last month. Thats the worst kind of public policymaking, he said. My biggest fear is housing and apartments for our seasonal and everyday laborers in Petoskey; that it will take up those spaces with short-term rentals knowing someone can make one months rent in a week during the busy season of the year, said Petoskey, Petoskey has an ordinance that permits short-term rentals in a business district with a city license. In general, we definitely feel that the bill as proposed really doesnt have any compromise built into it, Van Beek said. Steckloff had to wait to withdraw her name from the bill until the House took it up. A local unit of government shall not adopt or enforce zoning ordinance provisions that have the effect of prohibiting short-term rentals," the bill states. They [legislators] dont understand that people need to live here to pay for public safety and infrastructure.. The bill would prohibit local governments from adopting . 206b. Our stories may be republished online or in print under Creative Commons lisence CC BY-NC-ND 4.0. Before HB 4722 can become law, it still must be passed by the Senate and then signed into law by Governor Whitmer. Listings on Airbnb comprise 0.3% of total dwellings across the state, according to data from Airbnb, and 61% of Michigan hosts are women and over 25% are over the age of 60. A House Fiscal Agency Legislative Analysis of House Bill 4722 stated that the bill would: amend the Michigan Zoning Enabling Act to provide that the short- term rental a dwelling (for 30 days or less) is a permitted residential use of property that is not subject to a special use or conditional use permit or procedure. We are doing it well; we are doing it the way it was meant to be done, McGinnis said. In Grand Haven, that means up to 1,500 homes could convert to short-term rentals. Proponents say House Bill 4722, sponsored by Rep. Sarah Lightner (R-Springport Twp. In 2017, the city developed a. in response to complaints from residents who showed up at public meetings. In 2018, when Holland began a pilot program allowing short-term rentals in residential neighborhoods, city officials set a limit of 25 non-owner occupied units. 206b. The bill targets those efforts and essentially strips a local municipalitys ability to regulate short-term rentals through local zoning ordinances or make them subject to a special-use or conditional-use permit. In addition, with inflation and the rising cost of living across the country, many short-term rental hosts rely on the additional income. Under HB4722, that number could increase to 750 short-term rental units. House Bill 4722, along . When it comes to the property rights issue, there seems to be a lack of acknowledgement that everybody has property rights, Rigterink told the, . Lets talk about it how can we make it so people can reasonably use their properties without destroying communities?. There is a tradition up here, long before Vrbo and Airbnb, of short-term rentals. What's next in the fight over regulating short-term rentals in Michigan Michigan House's passage of HB 4722 cause for concern among local The people in Lansing have no concept about what this bill will do to local municipalities.. Michigan Legislature - House Bill 4722 (2021) In short, lawmakers claiming the current bills wont take away local control is a false narrative, Rigterink said. "Michigan's hotel industry remains in a weakened state from a pandemic that is still presenting very real challenges to its survival 18 months later," said President and CEO Justin Winslow on Wednesday.