Short-term vacation rental operations may require $125 certification fee

Staff photo by Tim Barber Chattanooga City Councilman Yusuf Hakeem
Staff photo by Tim Barber Chattanooga City Councilman Yusuf Hakeem
photo Chattanooga Councilwoman Carol Berz

Possible ordinance changes could allow short-term vacation rentals to operate in Chattanooga neighborhoods under certain conditions, including the payment of a $125 certification fee.

The Chattanooga City Council will hold a public hearing on short-term vacation rentals today after its normal 3 p.m. meetings. Members of the public, determined by random drawing, may each speak for up to three minutes on the subject.

"What we are trying to do is get the Regional Planning Agency to give us their unbiased information, hear from the public and consider this potential policy to come up with a piece of legislation we are comfortable with," Councilman Yusuf Hakeem said Monday in a phone interview. Hakeem serves as the chairman of the council's Planning Committee.

Proposed ordinances impact both zoning and business licensing codes.

Current zoning regulations do not allow short-term vacation rentals on properties zoned under the R1 designation, which applies to single-family dwellings common to neighborhoods. Zoning rules do allow them on properties designated R3, which encompass multiple-family dwellings such as apartments and boarding houses, or R4, which also includes offices.

If approved, proposed zoning regulations would allow short-term vacation rentals on R1 properties if the house or other structure has no more than five bedrooms. The bedroom limit goes up to nine in other residential zones.

Councilman Chip Henderson has said some people do not oppose short-term vacation rental operations within their neighborhoods, but do oppose the rezoning of properties. A number of city planners have described the practice of rezoning for short-term vacation rentals as "spot zoning" in some cases, he said.

Under current zoning definitions, a short-term vacation rental is a single-family detached dwelling unit rented in part or entirely on a daily or weekly basis for up to 30 days. The proposed definition simply describes the place as a house or structure with bedrooms, but keeps the same rental period.

Current and proposed zoning definitions for short-term vacation rentals exclude hotels, motels and bed and breakfast establishments.

Councilwoman Carol Berz has called on her colleagues to consider everyone when it makes a decision on the matter.

"We keep doing this one size fits all, and one size doesn't," Berz said. "I think it's important that we protect the integrity of neighborhoods. I just do."

In February, the council voiced concerns over internet-based rental sites, such as Airbnb, and their role in Chattanooga's short-term vacation rental landscape.

"We have no preconceived position on this issue as far as the council goes," Hakeem said, adding the council has received emails both for and against the changes.

Henderson recently urged the council to move forward on the issue and "vote it up or down" after waiting two years to review a possible tool to address short-term vacation rentals outside of the current rezoning process.

The council may vote on the proposed changes as early as Sept. 13, but could wait a couple of weeks longer, Hakeem said.

If approved, current short-term vacation rental operators will have six months to comply with new regulations.

Contact staff writer Paul Leach at 423-757-6481 or pleach@times freepress.com. Follow on Twitter @pleach_tfp.

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