However, taking matters into their own hands may not be fruitful should SB 667 pass into law. North Carolina Airbnb laws are quite lacking, resulting in city governments enacting their own. However, new rentals can only operate in areas with hotel and mixed-use zoning conditions. This means existing rentals were permitted to continue operations regardless of zoning. The ban, though, does not work retroactively. After a year of discussion, Pinehurst banned short-term rentals in all areas zoned for residential use. The village of Pinehurst also followed suit in 2022. After passing the new law, operators are required to obtain special zoning permits (conditional zoning) from the city council. In addition, the ordinance limits short-term rentals in multifamily buildings to only 25% of the units.Įven earlier, Asheville passed stringent short-term rental laws in 2018. The law also prohibits special gatherings and events. In 2021, Raleigh approved a short-term rental ordinance requiring operators to secure a zoning permit. Local governments responded by enacting city-level laws restricting or outright prohibiting short-term rentals. Many residents have submitted complaints citing the negative effects of rentals on property values and the quality of life. Short-term rentals have become a growing concern among North Carolina cities. Owners need not register their properties, though they may need to secure a permit for zoning for Airbnb and short term rentals in their city. Furthermore, the state government has struck down on local cities and counties that require operators to register their properties. Simply put, North Carolina does not prohibit short term rentals in the state. Is There a North Carolina Short Term Rental Ban? Additionally, according to the NC Vacation Rental Act, the tenant must have another permanent residence where they will return after the vacation period ends. To fall under a short term rental, the rental must be for recreational, leisure, or vacation purposes. What Is Considered a Short Term Rental in North Carolina?Īccording to the North Carolina Vacation Rental Act, a short term rental is a rental of a residential property for a period of less than 90 days. As of writing, though, SB 667 has only passed the first reading and has since stalled. In April, the North Carolina legislature filed Senate Bill 667, titled “Regulation of Short-Term Rentals.” Senators Timothy Moffitt and Bobby Hanig act as the primary sponsors of the bill, with Senator Tom McInnis co-sponsoring. One significant effort to regulate short-term rentals came in the form of a new bill filed earlier this year. North Carolina has long grappled with regulating short-term rentals - a contentious issue that has been the subject of numerous debates. New NC Short Term Rental Regulation Yet to Pass While the bill’s effect on homeowners associations remains to be seen, HOA leaders should nevertheless familiarize themselves with the bill and its purported changes. If passed, the bill would effectively reverse some of the existing restrictions on short term rentals in a handful of cities. The enforcement of this policy would follow the same covenant procedure for any other violations, or it could be referred to the city for a resolution.A bill introduced in early 2023 may change the current NC short term rental regulation for local governments. Therefore, a Short-Term Rental Restriction Policy could be adopted based on the applicable city’s prohibition on Short-Term Rentals, as the Short-Term Rental would be a violation of the Declaration’s prohibition of unlawful use. An unlawful use would include any violation of the valid laws, ordinances, and regulations of all governmental bodies having jurisdiction over your HOA. Most Declarations of HOAs provide that units within an HOA cannot be used unlawfully. If the city the HOA is located in has a prohibition in their City Code/Ordinances against Short-Term Rentals, then your HOA can adopt a policy that prohibits Short-Term Rentals based on such rentals being a violation of the City Code. Is there another way to address short term rentals? This is usually an expensive and time-consuming process without guaranteed results. If the Declaration prohibits restrictions on rentals or is silent on Short-Term Rentals, then one way to impose restrictions on Short-Term Rentals is to amend the HOA’s Declaration pursuant to the proper procedure. If the Declaration allows restrictions on Short-Term Rentals, then, in order to uniformly enforce the restriction, the HOA could adopt a policy procedure for Short-Term Rentals. As you likely know, the Colorado Supreme Court has held that HOAs cannot restrict Short-Term Rentals unless their Declaration specifically allows such a restriction. Short-Term Rentals, which may range from nightly rentals up to six-month rentals, have become a problem in HOAs due to websites such as Airbnb and Vrbo.
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