IN THE CITY COUNCIL
FOR THE CITY OF HOOD RIVER, OREGON
ORDINANCE NO. 2028

An Ordinance amending Hood River Municipal Code Title 5 (Business Taxes, Licenses and Regulation) by Adding a New Chapter 5.10 (Short-term Rental Operating License) Governing the Review, Issuance, Enforcement and Administration of Operating Licenses for Short-term Rental Units in the City, and Declaring an Emergency

 The Hood River City Council finds as follows:

WHEREAS, the Hood River Housing Strategy Document was drafted and approved by the City Council on September 14, 2015 to provide a path for the City to implement the adopted housing policies taking into consideration the work done and policies adopted by the Council relative to the City’s Vision and the City’s Economic Opportunities Analysis.  On that date, the City Council directed staff to begin the code process to limit and regulate short term rentals (Strategy 2 of the Housing Document); and

 WHEREAS, the City Council discussed a variety of approaches and took testimony from citizens and other interested parties before reaching general consensus on a framework for Short-term Rental regulations. After taking public input on September 29, 2015, November 9, 2015 and November 16, 2015, the Council provided direction to City staff that it was equally concerned about both of the following:

1. That the growing number of short-term rentals in the City reduce the number of year-round dwelling units available for long-term rental by workers, which conflicts with Goal 9’s directive to “create a desired balance between the quality of life of this community and economic health of the city” and

2. The increase of short-term rental units in the City’s residential zones damaged the livability of those neighborhoods due to the clustering of vacation rentals and thereby conflicts with Goal 9’s directive to “Preserve and promote the city’s “quality of life” including small town atmosphere, family-oriented community;” and

 WHEREAS, the council held a duly noticed public hearing on August 22, 2016 to consider land use regulations, amending Hood River Municipal Code (HRMC) Title 17, to regulate short-term rental units in various city zones; and

 WHEREAS, at the conclusion of the August 22, 2016 hearing, the council adopted Ordinance 2016-2026, which amended HRMC Title 17 and took effect on October 13, 2016; and

WHEREAS, on May 23, 2016 the City adopted Ordinance 2016-2022, which imposed a six-month Moratorium on the acceptance, processing or approval of applications for Certificates of Authority to Collect Transient Room Taxes and on the registration of new hotels in residential zones within the City.  Ordinance 2016-2022 provided for the automatic sunset of the moratorium on November 23, 2016 and was intended to allow for a deliberative process to establish new regulations of short-term rentals; and

 WHEREAS, on September 26, 2016 the City Council held a duly noticed public hearing to consider amendments to the City’s business regulations in HRMC Title 5 to provide a license program and regulatory framework for short-term rental operations at the hearing, the Council accepted written and oral testimony on the proposal and revised the proposal in light of that testimony; and

 WHEREAS, on November 7, 2016 the City Council held a duly noticed public hearing to consider the revised proposed amendments to HRMC Title 5 to provide a license program and regulatory framework for short-term rental operations in the City as a new Chapter 5.10 (Short-term Rental Operating License) set forth in Exhibit A, attached hereto and incorporated herein by this reference; and

 WHEREAS, under the regulatory program envisioned by these amendments, short-term rentals must comply with the land use regulations in HRMC Title 17, obtain an operating license under HRMC Chapter 5.10 and pay the transient room tax under HRMC Chapter 5.09 (Hotel Tax) and comply with all of the substantive requirements of these regulations plus any additional conditions attached to the license; and

 WHEREAS, to acquire nonconforming status as a short-term rental under HRMC Title 17, the dwelling had to have been lawfully established and in existence, including registered under HRMC Chapter 5.09 as of December 12, 2016, and the moratorium on issuance of new Certificates of Authority to Collect Transient Room Taxes expires automatically on November 23, 2016.

 NOW, THEREFORE, based on the foregoing findings, which are incorporated herein by this reference, the Hood River City Council Ordains as follows:

Section 1 – Amendment. Title 5 (Business Taxes, Licenses and Regulation) of the Hood River Municipal Code is hereby amended to add a new Chapter 5.10 (Short-term Rental Operating License), set forth in Exhibit A, attached hereto and incorporated herein by this reference.

Section 2 – Emergency Clause.  Due to the need to protect the public health safety and welfare through the consistent implementation and enforcement of Transient Lodging regulations without lapses or uncertainty, especially in the City’s residential zones, an emergency is hereby declared to exist that warrants this Ordinance taking effect immediately upon adoption.

Read for the First Time this 28 day of November, 2016

Read for the Second Time and approved this 29 day of November 2016. This Ordinance shall take effect immediately upon the second reading.


AYES:  
NAYS:  
ABSTAIN:  
ABSENT:     


      
            
      Paul Blackburn, Mayor

ATTEST:


     
Jennifer Gray, City Recorder Approved as to form:


     
Daniel Kearns, City Attorney