Town Council eases into short term rental discussion

Topic to be considered during Unified Development Ordinance process

Fred McCormick
The Valley Echo
February 25, 2022

Short term rental units, a topic likely to be the subject of increased discussion in the coming months, was among the items brought before Town Council, Feb. 14, as the board met for its regular monthly meeting. 

The discourse was intended to offer a “brief, high-level overview” as the town prepares to begin developing a Unified Development Ordinance, according to Town Manager Josh Harrold. 

“This is a subject that will be covered, at length, in our UDO,” Harrold told the town council. “The Unified Development Ordinance was partially paid for in this year’s budget, and the other half will be in this year’s budget.”

The town released a request for proposal to create its first UDO, a code that combines various development regulations into a single document, in August. The bid, which offered a maximum budgeted allotment of $100,00 over two fiscal years, was awarded to Kendig Keast Collaborative, of Simpsonville, S.C.

“It will make it much easier for the general public to navigate, and for staff to interpret that single document,” Harrold said in a Feb. 25 interview. “The process for this goes through the planning board, it involves a staff work group and input from the community..”

While the UDO is not expected to be completed until the end of the year, conversations about planning and development often evoke questions about short term rentals, according to the town manager, who presented basic information to the board.

Harrold opened the discussion by mentioning a 2020 ruling by the Superior Court of New Hanover County, which found that N.C. General Statute 160D-1207 prevented local governments from requiring property owners or managers to obtain any permit or permission for purposes of renting or leasing. That case (Shroeder v. City of Wilmington) was taken up by the State Court of Appeals last November, but a ruling has yet to be announced. 

“They are viewing short term rentals as a residential use, not a business use,” Harrold said to the town council. 

Currently, there are over 500 short term rental units available in the 28711 zip code on various booking websites, Harrold continued. 

“That zip code obviously includes areas outside of town limits,” he said. “However, of those 512 units, 94% of them are entire homes or studios and 6% are individual rooms.”

Harrold reviewed current regulations in nearby municipalities regarding short term rental properties, which account for approximately 25% of overnight room sales in Buncombe County. 

“We looked at Asheville, Brevard, Woodfin and Burnsville,” he said. “We also looked at Waynesville and Weaverville, and neither of those municipalities regulate short term rentals at this time.”

In 2017, the City of Brevard adopted amendments related to short term rentals in its UDO, allowing them to operate in designated zoning districts. The city does not require a permit, but occupancy of short term rental units is limited to two people per bedroom, plus an additional two people. Brevard’s website includes an example of a two bedroom rental carrying an occupancy limit of six guests. 

The Town of Woodfin limits short term rentals to a pair of zoning districts, and requires property owners to register prior to operating. Burnsville requires property owners to designate a local contact to address issues if they arise. 

N.C. municipalities do not have legal standing to place a moratorium on short rentals, according to Harrold, who added that a registry or requiring permission to operate are also prohibited. 

While requiring permits for short term rentals could be considered, town attorney Ron Sneed called it “a fuzzy area.”

“Just because some of these towns are doing it, it doesn’t necessarily mean that if they were challenged they would survive,” Sneed said. 

Planning Director Jessica Trotman advised the board that the town could require a zoning permit for short term units, while technically not creating a registry.

“A zoning permit doesn’t call out that use in a specific way, everything has to be vetted for zoning compliance,” she said. 

The Town Council did not take any action following the discussion.

“What I really wanted to accomplish with this conversation was to give the council a general overview of the impact of short term rentals in Black Mountain,” Harrold said. “But, ultimately, we don’t want to do a deep dive into short term rentals when we have the UDO on the horizon.”