Short Term Rentals - tracked changes — File 208325

1 CITY OF SOMERVILLE ORDINANCE NO. 2019- REGULATING SHORT-TERM RESIDENTIAL RENTALS Be it ordained by the City Council of the City of Somerville, in session assembled, that Chapter 7 of the Code of Ordinances of the City of Somerville, is hereby amended by inserting the following provisions: Sec. ______. SHORT-TERM RESIDENTIAL RENTALS 1. Purpose This Section “Short-Term Rentals” is intended to set forth the registration processregulations through which certain dwelling units within the City of Somerville may be registered utilized as short-term rental units. This registration processregulation is designed to allow for the operation of such rentals for Somerville residents, protect the safety of renters and residents, ensure the primary use of such rentals remains residential, and ensure that the operation of such short-term rentals does not create a safety concern or detriment to the surrounding residential neighborhood. 2. Definitions a. Booking Agent: Any person or entity that facilitates reservations of or collects payment for a Short-Term Rental on behalf of or for an Operator. b. Director. The Director of the Inspectional Services Department (“ISD”) or his or her designee. c. Operator. A natural person who is the owner, or lessee of the owner of a Residential Unit, that seeks to offer said Residential uUnit as a Short-Term Rental., whose Primary Residence is the unit being offered as a Short-Term Rental., or whose primary residence is adjacent to the unit being offered for short term rental as defined in the term “owner-adjacent unit” below. d. Home Share Unit. A Residential Unit that is the Operator’s Primary Residence, and being offered in its entirety as a Short-Term Rental.

2 Operator is not present in the unit during the term of said rental. e.d. Limited Share Unit. A Residential Unit that is the Operator’s Primary Residence and only a portion of the Unit is being offered as a Short-Term Rental. The Operator shall be present in the unit during the term of said rental. f. Owner-Adjacent Unit. The short-term rental of a residential unit, by the Owner of said unit, that is not the primary residence of the Owner, but which is located within the same residential building or on the same lot as the primary residence of the Owner. The rental of an Owner-Adjacent Unit shall be limited to one dwelling unit. The Owner shall be present at their primary residence at the time of said rental. d. Primary Residence. A rResidential uUnit in which an Operator resides for at least nine months out of a twelve-month period. Primary residence shall be demonstrated by showing that as of the date of registration of theusage as a Short- Term Rental, the Operator has resided in said Residential uUnit for nine of the past twelve months or that the Operator intends to reside in the Residential Unit for nine of the next twelve months, in accordance with the Proof of Primary Residence requirements set forth below. as demonstrated by at least two of the following: utility bill, voter registration, motor vehicle registration, deed, lease, driver’s license or state-issued identification, or proof of residential exemption. e. Proof of Primary Residence. At the time of registration of the Short- Term Rental, the Operator shall provide ISD with aA copy of the deed (if owner) or lease (if tenant), driver’s license or state issued identification, as well as one other document showing residency at the Residential Unit for the Short-Term rental, such as: utility bill, cable bill, or motor vehicle registration. f. Residential Unit. A dwelling unit within a dwelling classified under the Building Code (“Code”) as residential use, as those terms are defined in the Code, but excluding: a congregate living complex, elderly housing, group residence, homeless shelter, orphanage, temporary dwelling structure, and transitional housing. This term shall not include a hotel, motel or any other non-residential use.

3 g. Short-Term Rental. The rental of a Residential Unit for its intended purpose, in exchange for payment as residential accommodations for a duration of fewer than twenty-eight (28) thirty (30) consecutive days or fewer. Such a rental may or may not be facilitated through the use of a Booking Agent. 3. Applicability. No Residential Unit shall be offered as a Short-Term Rental except in compliance with each of the provisions of this section. Residential Units Not Subject to Certain Provisions of this Chapter. a. Existing Bed and Breakfasts and Tourist Homes. A Residential Unit offered as a Short-Term Rental holding a current and valid Certificate of Occupancy as a Bed and Breakfast or Tourist Home from ISD as of the effective date of this Ordinance, shall be subject to the registration requirements contained herein. . 4. Requirements for the Operation of Short-Term Rentals. a. All Operators of Short-Term Rentals shall register with ISD prior to Short-Term Rental operation, in accordance with Section 5, below. a. Operator’s Primary Residence. A Residential Unit offered as a Short- Term Rental shall be the Operator’s Primary Residence. b. One Party of Renters. A Residential Unit offered as a Short-Term Rental shall be rented to only one party of short-term renters at a time, not rented as separate bedrooms, beds, or spaces to separate parties. c. Number of Short-Term Renters. A Residential Unit offered as a Short- Term Rental shall be limited to ten guests, or two guests per guest bedroom, whichever is fewer. d. One Listing per Booking Agent. A Residential Unit offered as a Short- Term Rental shall not have more than one listing per Booking Agent associated with it. b.e. A Residential Unit offered as a Short-Term Rental shall comply with all standards and regulations promulgated by the Director.

4 c.f. Short-Term Rental of a Limited Shared Residential Unit. An Operator may offer a Limited Share Unitbedrooms within their Residential Unit as a Short-Term Rental 365 days per year. Rental shall be limited to ten guests, or two guests per bedroom, whichever is fewer. One bedroom in the unit shall be reserved for, and occupied by, the Operator during the entire term of the rental. Said Unit shall be rented to only one party of Short- Term renters at a time, not rented as separate bedrooms to separate parties. d.g. Short-Term Rental of an Unoccupied Residential UnitHome Share Unit. Rental shall be limited to ten guests, or two guests per bedroom, whichever is fewer. Short-Term Rentals shall not exceed in the aggregate, ninety (90) consecutive or nonconsecutive calendar days per year, when the Operator is not occupying the Residential Unit during the entire term of the Short-Term Rental. Such Unit shall be rented to one party of Short-Term renters at a time, not rented as separate bedrooms to separate parties e. Short-Term Rental of Owner-Adjacent Unit. An Owner may offer his or her Owner-Adjacent Unit as a Short-Term Rental 365 days per year. Such Unit shall be rented to one party of Short-Term renters at a time, not rented as separate bedrooms to separate parties. Occupancy shall be limited to ten guests, or two guests per bedroom, whichever is fewer. f. Permission of Owner. An Operator must certify at the time of registration that he or she has the following permissions to offer his or her Residential Unit as a Short-Term Rental: i. Operator is the owner of the Residential Unit offered as a Short- Term Rental; or, ii. Operator is a tenant of the Residential Unit offered as a Short- Term Rental and has obtained the written consent of the Residential Unit’s owner to offer the Residential Unit as a Short- Term Rental, and offering such a rental complies with all applicable leases and/or condominium documents, bylaws, or other governing documents. f.h. Rental Period and Use. Renting for an hourly rate, or for rental durations of fewer than ten (10) consecutive hours shall not be

5 permitted. Commercial meetings and uses are prohibited in Short- Term Rentals. f. Local Contact. When registering, the Operator must provide his or her name and contact information, and, in the event the Operator is not present during the period of said Short-Term Rental, the name and contact information of an individual who is able to respond in person to any issues or emergencies that arise during the Short-Term Rental within two (2) hours of being notified. Contact information must include a telephone number that is active 24 hours per day to tenants, Short-Term Rental occupants, and public safety agencies. This phone number shall be included in the registration of the Short-Term Rental unit at the time of registration. g.i. No Outstanding Violations. The Residential Unit offered as a Short- Term Rental shall not be subject tohave any outstanding building, sanitary, zoning, or fire code violations, orders of abatement, or stop work orders, or other requirements, laws, or regulations that prohibit the Operator from offering the Residential Unit as a Short-Term Rental. If a violation or other order is issued after the registration of the Short-Term Rental, upon notice of said violation or order the Director shall suspend the Residential Unit’s registration Short-Term Rental use shall be terminated until the violation has been cured or otherwise resolved. h.j. Three or More Violations in a Six Month Period. Should an property Operator receive three or more violations within a six month period under this section, or of any municipal ordinance, state law, or building code for the use of such Short-Term Rental, the license certificate of registration any Residential Unit within the property shall be ineligible to be used as a Short Term Rental for a period of shall be revoked for the remainder of the registration period license, or for 6 months from the third or subsequent violation., whichever is greater. i.k. Compliance and Interaction with Other Laws. Operators shall comply with all applicable federal, state, and local laws and codes, including but not limited to the Fair Housing Act, G.L. c. 151B and local equivalents and regulations related thereto, and all other regulations applicable to residential dwellings.

6 l. Retention of Records. The Operator shall retain and make available to ISD, upon written request, records to demonstrate compliance with this section, including but not limited to: records demonstrating the number of months that the Operator has resided or will reside in Residential Unit, if applicable; records showing consent of the owner of the Residential Unit to the Residential Unit's use as a Short-Term Rental, if applicable; and records demonstrating number of days per year that the Residential Unit is offered as a Short-Term Rental. The Operator shall retain such records for as long as he or she desires to use the Residential Unit as a Short-Term Rental. j. Prior to issuing or renewing a certificate of registration, ISD shall conduct an inspection to verify the accuracy of the information contained in the application and confirm that eEach Residential Unit being offered as a Short-Term Rental shall meets: the following requirements: i. All Building Code requirements for occupancy ii. All Building Code requirements for occupancy; iii. All Minimum Standards for Human Habitation; iv. All Fire Prevention Regulations; v. All other requirements as set forth in this Ordinance. k. Liability Insurance. Short-Term Rental Operators shall maintain liability insurance appropriate to cover the Short-Term Rental use. l.m. Notifications. i. The Operator shall include the registration number issued by ISD on any listing offering the Residential Unit as a Short-Term Rental. i. The Operator shall also post and maintain a sign on the inside of the Short-Term Rental on the entry level, visible to and reasonably likely to be readily accessed by individuals utilizing the Short Term Rentalin a manner to be determined by the ISD, with the following information: 1. instructions for the disposal of waste per the City’s recycling and trash programs; 1.2. information regarding the City’s parking

7 regulations, including but not limited to visitor parking passes, street sweeping, and snow emergencies; 2.3. the local noise, trash and parking ordinances of the City; 3.4. the certificate of registration for the Short-Term Rental; contact information for the Operator, or when the Operator is not present, the contact information for a locally available contact designated to respond to all emergencies and problems that may arise during the rental period. 5. Short-Term Rental Registration Process; Fees. a. Registration Process. An Operator who wishes to offer his or her Residential Unit as a Short-Term Rental shall register with ISD, online or in a paper form prescribed by ISD, and shall secure a certificate of registration prior to the operation of the Short-Term Rental. This registration process will be administered by ISD, subject to change as determined by ISD, and will include but not be limited to the following: i. At the time of registration, Operators shall provide ISD with Proof of Primary Residence at the Residential Unit to be offered as a Short-Term Rental. Residential Units in the structure or on the lot, is the Operator’s Primary Residence. ii. An Operator, and Owner if separate from the Operator, shall complete and submit all required paperwork as provided by ISD as part of the registration process. This paperwork shall include but not be limited to, the Operator, and/or Owner if applicable, accepting and certifying an understanding of all legal responsibility and requirements in offering said unit as a Short- Term Rental, that offering said rental complies with all applicable leases and/or condominium documents, bylaws, or other governing documents, and that the operation of said rental will comply with all requirements of this Ordinance. ii. Prior to issuing or renewing a certificate of registration, ISD shall conduct an inspection to verify the accuracy of the information contained in the application and confirm that each Residential Unit being offered as a Short-Term Rental meets: the following requirements:

8 1. All Building Code requirements for occupancy; 2. All Minimum Standards for Human Habitation; 3. All Fire Prevention Regulations; 4. All other requirements as set forth in this Ordinance. iii. A registration shall be valid for a term of one year, commencing upon date of issuance of the certificate of registration. If an Operator is a lessee of the Owner, and the Operator’s lease for said unit has an expiration date falling before the expiration of the certificate of registration, the Operator shall submit new Proof of Primary Residence to ISD before the end date listed on the lease. Should the Operator fail to do so, the certificate of registration shall be deemed invalid as of the applicable lease end date. or for such alternative twelve-month period as the Director shall determine. iv. An Operator shall provide information to ISD at the time of registration that includes the following: Operator name, address of Residential Unit, Operator’s relationship to the unit, whether the Residential Unit is being offered as a Limited Share, or Home Share, or Owner-Adjacent Short-Term Rental, and other information as may be required by ISD. The Operator, and Owner if separate from the Operator, shall certify that he or she and the Residential Unit shall comply with the requirements of this ordinance. v. An Operator who successfully registers his or her Residential Unit as a Short-Term Rental shall be issued a registration number. vi. At the time of registration, Operators shall submit the license registration fee as set forth on the applicable form. vii. An Operator who is issued a registration number shall provide a link to the corresponding Short-Term-Rental listing(s) to ISD. b. Ineligible Residential Units. Any residential Units that are the subject of three or more findings of violations of this section, or three or more violations of any municipal ordinance or state law or building code relating to excessive noise, improper disposal of trash, disorderly conduct, within a six-month period at the time of application shall be ineligible for rental. Such Residential Units shall not be issued a Short-Term Rental registration. c. Changes to Registration after Issuance. Re-registration upon Unit Turnover. A

9 certificate of registration shall be tied to the eligibility of the Residential Unit, the Owner, and the Operator and shall will not automatically transfer or remain valid upon the sale or lease of the unit or building. New Operators are responsible for ensuring that they re-register with ISD to obtain a new registration number if they wish to continue to rent the Residential Unit as a Short-Term Rental. d. Bulk Registration by Booking Agent. Nothing herein shall prohibit a Booking Agent from entering into an agreement with the City to provide registration services for Short-Term Rental Operators. 5. Penalties; Enforcement. a. Any Operator who WhoeverNo person or entity may offer a Residential Unit as a Short Term Rental in violation of this ordinance. No Booking Agent may accept a fee for booking a Residential Unit which is in violation of this ordinance, provided that the City has first notified the Booking Agent of such violation of the Residential Unit. All violationses any provision of this sectionOrdinance may be penalized by a noncriminal disposition as provided for in G.L. c. 40, s. 21D. All violations of this section are subject to penalty in accordance with section 1-11 of the Somerville Code of Ordinances. Each day on which a violation exists shall be deemed a separate and distinct offense.Each day of violation shall constitute a separate and distinct offense. The penalty for each violation will be as set forth in section 1-11 of this Code. The provisions of this section may also be enforced, if applicable, by the Director seeking an injunction from a court of competent jurisdiction prohibiting the offering of the Short-Term Rental. The provisions of this section may also be enforced according to Massachusetts Session Laws Acts of 2008 Chapter 106. Nothing herein shall be construed to preclude the City from seeking any additional penalties or taking any additional enforcement action as allowed for by law. b. Should an Operator receive three or more violations under this section, or of any municipal ordinance, state law, or building code for the use of such Short-Term Rental, the license certificate of registration shall be revoked for the remainder of the registration period license, or for 6 months, whichever is greater. c. A violation shall include, but shall not be limited to, an Operator failing to register a Residential Unit as a Short-Term Rental pursuant to the

10 terms of this ordinance, an Operator offering an Ineligible Unit as a Short-Term Rental, or failing to comply with any notice of violation or other order issued pursuant to this section. by the Director.. d.b. The Director may enter into agreements with Booking Agents or any other third parties for assistance in enforcing the provisions of this sectionordinance. 6. 8. Regulations. The Director shall have the authority to promulgate regulations to carry out the provisions of this Ordinance. 7. 9. Severability. If any provision in this section shall be held to be invalid by a court of competent jurisdiction, then such provision shall be considered separately and apart from the remaining provisions, which shall remain in full force and effect. 8. 10. Effective Date. The provisions of this Section______ “Short-Term Rentals” shall take effect on _______________. January 1, 2020. Beginning on ________________, or on an earlier date as may be determined by the Director, the City may receive applications for registration, conduct inspections, and issue registrations for short-term rentals to operators who apply before the date of the enactment. Be it further ordained by the City Council, in session assembled, that Section 1-11(b) of the Code of Ordinances is amended by adding the following provision: Offense Fine Enforcing Personnel Short Term Residential Rentals (Sec. 7-____) $300.00 Police, inspectional services APPROVED: _____________________________________________________

11 President Somerville City Council