But short-term rentals do bring added traffic, nuisance and public safety issues. Michigan Legislature - House Bill 4722 (2019) In Leelanau County, another popular vacation destination, villages and townships continue to grapple with the issue. There is a growing trend in local government to enact zoning bans that preemptively tell property owners they are unable to rent, according to a statement on the Michigan Realtors website. This would have the effect of undoing regulatory frameworks of many Michigan municipalities that restrict where and how short-term . Humphrey opposes attempts to legislate the issue from Lansing and says HB 4722 is a giveaway to private interests at the expense of the taxpayer. Humphrey said more than 20 community leaders in lakeshore communities in Southwest Michigan have united to oppose the legislation by adopting formal resolutions and contacting legislators. Michigan House's passage of HB 4722 cause for concern among local House GOP narrowly passes bill to raise debt limit and cut spending Rigterink sees the law as ripe for litigation. House Bill 4722, introduced by Rep. Sarah Lightner, R-Springport Township, passed 55-48 after the House remained in session past 2 a.m. Noise, trash and nuisance complaints, and a lack of affordable housing for year-round residents, are some of the issues associated with too many short-term rentals in a community. The legislation aims to protect Michigan property owners fundamental right to use their dwelling or home as a short-term rental, according to proponents. It does the following: Prevents municipalities from banning short-term rentals Removes most regulations that unfairly discriminate against owners of short-term rental property as long as such regulations are applied consistently to owner-occupied residences as well. If you notice any inconsistencies with these official sources, feel free to file an issue. But opponents say short-term rentals should be regulated at the local level. Broad allowances for short-term rentals would also affect local hotels, according to a statement from the Michigan Restaurant and Lodging Association. The Republican-led Senate Regulatory Reform Committee in late September moved the legislation to the floor in a 6-3 vote. To amend the law that authorizes local zoning restrictions on property owners so as to explicitly establish that short term "Airbnb" type rentals are not subject to any "special use or conditional use . 2021 MI HB4722 (Votes) Land use: zoning and growth management; Michigan zoning enabling act; amend to include short-term rentals. The new version of the bill contains an exemption for existing zoning ordinance provisions that regulate the rental of dwellings by overlay district without distinction between short-term rentals and rentals for longer terms if the ordinance provisions were in place as of July 11, 2019 and initiated by petition. A House Fiscal Agency Legislative Analysis of House Bill 4722 stated that the bill would: amend the Michigan Zoning Enabling Act to provide that the short- term rental a dwelling (for 30 days or less) is a permitted residential use of property that is not subject to a special use or conditional use permit or procedure. Other studies show short-term rentals deplete housing stock and, Amid the wrangling, three of the bills co-sponsors Reps. Sara Cambensy (D-Marquette), Samantha Steckloff (D-Farmington Hills) and Brad Paquette (R-Niles) . This is simply special-interest lobbyists who are influencing our state legislature to benefit themselves to the detriment of all of the communities of Michigan.. Those in opposition counter that year-round residents also have rights to live in residential areas without the issues that come with short-term rentals, such as trash, noise, parties, and parking issues, and local zoning ordinances are designed to minimize conflicting land uses in neighborhoods. Follow Michigan Advance on Facebook and Twitter. HB 4722 would amend the Michigan Zoning Enabling Act of 2006 to define and add the term short-term rental to the Code as a residential use of property that is permitted in all residential zoning districts. Its the desirability of the area. Tackling short-term rentals was a tumultuous two-year process that included a moratorium on city-issued licenses for rentals in May 2020, and a Nov. 23, 2021, special session where the. According to city documents, there are more than 12,000 residential units in the city of Holland, based on data from 2011-2015. WHEREAS, While the amendments to HB 4722 as passed by the House emphasize the ability of local governments to inspect properties for health and safety . If you purchase a product or register for an account through one of the links on our site, we may receive compensation. This legislation protects private property rights by preventing short-term rentals from being zoned out of existence and also allows local governments to effectively regulate these properties, he said. HB 4722 is supported by Airbnb, the Michigan Association of Realtors and the Rental Property Owners Association. Other studies show short-term rentals deplete housing stock and increase rent for long-term renters. In 2017, the city developed a. in response to complaints from residents who showed up at public meetings. At the heart of the issue is whether short-term rentals are a residential or commercial use of property. You cant all of a sudden convert a single-family house into a store or an auto mechanic shop. It also caps the total number of short-term rentals as a percentage of all residences, but officials say the proposed 30% cap is unreasonable for small communities. John Humphrey has been outspoken about his opposition to the rise of Airbnb-style rentals in his community, which held several packed public meetings in 2021 as the City Council took up the issue. The bill would prohibit local governments from adopting zoning regulations banning short-term rentals. lived the experience in his own neighborhood. Proponents of the bill say that its passage will help property owners earn extra income and will give tourists more lodging options. Imagine buying your first home in a coastal community or even your dream home on a lake and creating a peaceful backyard oasis. Votes: MI HB4722 | 2021-2022 | 101st Legislature | LegiScan The House Committee on Commerce and Tourism approved the bill on May 25, 2021. While Traverse City has a short-term rental ordinance, permitting them in commercially zoned areas, Carruthers said a lot of people have been doing it on the down low.. (1) For the purposes of zoning, all of the following apply to the rental of a dwelling, including, but not City officials on Monday agreed that they do not want to ban short-term rentals, but to instead prioritize local control and the prosperity of full-time residents. Sign up here You cannot approach this as a one-size-fits-all, she told the, Lightners office declined a request for an interview, but sent the, The key thing here is, from our perspective, were very strong on private property rights, and people should be able to do what they want with their own property, said Mackinac Center Director of Marketing and Communications Jarrett Skorup, who, Calls to Michigan Realtors were not returned for this story, but the association does have a statement on its. Before HB 4722 can become law, it still must be passed by the Senate and then signed into law by Governor Whitmer. The material on this site may not be reproduced, distributed, transmitted, cached or otherwise used, except with the prior written permission of Advance Local. or continue to examine the issue, while also opposing the bill. Theres definitely work being done to try to get it to a vote.. Its skyrocketed in popularity.. Grand Rapids does allow short-term rentals, but only home sharing and not entire properties. Where are people going to live, and is there a quality of life that employees are going to want?, SUPPORT NEWS YOU TRUST. In a late-night vote last week, the Michigan House of Representatives approved a bill that essentially nullifies local ordinances on short-term rentals which have become increasingly popular with the growth of companies like Airbnb and VRBO in the name of protecting private property rights. HB 4722 passed Michigan's House with a vote of 55-48. Murphy said the bill would void our efforts and the will of the people here in Petoskey.. - Amendments made by the House will be blue, such as: House amended text. The municipal law attorneys at Mika Meyers will continue to monitor developments and reports regarding HB 4722 and its potential impacts on local governments. While Metcalf feels for people who live next to problematic short-term rentals, he said local communities need to focus on enforcement of occupancy limits, noise, parking and nuisance violations. Municipalities dismayed, property owners pleased as short-term rental The MML, a nonprofit association representing municipalities and their leaders, calls HB 4722 disastrous and said it essentially gives unfettered approval to short-term vacation rentals across the state. She called it a freshman mistake and fielded complaints from constituents and local officials in her district for months. Holland Township brings the total to over a dozen, with a handful of extended-stay hotels, a Holiday Inn Express, a Best Western, a Country Inn and more. replaced it as a 20-person Airbnb that completely wrecked our neighborhood, he said. There is a tradition up here, long before Vrbo and Airbnb, of short-term rentals. 2023 Advance Local Media LLC. House passes bill to check short term-rental regulations; local We have had a long history of dealing with short-term rentals and a set of regulations that are strongly supported by our community.. The solution I brought forward ends these bans while creating consistency and restoring the rights of Michigan families, so they can invest confidently in a home without worrying whether they will unexpectedly lose the ability to rent that home if they choose, she added. We ask that you edit only for style or to shorten, provide proper attribution and link to our web site. HB 4722 would amend the Michigan Zoning Enabling Act to establish the rental of a dwellingincluding, but not limited to, short-term rentalsto be a residential use of property that is permitted in all residential zoning districts, and not to be considered a commercial use nor subject to any permit requirements different from those applicable to other dwellings in the same zone. But having too many short-term rentals on one residential street causes unintended problems. The rental of residential property is important to Michigan second home markets and in urban areas around event destinations. DONATE The Michigan Municipal League is in support of H.B. New Buffalo Mayor John Humphrey has been outspoken about his opposition to the rise of Airbnb-style rentals in his community, which held several packed public meetings in 2021 as the City Council took up the issue. are supported by a coalition of organizations representing local government, public safety, the restaurant and lodging industry. , sponsored by Rep. Sarah Lightner (R-Springport Twp. It's a pretty simple bill. There has been some movement. with the growth of companies like Airbnb and VRBO in the name of protecting private property rights. Municipal officials should contact Mika Meyers for assistance with any questions or concerns about the effects of HB 4722. Holland has a wide variety of hotels, including the Courtyard by Marriott on Eighth Street, the Haworth Hotel on College Avenue and CityFlats on Seventh Street. Data on Open States is updated periodically throughout the day from the official website of the Michigan Legislature. The substitute bill adopted by the House adds several additional provisions to the version reported out of the Commerce and Tourism Committee. Local officials maintain a one-size-fits-all approach does not work when it comes to short-term rentals because each community has different needs, demographics and public safety and housing concerns. We know from other communities, what this could have the impact of doing is taking either single-family homes that are owner-occupied, or potentially long-term rental properties, and converting them away from those uses, which are homes for long-term residents, whether they be owner-occupied or rentals, and convert them into these short-term rental uses, which only puts additional pressure on what we know is a very tight housing market, particularly a very tight affordable housing market.. Thats the worst kind of public policymaking, he said. PDF HB-4722, As Passed House, October 27, 2021 - Michigan Legislature Both the Realtors Association and Airbnb maintain Michiganders have been renting their second homes for decades when not in use, long before online platforms rose to prominence. In addition, the citys infrastructure water, sewer and other utilities were built for a year-round population. Bill authors are adamant that the. The city has offered incentives to developers to build more affordable units, but even those are becoming short-term rentals in commercially zoned areas. If 30% wanted to locate in your most desirable neighborhood, you have now turned that residential district into transient mini-hotels and completely crushed anybody who is actually living there, she said. If we let it go hog wild, we wont have neighborhoods.. Skyrocketing housing costs have pushed hospitality and service industry workers into outlying areas or forced them to relocate. Lawmakers and opposing groups have worked to introduce compromise legislation that recognizes the difference between homeowners who rent their properties a few weekends a year and those who buy up properties to operate them as mini hotels. House Bills 5465 and 5466 are supported by a coalition of organizations representing local government, public safety, the restaurant and lodging industry. Although short-term rentals have been a concern in resort communities for several years, the issue has expanded to inland cities and rural townships due to a general housing shortage. The Arguments Against Short-Term Rentals Are Shallow has a problem with STRs operating illegally. Homes are being purchased and not available when they have a business locate in their community, Allen said. The village issued a. moratorium on short-term rental licenses in June and recently extended it for an additional 90 days. As currently written, House Bill 4722 and Senate Bill 446 would impede a local government's ability to inspect these mini-hotels to ensure they are being operated safely. Beckett & Raeder report, the village currently has 61 operating short-term rentals, which represents 13% of the communitys total housing stock. 206b. Follow them on Twitter @arpanlobo, @BizHolland and @cjmuyskens. Please see our republishing guidelines for use of photos and graphics. Local governments can . The substitutes would keep short-term rentals from being zoned out of existence, but would not stop local ordinances from regulating noise, traffic, advertising and capacity. Its a misnomer; its a fallacious argument, Metcalf said, noting his Airbnbs often help subsidize the units he rents out to year-round workers. Summary as Introduced (5/17/2021) This document analyzes: HB4722 Summary as Reported from Committee (6/24/2021) This document analyzes: HB4722 Summary as Passed by the House (11/2/2021) This document analyzes: HB4722 Senate Fiscal Analysis SUMMARY OF BILL REPORTED FROM COMMITTEE (Date Completed: 10-10-22) This document analyzes: HB4722 History and Senate Bill 446 (Sen. Aric Nesbitt, R- . Cookie Settings/Do Not Sell My Personal Information. Bill 4722 is not a thoughtful solution to a complicated issue that needs to balance residential safety, fair competition and property rights it is a tone-deaf handout to mostly out-of-state corporations that will erode neighborhoods, increase crime and cost jobs, Winslow said in a statement. But she said there are problems with the bill, particularly the stipulation that permits short-term rentals in up to 30% of existing residential units. Michigan Democrats in the state Legislature took the final step to pass gun safety measures Gov. The current ordinance permits short-term rentals in residential areas. The bill was referred to the Senate Committee on Regulatory Reform. Short-term rentals are properties that are available for tourists and vacationers visiting an area for a brief stay, or not more than 30 days. Under HB 4722, the cap is up to 30% of a communitys existing housing stock, which opponents say is unreasonable for small communities. (Dec. 5), State bills would take away local control for short-term rentals, prompting local opposition, Local groups hoping for 'compromise' with Legislature over short-term rental regulation, Low income housing, single-family homes remain focus in Holland, Park Township hires firm for short-term rental help, Your California Privacy Rights/Privacy Policy. PDF SEVEN Reasons HB 4722 and SB 446 are WRONG for Michigan