HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 10/27/2015 - SHORT TERM RENTAL ACTIVITYDATE:
STAFF:
October 27, 2015
Ginny Sawyer, Policy and Project Manager
Clay Frickey, Associate Planner
Ted Shepard, Chief Planner
WORK SESSION ITEM
City Council
SUBJECT FOR DISCUSSION
Short Term Rental Activity.
EXECUTIVE SUMMARY
The purpose of this item is to provide an overview and background information on short term rental (STR) activity,
most typically referred to as Vacation Rental by Owner (VRBO) or Airbnb, within Fort Collins. With the increase in
the cyber or sharing economy, communities nationwide are determining if and how to regulate this use at a local
level to best protect neighborhoods and address quality of life issues.
GENERAL DIRECTION SOUGHT AND SPECIFIC QUESTIONS TO BE ANSWERED
1. Does Council want to pursue regulations beyond the collection of Lodging Tax?
2. Is so, what specific concerns should a regulatory system address?
3. Does Council support addressing the concentration of Short Term Rental (STR) activity, particularly in
residential neighborhoods?
BACKGROUND / DISCUSSION
Short Term Rental (STR) refers to rental agreements for less than 30 days. In the past, short term rentals were
unique to resort communities who frequently saw vacationers seeking 5-10 day rental opportunities. With the
growth of online commerce and savvy technical platforms, the STR market has become much more mainstream
and widespread.
Vacation Rentals by Owner (VRBO) and Airbnb are two of the most widely known and used companies that cater
to the on-line short term rental market. This type of “sharing economy” activity has grown tremendously over the
last five years and there are numerous other on-line sites (Homeaway, Flipkey, Rentbyowner) with more entering
the market each year.
There are two main types of STRs:
A whole house rental where the owner or person in control of the property is not in the property
A shared rental where available rooms are rented while the owner or person in control of the property is
onsite.
Scale of the Issue
It is difficult to track the exact number of STR activity in Fort Collins or in any community. The Colorado
Association of Ski Towns (CAST) Vacation Home Rentals: Issues, Emerging Trends and Best Practices Report,
which was previously provided to Council, highlighted these challenges noting:
Exact address and owner contact information is not available on Airbnb and limited on other sites;
October 27, 2015 Page 2
Listings are inconsistent, with some providing street addresses and unit numbers and others not; and
VRBO no longer lists properties in the same order, meaning that new listings are harder to find.
There is also overlap between the sites with users putting listings on multiple sites. The following table
demonstrates the range of saturation of STRs in various communities.
Total Housing Units Listings on VR Websites % of Units Listed
Breckinridge 7,187 2,911 41%
Estes Park 4,176 301 7%
Boulder 44,370 514 1%
Durango 7,234 73 1%
Portland 200,000 1600 0.8%
Fort Collins 62,832 278 0.44%
Denver 290,496 1000 0.34%
*Breckinridge, Estes Park, and Durango cited in CAST report. Denver & Boulder numbers cited in city materials. Portland
taken from 2014 data. Fort Collins numbers not scrubbed for duplicates or confirmed as within city limits
The CAST report has also highlighted differing methods communities are using in an attempt to track this activity:
Each community pulls data manually and conducts a record-by-record search. While VHR (Vacation
Home Rental) addresses can eventually be identified, the process is time-consuming and can be
frustrating. VHR information is stored in MS Excel or Access and new listings are manually compared to
existing files.
In communities with licensing and permitting requirements, listed VHR’s are cross-checked with
licensing/permitting records to check compliance. If addresses are not found through the hosting sites,
communities use a combination of photos, online maps, condominium complex names, owner names
and/or property management names to locate a property. If an owner or property manager is known, they
can be contacted for an address. Maps may provide the general location, and photos make it possible to
identify the property upon driving to the area or comparing to ArcGIS and Google map street views. Some
conducting property searches are very familiar with the communities and can recognize most properties
from the photos while sitting at their desks.
Durango and Steamboat Springs both tried creating accounts on Airbnb to notify owners of their need to
comply with regulations. Both accounts were promptly canceled for violation of user agreements. Frisco
has had some success contacting owners through the hosting sites without incident - the small number of
properties in this community (under 30) may not have drawn the attention of the hosting sites.
Tax
Fort Collins is more fortunate than some communities in that its Tax Code has defined Lodging and is clear that
STR activity is required to pay Lodging Tax:
…the furnishing of rooms or accommodations by any person, partnership, association, corporation, estate
or any other combination of individuals by whatever name known to a person who for a consideration
uses, possesses or has the right to use or possess any room in a hotel, inn, bed and breakfast residence,
apartment hotel, lodging house, motor hotel, guest house, guest ranch, trailer coach, mobile home, auto
camp or trailer court, park or similar establishment, for a period of less than thirty (30) days under any
concession, permit, right of access, license to use or other agreement or otherwise.
Based on the questionnaire respondents, Fort Collins is currently seeing a higher rate of compliance from VRBO
operators (typically whole house rentals) compared to Airbnb (typically a shared space rental.) Over the last 6
months, the City has been attempting to track, locate, and notify STR operators who do not have a sales tax
license.
October 27, 2015 Page 3
The first notification letter was sent in June 2014. Subsequent letters were sent in November 2014 and in
September 2015. Since January 2015 licenses have increased from 43 to 71.
From January 1 to October 14, 2015 the City has collected:
$24,034 in Sales tax, and;
$18,414 in Lodging tax from these licenses.
Scope of Problem
Over the past two years, short term rental activity has come to the City’s attention through a variety of means,
including inquiries on permitting the use, concern regarding sales and lodging tax collection, and neighbor
complaints and emails to City Council.
From mid-July through the end of August 2015, staff provided an online questionnaire to help gauge community
thoughts on STR activity. Of the 784 respondents, 113 identified as operating a STR and 204 identified as living
near a STR. The full report results can be found at fcgov.com/vrbo.
Responses included:
Do you think VRBO/Airbnb activity should be regulated?
No - 348
Yes - 208
Maybe - 180
I don’t know - 56
If you have a concern with VRBO/Airbnb activity, which of the following apply (check all that apply):
Noise and nuisance - 48
Not knowing who is there - 46
Traffic and parking - 38
Over-occupancy - 37
This is a business that does not belong in a neighborhood - 33
Other - 5
The number of complaints in Fort Collins remains low relative to the estimated number of STRs. The concern over
this use has increased in the last two years with some expressing strong opinions for the City to take action
sooner rather than later. It is worth noting that those neighborhoods having a Homeowners Association (HOA)
can restrict this use through covenants.
The questionnaire generated more than 400 comments which staff themed into five general sentiments:
Not a problem/Do not regulate/Private property right. (152)
Support for reasonable regulations including tax collection.(85)
Miscellaneous including HOA questions, need more info, and STR consumer comments.(64)
STRs support tourism/cultural experiences. Good addition to the community. Valuable secondary income.
(55)
Not in favor. Do not allow. Not in residential areas.(44)
Interested in operating a STR in the future. (6)
Range of Options
In researching other communities it is clear that many are struggling to find the regulatory “sweet spot” that
addresses the defined problem and that enables effective enforcement. The CAST report notes:
October 27, 2015 Page 4
Simply prohibiting VHR’s will not make them go away. Units are still advertised and rented where they
are prohibited.
Communities with good intentions in adopting regulations have found that enforcing them is the weak
link. Cities have been unable to procure cooperation from hosting sites to not list illegal VHR’s nor to
provide them the information needed to locate VHR’s that are in violation of local or state regulations.
Regulations that restrict the number of days VHR’s may be rented or that require owner occupancy of
homes have been a particular challenge.
The CAST report also provides a “Best and Potential Practices” checklist. (Attachment 1) Potential regulatory
options tend to fall into the categories discussed below.
Definitions
Creating a definition for STRs is a needed step in any regulatory framework. Neither the Land Use Code (LUC)
nor the City Code currently define “short term rental.” There are definitions for Bed and Breakfast and Lodging,
neither of which accurately captures this relatively new activity.
Staff is considering differences between STR use and traditional Bed and Breakfast use, currently defined as:
Bed and breakfast shall mean an establishment operated in a private residence or portion thereof, which
provides temporary accommodations to overnight guests for a fee and which is occupied by the operator
of such establishment.
Bed and Breakfast are currently allowed in 16 zone districts.
While there is a perception that short term rentals in a residential home constitutes a business, the rental of rooms
from a Land Use Code perspective is considered a “residential” use and the collection of tax in and of itself does
not constitute a business.
Limiting Numbers and Concentration
Communities have utilized zoning, caps or percentage caps, and distance requirements between STRs to limit
the overall number. Each of these methods has benefits and challenges.
Registration/Licensing
There are multiple examples of communities’ registering or licensing STRs. These methods vary from a nominal
fee to register and a requirement to include registration number in all advertising to comprehensive licensing
requiring inspections, renewals, and possible revocation.
The CAST Report highlights the following:
Permits and licenses typically record necessary information regarding the VHR, such as number of
bedrooms, owner information, property manager or emergency contact information, use or occupancy
restrictions, among other requirements. In addition, to receive a permit or license, many communities
require the following:
Safety inspection: Austin, Portland, San Francisco, Chicago, Santa Fe, Durango;
Proof of adequate property insurance coverage: Austin, San Francisco, Santa Fe; and
Permit or license number to be displayed on all advertising: Austin, Portland, San Francisco,
Santa Fe, Sonoma County, Bend, Oregon.
Neighbors may also need to be notified as part of the permit process. For example: Austin requires notice
be given to neighbors for public comment as part of the permit approval process, similar to other land use
applications.
October 27, 2015 Page 5
Many communities require notice to be sent to neighbors upon permit issuance. Notice may provide
neighbors with the address; terms of rental use or permit; contact information for a property manager,
owner or emergency contact in the event of problems; and the process for reporting violations or
complaints to the community’s enforcement office. This can be an effective tool to help neighbors know
about and police VHR activity in their area. Portland, Oregon, and Petaluma, Santa Cruz, and Sonoma
County in California require neighbor notice.
Most of the above communities also require annual renewal of permits or licenses. Yearly renewal
maintains a current list of active vacation rentals and contact information. Renewals may also be
withheld if VHR regulations have been violated, too many complaints have been received, applicable
taxes have not been paid, or if there are health and safety issues on the property. As an exception,
Portland requires renewal every two years, with a new inspection required every six years, barring a
change in owner, bedrooms rented, or cause for safety or violation concern.
Staff is confident that through a robust public engagement effort, research and utilizing experience from previous
City efforts, such as Illegal Duplexes (multi-year phase in approach with escalating fees), Fort Collins can develop
a unique, effective, and reasonable system to address STR activity and complaints.
Public Engagement
In addition to the online questionnaire, staff has met with both STR operators and neighbors. Many STR operators
have come forward and offered to share their experiences and best practices. These operators are very willing
and interested in being involved moving forward. As well, citizens interested in limiting and regulating STR
activity have also come forward and are working together.
Staff met with the Affordable Housing Board (Attachment 2) and the Planning and Zoning Board.
Staff also met with the Visit Fort Collins Board and the Board of Realtors.
All of these conversations recognized and spoke to the increasing popularity of STRs and the unique experience
STRs can bring to visitors. Many expressed a willingness to consider reasonable regulations with the Board of
Realtors being the most cautious towards over-regulating. None felt that STR activity was negatively impacting
housing affordability and many believe it is providing crucial secondary income to allow people to stay in their
homes.
Highlights from Research
Boulder, CO
Boulder voters will be considering a tax on short term rentals at the November. 3, 2015 election. If the tax does
not pass, the ordinance allowing short-term rentals will not go into effect. Instead, there will be an express
provision prohibiting short-term rentals.
Denver, CO
Working on developing a program: goals to include tax collection and a revocable license. Do not anticipate
having the capacity to inspect properties.
Durango, CO
Have permitted Tourist Homes since 1989. Recently updated for STR activity. Limit by total number in some
areas and by one-per block in other areas. Enforcement is biggest challenge.
Provo, Utah
An inspection of the property may be required prior to the issuance of a rental license. Information provided on the
application will be compared to original approval documents in the zoning office to determine the legal use and
October 27, 2015 Page 6
occupancy for the rental. Properties that were originally constructed as single family homes and have been
converted into two or more units may be inspected.
Sonoma County
Permit process in place. Maximum of 5 guestrooms. Limited to a maximum of 2 guests per guestroom plus 2
additional guests per property. The maximum number of guests allowed at any one time during the day is the
overnight occupancy limit +6.
Santa Barbara, CA
The City is aware that vacation rentals exist throughout the City and that most are operating in areas that do not
allow visitor stays of less than 30 days. The City Council has initiated a Zoning Ordinance Amendment to define,
regulate and permit home sharing rentals. The first step will be a public hearing and discussion with the Planning
Commission to discuss the various ways this could be done.
Anaheim, CA
Permit program in place. Occupancy limit of three people per bedroom; plus two. Adopted a moratorium in
September 2015 initiating a temporary pause in issuing or renewing short-term rental permits or related
variances, building permits, business licenses and entitlements to analyze community and industry comments and
to consider additional rules and regulations that may be needed.
Bellevue, WA
Registration program. No more than five units in any building and no more than 20 percent of the dwelling units
comprising a development shall be used for Short Term Stay Use at any given time.
Next Steps
Based on direction received, staff anticipates initiating a thorough public engagement process including
stakeholder focus groups and larger public forums.
ATTACHMENTS
1. CAST Best and Potential Practices (PDF)
2. Affordable Housing Board minutes, October 1, 2015 (draft) (PDF)
3. Email from Lloyd Walker, September 16, 2015 (PDF)
4. Public Engagement Summary (PDF)
5. Sustainability Assessment Summary and Tool (PDF)
6. Work Session Summary, June 9, 2015 (PDF)
7. Powerpoint presentation (PDF)
Taken from the CAST Vacation Home Rentals-Issues, Emerging Trends and Best Practices Report (June 2015)
Best and Potential Practices
Tracking
Regulations
Licensing
Permits
Taxing
Staffing
Neighborhood
Impacts
Workforce
Housing
Post information within the VHR X X X
Require local manager/emergency contact X X X
Coordinate with jurisdictions in region X X X
Create website on VHR’s X X X
Require property inspections X X
Negotiate Airbnb agreement X X
Require license numbers to be on all listings X X
Give neighbors notice X X
Map licensed/permitted VHR’s X X
Establish fee to cover management costs X X
Coordinate tracking across departments X X
Publish VHR requirements in newspapers X X
Work with code enforcement on complaints X
Post local VHR regulations on Airbnb X
Restrict VHR concentration X
Implement more restrictive regulations
where impacts are higher
X
Give owners unique rights to short-term their
homes X
Permit bedroom rentals w/owners present X
Create separate categories for VHR’s
depending on time rented X
Dedicate/hire staff for license compliance X
Educate realtors about requirements X
Link complaints to legal vs illegal VHR’s X
Establish enforcement procedures and use
them
X
Revoke licenses/permits for violations X
Increase license fees to mitigate workforce
housing impacts
X
Collect VHR details on license or permit
applications
X
ATTACHMENT 1
Taken from the CAST Vacation Home Rentals-Issues, Emerging Trends and Best Practices Report (June 2015)
Best and Potential Practices
Tracking
Regulations
Licensing
Permits
Taxing
Staffing
Neighborhood
Impacts
Workforce
Housing
Educate visitors that listings must have
license numbers X
Initiate state action to address 30-day limit
on sale taxation
X
Initiate state action to address how
properties are classified for property taxes
Assign community development lead
responsibility for VHR’s
X
Coordinate VHR’s w/ economic development X
Add staff specialist X
Hold stakeholder roundtables X
Impose occupancy limits X
Impose visitor limits X
Limit outdoor parties X
Manage trash X
Address parking X
Have general nuisance provision X
Use real estate database to track conversion
of housing into VHR’s
X
Create housing census X
Prohibit use of workforce housing for VHR’s X
Require check for workforce compliance
when licensing VHR’s
X
Allocate VHR revenue to housing X
Replace lost housing units X
Excerpt from Affordable Housing Board Minutes
October 1, 2015
AGENDA ITEM 1: Short Term Rentals—Ginny Sawyer
Vacation rentals issues have come to City attention over last two years, mostly through complaints.
Unregulated at this time. Any rental less than 30 days should pay lodging tax. Council has asked staff
to research. Online questionnaire, visiting boards, reaching out to vacation rental owners, bed and
breakfast owners, and complainants. Will have a public forum at a later date. Delineated between
vacation rental by owner (VBRO) versus Airbnb with property owner on site. However, a lot of units
are marketed as both. Most VBROs and Airbnbs have been operating less than 3 years. Around 120
total in Fort Collins. Very difficult to track. Majority are occupied more than 15 nights per month.
Have more compliance with sales and lodging tax with VRBO than Airbnb. Asked neighbors how
became aware they were living near a unit; majority said the owners informed them. Most neighbors
were not concerned, however concerns include operating a business in a neighborhood and character
change with transiency of occupant. Many do not feel should be regulated. Received 471 comments
on questionnaire. Benefits include supporting tourism, positive addition to community, and creating
valuable secondary income. Those who support regulations would like to see permitting, limiting the
number of occupants, self-certification, limiting the number of nights, requiring inspections, allowing
only in certain zones, limiting total number citywide, and meeting ADA standards. Overall
percentage of housing stock being used this way is less than 1%. Resort communities have much
larger scale of this activity. Going to Work Session to decide whether do nothing, ban, or have some
range of regulations. Many options through zoning, self-certifying, sales tax licensing, and
registration/permitting. Marketing sites are somewhat self-policing. It is in best interest of owner to
be safe, welcoming, etc.
Comments/Q&A
Sue: Durango has parking limitations.
o Ginny: Durango required a certain number of parking spaces per occupant.
Eloise: What is problem with collecting sales tax?
o Ginny: People knowing they need to collect it.
o Terence: Not creating employees, so people don’t think of this.
Curt: Even if municipality is not regulating, it is somewhat self-regulating. Guests and
owners can give negative feedback, which has consequences.
o Resort communities and large cities are concerned with this activity taking housing
off the market.
Troy: Of ones that rent out and owner is not on site, do people rent while on vacation and
otherwise live there, or use unoccupied home?
o Ginny: Both. A lot of communities have built in exemptions for those who only rent a
couple of times a year. Sometimes property is adjacent to primary residence or is a
carriage home. Communities are trying to crack down on absentee owners.
Diane: Explain community concerns.
o Ginny: Expectation that a residential area remains residential, not a business area.
Concern about not being able to know neighbors, character of neighborhood, noise,
etc. In multifamily people treat it as a hotel rather than a living place.
Sue: Regulations separate for different types?
o Ginny: Yes. Enforcement will be challenging. Secondary income becomes important.
Not always a guarantee that Airbnb owners are on site.
ATTACHMENT 2
Curt: Trying to understand how this is a threat to affordable housing? 30% AMI and below
are not Airbnb clientele. And sites are not those that would be occupied by low income
residents.
o Sue: If you have a house that is vacation by owner, it is off the market for a family to
rent or buy as primary residence.
o Diane: Concern about percentage of housing stock in short term rentals can be
addressed by having a limited number of licenses/permits.
Curt: Then it is first come first served and eliminates opportunity.
Troy: Since most don’t feel it is a problem now, not the right time to regulate.
From affordable housing standpoint, not a problem to spend staff time trying
to fix.
o Sue: What about Airbnb helping affordability by providing income to owners?
Troy: Can help someone into move-up property.
Curt: Property taxes are going up. Look at secondary income as not
necessarily just discretionary.
Diane: Would not make a blanket statement that a good thing.
Sue: Has heard that this can help people keep property while un/under-
employed.
Ginny: Will continue to pursue education about sales and lodging tax.
Council has mentioned full blown rental licensing.
Curt: Could that become cost prohibitive?
Ginny: In Durango was $750 for first year to cover inspection and
less for annual renewal. Should Fort Collins begin
inspections/regulation now, while there are less than 200? Don’t want
it to be so onerous that people take it underground. Keep it safe and
get sales tax.
Diane: Does the City have liability if someone is injured?
o Ginny: Do we increase our liability if we inspect and license, but someone still gets
injured?
o Sue: For hotels we inspect, but are not liable for injuries.
Ginny: Will let Council know board’s comments in Work Session.
Troy: Heard from Estes Park that it is a contentious issue there. Surprised it is only 7%.
o Terence: A lot of second homes in Estes.
o Troy: 0.44% is not a problem yet, but 7% is. Need to find right proportion.
Sue: Bed and Breakfast comments on this?
o Ginny: Only two in Fort Collins and one is a hostel. The hostel completely supports
Airbnb, but would like to see it taxed.
Curt: If goes toward regulation, investors that are not on site need to have higher level
regulations. Too onerous for on-site owners.
ATTACHMENT 3
PUBLIC ENGAGEMENT SUMMARY
PROJECT TITLE: SHORT TERM RENTAL ACTIVITY (STR) WITHIN FORT COLLINS
OVERALL PUBLIC INVOLVEMENT LEVEL: INVOLVE
BOTTOM LINE QUESTION:
Do VRBO and Airbnb (STR) uses need to be regulated by the City of Fort Collins?
KEY STAKEHOLDERS:
- VRBO/AirBnD Operators
- Neighbors of VRBO/Airbnb Units
- Existing Bed and Breakfast and Hotel Operators
- Visit Fort Collins Board
CITY BOARDS AND COMMISSIONS:
- Affordable Housing Board: Oct 1, 2015
- Planning and Zoning Board
OTHER BOARDS AND COMMITTEES:
- Visit Fort Collins Board: September 22, 2015
- Fort Collins Board of Realtors Legislative Committee: October 20, 2015
TIMELINE: May – 2nd
Quarter 2016
Phase 1:
Timeframe: May-October 2015
Key Messages:
- The City is exploring perspectives on the operation of VRBOs and Airbnbs within our community to
determine if any action is needed.
- Share your experience/concerns regarding short term rentals.
Tools and Techniques:
- Focus groups with operators and those who have had personal experience as neighbors.
- Online Questionnaire: promoted through stakeholders, fcgov.com, and social media
- Meet with Boards and Committees
PHASE 2: TBD
Timeframe: October 2015 -
Key Messages:
- The City is exploring potential regulation for STR activity in Fort Collins.
Tools and Techniques:
ATTACHMENT 4
SUSTAINABILITY ASSESSMENT SUMMARY
DATE: October 20, 2015
SUBJECT: Sustainability Assessment (SA) Summary for
Key issues identified:
Suggested mitigation actions:
•
Economic 1.0 Social 1.0 Environmental
1.0
Rating Average
1.0
-4.0
-3.0
-2.0
-1.0
0.0
1.0
2.0
3.0
4.0
Sustainability Rating
Rating without mitigation Rating with mitigation
Rating Legend
3 Very positive
2 Moderately positive
1 Slightly positive
0 Not relevant or neutral
-1 Slightly negative
-2 Moderately negative,
impact likely
-3 Very negative, impact
expected
ATTACHMENT 5
*The Fort Collins SAT was developed by modifying the Triple Bottom Line (TBL) Analysis Tool developed by Eugene, Oregon, July 2009. 1
City of Fort Collins SUSTAINABILITY ASSESSMENT TOOL (SAT)
(November 2014)
Creating a sustainable community
Plan Fort Collins is an expression of the community’s resolve to act sustainably: to systemically, creatively, and thoughtfully utilize environmental,
human, and economic resources to meet our present needs and those of future generations without compromising the ecosystems upon which we
depend.
How to use the tool
The Sustainability Assessment Tool (SAT) is designed to inform a deeper understanding of how policy and program choices affect the social
equity, environmental health and economic health of the community. The City of Fort Collins has developed a Sustainability Assessment
Framework that describes the purpose, objectives, and guidelines to assist City Program/Project Managers to determine:
• The process for cross-department collaboration in using the SAT
• Timing for applying a SAT
• When to apply a SAT
• How to document the results of the SAT and present at City Council Work Sessions and Regular Council Meetings
Further detailed guidance is available at: http://citynet.fcgov.com/sustainability/sustainabilityassessments.php
The SAT does not dictate a particular course of action; rather, the analysis provides policy makers and staff with a greater awareness of some
of the trade-offs, benefits and consequences associated with a proposal, leading to more mindful decision-making.
Brief description of proposal
Please provide a brief description of your proposal – 100 words or less
Possible regulations of Short Term Rental (STR) use in Fort Collins.
Staff lead(s):
Please note staff name, position/division and phone number
Ginny Sawyer-CMO
2
Social Equity
Described: Placing priority upon protecting, respecting, and fulfilling the full range of universal human rights, including those pertaining to civil,
political, social, economic, and cultural concerns. Providing adequate access to employment, food, housing, clothing, recreational opportunities, a
safe and healthy environment and social services. Eliminating systemic barriers to equitable treatment and inclusion, and accommodating the
differences among people. Emphasizing justice, impartiality, and equal opportunity for all.
Goal/Outcome: It is our priority to support an equitable and adequate social system that ensures access to employment, food, housing, clothing,
education, recreational opportunities, a safe and healthy environment and social services. Additionally, we support equal access to services and
seek to avoid negative impact for all people regardless of age, economic status, ability, immigration or citizenship status, race/ethnicity, gender,
relationship status, religion, or sexual orientation. Equal opportunities for all people are sought. A community in which basic human rights are
addressed, basic human needs are met, and all people have access to tools and resources to develop their capacity. This tool will help identify how
the proposal affects community members and if there is a difference in how the decisions affect one or more social groups. Areas of consideration in
creating a vibrant socially equitable Fort Collins are: basic needs, inclusion, community safety, culture, neighborhoods, and advancing social equity.
Analysis Prompts
• The prompts below are examples of the issues that need to be addressed.
They are not a checklist. Not all prompts and issues will be relevant for any
one project. Issues not covered by these prompts may be very pertinent to a
proposal - please include them in the analysis.
Is this proposal affected by any current policy, procedure or action plan?
Has advice been sought from organizations that have a high level of
expertise, or may be significantly affected by this proposal?
Proposal Description
Regualtions could include registration, licensing, inspections, and limitation on
number or STRs.
1. Meeting Basic Human Needs
• How does the proposal impact access to food, shelter,
employment, health care, educational and recreational
opportunities, a safe and healthy living environment or
social services?
• Does this proposal affect the physical or mental health of
individuals, or the status of public health in our community?
• How does this proposal contribute to helping people achieve
and maintain an adequate standard of living, including housing,
or food affordability, employment opportunities, healthy families,
or other resiliency factors?
Analysis/Discussion
STR use provides additional income to FC homeowners and renters.
STR use can be attractive to investors.
2. Addressing Inequities and being Inclusive
• Are there any inequities to specific population subsets in this
proposal? If so, how will they be addressed?
• Does this proposal meet the standards of the Americans with
Disabilities Act?
• How does this proposal support the participation, growth
STRs could take homes off the traditional rental market, which further
suppresses supply and inflates rents. This could contribute to the further
gentrification of Fort Collins.
3
and healthy development of our youth? Does it include
Developmental Assets?
• If the proposal affects a vulnerable section of our community (i.e.
youth, persons with disabilities, etc.)
3. Ensuring Community Safety
• How does this proposal address the specific safety and
personal security needs of groups within the community,
including women, people with disabilities, seniors, minorities,
religious groups, children, immigrants, workers and others?
For some, STR use creates a sense of lack of safety due to the transient nature
of who may be staying in the house next door to them.
4. Culture
• Is this proposal culturally appropriate and how does it affirm
or deny the cultures of diverse communities?
• How does this proposal create opportunities for artistic and
cultural expression?
5. Addressing the Needs of Neighborhoods
• How does this proposal impact specific Fort Collins
neighborhoods?
• How are community members, stakeholders and interested
parties provided with opportunities for meaningful participation
in the decision making process of this proposal?
• How does this proposal enhance neighborhoods and
stakeholders’ sense of commitment and stewardship to our
community?
Many see the transient nature of STRs creating less of a sense of community
since they don’t know their neighbors.
Some see STR use as being commercial enterprises and thus degrading the
sense of community within the neighborhood.
Extra income from short-term rentals can keep existing community members in
their homes and enhance neighborhood stability.
6. Building Capacity to Advance Social Equity
• What plans have been made to communicate about and
share the activities and impacts of this proposal within the
City organization and/or the community?
• How does this proposal strengthen collaboration and
cooperation between the City organization and community
members?
Social Equity Summary
There is not enough data at this point to determine if STR helps more people stay in their homes or if it is a detriment to housing and neighborhood stability.
Key issues:
4
Potential mitigation strategies:
Overall, the effect of this proposal on social equity would be:
Please reach a consensus on the rating and enter an “x” in one of the following boxes
+3 +2 +1 0 -1 -2 -3
Very
positive
Moderately
positive
Slightly
positive
Not
relevant
or neutral
Slightly
negative
Moderately
negative,
impact
likely
Very
negative,
impact
expected
X
Environmental Health
Described: Healthy, resilient ecosystems, clean air, water, and land. Decreased pollution and waste, lower carbon emissions that contribute to
climate change, lower fossil fuel use, decreased or no toxic product use. Prevent pollution, reduce use, promote reuse, and recycle natural
resources.
Goal/Outcome: Protect, preserve, and restore the natural environment to ensure long-term maintenance of ecosystem functions necessary for
support of future generations of all species. Avoid or eliminate adverse environmental impacts of all activities, continually review all activities to identify
and implement strategies to prevent pollution; reduce energy consumption and increase energy efficiency; conserve water; reduce consumption and
waste of natural resources; reuse, recycle and purchase recycled content products; reduce reliance on non-renewable resources.
Analysis Prompts
• The prompts below are examples of issues that need to be addressed.
They are not a checklist. Not all prompts and issues will be relevant for
any one project. Issues not covered by these prompts may be very pertinent
to a proposal - please include them in the analysis.
• Is this proposal affected by any current policy, procedure or action
plan? Has advice been sought from organizations that have a high level
of expertise, or may be significantly affected by this proposal?
1. Environmental Impact
• Does this proposal affect ecosystem functions or
processes related to land, water, air, or plant or
animal communities?
• Will this proposal generate data or knowledge related to the
use of resources?
• Will this proposal promote or support education in
prevention of pollution, and effective practices for
Analysis/Discussion
STRs typically don’t clean sheets/rooms daily and so have a smaller
environmental impact than a traditional hotel.
People can choose a STR within walking or biking distance to their destinations
which could eliminate the need to drive.
5
reducing, reusing, and recycling of natural resources?
• Does this proposal require or promote the continuous
improvement of the environmental performance of the City
organization or community?
• Will this proposal affect the visual/landscape or aesthetic
elements of the community?
Since STR websites rely on customer reviews, most maintain their properties at
good to high standards.
2. Climate Change
• Does this proposal directly generate or require the
generation of greenhouse gases (such as through
electricity consumption or transportation)?
• How does this proposal align with the carbon reduction goals for
2020 goal adopted by the City Council?
• Will this proposal, or ongoing operations result in an
increase or decrease in greenhouse gas emissions?
• How does this proposal affect the community’s efforts to reduce
greenhouse gas emissions or otherwise mitigate adverse climate
change activities?
3. Protect, Preserve, Restore
• Does this proposal result in the development or modification
of land resources or ecosystem functions?
• Does this proposal align itself with policies and procedures
related to the preservation or restoration of natural habitat,
greenways, protected wetlands, migratory pathways, or the
urban growth boundary
• How does this proposal serve to protect, preserve, or restore
important ecological functions or processes?
4. Pollution Prevention
• Does this proposal generate, or cause to be generated,
waste products that can contaminate the environment?
• Does this proposal require or promote pollution prevention
through choice of materials, chemicals, operational practices
and/or engineering controls?
• Does this proposal require or promote prevention of
pollution from toxic substances or other pollutants
regulated by the state or federal government?
• Will this proposal create significant amounts of waste or
pollution?
6
5. Rethink, Replace, Reduce, Reuse, Recirculate/Recycle
• Does this proposal prioritize the rethinking of the materials or
goods needed, reduction of resource or materials use, reuse of
current natural resources or materials or energy products, or
result in byproducts that are recyclable or can be re-circulated?
6. Emphasize Local
• Does this proposal emphasize use of local materials,
vendors, and or services to reduce resources and
environmental impact of producing and transporting
proposed goods and materials?
• Will the proposal cause adverse environmental effects
somewhere other than the place where the action will take
place?
STRs utilizes locally owned homes and furnishings.
Environmental Health Summary
Key issues:
Potential mitigation strategies:
Overall, the effect of this proposal on environmental health would be:
Please reach a consensus on the rating and enter an “x” in one of the following boxes
+3 +2 +1 0 -1 -2 -3
Very
positive
Moderately
positive
Slightly
positive
Not
relevant
or neutral
Slightly
negative
Moderately
negative,
impact
likely
Very
negative,
impact
expected
x
Economic Health
Described: Support of healthy local economy with new jobs, businesses, and economic opportunities; focus on development of a diverse economy,
enhanced sustainable practices for existing businesses, green and clean technology jobs, creation or retention of family waged jobs.
7
Goal/Outcome: A stable, diverse and equitable economy; support of business development opportunities.
Analysis Prompts
• The prompts below are examples of the issues that need to be addressed.
They are not a checklist. Not all prompts and issues will be relevant for any
one project. Issues not covered by these prompts may be very pertinent to a
proposal - please include them in the analysis
• Is this proposal affected by any current policy, procedure or action plan? Has
advice been sought from organizations that have a high level of expertise, or
may be significantly affected by this proposal?
1. Infrastructure and Government
• How will this proposal benefit the local economy?
• If this proposal is an investment in infrastructure is it designed
and will it be managed to optimize the use of resources
including operating in a fossil fuel constrained society?
• Can the proposal be funded partially or fully by grants, user
fees or charges, staged development, or partnering with
another agency?
• How will the proposal impact business growth or operations
(ability to complete desired project or remain in operation), such
as access to needed permits, infrastructure and capital?
Analysis/Discussion
Brings in tourism dollars.
Operators collect and remit both lodging and sales tax.
2. Employment and Training
• What are the impacts of this proposal on job creation
within Larimer County?
• Are apprenticeships, volunteer or intern opportunities
available?
• How will this proposal enhance the skills of the local workforce?
3. Diversified and Innovative Economy
• How does this proposal support innovative or
entrepreneurial activity?
• Will “clean technology” or “green” jobs be created in this
proposal?
• How will the proposal impact start-up or existing businesses or
development projects?
Cyber economy, growing industry. Providing income to owners.
TO date, support from traditional hotel/motels.
4. Support or Develop Sustainable Businesses
• What percentage of this proposal budget relies on local services
or products? Identify purchases from Larimer County and the
State of Colorado.
Visitors could get better introduction to local goods and services by staying with
a member of the community.
Some use STRs to get a more local experience while considering local jobs or a
relocation.
8
• Will this proposal enhance the tools available to businesses
to incorporate more sustainable practices in operations and
products?
• Are there opportunities to profile sustainable and socially
responsible leadership of local businesses or educate
businesses on triple bottom line practices?
5. Relevance to Local Economic Development Strategy
Economic Prosperity Summary
Key issues:
Potential mitigation strategies:
Overall, the effect of this proposal on economic prosperity will be:
Please reach a consensus on the rating and enter an “x” in one of the following boxes
+3 +2 +1 0 -1 -2 -3
Very
positive
Moderately
positive
Slightly
positive
Not
relevant
or neutral
Slightly
negative
Moderately
negative,
impact
likely
Very
negative,
impact
expected
x
ATTACHMENT 6
1
City Council Work Session
October 27, 2015
Short Term Rental Activity in Fort Collins
(Vacation Rental by Owner/ Airbnb)
ATTACHMENT 7
Questions/Direction Sought
1. Does Council want to pursue regulations beyond the collection of
Lodging Tax?
2. Is so, what specific concerns should a regulatory system address?
3. Does Council support addressing the concentration of Short Term
Rental (STR) activity, particularly in residential neighborhoods?
2
Background
Short Term Rentals (STR):
§ Less than 30 days.
§ Fort Collins tax code requires paying lodging tax.
Two activity types:
§ Whole house rental with no owner on-site.(VRBO)
§ Room(s) in a house with owner on-site. (Airbnb)
3
Background
Actual numbers of STRs are difficult to track.
§ Exact addresses not available on most sites.
§ Properties not listed in any particular order.
§ Overlap between sites.
§ A search for “Fort Collins” yields listings outside city limits including
Loveland, Windsor, and rural areas.
4
Background
Total Housing Units Listings on VR Websites % of Units Listed
Breckinridge
7,187 2,911 41%
Estes Park
4,176 301 7%
Boulder
44,370 514 1%
Durango
7,234 73 1%
Portland
200,000 1600 0.8%
Fort Collins
62,832 278 0.44%
Denver
290,496 1000 0.34%
5
*Breckinridge, Estes Park, and Durango cited in CAST report. Denver & Boulder numbers cited in city materials.
Portland taken from 2014 data. Fort Collins numbers not scrubbed for duplicates or confirmed as within city limits
Questionnaire Results
6
How long have you operated your
VRBO?
How long have you operated your
Airbnb?
Less
than a
year.
32%
Between
1 and 3
years.
46%
More
than 3
years.
22%
Less
than a
year.
40%
Between
1 and 3
years.
53%
More
than 3
years.
7%
Questionnaire Results
7
Do you have concerns with having a
VRBO near you?
Do you have concerns with having an
Airbnb near you?
Yes - very
concerned
21%
Maybe -
somewhat
concerned
17%
No - no
concerns
59%
Undecided
3%
Yes - very
concerned
14%
Maybe -
somewhat
concerned
13%
No - no
concerns
Undecided 72%
1%
Questionnaire Results
8
Do you think VRBO/Airbnb activity should be regulated?
Yes
26%
No
44%
Maybe
23%
I don't
know
7%
Questionnaire Results
9
Require a permit through the City 154
Limit the number of occupants at any one time 131
Have owners self-certify that they are paying sales tax and that their units meet safety standards
(smoke alarms, egress windows, etc-No onsite inspection.)
103
Limit the number of nights units can be rented 90
Require that all VRBO/Airbnbs are inspected by the City 88
Only allow in certain zones 85
Limit the number City-wide 67
Other 47
Require that VRBO/Airbnbs meet ADA standards 45
Total 206
Moving Forward
§ Education, outreach, and enforcement to ensure Lodging Tax remittal
§ Land Use Code definition for Short Term Rental
10
Regulatory Options
§ Registration
§ Revocable permit/license
§ Life-Safety checklist/inspection
§ Local Owner/Contact
§ Concentration/Location
§ Parking Requirements
§ Occupancy Requirements
11
Questions/Direction Sought
1. Does Council want to pursue regulations beyond the collection of
Lodging Tax?
2. Is so, what specific concerns should a regulatory system address?
3. Does Council support addressing the concentration of Short Term
Rental (STR) activity, particularly in residential neighborhoods?
12