The Village of Suttons Bay, Suttons Bay Township, Village of Northport, Bingham Township, Empire Township, Leelanau Township, Leland Township and Elmwood Township have adopted short-term rental ordinances. City staff found few complaints. Related: Lawmakers look to stop cities from banning short-term rentals, but some say they add to housing shortage. May 24, 2021. Loud music, late-night bonfires, even PA systems, beer pong and extra tents take over the yard. HOLLAND The Michigan House of Representatives stayed in session through the early hours of Wednesday morning, passing a bill that local officials say will largely strip communities of their ability to regulate short-term rentals. 206b. surprised many who have followed the legislation. 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. I would hope the Senate is more levelheaded. Were not fundamentally opposed to short-term rentals. We are doing it well; we are doing it the way it was meant to be done, McGinnis said. A single-family home was sold and renovated into a short-term rental. "Legislation should not politicize our . 42, District HB 4722 Michigan House Bill 2021-2022 Regular Session Introduced in House Apr 27, 2021 Passed House Oct 27, 2021 Senate Governor Land use: zoning and growth management; Michigan zoning enabling act; amend to include short-term rentals. However, the bill loosely defines common ownership as ownership in whole or in part by the same individual, individuals, or legal entity. Consequently, it seems that an individual could potentially circumvent a limit on the number of short-term rental units under common ownership by forming business entities to own additional units. This means that at least 30% of the residential units in each municipality could be potentially used as short-term rentals. My biggest fear is housing and apartments for our seasonal and everyday laborers in Petoskey; that it will take up those spaces with short-term rentals knowing someone can make one months rent in a week during the busy season of the year, said Petoskey Mayor John Murphy. The general feeling in our community and not just in resort towns, but all communities is that were not supportive of efforts to do land-use planning from Lansing, said Grand Haven City Manager Pat McGinnis. (The Center Square) - In an overnight session, the Michigan House voted 55-48 to pass a bill that aims to prohibit local governments from banning short-term rentals. 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. 2023 Advance Local Media LLC. 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. Its the change in use that is the problem for that neighborhood, McGinnis said. 105, District While most people were sleeping the state House passed House Bill 4722 (H-11) by a vote of 55-48. The following bill formatting applies to the 2019-2020 session: - New language in an amendatory bill will be shown in bold - Language to be removed will be stricken. THE PEOPLE OF THE STATE OF MICHIGAN ENACT: Sec. Land use: zoning and growth management; Michigan zoning enabling act; amend to include short-term rentals. Corporate media arent cutting it. SUBSTITUTE FOR HOUSE BILL NO. on new short-term rental licenses until Dec. 13. 2021 House Bill 4722: Ban disparate regulations on Airbnb-type rentals. Short-term rentals have been on the Michigan Legislatures radar for several years, but bills havent gained traction until last month. , which Rep. Graham Filler (R-DeWitt) introduced in December 2021. proposes an excise tax on short-terms at a rate equal to the tax of traditional lodging, along with a requirement that accommodation intermediaries such as Airbnb be responsible for the remittance of all their hosts taxes. 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. Lawmakers and opposing groups have worked to, 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.. Airbnb says HB 4722 and HB 5605 would modernize Michigans regulation of short-term rentals. House Bill 4722 has four main components: it would bar local governments from enacting or enforcing ordinances that ban short-term rentals; it would place a cap on the total number of short-term rentals to 30 percent of all residential units; local governments could limit an owner or ownership group to two short-term rental properties; In addition, many lakeshore communities are grappling with a shortage of available, affordable, year-round housing for service-industry workers or people who want to relocate to the community for employment. The House Committee on Commerce and Tourism approved the bill on May 25, 2021. . In Leelanau County, another popular vacation destination, villages and townships continue to grapple with the issue. In 2018, when Holland began a pilot program allowing short-term rentals in residential neighborhoods, city officials set a limit of 25 non-owner occupied units. The measure approved by the House is a solid compromise that provides both certainty for private property owners across the state and flexibility for local municipalities that deserve to have some control over the planning and zoning of their communities, Lightner said in a statement. Theres also some opposition from business groups, like the Michigan Restaurant and Lodging Association, which says the legislation would add to the challenges the hotel and lodging industry faces while continuing to recover from the COVID-19 pandemic. I do support the [HB 4722] legislation, but I think that a local governments ability to police these, which still seems to be preserved in that legislation, is still the most important angle, said Jason A. Metcalf, an attorney and short-term rental owner in Suttons Bay who has been monitoring the developments at the local and state level. Spectrum: Strong Partisan Bill (Republican 12-1). 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. 2021 House Bill 4722: Ban disparate regulations on - Michigan Votes "I was very surprised it moved on [Oct. 27] in the way and fashion it did," said Jennifer Rigterink, a legislative associate with the Michigan Municipal League (MML), which opposes the bill. 2021 MI HB4722 (Votes) Land use: zoning and growth management; Michigan zoning enabling act; amend to include short-term rentals. The rental of residential property is important to Michigan second home markets and in urban areas around event destinations. Banning the right to rent harms property owners and local businesses in many communities all over Michigan.. Michigan Advance maintains editorial independence. 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.. The city even took an illegal STR operator to court after they were cited numerous times and won. If the sole purpose is to be a commercial activity to make money that is different from families who live, work, raise their children there, and want to have a quality of life in a community, she said. View Latest Bill Text Sign In to Follow 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. Amends 2006 PA 110 (MCL 125.3101 - 125.3702) by adding sec. No legislative action had been taken on HB 4722 in the five months between when it was referred out of Committee and the legislative session when it was brought to a vote before the full chamber of the House. HB 4722 has been referred to the Senate Committee on Regulatory Reform, which approved a bill earlier this year that was identical to the previous version of HB 4722 approved by the House Committee on Commerce and Tourism. The bill does not appear to have enough support in the legislature to override a veto. WHEREAS, Michigan Senate Bill 446 and its companion legislation House Bill 4722, seek to amend the Michigan Zoning Enabling Act, to define a short-term rental as any rental of not more . in residential areas with various regulations that was adopted as part of its local zoning ordinance. Bridgman Council members told short-term rental bill alive in State House Bill 4722 passed the House 55-47 during an extended session early Wednesday. Under the bill, local governments can continue to create and enforce ordinances related to inspections, noise, traffic and other nuisances that apply to rentals and owner-occupied residences. 4985, calling it a compromise. Municipal officials should contact Mika Meyers for assistance with any questions or concerns about the effects of HB 4722. Proponents of the bill say that its passage will help property owners earn extra income and will give tourists more lodging options. House GOP narrowly passes bill to raise debt limit and cut spending 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. Corporate media arent cutting it. Our stories may be republished online or in print under Creative Commons license CC BY-NC-ND 4.0. Thirty percent of 12,185 is 3,655 meaning if HB 4722 were to become law as written, Holland couldnt set a limit on the number of short-term rentals below 3,655. Daniel Krason / Shutterstock.com. I dont want this legislation unintendedly to create a further gap, a further erosion of our housing supply.. narrowly passed the House in a late-night session last October, a move that. or continue to examine the issue, while also opposing the bill. GET THE MORNING HEADLINES DELIVERED TO YOUR INBOX, by Marla R. Miller, Michigan Advance November 6, 2021. We ask that you edit only for style or to shorten, provide proper attribution and link to our web site. Many lakeshore communities have already adopted short-term rental ordinances that officials say are in the best interest of local residents and homeowners. Calls to Michigan Realtors were not returned for this story, but the association does have a statement on its website, maintaining that local governments can enforce nuisance ordinances and housing codes to protect public safety and address any unruly behavior. A local unit of government shall not adopt or enforce zoning ordinance provisions that have the effect of prohibiting short-term rentals," the bill states. At the heart of the issue is whether short-term rentals are a residential or commercial use of property. The bipartisan legislation, House Bill 4722 and Senate Bill 446, revisits an ongoing debate about local government control over short-term rentals. 206b. Among the states more than 1,200 townships, the league only found one with a ban in place. For additional roll call votes on Michigan HB4722 please see the Vote List Bill Title: Land use: zoning and growth management; Michigan zoning enabling act; amend to include short-term rentals. A single-family home was sold and renovated into a short-term rental. Holland is another West Michigan community that has enacted local ordinances to manage short-term rentals, permitting them in commercially zoned areas such as the downtown. Spectrum: Strong Partisan Bill (Republican 12-1) Status: (Engrossed - Dead) 2022-10-11 - Referred To Committee Of The Whole [HB4722 . The city also launched a pilot program for non-owner occupied short-term rentals in residential areas with various regulations that was adopted as part of its local zoning ordinance. Both the Michigan Realtors, an advocacy group for Michigans real estate professionals, and the Mackinac Center for Public Policy, a free-market think tank, support the legislation. Taking away local control ties our hands on this, and it could be many other things, Carruthers said. In addition, the law allows local governments to limit the number of units under common ownership used for short-term rentals to two. Michigan Advance is part of States Newsroom, a network of news bureaus supported by grants and a coalition of donors as a 501c(3) public charity. The proposed law states communities cannot restrict short-term rentals to less than 30% of the number of existing residential units in the local unit of government. But opponents say short-term rentals should be regulated at the local level. 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. short-term rentals arent subject to the same taxes or regulations. Humphrey said short-term rentals have been . Local government officials say they're disappointed after the state House passed a bill that allows homeowners to set up short term rentals where ever they own property. The Airbnb app icon is seen on an iPad screen, Saturday, May 8, 2021. 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. Van Beek also raised concerns about housing stock issues if short-term rentals are allowed to go virtually uncapped, particularly among affordable housing units. Amends 2006 PA 110 (MCL 125.3101 - 125.3702) by adding sec. 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. You cannot legislate for the entire state of Michigan, she said. But when warm weather rolls around, you soon discover a revolving door at the house next door. Representatives from Michigan Township Association testified in opposition to HB 4722 at early House committee hearings and. The legislation aims to protect Michigan property owners fundamental right to use their dwelling or home as a short-term rental, according to proponents. Beckett & Raeder report, the village currently has 61 operating short-term rentals, which represents 13% of the communitys total housing stock. All rights reserved (About Us). Follow them on Twitter @arpanlobo, @BizHolland and @cjmuyskens. We still oppose it and theres been no negotiation,, . stop Michigan communities from outright banning short-term rentals, short-term rentals through services like VRBO, Airbnb and Homestay. Its skyrocketed in popularity.. In addition, it also codifies the right for counties, cities and townships to continue to, or begin to, require the issuance of a locally issued STR license, limit local licenses to two per person, and implement license enforcement policies to meet the communitys standards. Local governments would also be able to set limits on the number of short-term rentals, so long as the limit wasnt less than 30 percent of existing residential units in a municipality. Theres definitely work being done to try to get it to a vote.. But short-term rentals do bring added traffic, nuisance and public safety issues. The bill would prohibit local governments from adopting . Its the desirability of the area. Rigterink has been fielding plenty of calls from members after the surprise vote. worked on the compromising legislation, but it hasnt gained traction, said Judy Allen, MTAs director of government relations. The substitute bill adopted by the House adds several additional provisions to the version reported out of the Commerce and Tourism Committee. Community Rules apply to all content you upload or otherwise submit to this site. A Whitmer spokesperson said Wednesday the governor has not made a decision on the bill because its still going through the legislative process. By common sense, these are commercial uses of property, said Keith Van Beek, city manager of Holland. amendment that prohibits new short-term rentals in certain residentially zoned districts. Metcalf lives in the area and has several short- and long-term rentals in and around Suttons Bay, which he manages and maintains. Grand Haven welcomes short-term rentals, but there needs to be a balanced approach, McGinnis said. 0:01. In addition, with inflation and the rising cost of living across the country, many short-term rental hosts rely on the additional income. House Republicans on Wednesday narrowly passed a bill to increase the nation's debt ceiling while cutting federal government spending -- and while the legislation has no prospect of becoming law . They maintain local communities are in essence banning short-term rentals by limiting the number of licenses and restricting where they can be located. 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. 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. That seems to be lost., , a Southwest Michigan community that recently. The measure approved by the House is a solid compromise that provides both certainty for private property owners across the state and flexibility for local municipalities that deserve to have some control over the planning and zoning of their communities, Lightner said. Last week, Rep. John Damoose, R-Harbor Springs, and Rep. Jack OMalley, R-Lake Ann, proposed House Bill 4985. This exemption is remarkably narrow and specific; it does not seem to further a distinguishable public policy purpose, but rather it appears to be a byproduct of political maneuvering among legislators. Families across Michigan rely on home sharing to supplement their income and welcome visitors whose spending supports the states businesses and tourism economy, said Vincent Frillici, a public policy regional manager for San Francisco-based Airbnb, in a statement. The people in Lansing have no concept about what this bill will do to local municipalities.. City officials from Grand Rapids, Frankenmuth and Marquette joined the press conference to voice their concern over short-term rentals eating away at an already competitive housing market. Cambensy weighs in on proposed bill - The Mining Journal PDF Resolution Opposing Michigan House Bill 4722 and Senate Bill 0466 (2021 Our stories may be republished online or in print under Creative Commons lisence CC BY-NC-ND 4.0. Michigan Legislature - House Bill 4722 (2019) House Bill 4722, along . They havent fully banned them, but youre banning it for the vast majority of property owners, Skorup said. When it comes to the property rights issue, there seems to be a lack of acknowledgement that everybody has property rights, Rigterink told the Advance. Several of the hotels in Holland Township opened in the past three years. Access to affordable housing has been a prevalent issue throughout greater-Holland. People who work here need to have a place to live, McGinnis said. And several destination cities, including Detroit and Traverse City, prohibit short-term rentals in residentially zoned areas. Grand Rapids needs to add more than 9,000 housing units over the next four years to keep up with demand, city manager Mark Washington said. The Village of Suttons Bay is reexamining its current ordinance after complaints from residents and even hired a firm, Beckett & Raeder of Ann Arbor, to research short-term rental regulations in communities around Leelanau County and elsewhere. She voted no last week. It was sounding a lot more like they were going to limit it down to nothing, which concerned me, Metcalf said. 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. 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. DEIJ Policy | Ethics Policy | Privacy Policy. Nobody knew they were voting on it.. Jennifer Rigterink, Michigan Municipal League legislative associate, called the substitutes laughable as a solution. A statement from President Joe Biden's administration says that the bill would put LGBTQ students at a higher risk. In the early morning hours of Wednesday, October 27, 2021, the Michigan House of Representatives passed House Bill 4722 (HB 4722), which significantly limits how local governments may regulate short-term rentals. One issue hinges on whether short-term rentals are considered commercial use. Cookie Settings/Do Not Sell My Personal Information. While those opposed to the bill say communities arent banning outright short-term rentals, Skorup argues that municipalities like Holland Township and St. Clair Shores essentially have full bans through their zoning. Short-term rentals are more prevalent in lakeshore communities that attract tourists and those that host sporting events, but they also are located on small inland lakes and in rural parts of the Upper Peninsula. At the heart of the issue is whether short-term rentals are a residential or commercial use of property. The Arguments Against Short-Term Rentals Are Shallow (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. Theres definitely work being done to try to get it to a vote., 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.. Amends 2006 PA 110 (MCL 125.3101 - 125.3702) by adding sec. 67, District Zoning is intended to regulate conflicting land uses and problems that ensue, and communities zone based on master plans, local needs, and the Michigan Zoning Enabling Act. Its a misnomer; its a fallacious argument, Metcalf said, noting his Airbnbs often help subsidize the units he rents out to year-round workers. Last year, the Michigan House of Representatives passed House Bill 4722, which, if enacted, would establish short-term rentals as a residential use permitted in all residential zoning districts throughout the state. The bill is supported by Michigan Realtors, a real-estate advocacy group, and the Mackinac Center for Public Policy, a conservative think tank. Multiply that by five, and theyre much more likely to occur near water, and those neighborhoods could become completely overrun with short-term rentals and thats just not good for our town.. Rather, it is a residential use of property and should be permitted in all residential zones. House Bill 4722, introduced by Rep. Sarah Lightner, R-Springport Township, passed 55-48 after the House remained in session past 2 a.m. If it is passed by the state Senate and signed by the governor, it would prevent local governments. The Village of Suttons Bay is reexamining its current ordinance after complaints from residents and even hired a firm, in communities around Leelanau County and elsewhere. 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. The ordinance has been in place since 2014, prohibiting, new vacation rentals in residential districts, but Petoskey still. Register now for our free OneVote public service or GAITS Pro trial account and you can begin tracking this and other legislation, all driven by the real-time data of the LegiScan API. Were on high alert on that bill, said Jennifer Rigterink, assistant director of state and federal affairs for the Michigan Municipal League, one organization that opposes the legislation. , sponsored by Rep. Sarah Lightner (R-Springport Twp. The city has offered incentives to developers to build more affordable units, but even those are becoming short-term rentals in commercially zoned areas.