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HomeMy WebLinkAboutORD 2024-007AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF GRAPEVINE, TEXAS AMENDING THE COMPREHENSIVE ZONING ORDINANCE OF THE CITY OF GRAPEVINE, TEXAS, SAME BEING ALSO KNOWN AS APPENDIX "D" OF THE CITY CODE OF GRAPEVINE, TEXAS, AMENDING SECTION 12, DEFINITIONS; SECTION 21, RESERVED; SECTION 22, "R-MF", MULTIFAMILY DISTRICT REGULATIONS; AND SECTION 56, OFF-STREET PARKING REQUIREMENTS REGARDING SHORT-TERM RENTALS INCLUDING ASSOCIATED REGULATIONS, (AM23-08); REPEALING CONFLICTING ORDINANCES; PROVIDING A PENALTY; PROVIDING A SEVERABILITY CLAUSE; PROVIDING AN EFFECTIVE DATE WHEREAS, the City of Grapevine is a home -rule municipality authorized to adopt and enforce ordinances necessary to protect heath, life, and property to preserve good government and the security of its inhabitants; and WHEREAS, the City of Grapevine has adopted a comprehensive Zoning Ordinance to regulate the location and use of buildings and land in full accordance with Chapter 211 of the Local Government Code; and WHEREAS, the City of Grapevine began examining the impact of short-term rentals in 2017; and WHEREAS, Section 92.001 of the Texas Property Code defines "dwelling" as one or more rooms rented for use as a permanent residence under a single lease ...."; and WHEREAS, Section 156.101 of the Tax Code establishes that a "permanent resident" is one who has the right to use or possess a room in a hotel for at least thirty (30) consecutive days; and WHEREAS, Section 156.051 of the Texas Tax Code imposes a tax applicable to short-term rentals as a commercially taxable use of property; and WHEREAS, short-term rentals are not now and have never been listed as a permitted use within any Zoning District within the City; and WHEREAS, there has been a proliferation of short-term rentals within residential areas of the City; and WHEREAS, short-term rentals do not fit in or fall under the definition of single- family attached dwelling or single-family detached dwelling under the Zoning Ordinance; and WHEREAS, short-term rentals in the City of Grapevine, with their attendant traffic, parking, noise, litter, and the influx of non-residents into residential areas is incompatible with the intent of residential districts in the City and the desires and expectations of the City's residents and is contrary to the long-standing character of the community; and WHEREAS, short-term rentals are not consistent with the character or nature of single-family residential uses under the Zoning Ordinance; and WHEREAS, short-term rentals are not suitable in residential neighborhoods, are not compatible with residential uses, and the neighborhood adjacency of short-term rentals in residential neighborhoods is harmful; and WHEREAS, short-term rentals are destructive to the residential character of single-family neighborhoods, by replacing long-term, permanent residents with a revolving door of transients; and WHEREAS, short-term rentals have a detrimental impact on the local housing market by diminishing market supply and inflating the overall costs of housing; and WHEREAS, in the absence of being listed as a permitted use in any Zoning District, short-term rentals are prohibited under the City's Zoning Ordinance; and WHEREAS, short-term rentals in residential areas of the City pose a risk of increased public nuisances, disruption of neighborhoods, and additional enforcement related issues; and WHEREAS, the City's Police Department has responded to multiple calls for service at known addresses of short-term rentals in residential areas of the City; and WHEREAS, the calls for service attributable to short-term rentals in residential areas of the City include noise, parking, trash, and disturbance complaints; and WHEREAS, the increase in calls for service attributable to short-term rentals in residential areas of the City result in an additional burden on the Police Department; and WHEREAS, the City of Grapevine City Council has determined that it is a necessity to regulate activities as provided for herein to safeguard the public; and Ordinance No. 2024-007 2 AM23-08 WHEREAS, the City Council of the City of Grapevine deems the passage of this ordinance as necessary to protect the health, safety, and welfare of the public; and WHEREAS, the City Council of the City of Grapevine wishes to amend the Zoning Ordinance regarding short-term rentals with certain stipulations; and WHEREAS, the City Council finds that enacting a permitting program for short- term rentals will serve to balance the rights of all stakeholders through a fair and balanced regulatory framework that permits short-term rentals in limited locations and circumstances but ensures that the short-term rentals do not become a nuisance to the residential neighborhoods; and WHEREAS, regulations requiring the registration and permitting of short-term rentals in the City will allow the City to properly identify the location of short-term rentals and to provide contract information for owners and agents of short-term rentals to aid in responding to complaints and emergencies; and WHEREAS, the City has received numerous complaints about short-term rentals in the past six years from citizens who have contacted code enforcement, police and city councilmembers about short-term rentals in their neighborhoods; and WHEREAS, out-of-town guests staying at short-term rentals are often unfamiliar with City ordinance regulations governing noise, trash collection, occupancy restrictions, and parking, as those regulations vary by jurisdiction, and lack familiarity with the City’s ordinances can contribute to guests violating City ordinances; and WHEREAS, short-term rentals can often times become party houses where there is an increase in activity of persons, traffic, and noise that are disruptive to the neighborhood especially where the rental capacity of such short-term rentals is expanded beyond traditional residential uses; and WHEREAS, the City of Grapevine is authorized by law to adopt the provisions contained herein; and WHEREAS, the City desires to implement those rules and regulations that protect health, life, and property and that preserve good government, order, and security of the City and its inhabitants; and WHEREAS, all statutory and constitutional requirements for the passage of this ordinance have been adhered to, including but not limited to the Open Meetings Act and Chapter 211 of the Local Government Code. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF GRAPEVINE, TEXAS: Ordinance No. 2024-007 3 AM23-08 Section 1. That all matters stated hereinabove are found to be true and correct and are incorporated herein by reference as if copied in their entirety. Section 2. That Section 12 of the Zoning Ordinance — "Definitions", is hereby amended to add definitions as follows: ADVERTISE the act of drawing the public's attention to a short-term rental in order to promote the availability of the residence for use as a short-term rental. Said advertising may be found in any medium, including but not limited to, newspaper, magazine, brochure, website, or mobile application. BOOKING SERVICE any reservation and/or payment service provided by a person or entity that facilitates a short-term rental transaction between an Owner and a prospective Occupant, and for which the person or entity collects or receives, directly or indirectly through an agent or intermediary, a fee in connection with the reservation and/or payment services provided for the short-term rental transaction. HOSTING PLATFORM a person or entity that participates in the short-term rental business by providing, and collecting or receiving a fee for, Booking Services through which an Owner may offer premises for an occupant on a short-term basis. Hosting Platforms usually, though not necessarily, provide Booking Services through an online platform that allows an Owner to advertise the premises through a website provided by the Hosting Platform and the Hosting Platform conducts a transaction by which potential occupants arrange their use and their payment, whether the would-be occupant pays rent directly to the Owner or to the Hosting Platform. HOUSEKEEPING UNIT A permanent residence as defined by Section 92.001 of the Property Code. Housekeeping unit specifically excludes any short-term rental, boarding house, lodging house, hotel, club, or any other use which is subject to the hotel occupancy tax imposed by Section 156.051 of the Texas Tax Code. LEASEBACK An arrangement where the seller of a home leases the home back from the purchaser. In a leaseback arrangement, the specifics of the arrangements are typically made prior or immediately after the sale of the home. MULTIFAMILY SHORT-TERM RENTAL The renting of a multifamily dwelling unit, or any portion thereof, for a period of less than 30 days. Ordinance No. 2024-007 4 AM23-08 OPERATOR Any person or entity who has control of the property or dwelling unit. RENTAL The renting, bartering, trading, letting or otherwise allowing the use of a dwelling unit, or portions thereof, for compensation. SHORT-TERM RENTAL The rental or offer for a rental of a dwelling unit, or any portion thereof, for a period of less than 30 days. This term does not include a leaseback. SINGLE-FAMILY SHORT-TERM RENTAL The renting of a single-family dwelling unit, or any portion thereof, for a period of less than 30 days. This term does not include a leaseback. Section 3. That Section 21 of the Zoning Ordinance — "Reserved", is hereby renamed to "Short-term Rentals" and amended as follows: Short-term Rentals A. Single-family short-term rentals are hereby prohibited. It shall be unlawful to advertise for a single-family short-term rental in the City. It shall further be unlawful to advertise for any short-term rental which does not have a valid short-term rental permit issued under this Section. B. Multifamily short-term rentals are allowed with the R-MF and RMF-2 Zoning Districts, subject to the issuance of a conditional use permit. C. A hosting platform or booking service shall require that all owners using the platform include a City -issued Permit number in any listing for a short-term rental on the platform and shall include a designated, mandatory field in its listing that requires a short-term rental host to input their City -issued short-term rental Permit Number before the host lists on the hosting platform's or booking service's website. The hosting platform or booking service shall remove a listing from the platform or booking service for a short-term rental after notification by the City that the short- term rental listing lacks a City -issued Permit, or the Permit is invalid, expired, or has been revoked. The notification must identify the listing(s) to be removed and state the reason for removal. The platform shall remove the listing(s) as soon as practicable but no later than ten (10) calendar days from such notice. Ordinance No. 2024-007 5 AM23-08 D. Short-term rentals must comply with the following conditions: 1. Short-term rentals are only allowed in multifamily complexes with at least fifty (50) units. 2. Short-term rentals are not allowed within the Historic Grapevine Township or within any Transit District Overlay. 3. Multifamily short-term rentals cannot be located in a complex whose property line(s) falls within five hundred feet of any property zoned for single-family use, including the R-5.0, R-7.5, R-12.5, R-TH, and R-20 Zoning Districts. 4. The operator of a short-term rental must be the owner of the property or the representative of the owner. 5. The operator of a short-term rental must obtain a permit from the City of Grapevine to operate the short-term rental. Said permits are non- transferable. 6. The permit application requirements for a short-term rental are as follows: a. A five -hundred -dollar ($500.00) application fee is required annually for the permit; and b. The name, physical/street address, mailing address, facsimile number, e-mail address, telephone number, date of birth, driver's license number, of the operator and representative; and C. If the operator is not an individual, the name, physical/street address, mailing address, facsimile number, e-mail address, and telephone number of the corporate representative with authority to act on behalf of the owner -entity and a copy of the documents filed with the Texas Secretary of State establishing the business entity and showing the entity is in good standing with the State of Texas; and d. The name and website link to all internet platforms on which the operator advertises or take reservations for lodging at the short-term rental at any time during a 12-month period from the date of application, including the identity of any booking service or hosting platform utilized for such short-term rental; and e. Designation of a responsible party who will be available at all times of the day or night for the short-term rental. Said responsible party must be available and able to respond to incidents at the short-term rental within sixty (60) minutes of being contacted; and Ordinance No. 2024-007 6 AM23-08 Total number of units and the unit numbers of the proposed short- term rentals; and g. Proof of general liability insurance in an amount of not less than one million ($1,000,000.00) per occurrence issued by a company or companies licensed to operate in the State of Texas with a minimum A- rating by AM Best throughout the term of the policy; and h. House rules that the operator requires the renters to follow which must follow this ordinance; and The operator must notify the City of Grapevine in writing of any material change in the information contained in the application for a license within seven (7) days of the change, including but not limited to a change of ownership; management; and advertisements hosted on internet platforms; and Identify all off-street parking available for and dedicated to such short-term rental(s); and k. Any other certifications that are deemed necessary to establish proof of compliance. 7. Multifamily short-term rentals can occupy no more than three percent (3%) of the available units in the complex. 8. During the time the short-term rental is taking place, the renters of the unit need to maintain a common household. Therefore, internal doors cannot have key locks that exclude renters of the property from any rooms. Everyone using the rental unit must have complete unrestricted access to the entirety of the rental. 9. The operator of the short-term rental is only allowed to use the property as a short-term rental for one hundred and eighty (180) days out of the calendar year. For one hundred and eighty (180) days the operator of the rental must utilize or maintain the property without the operation of a short- term rental. 10. The operator of the short-term rental cannot either directly or indirectly allow the property to be physically converted to add bedrooms. Once the property has been registered with the City as a multifamily short-term rental, that property cannot add any bedrooms. 11. A short-term rental cannot be occupied or utilized by more than two (2) people per bedroom or twelve (12) persons overall during any given rental period. Ordinance No. 2024-007 7 AM23-08 12. A short-term rental cannot be advertised to or host more than twelve (12) people staying overnight at the property with a maximum occupancy of two (2) people per bedroom. 13. The sound level at a short-term rental may not exceed sixty-three (63) decibels when measured at the dividing line or property line between the short-term rental unit or property and its neighboring property or unit. 14. There can be no outside congregation at a short-term rental between 10:00 p.m. and 9:00 a.m. 15. Each short-term rental must provide at least one off-street parking space each for the greater of: 1) each bedroom or room where sleeping quarters are provided; and 2) every two (2) guests in the short-term rental's advertised capacity. 16. On street parking is prohibited for any renters or guests of a short-term rental. 17. A short-term rental must be available for a minimum rental period of twenty- four (24) hours. 18. A short-term rental cannot be utilized for any special events such as banquets, bachelor or bachelorette parties, weddings, receptions, concerts, or any other similar events. 19. Permit Suspension or Revocation. The City reserves the right to suspend or revoke a short-term rental in the event the operator or address accrues three or more violations of this ordinance or any other ordinance of the City of Grapevine during a calendar year. A violation shall include any written notice of violation, citation, or other or other documentation of a violation. Additionally, the City may suspend or revoke a short-term rental permit in the event of any single, severe ordinance or criminal violation, including but not limited to criminal arrests. Such determinations may be made by the staff of the City of Grapevine. These remedies are in addition to all other remedies and enforcement options available to the City, including but not limited to the issuance of citations and/or the filing of suit pursuant to Chapter 54 of the Local Government Code. 20. In the event of the revocation of a short-term rental permit, the operator cannot apply for any additional short-term rental permits for two (2) years. 21. If a short-term rental permit is denied, suspended, or revoked, the applicant or operator can appeal to the City of Grapevine City Manager's office within thirty (30) days of receiving notice that that permit was suspended, revoked, or denied. The final decision of the City Manager's office can be appealed Ordinance No. 2024-007 8 AM23-08 to the Board of Zoning Adjustment. During any such appeal, the applicant shall not be authorized to operate a short-term rental. Section 4. That Subsection (C), Conditional Uses, of Section 22 of the Zoning Ordinance — "R-MF", Multifamily District Regulations, is hereby amended as follows: 11. Short-term Rentals. Section 5. That Subsection (1), Residential of Subsection (C), Conditional Uses, of Section 56 of the Zoning Ordinance — "Off -Street Parking Requirements", is hereby amended as follows: C. NUMBER OF PARKING SPACES REQUIRED: Multi -use projects shall have aggregate parking requirements. The minimum number of off-street parking spaces required shall be as follows: USE NUMBER OF PARKING REQUIRED FOR EACH SPACES Single-family dwellings: attached, detached, 2 Dwelling Unit townhouse, duplex Mobile home subdivision 2 Dwelling Unit Apartment, Condominiums, 2 Dwelling Unit triplex, four lex Motel or Hotel 1 parking space per guestroom for a hotel/motel with no restaurant or meeting facilities; 1.25 parking spaces per guestroom of a hotel/motel with restaurant or meeting facilities. The minimum number of parking spaces may be varied subject to and conditioned upon approval of a conditional use permit, pursuant to Section 48 of this ordinance and an approved site plan. At least one off-street parking space each for the greater Multifamily Short-term of: Rental 1) each bedroom or room where sleeping quarters are provided; and Ordinance No. 2024-007 9 AM23-08 2) every two (2) guests in the short-term rental's advertised capacity. Section 6. That the City of Grapevine staff is hereby directed to proceed with the development and implementation of a notice and enforcement initiative as to short- term rentals. Section 7. If any section, article, paragraph, sentence, clause, phrase or word in this ordinance, or application thereto any person or circumstance is held invalid or unconstitutional by a Court of competent jurisdiction, such holding shall not affect the validity of the remaining portions of this ordinance; and the City Council hereby declares it would have passed such remaining portions of the ordinance despite such invalidity, which remaining portions shall stay in full force and effect. Section 8. The fact that the present ordinances and regulations of the City of Grapevine, Texas are inadequate to properly safeguard the health, safety, morals, peace, and general welfare of the public creates an emergency which requires that this ordinance become effective from and after the date of its passage, and it is accordingly so ordained. Section 9. Any person violating any of the provisions of this ordinance shall be deemed guilty of a misdemeanor and upon conviction thereof shall be fined in a sum not to exceed Two Thousand Dollars ($2,000.00) for each offense. Each day on which a reported violation is committed will be deemed a separate offense. Section 10. All ordinances or any parts thereof in conflict with the terms of this ordinance shall be and hereby are deemed repealed and of no force or effect. PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF GRAPEVINE, TEXAS on this the 16th day of January, 2024. APPROVED: William D. Tate �dF 4®aMayor ATTEST: Ilk W1 ! it o o s Tara Brooks City Secretary Ordinance No. 2024-007 10 AM23-08 APPROVED AS TO FORM: Matthew CA Boyle City Attorney Ordinance No. 2024-007 11 AM23-08