Feb 04, 2025 Joint City Council and Planning Commission Meeting

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EVERYONE, IT IS

[Call to Order]

UH, I WILL ALSO, AT THIS TIME WITHOUT

[1. Conduct a public hearing to receive public comment on proposed amendments to City Code to make short-term rental (STR) use an additional (accessory) use for all residential uses in all zoning districts; to regulate STR owners, operators, and platforms as businesses; and to require STR platforms to collect and remit hotel occupancy taxes (HOT). Funding: This item has no fiscal impact.]

I'LL TALK MORE ABOUT THAT IN JUST A SECOND.

WITHOUT OBJECTION, THE PUBLIC HEARING IS NOW OPEN AND I WILL, UH, CALL ON THE CHAIR OF OUR AUSTIN PLANNING COMMISSION CHAIR, HEMPEL TO, UH, CALL TO ORDER THE PLANNING COMMISSION AND OPEN THE PUBLIC HEARING.

GOOD AFTERNOON, EVERYONE.

UM, NOW THAT WE HAVE A QUORUM PRESENT OF OUR PLANNING COMMISSIONERS, I'LL CALL THE PLANNING COMMISSION PORTION OF THIS MEETING, UH, OPEN AT 1:05 PM THANK YOU VERY MUCH.

AND THE PUBLIC HEARING IS NOW, IT'S A JOINT PUBLIC HEARING, AND FOR, UM, FOR THOSE THAT ARE WATCHING AND PAYING ATTENTION TO THIS, THE PURPOSE OF THIS JOINT HEARING BETWEEN THE AUSTIN CITY COUNCIL AND THE AUSTIN PLANNING COMMISSION IS TO REVIEW THE PROPOSED SHORT-TERM RENTAL REGULATIONS AND TO CONDUCT A PUBLIC HEARING REGARDING THOSE CHANGES.

UH, THE, THE NOTICE, UH, WENT OUT OF THIS HEARING TO ALL UTILITY ACCOUNT HOLDERS AND PROPERTY OWNERS IN THE CITY OF AUSTIN.

THE JOINT MEETING PROCESS IS ONE WAY FOR LOCAL GOVERNMENTS TO CONSIDER ZONING CHANGES AND TO NOTIFY PROPERTY OWNERS OF THOSE CHANGES.

IT'S ALSO A REQUIREMENT UNDER STATE LAW, AND THIS JOINT MEETING IS FOR UPDATES TO CHAPTER 25 OF THE LAND DEVELOPMENT CODE.

WE'RE GONNA START TODAY WITH A BRIEF PRESENTATION FROM CITY STAFF AND THEN MOVE ON TO THE PUBLIC HEARINGS THAT HAVE BEEN OPENED.

UH, COUNCIL MEMBERS AND COMMISSIONERS ARE ENCOURAGED TO ASK QUESTIONS THAT YOU MIGHT HAVE ABOUT, UH, DIFFERENT THINGS THAT WE HEAR TODAY DURING THE PUBLIC HEARING, OR THE PRESENTATION THAT WE HEAR BY GOING TO THE, UH, QUESTION AND ANSWER BOARD AND OR EMAILING KATIE POWERS IN THE CLERK'S OFFICE THAT'S SIMILAR TO THE WAY WE DID IT DURING THE HOME INITIATIVE.

THOSE QUESTIONS WILL BE POSTED ON A PUBLIC WEBSITE FOR THE COUNCIL, THE COMMISSION, AND THE PUBLIC TO REVIEW FOR THOSE THAT ARE PAYING ATTENTION TO THIS.

AND WE'LL HAVE A PRESENTATION JUST IN A SECOND.

AS, AS YOU MAY OR MAY NOT KNOW, THE CITY OF AUSTIN HAS A HISTORY WITH SHORT-TERM REGULATIONS.

AUSTIN ATTEMPTED TO REGULATE SHORT-TERM RENTALS USING LAND USE POLICIES AS A REGULATORY TOOL, AND THE PREVIOUS COUNCIL EVEN ATTEMPTED TO PROHIBIT STRS AT ONE POINT IN THE CITY.

THOSE REGULATIONS WERE CHALLENGED IN COURT AND FOUND TO BE UNLAWFUL.

NOW, THE CITY OF AUSTIN IS IN THE POSITION WHERE WE'RE REVISITING THOSE STR REGULATIONS.

IT'S IMPORTANT TO NOTE THAT WE'RE ALSO ENGAGING IN THIS PROCESS DURING A LEGISLATIVE SESSION, AND WE KNOW THAT THERE WILL BE BILLS FILED, UH, AND POTENTIALLY PASSED IN RELATIONSHIP TO SHORT-TERM RENTALS OR STRS.

WE WILL MONITOR THAT AND WE WILL HAVE A BETTER IDEA OF WHAT THE STATE PLANS TO DO AS WE CONTINUE, UH, THROUGHOUT THIS PROCESS.

ALSO, THIS WILL NOT BE THE LAST TIME THE PUBLIC HAS AN OPPORTUNITY TO ENGAGE ON THIS TOPIC.

THE PLANNING COMMISSION WILL MEET ON FEBRUARY 11TH, 2025 AT 6:00 PM HERE IN THE COUNCIL CHAMBERS, AND THE CITY COUNCIL WILL DISCUSS THE ORDINANCES AT THE FEBRUARY 27TH, 2025 MEETING.

WITH THAT, I WILL NOW TURN TO OUR ASSISTANT CITY MANAGER, UH, VERONICA CINIO FOR, UM, AN INTRODUCTION OF THE PRESENTATION.

WE'RE HAPPY TO BE HERE WITH YOU TODAY.

UH, THE MAYOR HAS, UH, DONE A GREAT JOB AT OUTLINING HOW WE GOT TO BE HERE TODAY.

I QUICKLY, ON BEHALF OF STAFF, WANTED TO THANK STAFF FOR THEIR HARD WORK AND, AND GETTING US HERE.

THEY'VE HAD A SERIES OF INFORMATION THAT THEY'VE SHARED WITH THE COMMUNITY.

THEY'VE ALSO HAD INFORMATION SESSIONS TO MAKE SURE THAT WE'RE COMMUNICATING THE POTENTIAL CHANGES THAT THE TWO BODIES WILL CONSIDER.

IN PARTICULAR, WE HAVE TWO STAFF MEMBERS HERE THAT ARE GONNA WALK YOU THROUGH THESE, THESE, THIS PRESENTATION AT THIS TIME, I'M GONNA TURN IT OVER TO TRISH LINK IN OUR LAW DEPARTMENT, AND DANIEL WARD, OUR ASSISTANT, UH, CODE DIRECTOR, ASSISTANT DEVELOPMENT SERVICES DIRECTOR.

THANK YOU.

THANK YOU MAYOR AND COUNCIL MEMBERS OF THE PLANNING COMMISSION.

I'M TRISH LINK WITH THE LAW DEPARTMENT, AND WE WILL GO THROUGH THIS PRESENTATION.

UM, I'M GOING TO, THERE'LL BE THREE PARTS.

UM, I'M GONNA WALK YOU THROUGH THE BACKGROUND.

MR. WARD IS GONNA TALK TO YOU ABOUT THE PROPOSAL ITSELF AND WHAT OUR NEXT STEPS ARE.

SO THE PURPOSE OF OUR BRIEFING HERE TODAY IS TO EVER TO EXPLAIN WHAT WE'RE PROPOSING.

AND THESE AMENDMENTS ARE INTENDED TO PROMOTE RESPONSIBLE STR OWNERSHIP TO HELP MANAGE AFFORDABILITY ISSUES AND TO PROVE, IMPROVE OUR HOTEL OCCUPANCY TAX COLLECTION.

SO MANY OF YOU PROBABLY KNOW, UM, IN

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IT WAS A STANDALONE USE, AND THEY CREATED TWO CLASSIFICATIONS.

ONE IS THE TYPE ONE, WHICH IS AN OWNER OCCUPIED STR.

SOMEONE ESTABLISHES THAT THEY ARE AN OWNER OCCUPIED STR BY PROVIDING US WITH, UH, EX EVIDENCE OF A HOMESTEAD EXEMPTION DRIVER'S LICENSE, OR THEIR VOTING REGISTRATION CARD.

THE OTHER TYPE THAT COUNCIL CREATED A TIME AS WELL, IS THE TYPE TWO, WHICH IS FOR NON-OWNER OCCUPIED COUNCIL, ALSO IMPOSED A DENSITY CAP FOR THOSE TYPE TWO STR.

SO ESSENTIALLY IT WAS, UH, ON THE CENSUS TRACK LEVEL, AND IT WAS A BELIEVE 3% CAP FOR THE NUMBER OF TYPE TWO SDRS YOU COULD HAVE.

ABOUT A YEAR LATER, COUNCIL ACTUALLY CREATED A THIRD, UH, CLASSIFICATION FOR STR, AND THAT'S FOR MULTIFAMILY DWELLINGS THAT ARE NOT OWNER OCCUPIED IN THAT ORDINANCE AS WELL, COUNCIL IMPOSED SOME DENSITY CAPS FOR THE TYPE THREE.

IF YOUR PROPERTY WAS ZONE IS ZONED NON-COMMERCIAL, THEN YOU COULD HAVE UP TO 3%.

IF THE PROPERTY IS ZONED COMMERCIAL, YOU COULD HAVE 25% OF YOUR UNITS, UH, USED AS STR.

UM, FEW YEARS LATER, UM, WE'RE LEARNING SOME HARD LESSONS ABOUT, UH, REGULATING AND ENFORCING STR REGULATIONS.

UM, SO COUNCIL IN 2015 TOOK UP THIS ISSUE OF SHORT-TERM RENTALS.

AGAIN, IN 2016, THE COUNCIL TOOK, UM, SOME STEPS, UH, THREE OF WHICH ARE PARTICULARLY IMPORTANT.

THE FIRST, FIRST WAS TO PHASE OUT EXISTING TYPE TWO STR.

IF YOU HAD A TYPE TWO STR LICENSE AT THAT TIME, YOU WERE GOING TO BE GIVEN FIVE YEARS TO CONTINUE OPERATING.

PROVIDED YOU, UH, MAINTAINED YOUR LICENSE, YOU COULD CONTINUE TO OPERATE.

THE NEXT IS THAT COUNCIL PROHIBITED NEW TYPE TWO STR, UM, IN RESIDENTIAL ZONING DISTRICTS.

AND LASTLY, COUNSEL, LIMITED OCCUPANCY AND REGULATED NOISE.

A COUPLE YEARS LATER, UM, THE CITY WAS SUED.

UH, THE THIRD COURT OF APPEALS RULED THAT THE CITY'S PHASE OUT OF EXISTING TYPE TWO STR AND OCCUPANCY LIMITS, UH, WERE INVALID.

WHAT WE'VE TAKEN FROM ZATARI IS THAT FOR EXISTING ST WE CANNOT ADOPT A BLANKET PROHIBITION AGAINST EXISTING ST.

ESSENTIALLY, OUR TOOLS ARE TO REVOKE LICENSES WHEN, WHEN WE HAVE IRRESPONSIBLE OWNERSHIP.

LET'S GO A FEW YEARS, UH, DOWN THE ROAD AGAIN.

AND THE CITY OF NEW ORLEANS WAS ALSO ADDRESSING SHORT-TERM RENTAL REGULATIONS, AND THEY ENDED UP IN SOME LITIGATION IN THE FEDERAL COURTS.

AND THE SPRING OF 2022, THE CITY OF NEW ORLEANS, UH, THE, SORRY, THE FIFTH CIRCUIT AND NEW ORLEANS RULED THAT THE CITY OF NEW ORLEANS REQUIREMENT THAT PROPERTY MUST BE HOMESTEADED TO OPERATE AN STR VIOLATED THE CONSTITUTION.

UH, ESSENTIALLY IT DISCRIMINATED AGAINST OUT-OF-STATE PROPERTY OWNERS.

UM, A FEW MONTHS LATER, COUNSEL, KIND OF, I THINK RECOGNIZING WHERE WE WERE KIND OF HEADED FROM A, UH, CHALLENGES WE WERE HAVING WITH STRS, THEY PASSED A RESOLUTION ASKING THE MANAGER TO, UH, CREATE AN ORDINANCE THAT WOULD PROHIBIT OUR STR PLATFORMS FOR, FROM COLLECTING FEES FROM UNLICENSED STR OWNERS.

UM, ABOUT A YEAR LATER, UM, UNDER THE THEORY FOR THE NEW ORLEANS CASE, UM, THE CITY OF AUSTIN WAS SUED AGAIN, UM, CHALLENGING OUR PROHIBITION ON NEW TYPE TWOS.

ESSENTIALLY, THE COURT RULED THAT THAT PROHIBITION, BECAUSE IT TREATED TYPE TWO DIFFERENTLY FROM TYPE ONES, WAS UNLAWFUL.

AND WHAT WE'VE LEARNED FROM THAT IS THAT THE CITY CANNOT LIMIT OWNERSHIP TO THOSE WHO RESIDE IN THE AUSTIN AREA.

IN FEBRUARY AND APRIL, OR THE SPRING OF 20 24, 3 CITY COMMISSIONS ACTUALLY TOOK UP THIS ISSUE OF, UH, SHORT-TERM RENTALS AS WELL.

THE TOURISM COMMISSION RECOMMENDED, UM, THAT THE COUNCIL EMPHASIZED SUPPORTING NEIGHBORHOOD ALIGNMENT AND PRESERVATION OF LOCAL CHARACTER AND PROMOTING RESPONSIBLE GROWTH AND PROPOSED PARTNERING WITH PLATFORMS TO, UM, IMPROVE OUR ACCOUNTABILITY, OUR, OUR RECOVERY OF HOTEL OCCUPANCY TAX.

ALONG WITH ACCOUNTABILITY FOR STR OWNERS IN THE SPRING OF 2024, THE ARTS AND MUSIC COMMISSIONS TOOK UP SIMILAR RECOMMENDATIONS, AND THEY PROPOSED IMPROVING AND STREAMLINING OUR LICENSING PROCESS AND COMPLIANCE PROCESS.

UM, AGAIN, ALSO WANTING THE PLATFORMS TO COLLECT AND REMIT HOTEL OCCUPANCY TAX.

SO THE PROPOSAL THAT, UH, WE HAVE CREATED IN THIS, UM, FOR THE SHORT TERM RENTALS ADDRESSES FIVE CITY GOALS, THREE COUNCIL GOALS IN PARTICULAR OF MAKING STR MORE COMPATIBLE WITH NEIGHBORHOODS.

UM, THAT WAS THE, THE PART OF THE IMPETUS FOR THE ZONING REGULATIONS, AND IT'S BEEN PART OF WHAT COUNCIL HAS BEEN CONCERNED ABOUT, TO ENSURE THAT INDIVIDUALS WHO LIVE NEXT TO STR, UM, ARE, UM, ABLE TO LIVE IN, UH, TO COEXIST WITH, UH, SHORT-TERM RENTALS.

THE SECOND WOULD BE TO RECOVER HOTEL OCCUPANCY TAX.

AND THE THIRD, UH, WOULD BE TO AVOID THE FURTHER EXACERBATION OF AFFORDABILITY ISSUES.

AND FOR COUNCIL, THAT'S BEEN A TWO-SIDED ISSUE.

ONE HAS BEEN FOLKS WHO OWN THEIR PROPERTY, BEING ABLE TO

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BUT THE OTHER SIDE, THE OTHER CONCERN THAT COUNCIL HAD WAS ENSURING THAT OUR HOUSING STOCK WAS USED FOR LONG-TERM HOUSING AND NOT HAVING EVERYTHING BECOME A SHORT-TERM RENTAL.

TWO OTHER GOALS THAT THE REGULATIONS WILL ADDRESS, WHICH ARE CITY GOALS GENERALLY, IS IMPROVING OUR COMPLIANCE RATES AND ENFORCEMENT OUTCOMES.

AND THE LAST, WHICH IS TO REGULATE CONSISTENT WITH THE RECENT COURT DECISIONS.

AND JUST AS A REMINDER FOR EXISTING STR, WE CANNOT HAVE A BLANKET PROHIBITION.

OUR OPTIONS ARE TO REVOKE LICENSES FOR BAD BEHAVIOR, AND THEN FOR ALL STR, UM, WE CANNOT LIMIT OWNERSHIP TO THOSE WHO RESIDE IN THE AUSTIN AREA.

AND NOW WE'LL TURN THIS OVER TO DANIEL.

GOOD AFTERNOON.

UH, I WILL NOW WALK US THROUGH, UH, THE PROPOSAL THAT WE'VE PUT FORWARD.

UM, WE'LL FOCUS ON FOUR KEY AREAS, UM, REGARDING THE NEW, NEW PROPOSED REGULATIONS, UH, LICENSE ELIGIBILITY, HOST REQUIREMENTS, PLATFORM REGULATIONS, AND ENFORCEMENT ENHANCEMENT.

UM, AS HAS ALREADY BEEN DISCUSSED A LITTLE BIT, UM, SHORT TERM RENTALS ARE CURRENTLY TREATED AS A SPECIFIC USE IN OUR LAND USE CODE.

UH, GIVEN THE IMPACTS FROM THE RECENT COURT DECISIONS ON SHORT TERM RENTAL REGULATIONS, WE ARE PROPOSING TO MOVE THE MAJORITY OF THE SHORT TERM RENTAL REGULATIONS FROM TITLE 25 DASH TWO, THE ZONING CODE TO TITLE IV, WHICH IS THE CITY'S BUSINESS CODE.

UM, THE PIECE THAT WILL REMAIN IN ZONING WOULD BE THAT ALL, UM, SHORT TERM RENTALS WOULD BECOME AN ACCESSORY USE FOR ALL RESIDENTIAL USES PROVIDED THAT THEY OBTAIN A LICENSE.

I THINK IT'S IMPORTANT TO UNDERSTAND THAT WITH THE RECENT COURT CASES WHILE ON PAPER, HAVING SHORT-TERM RENTALS BECOME AN ACCESSORY USE TO ALL RESIDENTIAL USES IS A BIG MOVEMENT ON PAPER.

I THINK IT'S IMPORTANT TO UNDERSTAND THAT WITH THE COURT CASES TAKEN INTO ACCOUNT TODAY AS IT STANDS, TYPE ONE, MEANING OWNER OCCUPIED SHORT-TERM RENTALS, AND TYPE TWO MEANING NON-OWNER OCCUPIED SHORT-TERM RENTALS ARE ALLOWED IN ALL ZONING DISTRICTS.

NOW, UM, ON PROPERTIES WITH THREE OR FEWER DWELLINGS, SO WE'RE TALKING SINGLE FAMILY CONTEXT, UH, WE WILL LIMIT LICENSE ELIGIBILITY TO INDIVIDUALS, INDIVIDUALS WE DEFINED IN THREE DIFFERENT WAYS.

AN INDIVIDUAL CAN BE A NATURAL PERSON, MEANING A HUMAN BEING, SO YOU OWN THE PROPERTY IN YOUR NAME.

UH, AN INDIVIDUAL CAN ALSO BE A TRUST PROVIDED THAT ALL BENEFICIARIES OF THE TRUST ARE HUMAN BEINGS.

AND THIRDLY, A COMPANY CAN OPERATE A SHORT TERM RENTAL IN SINGLE FAMILY CONTEXT, PROVIDED THAT ALL MEMBERS OF THE LLC ARE HUMAN BEINGS.

WHAT WOULD NOT BE ALLOWED WOULD BE FOR CORPORATIONS TO PURCHASE A PROPERTY UNDER ANOTHER LLC AND THEN OPERATE IT AS A SHORT TERM RENTAL IN SINGLE FAMILY CONTEXT.

ADDITIONALLY, IN THAT SINGLE FAMILY CONTEXT, AND I'M TALKING THREE, THREE OR FEWER UNITS ON ONE LOT, THERE WILL BE A RESTRICTION THAT IF SOMEONE WANTS TO OPERATE MORE THAN ONE STR IN AUSTIN, THEY WOULD HAVE TO SPACE THEIR SHORT TERM RENTALS AT LEAST A THOUSAND FEET APART FROM ANOTHER SHORT TERM RENTAL THAT THEY OPERATE IN MULTI-FAMILY CONTEXT, MEANING FOUR OR MORE DWELLING UNITS ON A PROPERTY, AN OWNER WOULD ALWAYS BE ABLE TO OPERATE AT LEAST ONE UNIT AS A SHORT-TERM RENTAL, BUT NOT MORE THAN 25% OF THE UNITS THAT THEY CONTROL ON THAT MULTIFAMILY PROPERTY.

SO BY WAY OF EXAMPLE, LET'S PRESUME THAT THERE'S A HUNDRED UNIT APARTMENT COMPLEX THAT IS ALL OWNED BY ONE SINGLE ENTITY.

UNDER THIS PROPOSAL, 25 OF THOSE UNITS COULD BE OPERATED AS A SHORT TERM RENTAL.

NOW LET'S TAKE THAT SAME A HUNDRED UNIT APARTMENT COMPLEX, BUT IT'S OWNED IN A CONDOMINIUM REGIME.

SO EACH INDIVIDUAL UNIT IS INDIVIDUALLY OWNED.

EACH INDIVIDUAL OWNER COULD CHOOSE TO OPERATE THEIR UNIT THAT THEY CONTROL AS A SHORT TERM RENTAL.

BUT IF AN INDIVIDUAL OWNER PURCHASES MORE THAN ONE UNIT IN THAT A HUNDRED UNIT APARTMENT COMPLEX, THEY WOULD BE BOUND BY THE 25% CAP.

SO IF THAT INDIVIDUAL OWNS EIGHT UNITS IN THAT COMPLEX, THEY WOULD ONLY BE ABLE TO OPERATE TWO OF THEM AS A SHORT-TERM RENTAL.

I WILL SPEAK A LITTLE BIT ABOUT THOSE WITH EXISTING LICENSES.

UM, AS HAS BEEN EXPLAINED

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SO THOSE THAT ALREADY HAVE AN ACTIVE SHORT TERM RENTAL LICENSE WILL BE ABLE TO KEEP AND MAINTAIN THAT LICENSE IN OPERATION PROVIDED THAT THEY RENEW TIMELY, DON'T BECOME A NUISANCE, AND THEIR OWNERSHIP STRUCTURE DOES NOT CHANGE.

BUT IF THEY HAVE A LICENSE TODAY, BUT THEY DON'T MEET THE NEW OWNERSHIP RESTRICTIONS, OR THEY DON'T MEET THE CURRENT THOUSAND FOOT RULE FROM ANOTHER SHORT TERM RENTAL THAT THEY CURRENTLY OPERATE, THE, THEY WOULD STILL BE ABLE TO CONTINUE TO OPERATE THOSE.

THEY ALREADY HAVE HOST REQUIREMENTS.

UM, TO OPERATE A SHORT TERM RENTAL, WE ARE GOING TO REQUIRE THAT THE HOSTS COMPLETE AN ONLINE TRAINING COURSE.

THEY'LL ALSO BE REQUIRED TO SUBMIT A SELF-CERTIFIED SAFETY CHECKLIST.

THIS WOULD BE A HIGH LEVEL LIFE SAFETY CHECKLIST TO ENSURE THAT CERTAIN CRITICAL PIECES OF SAFETY EQUIPMENT ARE OPERATING IN THE DWELLING.

I'M TALKING SMOKE DETECTORS WORK.

IF THEY HAVE GAS BURNING APPLIANCES, THERE'S A CARBON MONOXIDE DETECTOR PRESENT.

THE EGRESS WINDOWS IN THE BEDROOMS ARE OPERABLE AND OPEN.

UM, WE'D ALSO REQUIRE THAT HOSTS POST AND EVACUATION PLAN SHOWING THE EXITS AND THE LOCATION OF FIRE EXTINGUISHERS AND FIRE ALARMS IN THE KITCHEN OF THE DWELLING.

AND FINALLY, WE'D ALSO REQUIRE THAT A HOST MAINTAIN A MINIMUM OF $1 MILLION IN LIABILITY INSURANCE.

ADDITIONALLY, UM, THERE WILL BE A REQUIREMENT WHEN YOU RECEIVE A SHORT-TERM RENTAL LICENSE THAT THE OWNER WILL HAVE TO DESIGNATE SOMEONE AS A LOCAL CONTACT.

THAT LOCAL CONTACT CAN BE THE OWNER IF THEY WOULD MEET THE REQUIREMENT, BUT THAT LOCAL CONTACT HAS TO BE ABLE TO RESPOND EITHER TO A PHONE CALL OR PERHAPS EVEN BEING CALLED TO THE LOCATION IF NECESSARY WITHIN TWO HOURS.

THERE IS A SIMILAR REQUIREMENT IN OUR ORDINANCE TODAY AROUND THE LOCAL CONTACT.

UH, WHAT IS CHANGING WITH THIS IS THAT WE ARE PUTTING SOME TEETH BEHIND THE LOCAL CONTACT REQUIREMENT UNDER THIS PROPOSAL.

IF YOU FAIL TO RESPOND IN TWO HOURS, THAT BECOMES A REVOCABLE OFFENSE TO YOUR LICENSE PLATFORM REGULATIONS.

UH, ONE PROPOSAL IN IN THIS ORDINANCE DRAFT WOULD BE THAT PLATFORMS WOULD BE REQ, UH, REQUIRED OR WOULD HAVE TO REQUIRE THAT LICENSE NUMBERS BE DISPLAYED IN THE ADVERTISEMENT ON OUR SIDE OF THINGS THAT WE'D CALL THIS A MANDATORY FIELD, UM, WHERE THERE WOULD BE, YOU KNOW, IN THE TEMPLATE THAT PEOPLE USE TO BE, TO FILL OUT THEIR LISTING ON THE PLATFORMS, THERE WOULD BE A SPECIFIC DATA FIELD WHERE THEY COULD ENTER THE LICENSE NUMBER INTO.

UH, WE ARE NOT ASKING THE PLATFORMS TO VALIDATE WHETHER THAT LICENSE NUMBER IS ACTIVE OR NOT, JUST THAT THERE IS A FIELD PRESENT TO ENTER IT.

AND SO THAT A NUMBER, YOU KNOW, A LICENSE HAS TO BE ENTERED IN ORDER TO BE DISPLAYED ONLINE.

ADDITIONALLY, WE WILL BE ASKING THAT THE PLATFORMS COLLECT AND REMIT THE HOTEL OCCUPANCY TAX DIRECTLY TO THE CITY OF AUSTIN, UH, FOR ANY LISTINGS BOOKED THROUGH THEIR PLATFORMS. UH, THIS WOULD BE A CHANGE FROM TODAY.

RIGHT NOW THAT RESPONSIBILITY IS ON THE INDIVIDUAL PROPERTY OWNERS TO COLLECT AND REMIT THE HOTEL OCCUPANCY TAX TO THE CITY.

THIS WOULD SHIFT THAT REQUIREMENT TO THE PLATFORMS. UM, I THINK ANOTHER ELEMENT TO POINT OUT WITH THIS IS THAT WOULD SERVE TO HELP LEVEL THE PLAYING FIELD TO A CERTAIN EXTENT, WHERE TODAY YOU HAVE LICENSED SHORT-TERM RENTAL OPERATORS THAT DO PAY THAT HOTEL OCCUPANCY TAX.

BUT WE HAVE A, A MA WE THINK A MAJORITY OF SHORT TERM RENTAL OPERATORS THAT ARE UNLICENSED, AND BY AND LARGE, THEY ARE NOT PAYING THE HOTEL OCCUPANCY TAX TO THE CITY TO SUPPORT THOSE PROPERTY OWNERS.

THE PLATFORMS WOULD ALSO BE REQUIRED TO PROVIDE DOCUMENTATION TO THE HOST, AT LEAST QUARTERLY, THAT WOULD INDICATE THE AMOUNT OF HOTEL OCCUPANCY TAX THAT HAD BEEN COLLECTED ON THEIR BEHALF, AND THEN THAT REMITTED TO THE CITY.

ADDITIONALLY, UM, FOLLOWING SOME GUIDANCE FROM CITY COUNCIL IN DECEMBER OF 2022, THE PLATFORMS WOULD BE, IT WOULD BE UNLAWFUL FOR A PLATFORM TO COLLECT A FEE FROM AN UNLICENSED SHORT-TERM RENTAL.

TO AID IN COMPLIANCE PLATFORMS WOULD BE REQUIRED TO DE-LIST ADVERTISEMENTS UPON REQUESTS FROM THE CITY.

SO THIS WOULD BE SITUATIONS WHERE THE CITY FINDS AN ADVERTISEMENT THAT DOES NOT HAVE A VALID LI UH, LICENSE FOR ONE REASON OR ANOTHER.

UH, A NOTICE WOULD BE SENT FROM THE CITY TO THE PLATFORM PLATFORM WOULD THEN BE REQUIRED TO TAKE THAT ADVERTISEMENT DOWN UNTIL WHATEVER ISSUE WAS CURED.

UM, ALONG WITH THIS,

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UH, ONE ELEMENT THAT WE ARE PROPOSING TO ADD WOULD BE THE ABILITY FOR THE DIRECTOR TO IMPOSE MITIGATION REQUIREMENTS TO ADDRESS RECURRING ISSUES AT PROPERTY.

UH, THIS EXAMPLES OF THIS COULD BE OVERFLOWING TRASH CANS, FOR EXAMPLE.

UM, UNDER THE, UNDER THIS PROVISION AS A CONDITION OF RENEWAL, STAFF COULD, UH, REQUIRE THE LICENSE HOLDER TO EITHER UPGRADE TO A LARGER TRASH, CAN OBTAIN ADDITIONAL TRASH CANS.

UM, BUT THAT'S JUST ONE EXAMPLE OF WHAT A MITIGATION REQUIREMENT COULD BE AS A CONDITION OF RENEWING THAT LICENSE.

ADDITIONALLY, THE DIRECTOR WOULD HAVE THE ABILITY TO DENY AND REVOKE LICENSES WHEN AN OPERATOR HAS BEEN DESIGNATED AS A NUISANCE, UH, THE DIRECTOR WOULD HAVE THAT AUTHORITY TO DECLARE THE PROPERTY A NUISANCE.

WE COULD REVOKE THE LICENSE AND THEN SEND THAT D-LIST NOTICE TO THE PLATFORMS TO HAVE THAT HAVE THAT ADVERTISEMENT TAKEN DOWN.

ENFORCEMENT HA ON SHORT-TERM RENTALS HAS BEEN CHALLENGING.

UM, UP TO THIS POINT, I'LL WALK YOU THROUGH A FEW EXAMPLES OF THAT.

UM, ONE CHALLENGE WE HAVE INITIALLY IS JUST V UH, VERIFYING THE ADDRESS OF THE ADVERTISEMENT.

IF YOU'RE FAMILIAR WITH THE HOSTING PLATFORMS, YOU'LL RECOGNIZE THAT WHEN YOU LOOK AT A LISTING, THE A THE ADDRESS OF THAT PROPERTY IS NOT ANYWHERE DISPLAYED.

YOU DON'T FIND OUT THE ADDRESS UNTIL YOU ACTUALLY BOOK THE LISTING.

AND SO FROM THE CITY SIDE, WE, ON THE ENFORCEMENT SIDE, WE'RE DEPENDENT UPON THE PHOTOS AND THOSE ADVERTISEMENTS TO TRY TO FIGURE OUT WHAT THE REAL WORLD ADDRESS OF THAT LISTING IS.

AS WE'VE MOVED THROUGH THIS PROCESS, WE'RE FINDING MORE AND MORE OFTEN THAT THE PHOTOS PROVIDED TEND TO BE INTERIOR PHOTOS, PICTURES OF THE KITCHEN, PICTURES OF THE BATHROOM, WHICH MAKES IT EXCEPTIONALLY DIFFICULT TO DETERMINE WHAT THE REAL ADDRESS OF THAT PROPERTY IS.

ADDITIONALLY, PROVING UP OPERATION IS A CHALLENGE THAT REQUIRES A HUMAN TO HUMAN INTERACTION.

SO IF WE RECEIVE A COMPLAINT REGARDING A PROPERTY POTENTIALLY OPERATING AS A SHORT TERM RENTAL THAT DOES NOT HAVE A LICENSE, WE WILL RESPOND TO THE LOCATION.

WE'LL KNOCK ON THE DOOR AND WE'LL HOPE SOMEONE ANSWERS THE DOOR.

THAT'S THE FIRST BARRIER.

IF SOMEONE DOES ANSWER THE DOOR, UM, WE WILL ENTER INTO A CONVERSATION WITH THEM TO TRY TO DETERMINE IF THEY'RE THE PROPERTY OWNER OR A GUEST.

AND IF THEY DISCLOSE THEY'RE A GUEST, THEN WE'LL ALSO ASK, OH, GREAT, HOW LONG ARE YOU STAYING TO TRY TO DETERMINE IF THEY'RE LESS THAN 30 DAYS? IF THE GUEST WILL ADMIT TO US THAT THEY ARE NOT THE OWNER BOOKED FOR LESS THAN 30 DAYS, WE NOW HAVE THE EVIDENCE WE NEED TO MOVE FORWARD WITH ENFORCEMENT.

BUT UNTIL THOSE BOXES ARE CHECKED, WE CAN'T REALLY PROVE THAT SOMEONE'S OPERATING AS A SHORT TERM RENTAL.

UM, WE'VE ALSO FOUND THAT EVEN IN INSTANCES WHERE WE'VE BEEN ABLE TO MOVE FORWARD WITH ENFORCEMENT ACTIONS, WE SEE THAT A LOT OF TIMES THAT PROPERTY STILL CONTINUES TO OPERATE REGARDLESS.

UM, AND THEN WITH NUISANCE ISSUES WITH SHORT TERM RENTALS, WE'VE BEEN TAKING A PROACTIVE APPROACH IN TRYING TO ADDRESS SOME OF THESE CONCERNS.

UH, WE MAINTAIN A LIST OF PROPERTIES THAT WE WILL VISIT ON A THURSDAY AFTERNOON OR A FRIDAY AFTERNOON, TRYING TO CATCH GUESTS AS THEY CHECK IN SO THAT WE CAN HAVE A CONVERSATION WITH THEM TO REMIND THEM OF OUR LOCAL CODES AND ORDINANCES AND TO BE RESPECTFUL OF NEIGHBORS.

WHILE WE DON'T HAVE ACCESS TO DIRECT DATA THAT WILL TELL US HOW MANY SHORT-TERM RENTALS ARE OPERATING IN AUSTIN, WE KNOW WE HAVE ABOUT 2,200 THAT ARE LICENSED.

WE DO BELIEVE THE MAJORITY OF SHORT TERM RENTALS IN AUSTIN, HOWEVER, ARE OPERATING WITHOUT A LICENSE.

ONE BIT OF DATA THAT WE'VE SEEN IS THAT OF THE 3 1 1 COMPLAINTS WE RELE RECEIVE THAT ARE RELATED TO A SHORT TERM RENTAL, 94% OF THOSE INVOLVE A PROPERTY THAT IS UNLICENSED.

SO WHAT THAT SUGGESTS TO ME IS THAT LICENSED PROPERTIES TEND TO HAVE BETTER BEHAVIORS THAN UNLICENSED PROPERTIES.

NOW, THERE COULD BE OTHER ELEMENTS AT PLAY IN THAT, SO I CAN'T SAY THAT THAT'S A COMPLETE ABSOLUTE CERTAIN FACT, BUT THAT'S AT LEAST WHAT IT SUGGESTS IN MY OPINION.

UM, AND WE ALSO BELIEVE THAT IF WE CAN GET TO A PLACE WHERE WE HAVE BETTER COMPLIANCE WITH THE LICENSING REQUIREMENT, THAT WILL ALLOW OUR CODE COMPLIANCE TEAMS TO FOCUS MORE ON THE NUISANCE ISSUES THAT SOME OF THESE SHORT-TERM RENTALS CAN CREATE INSIDE NEIGHBORHOODS.

CURRENTLY, WE

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AND THAT'S WHERE A LOT OF OUR TIME IS SPENT.

AND SO IF WE CAN GET TO A MUCH BETTER PLACE FROM COMPLIANCE WITH LICENSING, I BELIEVE IT CAN TURN HOW WE CAN FOCUS OUR ENFORCEMENT EFFORTS AS WELL.

UH, TWO ADDITIONAL TOOLS THAT WE'RE LOOKING TO LEVERAGE AS WE MOVE FORWARD WITH THIS PROCESS.

UH, WE ARE IN THE FY 25 BUDGET CITY COUNCIL APPROVED MONIES FOR THE DEVELOPMENT SERVICES DEPARTMENT TO SEEK TWO DIFFERENT CONTRACTS, ONE OF WHICH WOULD ASSIST US IN THE LICENSING PROCESS.

THE LICENSING PROCESS FOR SHORT-TERM RENTALS IS CURRENTLY ONLINE, BUT IT'S NOT A SEAMLESS EXPERIENCE.

UM, WE'RE LOOKING FOR A THIRD PARTY VENDOR WHO CAN PROVIDE SOFTWARE THAT WILL MAKE THAT A MUCH MORE USER-FRIENDLY PROCESS, WHERE YOU WOULD HAVE USERS WOULD HAVE THEIR OWN USERNAME AND PASSWORD AND CAN LOG IN THEMSELVES.

THEY COULD UPDATE THEIR CONTACT INFORMATION IF THEY NEEDED TO WITHOUT EVER HAVING TO TOUCH STAFF TO MAKE THAT HAPPEN.

UM, ADDITIONALLY, WE'RE ALSO SEEKING A CONTRACT TO ASSIST US WITH ENFORCEMENT.

THERE ARE COMPANIES OUT THERE THAT USE DATA SCRAPING TECHNIQUES OFF OF THE MAJOR PLATFORMS, AND THEY ARE ABLE TO MUCH MORE EFFICIENTLY IDENTIFY THE ADDRESS OF THAT LISTING COMPARED TO HOW WE OPERATE.

AND SO THAT WOULD ALLOW US TO MORE RAPIDLY ADVANCE OUR ENFORCEMENT EFFORTS ON THOSE THAT ARE ADVERTISING WITHOUT A LICENSE.

UH, TO CHANGE DIRECTION A LITTLE BIT.

UH, COMMUNITY INFORMATION SESSIONS, WE'VE HOSTED FOUR DIFFERENT, UM, COMMUNITY INFORMATION SESSIONS.

THE FIRST ONE WAS A ZOOM CALL.

UM, THIS WAS HELD ON JANUARY 21ST, WHICH WAS THE ICE ICE DAY.

UM, WE ACTUALLY HAD 215 PEOPLE LOG ONTO THAT CALL.

UM, THE IN-PERSON MEETINGS WERE LESS ATTENDED.

UH, WE ENDED UP HAVING A TOTAL OF 36 PEOPLE ATTEND THE THREE IN-PERSON SESSIONS BETWEEN MONTOPOLIS RECREATION CENTER, THE PERMITTING AND DEVELOPMENT CENTER IN NORTH AUSTIN BY THE OLD HIGHLAND MALL, AND THEN THE CENTRAL LIBRARY DOWNTOWN.

IN THOSE SESSIONS, UM, WE FOUND SOME RECURRING THEMES SHOW UP.

NOW WE ARE STILL ACTIVELY RECEIVING CATEGORIZING AND SUMMARIZING FEEDBACK AS IT COMES IN 'CAUSE WE HAVE ALSO STOOD UP A PUBLIC INPUT WEBPAGE WHERE PEOPLE CAN GO TO LEARN MORE ABOUT THIS PROPOSAL AND PROVIDE FEEDBACK THROUGH THAT VENUE AS WELL.

UM, BUT IN THE INFORMATION SESSIONS, SOME OF THE MAIN THEMES WE SEE INVOLVE, UH, QUESTIONS ABOUT HOW THESE PROPOSALS WOULD, WOULD IMPACT EXISTING LICENSES, UM, HOW THE CITY WOULD ENFORCE THESE VIOLATIONS.

AND THEN ALSO WE'VE RECEIVED A LOT OF QUESTIONS REGARDING, UH, THE THOUSAND FOOT DISTANCE REQUIREMENT AND QUESTIONS REGARDING THE TWO HOUR RESPONSE TIME REQUIREMENT FOR THE LOCAL CONTACT.

FINALLY, TO SUMMARIZE THE TIMELINE FOR ACTION, UM, WE'RE ALL HERE NOW AT THE JOINT PLANNING COMMISSION AND COUNCIL MEETING, UH, AS HAS BEEN MENTIONED.

UH, WE WILL BE AT THE PLANNING COMMISSION ON FEBRUARY 11TH, AND THEN WE WILL RETURN TO CITY COUNCIL ON FEBRUARY 27TH.

THAT WOULD BE THE EARLIEST DATE AT WHICH COUNCIL COULD TAKE ACTION ON THIS PROPOSAL.

AND WITH THAT, I CONCLUDE OUR PRESENTATION.

THANK YOU VERY MUCH FOR YOUR TIME.

THANK YOU.

AND THANK YOU FOR A GOOD PRESENTATION.

AND, AND I I WANT TO REITERATE WHAT, UM, ASSISTANT CITY MANAGER SAID THANK YOU TO STAFF FOR ALL THE HARD WORK THAT'S GONE INTO THIS.

WE'RE, WE'RE ALL, BOTH THE PLANNING COMMISSION AND THE COUNCIL ARE VERY APPRECIATIVE OF THAT.

MEMBERS THAT WE HAVE ALREADY WITHOUT OBJECTION, OPEN THE PUBLIC, THE JOINT PUBLIC HEARING BETWEEN, UH, THE AUSTIN CITY COUNCIL AND THE PLANNING COMMISSION.

SO I'M GOING TO NOW TURN TO THE CITY CLERK'S OFFICE AND ASK THEM TO HELP US WITH THIS PROCESS.

UH, MEMBERS OF THE PUBLIC THAT ARE HERE TO SPEAK, UH, WE WELCOME YOU.

WE'VE PUT TWO PODIUMS IN PLACE SO THAT, UH, WILL MAKE THINGS MORE EFFICIENT FOR YOU.

IF YOUR NAME IS CALLED, UH, EVEN, EVEN IF YOU HAVE SOMEONE NAME WAS CALLED BEFORE YOU, PLEASE START MAKING YOUR WAY TO THE FRONT SO THAT YOU'LL BE READY TO GO.

AND IF THERE'S AN OPEN MICROPHONE, UH, FEEL FREE TO STEP TO THAT AND UTILIZE IT.

JUST STATE YOUR NAME FOR THE RECORD AND I'LL NOW TURN IT TO THE CITY CLERK.

THANK YOU, MAYOR.

WE'LL BEGIN WITH REMOTE SPEAKERS.

FIRST SPEAKER IS BARBARA MACARTHUR.

HI, MY NAME IS BARBARA MACARTHUR AND I LIVE IN DISTRICT SEVEN.

SEVERAL YEARS AGO WE HAD A SPEAKER FROM THE CITY COME TO THE AUSTIN NEIGHBORHOODS COUNCIL AND TALK ABOUT SHORT TERM RENTALS.

HE TOLD US THERE WERE AROUND 2000 REGISTERED STRS AND 18,000 UNREGISTERED STS.

HE ALSO SAID THAT ENOUGH ENFORCEMENT STAFF WASN'T AVAILABLE TO RESPOND TO CALLS ABOUT NUISANCE SUCH STS BECAUSE MOST OF THOSE CALLS WERE ON THE WEEKENDS AND IN THE EVENING.

SO

[00:30:01]

IF YOU HAVEN'T BEEN ABLE TO CONTROL THE UNLICENSED ST IN THE PAST, HOW WILL YOU BE ABLE TO CONTROL THEM NOW AND HOW WILL THAT NOT COST MONEY? THE FISCAL NOTE SAYS, THIS ITEM HAS NO FISCAL IMPACT.

HOW WILL YOU MONITOR THE STR ON WEBSITES? WILL THAT BE FREE? HOW YOU, WILL YOU REVIEW THE PRESCRIBED QUARTER REPORTS AND DOCUMENTING? WILL THAT BE FREE? HOW ARE YOU GOING TO ENFORCE THE RULES? A PERSON MAY NOT ADVERTISE OR PROMOTE OR ALLOW ANOTHER TO ADVERTISE A PROMOT, A SHORT-TERM RENTAL IF THE HOUSING UNIT IS NOT SUBJECT TO A VALID OPERATOR'S LICENSE.

AN OLDER CITY REPORT SAID THAT STR HAVE DOUBLED THE 9 1 1 CALLS AS REGULAR RESIDENCES DOESN'T.

9 1 1 RESPONSE COST MONEY.

AND WHAT ABOUT YOUR CONCERN FOR AFFORDABLE HOUSING, DO YOU THINK STR INCREASE AFFORDABLE HOUSING IN 2020? AN ACADEMIC PAPER ASSESSED THE EFFECTS OF AN STR BAN IN NEW ORLEANS AND FOUND THAT HOUSING PRICES DROPPED BY 30% IN REGULATED AREAS BORDERING THE POPULAR FRENCH QUARTER.

WITH ST EVERYWHERE, OUR COMMUNITIES ARE BEING SACRIFICED.

FOR PROFIT, THE ORDINANCE LIMITS THE USE OF AN AFFORDABLE UNIT AS A SHORT TERM RENTAL.

THIS MEANS YOU ARE WILLING TO RESTRICT STR, SO WHY NOT STUDY HOW YOU CAN FURTHER REDUCE THE PROLIFERATION OF STR TO RESTORE THESE UNITS TO OUR PERMANENT HOUSING STOCK? THIS ORDINANCE SEEMS MORE FOCUSED ON COLLECTED TAXES THAN BENEFITING THE COMMUNITY.

IF YOU CARE ABOUT AFFORDABLE HOUSING, YOU WON'T VOTE FOR THIS ORDINANCE THE WAY IT IS WRITTEN NOW.

THANK YOU VERY MUCH.

NEXT SPEAKER IS MICHAEL CURRY.

HI, MY NAME'S MICHAEL CURRY.

APPRECIATE THE OPPORTUNITY TO SPEAK TO YOU TODAY.

THE STATED RATIONALE FOR THESE AMENDMENTS IS TO BRING OUR SDR REGULATIONS IN LINE WITH RECENT COURT DECISIONS.

HOWEVER, WHAT YOU HAVE BEFORE YOU BADLY OVERSHOOT THE TARGET AND UNDERMINE CITY POLICY.

MANY OF YOU RAN ON THE POLICY OF INCREASING HOUSING IN THE CITY OF AUSTIN.

THIS SDR PROPOSAL IS ANTITHETICAL TO THAT POLICY.

THIS PROPOSAL WOULD, WILL REDUCE AVAILABLE HOUSING IN AUSTIN.

THE PROPOSAL PERMITS AN SDR IN EVERY RESIDENTIAL LOT.

EACH SDR ELIMINATES A HOME FOR AUSTIN FAMILIES AND RESIDENCE.

IF YOU ADOPT THIS, YOU ARE PRIORITIZING THE INTEREST OF TOURISTS OVER THE INTEREST OF AUSTINITES WHO LIVE AND WORK HERE AND WANT TO RAISE THEIR FAMILIES IN A RESIDENTIAL NEIGHBORHOOD.

IT IS IMPORTANT THAT THE CITY CONFORM ITS ORDINANCES AND PRACTICES TO THE LAW.

BUT THE THREE COURT DECISIONS REFERENCED IN THE BACKUP MATERIALS DO NOT DICTATE THE STR PERMISSIVE ORDINANCE YOU ARE PRESENTING.

THOSE CASES PROHIBIT THE DISTINCTION BETWEEN TYPE ONE AND TYPE TWO SDRS, INCLUDING THE SUN SETTING OF EXISTING TYPE TWO SDRS.

BUT THEY DO NOT HOLD THAT AN STR MUST BE ALLOWED ON EVERY SINGLE FAMILY LAW.

THESE COURT DECISIONS ALLOW LIMITATIONS ON SHORT-TERM RENTALS THAT THE CITY IS NOT AVAILING ITSELF OF.

FOR EXAMPLE, THE CASES DISCUSS THE ABILITY TO PLACE CAPS ON THE NUMBER OF SDRS, AND IT SEEMS CLEAR THAT THE CITY COULD LIMIT THE AVAILABILITY OF SDRS FOR THOSE WHO PURCHASE, UH, PROPERTY AFTER THIS ORDINANCE GOES INTO EFFECT, THE CITY'S GIVEN THE IMPRESSION THAT THIS PROPOSED ORDINANCE IS THE RESULT OF CONSTRAINTS PLACED BY THESE COURT DECISIONS.

WHEN IT IS NOT.

THE ORDINANCE WORKS HARD TO MAKE SURE THE CITY CAN COLLECT HOTEL OCCUPANCY TAXES AND MAKES OPERATORS MORE RESPONSIVE, WHICH ARE WHERE THE GOALS.

THANK YOU.

SPEAKING.

NEXT SPEAKER IS JACQUELINE TURY.

GOOD AFTERNOON CHAIR CITY COUNCIL MEMBERS AND PLANNING COMMISSION MEMBERS.

MY NAME IS JACQUELINE TUR AND I'M THE REGIONAL MANAGER OF GOVERNMENT AFFAIRS FOR EXPEDIA GROUP.

HERE TO SPEAK TO THE PLATFORM REGULATIONS IN THESE ORDINANCES.

ON BEHALF OF THE EXPEDIA GROUP FAMILY OF BRANDS, INCLUDING LEADING VACATION RENTAL SITE VRBO.COM, I'D LIKE TO THANK YOU CITY LEGAL STAFF AND THE CODE DEPARTMENT FOR YOUR LEADERSHIP IN DRAFTING EFFECTIVE SHORT-TERM RENTAL REGULATIONS FOR THE CITY OF AUSTIN.

WE WERE GRATEFUL FOR THE EXTENSIVE STAKEHOLDER ENGAGEMENT THE ENTIRE TEAM HAS DONE SO FAR THROUGHOUT THIS PROCESS.

VRBO IS PROUD TO BE HEADQUARTERED IN AUSTIN AND ALONG WITH OTHER EXPEDIA GROUP BRANDS.

PROUD TO PLAY A KEY ROLE IN AUSTIN'S ECONOMY BY HELPING TRAVELERS RESEARCH PLAN AND BOOK A WIDE RANGE OF LODGING, AIRLINE AND CAR RENTAL AND DESTINATION EXPERIENCES IN THE CITY.

WE ENCOURAGE RESPONSIBLE SHORT-TERM RENTAL REGULATIONS BECAUSE A DIVERSITY OF LODGING OPTIONS IS AN INTEGRAL PART OF ANY THRIVING TOURISM

[00:35:01]

WE BELIEVE A PROFESSIONAL, WELL-REGULATED MARKET FOR SHORT-TERM RENTALS BENEFITS OUR PARTNERS TRAVELERS AND NEIGHBORS.

EXPEDIA HAS WORKED WITH COUNTLESS GOVERNMENTS TO CRAFT AND IMPLEMENT REGULATIONS THAT MEET LOCAL DE WHILE MAXIMIZING THE BENEFITS OF TOURISM ACTIVITY IN COMMUNITIES ACROSS TEXAS AND AROUND THE GLOBE.

WHILE EVERY COMMUNITY IS DIFFERENT SHORT-TERM RENTAL REGULATIONS THAT ACHIEVE THE HIGHEST LEVEL OF COMPLIANCE ACROSS THE COUNTRY, GENERALLY SHARE THE SHARES IN FRONT OF YOU AS DRAFTED.

THE REQUIREMENTS FOR SHORT RENTAL HOMEOWNERS OPERATOR PLATFORM ARE CLEAR AND WITHOUT PROHIBITIVE BARRIERS TO COMPLIANCE.

AND WE ARE HOPEFUL THAT THE DRAFT AND ATTACHMENT A IS CONSIDERED FAVORABLY BY BOTH THE PLANNING COMMISSION AND THE CITY COUNCIL.

WE ARE ALSO PREPARED TO BECOME TAX RESPONSIBLE IN THE CITY OF AUSTIN.

WE HAVE SOME REMAINING CONCERNS AND REQUESTED CHANGES TO THE TAX LANGUAGE THAT WE ARE WORKING ON WITH STAFF AT THIS TIME.

AS STATED BEFORE, WE APPRECIATE THE EFFORT IN MAKING RESPONSIBLE BALANCED SHORT-TERM RENTAL ORDINANCES AND WE GREATLY APPRECIATE NOT ONLY THE WORK THAT HAS GONE INTO THESE IN FRONT OF YOU, BUT ALSO THE OPPORTUNITY TO PROVIDE FEEDBACK.

THANK TIME HAS PROCESS.

THANK YOU MAYOR.

WE'LL NOW WE WILL NOW GO TO IN-PERSON SPEAKERS.

FIRST ON DECK IS MICHAEL WAYLAND, FOLLOWED BY RYAN SAUNDERS, CHRISTOPHER PAGE, BRAD MASSENGILL AND RO ROLAND ROBINSON.

IF YOUR NAME HAS BEEN CALLED, PLEASE TAKE YOUR PLACE AT THE PODIUM.

THANK YOU.

UH, MICHAEL WHALEN ON BEHALF OF EXPEDIA GROUP, WHICH INCLUDES AS YOU JUST AS WAS JUST NOTED, UH, THE LEADING VACATION RENTAL SITE, VRBO.COM.

UH, FIRST AND FOREMOST, I WOULD LIKE TO THANK DANIEL WORD FOR REALLY CONDUCTING A ROBUST STAKEHOLDER PROCESS FOR MONTHS, UH, THAT RECEIVED MEANINGFUL FEEDBACK, WHICH WAS TRANSLATED ULTIMATELY INTO A WORKABLE ORDINANCE.

UM, ALSO A THANK YOU TO PATRICIA LINK WHO COMPILED THE FEEDBACK, THE PRECEDENTS FROM OTHER CITIES AND CASE LAW TO PREPARE THE ORDINANCE THAT IS BEFORE YOU TODAY.

OF COURSE, THERE MAY BE AND THERE PROBABLY WILL BE ADDITIONAL TWEAKS BASED ON CONTINUING FEEDBACK.

UH, EXPEDIA HAS BEEN CLEAR A WELL-REGULATED MARKET FOR SHORT-TERM RENTALS BENEFITS EVERYONE THE HOSTS, TRAVELERS, NEIGHBORS AS, UH, JACQUELINE TURAY JUST NOTED.

THE ORDINANCE PRESENTED TODAY CONTAINS THE CORE CHARACTERISTICS NEEDED TO ACHIEVE THE HIGHEST LEVEL OF COMPLIANCE AND ENFORCEMENT, WHICH INCLUDES THE MANDATORY FIELD FOR HOSTS TO LIST PERMIT NUMBERS.

AND ON THE PLATFORM SIDE, THE MANDATORY TAKEDOWN PROVISIONS WHICH REQUIRE THE PLATFORMS, ALL PLATFORMS TO REMOVE HOSTS FROM WEBSITES UPON PROPER NOTICE FROM THE CITY.

IT IS OF COURSE, IMPORTANT THAT THE ORDINANCE CONTAIN PLATFORM PROVISIONS SO THAT ALL PLATFORMS HAVE TO COMPLY.

THIS WILL HELP WITH, AS I MENTIONED, UNIFORMITY AND ENFORCEMENT BECAUSE SO MANY OTHER JURISDICTIONS NOW HAVE MANDATORY FIELDS FOR PERMITS, THIS REQUIREMENT IS NOT ONE THAT IS EXPECTED TO CREATE A BURDEN FOR THE PLATFORMS. EXPEDIA IS ALSO PREPARED TO COLLECT AND REMIT HOTEL OCCUPANCY TAX AS IT IS DONE FOR YEARS ON BEHALF OF THE STATE OF TEXAS.

WE HAVE SHARED SOME CONCERNS, AS WAS MENTIONED WITH THE CITY ON THE LANGUAGE, WHICH DIFFERS FROM HOW OTHER JURISDICTIONS MANAGE THE COLLECTION AND REMITTANCE PROCESS.

AND I EXPECT THAT AN UPDATED DRAFT WILL, UH, BE SEEN ONCE ADDITIONAL FEEDBACK FROM OTHERS IS RECEIVED.

THANK YOU SO MUCH.

YOU WANT ME TO GO AHEAD AND START? PLEASE JUST STATE YOUR NAME FOR THE RECORD.

RYAN SAUNDERS.

I'M A RESIDENT IN DISTRICT THREE.

UM, I OWN A TWO STORY DUPLEX UPSTAIRS DOWNSTAIRS.

DUPLEX IN MY UPSTAIRS UNIT IS OPERATED AS A SHORT-TERM RENTAL, AND I'M HERE TO SPEAK AGAINST THE INCREASED REGULATIONS OF SDRS BECAUSE I THINK IT'S A HYPOCRISY OF HOW THE CITY HANDLES THE INTERACTION BETWEEN BUSINESSES AND RESIDENTS AND HOW YOU'RE TARGETING SHORT-TERM RENTALS.

UM, I AVERAGE THAT I HAVE 128 VISITORS TO MY HOUSE EACH YEAR, AND IF THEY SPEND $50 A PIECE AT A LOCAL BUSINESS, IT'LL CONTRIBUTE $27,000 TO SMALL LOCAL BUSINESSES VERSUS A HOTEL VISITING STARBUCKS AND NATIONAL CHAINS.

AND I'M ALSO MEETING THE CULTURAL OR THE, UM, STANDARDS OF THE COMPATIBILITY WITH A, I HAVE A HUNDRED YEAR OLD HOUSE THAT I INVESTED HUNDREDS OF THOUSANDS OF DOLLARS INTO RENOVATING AND UPKEEPING.

UM, THE HYPOCRISY OF HOW THE CITY TREATS BUSINESSES VERSUS RESIDENTIAL AND THEN TARGETING SDRS.

THERE'S A VACANT LOT THAT OPERATES AS A FOOD TRUCK PARK AND THE CITY DOESN'T REQUIRE ANY, ANY PERMITTING, DOESN'T CONSIDER THAT A CHANGE OF USE YET.

YOU'RE APPLYING AN ACCESSORY USE FOR AN SDR.

UM, YOU'RE THREATENING TO OR ASKING TO HAVE THE PERMISSION TO DE PLATFORM PEOPLE WITHOUT ANY SPECIFICATIONS OF WHY.

AND THEN OPENING MITIGATIONS THAT ARE BASICALLY OPENING UP TO SAY THAT YOU COULD FIND AND REGULATE AN SDR IN OR OUT OF EXISTENCE.

YOU'RE ALSO REQUIRING 1 MILLION IN LIABILITY INSURANCE FOR SD OWNERS.

AND THE CITY HAS GIVEN ME BY EMAIL THAT NEITHER FOOD TRUCKS, BARS, OR RESTAURANTS HAVE ANY

[00:40:01]

AND THEN IF YOU'RE ALSO GONNA TRY TO MAINTAIN THE QUALITY OF LIFE FOR RESIDENTS, AND YOU HAVE TO LOOK AT THE ABANDONED BUILDINGS THAT ARE COVERED IN GRAFFITI, BROKEN GLASS AND WOOD THAT YOU SAY IS PRIVATE PROPERTY.

BUT THEN YOU'RE GONNA WANNA INTERFERE WITH MY PRIVATE PROPERTY AND TELL ME WHAT I CAN DO WITH MY PRIVATE PROPERTY.

AND THEN, UM, THE HARM REDUCTION CLINIC IS LOCATED ON OUR STREET.

AND COUNCILMAN MEMBER FUENTES GOT INVOLVED IN, I SAID I WAS ONLY TWO MINUTES.

I ONLY HAVE THREE MINUTES.

NO, YOU HAVE TWO MINUTES, BUT THANK YOU SIR.

APPRECIATE YOUR BEING HERE AND YOUR COMMENTS.

UH, CHRIS PAGE FROM DISTRICT ONE.

UM, I THINK MANY OF YOU WERE ELECTED OR APPOINTED BASED ON THIS THEORY OF INCREASING HOUSING SUPPLY AND MAKING HOUSING MORE AFFORDABLE, UH, AS IT WAS, YOU KNOW, DESCRIBED TO THE PUBLIC.

THERE'S CURRENTLY ABOUT 16,000 UNITS IN OUR MARKET THAT ARE ALREADY BUILT AND NOT BEING USED FOR HOUSING.

THE MAJORITY OF THOSE 16,000 ARE ALSO NOT PAYING HOTEL, HOTEL OCCUPANCY TAXES.

AND I DON'T THINK THEIR MISCONDUCT JUSTIFIES THE POWERFUL VOICE THAT THEY'RE BRINGING TODAY OR HAVE BROUGHT IN THE MONTHS PREVIOUS IN DEFINING THE POLICY THAT'S GONNA REGULATE THEIR INDUSTRY.

IF YOU WANT TO INCREASE AFFORDABLE HOUSING, UH, YOU SHOULD THINK ABOUT A RESIDENT THAT WAS IN MY NEIGHBORHOOD.

SHE WAS A RENTER FROM A LARGE CORPORATION THAT OWNS A LARGE REAL ESTATE PORTFOLIO.

SHE WAS DE FACTO EVICTED WHEN THEY ARBITRARILY INCREASED HER RENT, TURNED HER HOME INTO SHORT-TERM RENTAL.

SHE NO LONGER LIVES IN THE CITY.

HER KIDS NO LONGER LIVE IN THE CITY, AND OUR COMMUNITY NOW MISSES HER DEEPLY.

BUT THAT HOUSE HAS SAT VACANT SINCE THEN.

AND IN FACT, IN THE YEARS AFTERWARDS, UH, I THINK WITHIN ABOUT THE LAST TWO YEARS, THERE WAS A SHOOTING THERE AT ONE OF THEIR UNLICENSED SHORT-TERM RENTAL PARTIES THAT WAS GOING ON.

A MINOR DIED, TWO OTHER PEOPLE WERE SHOT.

IT'S A MESS.

THE HOME'S NEXT TO IT DON'T LIKE WHAT'S GOING ON THERE, BUT CODE ENFORCEMENT DOESN'T SHOW UP AT NIGHT BECAUSE THEY'RE NOT STAFFED FOR IT.

YOU SHOULD THINK ABOUT WHO'S GONNA PAY FOR THESE PROBLEMS. YOU SHOULD THINK ABOUT MANDATORY DISCLOSURE OF THE DATA BECAUSE IT'S CHEAP FOR THESE COMPANIES TO PRESS A BUTTON AND GIVE YOU THAT DATA.

I'D LIKE TO KNOW IF ANYONE ON THIS COUNCIL OR IN THE CITY HAS REQUESTED THAT DATA AND IF IT'S BEEN REFUSED, WHO REFUSED IT.

IF YOU'RE SERIOUS ABOUT AFFORDABLE HOUSING, YOU DON'T OFFER THE OPPORTUNITY FOR CORPORATIONS TO MAKE EVERY NEIGHBORHOOD INTO A DECENTRALIZED HOTEL.

THANK YOU, SIR.

HELLO, I'M ROLAND ROBINSON, DISTRICT FOUR.

UH, FIRST TIME AT A CITY COUNCIL MEETING.

I MOVED TO AUSTIN OUTTA SCHOOL IN 2005.

UH, MY FIRST APARTMENT AT 51ST AND LAMAR WAS $300 A MONTH.

TODAY $300 WON'T COVER THREE DAYS OF MY PROPERTY TAXES.

NOT KIDDING.

YOU DO THE MATH.

IT'D BE AN UNDERSTATEMENT TO CALL THIS MASSIVE OVERREACH.

A HUGE WIN FOR CORPORATE HOSPITALITY AND IT'S LOCKING OUT LOCALS.

UH, WHAT HAPPENED TO KEEP AUSTIN WEIRD? MY STR HAS BEEN FULLY LICENSED FOR 11 YEARS.

IT'S A 400 SQUARE FOOT A DU IN MY BACKYARD THAT HELPS TO PAY FOR ALL OF MY TAXES.

UH, I TAKE PRIDE IN THE WORK THAT IT TAKES TO GIVE SOMEONE A SAFE AND COMFORTABLE PLACE TO SPEND THE NIGHT FROM OUT OF TOWN.

I'VE HOSTED THOUSANDS OF PEOPLE FROM HUNDREDS OF COUNTRIES OVER 11 YEARS, ALMOST SINCE THE VERY BEGINNING OF THIS PROGRAM.

I'M ONE OF THE OLDEST SUPERHOSTS ON AIRBNB, BY THE WAY.

UH, 80 CENTS OF EVERY DOLLAR THAT I MAKE STAYS RIGHT HERE IN AUSTIN.

MORE IMPORTANTLY, IT HELPS ALL OF US CONTINUE TO SURVIVE TO LIVE HERE IN AUSTIN.

A CITY THAT WE LOVE REGULATIONS AND RESTRICTIONS LIKE THESE PUSH OUT LOCALS.

THEY PUSH OUT MOM AND POPS THAT ARE BARELY HANGING ON TO THE AUSTIN DREAM.

THESE AMENDMENTS WILL FUNNEL OUR HER HARD EARNED DOLLARS TO HOTELS.

WE COULD ALWAYS JUST CHANGE THE CITY TAGLINE TO KEEP AUSTIN CORPORATE.

I NEVER THOUGHT I'D SEE THE DAY WHEN PEOPLE STARVE ON THE STREETS AND OUR REPRESENTATIVES HERE ARE TRYING TO TAKE MY JOB AND TAKE OUR JOBS AWAY.

THIS IS A JOB FOR ME.

I EARN AN

[00:45:01]

THIS WOULD PUT ME OUT OF BUSINESS.

I READ THIS.

THIS IS RIDICULOUS.

WE NEED YOU TO FIGHT FOR US, NOT AGAINST US.

THANK YOU, SIR.

THANK YOU.

I GOTTA GET BACK TO WORK.

BRAD MASSENGILL, CRAIG NASER, MONICA GUZMAN, FRANCIS SHEHAN, DARRELL GUEST, ROSE BALLARD.

MS. KIN, I PROMISE WE'RE GONNA GET YOUR NAME RIGHT.

ONE OF THESE DAYS IT WAS CLOSED.

GOOD AFTERNOON, MAYOR COUNSEL.

I'M MONICA GOSMAN, POLICY DIRECTOR AT GO AUSTIN BAO AUSTIN.

READING A RESIDENT STATEMENT.

WE APPLAUD THE AUSTIN CITY COUNCIL'S EFFORT TO CREATE PLATFORM ACCOUNTABILITY FOR SHORT-TERM RENTALS, STR IN AUSTIN BY REQUIRING THE LISTING PLATFORM TO POST THE STR LICENSE AND TO COLLECT ALL APPLICABLE HOTEL OCCUPANCY TAXES.

THANK YOU.

THE BIGGEST ISSUES WE FACE IN OUR QUIET, FRIENDLY, DIVERSE, AND PEACEFUL NEIGHBORHOODS ARE NOISE FROM PEOPLE AND VEHICULAR TRAFFIC AT ALL HOURS OF THE DAY AND NIGHT AND OVERFLOWING TRASH.

SINCE THE CITY OF AUSTIN HAS DECIDED THAT HOTELS, MOTELS, CONVENTION CENTERS IN A SMALL RESIDENTIAL HOME IS THE WAY FORWARD, NEIGHBORS OF THESE ST MUST HAVE RECOURSE FOR IMMEDIATE RESOLUTION OF ALL SUCH DISTURBANCES.

HOTELS ARE REQUIRED TO HAVE A 24 7 MANAGER ON DUTY TO WHICH GUESTS CAN REPORT COMPLAINTS AND GET IMMEDIATE ACTION.

AUSTIN HAS NO SUCH MECHANISM FOR ST IT IS VITAL FOR SDR NEIGHBORS TO HAVE A 24 7 MECHANISM FOR WHICH WE CAN GET IMMEDIATE ACTION, ESPECIALLY FOR NOISE COMPLAINTS.

OH, I THINK I JUST ALREADY READ THAT.

WE HAVE NO RECOURSE.

NEITHER THE AUSTIN POLICE DEPARTMENT NOR CODE ENFORCEMENT WILL SEND SOMEONE OUT IN THE MIDDLE OF THE NIGHT WHEN LOUD MUSIC, LOUD DRUNKEN PEOPLE OR LOUD CARS IN STREET RACING WAKE US UP ALONG WITH OUR CHILDREN AND PETS IN THE MIDDLE OF THE NIGHT, DISTURBING OUR SLEEP AND DISTURBING OUR PEACE.

NEIGHBORS OF THE STR SHOULD NOT HAVE TO FUNCTION AS MANAGEMENT CODE AND LAW ENFORCEMENT OVER THE STR NEXT DOOR, BUT THAT IS OUR REALITY.

PLEASE DO THE RIGHT THING AND CREATE ONE TOUCH REPORTING HOTLINE APP OR ANOTHER MECHANISM TO ENABLE US AT ALL HOURS TO GET IN TOUCH WITH THE STR MANAGER, CODE ENFORCEMENT OR A PD FOR SWIFT AND TIMELY ENFORCEMENT.

WE ARE TIRED, WEARY, AND SICK FROM HAVING OUR LIVES UPENDED BY A HOTEL AND CONVENTION CENTER.

TWO DOORS DOWN IN A 1500 SQUARE FOOT, THREE BEDROOM HOME.

THANK YOU DEBORAH AND BRUCE BLOOM, DISTRICT FOUR.

THANK YOU.

HELLO, CRAIG NAER.

UM, I'M ON THE ZERO WASTE ADVISORY COMMISSION DISTRICT SEVEN.

TOO MANY.

MY OBSERVATIONS ARE THAT TOO MANY SHORT-TERM RENTALS DESTABILIZE NEIGHBORHOODS.

NEIGHBORHOODS GROUPS ARE STRUGGLING ALREADY BECAUSE OF INCREASED COSTS.

PEOPLE HAVE LESS TIME TO ATTEND THEM AND YOU GET MORE PEOPLE IN NEIGHBORHOOD.

UH, MORE SHORT-TERM RENTALS.

THERE'S FEWER PEOPLE WHO MAY HAVE THE TIME AND INTEREST TO BE ON A NEIGHBORHOOD GROUP.

UM, HOTEL OCCUPANCY TAX.

WHAT USE IS THAT IN A NEIGHBORHOOD? WE NEED MORE PARKS AS THAT SHOULD GO DOWN TO THE NEW CONVENTION CENTER.

I MEAN, I DON'T UNDERSTAND HOW THAT'S A PLUS.

UM, I HAVE BEEN, UH, AWARDED BY KEEP AUSTIN BEAUTIFUL FOR CREEK CLEANUPS.

WE HAVE A LOT OF TRASH IN OUR CREEKS.