They say the proposed law also sets a precedent for issues that impact local communities, giving Lansing the authority to dictate local laws. It also caps the total number of short-term rentals as a percentage of all residences, but officials say the proposed 30% cap is unreasonable for small communities. THE PEOPLE OF THE STATE OF MICHIGAN ENACT: Sec. In addition, the citys infrastructure water, sewer and other utilities were built for a year-round population. Proponents of the bill argue that property owners have the right to do what they want with their property, including renting it out as a vacation home without cumbersome regulations. Use of and/or registration on any portion of this site constitutes acceptance of our User Agreement (updated 4/4/2023), Privacy Policy and Cookie Statement, and Your Privacy Choices and Rights (updated 1/26/2023). Amends 2006 PA 110 (MCL 125.3101 - 125.3702) by adding sec. Whats next in the fight over regulating short-term rentals, After years of misogyny, racism and threats in Lansing,, Hes doing their bidding: Critics say Republicans use. The city has offered incentives to developers to build more affordable units, but even those are becoming short-term rentals in commercially zoned areas. The legislation prohibits local municipalities from adopting zoning regulations that outright ban short-term rentals or make them subject to a special-use or conditional-use permit. "Bill 4722 is not a thoughtful solution to a complicated issue that needs to balance residential safety, fair competition and property rights it is a tone-deaf handout to mostly out-of-state corporations that will erode neighborhoods, increase crime and cost jobs.". City officials on Monday agreed that they do not want to ban short-term rentals, but to instead prioritize local control and the prosperity of full-time residents. Metcalf lives in the area and has several short- and long-term rentals in and around Suttons Bay, which he manages and maintains. 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. Were the ones that live here and try to make it a livable place for everybody and set the rules and priorities.. 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. PDF HB-4722, As Passed House, October 27, 2021 - Michigan Legislature Michigan Advance maintains editorial independence. The city allows short-term rentals in specific zoning districts and requires out-of-town owners to designate a local agent to manage the rental and address problems. on new short-term rental licenses until Dec. 13. Our stories may be republished online or in print under Creative Commons license CC BY-NC-ND 4.0. Local elected officials know better what is good for a small community such as ours rather than it being dictated to us out of Lansing.. The San Francisco-based company Airbnb has a long history of fighting local regulations across the country. The bill is supported by Michigan Realtors, a real-estate advocacy group, and the Mackinac Center for Public Policy, a conservative think tank. 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. Although short-term rentals have been a concern in resort communities for several years, the issue has expanded to inland cities and rural townships due to a general housing shortage. Proponents of the bill say that its passage will help property owners earn extra income and will give tourists more lodging options. 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. GET THE MORNING HEADLINES DELIVERED TO YOUR INBOX, by Marla R. Miller, Michigan Advance November 6, 2021. 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. 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. 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; Michigan Legislature - House Bill 4722 (2021) 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. Humphrey agrees, saying New Buffalo has 150 rentals with active licenses plus a number of illegal rentals that the city struggles to police. House Bill (HB) 4722 says short-term rental properties can't be banned, be subject to a conditional use permit, or be considered a commercial property. PDF SEVEN Reasons HB 4722 and SB 446 are WRONG for Michigan House Republicans pass bill that addresses curriculum, pronouns From the township's perspective, short-term rentals are prohibited, and we believe that any action that takes away local zoning authority from the local unit of government is not good legislation, said Township Manager Steve Bulthuis. Are There Legal Restrictions To Homeowners Or Tenants Opening Their Grand Haven welcomes short-term rentals, but there needs to be a balanced approach, McGinnis said. It just doesnt make sense and it does nothing to protect against the rights of the property owners that live around that vacation rental.. An unintended consequence is a decline in population, school enrollment and quality of life for year-round residents. The bill passed in the House, 213-208. Why are they getting more out of this than the person who lives next door? Each community is different. 23 Mika Meyers Attorneys Listed in Best Lawyers. In my district, 30% is almost 15,000 of our housing stock.. 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. "Legislation should not politicize our . Van Beek also raised concerns about housing stock issues if short-term rentals are allowed to go virtually uncapped, particularly among affordable housing units. The rental of residential property is important to Michigan second home markets and in urban areas around event destinations. That seems to be lost., , a Southwest Michigan community that recently. There is a tradition up here, long before Vrbo and Airbnb, of short-term rentals. Saying that were going to let nuisances happen, and then well let people issue a noise violation. In addition, with inflation and the rising cost of living across the country, many short-term rental hosts rely on the additional income. 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. - Amendments made by the House will be blue, such as: House amended text. As currently written, House Bill 4722 and Senate Bill 446 would impede a local government's ability to inspect these mini-hotels to ensure they are being operated safely. 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. We still oppose it and theres been no negotiation,, . Land use: zoning and growth management; Michigan zoning enabling act; amend to include short-term rentals. Grand Rapids does allow short-term rentals, but only home sharing and not entire properties. Lawmakers and opposing groups have worked to introduce compromise legislation that recognizes the difference between homeowners who rent their properties a few weekends a year and those who buy up properties to operate them as mini hotels. House Bills 5465 and 5466 are supported by a coalition of organizations representing local government, public safety, the restaurant and lodging industry. , 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. Noise, trash and nuisance complaints, and a lack of affordable housing for year-round residents, are some of the issues associated with too many short-term rentals in a community. The Park Township Board of Trustees formally opposed the House and Senate bills in a resolution approved over the summer. An amendment offered before Wednesdays vote would also allow local units to set limits for how many short-term rentals a property owner could operate, with a limit of no fewer than two. House Bill 4722 passed the Michigan House recently and is being considered by the Michigan Senate. We are doing it well; we are doing it the way it was meant to be done, McGinnis said. MI HB4722 | 2021-2022 | 101st Legislature | LegiScan and Senate Bill 446 (Sen. Aric Nesbitt, R- . To me, this is a prime example of cities being allowed to legislate for themselves, Murphy said. Rigterink disagrees and said that is the whole point of zoning for conflicting uses. By common sense, these are commercial uses of property, said Keith Van Beek, city manager of Holland. If its 30% as proposed, right now it would allow up to 500 short-term rentals in the city of Petoskey, and I think thats way too much, Murphy said. 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. 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. Many lakeshore communities have enacted similar ordinances in recent years in an effort to preserve housing stock and residential neighborhoods, maintaining that short-term rentals are a commercial use of property. I would hope the Senate is more levelheaded. Short-term rentals also are popular among tourists throughout Michigan. State bill would take away local control for short-term rentals 64. Additionally, Rigterink takes issue with how the substitute handles zoning, saying allowing nuisance ordinances is a reactive instead of proactive solution to problems that may arise with renters. The average limit is 6.4% of the housing stock based on other Leelanau County communities that have short-term rental caps. Local governments, renters divided over short-term-rental bills The substitutes would keep short-term rentals from being zoned out of existence, but would not stop local ordinances from regulating noise, traffic, advertising and capacity. ContactArpan Lobo, Cassandra Lybrink and Carolyn Muyskens at newsroom@hollandsentinel.com. 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. 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. Typically, tourists, vacationers and some business travelers rent them for a brief stay, or not more than 30 days, through platforms like Airbnb, VRBO, Vacasa, Turnkey and others. 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. 67, District A single-family home was sold and renovated into a short-term rental. Community Rules apply to all content you upload or otherwise submit to this site. 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. House Bill 4722, along with its companion Senate Bill 446, has been making its way through the Legislature for several months. 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. Lawmakers contend HB 4722 strikes a balance between property owners who may want to buy an investment property or a second home and then rent it out while still giving local municipalities some authority in how to regulate the industry. Related: Lawmakers look to stop cities from banning short-term rentals, but some say they add to housing shortage. Question should be asked of those supporting the Michigan Housing Coalition whove signed on acknowledging housing issue across our state, yet also are pushing hard for unfettered short-term vacation rentals, Rigterink said. 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. DONATE Skyrocketing housing costs have pushed hospitality and service industry workers into outlying areas or forced them to relocate. narrowly passed the House in a late-night session last October, a move that. She lives in Norton Shores and her work can be found at marlarmiller.com. Representatives from Michigan Township Association testified in opposition to HB 4722 at early House committee hearings and worked on the compromising legislation, but it hasnt gained traction, said Judy Allen, MTAs director of government relations. No legislative action had been taken on HB 4722 in [] Tackling short-term rentals was a tumultuous two-year process that included a moratorium on city-issued licenses for rentals in May 2020, and a Nov. 23, 2021, special session where the. Sign up here The reason it is a big deal now is the internet and Airbnb, he added. In Grand Haven, that means up to 1,500 homes could convert to short-term rentals. This legislation protects private property rights by preventing short-term rentals from being zoned out of existence and also allows local governments to effectively regulate these properties, he said. 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. 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. 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. Municipalities dismayed, property owners pleased as short-term rental Corporate media arent cutting it. 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. So that doesnt actually stop the nuisance from happening.. 50, District Bridgman Council members told short-term rental bill alive in State Local governments could still enforce ordinances related to parking, noise and nuisance complaints as long as such regulations are applied consistently to owner-occupied residences as well. Summary as Introduced (5/17/2021) This document analyzes: HB4722 Summary as Reported from Committee (6/24/2021) This document analyzes: HB4722 Summary as Passed by the House (11/2/2021) This document analyzes: HB4722 Senate Fiscal Analysis SUMMARY OF BILL REPORTED FROM COMMITTEE (Date Completed: 10-10-22) This document analyzes: HB4722 History The House Committee on Commerce and Tourism approved the bill on May 25, 2021. 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, Petoskey has an ordinance that permits short-term rentals in a business district with a city license. Before HB 4722 can become law, it still must be passed by the Senate and then signed into law by Governor Whitmer. We recognize from employers and those that are looking for housing that there just are limited housing options available to people, he said. 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. Municipalities dismayed, property owners pleased as short-term rental Humphrey said short-term rentals have been . Our stories may be republished online or in print under Creative Commons license CC BY-NC-ND 4.0. Contact Editor Susan Demas for questions: info@michiganadvance.com. Legislation is moving through the house and senate seeking to stop Michigan communities from outright banning short-term rentals like Airbnb and VRBO. Daniel Krason / Shutterstock.com. Michigan Democrats in the state Legislature took the final step to pass gun safety measures Gov. 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. "It was disappointing, then, to see the House of Representatives work through the night to pass legislation that will make the hotel industry's recovery that much harder.". 206b. House Bill 4722 was not on the Oct. 26 agenda, but an amended version passed 55-48 after the GOP-controlled House stayed in session past 2 a.m. Oct. 27. A House Fiscal Agency Legislative Analysis of House Bill 4722 stated that the bill would: amend the Michigan Zoning Enabling Act to provide that the short- term rental a dwelling (for 30 days or less) is a permitted residential use of property that is not subject to a special use or conditional use permit or procedure. Our stories may be republished online or in print under Creative Commons lisence CC BY-NC-ND 4.0. The San Francisco-based company Airbnb has a. of fighting local regulations across the country. has a problem with STRs operating illegally. The legislation would give local governments the authority to limit the number of short-term rentals owned by the same person in an effort to prevent investors from buying up multiple homes. LegiScan is an impartial and nonpartisan legislative tracking and reporting service utilizing GAITS and LegiScan API, House Third Reading: Given Immediate Effect Roll Call # 503, House Third Reading: Passed Roll Call # 502, Reported With Recommendation With Substitute H-1, http://legislature.mi.gov/doc.aspx?2021-HB-4722, http://www.legislature.mi.gov/documents/2021-2022/billintroduced/House/htm/2021-HIB-4722.htm, http://www.legislature.mi.gov/documents/2021-2022/billengrossed/House/htm/2021-HEBH-4722.htm, http://www.legislature.mi.gov/mileg.aspx?page=CurrentVersionAmendment&cvFileName=2021-HCVBS-4722-0N295.pdf, http://www.legislature.mi.gov/mileg.aspx?page=CurrentVersionAmendment&cvFileName=2021-HCVBS-4722-0O339.pdf, http://www.legislature.mi.gov/mileg.aspx?page=CurrentVersionAmendment&cvFileName=2021-HCVBS-4722-0U628.pdf, http://www.legislature.mi.gov/documents/2021-2022/billanalysis/House/pdf/2021-HLA-4722-3B337E2A.pdf, http://www.legislature.mi.gov/documents/2021-2022/billanalysis/House/pdf/2021-HLA-4722-50DCEA4D.pdf, http://www.legislature.mi.gov/documents/2021-2022/billanalysis/House/pdf/2021-HLA-4722-374ECB7E.pdf, http://www.legislature.mi.gov/documents/2021-2022/billanalysis/Senate/pdf/2021-SFA-4722-F.pdf, http://www.legislature.mi.gov/documents/2021-2022/Journal/House/htm/2021-HJ-05-25-047.htm, http://www.legislature.mi.gov/documents/2021-2022/Journal/House/htm/2021-HJ-10-27-089.htm, http://www.legislature.mi.gov/documents/2021-2022/Journal/Senate/htm/2022-SJ-10-11-074.htm, Referred To Committee On Regulatory Reform, Reps. Sara Cambensy, Samantha Steckloff, Brad Paquette Removed As Co-sponsors, Passed; Given Immediate Effect Roll Call # 503 Yeas 55 Nays 48 Excused 0 Not Voting 6, Passed Roll Call # 502 Yeas 55 Nays 47 Excused 0 Not Voting 7, Reported With Recommendation With Substitute (h-1), Bill Electronically Reproduced 04/27/2021, Referred To Committee On Commerce And Tourism, Introduced By Representative Sarah Lightner. Banning the right to rent harms property owners and local businesses in many communities all over Michigan.. The Michigan Advance is a nonprofit outlet featuring hard-hitting reporting on politics and policy and the best progressive commentary in the state. If you want to open a mechanic shop in your garage, you cant do that, she said. 42, District Permanent residents also have the right to enjoy their property, negate nuisances and protect property values. Sen. Aric Nesbitt, R-Lawton, who authored S.B. . We have put forth compromise after compromise, Allen said. You cant all of a sudden convert a single-family house into a store or an auto mechanic shop. The bill specifies that short-term rentals would be subject to parameters required for other commercial uses in a residential district. A 30% reduction in use during the winter months has other implications. At the heart of the issue is whether short-term rentals are a residential or commercial use of property. Michigan Municipal League, Michigan Township Association and. Based on the Beckett & Raeder report, the village currently has 61 operating short-term rentals, which represents 13% of the communitys total housing stock. Representative Markkanen's office declined the Gazette's request for comment. passed Roll Call # 502 Yeas 55 Nays 47 Excused 0 Not Voting 7, passed; given immediate effect Roll Call # 503 Yeas 55 Nays 48 Excused 0 Not Voting 6, Reps. Sara Cambensy, Samantha Steckloff, Brad Paquette removed as co-sponsors, REFERRED TO COMMITTEE ON REGULATORY REFORM, reported with recommendation with substitute (H-1), bill electronically reproduced 04/27/2021, referred to Committee on Commerce and Tourism, introduced by Representative Sarah Lightner. Tourism is important to Michigan and short-term rentals provide visitors the opportunity to experience our beautiful state.. The state wants to come in and say, We know better, preempting them from the work that they have done., Zoning is intended to regulate conflicting land uses and problems that ensue, and communities zone based on master plans, local needs, and the, Voters embraced affordable housing initiatives. 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.