PORT TOWNSEND — Jefferson County Commissioners have passed updated regulations following a year-long moratorium on permitting short-term rentals.
The moratorium was established to address how short-term rentals (STRs) might be negatively impacting the affordable housing stock in Jefferson County.
An STR is defined as a primary dwelling unit which is not a hotel, motel or bed and breakfast and which is rented for fewer than 30 consecutive days.
A maximum cap was set Monday on the number of STRs allowed in the county. Up to 4 percent of all permanent dwelling units will be allowed to be permitted as STRs in each county Zip code.
“I think a 4 percent cap is a big compromise,” commissioner Heather Dudley-Nollette said. “I know housing advocates have really wanted a 2 or 2½ percent cap.”
If the cap is reached, applicants will be placed on a waitlist. As permits become available, the county’s Department of Community Development (DCD) would issue them to the earliest applicants, according to the new code.
Commissioners disagreed on whether or not to set a cap, with commissioner Greg Brotherton preferring no cap. He said he was not convinced that limiting homeowners’ ability to utilize their properties as they prefer would ultimately improve the housing affordability crisis the county faces.
“We have very good data that short-term rentals absolutely affect affordable housing issues,” Dudley-Nollette said. “If in a year from now we look at and say, ‘We’re trying to solve a problem that doesn’t exist,’ then fine, we can look at opening it up then. If we sail way over 4 percent of our housing stock in a year’s time, we’re going to be in a real pickle to address housing issues.”
The commissioners and staff will return to the issue in a workshop within a year to assess the cap, enforcement and any adjustments that may need to be made.
Also, it prohibits new operators from renting their home for less than 30 days within the first year of their ownership.
STRs will only be allowed in permanent residences, as permitted by the county.
They will not be allowed in temporary structures such as boats, tents, recreational vehicles or yurts.
The new county code will limit the STR operators to one rental. If, for example, an owner or operator has a main residence and a guesthouse or an accessory dwelling unit, they may rent one or the other but not both. The code limits operators to a single STR permit in unincorporated Jefferson County.
Code requires that STR operators display their permit number on all platforms and other forums for rental, including but not limited to Airbnb, VRBO, Craigslist, Facebook, flyers, posters, brochures or other websites.
Parking must now be contained onsite.
No advertising signs are allowed, but STR operators may install an identification placard, not to exceed 4 square feet.
The grace period initially was recommended by DCD staff.
“I believe the primary reason was for legal reasons,” DCD director Josh Peters said. “There was a case in another county that showed that there was some risk if you’re not providing non-conforming users the opportunity to become legal through getting a permit.”
Also, having a grace period might prevent a rush of permits, Peters said.
Ultimately, the grace period was only retained in code referring to rentals established before any county code existed regulating STRs.
“If there is any grace period, it could be for those vacation rentals that can demonstrate through evidence that they had a vacation rental in place prior to the need to get a permit,” Peters said. “That’s pre-DCD, pre-2001. I don’t think there’s any risk in getting rid of the grace period.”
Deputy Prosecuting Attorney Ariel Speser confirmed that the board of commissioners could remove the grace period generally but also advised that they should leave it in place as it pertains to legal non-conforming STRs.
“So that they have time to make sure that their non-conforming use is now a legal non-conforming use and is not terminated,” Speser said.
STR operators who have operated since before the initial STR code was initiated on Jan. 16, 2001, will have six months to obtain their permit.
The following Jefferson County codes received modifications in the hearing: 17.60.070, 18.10, 18.15.040, 18.20.210 and 18.40.040.
During the year-long moratorium, the Planning Commission met and gathered public opinion. The commission gave its recommendations to the board on March 17 at the first of the three hearings that concluded Monday.
DCD staff added recommendations on top of the Planning Commission’s recommendations. Development Code Administrator Greg Ballard said DCD brought additional recommendations before the Planning Commission on April 2.
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Reporter Elijah Sussman can be reached by email at elijah.sussman@sequimgazette.com
