City holds public work session regarding rentals

After initially discussing short-term rentals such as AirBnB and VRBO (Vacation Rental By Owner) listings at the city council meeting on June 23, members of Mountain Brook City Council, the planning commission and the planning department held a public work session determine a course of action for regulating future rentals. 

“I think what we’re finding with this new ability [of AirBnB and VRBO] … we’re running into some problems and clearly there are some concerns the city does have,” said council president Virginia Smith.

Since introducing the topic at the June 23 council meeting, councilwoman Alice Womack said she has received many emails with two common stances: against the rentals and indifference towards the rentals. “I did not get anybody that was really for it,” she said. “I would say the majority of the feedback I received does not want it in their neighborhood.”

Although Mayor Stewart Welch said he does’t believe this to be a big deal, other officials agreed something needs to be done to manage short-term rentals.

“The concern I have is currently what we’ve got is a really broad [way to manage rentals],” said councilman Lloyd Shelton. “But I don’t think we can just put our head in the sand and say, ‘Oh, this doesn’t affect us.’” 

Officials discussed different parameters that could be put into place, such as outlawing the rentals completely throughout the city, defining short-term and long-term rentals, creating various stipulations for rentals and/or outlawing the rentals in all areas except multi-family housing districts, such as apartments.

“I just make a suggestion to outlaw it completely,” said councilman Billy Pritchard.

Currently under city ordinance, in single-family housing districts, it is illegal for more than two unrelated individuals, not including those related by marriage, adoption or other legal measures, to take up residence on the same property for renumeration — even for one night. This makes much of the rentals that AirBNB and VRBO provide unlawful in the city of Mountain Brook.

Residents at the meeting gave comments both in favor of and against short-term rentals, stating that faster turnovers in apartments isn’t fair to those leasing a unit long-term, but that summer interns or guests visiting for sports tournaments or other Birmingham-area events may need a nice place to stay for a short amount of time. 

Resident Sue Feldman was in favor of short-term rentals, adding that a specific ordinance would still be a positive measure to give potential renters and guests guidelines to follow, and Susan Swagler of the planning commission said AirBnB’s serve a good purpose.

“I hate to limit them [renters] to Birmingham,” she said, referencing that there are only two hotels in Mountain Brook: the Hampton Inn at $155 per night and the Grand Bohemian at $322 per night as of July 12. Planning commission member Alice Williams said too that if residents are forced to move out of their homes due to an emergency, they are going to want to stay in the city, possibly in a short-term rental and not a hotel.

Although some officials were still unsure if they would like to include apartments in the regulations, the majority asked to regulate rentals for both single-family and multi-family districts and an agreement was reached to for a 30-day limit for rentals.

Smith asked to draft an ordinance which would define a short-term rental as one that is less than 30 days and prohibit short-term rentals in all residential zoning districts. 

This draft ordinance will be presented at the next planning commission meeting on Aug. 7 at 5:30 p.m. and include a public hearing. From there, director of planning, building and sustainability Dana Hazen said the draft could continue to council as proposed, be revised or be changed entirely before moving on to council for a meeting and public hearing in the upcoming weeks.

“Globally … I think we’ve lost the ability to have civil discourse,” said Shelton. “I think locally, we haven’t. So I think having these conversations are helpful.”

City Attorney Whit Colvin will also be drafting a moratorium to prevent the city from issuing any new business licenses for short-term rentals while the discussion continues, which Hazen said could “restrict existing business license holders for short-term rentals from accepting any new reservations during the study/hearing period.” But, she said it may still allow those with licenses to keep existing reservations that follows he city’s definition of a family.

It’s expected that the moratorium will be on the next city council agenda on July 24.