This article of the code of the town is hereby designated and shall be known and referred to as the “short-term rental” article of the Town Code of Ordinances.
(Ordinance 351-09-2021 adopted 9/20/21)
The purpose of this article is to safeguard the life, health, safety, welfare, and property of the occupants of residential dwelling units, the neighbors of said occupants, and the public, through the regulation of short-term rental residential property. The intent of this article is to preserve the neighborhood character of residential subdivisions within the town and to minimize adverse impacts to the housing supply caused by the conversion of residential units to tourist or transient use.
(Ordinance 351-09-2021 adopted 9/20/21)
The provisions of this article shall apply to all existing and future residential properties, both primary and accessory structures, and any portions thereof.
(Ordinance 351-09-2021 adopted 9/20/21)
The employee designated by the town manager to enforce and administer this article, including that employee’s designees.
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.
The living area(s) of the dwelling unit that is designed and furnished for sleeping and which has proper egress as required by the International Residential Code.
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.
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.
Any individual person living, sleeping or possessing a building, or portion thereof. A person is not required to be paying rent, providing in-kind services, or named in any lease, contract or other legal document to be considered an occupant.
Any person, agent, operator, firm, trust, corporation, partnership, or any other legal entity who has a legal or equitable interest in the property; or who is recorded in the official records of the county as holding title to the property; or who otherwise has control of the property, including the guardian of the estate of any such person, and the executor of the estate of such person if ordered to take possession of real property by a court.
Property, a lot, plot or parcel of land, including any structures or portions of structures thereon.
A residential premise, or portion thereof, used for lodging accommodations to occupants for a period of less than thirty (30) consecutive days. The definition of short-term rental does include a bed and breakfast as defined as a residential unit which requires the owners or operators to be in residence at the same time as those renting the residence. Neither STR or bed and breakfast properties are allowed to have operate multifamily or multiple rental units on one tract of land. Motels are not allowed by the terms of this article.
(Ordinance 351-09-2021 adopted 9/20/21)
(a)
It shall be unlawful for any owner or person to rent, lease, advertise, or otherwise permit or allow any residential premises to be operated or used as an unpermitted short-term rental. This article is not passed with the intent or purpose of allowing short-term rentals in areas where valid deed restrictions prohibit them.
(b)
It shall be an affirmative defense to a violation of this Section that the occupant is a party to the sale of the premises and was occupying the premises pursuant to a written post-closing occupancy agreement.
(Ordinance 351-09-2021 adopted 9/20/21)
(a)
All hosting platforms shall provide the following information in a notice to any owner listing a short-term rental located within the town through the hosting platform’s service. The notice shall be provided prior to the owner listing the premises and shall include the following information: the “short-term rental” article of The Shady Shores Town Code prohibits the short-term rental of residential premises within the town without an active short-term rental permit.
(b)
Notwithstanding any other provision of this article, nothing shall relieve any owner, person, occupant, or hosting platform of the obligations imposed by the applicable provisions of state law and the town code, including but not limited to, those obligations imposed by the Tax Code. Further, nothing in this article shall be construed to limit any remedies available under the applicable provisions of state law and the town code.
(Ordinance 351-09-2021 adopted 9/20/21)
(a)
An owner who desires to use its premises as a short-term rental must have a valid, active short-term rental permit from the town prior to using, allowing the use of, or advertising the use of said premises as a short-term rental. Upon application to the town, a short-term rental permit shall be approved by administrator, or designee, if the application satisfies all the conditions of this article, and the applicable ordinances of the town code. The administrator may place reasonable conditions on a short-term rental permit to ensure compliance with the provisions of this article.
(b)
The annual fee for a short-term rental permit shall be $1,500.00 per year, to defray the administrative expenses, inspections, and personnel costs of the STR program. The fee may be amended at any time by separate ordinance.
(Ordinance 351-09-2021 adopted 9/20/21)
A short-term rental permit shall expire on the last day of the month one year after the date of issuance. No short-term rental permit may be renewed without a completed renewal application submitted by the owner and payment of the renewal fee. If the renewal application satisfies all the conditions of this article and all other applicable town code provisions, an application for the renewal of a short-term rental permit shall be approved by the administrator, or designee. The administrator may place reasonable conditions on a short-term rental renewal permit to ensure compliance with the provisions of this article. A residential unit to be used as a short-term rental must meet all applicable building codes of the town, and all applicable provisions of state law to the requirements for health safety and welfare of the residents for hotels and motels.
(Ordinance 351-09-2021 adopted 9/20/21)
(a)
Except as provided in this section, every complete application for a short-term rental permit shall include the following information with such detail and in a form approved by the administrator:
(1)
The name, address, contact information and authenticated signature for the owner of the premises;
(2)
The name, address and contact information of the operator, agent if any, and designated local responsible party as required in section 4.04.010;
(3)
The town registration number for hotel occupancy tax;
(4)
A plot plan of the premises identifying the location of parking spaces to be used in conjunction with the short-term rental;
(5)
A dimensioned floor plan of the proposed short-term rental identifying bedrooms, other living spaces and emergency evacuation routes;
(7)
The name and contact information for the property owner’s association, if any, of which the premises is covered by the dedicatory instruments;
(8)
A copy of the proposed host rules for the short-term rental; and
(9)
Such certifications deemed necessary and proper to ensure compliance with this article.
(b)
An application for a short-term renewal permit may be filed beginning thirty (30) days prior to expiration of a current permit. Every complete application for a short-term rental renewal permit shall include updates, if any, to the information contained in the original permit application or any subsequent renewals. The permit holder shall sign a statement affirming that there is either no change to such information, or that any updated information is accurate and complete. The administrator may require such certifications deemed necessary and proper to ensure continuing compliance with this article.
(c)
An application for a short-term rental renewal permit submitted after the expiration of the most immediate permit for the premises shall be treated as an application for a new permit as described in subsection (a) of this section.
(d)
If a complete application for a short-term renewal permit is submitted less than thirty (30) days prior to expiration of the current permit, the administrator in his or her sole discretion may grant a one-time extension of the current permit not to exceed ten (10) days.
(Ordinance 351-09-2021 adopted 9/20/21)
An owner must designate the name and contact information of a local responsible party who can be contacted regarding immediate concerns and complaints from the public. Said individual must be available to be reached in person or by phone at all times while occupants are on the premises of a short-term rental. If called, a local responsible party must be able to and shall be present at the premises within one (1) hour of call from administrator, or his designee. A local responsible party must be authorized to make decisions regarding the premises and its occupants. A local responsible party may be required to, and shall not refuse to, accept service of citation for any violations on the premises. Acceptance of service shall not act to release owner of any liability under this article.
(Ordinance 351-09-2021 adopted 9/20/21)
It shall be unlawful for the owner of premises operating as a short-term rental to operate without host protection or other liability insurance commensurate with the operations of the short-term rental that provides coverage of up to $1 million per occurrence. A certificate of insurance must be on file with the administrator. Proof of insurance shall be required at the time of application and notice of cancellation of insurance must be made to the administrator within 30 days.
(Ordinance 351-09-2021 adopted 9/20/21)
(a)
No permit or renewal permit shall be approved for a short-term rental until the town has inspected the premises and found the premises to be in compliance with minimum health and safety requirements for use and occupancy. If a premises fails to pass an inspection, a reinspection fee may be charged for each subsequent inspection in accordance with the fee established by resolution.
(b)
All provisions of state law regarding health safety and welfare requirements in rental homes shall apply to short-term rentals in the town. In addition, the security devices required by sections 92.153 and smoke alarms and fire extinguishers of section 92.251 of the Texas Property Code shall be installed, and functioning, in all short-term rental property. In addition, cooking stoves will have automatic fire suppression systems, such as the “stovetop firestop” or similar system. (https://stovetopfirestop.com)
(Ordinance 351-09-2021 adopted 9/20/21)
Fees established by resolution of the town council will be charged to reimburse the town for all costs associated with the administration of this article. The permit fee for a short-term rental is $1,500.00 per year, plus any additional fees required.
(Ordinance 351-09-2021 adopted 9/20/21)
(a)
It shall be unlawful for an owner of premises used for a short-term rental to fail to pay hotel occupancy taxes required under state law and the taxation chapter of this code. Upon request of the administrator or the finance department of the town, the owner of a premises used as a short-term rental shall remit, within 30 days, an accounting of all occupants who rented the premises and the hotel occupancy taxes paid therefor. It shall be unlawful for a person to fail to provide said information requested in a timely manner.
(b)
This article authorizes the imposition of local hotel occupancy taxes as authorized by title 3, subtitle D, chapter 351 of the Texas Tax Code. Such taxes are applicable to short-term rentals by state law. The mayor and city administrator are authorize to take all action needed to impose and collect the tax in the town. The initial tax rate shall be seven (7) percent.
(Ordinance 351-09-2021 adopted 9/20/21)
A short-term rental permit is nontransferable and shall not be assigned nor transferred to another person or entity. Any attempt to transfer a permit or attempt to use another person’s permit is grounds for revocation of said permit.
(Ordinance 351-09-2021 adopted 9/20/21)
(a)
It shall be unlawful for an owner or person to rent, allow, provide, or advertise for more than two (2) persons per bedroom, plus two (2) additional persons, when using the premises as a short-term rental.
(b)
Regardless of the number of bedrooms at the premises, it shall be unlawful:
(1)
For more than twelve (12) persons (including children), to occupy a short-term rental residence and lot at any one time; or
(2)
For the owner or operator to allow, suffer or permit the number of occupants living, sleeping within or possessing a short-term rental to exceed the maximum occupancy shown on the short-term rental permit or renewal permit.
(c)
A visual inspection of more than twelve (12) persons by a town employee at the premises is prima facie evidence of and shall be probable cause to issue a citation for a violation of this section.
(Ordinance 351-09-2021 adopted 9/20/21)
The maximum amount of motor vehicles allowed at a short-term rental shall be limited to the number of available off-street parking spaces. It shall be unlawful for an owner or person to permit, allow or advise occupants to park more vehicles on the premises than the available off-street parking spaces, or to suffer or permit parking of vehicles on an unapproved surface. It shall be unlawful for an occupant of a short-term rental to park a motor vehicle on a residential street near a short-term rental. It shall be unlawful for an occupant of a short-term rental, or an owner thereof to allow an occupant, to park or occupy a motor home, recreational vehicle, boat, commercial vehicle, or otherwise prohibited motor vehicle on the premises of a short-term rental or on a residential street near a short-term rental. Approved parking surfaces are asphalt and concrete, which require a permit for installation. No parking is allowed in the side yard or rear yard of the property. Parking in the front yard is as otherwise required by ordinance. Not more than twenty per cent of the front yard may be paved for parking for lots more than one fourth acre (see section 4.04.019).
(Ordinance 351-09-2021 adopted 9/20/21)
It shall be unlawful for an owner to rent or lease a short-term rental for a period of less than 24 hours.
(Ordinance 351-09-2021 adopted 9/20/21)
(a)
It shall be unlawful for an owner or person to convert a garage to living space, remodel, renovate, enlarge, or otherwise modify premises to add additional bedrooms for use as a short-term rental, or otherwise.
(b)
It shall be unlawful for an owner or person to pave or otherwise cover pervious soil to create additional on-premises parking without prior approval from the town.
(c)
Approved surfaces for parking for a short-term rental are asphalt and concrete, placed in compliance with city ordinance and constructed only upon the issuance and compliance with a town building permit. Parking on grass, dirt, or gravel is not permitted, nor is parking behind the front building line of the residence.
(Ordinance 351-09-2021 adopted 9/20/21)
It shall be unlawful for an owner or occupant of a short-term rental to use or allow the use of amplified sound equipment that produces sound audible beyond the property line of the premises between the hours of 11:00 p.m. and 6:00 a.m.
(Ordinance 351-09-2021 adopted 9/20/21)
It shall be unlawful for an owner or person to allow the congregation of occupants outside at the premises between the hours of 11:00 p.m. and 9:00 a.m.
(Ordinance 351-09-2021 adopted 9/20/21)
It shall be unlawful for an owner or occupant to place, or allow to be placed, trash on the premises before 7:00 PM the evening prior to scheduled pickup or on a day not scheduled for pickup by the town or its authorized solid waste transportation vendor.
(Ordinance 351-09-2021 adopted 9/20/21)
An owner or person operating a short-term rental shall provide a notice of instructions (also known as “host rules”) to occupants staying at the premises in a form developed by the administrator. The notice shall instruct the occupants as to all applicable town regulations pertaining to short-term rentals. These include, but are not limited to, occupancy restrictions, limits on parking, trash pickup, prohibitions on special events, limits on amplified sound, and curfew times.
(Ordinance 351-09-2021 adopted 9/20/21)
A copy of the approved short-term rental permit shall be posted at a conspicuous location inside the front entrance(s) to the short-term rental.
(Ordinance 351-09-2021 adopted 9/20/21)
It shall be unlawful for an owner or person to advertise a short-term rental in any medium, including but not limited to newspaper, magazine, brochure, website, or mobile application without including the current permit number assigned by the administrator.
(Ordinance 351-09-2021 adopted 9/20/21)
It shall be unlawful for an owner or person to use, advertise or promote or allow the use, advertisement or promotion of a short-term rental using a permit number not assigned to the owner or person, or to a different address, or to a different dwelling unit.
(Ordinance 351-09-2021 adopted 9/20/21)
(a)
Grounds.
Any permit issued hereunder may be revoked by the administrator if the permit holder has:
(1)
Received more than two citations for violations of this article or any other provision of this code within the preceding 12-month time period;
(2)
Failed or refused to comply with an express condition of the permit and remains in noncompliance ten (10) days after being notified in writing of such noncompliance;
(3)
Knowingly made a false statement in the application; or
(4)
Otherwise become disqualified for the issuance of a permit under the terms of this article.
(b)
Notice.
Notice of the revocation shall be given to the permit holder in writing, with the reasons for the revocation specified in the notice, served either by personal service or by certified United States mail to their last known address. The revocation shall become effective the day following personal service or if mailed, three (3) days from the date of mailing.
(c)
Appeal; hearing.
The permit holder shall have ten (10) days from the date of such revocation in which to file notice with the administrator of their appeal from the order revoking said permit. The administrator shall provide for a hearing on the appeal in accordance with the provisions of this article.
(d)
One-year waiting period.
In the event an owner’s short-term rental permit is revoked by the administrator, no second or additional permit shall be issued for a short-term rental on the premises for one year of the date such permit was revoked.
(Ordinance 351-09-2021 adopted 9/20/21)
(a)
Upon denial or revocation of a permit, the administrator, or her designee, shall notify the applicant or permit holder, in writing, of the reason for which the permit is subject to denial or revocation. To contest the denial or revocation of a permit, the applicant or permit holder shall file a written request for a hearing with the administrator within fifteen (15) days following service of such notice. If no written request for hearing is filed within fifteen (15) days, the denial or revocation is sustained.
(b)
The appeal shall be conducted as an administrative hearing before the municipal judge, or his designee, within thirty (30) days of the date on which the notice of appeal was filed with the administrator.
(c)
The hearings provided for in this section shall be conducted by the municipal judge, or his designee, at a time and place designated by the municipal judge, or his designee. Based upon the recorded evidence of such hearing, the Municipal Judge, or his designee, shall sustain, modify or rescind any notice or order considered at the hearing. A written report of the hearing decision shall be furnished to the applicant or permit holder requesting the hearing.
(d)
After such hearing, an applicant or permit holder whose permit was denied or revoked by the municipal judge, or his designee, may appeal to the zoning board of adjustment (“ZBA”) as an appeal of a town official in a civil permit issue.
(e)
An appeal shall not stay the denial or suspension of the permit unless otherwise directed by the municipal judge, or his designee.
(Ordinance 351-09-2021 adopted 9/20/21)
(a)
All appeals to the town appeal officer must be made in writing and received no less than ten (10) days after any final decision made by the municipal judge, or his designee, in accordance with above.
(b)
The ZBA shall schedule the appeal hearing within twenty (20) days from receipt of the appellant or permit holder’s appeal request.
(c)
If by super majority vote the ZBA finds by preponderance of the evidence that the denial or revocation of the permit was necessary to protect the health, safety, or welfare of the general public, the ZBA shall affirm the denial or revocation of appellant’s application or permit.
(d)
The ZBA may consider any or all of the following factors when reaching a decision on the merits of the appeal:
(1)
The number of violations, convictions, or liability findings.
(2)
The number of previous permit revocations;
(3)
The number of repeat violations at the same location.
(4)
The degree to which previous violations endangered the public health, safety or welfare; and
(5)
Any pending action or investigation by another agency.
(6)
The number of other violations of this article, and/or state law, occurring on the property related to residential or short-term rental use.
(e)
After the hearing, the ZBA shall issue a written order. The order shall be provided to the appellant by personal service or by certified mail, return receipt requested.
(f)
The ZBA may affirm or reverse the denial or revocation of the permit. If affirmed, the order issued must state that the appellant is not eligible to receive a new permit for a short-term rental on the premises sooner than one year after the date of the order. If reversed, the permit shall be reinstated immediately, in the case of a revocation, or the permit shall be issued within three (3) business days, in the case of a denial.
(g)
The determination of the ZBA shall be final on the date the order is signed.
(h)
An appeal to the ZBA does not stay the effect of a denial or revocation or the use of any enforcement measure unless specifically ordered by the administrator or the town appeal officer.
(Ordinance 351-09-2021 adopted 9/20/21)
(a)
A property owner of an approved and permitted short-term rental property may apply for a variance for the property for one or more variances to the specific requirements of this article of the municipal code of the town.
(b)
An application for a variance under this article is made to the town zoning board of adjustment, under the same rules and requirements as requests for variances to the comprehensive zoning ordinance of the town.
(c)
The zoning board of adjustment may exercise its authority under the standards of the Local Government Code of Texas, as follows: “...the board may consider the following as grounds to determine whether compliance with the ordinance as applied to a structure that is the subject of the appeal would result in unnecessary hardship:
(1)
The financial cost of compliance is greater than 50 percent of the appraised value of the structure as shown on the most recent appraisal roll certified to the assessor for the municipality under section 26.01, Tax Code;
(2)
Compliance would result in a loss to the lot on which the structure is located of at least 25 percent of the area on which development may physically occur;
(3)
Compliance would result in the structure not being in compliance with a requirement of a municipal ordinance, building code, or other requirement;
(4)
Compliance would result in the unreasonable encroachment on an adjacent property or easement; or
(5)
The municipality considers the structure to be a nonconforming structure.”
(d)
The concurring vote of 75 percent of the members of the board is necessary to:
(Ordinance 351-09-2021 adopted 9/20/21)
(a)
The owner of a short-term rental use that was not registered with the town for hotel occupancy tax prior to November 1, 2021, and who is unable to obtain a permit for said use or fails or refuses to obtain a permit for the use following the effective date of this article, shall discontinue the short-term rental use no later than December 31, 2021.
(b)
If the permit for a short-term rental use is not obtained by November 1, 2021, the owner shall discontinue the use no later than December 31, 2021.
(Ordinance 351-09-2021 adopted 9/20/21)
(a)
A person who violates any provision of this article by performing an act prohibited or by failing to perform an act required is guilty of a misdemeanor. Each day on which a violation exists or continues to exist shall be a separate offense.
(b)
If the definition of an offense under this article does not prescribe a culpable mental state, then a culpable mental state is not required. Such offense shall be punishable by a fine not to exceed five hundred dollars and no cents ($500.00). Although not required, if a culpable mental state is in fact alleged in the charge of the offense and the offense governs fire safety, zoning, or public health and sanitation, including dumping of refuse, such offense shall be punishable by a fine not to exceed two thousand dollars and no cents ($2,000.00).
(c)
If the definition of an offense under this article prescribes a culpable mental state and the offense governs fire safety, zoning, or public health and sanitation, including dumping of refuse, then a culpable mental state is required, and the offense shall be punishable by a fine not to exceed two thousand dollars and no cents ($2,000.00).
(Ordinance 351-09-2021 adopted 9/20/21)