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HomeMy WebLinkAboutLEG 04-23 Report to Council Report Number: LEG 04-23 Date: March 27, 2023 From: Paul Bigioni Director, Corporate Services & City Solicitor Subject: Regulation of Short Term Rentals - File: L-2100-001-22 Recommendation: That Report LEG 04-23 regarding the regulation of short term rentals be received for information. Executive Summary: Staff propose to address the regulation of short term rental (STRs) properties with a staff report recommending increases to the fines for violating Noise Control By-law 6834/08 and recommending revisions to Nuisance By-law 7773/20 which will increase the situations where charges can be laid and will provide a provision to order a nuisance activity to stop. This will be included in the Report to the Executive Committee in May 2023. In addition, a full review of the City’s Noise Control By-law 6834/08 including public consultation will be completed, as per Report BYL 04-23 dated March 6, 2023. Staff will continue to review the feasibility and advisability of enacting a licensing by-law for STRs, and that public and stakeholder consultation be carried out with respect to same. Recommendations for appropriate zoning by-law provisions for STRs will be formulated as part of the City’s Consolidated Zoning By-law review process. Staff will continue to utilize the Traffic and Parking By-law to resolve parking complaints related to rental properties. Staff will work with STR platforms (including but not limited to Airbnb and VRBO) to address any and all problem properties by filing reports and making requests to have such properties removed from STR platforms. Financial Implications: None. Discussion: At its February 27th, 2023 meeting, Council considered Report LEG 03-23 regarding the regulation of short term rentals (“STRs”). In Report LEG 03-23, staff had proposed to regulate STRs by means of zoning by-law provisions and a licensing by-law. An amendment to the City’s Noise Control By-law was also proposed. Staff’s proposals are set out in greater detail in Report LEG 03-23 (Attachment 1 to this Report). Report LEG 03-23 was referred back to staff with a direction to bring forward a revised work plan following the March 7, 2023 meeting with Durham Regional Police Service. -aft;of- Pl(KERJNG LEG 04-23 March 27, 2023 Subject: Regulation of Short Term Rentals Page 2 A meeting with Durham Regional Police Service and concerned residents has taken place, and staff now propose the following: 1. That staff complete a Report to Council’s May Executive Committee meeting recommending increases to the fines for violating Noise Control By-law 6834/08. 2. That staff complete a Report to Council’s May Executive Committee meeting recommending revisions to Nuisance By-law 7773/20 which will increase the situations where charges can be laid and will provide a provision to order a nuisance activity to stop. 3. In addition to Item 1 above, that staff complete a full review of the City’s Noise Control By-law 6834/08 including public consultation, as per Report BYL 04-23 dated March 6, 2023. 4. That staff continue to review the feasibility and advisability of enacting a licensing by- law for STRs, and that public and stakeholder consultation be carried out with respect to same. 5. That recommendations for appropriate zoning by-law provisions for STRs be formulated as part of the City’s Consolidated Zoning By-law review process. 6. That staff continue to utilize the Traffic and Parking By-law to resolve parking complaints related to rental properties. 7. That staff work with STR platforms (including but not limited to Airbnb and VRBO) to address any and all problem properties by filing reports and making requests to have such properties removed from STR platforms. The amendments to the Noise Control and Nuisance By-laws will provide tools to address the most common concerns related to STRs. The issues that will be addressed by the amendments will include: gatherings/parties, alcohol consumption in a public place, noise levels/complaints, fighting, destruction of property and other nuisance behavior. Staff have reviewed many Nuisance and Nuisance Party By-laws in place in other jurisdictions as part of the “best practices scan” currently underway. This review will inform staff Recommendations to Council (Items 1 and 2 above). The licensing of Short Term Rentals will be subject to further study and public consultation. It must be recognized that problem STR operators are less likely to comply with the licensing requirements, and the licensing of STRs will only provide for additional charges to be laid. Licensing may not be as effective a tool as the proposed amendments to the City’s Noise Control and Nuisance By-laws. The Recommendations being brought forward to the May Executive Committee Meeting (Items 1 and 2 above) will include significantly higher fines for noise violations caused by income- generating properties and activities. Such increased fines will be a strong deterrent to nuisance behaviour at STR properties. The Durham Regional Police Service supports both the increase to Noise Control By-law fines and the additional Nuisance By-law provisions. DRPS has LEG 04-23 March 27, 2023 Subject: Regulation of Short Term Rentals Page 3 assisted by suggesting by-law provisions that have proven helpful elsewhere in Durham Region. Staff will continue to track and monitor trends related to STRs. The effectiveness of the changes to the Noise Control By-law and Nuisance By-law will guide staff’s future recommendations related to STR licensing. Attachments: 1. Report to Council LEG 03-23 Prepared/Endorsed By: Paul Bigioni Director, Corporate Services & City Solicitor Recommended for the consideration of Pickering City Council Marisa Carpino, M.A. Chief Administrative Officer Original Signed By: Original Signed By: -01fo/- PJ(KERJNG From: Subject: Paul Bigioni Director, Corporate Services & City Solicitor Regulation of Short Term Rentals -File: L-2100-001-22 Recommendation : Report to Council Report Number: LEG 03-23 Date: February 27, 2023 1. That Report LEG 03-23 regarding the regulation of short term rentals be received for information . Executive Summary: By Resolution #929/22 dated June 30, 2022, Council directed staff to report on the advisability of implementing a by-law similar the Town of Ajax's By-law 115- 2013 (By-law for the Licensing and Regulating of Lodging Houses). Having reviewed Ajax's By-law 115-2013, and having consulted with Ajax staff, City staff advise against the implementation of a similar by-law in Pickering. Such a by-law would not be effective in regulat ing short term rentals . Short term rentals ("STR") of residential properties have become commonplace since the advent of platforms such as Airbnb and VRBO. In Pickering, STR properties have created some nuisance, noise and parking issues . Though problems caused by STRs to date have not been numerous, it is wise to proactive ly regulate them, to help ensure the safety of residential communities and to minimize the extent to which short term vacation rentals reduce the availability of housing for families in need of long term accommodation. In March , 2023, staff will submit a Report to Council regarding the need for a new Noise Control By-law. As part of that Report, staff will re com mend that the new Noise Control By-law provid e for significantly higher fines for noise violations caused by income-generating properties and activities. Such increased fines will be a strong deterrent to STRs causing nuisance problems for surrounding neighbourhoods. To more comprehensively regulate STRs, staff will be proposing a combination of zoning by- law provisions and a new licensing by-law. Zoning provisions will be considered by City Development staff in the context of the consolidated zoning by-law exercise. Planning policy objectives for regulating STRs will be identified . STR regulation will aid in the enforcement of the City's existing noise, nuisance, property standards and parking by-laws, for the purpose of ensuring safe and welcoming neighbourhoods. STR regulation can also help ensure the availability of rental housing stock for long term rental , for the purpose of addressing the Provincially recognized housing shortage. Attachment #1 to LEG 04-23 LEG 03-23 Subject: Short Term Rentals Financial Implications : None February 27, 2023 Page 2 Discussion: By Resolution #929/22 dated June 30, 2022, Council directed staff to report on the advisability of implementing a by-law similar the Town of Ajax's By-law 115-2013 (By-law for the Licensing and Regulating of Lodging Houses). This direction resulted from concerns expressed by then Councillor Bill McLean about nuisances caused by specific STR properties. Having reviewed Ajax's By-law 115-2013, and having consulted with Ajax staff, City staff advise against the implementation of a similar by-law in Pickering . Such a by-law would not be effective in regulating STRs. That being said, City staff recognize the importance of regulating STRs to minimize impacts on nearby properties and communities, and to address parking, nuisance and noise problems. After reviewing best practices in other Ontario municipalities, staff advise that a combined zoning-licensing approach is the best way to regulate STRs, and to minimize their impact on surrounding neighbourhoods. This approach will require new zoning by-law provisions which could be employed to define the areas in which STRs are permitted, limit STRs to the operator's principal residence, and even to limit the total number of STRs in a given neighbourhood. The new zoning provisions will be considered by City Development staff in the context of the consolidated zoning by-law exercise. Planning policy objectives for regulating STRs will be identified . STR regulation will complement the enforcement of the City's existing noise, nuisance, property standards and parking by-laws, for the purpose of ensuring safe and welcoming neighbourhoods. STR regulation can also help ensure the availability of rental housing stock for long term rental , for the purpose of addressing the Provincially recognized housing shortage. STR provisions will be included in the next draft of the City's Consolidated Zoning By-law, which will then go to public consultation . City Development staff intend to present the final draft Consolidated Zoning By-law for Council 's consideration in Fall , 2023. Together with new zoning provisions, a companion licensing by-law could impose licence conditions on STR operators, such as: (a) payment of a licence fee , (b) compliance with set operating standards and applicable by-laws, (c) requiring renters to acknowledge and agree to set standards of behaviour, (d) maintaining and disclosing rental records ; and (e) maintaining adequate insurance coverage . Licensing standards would enable the City to revoke the licence of STR operators who fail to comply with these licence conditions . Municipal Law Enforcement staff will draft the licensing by-law at the same time that work is underway on the zoning provisions. Public and industry consultation will help inform the content of the new lice nsing by- law. While work is underway on the zoning and licensing by-laws required to comprehensively regulate STRs, staff will recommend an enhancement to the City's Noise Control By-law that will help minimize unwanted noise from STRs. In March, 2023, staff will submit a Report to Council regarding the need for a new Noise Control By-law. As part of that Report, staff will recommend that the new Noise Control By-law provide for significantly higher fines for noise violations caused by income-generating properties and activities. Such increased fines will be a strong deterrent to STRs causing nuisance problems for surrounding neighbourhoods. LEG 03-23 Subject: Short Term Rentals Attachments: None. Prepared/Endorsed By: Original Signed By: Paul Bigioni Director, Corporate Services & City Solicitor PB:ks Recommended for the consideration of Pickering City Council Original Signed By: Marisa Carpino, M.A. Chief Administrative Officer February 27, 2023 Page 3