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Agenda 06/25/2019 Item #11E (Short Term Vacation Rentals)06/25/2019 EXECUTIVE SUMMARY Recommendation to direct staff on next steps, if any, in regulating Short Term Vacation Rentals in the unincorporated area of Collier County. OBJECTIVE: Review and give direction to staff on the next steps, if any, in regulating Shor t Term Vacation Rentals. CONSIDERATIONS: At Board direction, on February 25, 2019, the Tourist Development Council (TDC) reviewed the history of vacation rentals in Collier County, the estimated number of those rentals in the County, and how other Florida communities are addressing this issue. After a discussion “that more information and analysis is required on the issue (workshops, stakeholder meetings, etc.),” and that “the process should be a long term investigation to ensure the most optimum solution possible is developed,” to move the item along, the TDC “moved for the Board of County Commissioners to further investigate changing County requirements for short term vacation rentals, including obtaining any data available from the Code Enforcement or the Sheriff’s Office on complaints regarding the activity.” The investigation may include workshops with stakeholders and advisory boards to develop recommendations on the issue.” (See attached minutes.) Staff Report As reported to the BCC on May 28, the Collier County Land Development Code (LDC) has a provision that prohibits short-term rental of six months or less in most areas of unincorporated Collier County. The six-month period is defined in the LDC provision for “Destination Resort Hotel”. Unless “transient lodging” is permitted in a zoning area, then any rental of six months or less would be prohibited. RT Zoning is the only residential district that permits transient lodging in unincorporated Collier County. The Board directed staff to come back on June 25 with any updated Florida County or City Ordinances on Short Term Vacation Rentals. Staff has collected recent developments in this alternative booking method, new Ordinances, an expanded list of STVR Ordinances in other Florida Counties and updated statistics on the number of STVR units are offered in Collier County. The attached PowerPoint presentation outlines this additional information. On June 17, 2019 a stakeholder meeting was held that included representatives from Collier County Government, the Collier County Sherriff's Office, the Naples Area Board of Realtors, and various others. At the meeting, the consensus recommendation was to come up with a way for progressive enforcement for the most egregious violators, and to implement an online registration system for short-term vacation rentals. Currently the Collier County Tax Collector does not have agreements with any of the Vacation rental website companies such as AirBnB, VRBO, Home Away, etc. This is primarily due to the inability for these companies to provide the transparency the Tax Collector requires to determine who the property owner is and if they are registered to collect and remit the Tourist Development Tax on these rentals. Collier County Code Enforcement could assist in instituting a procedure for on-line registration of short- term vacation rentals that would combine Business Tax Receipts, State Department of Business and Professional Regulation (DBPR), Tourist Tax and Sales Tax registration; an affidavit signed by the homeowner to comply with County Building and Fire Codes; institute spot checks on registered properties and investigate compliance complaints. FISCAL IMPACT: No Fiscal Impact is known at this time. GROWTH MANAGEMENT IMPACT: There is no impact to the Growth Management Plan with this Executive Summary. 11.E Packet Pg. 998 06/25/2019 LEGAL CONSIDERATIONS: This item has been reviewed by the County Attorney, is approved as to form and legality, and requires majority vote for approval. -JAK RECOMMENDATION: Recommendation to direct staff on next steps in regulating Short Term Vacation Rentals in the unincorporated area of Collier County. Prepared by: Jack Wert, Tourism Director ATTACHMENT(S) 1. PPT Presentation TDC Short Term Vacation Rentals BCC 6-25-19 sc edits (PPTX) 11.E Packet Pg. 999 06/25/2019 COLLIER COUNTY Board of County Commissioners Item Number: 11.E Doc ID: 9395 Item Summary: **This item to be heard no sooner than 1:00 p.m. This item continued from the May 28, 2019 BCC Meeting** Recommendation to direct staff on next steps, if any, in regulating Short Term Vacation Rentals in the unincorporated area of Collier County. (Jack Wert, Tourism Director) Meeting Date: 06/25/2019 Prepared by: Title: Executive Secretary to County Manager – County Manager's Office Name: MaryJo Brock 06/19/2019 8:46 AM Submitted by: Title: County Manager – County Manager's Office Name: Leo E. Ochs 06/19/2019 8:46 AM Approved By: Review: Tourism Sean Callahan Additional Reviewer Skipped 06/19/2019 9:17 AM County Manager's Office Sean Callahan Additional Reviewer Completed 06/19/2019 9:20 AM Office of Management and Budget Valerie Fleming Level 3 OMB Gatekeeper Review Completed 06/19/2019 9:46 AM County Attorney's Office Jeffrey A. Klatzkow Level 3 County Attorney's Office Review Completed 06/19/2019 11:16 AM Budget and Management Office Ed Finn Additional Reviewer Completed 06/19/2019 12:32 PM County Manager's Office Nick Casalanguida Level 4 County Manager Review Completed 06/19/2019 12:57 PM Board of County Commissioners MaryJo Brock Meeting Pending 06/25/2019 9:00 AM 11.E Packet Pg. 1000 1 Short Term Vacation Rentals (STVR) 11.E.1 Packet Pg. 1001 Attachment: PPT Presentation TDC Short Term Vacation Rentals BCC 6-25-19 sc edits (9395 : Short Term Short Term Vacation Rental (STVR) Discussions •At the January 28, 2019 TDC meeting, the Council recommended a review of private transient rentals (six months or less) in Collier County including: 1.History of the vacation rental business in Collier County. 2.How many and where are the vacation rentals located in Collier County. 3.How other Florida Counties are addressing this issue. 4.Re commendations to BCC for further action. •At the February 25 TDC meeting, recommendations were made to present to the BCC for consideration •At the March 26 BCC Meeting the TDC recommendations were presented and the BCC voted to enforce the current Land Development Code provisions related to STVR •At the May 25 the BCC meeting, the Board voted to Reconsider their March 26 vote and directed staff to return on June 25 with updated STVR information and ordinances in other Florida Counties. 2 11.E.1 Packet Pg. 1002 Attachment: PPT Presentation TDC Short Term Vacation Rentals BCC 6-25-19 sc edits (9395 : Short Term Developments Since May 25 BCC Discussion •Florida Legislature failed to pass any new STVR legislation •Marriott Hotel Corporation announced they are entering the Va cation Rental Market •New Counts of Short Term Vacation Rentals for Collier County •Governor DeSantis lifted Air B&B Sanctions in Florida •Additional Florida Counties Ordinance Research ava ilable –City of Largo FL Adopts Short Term Vacation Rental Ordinance 2019-28 –Flagler County maintains 2015 STVR Ordinance 2015-02 •A meeting of community stake holders was orga nized last week with NABOR, Collier County staff, and CCSO on STVR’s and recommended a progressive approach to enforcement and registration 3 11.E.1 Packet Pg. 1003 Attachment: PPT Presentation TDC Short Term Vacation Rentals BCC 6-25-19 sc edits (9395 : Short Term Updated STVR Estimates (Source: Host Compliance 2019) 11,273 Listings of 8,171 Renta l Units as of 6/15/2019 4 11.E.1 Packet Pg. 1004 Attachment: PPT Presentation TDC Short Term Vacation Rentals BCC 6-25-19 sc edits (9395 : Short Term 5 11.E.1 Packet Pg. 1005 Attachment: PPT Presentation TDC Short Term Vacation Rentals BCC 6-25-19 sc edits (9395 : Short Term STVR Ordinances in Florida Counties-(VRBO Units) •Lee -TDT Ordinance Chapter 29 (8,320 Units) •Sarasota-TDT Ordinance Sect 114-61 (4,722 Units) •Manatee-TDT Ordinance Sec 2-29 (3982 Units) •Pinellas-TDT Ordinance 118031 (7,213 Units) •Pasco-Ordinance 17-29 (466 Units) •Bay –Ordinance 18-08 (7,680 Units) •Wa lton-TDT Ordinance Sect 19-26 (10,327 Units) •Okaloosa-TDT Ordinance Sect 20-71 (6,269 Units) •Escambia-TDT Ordinance Sect 90-52 (2,439 Units) •Flagler-Ordinance 2016-01 (911 Units) •Vo lusia-TDT Sect 114-32 (2677 Units) •Brevard-Ta xation Article 1 (940 Units) •Palm Beach-TDT Chapter 17 (2,022 Units) •Broward-TDT Chapter 31 (2,543 Units) •Miami Dade-Va cation Rentals Ordinance Sect 33-28 (6,237 Units) •Monroe-County Conde 134-1(b) (4,658 Units) •Orange-Licenses & Taxation Chapter 25 (39,834 Units) •Osceola-Business Regulations (37,886 Units) •Polk-TDT Chapter 11.6 (25,411 Units) •City of Largo FL Ordinance 2019-28 6 11.E.1 Packet Pg. 1006 Attachment: PPT Presentation TDC Short Term Vacation Rentals BCC 6-25-19 sc edits (9395 : Short Term Flagler County Ordinance # 2015-02 City of Largo FL Ordinance # 2019-28 7 11.E.1 Packet Pg. 1007 Attachment: PPT Presentation TDC Short Term Vacation Rentals BCC 6-25-19 sc edits (9395 : Short Term Collier County TDT Collections for STVR 8 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 Web Site Confirmations We b Site Confirmations VRBO HomeAway Airbnb Craig's List TOTALS 0 2,000 4,000 6,000 8,000 10,000 12,000 1 2 3 4 5 6 7 8 9 TDT Tax Collector Records/Accounts Collier County TDT Tax Collector Records We b Site Confirmations Collier County TDT Tax Collector Records As of 03.22.2019 Rob Stoneburner CCTC VRBO 8,000 7,951 1. Condos HomeAway 6,000 2,612 2. Single Family Homes Airbnb 300 2 3. Apartments Craig's List 350 32 4. Campground/RV TOTALS 14,650 27 5. Mobile Home Parks 140 6. Realtor/Property Mgmt. 77 7. Hotel/Motel 20 8. Interval Owners 10,861 9. TOTALS 11.E.1 Packet Pg. 1008 Attachment: PPT Presentation TDC Short Term Vacation Rentals BCC 6-25-19 sc edits (9395 : Short Term Other Florida County Enforcement Mechanisms •City of Miami Beach –$20,000 fine for renting a property without a County license. –Short Term Vacation Rental Units are only allowed in Multi-Family Districts. •Miami-Dade County –Operating a vacation rental without a Certificate of Use is a violation of the County Code and the civil penalty schedule as follows: –1st Offense = $100; 2d Offense = $1,000; 3rd Offense = $2,500 •Flagler County – –Requires registration for Single Family and allows for,“By Right” for Multifamily –Requires initial and routine building and fire inspections •Other Florida Counties have some of these enforcement considerations: –Differentiate between entire house/unit vs. room –Single Family vs. Multifamily –Only allow for homesteaded properties –Require registrations and inspections –Establish specific processes, policies and penalties for violations 9 11.E.1 Packet Pg. 1009 Attachment: PPT Presentation TDC Short Term Vacation Rentals BCC 6-25-19 sc edits (9395 : Short Term Progressive Enforcement •On-line registration and voluntary compliance –Ed ucation through NABOR and registration –Business Tax Receipt; DBPR, Tourist Tax, Sales Tax –Affidavit to comply with various code elements –Spot checks fo r compliance •Open Code Case to investigate &process complaints –Ongoing complaints will establish the most egregious offenders •CCSO support •Establish higher penalties for non-compliance 10 11.E.1 Packet Pg. 1010 Attachment: PPT Presentation TDC Short Term Vacation Rentals BCC 6-25-19 sc edits (9395 : Short Term DISCUSSION-RECOMMENDAT IONS 11.E.1 Packet Pg. 1011 Attachment: PPT Presentation TDC Short Term Vacation Rentals BCC 6-25-19 sc edits (9395 : Short Term