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Third time around for short-term rental rules in Lake Placid-N. Elba

LAKE PLACID — The latest version of a local law designed to regulate short-term vacation rentals has been drafted.

The law, jointly proposed by the North Elba Town Council and the Lake Placid Village Board of Trustees, would require those who rent out their properties on sites such as Airbnb, VRBO and HomeAway to apply for and secure a permit. They must also limit the number of visitors who stay on site and ensure there’s adequate off-street parking and septic capacity to serve those visitors.

If property owners don’t do these things, they could be subject to a fine of $350 to $1,000 after the first offense. For a second offense within five years, the fine would be $1,000 to $3,000.

Among the biggest changes is that in this latest version of the law, town and village officials have differentiated between short-term rentals that are “owner-occupied” and those that aren’t.

People who live on their property for “at least 275 days per calendar year” and are “on premises from 10 p.m. and 6 a.m. during the term of each rental” would not be required to obtain a permit prior to listing their property. They would also not have to adhere to several other regulations, including maximum occupancy requirements.

A three-night minimum stay requirement was the most controversial aspect of the first version of the law. That was dropped in March 2019. There is also no maximum for night stays.

A survey conducted by Saratoga Springs-based consulting firm Camoin 310 in the last few months shows that members of this community see the ability of permanent residents to make additional income as “the most significant benefit” of short-term rentals.

Now backed by data

This is the third time in the past year that local officials will attempt to adopt short-term rental regulations. The town and village boards proposed a law designed to regulate short-term vacation rentals in January 2019. A public hearing followed, then another version of the law last August, with another public hearing after that.

But this new version has something previous ones didn’t have: a foundation upon data, provided in recent affordable housing and short-term rental studies.

Concerns over the number of short-term rentals in the village, particularly the increasing number in traditionally residential neighborhoods, have continued to mount for more than a decade. Those concerns have come to a head in the last few years as issues spurred by Lake Placid’s affordable housing crisis — such as local business owners’ difficulties with attracting and retaining employees, who often struggle to find a place to live here — have gradually become more pronounced.

But while there was ample anecdotal evidence of the impact of short-term rentals before, from residents who have experienced the effects first-hand, there is now data that helps to fill in some gaps.

Camoin 310’s study shows that “there is no general consensus in the literature as to the impact of short-term rentals on housing prices”; however, the report goes on to say that “there is stronger evidence in the literature that short-term rentals reduce long-term housing and/or rental supply.”

A public hearing on this law has not yet been scheduled. A copy of the latest version of the law has not yet been shared with the public.

More details

In addition to the creation of a permit system, and the creation of a new five-member short-term rental appeals board to deal with disputes, the law includes a variety of other regulations.

The law imposes a maximum occupancy period. If adopted, no short-term rental property could be rented for more than 90 days each calendar year. A rental that’s occupied for 14 days or less in a calendar year wouldn’t have to pay a permit fee but would still need a permit. A permit fee structure is expected to be adopted separate from this law.

Owners of short-term rental properties would be required to apply for a permit that would be valid for two years, but every year owners would be required to pay a permit fee and sign a sworn statement with the Code Enforcement Office to confirm that their rental remains in compliance with the law. Only one permit can be issued for each property.

Each rental owner would be required, as part of the application, to provide the Code Enforcement Office with a site plan showing the location of required parking spaces and, if the property isn’t served by a public sewer system, the location of the property’s septic system and leach field. If the septic system is private, an inspection report dated within 90 days of the owner’s permit application would be required. The owner, or a proxy, would have to provide their contact information. Either the owner or a property manager would have to be located within 60 minutes of the rental by car, and would have to be available around the clock, seven days a week.

Property owners would be required to prominently display their permit and provide renters with a packet outlining local rules, as well as “Good Neighbor Guidelines.”

The law also imposes some restrictions on visitors’ use of rental properties. For example, renters would not be allowed to camp overnight in tents outside on the property, and any outdoor events hosted on the property would need to end by 10 p.m.

The new version of the law also gives the town council the authority, without the village board’s approval, to adopt revisions to the joint law that apply only to the town land outside the village. The village board would have the same authority on village land. Town and village officials have indicated that there may be different maximum occupancy limits set for village land and town land outside of the village in the future.

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