Title
Public Hearing - Amend Phoenix City Code - Ordinance Adoption - Chapter 10, Article XVI - Short-Term Vacation Rental (Ordinance G-7323) - Citywide
Description
Request to hold a public hearing on a proposed amendment to the City Code sections 10-197 and 10-204 to Chapter 10, Article XVI related to Short-Term Vacation Rentals to incorporate Arizona Revised Statute (A.R.S.) 9-500.39 requirements for obtaining a Short-Term Rental (STR) Permit.
Report
Summary
In 2016, the Arizona Legislature removed the ability of local jurisdictions to regulate short-term rental units and required that the use be treated the same as any long-term residential use of a property. Due to significant negative impacts based upon the experience of residents living around these short-term rental uses, the Arizona Legislature enacted A.R.S. 9-500.39 authorizing municipalities to create provisions for registrations of short-term vacation rentals. The City of Phoenix adopted Short-Term Vacation Rental Ordinance (G-6653) to implement the requirement for STR owners, or designees, to register each STR rental property with the City of Phoenix, so that responsible party contact information was available if there were problems resulting from a particular short-term rental unit.
In 2022, the Arizona Legislature approved Senate Bill 1168 (SB1168) amending A.R.S. 9-500.39, which authorized cities and towns to create a very limited permit/license process to help gather better data regarding short-term rentals with minimal modifications to the ability to regulate these types of uses. The City of Phoenix adopted an amendment to the Short-Term Vacation Rental Ordinance (G-7156) to implement the requirement for STR owners, or designees, to apply for a STR permit and meet specific operating requirements prior to the issuance of a permit as a condition for operating a short-term rental property.
In 2024, the Arizona Legislature approved House Bill 2720 (HB2720) amending A.R.S. 9-500.39, which authorized cities and towns to require the owner of a property where an accessory dwelling unit is used as an short term rental to reside on the property but only if the accessory dwelling unit was built after September 14, 2024, and either the owner did not previously have the right to build an accessory dwelling unit on their property or the three-year A.R.S. 12-1134 statute of limitations has passed.
Staff recommends approval of the proposed amendment to the City Code sections 10-197 and 10-204 to Chapter 10, Article XVI related to Short-Term Vacation Rentals to incorporate Arizona Revised Statute (A.R.S.) 9-500.39(B)(9) requirements for obtaining a STR Permit.
Department
Responsible Department
This item is submitted by Deputy City Manager Alan Stephenson and the Planning and Development Department.