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<br />September 23, 2019, Work Session – Item 3 <br />EUGENE CITY COUNCIL <br />AGENDA ITEM SUMMARY <br /> <br /> Work Session: Short-Term Rentals Meeting Date: September 23, 2019 Agenda Item Number: 3 Department: Planning and Development Staff Contact: Lydia Kaye <br />www.eugene-or.gov Contact Telephone Number: 541-682-5482 <br />ISSUE STATEMENT The City Council requested information regarding short-term rentals, specifically regarding the positive and negative effects as well as what types of regulations other cities have adopted. Council also requested regulatory options (from minimal to outright prohibition) and asked how taxes paid compare to those paid by the hotel industry. This work session will address these issues. <br />BACKGROUND Short-term rentals are generally considered rentals available for 30 days or fewer, though this definition isn’t codified locally or by the State. STRs are permitted and currently considered a residential use in the City of Eugene. STRs in single-family residential zones are required to comply with the definition of family. That is, no more than five unrelated people can stay in a single-family dwelling. There is no limit to the number of related persons that can occupy a single-family dwelling. Short-term rentals in Eugene are required to pay a Transient Room Tax. Not all cities require short-term rentals to pay such a tax. On September 4, 2019, the Land Conservation and Development Commission upheld Eugene’s interpretation that STRs are a permitted use in a single-family residential zone. LCDC discussed Eugene’s STRs in response to a Petition for an Enforcement Order against the City of Eugene. LCDC determined there was not good cause to proceed with the Enforcement Order. Short-term rentals are most commonly provided through hosting platforms such as Airbnb, VRBO (Vacation Rental by Owner), and HomeToGo. Because this phenomenon is relatively recent, there is not a large amount of data available. Much of the information is provided by the platforms. To provide an informed, impartial response to the council’s inquiries, staff utilized the services of Eugene Library staff who have prepared a thorough white-paper on the issue (Attachment A), which summarizes much of the research. Another significant reference is a document by Sadie Dinatale of the University of Oregon’s Department of Planning, Public Policy and Management (2017) which reviews STRs as they pertain to Oregon. A link to Dinatale’s document is provided in Attachment A.