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December 11, 2019, Work Session – Item 2 <br />At the September 23 work session, questions were raised regarding staff’s ability to determine if the intermediary platforms, or businesses like Zillow, began to purchase dwellings to use solely for the purpose of short-term rentals. Staff contacted Lane County Assessment and Taxation to determine if the purchase is not made in the businesses name (i.e., purchased through an LLC), can staff determine the company behind the purchase. The Assessment and Taxation department indicated that there isn’t a means to uncover these types of transactions unless the businesses used their parent company names. Staff note that the program will be complaint based, so if City Council adopts an ordinance that requires owner-occupancy and a community member believes a property is being used as a short-term rental that is not owner occupied, staff would begin an investigation. These companies would not be able to receive a license for a short-term rental because there would not be an owner verified through the license process, and enforcement would proceed. <br />Policy Considerations One of the considerations for council is how to address existing short-term rentals if the regulations are adopted. Of primary concern are property owners who may have several homes that are purchased for short-term rentals that are not owner occupied. Staff recommends consideration of a transition period which will allow these property owners to either arrange for the properties to be converted to long-term rentals, or to sell the properties. Below are two options for discussion: Grandfather existing short-term rentals for one year (or alternative period of time).These businesses would be required to obtain a temporary transitional license if theycan demonstrate they were established prior to adoption of the ordinance. After theprescribed transition period, the transitional license will expire.The second option would be to grandfather any short-term rental in existence prior toadoption of the ordinance, so long as the property remains in the same ownership.Another consideration is whether council supports having an allowance for owners to rent their properties for up to two weeks per year without being required to obtain a short-term rental license. This would allow people who are interested in renting their homes for isolated events, such as the 2021 World Track & Field Championships, to do so without needing to go through the licensure process. <br />PREVIOUS COUNCIL DIRECTION September 23, 2019, Work Session Council directed staff to draft an ordinance regulating short-term rentals through the Business License Program. <br />COUNCIL OPTIONS 1.Direct the City Manager to make specific changes to the draft ordinance and to schedule apublic hearing to hear testimony on the draft ordinance.2.Direct the City Manager to make specific changes to the draft ordinance and return for anadditional work session.3.Take no action at this work session.