COLEMAN A. YOUNG MUNICIPAL CENTER, 2 WOODWARD AVENUE, SUITE 500 DETROIT, MICHIGAN 48226?3437 PHONE 313'224'4550 CITY OF DETROIT FAX 313.224.5505 LAW DEPARTMENT September 6, 2019 Detroit City Council 1340 Coleman A. Young Municipal Center Detroit, Michigan 48226 Re: Amendment To Chapter 8, Building Construction and Property Maintenance, Article XV, Property Maintenance Code, Division 3, Requirements for Rental Property, by adding Subdivision C., Short Term Rentals, to include Sections 8-1-1001 through 8-1- 100.14 Honorable City Council: The Law Department has prepared an ordinance proposed by Council Member anee Ayers, which addresses short term rental activity within the City of Detroit. This local law will be amending the codi?ed 1984 Detroit City Code that goes into effect on October 1, 2019, speci?cally Chapter 8, Building Construction and Property Maintenance, Article XV, Property Maintenance Code, Division 3, Requirements for Rental Property, by adding Subdivision C., Short Term Rentals, to include Sections 8-1?1001 through 8?1-10014, to de?ne terms; to create a registration process, to require submission of an af?davit and an application fee; to set cr1ter1a for the application; to establish general provisions for operations of short term rentals; to establish requirements for short term rental platforms; to set forth an appeals process and to provide for violations for failure to comply with the requirements set forth in this ordinance. A copy of the ordinance, which has been approved as to form, is attached for your consideration. I look forward to discussing this important legislation with this Honorable Body. Respean?y?sub?iiae?a? i A g) M3 fat. .- it. . 1 o. incited? Mary Parisien Assistant Corporation Counsel City of Detroit Law Department Municipal Section A AN ORDINANCE to amend Chapter 8 of the 1984 Detroit City Code, Building Construction and Property Maintenance, Article XV, Property Maintenance COa?e, Division 3, Requirements for Rental Property, by adding Subdivision C, Short Term Rentals, to include Sections 8-15?1001 through 8-15?10014, to de?ne terms; to create a registration process; to require submission of an af?davit and an application fee; to set criteria for the application process; to establish general provisions for operations of short term rentals; to establish requirements for short term rental platforms; to provide for enforcement for failure to comply with the requirements set forth in this ordinance, and to provide an appeal process. i 09/05/2019 10 11 12 13 14 BY COUNCIILMEMBER AN ORDINANCE to amend Chapter 8 of the 1984 Detroit City Code, Building Construction and Properly Maintenance, Article XV, Properly Maintenance Code, Division 3, Requirements for Rental Property, by adding Subdivision C, Short Term Rentals, to include Sections 8-15-1001 through 8-15-10014, to de?ne terms; to create a registration process; to require submission of an af?davit and an application fee; to set criteria for the application process; to establish general provisions for operations of short term rentals; to establish requirements for short term rental platforms; to provide for enforcement for failure to comply with the requirements set forth in this ordinance, and to provide an appeal process. IT IS HEREBY ORDAINED BY THE PEOPLE OF THE CITY OF DETROIT THAT: Section 1. Chapter 8 of the 1984 Detroit City Code, Building Construction and Property Maintenance; Article XV, Property Maintenance Code, Division 3, Requirements for Rental Property, Subdivision C, Short Term Rentals, by-adding Sections 8-15-1001 through 8-15-100. 14, to read as followsSec-8451199} Peruse-i .. ARTICLE XV. PROPERTY MAINTENANCE CODE DIVISION 3. REQUIREMENTS FOR RENTAL PROPERTY Subdivision C. Short Term Rentals To protect the public peace, health, safety and welfare by establishing a procedure for the short term rental of private residences of City residents; to preserve the character of residential districts; to preserve the value of property in residential districts; and preserve the peace, good order, comfort, and welfare of the inhabitants of and visitors to the City. 09/05/2019 1 Sec. 8-15?1002. De?nitions. 2 For the purposes of this article, the following words and phrases shall have the meanings 3 respectively ascribed to them by this Section: 4 Apartment means a one?family living space having one or more rooms located within a 5 building, and containing a kitchen equipped with a sink and a bathroom equipped with a bathtub 6 or shower, a lavatory, and a toilet or water closet as set forth in Section 8?15?3 of this Code. 7 Applicant means a person who owns and has lawful possession of a property that is 8 for a short term rental registration. 9 Bedroom means a room that complies with the requirements set forth in Section 8-15-3 of 10 this Code. 11 Blight violation means any unlawful act, or any omission or failure to act, which is 12 designated by this Code as a blight violation pursuant to Section 41(2) of the Michigan Home Rule 13 City Act, being MCL ll7.4l( 2) and Section 8?15-3 of this Code. 14 Calendar clays means every day shown on the calendar including Saturdays, Sundays, and 15 State and bederal holidays. 16 Compensation means money or other consideration given in return for occupancy, 17 possession or use of the residence. 18 Department means the City of Detroit Buildings, Safety Engineering, and Environmental .19 Pg ?gment, .. 20 Dwelling unit means a single unit providing complete, independent living facilities 21 occupied, or intended to be occupied, in whole or in part by one or more persons, including 22 permanent space and provisions for living, cooking, eating, sanitation, and sleeping as set forth in 23 Section 8?15-5 of this Code. Al 8?02597 09/05/2019 1 Guest means any person who exercises use of the residence for lodging, or 2 accommodations in a short term rental by compensation or any consideration. 3 Host means a person that facilitates the booking of a short term rental property and for 4 purposes of this Subdivision is the person who owns the property and holds legal or equitable title 5 and resides on the premises at least nine months of the calendar year. A host must be an individual 6 and may not be a business entity, property management company or organization. 7 Hosting platform means an entity that facilitates short term rentals through advertising, or 8 any other means and from which the platform derives revenues, including, but not limited to 9 booking fees from providing or maintaining the marketplace. 10 Linear measurement means measurement between two short term rentals, measured along 11 the centerline of the roadway abutting the lots on which the short term rentals are located, at points. 12 perpendicular to the outermost portions of the short term rentals closest to each other. This spacing 13 requirement applies regardless of the side of the roadway on which the short term rental is located. 14 Local contact person means the owner or a person designated by the owner, who is 15 available 24 hours per day, seven days per week tor the purpose of: 16 (1) Being able to physically respond, as necessary, within one hour of 17 noti?cation of a complaint regarding the condition, operation, or conduct of 18 occupants of the short term rental property; and ?179?? 1.1 (2) Taking remedialmaction necessary to resolve any suchcomplaints. 20 Principal Residence Exemption means a document required for the purposes of this 21 ordinance to show proof of residency. This form can be obtained at the City of Detroit?s Assessor?s 22 AME-02597 09/05/2019 1 Radial measurement means the measurement between two properties, measured as the 2 shortest straight line connecting such properties, drawn irrespective of intervening property lines, 3 Lights-of?way, or natural or built environment. 4 Remain 0n the premises means the host is present during the entire rental period and stays 5 on the property overnight while it is utilized as a short term rental. 6 Rent or Rental means to permit, provide for, or offer possession or occupancy of a 7 residential property to a guest for compensation or any consideration. 8 Roaming Unit means a room rented as sleeping and living quarters, but without cooking 9 facilities and with or without an individual bathroom. In a suite of rooms without cooking facilities, 10 each room which provides sleeping accommodations shall be counted as one rooming unit for 11 purposes of this Subdivision. 12 Short Term Rental means any rental of a dwelling unit, or rooming unit in exchange for 13 compensation or other consideration, as lodging accommodations for at least one night, but no 14 more than 90 cumulative days of the year. 15 Sec. 6-13-1005. Kesulency requirement. 16 Any property used as a short term rental located in the City must be the host?s 17 principal residence. 18 This ordinance shall riot apply to hosts who remain on the premises when utilizing 11.9. their property as a short term . .1 1 1.1.1 -. 1 1 1 20 Sec. 8-15 100.4. Registration required. 21 Any dwelling unit or rooming unit used as a short term rental shall be registered 22 with the Department. Use of any unregistered property as a short term rental is prohibited. Al 8?02597 09/05/2019 1 Lb) A complete registration application must be submitted to the Department beginning 2 January 15th through January 31?. 3 to) Registration of a property to be used as a short term rental shall be made by the host 4 of the property, on an application provided by the Department, and shall include the following: 5 Name, address, telephone number and email address of the host for the property. 6 (2) Proof of Ownership and Residency. 7 a. Ownership shall be established by the recorded deed or land contract for the 8 property. 9 b. Residency shall be established by obtaining a Principal Residence 10 Exemption form and one of the following documents, which must list the 11 host?s name and address of the short term rental property on the document: 12 l. The host?s motor vehicle registration; 13 2. A valid driver?s license or state identification card; 14 3. Current property taX documents; 15 4. Utility bill; 16 5. Municipal Identification; 17 6. Voter registration card; or 18 7. mailing. 11 19 Q) ?Total-numberofbedrooms inthe?dwellin'g' if 7 7 20 L4) Total number of parking spaces provided for the dwelling unit or rooming unit. If 21 the applicant lives in an area that requires a permit or pass for parking, they must 22 indicate how many permits or passes are available for guests and visitors. 23 Q) Maximum number of guests that each dwelling or rooming unit can accommodate. 5 A18-02597 09/05/2019 1 L6) Name and telephone number of the 24-hour local contact person for the property. 2 Q) A short term rental property registration shall not be transferred and is valid only at 3 the short term rental property address registered with the City. 4 A short term rental property shall not be located on a lot that is within 1000 feet, 5 measured linearly, of a lot on which another short term rental property is located, unless permission 6 is given by the Department. The Department is authorized to permit short term rental properties 7 within 1000 linear feet of one another, however the Department may not extend its discretion more 8 than 10% of the 1000 linear foot requirement and all other criteria listed in this Subdivision must 9 be met by the applicant. 10 Sec. 8-15-1005. Submittal of af?davit. 11 In addition to the requirements contained in Section 8-15-1004 of this Subdivision, the 12 host shall submit an affidavit, on a form provided by the Department certifying the fOllowing: 13 LL) That the property used as a short term rental is the host?s principal residence; 14 Q) That the host is an individual and not a business entity, property management 15 company or an organizatlon; 16 That a working smoke alarm is installed in each bedroom; 17 That a working carbon monoxide detector is installed in every dwelling unit; 18 That a working ?re extinguisher is installed on each ?oor; 2 19 (Q 1 That ,the.,host will. inspect thedeviees- identi?edin Subsections??) and of? 20 this section at least every 90 days to ensure they are unexpired and in proper 21 working order; 22 (1) That the host has obtained and provided a copy of liability insurance to cover the 23 short term rental use; 09/05/2019 1 That the property is not currently in violation of this Code or any state or federal 2 housing laws and is in habitable condition; 3 (2) That host is not in arrears or in default to the City, including any unpaid, outstanding 4 and/ or delinquent property tax, income tax, special assessments and/or blight ?nes; 5 (10) That the host will make the dwelling unit or rooming unit available to the City for 6 inspection upon request from the Department; 7 a. Inspections may be conducted if there have been complaints regarding the 8 moperty; or if the Department has a reasonable basis to request an 9 inspection. 10 b. If the host refuses to allow inspections by the City, the host?s short term 11 rental property may be removed from the City?s registration list. 12 c. If a short term rental property isiremoved from the City?s registration list, 13 the Department shall provide written notice to the host thirty days prior to . 14 removal. 15 (l 1) That, it the registration is approved and issued, the host shall file a written 16 acknowledgement and agreement that the host will assume all risk and indemnify, 17 defend and hold the City harmless concerning the City?s approval of the 18 registration, the operation and maintenance of the short term rental property, and 1_ 19? 311V other matter relating to the offeringioriuse 7, 20 gig, 21 (12) Such other information as the City deems appropriate. 7 A18-02597 09/05/2019 1 Sec. 8-15-100.6. Fee. 2 A non?refundable fee shall be required for the initial registration of a short term 3 rental property under this Subdivision and shall be included on the application form. 4 Registration for a short term rental is valid for one year beginning February of 5 each year and expiring January 31?. Upon the expiration of a registered property, each applicant 6 shall pay the annual fee to renew the registration. 7 The short term rental registration of the property shall be terminated upon the 8 transfer or conveyance of the property. 9 The fee shall be published on the City?s website. 10 Sec. 8-15-100.7. Approval of application. 11 Subiect to the limitations in Section 8-1-1004. the Department may approve an 12 application for registration of a short term rental property if the applicant has completed the 13 following requirements: 14 (1) Submitted a timely and complete application and affidavit; 15 Paid the registration fee; and, 16 (3) Made improvements to the residence consistent with the application, and is 17 prepared to operate the residence as a short term rental in compliance with this 18 19 1b? Shell 20 the requirements of this Subdivision or any other applicable law, rule or regulation. or an 21 application that contains any false or incomplete information. Ara?02597 09/05/2019 1 Lc) An annual registration shall be filed with the City and, if approved, the Department 2 Will place the address on an online registry made available to the public and a Certi?cate of 3 Registration shall be provided to the applicant by the Department. 4 The Department shall provide a list of the short term rental properties registered 5 with the City to the Detroit Police Department. 6 Sec. 8-15-1008. General requirements of a short term rental. . 7 La) The requirements of this Subdivision shall apply to all short term rental properties 8 in the City, but shall not apply to principal transient accommodations listed in Chapter 36, Public 9 Accommodations, of this Code. 10 A host may not rent all or a portion of the short term rental property to more than 11 one group of guests, under more than one reservation, at a given time. 12 All lodging is to be exclusively Within the dwelling unit, Which may include a 13 carriage house, or garage apartment. Lodging is prohibited in a recreational vehicle, camper, or 14 LQQL 1'3 gd) A at one time, 16 unless a stricter limit applies pursuant to state or local laws. 17 Le) The host shall not rent the unit for more than 90 cumulative days of the calendar 18 ear. 19 Cf) Theh??t?halletsiids teallaliests in?llele?lt?lb$113424Dost inaconspicuous: 1 20 place in the short term rental property, the Certi?cate of Registration provided by the City for that 21 short term rental property. 22 Within thirty days of approval of the application, the host shall: 09/05/2019 1 (1) Using a form provided by the City, notify neighboring dwelling units within 300 2 radial feet of the short term rental property that the property is registered as a short 3 term rental with the City and provide the neighbor with the local contact person?s 4 telephone number. For multi-family dwelling units used as a short term rental, the 5 local contact person?s information shall be given to the property manager; and, 6 (2) Submit the form to the Department and con?rm by af?davit that such noti?cation 7 has been provided. 8 Utilization of property as a short term rental shall not adversely affect the 9 development, character, and enioyment of the surrounding property. 10 Q) The host or guest occupying the property shall provide an unexpired Certi?cate of 11 Registration upon request of any inquiring police of?cer or City agent and shall respond to 12 reasonable inquiries by the police of?cer, or City agent, regarding the lawful use of the short term 13 rental property. 14 Sec. Guest regulations. 15 lhe use or a short term rental property shall not generate noise, vibration, glare, 16 odors, or other effects that unreasonably interfere with any person?s enjoyment of his or her 17 residence. 18 . Guests of guests shall be allowed only between the hours of 8:00 am. and 12:00 19 Bill 20 Q1 Guests shall be. noti?ed by the host, that excessive noise is prohibited as speci?ed 21 under Chapter 16 of this Code and such violators shall be subiect to ?nes and penalties as set forth 22 in Section 8?15?100.14 of this Subdivision. 10 09/05/2019 1 Sec. 8-15-100.10. Local contacts, 2 A short term rental property host must identifv an individual or individuals to serve 3 as a local contact and respond to emergencv situations, if the host is not on the premises. 4 A local contact person designated under Subsection (ai of this section must be 5 phvsicallv available to respond within one hour after being noti?ed of an emergency by a guest of 6 the short term rental propertv, bv a Citv of Detroit emplovee, or bv an individual entitled to notice- 7 of the contact information. 8 Lc) If there is a change related to a local contact person, the host of the short term rental 9 must provide updated or new information to the Department and neighbors within 300 radial feet 10 of the short term rental propertv, in writing within two weeks. If the property is used as short term 11 rental within the two weeks required of the host to provide the local contact information, the host 12 must notifv the Department and neighbors sooner with the updated information prior to using it as 13 a short term rental. 14 The host shall provide guests the local contact information, including a phone 15 number of the local contacr with responsrbilitv to take action to resolve anv complaints regarding 16 the condition, operation or maintenance of the short term rental propertv. 17 Sec; Hosting platform requirements. 18 A hosting platform Shall not offer or accept a fee for?bookinga?propertv that is not :19 rgmal with thehosting platform shall provide to the Department, within 45 davs of the effective 21 date of this ordinance, contact information for an employee or representative that will respond to 22 requests for information or verification of violations of this Subdivision. Hosting platforms 11 Al8-02597 09/05/2019 1 established after the effective date of this ordinance shall provide this information prior to 2 facilitating short term rentals in the City. 3 The hosting platform shall provide a report to the Department on a quarterly basis 4 in an electronic format, stating: 5 Q) The short term rental properties maintained, authorized, facilitated or advertised by 6 the hosting platform Within the City of Detroit for the applicable reporting period; 7 Q) The location of the short term rental properties listed on the hosting platform?s 8 Mum 9 L3) The total number of nights that the short term rental was occupied during the 10 period; and: . 11 L4) The amount of total compensation for each stay. 12 Sec. 845-10012. Vested rights. 13 Except in instances Where constitutional principles or binding state or federal laws 14 otherwise provide, the provisions of this Subdivision and any ordinances or other measures 15 concerning short term rentals are not a grant of vested rights to continue as a short term rental 16 moperty indefinitely. Any short term rental property use and registration are subiect to provisions 17 of this Subdivision and other ordinances, resolutions, or other City measures concerning short term 18 rental properties that may be enacted or adopted at a later date, even though such ordinances, A A 19 "resolutions, or other City measures may change the terms, conditions,? allowancegor-duration for? 20 short term rental property use, including but not limited to those that may terminate some or all 21 short term rental property uses in the City. 12 09/05/2019 1 Sec. 8-15-100.13. Violations; removal from the City?s short term rental registry and 2 reapplication. 3 In accordance with Section 41(3) of the Michigan Home Rule City Act, being MCL 4 117.41(4) and Sections and 3-2-1, of the 1984 Detroit City Code, a violation of this 5 Subdivision is deemed to be a blight violation. 6 Any person, including, but not limited to: hosts, guests, or hosting platforms, 7 Violating any section of this Subdivision may be issued a blight violation notice for each day that 8 the violation continues. 9 (Q A host may be removed from the City?s short term rental registry in the event that: 10 L1) An applicant provided false information on the application; 11 Q) The short term rental property is operated as a nuisance, with excessive noise, trash 12 or traffic 13 The continuation of the short term rental property presents a threat to public health 14 or safety; 15 (4) The host violates regulations of this Code; or, 16 The host is found responsible for more than three incidences that resulted in a blight 17 violation for the short term rental property in a calendar year. 18 If a short term rental property has been removed from the City?s registry, the -1 .19., 7 Department shall .notdapprovema new application same" 20 moperty for six months following the removal. After the six months has expired, the host may 21 apply for the short term rental property registration again. 13 AIS-02597 09/05/2019 1 Sec. 8-15-100.14. Procedures for denial or removal of a short term rental registration. 2 The Department shall deny an application for a short term rental. including the 3 renewal of an existing registration. by mailing a written notice to the applicant that states the basis 4 for the denial. Any applicant aggrieved by the denial of a short term rental registration shall be 5 entitled to a hearing before the Director of the Department or a designated hearing of?cer. A 6 request for a hearing on the registration denial shall be in writing and addressed to the Director of 7 the Department, and must be made within 30 days of the mailing of the notice of denial to the 8 applicant. A hearing pursuant to a timely request shall be scheduled at the earliest possible date. 9 but not later than 30 days after the receipt of the request for a hearing. The applicant and the 10 appropriate City departments shall be noti?ed of the hearing by the Department at least seven days 11 prior to the hearing. The hearing may be adiourned only by agreement of the parties or. upon cause 12 shown. by order of the Director or hearing officer. In the absence of a request for a hearing on the 13 denial of a short term rental registration. the denial shall be deemed ?nal. 14 up Where the Department is presented with evidence that shows that cause exists to 15 deny or remmze a short term rental registration pursuant this Subdivrsron, the Department shall 16 notify the host. in writing, of its intent to deny or remove the registration and the basis therefore. . 17 The letter from the Department shall direct the host to show cause at a hearing before the Director 18 of the Department or a designated hearing of?cer, why the registration should not be denied or 19 removed The notice shall-.. 20 be scheduled not less than seven days from the date of the mailing of the notice. 21 Q) Where the Director of the Department makes a determination that there is an 22 immediate threat to the public health or safety and welfare as a result of the continued operation 23 of a short term rental, the Director is authorized to immediately remove a registration. The host 14 AIS-02597 09/05/2019 1 shall be noti?ed of the removal by the Department, by mail and if possible in person, with the 2 notice specifying the basis for the emergency removal of the registration. The Department shall 3 schedule a show cause hearing within seven days, provided, that upon a written request to the 4 Department, the host shall be entitled to a hearing within 48 hours of the receipt of the written 5 notice in order to ascertain whether the emergency removal of the registration shall continue. 6 At a hearing pursuant to this Section, the Department shall present relevant 7 evidence in support of the denial or removal of the short term rental registration. The applicant or 8 host shall be given an opportunity at the hearing to present relevant evidence in support of the 9 issuance or continuation of the registration. 10 Where the host fails to appear and show cause why the registration should not be 11 denied or removed in accordance with this Section, the registration shall be removed effective at 12 the end of the City?s business day on which the show cause hearing was regularly scheduled. 13 A hearing that is held pursuant to this Section shall be conducted in accordance 14 with the rules for conducting administrative hearings adopted in accordance with Section 2?111 of 1% the 902 Detroit pity Charter. 16 (El Notice. provided for in this Section shall be sent by certi?ed mail, return receipt 17 requested, and regular mail to the applicant or host at the address on record with the Department. 18 Secs. 8-15-100.15 -8-15-100. 30 Reserved. 15 Al 8-02597 09/05/2019 Section 2. This ordinance is hereby declared necessary to preserve the public peace, health, safety, and welfare of the People of the City of Detroit. Section 3. All ordinances, or parts of ordinances, that con?ict with this ordinance are repealed. Section 4. In the event this ordinance is passed by two?thirds majority of City Council Members serving, it shall be given immediate effect and become effective upon publication in accordance with Section 4-118 of the 2012 Detroit City Charter. Where this ordinance is passed by less than a two?thirds majority of City Council Members serving, it shall become effective on the thirtieth (30) day after enactment, or on the first business day thereafter, in accordance with Section 4-118 of the 2012 Detroit City Charter. Approved as to form: Lawrence T. Garcia Corporation Counsel 16 09/05/2019 Dim Eta