CHATTANOOOGA, Tenn. — UPDATE (May 16th):
Chattanooga City Council approved administration-sponsored legislation Tuesday that will reform short term vacation rental rules.
The city says operators of homestays, or STVRs in which the homeowner lives full-time in the dwelling, will be allowed in every commercial zone that allows hotels, as well as any residential zone in the existing short-term vacation rental overlay, which encompasses much of the downtown footprint.
The city says all currently permitted STVRs will be grandfathered in and those permits may be renewed annually and property permits may be transferred between owners.
While absentee STVRs will also be allowed in any commercial district that allows a hotel, they will not be permitted in a residential zone.
Saturation within multi-family residential buildings will be limited at 25% of total dwellings.
The rules also require that a local contact be available 24 hours per day by phone, and they must be able to arrive in person within two hours in case of a safety issue or noise complaint.
Lastly, the new rules provide that any property rezoned from residential to commercial will be subject to an 18-month cooling-off period before an applicant may apply for a STVR permit, which is designed to disincentivize property owners from circumventing the new law.
All alleged violations of any STVR rules will go before an administrative hearing officer, who can charge up to $500 per day for violations of the new ordinance.
Zones that allow absentee STVR permits:
- C-2
- C-3
- C-4
- C-5
- UGC
- CC
- IX
- RF
- RV
- CX
- SH
Zones that allow homestays:
- All of the above, plus any residence within the STVR overlay (pictured below)
EARLIER (May 10th):
Changes to Chattanooga’s policy on short term vacation rentals was approved on first reading by the city council at their Tuesday night meeting.
After studying the issue over Airbnbs and similar rentals for a year, the city council unanimously approved their amended plan.
Non-owner occupied rentals will be limited to commercial zones.
Owner occupied units can be in residential zones except outside of the overlay area. The overlay was created when some council members wanted to opt out of having any rentals in their districts.
District 1 council member Chip Henderson acted relieved that the plan was finally approved.
“It sort of took a while but its come full circle back to the floor now,” Henderson said. “While it doesn’t include all zone at this time. This legislation does open the door to take short term vacation rentals in the citywide. I appreciate the work that this committee did on this legislation.”
With tongue in cheek District 4 council member Darren Ledford clarified Henderson’s statement during the meeting.
“Let me clarify when we say take it citywide that’s to say, in commercial zones. Before district 4 residents start to crowd my in-box,” Ledford said.
According to the city documents, the rental needs to be in code compliance and the operator needs a certificate issued yearly by the City of Chattanooga Development Review and Permitting Division allowing the STVR.
A short-term vacation rental is not permitted to operate on property or
within structures that are part of an Affordable Housing PILOT Program.
A short-term vacation rental may include a primary dwelling unit or a secondary (accessory) dwelling unit but not both structures on one lot.