CHATTANOOGA, TN – On Tuesday, September 19, 2023, the city announced its plan to take a decisive stand against illegal operators of short-term vacation rentals (STVRs). The upcoming Wednesday will mark the issuance of the city’s inaugural “violation orders” to 30 individuals engaged in unauthorized STVR activities.
Chris Anderson, a spokesperson from the mayor’s office, revealed that a total of 268 violators have been identified within the city’s jurisdiction. The city’s strategy is to dispatch 30 notices per week until all of these violators have been officially notified of their transgressions.
Recipients of these notices will be summoned before the newly established Administrative Hearing Officer (AHO) within the city’s administrative framework. There, they will potentially face hefty penalties amounting to $500 per day until they bring their operations into compliance with the law.
Intriguingly, Anderson disclosed that Mike Mallen, the attorney appointed as AHO in June, has faced personal challenges regarding family health matters. Consequently, the city has made the decision to enlist attorney Jim Exum as a second AHO to expedite the process. These AHOs will be compensated on an hourly basis for their services.
Attorney Exum is no stranger to this role, as he currently serves as the AHO for other local municipalities, including Collegedale, Soddy Daisy, and Red Bank.
However, this decision was met with some concern among council members, who expressed their disappointment over the AHO not utilizing the available City Court space when it’s not in use. Additionally, they were informed that the City Court Clerk’s Office would not be responsible for handling the associated paperwork.
Mr. Anderson and City Attorney Phil Noblett clarified that legal issues were under scrutiny regarding the use of City Court facilities for this new administrative position.
The inaugural hearing, scheduled for November 15, will take place at the Development Resource Center located on Market Street. Attorney Exum’s dedicated team will manage the essential paperwork for the proceedings.
Councilwoman Berz strongly criticized the decision not to utilize City Court, stating, “This is ridiculous. We call the shots. That court is only being used half the day.”
Councilwoman Jenny Hill expressed concerns about potential budgetary impacts, emphasizing that this initiative was not intended to drain the city’s finances. The council members conveyed a clear message that residents were dissatisfied with lenient enforcement and that robust measures were required.
Councilman Darrin Ledford urged swift action, recognizing the mounting caseload that needed to be addressed urgently. According to Mr. Anderson, several measures have already been put in place, including the development of new AHO forms.
Furthermore, Mr. Anderson highlighted that since the end of a prolonged moratorium, a total of 201 permits have been granted for STVRs. Interestingly, the surge in STVRs in certain areas has led to increased competition, resulting in some rental rates experiencing a decline.