did house bill 4722 pass in michigan

HB 4722 is supported by Airbnb, the Michigan Association of Realtors and the Rental Property Owners Association. Register now for our free OneVote public service or GAITS Pro trial account and you can begin tracking this and other legislation, all driven by the real-time data of the LegiScan API. One issue hinges on whether short-term rentals are considered commercial use. The definition of common ownership has a loophole big enough to drive a semi through it, Rigterink said. The measure approved by the House is a solid compromise that provides both certainty for private property owners across the state and flexibility for local municipalities that deserve to have some control over the planning and zoning of their communities, Lightner said in a statement. Proponents of the bill say that its passage will help property owners earn extra income and will give tourists more lodging options. Its skyrocketed in popularity.. Summary as Introduced (5/17/2021) This document analyzes: HB4722 Summary as Reported from Committee (6/24/2021) This document analyzes: HB4722 Summary as Passed by the House (11/2/2021) This document analyzes: HB4722 Senate Fiscal Analysis SUMMARY OF BILL REPORTED FROM COMMITTEE (Date Completed: 10-10-22) This document analyzes: HB4722 History replaced it as a 20-person Airbnb that completely wrecked our neighborhood, he said. 42, District The heated debate continues in New Buffalo, a Southwest Michigan community that recently extended a moratorium on new short-term rental licenses until Dec. 13. Its a misnomer; its a fallacious argument, Metcalf said, noting his Airbnbs often help subsidize the units he rents out to year-round workers. Humphrey said more than 20 community leaders in lakeshore communities in Southwest Michigan have united to oppose the legislation by adopting formal resolutions and contacting legislators. Holland's regulations on short-term rentals were adoptedlast year after the pilot program was deemed a success. These are some of the issues created by short-term vacation rentals, according to local government and municipal officials who oppose recent state legislation that would preempt local regulations on short-term rentals. John Humphrey has been outspoken about his opposition to the rise of Airbnb-style rentals in his community, which held several packed public meetings in 2021 as the City Council took up the issue. Petoskey has an ordinance that permits short-term rentals in a business district with a city license. By common sense, these are commercial uses of property, said Keith Van Beek, city manager of Holland. If we let it go hog wild, we wont have neighborhoods.. Who determines the 30% of property owners eligible to have a short-term rental while denying the other 70% is it based on location, a first-come, first-serve application process, housing density or other factors? We have put forth compromise after compromise, Allen said. Gretchen Whitmer asked for at the start of the year with votes on bills to establish a . In 2018, when Holland began a pilot program allowing short-term rentals in residential neighborhoods, city officials set a limit of 25 non-owner occupied units. Corporate media arent cutting it. In addition, it also codifies the right for counties, cities and townships to continue to, or begin to, require the issuance of a locally issued STR license, limit local licenses to two per person, and implement license enforcement policies to meet the communitys standards. Proponents say that will prevent outside investors and corporations from owning too many units, but opponents disagree. Lawmakers and opposing groups have worked to, that recognizes the difference between homeowners who rent their properties a few weekends a year and those who buy up properties to operate them as mini hotels.. HB 4722 specifically states short-term rentals are not a commercial use of property. DEIJ Policy | Ethics Policy | Privacy Policy. - Amendments made by the Senate will be red, such as: Senate amended text. Jennifer Rigterink, assistant director of state and federal affairs for the Michigan Municipal League, one organization that opposes the legislation. Contact Editor Susan Demas for questions: info@michiganadvance.com. We recognize from employers and those that are looking for housing that there just are limited housing options available to people, he said. House Bill 4722, introduced by Rep. Sarah Lightner, R-Springport Township, passed 55-48 after the House remained in session past 2 a.m. that strips power from local governments to control short-term rentals and 79% believe they should be taxed the same as hotels. GET THE MORNING HEADLINES DELIVERED TO YOUR INBOX, by Marla R. Miller, Michigan Advance November 6, 2021. However, the bill loosely defines common ownership as ownership in whole or in part by the same individual, individuals, or legal entity. Consequently, it seems that an individual could potentially circumvent a limit on the number of short-term rental units under common ownership by forming business entities to own additional units. "I was very surprised it moved on [Oct. 27] in the way and fashion it did," said Jennifer Rigterink, a legislative associate with the Michigan Municipal League (MML), which opposes the bill. A statement from President Joe Biden's administration says that the bill would put LGBTQ students at a higher risk. Dan Gilmartin, Michigan Municipal League CEO, called the push for a ban against bans a scare tactic during a Monday morning press conference. The substitutes would keep short-term rentals from being zoned out of existence, but would not stop local ordinances from regulating noise, traffic, advertising and capacity. Sign up here While those opposed to the bill say communities arent banning outright short-term rentals, Skorup argues that municipalities like Holland Township and St. Clair Shores essentially have full bans through their zoning. We have had a long history of dealing with short-term rentals and a set of regulations that are strongly supported by our community.. The rental of residential property is important to Michigan second home markets and in urban areas around event destinations. No legislative action had been taken on HB 4722 in [] Short-term rentals also are popular among tourists throughout Michigan. Other studies show short-term rentals deplete housing stock and increase rent for long-term renters. If you want to open a mechanic shop in your garage, you cant do that, she said. That seems to be lost.. Toilet paper wasnt the only shortage caused by the pandemic. "Legislation should not politicize our . People who work here need to have a place to live, McGinnis said. Its now up to the Senate to move on the bill in the lame duck session following the Nov. 8 election. If you purchase a product or register for an account through one of the links on our site, we may receive compensation. Local governments would also be able to set limits on the number of short-term rentals, so long as the limit wasnt less than 30 percent of existing residential units in a municipality. 206b. They havent fully banned them, but youre banning it for the vast majority of property owners, Skorup said. House Bill 4722, introduced by Rep. Sarah Lightner, R-Springport Township, passed 55-48 after the House remained in session past 2 a.m. The average limit is 6.4% of the housing stock based on other Leelanau County communities that have short-term rental caps. Saying that were going to let nuisances happen, and then well let people issue a noise violation. A 30% reduction in use during the winter months has other implications. But having too many short-term rentals on one residential street causes unintended problems. The village issued a. moratorium on short-term rental licenses in June and recently extended it for an additional 90 days. Local government officials say they're disappointed after the state House passed a bill that allows homeowners to set up short term rentals where ever they own property. Please see our republishing guidelines for use of photos and graphics. (AP Photo/Patrick Semansky)AP. The bill is supported by Michigan Realtors, a real-estate advocacy group, and the Mackinac Center for Public Policy, a conservative think tank. 105, District Were the ones that live here and try to make it a livable place for everybody and set the rules and priorities.. Airbnb says HB 4722 and HB 5605 would modernize Michigans regulation of short-term rentals. View Latest Bill Text Sign In to Follow Effective land-use planning results in fewer conflicts.. We know from other communities, what this could have the impact of doing is taking either single-family homes that are owner-occupied, or potentially long-term rental properties, and converting them away from those uses, which are homes for long-term residents, whether they be owner-occupied or rentals, and convert them into these short-term rental uses, which only puts additional pressure on what we know is a very tight housing market, particularly a very tight affordable housing market.. Beckett & Raeder report, the village currently has 61 operating short-term rentals, which represents 13% of the communitys total housing stock. Daniel Krason / Shutterstock.com. Homes are being purchased and not available when they have a business locate in their community, Allen said. In todays digital economy, its relatively easy for an outside investor or homeowner to advertise their property as a short-term rental. Michigan Restaurant & Lodging Association oppose the legislation and have offered compromises. Airbnb will continue to work with leaders across the state on balanced rules that protect property rights, help address community concerns, and support the states tourism economy.. While the Legislature is currently controlled by Republicans, Democrats won both chambers, which adds to the uncertainty of what might be on the last session agendas of the year. The ordinance has been in place since 2014, prohibiting new vacation rentals in residential districts, but Petoskey still has a problem with STRs operating illegally. She voted no last week. They [legislators] dont understand that people need to live here to pay for public safety and infrastructure.. All rights reserved (About Us). The state wants to come in and say, We know better, preempting them from the work that they have done.. Zoning is intended to regulate conflicting land uses and problems that ensue, and communities zone based on master plans, local needs, and the Michigan Zoning Enabling Act. The bill was referred to the Senate Committee on Regulatory Reform. Local elected officials know better what is good for a small community such as ours rather than it being dictated to us out of Lansing.. Rigterink disagrees and said that is the whole point of zoning for conflicting uses. Taking away local control ties our hands on this, and it could be many other things, Carruthers said. HB 4722 would allow limited authority to oversee short-term rentals in some scenarios including if local noise and traffic ordinances are violated and if the number of occupants in a unit is more than permitted although this would have to take place on an individual basis for units. Lightner first introduced the bipartisan legislation back in April. (1) For the purposes of zoning, all of the following apply to the rental of a dwelling, including, but not Under the substitute bill, local governments may limit the number of short-term rentals under a common owner to two or more. The legislation prohibits local municipalities from adopting zoning regulations that outright ban short-term rentals or make them subject to a special-use or conditional-use permit. 23 Mika Meyers Attorneys Listed in Best Lawyers. Several communities in Ottawa County have regulations on short-term rentals or continue to examine the issue, while also opposing the bill. They have said that communities are banning short-term rentals. More: Low income housing, single-family homes remain focus in Holland, More: Park Township hires firm for short-term rental help. Each community is different. HB 4722 would amend the Michigan Zoning Enabling Act of 2006 to define and add the term "short-term rental" to the Code as a residential use of property that is permitted in all residential zoning districts. I do support the [HB 4722] legislation, but I think that a local governments ability to police these, which still seems to be preserved in that legislation, is still the most important angle, said, Jason A. Metcalf, an attorney and short-term rental owner in Suttons Bay who has been monitoring the developments at the local and state level. 104, District I was very surprised it moved on [Oct. 27] in the way and fashion it did, said Jennifer Rigterink, a legislative associate with the Michigan Municipal League (MML), which opposes the bill. It just doesnt make sense and it does nothing to protect against the rights of the property owners that live around that vacation rental.. When it comes to the property rights issue, there seems to be a lack of acknowledgement that everybody has property rights, Rigterink told the, . , Each community is different. their names from the bill, in a somewhat unusual move. Data on Open States is updated periodically throughout the day from the official website of the Michigan Legislature. Each one has different needs and different makeups. He rallied STR owners to attend Suttons Bay council meetings on the issue. "It was disappointing, then, to see the House of Representatives work through the night to pass legislation that will make the hotel industry's recovery that much harder.". Community Rules apply to all content you upload or otherwise submit to this site. The city also launched a pilot program for non-owner occupied short-term rentals in residential areas with various regulations that was adopted as part of its local zoning ordinance. The reason it is a big deal now is the internet and Airbnb, he added. Nobody knew they were voting on it.. And several destination cities, including Detroit and Traverse City, prohibit short-term rentals in residentially zoned areas. The current ordinance permits short-term rentals in residential areas. The practice helps Michigan property owners cover the cost of property taxes and maintenance. The legislation prohibits local municipalities from adopting zoning regulations that outright ban short-term rentals or make them subject to a special-use or conditional-use permit. House Bill 4722 has four main components: it would bar local governments from enacting or enforcing ordinances that ban short-term rentals; it would place a cap on the total number of short-term rentals to 30 percent of all residential units; local governments could limit an owner or ownership group to two short-term rental properties; Multiply that by five, and theyre much more likely to occur near water, and those neighborhoods could become completely overrun with short-term rentals and thats just not good for our town.. May 24, 2021. During the House session, which lasted from 1:30 p.m. Tuesday, October 26 until a few hours past midnight, the bill was read to the House for its second time, then amended with a substitute bill, and then the substitute bill was presented to the House for the bills required third reading before the full chamber could vote on it. But opponents say short-term rentals should be regulated at the local level. House Bill 4722, introduced by Rep. Sarah Lightner, R-Springport, would amend the Michigan Zoning Enabling Act to allow short-term rentals, units where guests reside for not more than 30 days, to . Ottawa County has also opposed it. One of the biggest challenges facing Traverse City is having enough quality housing for a range of incomes and demographics, including families, retirees, single individuals, young professionals and a growing homeless population. Neighboring Park Township is in the middle of a months-long study of its short-term rental situation as its planning commission explores potential regulations of the rentals, which have generated resident complaints. More: State bills would take away local control for short-term rentals, prompting local opposition, More: Local groups hoping for 'compromise' with Legislature over short-term rental regulation. Short-term rentals incur a much larger cost due to the number of people they bring in, Humphrey said. or continue to examine the issue, while also opposing the bill. Like any land use, too much of one thing becomes a negative impact on other things.. The people in Lansing have no concept about what this bill will do to local municipalities.. New Buffalo Mayor John Humphrey has been outspoken about his opposition to the rise of Airbnb-style rentals in his community, which held several packed public meetings in 2021 as the City Council took up the issue. You cannot approach this as a one-size-fits-all, she told the Advance Thursday. The new version of the bill contains an exemption for existing zoning ordinance provisions that regulate the rental of dwellings by overlay district without distinction between short-term rentals and rentals for longer terms if the ordinance provisions were in place as of July 11, 2019 and initiated by petition. My biggest fear is housing and apartments for our seasonal and everyday laborers in Petoskey; that it will take up those spaces with short-term rentals knowing someone can make one months rent in a week during the busy season of the year, said Petoskey Mayor John Murphy. An amendment offered before Wednesdays vote would also allow local units to set limits for how many short-term rentals a property owner could operate, with a limit of no fewer than two. Those looking for a compromise say HB 4722 fails to address a key issue, which is how to distinguish between homeowners with a second home who occasionally rent it out versus owners and investors that buy up homes and operate them from out-of-state as for-profit enterprises. In addition, many lakeshore communities are grappling with a shortage of available, affordable, year-round housing for service-industry workers or people who want to relocate to the community for employment. The city has offered incentives to developers to build more affordable units, but even those are becoming short-term rentals in commercially zoned areas. . The city even took an illegal STR operator to court after they were cited numerous times and won. We ask that you edit only for style or to shorten, provide proper attribution and link to our web site. surprised many who have followed the legislation. Michigan Advance maintains editorial independence. We feel local communities are best equipped to deal with planning and zoning issues. In 2017, the city developed a. in response to complaints from residents who showed up at public meetings. From the township's perspective, short-term rentals are prohibited, and we believe that any action that takes away local zoning authority from the local unit of government is not good legislation, said Township Manager Steve Bulthuis. lived the experience in his own neighborhood. Access to affordable housing has been a prevalent issue throughout greater-Holland. A local unit of government shall not adopt or enforce zoning ordinance provisions that have the effect of prohibiting short-term rentals," the bill states. The bill was referred to the Senate Committee on Regulatory Reform. The bill would not prohibit zoning ordinance provisions that regulate noise, advertising, traffic, or other nuisances related to the rental of a dwelling, but only if such regulations are applied consistently to owner-occupied residences as well. In a late-night vote last week, the Michigan House of Representatives approved a bill that essentially nullifies local ordinances on short-term rentals which have become increasingly popular with the growth of companies like Airbnb and VRBO in the name of protecting private property rights. He was surprised about the late-night vote on the bill. The Republican-led Senate Regulatory Reform Committee in late September moved the legislation to the floor in a 6-3 vote. Holland is another West Michigan community that has enacted local ordinances to manage short-term rentals, permitting them in commercially zoned areas such as the downtown. Use of and/or registration on any portion of this site constitutes acceptance of our User Agreement (updated 4/4/2023), Privacy Policy and Cookie Statement, and Your Privacy Choices and Rights (updated 1/26/2023). Short-term rentals are more prevalent in lakeshore communities that attract tourists and those that host sporting events, but they also are located on small inland lakes and in rural parts of the Upper Peninsula. in residential areas with various regulations that was adopted as part of its local zoning ordinance. She lives in Norton Shores and her work can be found at marlarmiller.com. The bills remove local governments' ability to outright ban. HB 4722 Michigan House Bill 2021-2022 Regular Session Introduced in House Apr 27, 2021 Passed House Oct 27, 2021 Senate Governor Land use: zoning and growth management; Michigan zoning enabling act; amend to include short-term rentals. Amends 2006 PA 110 (MCL 125.3101 - 125.3702) by adding sec. So that doesnt actually stop the nuisance from happening.. Posted on October 27, 2021 by Dene Westbrook. The following bill formatting applies to the 2019-2020 session: - New language in an amendatory bill will be shown in bold - Language to be removed will be stricken. destroying our town for the last seven years. He moved to New Buffalo. 206b. Humphrey agrees, saying New Buffalo has 150 rentals with active licenses plus a number of illegal rentals that the city struggles to police. That seems to be lost., , a Southwest Michigan community that recently. Lawmakers contend HB 4722 strikes a balance between property owners who may want to buy an investment property or a second home and then rent it out while still giving local municipalities some authority in how to regulate the industry. At the heart of the issue is whether short-term rentals are a residential or commercial use of property. We ask that you edit only for style or to shorten, provide proper attribution and link to our web site. Amends 2006 PA 110 (MCL 125.3101 - 125.3702) by adding sec. There is a growing trend in local government to enact zoning bans that preemptively tell property owners they are unable to rent, according to a statement on the Michigan Realtors website. SUBSTITUTE FOR HOUSE BILL NO. 45, District Whats next in the fight over regulating short-term rentals, After years of misogyny, racism and threats in Lansing,, Hes doing their bidding: Critics say Republicans use. with the growth of companies like Airbnb and VRBO in the name of protecting private property rights. Airbnb raised $3.7 billion in the initial public offering. You cannot approach this as a one-size-fits-all, she told the, Lightners office declined a request for an interview, but sent the, The key thing here is, from our perspective, were very strong on private property rights, and people should be able to do what they want with their own property, said Mackinac Center Director of Marketing and Communications Jarrett Skorup, who, Calls to Michigan Realtors were not returned for this story, but the association does have a statement on its. City officials from Grand Rapids, Frankenmuth and Marquette joined the press conference to voice their concern over short-term rentals eating away at an already competitive housing market. The final result of the House vote was 55 in favor, 48 opposed, and 6 abstentions. The San Francisco-based company Airbnb has a. of fighting local regulations across the country. In Traverse City, Grand Haven and other lakeshore communities, the demand is there, and so is the lure of making money. I dont have two identical townships. This exemption is remarkably narrow and specific; it does not seem to further a distinguishable public policy purpose, but rather it appears to be a byproduct of political maneuvering among legislators. House Bill 4722 passed the House 55-47 during an extended session early Wednesday. . Loud music, late-night bonfires, even PA systems, beer pong and extra tents take over the yard. President and CEO Justin Winslow said 70% of voters oppose legislation that strips power from local governments to control short-term rentals and 79% believe they should be taxed the same as hotels. The Michigan Municipal League is in support of H.B. But House Bill 4722 narrowly passed the House in a late-night session last October, a move that surprised many who have followed the legislation. Additionally, Rigterink takes issue with how the substitute handles zoning, saying allowing nuisance ordinances is a reactive instead of proactive solution to problems that may arise with renters. HB 4722 would amend the Michigan Zoning Enabling Act of 2006 to define and add the term short-term rental to the Code as a residential use of property that is permitted in all residential zoning districts. While most people were sleeping the state House passed House Bill 4722 (H-11) by a vote of 55-48. "Michigan's hotel industry remains in a weakened state from a pandemic that is still presenting very real challenges to its survival 18 months later," said President and CEO Justin Winslow on Wednesday. The Village of Suttons Bay is reexamining its current ordinance after complaints from residents and even hired a firm, Beckett & Raeder of Ann Arbor, to research short-term rental regulations in communities around Leelanau County and elsewhere. Locals are using zoning to prevent nuisances she said. DONATE Our stories may be republished online or in print under Creative Commons lisence CC BY-NC-ND 4.0. Banning the right to rent harms property owners and local businesses in many communities all over Michigan.. In the early morning hours of Wednesday, October 27, 2021, the Michigan House of Representatives passed House Bill 4722 (HB 4722), which significantly limits how local governments may regulate short-term rentals. Introduced by Rep. Sarah Lightner R-Springport on April 27, 2021. It was sounding a lot more like they were going to limit it down to nothing, which concerned me, Metcalf said. House Bill 4722 was not on the Oct. 26 agenda, but an amended version passed 55-48 after the GOP-controlled House stayed in session past 2 a.m. Oct. 27. The bill passed in the House, 213-208. He also worked to dispel arguments that short-term rentals are driving up prices and displacing locals. This is not a false concern. The Park Township Board of Trustees formally opposed the House and Senate bills in a resolution approved over the summer. The bill specifies that short-term rentals would be subject to parameters required for other commercial uses in a residential district. Legislation is moving through the house and senate seeking to stop Michigan communities from outright banning short-term rentals like Airbnb and VRBO. We ask that you edit only for style or to shorten, provide proper attribution and link to our web site. Rigterink has been fielding plenty of calls from members after the surprise vote. It does the following: Prevents municipalities from banning short-term rentals Removes most regulations that unfairly discriminate against owners of short-term rental property 206b. 64. Our message is very clear that we need to have thoughtful local ordinances to take into consideration all of the unique aspects of a particular community, he said. By stripping local authority on short-term rentals, the bill would erase years of consideration in local communities, says Holland City Manager Keith Van Beek. Some municipalities, including Traverse City and Grand Haven, have taken the stance that short-term rentals are a commercial activity and local zoning rules prohibit other commercial activities in residential neighborhoods. The substitute bill adopted by the House adds several additional provisions to the version reported out of the Commerce and Tourism Committee. Michigan Municipal League, Michigan Township Association and. Other studies show short-term rentals deplete housing stock and, Amid the wrangling, three of the bills co-sponsors Reps. Sara Cambensy (D-Marquette), Samantha Steckloff (D-Farmington Hills) and Brad Paquette (R-Niles) . Rigterink sees the law as ripe for litigation. In Leelanau County, another popular vacation destination, villages and townships continue to grapple with the issue. Thats the worst kind of public policymaking, he said. 206b. The bill does not appear to have enough support in the legislature to override a veto. HB 4722 would amend the Michigan Zoning Enabling Act to establish the rental of a dwellingincluding, but not limited to, short-term rentalsto be a residential use of property that is permitted in all residential zoning districts, and not to be considered a commercial use nor subject to any permit requirements different from those applicable to other dwellings in the same zone.

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