HomeMy WebLinkAbout2023-10-11 23-308 Ordinance23-308 10/11/2023
CITY COUNCIL ACTION
Council Meeting Date: October 11, 2023
Item No: 23-308
Responsible Dept: Planning
Action Requested: Ordinance Map/Lot: N/A
Title, Ordinance
Amending the Code of the City of Bangor, by Creating Regulations and Allowances for Short -Term Rentals
Summary
The proposed changes would update the City's Code of Ordinances to define the use of short-term rentals, to
create regulations for this use, and to allow the use in the URD-1, URD-2, M&SD, NSD, USD, DDD, WDD, LDR,
HDR, S&PS, GC&S, and RR&A zones. At present, short-term rentals are not defined in the City's Code of
Ordinances and are therefore not allowed in the City.
However, the operation of short-term rentals and the revenue it can make available to property owners may
help make the City affordable for persons on fixed or limited incomes and may enhance and diversify the
accommodations available to visitors and tourist. Conversely, increasing numbers of short-term rentals may
result in a decrease in the supply of affordable housing in the City and the transient nature of this use can
have a negative impact on the surrounding neighborhood.
Due to these impacts, the 2022 Comprehensive Plan suggests that the City regulate short-term rentals. The
amendments herein attempt to strike a balance between the desire of property owners to use their properties
for short-term rental use and the desire of the City's residents to preserve the integrity of their neighborhoods.
Committee Action
Committee: Planning Board
Action:
Staff Comments & Approvals
City Manager
Introduced for: First Reading and Referral
Meeting Date: October 17, 2023
For:
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City Solicitor
Against:
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Finance Director
23-308 10/11/2023
CITY COUNCIL ORDINANCE
Date: October 11, 2023
Assigned to Councilor: Yacoubagha
ORDINANCE, Amending the Code of the City of Bangor by Creating Regulations and Allowances for Short -
Term Rentals.
WHEREAS, at present, short-term rentals are not defined in the City's Code of Ordinances and are therefore
not allowed in the City;
WHEREAS, the proposed changes would update the City's Code of Ordinances to define the use of short-term
rentals, create regulations for the use, and allow the use in the URD-1, URD-2, M&SD, NSD, USD, DDD, WDD,
LDR, HDR, S&PS, GC&S, and RR&A zones;
WHEREAS, there are concerns with the impact of short-term rentals on the supply of affordable housing in
the City and the impact of this use on the surrounding neighborhood;
WHEREAS, there can be positive economic impacts from the presence of short-term rentals in a municipality;
WHEREAS, the 2022 Comprehensive Plan suggests that the City regulate short-term rentals;
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF BANGOR AS FOLLOWS, THAT
The Code of the City of Bangor is amended as follows:
§ 99.4 Definitions
RESIDENTIAL PROPERTY
B. For the purpose hereof, a "mixed occupancy building" means a building used for any purpose that also
contains residential occupancy or a short-term rental, as defined in 5 254-3, therein.
§ 165-13 Definitions.
SHORT-TERM RENTAL
See definition of "Short -Term Rental" in � 254-3.
SHORT-TERM RENTAL, HOSTED
See definition of "Short -Term Rental, Hosted" in � 254-3.
SHORT-TERM RENTAL, NON -HOSTED
See definition of "Short -Term Rental, Non -Hosted" in & 254-3.
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§ 165-1 Authority and purpose.
L. To authorize hosted and non -hosted short-term rentals in certain districts in order to encourage the
proliferation of orderly and well -regulated short-term rentals, particularly within walking distance of the City's
downtown area, to supplement but not supplant existing and permitted commercial lodging establishments
such as hotels and motels; ensure the safety of the occupants of short-term rentals; and minimize the adverse
impacts, including nuisance impacts, of short-term rental uses on surrounding neighborhoods.
§ 165-88 Urban Residence 1 District (URD-1)
C. Permitted uses. The following uses are permitted in this district:
(7) Hosted and non -hosted short-term rentals (subject to the licensing requirements in Chapter 254).
(8-7) Accessory uses on the same lot and customarily incidental to and subordinate to the above uses or to
an approved conditional use under Subsection D below.
§ 165-89 Urban Residence 2 District (URD-2)
C. Permitted uses. The following uses are permitted in this district:
(6) Hosted and non -hosted short-term rentals (subject to the licensing requirements in Chapter 254).
(76) Accessory uses on the same lot and customarily incidental to and subordinate to the above uses or to
an approved conditional use under Subsection D below.
§ 165-90 Multifamily and Service District (M & SD)
C. Permitted uses. The following uses are permitted in this district:
(7) Hosted and non -hosted short-term rentals (subject to the licensing requirements in Chapter 254).
(8-7) Accessory uses on the same lot and customarily incidental to and subordinate to the above uses or to
an approved conditional use under Subsection D below.
§ 165-91 Neighborhood Service District (NSD)
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C. Permitted uses. The following uses are permitted in this district:
(13) Hosted and non -hosted short-term rentals (subject to the licensing requirements in Chapter 254).
(143) Accessory uses on the same lot and customarily incidental to and subordinate to the above uses.
§ 165-92 Urban Service District (USD)
C. Permitted uses. The following uses are permitted in this district:
(17) Hosted and non -hosted short-term rentals in buildings that are permitted for mixed residential and
commercial use (subject to the licensing requirements in Chapter 254).
§ 165-93 Downtown Development District (DDD)
C. Permitted uses. The following uses are permitted in this district:
(20) Hosted and non -hosted short-term rentals (subject to the licensing requirements in Chapter 254).
(219) Accessory uses on the same lot and customarily incidental to and subordinate to the above uses and
those approved under Subsection D below.
§ 165-94 Waterfront Development District (WDD)
C. Permitted uses. The following uses are permitted in this district:
(11) Hosted and non -hosted short-term rentals (subject to the licensing requirements in Chapter 254).
(12-1) Accessory uses on the same lot and customarily incidental to and subordinate to the above uses and
those permitted as conditional uses in Subsection D below.
§ 165-99 Low -Density Residential District (LDR).
C. Permitted uses. The following uses are permitted in this district:
(9) Hosted and non -hosted short-term rentals (subject to the licensing requirements in Chapter 254).
(109) Accessory uses on the same lot and customarily incidental to and subordinate to the above uses and
any use approved under Subsection D below.
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§ 165-100 High -Density Residential District (HDR).
C. Permitted uses. The following uses are permitted in this district:
(9) Hosted and non -hosted short-term rentals (subject to the licensing requirements in Chapter 254)
(109) Accessory uses on the same lot and customarily incidental to and subordinate to the above uses and
any use approved under Subsection D below.
§ 165-101 Shopping and Personal Service District (S & PS).
C. Permitted uses. The following uses are permitted in this district:
(20) Hosted and non -hosted short-term rentals (subject to the licensing requirements in Chapter 254).
(210) Accessory uses on the same lot and customarily incidental to and subordinate to the above uses and
any use approved under Subsection D below.
§ 165-102 General Commercial and Service District (GC & S).
C. Permitted uses. The following uses are permitted in this district:
(13) Hosted and non -hosted short-term rentals (subject to the licensing requirements in Chapter 254).
(143) Accessory uses on the same lot and customarily incidental to and subordinate to the above uses and
any use approved under Subsection D below.
§ 165-105 Rural Residence and Agricultural District (RR & A).
C. Permitted uses. The following uses are permitted in this district:
(18) Hosted and non -hosted short-term rentals (subject to the licensing requirements in Chapter 254).
(198) Accessory uses on the same lot and customarily incidental to and subordinate to the above uses and
any use approved under Subsection D below.
Chapter 254 Short -Term Rental Licenses
& 254-1 Statement of Purpose
It is the purpose and intent of this chapter to authorize and require the licensing and inspection of short-term
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rentals, as defined in § 254-3, in order to:
A. Ensure the safety of the occupants of short-term rental units;
B. Minimize the adverse impacts, including nuisance impacts, of short-term rental uses on surrounding
neighborhood; and
C. Provide a licensing program that enables the City to monitor and control short-term rental uses and impacts
within its geographic boundary.
The City recognizes that the operation of short-term rentals and the revenue it can make available to propeU
owners may help make the City affordable for persons on fixed or limited incomes, and may enhance and diversify
the accommodations available to visitors and tourists. This chapter attempts to strike a balance between the
desire of property owners to use their properties for short-term rental use and the desire of the City to preserve
the peaceful and quiet enjoyment of its neighborhoods.
15 254-2 Applicability
A. Applicability. This chapter shall apply to any person intending to operate a short-term rental, as that term
is defined in § 254-3.
B. Prohibited Short -Term Rentals. Notwithstanding anything to the contrary in this chapter, the following
structures and uses shall not be operated as a short-term rental, as that term is defined in § 254-3: Travel
trailers, vehicles, tents, lean-tos, dormitories, fraternity houses, sorority houses, and other similar group
quarters.
C. Exempt Activities. Notwithstanding anything to the contrary in this chapter, the following structures and
uses are exempt from the licensing requirements in 5 254-4: Boardinghouses, rooming houses, bed -and -
breakfasts, hotels or inns, motels, or tourist cabins, as those terms are defined in § 165-13; lodging houses,
as that term is defined in 30-A M.R.S.A. 5 3801(3); or similar commercial lodging establishments that are
subject to the business licensing requirements of Chapter 85 of this Code.
15 254-3 Definitions
For the purpose of interpreting this chapter, the following terms, phrases, words and their derivations shall have
the meanings given herein. Terms not defined shall have the meanings ascribed to them in § 165-13 or, if
undefined therein, their customary dictionary meaning.
OPERATE or OPERATION
To advertise, offer for rent, let, lease, use, control, manage, or otherwise operate a short-term rental.
PERSON
A natural person or a firm, association, organization, partnership, trust, company, corporation, joint venture,
or other legal entity,
REVIEWING AUTHORITY
The Director of the City's code enforcement office, or the Director's designee.
SHORT-TERM RENTAL
The operation of a short-term rental unit for dwelling, sleeping, or lodging purposes, for a period of less than
30 consecutive days to the same person or persons, in exchange for direct or indirect compensation. For
purposes of this definition, a "short-term rental unit" is (i) a one -family dwelling or mobile home; ii a dwelling
unit within a two-family dwelling, three-family dwelling, four -family dwelling, apartment building, multiple -
unit housing, attached residential building, or mixed residential and commercial building; (iii) an accessory
dwelling unit (ADU); or (iv) any one or two bedrooms within any such short-term rental unit. A short-term
rental unit does not include a lodging house, as that term is defined in 30-A M.R.S.A. 5 3801(3); a
boardinghouse, rooming house, or bed -and -breakfast, hotel or inn, motel, travel trailer, vehicle, tent, lean-
to, dormitory, fraternity house, sorority house, or tourist cabin; or any dwelling unit therein. Short-term
rentals are classified as either hosted short-term rentals or non -hosted short term rentals, as those terms are
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defined in this chapter.
SHORT-TERM RENTAL, HOSTED
A short-term rental where the owner or operator is on the premises where the short-term rental unit is located
during any period when the short-term rental unit is occupied. For purposes of this definition, "is on the
premises" means is physically_ present within U a portion of the building within which the short-term rental
unit is located; ii a dwelling unit located on the same lot as an accessory dwelling unit (ADU) if the ADU is
the short-term rental unit; or (iii) an ADU located on the same lot as a dwelling unit if the dwelling unit is the
short-term rental unit.
SHORT-TERM RENTAL, NON -HOSTED
A short-term rental where neither the owner nor the operator is on the premises where the short-term rental
unit is located during the period when the short-term rental unit is occupied, whether or not on -site or off -
site property management services are provided for the short-term rental unit. For purposes of this definition,
"is on the premises" has the meaning ascribed to it in the definition of "short-term rental, hosted."
15 254-4 Licensing
A. License Required. Effective six months from the date of adoption of this ordinance, no person shall operate
a short-term rental without first obtaining a license pursuant to the requirements of this chapter.
B. Licensing Procedure. All administrative power and authority vested in the City Council to grant or deny a
short-term rental license required by this chapter shall be delegated to the reviewing authority.
(1)Application. The owner or operator of a proposed short-term rental shall file a license application with
the reviewing authority on forms provided by the office of the reviewing authority. The application shall
include, at minimum:
(a) Fee. A license fee for any new licenses and renewal licenses is $250 for each proposed short-term
rental unit; provided, however, that a license fee for a renewal license that does not require an
inspection is $100 for each proposed short-term rental unit. If the reviewing authority determines that
more than one inspection is required prior to the issuance of a new license or renewal license, an
additional license fee of $100 for each such additional inspection must be paid by the applicant prior
to the issuance of the license.
(b)Contact Information. The name, address, e-mail address, and phone number of the applicant, and,
if different than the applicant, the contact information of the owner of the building in which the short-
term rental unit is proposed to be located, along with written permission from said owner to operate
the short-term rental unit. If the owner is a legal entity other than a natural person, the name of all
natural persons who have an ownership interest in the legal entity that is listed as the record owner
of the property and the contact information of at least one of the named individuals.
(c) Property Location and Short -Term Rental Details.
[1]The location, including the zoning district and street address, of the building where the short-term
rental unit is proposed to be located.
[2]The number of proposed short-term rental units within the building_
[3] Whether the short-term rental is proposed as a hosted or non -hosted short-term rental.
[4] For hosted short-term rentals, attestation or documentation demonstrating that the owner or
operator will be on the premises where the short-term rental unit is located during any period
when the short-term rental unit is occupied.
[5] For non -hosted short-term rentals, the name, phone number, and e-mail address of a natural
person who is available 24 hours a day, 7 days a week, to respond within 60 minutes to any on -
site emergency at the premises where the short-term rental unit is located during any period when
the short-term rental unit is occupied.
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[6] For short-term rentals in any three-family dwelling, four -family dwelling, apartment building,
multiple -unit housing, attached residential building, or mixed residential and commercial building
where all of the dwellings units within the building are under the same ownership or under unified
management or control, a written statement from the owner identifying which dwelling units (not
to exceed 50%) may be used for short-term rental.
(d)Proof of Insurance. A certificate of insurance that expressly states that the building and property
may be used for short-term rental purposes and evidencing property insurance and general liability
insurance in a sufficient amount to cover liabilities reasonably arising from short-term rental use.
(2) Reserved.
(3)Completeness Review. The reviewing authority shall review all license applications for completeness
in the order that they are received. If an application is incomplete, the reviewing authority shall return
the application to the applicant and explain the reason for the rejection in writing_
(4) Limitations on Certain Short -Term Rentals.
(a)Cap on Total Number of Non -Hosted Short -Term Rentals. The number of units licensed for
non -hosted short-term rentals shall be limited to 1% of the total number of dwelling units existing in
the City of Bangor as of January 1st of each year, as determined by the City Assessor, in the City
Assessor's sole discretion.
[1]The reviewing authority shall review all complete license applications for non -hosted short-term
rentals on a first -come, first -serve basis and shall issue licenses for those applications that comply_
with the requirements of this chapter until the maximum number of short-term rental units for the
calendar year are licensed.
[2]If at any time a non -hosted short-term rental license expires without renewal, is suspended or
revoked, or is terminated or abandoned by the license holder, the cap on the total number of non -
hosted short-term rentals set forth in § 254-4.B(4)(a) shall remain unchanged.
(b)Unit Cap on Multi -Unit Short -Term Rentals. In any three-family dwelling, four -family dwelling,
apartment building, multiple -unit housing, attached residential building, or mixed residential and
commercial building proposed to be used for hosted or non -hosted short-term rental where all of the
dwelling units within the building are under the same ownership or under unified management or
control, the number of short-term rental units in the building shall not exceed 50% of the total number
of dwelling units within such building. The owner or operator of the building shall designate which
dwelling units within the building may be used for short-term rental. For purposes of this provision
"unified management or control" means a plan or process of ownership, management, or operation
that exhibits characteristics of a unified management approach, including without limitation Q unified
management, control, or supervision; ii sharing common equipment, labor, services, or amenities;
or (iii) common financing.
(c) Limitation on Number of Short -Term Rental Units Per Person. A person may not hold a license
to operate more than five short-term rental units in the City in any calendar year. For the purposes
of this provision, a "person" includes any entity or entities under the same ownership or under unified
management or control, as defined in § 254.4(b), above.
(5)Inspection.
(a)The reviewing authority shall conduct an inspection to determine whether the short-term rental unit
and the building where it is located comply with applicable fire and life safety requirements, including
but not limited to the following:
[1]Address. A building containing a short-term rental unit must have approved, contrasting address
numbers placed in a location that is visible from the street.
[2]Storage and Trash.
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— Stairs hallways and entryways must be clear of any trash or personal belongings.
Combustible and flammable liquids and gases are not allowed inside the building or short-term
rental unit unless they are in listed lockers.
There must be a container outside of the building for accumulated trash.
[ 3 ] Exits.
The building must have two well -lit exits.
— Exits must not be blocked by snow, personal belongings, or in any other fashion.
— Fire escapes, if any, must be in good condition and not blocked.
The building must comglly with applicable fire and life safety codes.
[4] Electrical.
Extension cords are not allowed, except for temporary use (e.g., cleaning, construction).
Electrical panels must be easily accessed and covered, and fuses/circuits labeled and of the
proper type.
Electrical receptacle boxes must have cover plates.
[5] Heating Equipment. Heating equipment must be in good working order with no fuel leaks (this
includes oil tanks), properly vented and, in the case of an oil furnace/boiler, have an emergency
shut-off switch.
[6] Fire Safety.
For short-term rental units located in apartment buildings, each apartment unit door must be
labeled with a uniquely identifying number (e.g., Apartment 1, Apartment 2).
Electric -powered smoke alarms must be installed inside each bedroom, in the room outside of
the bedrooms, and on each level of the building (if applicable). Smoke alarms should be
replaced every 10 years.
At least one carbon monoxide detector (electric powered with battery back-up) must be in the
buildina, located outside of the bedrooms.
No gasoline or other flammable liquids and gases shall be stored in the apartment building
[7]Space Heaters Prohibited. Electric space heaters in any building containing a short-term rental
unit shall comely with applicable UL standards.
(b)The reviewing authority shall document the results of the inspection and shall inform the applicant in
writing if the proposed short-term rental unit or the building in which it is located has failed the
inspection.
(6) License. Upon a determination by the reviewing authority that a proposed short-term rental unit and the
building in which it is located (i) are permitted uses in the zoning district where they are located; (ii)
comply with the basic fire and life safety requirements set forth in § 254-4.B(5); and (iii) comply with the
limitations on certain short-term rentals set forth in 5 254-4.B(4), the reviewing authority shall issue a
short-term rental license containing a unique license number to the applicant.
C. License Expiration; Renewal; Transferability.
(1)Expiration. All non -hosted short-term rental licenses shall expire on December 31 and all other short-
term rental licenses required by this chapter shall expire one year from the date when the license number
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was issued by the reviewing authority, unless revoked or suspended prior to expiration in accordance
with § 254-6.
(2)Renewal. Each license holder shall annually submit a license renewal application with the reviewing
authority at least 30 days before the expiration of the prior year's license on forms provided by the office
of the reviewing authority.
(a) Renewal Application. The renewal application shall include, at minimum:
[1]A fee as provided in § 254-4.B(1)(a).
[2]Updates to the information submitted on the original license application, or a statement that the
information remains accurate.
[3] Proof of insurance as provided in § 254-4.B(1)(d).
(b)Comnleteness Review. The reviewing authority shall review all license renewal applications for
completeness in the order that they are received. If an application is incomplete, the reviewing
authority shall return the application to the license holder and explain the reason for the rejection in
writing.
(c) Inspection. As part of the review of a renewal application, the reviewing authority shall re -inspect
the short-term rental unit and the building where it is located pursuant to § 254-4.B(5) every three
years. Nothing herein prohibits the City from inspecting a short-term rental unit at any time pursuant
to its authority under § 254-6.
(d)Renewal License. Upon a determination by the reviewing authority that the short-term rental has
passed inspection, as applicable, and otherwise complies with the requirements of this chapter, the
reviewing authority shall issue a renewal of the short-term rental license to the license holder. A
license renewal, when granted, shall be valid immediately following the issuance of a renewal.
A license holder who fails to obtain a renewal license prior to the expiration of the license must cease
operating the short-term rental until a renewal license is issued.
(3)Transferability. Short-term rental licenses and license numbers issued under this chapter are not
transferable to any new owner or operator of a short-term rental, nor shall short-term rental licenses or
license numbers be transferable to another location. If a short-term rental is acquired, transferred, or
purchased by a new owner or operator, the new owner or operator must file a license transfer application
in accordance with the procedure set forth in § 254-4.B for new license applications, and may not operate
the short-term rental until the reviewing authority issues a short-term rental license to the new owner
or operator.
D. Duty to Update. It is the responsibility of the license holder to submit updated information to the reviewing
authority at any time that any of the information submitted as part of a license application changes.
E. Posting Required. Upon the issuance of a short-term rental license number, the license holder shall post
and maintain at each short-term rental unit, in plain sight to occupants, a notice containing the following
information:
(1)The license number.
(2)The E-911 address of the premises where the short-term rental unit is located.
(3)The name, phone number, and e-mail address of the license holder.
(4)For non -hosted short-term rentals, the name, phone number, and e-mail address of a natural person who
is available 24 hours a day, 7 days a week, to respond within 60 minutes to any on -site emergency at the
premises where the short-term rental unit is located during any period when the short-term rental unit is
occupied.
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§ 254-5 License Denial
The reviewing authority may deny any application for a short-term rental license, renewal, or transfer if the
applicant fails to demonstrate compliance with any provision of this chapter.
§ 254-6 Investigations; Violations; License Suspension or Revocation
A. Violations. Violations of this chapter include, but are not limited to, the following_
(1)Operating a short-term rental without a valid short-term rental license.
(2)Operating a short-term rental after the short-term rental license has expired or after a license holder has
failed to submit a timely renewal or transfer application.
(3) Failure of an owner or operator of a non -hosted short-term rental to have available, 24 hours a day, 7
days a week, a person to respond to on -site emergencies at the short-term rental.
(4)Providing materially incomplete or false information, including misrepresentations and omissions, in a
short-term rental license, renewal, or transfer application.
(5)Failure, without good cause, to respond within 48 hours to inquiries made by the reviewing authority
related to the operation or licensing of a short-term rental.
(6)Operating a short-term rental in a manner that endangers or is reasonably likely to endanger the public
health, safety, or welfare.
B. Investigations. The Director of the City's code enforcement office, or the Director's designee, (collectively,
the "Code Enforcement Officer') is responsible for conducting site and building inspections to ensure
compliance with this chapter at any time as necessary or appropriate, and shall investigate all complaints of
alleged violations of this chapter.
C. Notices of Violation; Petitions; Judicial Action.
(1) Notice of Violation. If the Code Enforcement Officer, after investigation, determines that a person is in
violation of any provision of this chapter, the Code Enforcement Officer shall issue a notice of violation to
the owner or operator of the short-term rental. The notice of violation must state the nature of the
violation, the manner and time by which the owner or operator must abate such violation, and the owner
or operator's right of appeal.
(2)Petition to Suspend or Revoke License. If a person fails to abate or remedy any violation in the time
and manner described in the notice of violation or if the Code Enforcement Officer determines that a
violation endangers or is reasonably likely to endanger the public health, safety, or welfare, the Code
Enforcement Officer shall petition the Board of Appeals to revoke or suspend the owner's or operator's
short-term rental license.
(3)Judicial Action. Notwithstanding the Code Enforcement Officer's right to petition the Board of Appeals
pursuant to § 254-6.C(2), the Code Enforcement Officer may at any time institute, in the name of the
City, any judicial action or proceeding, including seeking injunctions, temporary restraining orders, and
the imposition of fines, including attorney's fees, that the Code Enforcement Officer determines is
appropriate or necessary to prevent, correct, restrain, or abate any violation of this chapter that
endangers or is reasonably likely to endanger the public health, safety, or welfare.
(4) Penalties. Unless otherwise provided by ordinance or statute, a violation of this chapter is a civil violation
punishable by a fine of not less than $100 nor more than $2,500 for each offense. Each act of violation
and every day upon which any such violation continues constitutes a separate offense. All fines shall inure
to the benefit of the City.
D. Authority to Suspend or Revoke License. The Board of Appeals may revoke or suspend a short-term
rental license at any time upon petition by the Code Enforcement Office pursuant to & 254-6.C(2) if, after
notice and a public hearing, the Board of Appeals determines that a license holder has violated this chapter
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or any other law, ordinance, regulation, license, or permit condition applicable to operating a short-term
rental in a manner that endangers or is reasonably likely to endanger the public health, safety, or welfare,
including without limitation if the short-term rental unit or the premises where the a short-term rental unit is
located is classified as a disruptive property, as defined in 5 99-4, in accordance with 5 99-8.
E. Notice of Hearing; Right of License Holder to be Heard. Prior to ordering the suspension or revocation
of a short-term rental license, the Board of Appeals shall provide the license holder, at least seven days prior
to the hearing date, notice of the time and place of the hearing at which the license suspension or revocation
will be considered. At the hearing, the license holder shall be given an opportunity to hear the evidence in
support of the charges against the license holder and to be heard in the license holder's own defense.
F. Term of Suspension; New License Required. The Board of Appeals may suspend a short-term license
for any period of time that it determines is necessary or appropriate. When cause for a suspension has been
removed or corrected and after a suspension term has expired, the holder of a suspended license must apply
for and receive a new license in accordance with 5 254-4.13 in order to operate the short-term rental.
15 254-7 Anneals
Any appeal from a final licensing decision of the reviewing authority or a notice of violation issued pursuant to
this chapter may be taken by any aggrieved party to the Board of Appeals pursuant to 5 23-3. Further appeals
or appeals of a license suspension or revocation by the Board of Appeals made pursuant to this chapter may be
taken by any aggrieved party to the Superior Court in accordance with the provisions of Rule 80B of the Maine
Rules of Civil Procedure.
& 254-8 No Vested Rights
A license granted pursuant to this chapter is a revocable license granted to the license holder in lieu of a business
license otherwise required pursuant to Chapter 85 of this Code. A license granted pursuant to this chapter expires
annually and does not, and shall not be construed to, confer upon the license holder or any other person any
property rights or vested interests and entitlements in the continued operation of a short-term rental. A license
granted pursuant to this chapter shall not run with the land.
Additions underlined, deletions s l li.
IN CITY COUNCIL
OCTOBER 11, 2023
COrd 23-308
First Reading and Referral to Planning Board Meeting on October 17, 2023
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CITY CLERK
IN CITY COUNCIL
OCTOBER 23, 2023
COrd 23-308
Joey Goodell, Howard Street, suggested a slight modif'ication to only allow short-term rentals owned by Bangor residents in
school areas.
Motion made and seconded for Passage
Vote: 7 -0
Councilors Voting Yes: Davitt, Hawes, Leonard, Schaefer, Sprague, Tremble, Pelletier
Councilors Voting No: None
Passed
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Memorandum
To: Honorable Bangor City Council
Deb Laurie, City Manager
From: Anja Collette, Planning Analyst
Date: October 18, 2023
CC: Courtney O'Donnell, Assistant City Manager
David Szewczyk, City Solicitor
Anne Krieg AICP — Director of Community & Economic Development
Re: Planning Board Recommendation October 17, 2023
Amending the Code of the City of Bangor by creating regulations and
allowances for Short-Term Rentals
Please accept this memorandum as the recommendation from the Planning Board for the noted item.
The Planning Board considered this item in a noticed public hearing on October 17, 2023.
The meeting was conducted in the Council Chambers at City Hall and on Zoom. Members in
attendance in the Chambers were the Chair Reese Perkins, Vice Chair Ted Brush, and Members Don
Meagher, Trish Hayes, Jonathan Boucher, and Ken Huhn.
Development Director Krieg presented a PowerPoint describing the background on this proposal and
summarizing the proposed language.
From the staff inemo:
A. This code change was part of the recommendations from the 2019 Affordable Housing
Work Group. The recommendation was for the city to create a policy for this use.
Additionally, the 2022 Comprehensive Plan suggests that the City regulate short-term
rentals. Staff has been working on this code along with other planning efforts on and off
over the least 3 and a half years.
B. The overall guidance from this policy is to recognize that short term rentals in Bangor
serve multiple functions that include the traveling public for visitation and tourism, but also
for temporary employment in the medical and construction industry. These are important
elements which support our economy. It is also recognized that there are concerns with
the use in terms of displacement of housing units, erosion of neighborhood connections
and in some cases, public safety. These concerns need address because we are seeking
to create more housing units, our neighborhoods are a huge draw for people that want to
live and work in Bangor, and we look to prevent situations where public safety is at risk.
73 HARLOW STREET,BANGOR,ME 04401
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WWW.BANGORMAINE.GOV
CITY OF BANGOR PLANNING DIVISION
PLANNING BOARD RECOMMENDATION TO CITY COUNCIL 10.17.23
Land Development Code-Short-Term Rentals
In listening to the public, the Board and the Business & Economic Development
Committee, staff worked to create a policy that seeks to provide balance.
C. Many people that rent to traveling workers often are renting a room. This use, called
hosted rentals, will remain allowed without a cap under this change. Registration and an
inspection would be required. We heard from people that the operation of short-term
rentals and the revenue it can make available to property owners may help make the City
affordable for persons on fixed or limited incomes.
D. Tourists often travel in groups when they are seeking vacation rental homes and thus
prefer a whole house rental. We want to encourage tourism and we want to show off our
great neighborhoods, but not without more protections. For those whole house rentals
where the owner is not on the premises, called non-hosted, there will be a cap on the
permits. The cap is proposed to be 1% of the number of dwelling units overall in Bangor
as set by the assessing data. This means the first year will be about 153 permits.
E. In terms of displacement of units, a cap of 50% of an apartment building can be used for
short term rentals.
F. Registration and inspection ensures that there is a local manager to contact if there are
issues with the rental and the inspection ensures basic life safety measures have been
met. This addresses public safety issues.
G. Specifically, the proposed changes would update the City's Code of Ordinances to define
the use of short-term rentals, to create regulations for this use, and to allow the use in the
URD-1, URD-2, M&SD, NSD, USD, DDD, WDD, LDR, HDR, S&PS, GC&S, and RR&A
zones. At present, there is no set of regulations or allowances for short-term rentals in the
City. It is not considered a customary use of a dwelling.
H. The difference between short-term rentals and long-term rentals is that long-term rentals
are considered a customary use of a dwelling and are residential in nature. Therefore, it
is not necessary to define long-term rental as this use is allowed in any type of residence
allowed by the zoning. Many issues that are often heard in reference to long-term rentals
could also occur with owner-occupied housing. Short-term rentals are considered
commercial in nature and are therefore not considered a customary use of a dwelling,
hence the need to create special regulations for them when used in residential buildings.
However, it should be noted that staff are currently working on a rental registry program
for long-term rentals to ensure that they meet life safety requirements.
Page 2 � 4
CITY OF BANGOR PLANNING DIVISION
PLANNING BOARD RECOMMENDATION TO CITY COUNCIL 10.17.23
Land Development Code-Short-Term Rentals
I. For an additional point of clarification, the primary difference between short-term-rentals,
as defined in the proposed ordinance, and bed-and-breakfasts, hotels, motels, and inns
is that the latter uses require a license from the State to operate. Conversely, short-term
rentals do not require licensing from the state. Additionally, bed-and-breakfasts in
particular usually have some type of on-site owner or operator, similar to hosted short-
term rentals, which are proposed to be licensed, but not capped in the proposed
language.
Board members asked staff clarifying questions on the proposal, including questions about what
qualifies as a hosted rental, how the apartment building cap would function, how LLCs are
accounted for, and how the City-wide cap of 1% was decided upon.
Many members of the public commented in opposition to the ordinance due to concerns about
the effect on housing supply, particularly affordable housing; concerns about the effects on
neighborhoods from the transient nature of the use and issues experienced with trespassing,
littering, and parties with guests in existing short-term rentals; concerns about lack of parking;
concerns about illegal activity and the lack of knowledge of the people using potential rentals;
and concerns about rentals being concentrated in one part of the City.
Some members of the public commented in support of the language, some of whom are existing
short-term rental hosts. Points articulated included that the income brought in from their rentals
allows them to make ends meet, that many of the guests are visiting family or work at the
hospital, and that some of the issues described by others, such as lack of parking, have been
seen in their neighborhoods with single-family homes. Several people pointed out the economic
development impact of short-term rentals.
There were a few questions about the cost to the City for enforcing the policy and the proposed
fee structure. Development Director Krieg explained that the proposed licensing fees are
intended to cover all of the costs involved with monitoring, inspection, and other administrative
work to enforce the policy, and that the fees may be increased later on if it's found that they do
not cover all of the costs.
Member Meagher stated that he would be voting ought to pass with the confidence that licensing,
registration, and inspection of long-term rentals would be coming forthwith. Stated that the primary
concern of the City is public safety and the safety of long-term renters is equally as important as
short-term renters.
Member Boucher stated his approval of the cap on non-hosted rentals and his opinion that 1% (of all
dwelling units) is a clear threshold and provides room for growth. He stated his feeling that getting
Page 3 � 4
CITY OF BANGOR PLANNING DIVISION
PLANNING BOARD RECOMMENDATION TO CITY COUNCIL 10.17.23
Land Development Code-Short-Term Rentals
something in place now is a good beginning point for discussion and stated the need for stability and
clear rules in place now. He stated that he is overall positive on the language, but it will be a work in
progress.
Vice Chair Brush expressed his opinion that this is a phenomenon that is already happening and that
it's necessary to regulate it and have City control on it. He felt that this proposal is a very good start.
Member Hayes stated that she was on the fence. She felt better about the cap on the non-hosted
rentals but had experience with issues living next to a rental without supervision. She also felt better
about hosted rentals and felt that it is a good start and that the City can broaden the regulations as
needed. She also felt good about the safety regulations given that there's revolving clientele through
the homes.
Member Huhn agreed with Members Boucher and Meagher that short-term rentals are already
happening and there could be all kinds of dangerous things occurring with them. He stated that he is
favorable to regulations on these rentals for safety reasons and to get a handle on what's currently
happening.
Chair Perkins stated that he has had favorable experiences with using short-term rentals. Bangor has
a lot of old housing stock and he also has an old home. He stated that he may need to do a short-
term rental to be able to stay in his home in the future. He expressed that he leans towards being in
favor of the proposal.
Member Boucher asked other members about the possibility of doing a 0.5% or 0.75% cap rather
than a 1% cap. Member Meagher felt that 1% of the dwelling units is as low as one can get without
prohibiting it; felt that 1% is inconsequential. Member Huhn expressed his feeling that 1% is a good
start.
Member Huhn made a motion to recommend to the City Council that the proposed amendments
ought to pass. Vice Chair Brush seconded the motion. A roll-call vote was conducted with members
voting as follows:
Vice Chair Brush - Yes
Member Meagher - Yes
Member Huhn - Yes
Member Hayes - Yes (prior to voting, asked if the policy would be evaluated every year; Krieg
confirmed)
Member Boucher - Yes
Chair Perkins - Yes
The motion passed 6:0 with all members voting to approve.
Page 4 � 4