STR Ordinance History

On October 26, 2021, Town Council approved the extension of the moratorium until June 15, 2022.

The following categories are exempt from the moratorium:

1. Complete applications that were received by the Town prior to the adoption of the Urgency Ordinance on September 28th.
2. New owners of a property which was in escrow in connection with a pending sale at the time the Urgency Ordinance was adopted IF a transient occupancy registration certificate was in effect for the seller's of a property immediately prior to the close of escrow.
3. Registration renewals for the 2022 calendar year.

During the Moratorium, the Town of Truckee undertook a review and study of the Town's short-term rental (STR) program. This study informed Town Council's consideration of whether to makes changes to the STR program in response to the regional shortage of housing available to the local workforce, including possible steps to manage the number, location, or types of properties that may be permitted to short-term rent. Review the STR Study Update Report from Town Council (PDF).

Town staff had appointed an ad hoc advisory committee, comprised of community members with a range of perspectives and interests in short-term rentals, to consider STR management options and provide recommendations to Town Council. These recommendations were presented at the February 8, 2022 Town Council meeting.

Advisory Committee members:

• John Falk- Realtor representative
• Peter Fenolio- Contractor/ Building representative
• Jim Winterberger- STR property manager
• Melanie Meharchand- STR independent operator (part-time resident)
• Billy McCullough- STR independent operator (full-time resident)
• Matt Warren- Employer representative
• Tara Zuardo- Housing Advocate
• Laura Lindgren- Member-at-large
• Aaron Nousaine- Economist
• Courtney Henderson- Vice Mayor
• Dave Polivy- Councilmember

Review the Advisory Committee meeting summaries and presentations:

• October 20, 2021 (PDF)
• November 17, 2021 (PDF)
• December 8, 2021 (PDF)

On the February 8, 2022 Town Council Meeting staff presented on the Short-Term Rental program study and recommendations for ordinance updates.

Council directed staff to develop an ordinance update including the following components:

• Cap STR registration certificates town-wide at the 1255.
• Phase out STRs in both multi-family units and Accessory Dwelling Units. This means that no new registration certificates will be issued for these types of units; current certificate holders will be permitted to renew.
• One year waiting period after a property sells before it is eligible to register as an STR.
• Increase penalties for violations. Add new fee for inspections following a citation.
• Establish a December 31 deadline for annual permit renewal to facilitate management of the waitlist.
• Conduct a review of the STR program in summer 2023 and bi-annually after that.
• Develop incentive program guidelines for a new STR registration certificate-based Workforce Housing Advancement Program to incentivize new workforce housing.

Council also discussed the following options, and chose not to move forward with any of these at this time. These may be re-visited during the future bi-annual reviews:

• Establish a minimum number of nights rented to be eligible for registration certificate renewal.
• Utilize a lottery instead of a waitlist to administer the registration cap.
• Consider granting certain exemptions to the cap (e.g. properties registered prior to 2020 who stopped renting due to Covid, construction, or other circumstances; financial hardship).
• Primary resident exemptions from the cap.

On Tuesday March 22, 2022, staff presented to Town Council the recommended Short-Term Rental (STR) Ordinance Amendments. The first ordinance reading was adopted unanimously by Town Council ushering forward the following ordinance modifications:

• Registration Certificate Cap of 1,255.
• Phase out STRs in Accessory Dwelling Units (ADUs) and Multi-Family Dwelling Units: Units with an existing registration certificate will be permitted to renew their registration certificates, if not renewed then the homeowner will be unable to reapply. No new registration certificates will be issued for these property types.
• 365-Day Waiting Period after a home sale before the new owner may register as an STR.
• Increase Penalties for Violation of the ordinance up to:
  • $1,500 per day for the first violation
  • $3,000 per day for the second violation
  • $5,000 per day for each additional violation
• Inspections Fees may be charged for an STR.
• December 31st Deadline for Registration Renewal
• Waitlist Application Process
• Create an STR Registration Certificate-based Workforce Housing Advancement Program

On Tuesday April 12, 2022, the Town Council waived the second reading and adopted Ordinance 2022-02 amending Chapter 5.02 of the Town of Truckee Municipal Code regarding regulation of Short-Term Rentals (STR). Ordinance 2022-02 will go into effect thirty days from the adoption date, on May 12, 2022.

On Tuesday, April 26, 2022, the Town Council adopted Resolution 2022-16 approving updates and additions to the Short-Term Rental Fee Schedule. These fees will go into effect on May 12, 2022.

Staff anticipates the following next steps:

• May 12, 2022 - Short-Term Rental Ordinance Amendments go into effect.
• May 15, 2022 - Final deadline for 2021 certificate holders to renew their certificate for 2022.
• May 24, 2022 - Town Council consideration of allocating a portion of available registration certificates to the Workforce Housing Advancement Program pool, prior to releasing available certificates to the waitlist.
• June 13, 2022 - Waitlist Application process opens for submission.
• June 15, 2022 - Moratorium lifted.
• July 1, 2022 - Begin quarterly assessment and release of available registration certificates to the waitlist.
• December 31, 2022 - Deadline to renew for 2023 STR registrations.
• January 2023 - Town Council consideration of Short-Term Rental Token Program Pilot guidelines; Program launch following Council approval.

On Tuesday, January 24, 2023, Council approved the purchase of a new Short-Term Rental software, and updates to the Short-Term Rental ordinance.

• Short-Term Rental Software Change: Council authorized the Town Manager to enter into an agreement with GovOS Short-Term Rental Solutions for the provision of services related to short-term rental identification, compliance, licensing, helpline, and tax collection.
  • Go live commencing in summer 2023.
  • The Town's contract with its existing provider was set to expire within the next year and staff saw this as an opportunity to ensure that the short-term rental program is operating as efficiently as possible. The goals of this change are to improve the responsiveness following a call to the helpline and to improve the experience and self-service capabilities for existing and potential short-term rental operators. GovOS was selected after a lengthy review process that included product demos and thorough vetting of existing municipal clients. Staff is confident that GovOS is the best provider to help us in achieving these goals!
• Short-Term Rental Ordinance Update: No significant policy changes were introduced as part of the update to the municipal code update. Rather the updates intended to expand on the existing STR Ordinance to improve internal process and provide clarity. Summary of the STR Ordinance Updates:
  • Prohibit short-term renting of manufactured homes and mobilehomes (short-term renting of mobile/manufactured homes was not specifically allowed or specifically prohibited in the prior iteration of the ordinance).
  • Waitlist Applications:
    • Properties that have yet to receive a Certificate of Occupancy are unable to apply for the waitlist (e.g. vacant land and properties under construction).
    • Should there be an active code case on the property staff can deny the waitlist application until the violation is resolved.
  • Registration renewal start date modified to November 1st.
  • Fine for a transient rental operating without a certificate shall be $500 for the first violation.
  • Hardship waiver process when the full amount of the fine would impose an undue financial burden.
  • Suspended Registrations:
    • A suspended registration certificate holder shall not be permitted to renew for the following year should the basis for the suspension not be remedied.
    • Revoke a suspended registration certificate should an active violation not be remedied within 30 days after the Town has notified the operator of the violation.
  • Revoked Registration: Modifying language to prohibit an applicant from applying to the waitlist for a period of 12 months from the date of the certificate revocation.
  • View the full January 24th Town Council Meeting Agenda.

On Tuesday February 14, 2023, staff will ask Council to adopt Ordinance 2023-01 amending Chapter 5.02 of the Town of Truckee Municipal Code regarding regulation of Short-Term Rentals (STR).

On Thursday March 16, 2023, Ordinance 2023-01 amending Chapter 5.02 of the Town of Truckee Municipal Code regarding regulation of Short-Term Rentals (STR) will go into effect.

On Tuesday August 8, 2023, a performance review/data analysis of the further STR regulations were presented to Town Council, along with potential policy changes. Town Council accepted the data analysis report and future policy changes will be looked at, at the next bi-annual review of the STR program.