A Summary Of The Compromise Short-Term Rental Article

To the editor: In mid-May, I wrote a letter to the editor about the ongoing need for a coherent set of regulations to govern the operation of STRs in a balanced and sustainable way. Having now participated in the Select Board’s crafting of Article One— the compromise STR article for the Special Town Meeting on September 17 — I’d like to give a brief summary of the new article and its goals.

Article 1 is a simple, straight-forward set of regulations, with three main goals:

#1 - to discourage investor-only STRs

#2 - to protect the time-honored tradition of vacation rentals of Nantucket homes

#3 - to protect the peace and integrity of Nantucket neighborhoods

Article 1 defines the STR uses that will be legal and those that will not. It does this by creating in zoning a new category of rental, Nantucket Vacation Rental, which is a short-term rental “that complies with §139-38 of the Town Code” — meaning it obeys the regulations established in this article. All other STRs — those that do not comply with Town Code — are not allowed.

To accomplish its goals, the article sets forth a few common-sense regulations:

- Each person is limited to STR rental on a single lot. On a lot that currently has a primary dwelling and a secondary dwelling, those two may be rented separately.

This regulation is designed to discourage investor-only multiple STR ownership, while protecting the tradition of home rental on the island.

-An owner who currently rents STRs on multiple lots may continue to do so for eight years.

This regulation acknowledges that current owners of multiple STRs may need time for change — either by assigning ownership of a particular STR to another adult family member or by selling the property — without the disruption to family finances and island-wide rentals that would result from an abrupt change.

-An STR is limited to eight changes of occupancy (i.e. rental contracts) in July and August.

The goal of this regulation is to protect the peace of Nantucket neighborhoods by discouraging frequent, two or three-day rentals during the high season. It encourages STR owners to rent for a week or more but does allow some flexibility.

-For new STRs, during the first five years of ownership of the property, there is a limit of 3 changes of occupancy (i.e. rental contracts) in July and August.

This regulation is a powerful disincentive to future investor-only STRs. The limit of three summer rentals for the first five years will deter those who wish to purchase Nantucket homes only to profit from them as STRs. This will also help to protect the peace of Nantucket neighborhoods.

- For property that a couple owns, each person may separately operate one STR lot. Likewise in a family—each adult family member could be defined as an owner of an STR.

-The restriction of three changes of occupancy in July and August does not apply to properties that are transferred through inheritance, divorce, or interfamily gift.

This protects the existing rights of families that already own homes, as they pass their homes to the next generation.

-STRs are forbidden in tertiary dwellings, interval-ownership dwellings, affordable housing, workforce housing, covenant housing, and in newly constructed apartments.

Again, the main purpose of this regulation is to protect the peace of Nantucket neighborhoods.

-Cottage Colonies and Hosted Stays are exempt from the requirements of this bylaw.

Cottage colonies and hosted stays are both pre-existing special cases that do not require STR regulation. It is important to note that hosted stays can take place either in an owner’s home, or in a separate dwelling on the same lot if the owner is present.

A previous general bylaw, already passed at Town Meeting, will of course remain in effect with its regulations that govern registration, noise, nuisance, enforcement, and other ‘use’ issues.

It is true that legal language can sometimes be confusing to those of us who are not lawyers, and I hope this summary can be of use. The Select Board, the Planning Board, and the Finance Committee have all voted their support of this compromise article.

Best,

Jim Sulzer