By Melissa Rosequist | Scottsdale Independent
Scottsdale and Town of Paradise Valley officials say they plan to implement licensing procedures for short-term rental properties within their municipal bounds following a newly-approved law.
Senate Bill 1168, signed by Gov. Doug Ducey on July 6, goes into effect on Sept. 24.
Both Scottsdale and Paradise Valley officials say they plan to implement local ordinances after the law goes into effect that will establish new administrative processes to issue, deny and suspend a short-term rental permit.
“Scottsdale is renowned for our family-friendly neighborhoods, which have been negatively impacted by short-term rentals,” said Scottsdale Mayor David Ortega. “Passage of SB1168 allows the city of Scottsdale to regain local control. Our City Council is prepared to enact more stringent laws to assure our neighborhoods are safe and tranquil, the day SB1168 becomes law.”
Formerly, local governments were not permitted to restrict the use of or regulate a short-term rental property based on its classification, use or occupancy except to protect the public’s health and safety; and adopt and enforce residential use and zoning ordinances such as for noise, protection of welfare and property maintenance.
Paradise Valley Town Manager Jill Keimach says it will take an additional 60 days for a local ordinance to go into effect after Town Council approves it, if not longer.
“After more than two years of negotiations over two legislative sessions by citizens, the mayor, vice mayor and council, lobbyists, and staff and elected officials from other cities throughout the state, I was relieved that we will now have more tools to work with to regulate the bad actors in the short-term rental industry…and create a level playing field for those that want to follow state and local laws,” Keimach said.
“Working on legislative amendments to what started out as no regulation of short-term rentals in the form of SB1350, we have come a long way with this bill. Like all legislative amendments, it isn’t perfect, but it is a significant step in the right direction. I am looking forward to how we can use these new tools to further respond to nuisance issues arising from short-term rentals.”
Officials say the most important new tool in SB1168 is the authority to issue short-term rental licenses or permits, which in turn gives local governments the ability to suspend a permit for up to a year.
A property must receive three verified violations within a 12-month period or one verified violation that results in the owner or designee receiving a felony offense in the vicinity of a STR; a serious physical injury or wrongful death related to a STR; knowingly house a sex offender or adult-oriented business; or host a special event that would otherwise require a permit under town ordinance.
Additionally, SB1168 states that any attempted or completed felony act arising out of the use of a STR by anyone associated with it that results in actual or attempted serious physical injury will be grounds for immediate judicial relief for the suspension of the STR permit for up to 12 months.
“While the bar is very high to suspend STRs, cities and towns do not take this new authority lightly, just as we do with all of our land use permits,” said Keimach. “We anticipate that our new enforcement power to suspend STR permits will make a difference for owners and/or managers who repeatedly bring bad actors into our neighborhoods.”
Additionally, there are provisions for neighbor notification, application procedures and contract information requirements.
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