Short-term rental moratorium continued in White Salmon

The moratorium halts new short-term rental permit applications, but city officials clarified at the start of the moratorium that the ordinance does not apply to rental units already permitted by the city.

City officials voted to begin the moratorium July 21 after it was raised for consideration by City Councilor Jim Ransier.

Ransier argued for the moratorium, saying many members of the community raised the topic to him and felt concern for short-term rentals and their potential impact to housing in the community and available infrastructure.

In key findings of fact noted in the July ordinance enacting the moratorium, the city noted the pros and cons of the short-term rental market, including its potential for nuisances and expanded need for infrastructure, such as parking, increased fire risk, as well as law enforcement and garbage services. Other findings note the short-term rental market could potentially make long-term housing for permanent residents more scarce. Meanwhile, the findings note the positive impacts to short-term rentals, such as giving residents, who rent their units out to vacationers and other short-term visitors, the ability to offset their own housing costs, and at the same time increasing tourism-generated income to local businesses.

At the public hearing, many residents echoed these same findings.

City residents raised points in favor and against the moratorium. Much of the opposition to a moratorium and to potential regulation countering the short-term rental market scrutinized whether city action on short-term rentals would have an affect on the housing market at large. Others noted that their short-term rental units provide valuable income to offset their housing costs, and boost the local economy.

Ahead of the public hearing, city staff released a memorandum detailing the information gathered over the past year. The data came from the city’s short-term rental permitting system, and was analyzed through Granicus, a third-party tracking and administrative software.

According to city staff, “because there are now hundreds of competing platforms for listing (short-term rentals), it is near impossible and extremely time consuming to try to enforce the matter without tracking software.”

Granicus was able to extract data for consideration by city staff, including that short-term rental listings grew by 20% over the last year. According to the memorandum, the Granicus representative estimated that close to 200 housing units are being used for such purpose, compared to a total of 1,618 housing units in the city, making the short-term rental stock rate as high as 12%; 85% of the listings within the city were single family homes, 10% multi-family homes, and 6% unknown.

“By comparison, in 2019 Hood River had a second home rate of 5.6%, 4.1% of housing was non-owner occupied short-term rentals (grandfathered in by new policy), and 1.9% were owner occupied short-term rentals.” the memo read.

The city memo cited two studies which found that 2-4% of individuals who travel said that they would not have made the trip if a short-term rental option was not available. City staff then concluded: “The status quo of zoning regulations in cities reflects a broad presumption that short-term travelers likely impose greater externalities on long-term residents than do other long-term residents” — externalities, such as noise and stress on residential services, e.g. trash pickup.

With the information provided — the complete readout available in the Sept. 1 council agenda packet on the city’s website — staff recommended certain regulations for consideration by planning commissioners.

Such potential regulations include zoning overlays that may allow short-term rentals in some areas while ban them from others. Following a discussion by White Salmon planning commissioners, they reached a consensus that short-term rentals “outside of the walkable downtown core in residential single-family neighborhoods should be restricted.”

The commission found that short-term rentals have a place in the community and economy, “however it should be taxed and regulated and controlled by the four factors identified by staff: Location, Duration, Quantity, and Occupancy.”

Other alternatives may include incentives to encourage affordable housing.

As well, other regulatory alternatives include placing limits on the duration of stays, setting a number of maximum short-term rental units by location.

City staff, following public comment, requested the planning commission take into consideration a lottery system of sorts after one resident requested the city consider the idea.

While the city planning commission continues to evaluate and survey their options, one thing is clear, said Mayor Marla Keethler in an interview, that “it is this commercial use that’s become an accepted industry.”

Keethler said she doesn’t see the city’s pathway taking a one-size-fits-all approach; “the stressors are different” between short-term rentals within the commercial areas and residential zones in the city.

She sees both sides of the coin, that while many residents wish to rent their house out while away to earn extra income and support a growing tourism industry, others — who are not local and do not wish to reside here — seek out houses in White Salmon purely as an investment in a likewise growing short-term rental market. She said the city has heard this through queries placed by such investors.

“Those are two very different uses,” Keethler said. And while the short-term rental market remains one factor in the overall shortage in affordable housing in the city, Keethler acknowledges that addressing the issue will require looking beyond just short-term rentals. Keethler said to be on the lookout for additional zoning amendments coming before council in the near future.