The Rules and City Government Committee of Annapolis convened on September 8, 2025, to discuss proposed legislation aimed at regulating short-term rentals in the city. The meeting highlighted significant concerns regarding the impact of short-term rentals on local neighborhoods, particularly in Ward 1, where many block faces exceed the proposed limit of 10% for short-term rental units.

The primary focus of the discussion was a legislative proposal that seeks to cap the number of short-term rentals on any given block face to 10% of the total housing units. This means that if a block has ten residential units, only one can be designated as a short-term rental. The legislation is designed to address the growing prevalence of short-term rentals, which some committee members believe disrupt the residential character of neighborhoods.

Alderman Savage raised concerns about the implications of grandfathering existing short-term rentals, suggesting that blocks already exceeding the 10% threshold would not be affected by the new regulations. This aspect of the legislation has sparked debate among committee members, as it may allow problematic areas to remain unchanged while new blocks are restricted.

The committee also discussed the practicalities of monitoring compliance with the new regulations. City staff confirmed that they have the necessary data to track licensed short-term rentals, but acknowledged that managing the licensing process could become complex. The potential for a waiting list for short-term rental licenses was mentioned, indicating that timely renewal of licenses would be crucial for current operators to maintain their status.

Additionally, the committee explored the constitutional implications of the proposed regulations, noting that similar limitations already exist for traditional bed and breakfast establishments in certain areas. This precedent may provide a legal framework for the new legislation.

As the meeting concluded, the committee recognized the need for further analysis and refinement of the proposal before it can be presented to the full council. The discussions underscored the balancing act between supporting local businesses and preserving the integrity of residential neighborhoods in Annapolis. The committee's next steps will involve addressing the complexities of implementation and ensuring that the legislation effectively meets the community's needs.