Board upholds short-term rental occupancy reduction in Incline Village appeal; staff to explore ADA accommodation

The Washoe County Board of County Commissioners on April 8 denied an appeal from property owners in the Cedar Crest condominium complex at Incline Village seeking to restore a previously increased short-term rental (STR) occupancy to eight occupants. By a 3–1 vote, the board affirmed the director of planning’s decision to cap the unit’s STR occupancy at four people because the unit has only one designated parking space.

Case background: The property’s STR permit was increased to an eight-person occupancy in 2023 based on an assumption that two parking spaces were available. County enforcement later confirmed only one assigned parking space for the unit, and staff reduced the permitted occupancy to four people in line with Article 3.19 of the Washoe County development code, which calculates permitted occupancy based on designated parking (one assigned space per four occupants) and bedroom capacity, using the more restrictive measure.

Appeal points and evidence: The appellant, Matthew and Bernadette Castagnola, said they hold two parking permits for the development and can arrange for use of adjacent owners’ assigned spots; they also described a 21-year history of legal rentals and said they have never had STR complaints. The homeowners association’s board supplied a written letter saying parking passes do not equate to designated spaces and that overflow spaces are used on a first-come, first-served basis. County planning staff said the code does not permit increasing occupancy based on informal agreements with neighboring owners or general availability of overflow spaces.

Why it matters: Short-term-rental occupancy limits are enforced to reduce spillover parking and neighborhood impacts. Commissioners emphasized the county’s reliance on HOA-provided documentation of assigned parking and the development code’s clear standard tying occupancy to designated parking when spaces are not assigned to individual units.

Board action and follow-up: The commission denied the appeal and affirmed the board of adjustment and director’s determination that one designated space supports a maximum occupancy of four people. The board asked planning and legal staff to meet with the property owners to explore whether an ADA accommodation or a modification of standards could address the owner’s accessibility needs and legitimate personal-use concerns; staff said a modification of standards route may be available and will pursue a private discussion with the appellants and their counsel.

Ending: For now, the STR occupancy remains capped at four occupants. Planning staff will follow up with the appellants to assess whether an accommodation consistent with federal disability protections and county code can be applied in this or similar cases.