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Newberg approves short‑term rental rules with single-transfer "one‑time burn" and year‑of-review
Summary
Council adopted amendments to the vacation rental code, moving to special use permits for new approvals and allowing a single transfer of existing conditional-use permits; the ordinance includes deadlines for registration and a one-year reapproval period and passed with one councilor opposed.
The Newberg City Council on Aug. 4 adopted updates to the city’s vacation-rental rules, amending Title 3 (revenue and finance) and Title 15 (development code) and adopting Ordinance No. 2025-2935. The ordinance changes several elements of the short-term rental (STR) program, including moving new approvals from a conditional‑use (land‑use) process to a special‑use process, setting registration and reapproval deadlines, and including a “one‑time burn” provision that allows holders of conditional‑use permits issued before 09/03/2025 to transfer that permit one time to a subsequent owner or contract purchaser. City attorney James (staff counsel) told council the one‑time transfer provision is a policy choice and does not eliminate potential legal exposure tied to retroactive application of code changes; he said the clause is intended to allow current permit holders a single transfer while moving the city toward person‑based special‑use permits going forward. Supporters on council said the approach balances existing owners’ expectations with a new regulatory framework that prevents permits from automatically running with the land. Several speakers urged the council to add a density cap and keep public hearings for neighborhood impacts; public commenters and some councilors expressed concern about the loss of a planning‑commission public hearing and about neighborhood concentration of STRs. Councilor [name on record: Councilor Carmen] voted no; other members voted yes. Council adopted an amended motion to include the one‑time transfer provision in Section 15.445.330(g) with an amended effective date 09/03/2025 and waived the second reading. Staff said they will return with implementation steps and that a detailed review of density and spacing can be brought back to council in the next year. The ordinance also updates permit ownership language, clarifies that new permits will “run with the person” rather than the land, and sets registration deadlines and a 12‑month reapproval timeline for permits and registrations.
