Winooski council sets cap of 50 non‑owner occupied short‑term rental licenses; ordinance language to be amended

The Winooski City Council voted June 2 to cap the number of non‑owner occupied short‑term rental (STR) licenses at 50 and instructed staff to update municipal code language to allow the cap to be set by resolution.

Housing initiatives director Jasmine Hurley summarized the licensing audit and recommended the cap. “We found about 10 that were not licensed,” Hurley said, describing staff review of Airbnb listings and registry records; she explained that staff were aware of three additional non‑owner occupied units in the licensing pipeline. Hurley and the Housing Commission recommended a 50‑license cap to provide a modest buffer beyond currently licensed units while preserving flexibility to adjust the cap later.

Why it matters: the cap is intended to limit growth of STRs in Winooski while allowing existing licensed operators to remain active. Hurley told council the city’s prior licensing and outreach approach emphasized education and voluntary compliance; a cap was presented as a tool to slow growth without requiring removal of existing operators.

Council action and ordinance steps: Council approved, on motion, staff and Housing Commission’s recommendation to cap non‑owner occupied STR licenses at 50. Council then voted to introduce amendments to Municipal Code Chapter 17 (Public Building Registry) that set the licensing cap by council resolution, establish a first‑come/first‑served procedure for complete applications, and create a waitlist process. The amendment also proposes a 30‑day window for applicants to satisfy code and financial conditions before the license offer moves to the next eligible applicant. A public hearing on the ordinance amendment was set for the June 16 council meeting.

Financial and enforcement context: Hurley said the city charges a $1,400 annual fee for non‑owner occupied STR licenses and noted staffing and enforcement challenges if demand exceeds the cap. Staff and council discussed that some owners operate outside the registry and enforcement tools exist for unlicensed operators; the city will continue an education‑first approach and monitor compliance.

Next steps: staff will publish the ordinance amendment, hold a public hearing on June 16, and maintain a waitlist for complete applications if demand exceeds the resolution‑set cap. Council also directed that the cap be reviewed periodically (staff and commission recommended annual review) based on demand, compliance, and market changes such as the hotel opening.