Newberg council reviews wide-ranging changes to vacation rental rules, including 2% citywide cap and parking increase

City planning staff presented a proposed package of development-code changes on June 6 aimed at tightening regulation of vacation rental homes in Newberg, including a citywide cap, new parking requirements for larger units and new reporting and local-contact rules for owners and booking platforms.

Planning staff member James opened the work session: “Tonight, we're gonna be taking a look at the vacation rental home policy changes coming out of the planning commission…staff's recommendation is to receive planning commission resolution number 2025‑399 and conduct a work session on the proposed vacation rental home development code amendment language,” he said.

The package would: limit the total number of permitted vacation rental homes to 2% of the city’s households; change the land-use status so that vacation rentals in R‑1 and R‑2 zones require a Type 2 special‑use permit reviewed by staff (with public notice and appeal rights); require operators or agents to remit transient lodging tax (TLT) or to file a city form confirming remittance; require designation of a local manager within 40 miles who can respond to problems; and change parking to one off‑street space per two bedrooms (rounding up) with a two‑space minimum. James said the proposal also moves some TLT‑related definitions and verification steps into Title 3 of the code so staff can check agent remittances.

Why it matters: staff and…