Freeport council rejects ordinance to remove short-term rentals from single-family zones

Freeport — The City Council rejected an ordinance to remove short-term vacation rentals from single-family residential zones after public comment and an extended council debate on Monday night.

The ordinance (second reading of Ordinance 2025-58) would have amended city code chapters addressing licensing and zoning of “vacation rentals” to eliminate those uses from R-1 through R-4 zoning districts, removing the ability to operate short-term rentals in single-family areas. The ordinance failed on a roll-call vote; the final tally was a defeat by 6–2.

The ordinance drew several hours of public testimony before the council voted. Ashley Heilman, a real-estate professional and property manager who said she represents owners with short-term rentals, told the council that responsible owner-occupied short-term rentals provide housing flexibility and support local tourism. “Many of the issues often raised — noise, property maintenance, nuisance activity — are already addressed by city ordinances and the current short-term rental ordinance,” Heilman said.

Frank and Mounie Lafever, who said they were Freeport’s first short-term rental hosts and are owner-occupants who rent a lower-level apartment, urged the council to exempt or grandfather owner-occupied listings. “We are not absentee landlords. We are residents, neighbors and responsible hosts and we care deeply about our community,” Mounie Lafever said.

Alderman Lehi, who said he had brought the issue forward, described a recent incident in his ward involving a large gathering with firearms that remains under investigation and urged action focused on public safety and neighborhood protection. “I don’t put that as a minor issue,” he said, describing police reports of weapons and many attendees. Several other aldermen described sympathy for neighbors and concern about public-safety risks; others urged a narrower approach aimed at problem properties rather than a broad ban.

City staff and the planning commission previously reviewed the proposal. Director Duchman summarized the ordinance as drafted to remove short-term rentals from single-family zoning districts and said the planning commission recommended the change by a 5–0 vote. Staff noted that the current licensing approach requires an owner of record on the application and that applications are checked for matching insurance and title ownership; staff said rent-to-own situations can be accommodated with owner affidavits where appropriate.

Council debate addressed several technical points raised during the public comment period, including whether owner-occupied hosts would be grandfathered, how rent-to-own arrangements would be handled, and whether limits such as caps or special-use permits might be a middle ground. Alderman Johnson said city staff had checked usage and found some rentals operate four to five times per month and urged caution before banning the use outright. Alderman Sellers and other members emphasized the role short-term rentals can play when hotel rooms are limited and for supplemental homeowner income.

The ordinance vote defeated the measure to remove short-term rentals from single-family zones; the council did not adopt the changes as presented. The council did not adopt any immediate alternative regulation at the same meeting.

Next steps: The failed vote leaves current licensing and enforcement in place. Council members who supported more regulation said they may return with narrower proposals focused on problem properties or on grandfathering established owner-occupied hosts.