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Annapolis committee backs block-based cap on short-term rentals, with follow-up work requested
Summary
The Economic Matters Committee recommended a block-based cap that stops new STR licenses once 10% of dwelling units on a block are short-term rentals; members debated definitions, owner-occupancy exemptions and possible phased enforcement or lottery mechanisms.
The Economic Matters Committee voted July 16 to recommend an ordinance that establishes a block-based limit on new short-term rental (STR) licenses once 10% of dwelling units on a block are licensed as STRs.
Key point of the ordinance: Sponsor Alderman Huntley said the bill is narrowly targeted to address blocks where STRs have become the dominant use. "What this legislation does ... is simply say that when a block hits 10% of dwelling units being short term rentals, no new licenses are issued," he said.
Scope and exemptions: The committee agreed to language exempting owner-occupied units (for example, a homeowner renting a spare room while living on the property) from the cap calculation so owner-occupied units do not contribute to the 10% threshold. Members also approved revised block definitions to cover nontraditional street patterns so the rule applies fairly across neighborhoods.
Enforcement and appeals: The draft ordinance includes administrative enforcement through the director with appeal rights consistent with existing permit appeal processes; staff said an administrative decision may be appealed to the building board of appeals and ultimately to circuit court.
Debate on implementation speed and reach: Several members said natural attrition and enforcement against problem properties will reduce STR concentrations over time, while others sought a faster mechanism. Alderman Savage proposed, and later withdrew for further drafting, a more aggressive phase-in that would include a two-year implementation window and a lottery or reallocation procedure to bring some blocks down to 10% within a fixed interval. Members expressed concern that a lottery-based removal of existing, currently compliant licenses could trigger legal challenges; sponsors noted a recent federal district-court ruling in Louisiana upheld a New Orleans lottery approach but acknowledged further appeals were pending.
Committee action: The committee moved the ordinance with the owner-occupied exemption and the refined block definition and recommended it favorably with amendments. Staff and the sponsor will return with clarifying language on owner-occupied definitions (to specify residency/occupancy criteria), updated planning maps showing current STR densities on targeted blocks and implementation options for accelerating reductions where concentrations already exceed 10%.
