Planning commission recommends owner-occupied short-term rental rules to city council

The Fountain Green Planning and Zoning Commission voted to recommend that the City Council adopt a short-term rental ordinance permitting short-term rentals on an owner-occupied basis, with staff instructed to finalize language and include an occupancy-limit mechanism.

Commissioners discussed three policy options for short-term rentals: prohibit them entirely, permit only owner-occupied rentals, or permit non‑owner-occupied units. After extended discussion about local impacts — including parking, parties and policing — commissioners said starting with an owner-occupied rule would limit risk and allow the city to “test the water,” then reconsider the rules later if needed. “Start with more restrictive to go less restrictive later,” a commissioner said during the discussion.

The recommended framework requires owner-occupied units to be the owner’s primary residence for at least 51 percent of a 12-month period, and to designate a local representative able to respond to complaints within 30 minutes when the property is rented. Commissioners also asked that the draft clarify that residential dwellings (including dwelling portions in mixed-use buildings) must meet inspections and safety requirements before operation. The commission asked staff to remove the two-option presentation in the draft and deliver a single, cleaned document that (1) adopts owner-occupied short-term rentals, (2) allows the owner to set a guest limit tied to unit size, and (3) retains the local on-call representative requirement.

Commissioners said the policy should be revisited on a timetable driven by market experience and community feedback; one member suggested a 12-month review and another said the market would likely indicate whether earlier action was necessary. Staff committed to consolidating and clarifying the ordinance language and circulating the revised draft to commissioners before it goes to council. The commission made a formal motion recommending the ordinance to the City Council with the changes noted; the motion carried and staff said it would send the cleaned document to commissioners for a final review before council consideration.