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Annapolis limits short‑term rentals per block face and adopts a lottery to reduce concentrations
Summary
The City Council approved O17‑25, capping new short‑term rental licenses on block faces that already exceed a 10% threshold and adding a lottery mechanism to prioritize local owners when available slots are allocated. The vote follows weeks of public testimony citing parking, enforcement and neighborhood impacts.
After extended public comment from neighborhoods experiencing high short‑term‑rental (STR) concentrations, the Annapolis City Council voted on Oct. 13 to adopt O17‑25, a measure that limits new STR licenses on block faces that exceed a 10% concentration and establishes priority rules — including a temporary lottery mechanism — to phase allocations toward that cap.
Residents from multiple wards testified that oversaturation of STRs has created chronic parking pressure, noise complaints and strain on city services. “This bill as written will not solve the problem — it locks it in,” said Patty Cousins, a resident who urged a moratorium and stronger enforcement. Others told the council that enforcement is the immediate gap: “I report them, sign shows up, sign gets taken down...and nothing has happened,” said Isaac Vineyard, who described repeating unlicensed listings.
The council adopted several amendments before passage. One amendment excludes owner‑occupied units from the cap (so that a homeowner living on the premises may still rent a room). A separate amendment establishes a lottery procedure after a two‑year pause: the first round prioritizes city and county residents with properties in Annapolis who are in good standing, the second round prioritizes local owners seeking new licenses, and a final round opens remaining slots to out‑of‑jurisdiction applicants. City staff and legal counsel said municipalities can implement transparent lotteries and that the department will develop public procedures and rules for live administration of any lottery.
City planning staff reported an active enforcement effort to bring units into compliance — placards are being issued and inspections and license conversions are underway — but staff acknowledged that some unlicensed STRs remain. Director Chris Jakubiak said the office is dedicating staff to compliance and that placarding and letters have prompted registrations; he said roughly half of suspected units remain unregistered but that the office is pursuing enforcement.
Councilmembers split on elements of the lottery and on whether the measure should be a standalone ordinance; Alderman Huntley voted against including the lottery as an amendment to the ordinance but said the issue is important. Supporters said the lottery speeds progress toward the 10% target and prioritizes local owners; critics said enforcement of existing rules must come first and cautioned about legal complexity.
Outcome: O17‑25 was adopted on third reader after amendments were adopted; staff will publish implementing procedures and continue enforcement work.
Representative quote: “Until we aggressively go after unlicensed STRs, limiting permits alone will not change residents’ circumstances,” said an alderman during discussion.
What to watch next: staff‑promulgated lottery and application procedures, results of enforcement actions and whether the city’s compliance work reduces the number of active unlicensed listings.
