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Planning Board opposes City Council draft to ban new guest houses in business districts
Summary
After extended debate about housing supply, tourism and enforcement, the Newport Planning Board voted to forward a negative opinion to City Council on a draft amendment that would prohibit new non-owner-occupied guest houses (short-term rentals) in business districts, citing concerns about unintended consequences and the effect on small-scale visitor accommodations.
The Newport Planning Board voted to forward a negative opinion of a proposed zoning amendment that would prohibit new non-owner-occupied guest houses (short-term, less-than-30-day rentals) in the city’s business districts.
City planning staff told the board the draft amendment responds to City Council Resolution 2020–477 directing staff to draft an ordinance to "ban all new short term rentals" as part of an effort to limit conversion of housing into transient uses. "This is a city council effort to mitigate housing issues by preventing further conversion of residential units," staff said during the presentation.
Board members debated for more than an hour. Supporters of the ban argued the change would protect housing stock and reduce conversions that can reduce year-round housing availability. Opponents said prohibiting guest houses in business districts could reduce year-round tourism options, push short-term rentals to operate outside registration and inspection, favor larger hotels and corporate operators over small owners, and complicate adaptive reuse of older commercial buildings. One board member warned the policy could be seen as punitive to owners who miss an annual registration: "If you remove it by right out of there and then you don't apply for 2 years ... you lose that right to register your guest house, which in my opinion is a taking," the board member said.
Staff explained existing, registered guest houses would be grandfathered if they maintain registration and that the amendment would not affect home-occupation uses or existing permitted guest houses. Several board members urged City Council to consider companion policies—such as protections for existing registrations or non-expiration while zoning remains—to avoid unintended loss of existing small-scale visitor accommodations.
After debate and amendments to the staff report emphasizing goals for adaptive reuse and historic preservation, the board voted to forward a negative opinion of consistency with the comprehensive plan to City Council. The vote was by voice; the transcript records the motion carried but does not provide an individual roll-call tally. The City Council will next consider the proposed ordinance as a response to the council resolution.
