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Planners review proposed short‑term rental ordinance changes including insurance requirement, cap and $500 fine
Summary
Staff presented multiple amendments to Decatur's short‑term rental ordinance: annual application timing, a $250 balance due before certificate issuance, proof of deed/mortgage and liability insurance, exemptions for commercial districts and riverfront properties, a proposed cap of 135 approvals annually, minimum‑stay and renewal rules, and fines up to $500 per occurrence.
At the December meeting, Decatur Planning Department staff reviewed a set of proposed changes to the city's short‑term rental ordinance intended to tighten application and enforcement rules.
Tommy, planning staff, walked commissioners through the highlighted edits. He said applicants will need to submit renewals annually and pay an outstanding application balance of $250 before receiving a certificate. Staff proposed replacing an electric‑bill requirement with proof of deed or mortgage and liability insurance for the property. "Under g, we added a deed or mortgage and proof of insurance for the property that includes liability coverage appropriate for the use of the property as a short term rental unit," he said.
The draft also includes density exemptions: short‑term units in commercial zoning districts and those with frontage on the Tennessee River would not count toward a 1,000‑foot density calculation. Tommy told commissioners the draft would limit approvals to a maximum of 135 short‑term rentals per year. "On c, we added a max of a 135 short term rentals will be approved annually," he said. Renewal rules would require applications to be submitted within 30 days of the approval anniversary or risk revocation until a renewal is received and approved.
Enforcement changes in the draft include an annual self‑inspection with photos of safety equipment and the location of egress, a clarified minimum stay provision (the ordinance language was corrected to read that a unit "shall not be rented for a period of less than 24 hours"), and penalties for noncompliance. Tommy said failure to cease operations after notification "shall result in a monetary fine of up to $500 per occurrence, and each day of failure to comply constitutes a separate occurrence." The draft also allows appeals of revocations to the Board of Zoning Adjustments within 30 days.
Commissioners discussed whether each edit required a separate motion and whether some language should read "rented" rather than "occupied." A commissioner asked to change the word and staff agreed to the wording correction.
What happens next: the commission debated and moved to consider the changes; the transcript shows a motion to adopt the changes was made and seconded, and the items will proceed through the commission process and ultimately to the city council as appropriate.
Officials quoted: Tommy, Decatur Planning Department.
