Planning commission approves exemption for owner-occupied short-term rentals in residential zones
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Summary
The Columbia City Planning Commission approved a zoning text amendment that exempts owner-occupied short-term rentals from location standards requiring placement on four-lane arterial or collector streets; owner-occupied status is measured by the county assessor's 4% special assessment and existing Chapter 5 performance standards remain enforced.
The Columbia City Planning Commission on Monday approved a zoning text amendment that exempts owner-occupied short-term rentals from certain UDO location requirements, allowing owner-occupied dwellings in residential districts to be used as short-term rentals even if they are not located on four-lane arterial or collector streets.
A staff presenter told the commission the amendment responds to direction the council gave after adopting Ordinance 2025-107, effective Jan. 6. "It is to provide an exemption within residential districts to short term rentals that are owner occupied dwelling units," the staff member said, describing the amendment as t a-2025-0016 and noting it relies on the existing definition of owner-occupied in Chapter 5 of the city code.
The amendment ties the owner-occupied determination to the same standard used by the county assessor and the 4% special assessment ratio; staff said that means the exemption applies to the portion of a property the assessor considers owner occupied. Commission questions clarified that, for multi-unit properties such as duplexes, the exemption would apply only to the unit the owner occupies, not automatically to the entire building. Staff also said accessory dwelling units (ADUs) must meet UDO criteria (sharing the same address and utilities and not exceeding 50% of the main dwelling's square footage) to be treated as owner occupied for the exemption.
During questioning, staff referenced a state law allowance that, in their view, lets an owner rent out a home for up to 72 days per year and retain the special-assessment status; staff cautioned that if the rental exceeds the allowable period the 4% exemption could be lost. The presenter reiterated that Chapter 5 performance standards and the short-term rental licensing program remain in force and are enforced by code enforcement, while the UDO amendment affects only zoning location standards.
A motion to approve the amendment was made, seconded and approved by voice vote. The commission did not record individual roll-call tallies in the transcript; the action was announced as passed. The amendment's effective date and any implementation guidance were not specified during the meeting.
What happens next: staff will finalize ordinance language and the commission will follow normal codification and implementation procedures; no additional timetable was given during the meeting.