Brighton planning commission backs revised IADU, short-term rental rules; asks council to study LLC ownership limits

The Town of Brighton Planning Commission voted April 16 to recommend Town Council adopt revisions to the town's internal accessory dwelling unit (IADU) and short-term rental code, approving a parking standard that raises the minimum required spaces and asking council to examine whether and how to limit corporate ownership of short-term rental properties.

Planner Curtis Woodford told commissioners the draft ordinance was revised to acknowledge that a property owner with an IADU may choose to rent the entire dwelling rather than just one unit and to require that applicants designate, at the time of licensure, which unit (or both) will be used as a short-term rental. "The owner could rent the unit out as its entirety," Woodford said, noting the change is highlighted in the draft.

Why it matters: the edits are intended to align the IADU and short-term rental sections so inspections, addressing for emergency response and licensing are consistent, and to close enforcement gaps when a single dwelling alternates between short-term and long-term uses.

Key changes and guidance approved by the commission include: - Owner occupancy and documentation: staff added language requiring evidence of ownership (for example, a deed copy) and making clear which portion of a dwelling is being licensed for short-term rentals so building and fire inspections cover the rented space. - Parking: commissioners chose the more restrictive parking option (referred to in the draft as Option 6). The commission's motion sets a minimum of two parking spaces for a short-term rental dwelling and requires one additional parking stall for each bedroom above two. - LLC/corporate ownership: the draft includes language that limits the ability of a corporate entity to claim owner-occupancy in a specific scenario where the property owner would occupy one unit while the other is rented. Staff said that restriction is narrowly tailored to owner-occupancy situations and is not intended to bar LLC ownership of short-term rentals generally. Commissioners asked that the town council and the short-term rental subcommittee or attorneys review whether additional limits on affiliated or corporate ownership are legally feasible.

Commissioners and staff also discussed enforcement tools. Several commissioners said online listings, address designators (A/B) and renter reviews can help staff identify when a property is being used inconsistently with its license; staff noted addressing and the affidavit process are part of permit approval. Woodford acknowledged the affidavit circulated to commissioners was an older draft and said staff will update it after the ordinance language is finalized and after legal review.

Public comment emphasized preserving protections for small owners who use LLCs for liability or estate-planning reasons while addressing the risk of large corporate buyers. "I just want to be another voice of support. I like the directions you guys are going," said Steven Harris, a property owner who asked the commission to avoid measures that would unduly harm family-owned cabins held in LLCs. Other commenters suggested options such as capping affiliated property ownership to prevent large institutional owners from accumulating many short-term rentals.

Commissioners also asked for clearer definitions of "owner occupancy" and "primary residence," with some speakers recommending removing or revising overlapping definitions in the code to avoid confusion.

The commission voted to recommend the ordinance package, including the parking amendment and a referral to study corporate/LLC ownership approaches, to the Town Council for adoption. Staff will revise the affidavit and coordinate with legal counsel before forwarding the final language.

The Planning Commission closed the public hearing and adjourned after the recommendation vote. The recommendation now goes to the Town Council for consideration and any further legal refinement.