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Board of Health approves amendment tightening short‑term rental ownership rules
Summary
The Board of Health voted March 19 to amend its short‑term rental regulations to close an ownership loophole for LLCs and S‑corporations, requiring applicants to certify that all members are natural persons and to provide documentary proof; the change will go to the Select Board for final approval.
The Nantucket Board of Health on March 19 voted to amend its short‑term rental regulations to clarify which limited liability companies and S‑corporations are eligible for short‑term rental certificates.
KP Law attorney Devin Braun explained the change to the board, saying the amendment narrows eligibility for corporate entities by requiring that “all of the members, partners, beneficiaries, shareholders, etcetera, are natural persons, and none of those people also serve as an officer or director, of the corporation” in question. The amendment creates a new subsection (proposed as subsection 7 to section 3.38) and obliges applicants to submit an affidavit under penalty of perjury; the Board may require additional documentation to verify compliance, Braun said.
The amendment is intended to implement voter‑approved changes to town bylaw Chapter 1.23 and to prevent situations in which companies present a named natural‑person officer while ownership and control rest with investors who lack a genuine island connection. Rebecca Duham, a resident, said she supported the amendment’s intent but asked for clearer wording so the community can easily understand and enforce it.
Chair (speaker 1) opened and closed a public hearing on the proposal after board discussion. A motion to add the proposed language to the Board’s regulations passed by voice vote. Devin Braun said he would coordinate with the health director on next steps to submit the amendment to the Select Board and to publish it with the town clerk and the local newspaper.
Why it matters: the amendment narrows corporate pathways that, the town says, have allowed investors without real island ties to hold short‑term rental certificates. The Board’s action preserves the opportunity for current owners to show compliance and leaves room for the Board to seek additional proof if needed.
What’s next: the regulation change is subject to Select Board approval and publication requirements before it becomes effective.
