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North Charleston staff reels off short‑term rental changes, commission backs transfer fee
Summary
Planning staff outlined a package of short‑term rental ordinance changes — including a $1,000 permit transfer fee, higher exemption thresholds and allowing certain detached owner‑occupied rentals — and the Planning Commission unanimously recommended approval to forward the ordinance for council consideration.
City planning staff on Thursday summarized proposed amendments to North Charleston’s short‑term rental rules that would change permit caps, clarify owner‑occupied room rentals and add a $1,000 transfer fee for existing permits.
The proposed ordinance would: raise the minimum number of rental units on a property for a permit exemption from 10 to 20; allow owner‑occupied room rentals to include detached accessory structures that are not full second dwelling units; exempt properties zoned B‑1 or B‑2 from council‑district caps; and establish a $1,000 transfer fee in addition to the $350 permit fee for buyers who want to keep an existing approved short‑term rental despite caps.
Staff said the transfer fee is intended to let new buyers obtain a permit for an already‑approved short‑term rental regardless of the per‑district cap. "The new buyer of that property will be able to pay that thousand dollar transfer fee as well as their new permit fee to be able to maintain that existing approved short‑term rental property," said the staff member presenting the item.
Eileen Duffy, introduced by staff as available to explain details, clarified how the transfer would work: "The transfer is the transfer of the permit, it's not a transfer between units," Duffy said. She said a permit tied to a house can move with the sale of that house but cannot be moved to another address, and that detached accessory structures must remain part of the same taxed property and may not be full dwelling units.
Commissioners asked practical questions about how the changes would affect existing permit holders and homeowners associations. A commissioner asked whether the change affects people who already hold permits; staff replied that existing approved short‑term rental permits could be transferred to a new owner if the buyer pays the transfer fee and new permit fee. On HOAs, staff said their office will request a letter from an HOA clarifying whether covenants allow rentals, but the city will not itself enforce private covenants: "We're asking that HOA to give us their interpretation," the staff member said.
After clarifying questions, the Planning Commission voted unanimously to recommend approval of the text amendment. Staff said the item will be forwarded to City Council and the Public Safety Committee for further public input.
