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Council asks city attorney to draft short-term rental moratorium; amendment allows renewals for compliant hosts

Ann Arbor City Council · July 20, 2026
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Summary

Council directed staff to draft a six‑month moratorium on new short‑term rental licenses while studying enforcement and regulatory changes; a friendly amendment clarified that renewals for existing, compliant STR licenses would be allowed.

Ann Arbor City Council voted to direct the city attorney to draft an ordinance imposing an interim moratorium on issuance of new short‑term rental (STR) licenses while staff studies how to strengthen enforcement and address the growth of unlicensed listings.

Councilmember Cornell offered an amendment—accepted as friendly—that would permit renewal licenses for existing, compliant short‑term rentals. Cornell said the change was intended to reduce harm to small businesses who had followed rules while giving staff time to propose regulatory fixes. "To address some of the concerns we heard ... while allowing renewal licenses for existing and compliant short term rentals," he told council during the amendment proposal.

Supporters said the pause is needed because unlicensed STRs have proliferated despite a regulatory framework; opponents at public comment, including licensed hosts, warned that a blanket freeze would harm compliant small operators and urged exemptions for pending applications and renewals. "A blanket freeze would mainly harm the people trying to comply," said short‑term rental owner Sierra Wolfkosten.

Council discussed enforcement options, including stricter fines for repeat violators, inspection parity with long‑term rentals, and whether to cap license numbers. Councilmember Dish cautioned the body to avoid a moratorium that would duplicate or preempt planned UDC (Unified Development Code) work.

Roll‑call results were recorded in the meeting transcript: the motion passed with a majority in favor; one councilmember voted no and two were absent. The resolution directs staff to return recommended language for a moratorium and related STR ordinance changes for future council consideration.

Next steps: The city attorney and relevant departments will prepare proposed ordinance text and staff recommendations addressing enforcement, renewal/exception criteria, and possible license limits for council review.