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Council trims proposed short-term-rental rules, removes homestead-exemption provision after legal concern

City of Leon Valley City Council · July 22, 2026
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Summary

Council held a first reading on changes to short-term rental rules — expanding the proximity prohibition to 300 feet, capping occupancy by floor area, and making permits nontransferable — but removed a homestead-exemption clause after staff warned enforcement would be problematic.

At first reading, the council reviewed a package of short-term rental changes that would expand the existing prohibition (from 200-foot block-face to a 300-foot radius), require that permits not be transferable, add occupancy limits tied to fire-code floor area, and require prompt cleanup of trash beyond property boundaries.

The draft also included a provision that would have required short-term rental registrants not to claim the property as a homestead for tax purposes. City staff and the city attorney cautioned that determining whether a property is properly claiming a homestead exemption is the appraisal district’s purview and that city staff would be placed in a difficult enforcement role. The city attorney explained the ordinance as drafted would be a straight prohibition and would not distinguish occasional owner-occupied rentals from full-time short-term rental operations.

After discussion the council reached consensus to strike the homestead-exemption language from the ordinance before the second reading and to place the revised ordinance on the August 4 agenda (consent or regular agenda as determined by the mayor and staff). Staff will notify relevant parties of the forthcoming draft and continue legal review on enforceability.