(A) Terms of STR permit.
(1) Short-term rentals are hereby recognized as an appropriate land use. STR's are a permitted use within the following zoning districts: R-1, R-2, R-1U, C-1, C-1P, C-2, M-E, M-U. STR's are prohibited in all other districts.
(2) An STR permit shall be assigned to each residential dwelling unit used as a short-term rental. STR permits shall be valid for a period of one year.
(3) On or after June 8, 2020, it shall be a violation of the Town Zoning Ordinance to operate a short-term rental without having secured a valid STR permit in compliance with these regulations.
(4) Applications for STR permits may be submitted with supporting documentation and fees in person to the Zoning Administrator or may be delivered via U.S. Mail.
(5) An STR permit shall be obtained for each dwelling unit that is to be rented for a period of less than 90 consecutive days to a tenant, unless the property is rented for less than 14 days in a calendar year.
(6) For purposes of this subchapter, authorized applicants are referred to as “owners” and are those persons authorized in the Zoning Ordinance to submit applications for zoning, special use, conditional use, or sign permits.
(7) In the event of a sale or other transfer of any residential dwelling unit holding a valid STR permit, the permit shall automatically expire.
(8) No permit is required for incidental vacation rentals.
(B) Application process.
(1) Application. In order to obtain an STR permit, the property owner shall submit an application along with the required supporting documentation and non-refundable application fee. The application shall consist of the following information:
(a) Name and contact information of the property owner, including telephone number, mailing address, and e-mail address. If the owner is a corporation, firm, partnership, association, organization, or other group acting as a unit, the owner shall provide the name of the entity set forth exactly as it is shown in its articles of incorporation; the mailing address, telephone number, and e-mail address of an individual who is the entity’s statutory agent, president, or managing individual; the state in which the entity is incorporated or registered; and the entity’s incorporation/registration number;
(b) The address of the residential dwelling unit to be used as a short-term rental;
(c) The address of all short-term rental properties located within the planning jurisdiction for which property owner already holds a valid STR permit;
(d) The name, address, telephone number, and e-mail address of a designated responsible party for the short-term rental, which shall constitute his or her 24-hour contact information;
(e) A site-plan showing the number of bedrooms and the location of the on-site improved parking area; and
(f) A signed acknowledgement of the maximum occupancy requirements for short-term rental properties.
(2) Supplemental documentation. Attached to and concurrent with the submission of the application described in this section, the property owner shall provide:
(a) A sworn Code Compliance Verification Form;
(b) Proof of general liability insurance indicating that the dwelling unit is used as a short-term rental;
(c) Proof that the property owner has authorized use of the dwelling unit as a short-term rental. This shall include a copy of the following issued in the owner's name: (i) the deed to the property, (ii) a recent mortgage statement (issued the previous two months, or (iii) the previous year's property tax assessment; and
(d) Proof of notification to the property owners within 100 feet of the STR that the residential dwelling will be used as a short-term rental. Proof of notification is to be provided in the form of a certificate of mailing. This is a certification by the United States Postal Service that a letter was mailed. The receipt of the certificate shall be stapled to a copy of the notification that was submitted to nearby owners. The notification shall include:
1. Street address of the proposed short-term rental.
2. A statement that the property owner is applying for an STR permit.
3. Name and contact information of the owner.
4. Name and contact information for the designated responsible party, if different from the owner.
5. Maximum allowable occupancy for the property.
(3) Grounds for denial or revocation.
(a) An application for an STR permit may be denied or revoked if:
1. The property owner submitted an incomplete application;
2. The proposed short-term rental fails to meet a specified standard; or
3. The short-term rental property has incurred more than three verified violations of this section during the preceding 12 months.
(b) The property owner may appeal the denial or revocation of an STR permit to the Board of Adjustment in accordance with the provisions set forth in § 152.260 of the Banner Elk Zoning Ordinance.
(Ord. passed 7-13-2020)