(a) Conditions of ineligibility for listing. A short term residential rental shall be ineligible for registration with the Department as a shared housing unit or for licensure as a bed-and-breakfast establishment or vacation rental, and shall not be listed by a provider on a platform, under the following conditions:
(1) Nuisance. When, in the determination of the Commissioner, the rental of the short term residential rental creates a nuisance because at least two separate incidents involving illegal activity or objectionable conditions, as those terms are defined in Section 4-14-010, occurred, in any combination, during a 12-month period: (i) in any short term residential rental operated by the Provider; or (ii) in or on the premises in which the short term residential rental is located; or (iii) in the short term residential rental's parking facility; or (iv) on adjacent property. For purposes of determining whether any nuisance occurred during a 12-month period, such illegal activity or objectionable conditions shall be limited to acts of the guests or invitees of the guests, or to acts otherwise involving circumstances having a nexus to the operation of the short term residential rental while rented to a guest; or
(2) Egregious condition. When the short term residential rental is the situs of an egregious condition; or
(4) Uncorrected code violations. When a short term residential rental is found to be in violation of any applicable licensing or registration chapter of this Code, and the condition that gave rise to the violation has not been corrected; or
(5) Suspension or revocation. When any license or registration of any Provider is suspended or revoked under this Code; or
(6) Zoning violation. When the area in which the short term residential rental is located is not properly zoned for the applicable use. Provided, however, that any dwelling unit properly licensed as a vacation rental as of June 22, 2016 shall be deemed to be in compliance with the applicable zoning requirements of this Code that applied and were in existence at the time such vacation rental license was approved; or
(7) Rental caps exceeded. If the short term residential rental is a shared housing unit, when any unlawful act set forth in Section 4-14-060 occurs; or
(8) Shared housing host is not a natural person. If the short term residential rental is a shared housing unit, when the registered shared housing host is not a natural person; or
(9) Building owner prohibits all vacation rentals or shared housing units from operating in such building. If the building contains five or more dwelling units, when the owner of the building or an individual authorized by the owner of the building notifies the Commissioner, in a manner prescribed by rule, that no short term residential rentals are permitted to operate anywhere in such building. Provided, however, that if the building is a cooperative building, condominium building or building governed by a homeowners' association, the requirement that such building must contain five or more dwelling units shall not apply for purpose of this subsection (a)(9); or
(10) Suspension or revocation of related licenses. If the short term residential rental is a shared housing unit, when the shared housing host has had a vacation rental license, bed-and-breakfast establishment license, hotel license or shared housing unit operator license, or a shared housing unit registration under this chapter, suspended or revoked for cause for the shared housing unit identified in the registration application or for any other shared housing unit registered with the city; or
(11) Short term residential rental is located in a restricted residential zone and was not a legally established use as of the effective date of the ordinance establishing such zone. If the short term residential rental is a shared housing unit or vacation rental, when: (i) such short term residential rental is located in a restricted residential zone, and (ii) such shared housing unit or vacation rental, as applicable, was not a legally established use within the meaning of Section 4-17-070 as of the effective date of the ordinance establishing such restricted residential zone; or
(12) Conversion unit. When the short term residential rental is a conversion unit; or
(13) Coach house. When the short term residential rental is a coach house lawfully established after May 1, 2021.
(b) Ineligibility for listing on a platform – Notification process. Upon determining that a short term residential rental is ineligible under this subsection to be listed on a platform, the Commissioner shall notify the Provider and intermediary, in writing, of such fact and of the basis for the determination of ineligibility. Such notice shall include a statement informing the Provider and the intermediary that such Provider may, within 10 calendar days of the date on which the notice was sent, request, in a form and manner prescribed by the Commissioner in rules, a hearing before the Commissioner to contest the determination of ineligibility for listing. The notice shall also advise the Provider and intermediary that the Provider is entitled to present to the Commissioner any document, including affidavits, related to the Commissioner's determination. If requested, a hearing before the Commissioner shall commence within 10 business days of receipt of such request. Within 60 calendar days of completion of the hearing the Commissioner shall either affirm or reverse such determination based upon the evidence presented. The Commissioner's determination shall be final and may be appealed in the manner provided by law. If a Provider fails to request a hearing within the prescribed time, the Commissioner's determination shall be final and the short term residential rental shall be deemed ineligible for listing on the platform.
(Added Coun. J. 6-22-16, p. 27712, § 8; Amend Coun. J. 9-9-20, p. 20269, § 15; Amend Coun. J. 12-16-20, p. 26066, § 7; Amend Coun. J. 3-24-21, p. 28843, § 1; Amend Coun. J. 4-21-21, p. 29948, § 6; Amend Coun. J. 11-7-22, p. 54948, Art. V, § 3)