(a) All short term rentals shall be licensed by the Division of Revenue and subject to the regulations of Section 13 of the Code of Ordinances.
(b) Except as limited by subsections (I) and (m), the number of Dwelling Units allowed to be utilized as Short Term Rentals per Property:
Zones Allowed | Hosted (Occupancy up to 10) | Hosted (Occupancy >10) | Un-Hosted | # of Dwellings on Property allowed as Short Term Rental Units |
Single Family Lots1 | ||||
R-1A, R-1B, R-1C, R-1D, R-1E, R-1T, ADU R-2, R-3, R-4, R-5, EAR-1, EAR-2, EAR-3 | Accessory Use | Conditional Use | Conditional Use | 1 dwelling unit or 1 ADU |
Multi-Family and Group Residential Lots2 | ||||
R-1T, R-2, R-3, R-4, R-5, EAR-1, EAR-2, EAR-3, CN | Accessory Use | Conditional Use | Conditional Use | 10% max or 1, whichever is greater |
B-1, P-1, MU-1, MU-2, MU-3 | Accessory Use | Accessory Use | Principal Use | 25% max. or 1, whichever is greater |
B-2, B-2A, B-2B, B-4*, I-1*, I-2*, CC, B-6P, MU-3* | Principal Use | Principal Use | Principal Use | No max. |
1 Single Family Lots may include either a detached dwelling unit or a subdivided attached dwelling unit as a principal structure.
2 Multi-Family and Group Residential Lots may include condominiums and attached single family dwelling units on one lot.
*When part of an Adaptive Reuse Project, Industrial Reuse Project, or Entertainment Mixed Use Project
(c) Maximum Occupancy Limit (for principal and accessory uses): A maximum of two (2) individuals per bedroom, plus an additional two (2) individuals; or a total of 10 individuals, whichever is less. Any host or other permanent residents of the dwelling unit present during the short-term rental period shall count toward the maximum occupancy. Occupancy for accessory dwelling units used as short-term rentals shall be in accordance with Section 3-12(m).
(d) Maximum Occupancy Limit (for conditional uses): The Board shall establish a maximum occupancy for the short term rental use in accordance with the above provision, except the Board may allow additional occupants when there is sufficient evidence that a greater occupancy will not result in overcrowding or create a nuisance.
(e) Detached accessory structures may be used as a Short Term Rental only in a permitted Detached Accessory Dwelling Unit.
(f) Short Term Rentals shall not be utilized for private events, such as weddings or parties, in which the number of participants exceeds the maximum occupancy limit. No private events shall occur between the hours of 11:00 p.m. and 7:00 a.m. Special events for a commercial purpose shall be prohibited at all times.
(g) For Short Term Rentals regulated as conditional uses, the Board of Adjustment shall take into consideration:
(1) The demonstrated compliance record of the applicant, if they operate other STRs in Lexington.
(2) Whether other STRs in the general vicinity have been cited as a nuisance, including those operated by the applicant.
(3) Whether the property being considered is located within a neighborhood that may be vulnerable to involuntary displacement based upon socioeconomic demographics.
(h) The Chair may admit all pertinent evidence for the Board's consideration, including but not limited to the sworn testimony of those present, letters and documents submitted for the record, and reports from LFUCG staff.
(i) For any conditional use permit approved by the Board of Adjustment for a short term rental, the conditional use permit shall become null and void if the applicant's short-term rental special fee license (as regulated by the Division of Revenue and Section 13 of the Code of Ordinances) lapses or is revoked.
(j) Any Short Term Rental operating in a principal dwelling unit prior to July 11, 2023, that would hereafter be regulated as a conditional use shall be allowed to continue its operation per Article 4-7, but shall utilize the new regulations provided in Sections (a), (c), (e), (f), and (h) above. Such uses shall obtain the license required above from the Division of Revenue no later than January 11, 2024 and be subject to the regulations of Section 13 of the Code of Ordinances. A change in ownership shall require a conditional use permit to be approved by the Board of Adjustment.
(k) Any Short Term Rental operating in a principal dwelling unit prior to July 11, 2023 that is located in a zone that would hereafter prohibit Short Term Rentals shall be allowed to continue its operation as a non-conforming use per Article 4-3, and shall continue to operate in accordance with the definition of a dwelling unit occupied by one family or housekeeping unit, having no more than one rental contract per week, for a total of no more than 52 rentals per year and with an occupancy of no more than 4 unrelated individuals. Such uses shall obtain the license required above from the Division of Revenue no later than January 11, 2024 and be subject to the regulations of Section 13 of the Code of Ordinances.
(l) No Short Term Rental regulated as a conditional use shall be located within six hundred (600) feet of another Short Term Rental that has either received a Conditional Use Permit from the Board or is otherwise a legal non-conforming use pursuant to Section (j), above.
(m) The number of Un-Hosted Short Term Rentals shall not exceed two percent (2%) of all dwelling units within one thousand (1,000) feet in residential zones.
(n) Relief from Sections (I) and (m) may be obtained from the Board of Adjustment on a case-by-case basis, provided the applicant demonstrates that the proposal would not contribute to an overconcentration of Un-Hosted Short Term Rentals in the immediate area and/or adversely affect the housing stock in the immediate area. In approving this relief, the Board must find the request is appropriate for at least one of the following reasons:
(1) The property is adjacent to nonresidential zones that allow Short Term Rentals as a principal or accessory use;
(2) There is a significant environmental feature or minor arterial or higher classification road that separates the proposed Short Term Rental from other Un-Hosted Short Term Rentals within the buffer area;
(3) An Un-Hosted Short Term Rental within the buffer area is located on the perimeter of the buffer area, with part of the property being located outside of the buffer area.
(o) The Board of Adjustment may consider a maximum of ten (10) new conditional use applications for Short Term Rentals per month.