(a) Purpose and Intent. The purpose and intent of this section is to regulate the health, safety, and wellness of the public, including the owners, occupants, and neighboring property owners of properties being utilized for transient occupancy within the City.
(b) Definitions. As used in this section:
(1) "Dwelling" means a building designed or used as living quarters for one or more families. The word "dwelling" includes houseboats and trailers.
(2) "Transient occupancy" means to use, occupy, or possess, or the use, occupancy, or possession of a dwelling or other living accommodation as defined for a period of thirty consecutive calendar days or less.
(3) "Transient rental" means the renting, letting, subletting, leasing, or subleasing of a dwelling for a period of thirty consecutive calendar days or less.
(c) Building Department.
(1) The Building Department shall maintain a registry of individuals offering transient rentals and maintaining essential records on licensed transient rentals.
(2) Monitor transient rentals for compliance with building codes, health codes, and provision of this section.
(3) Inspect the interior and exterior of the dwelling to be used as a transient rental property upon submission of a transient rental permit application.
(4) Investigate suspected violations of this section.
(5) Refer suspected violations of the fire, health, building, or tax codes, zoning regulations, or other laws regarding transient rental properties to the appropriate City department or the appropriate governmental agency.
(6) Revoke a transient rental permit if any false statement is made by the applicant in connection with the issuance of such permit, or for the noncompliance of a dwelling used for transient occupancy with the requirements of this chapter or if the owner or authorized agent of the dwelling used for transient occupancy refuses to comply with any provisions of this chapter.
(d) Transient Rental Permit Application.
(1) Each operator of a dwelling being used for transient occupancy must apply to the Building Department for a biennial permit beginning March 31, 2023, and pay a fee of three hundred dollars ($300.00) per dwelling biennially.
(2) To obtain a permit, the owner of the dwelling intended on being used for transient occupancy must apply for a permit on a form approved by the Building Inspector.
(3) Prior to receiving a transient rental permit, the person applying for the permit shall have an internal and external inspection of the dwelling by the Building Department.
(4) No person shall receive a transient rental permit as a dwelling unless the dwelling passes inspections, which demonstrates that:
A. The dwelling and any common spaces in the dwelling meet health, fire, and building code standards for the type of dwelling which the unit is located.
B. The unit meets any other requirements, which the Building Department shall deem necessary to ensure the health and safety of visitors during transient occupancy.
C. In the event an inspection fails, and the property requires reinspection, the owner shall pay a fee of fifty dollars ($50.00) for each reinspection.
(5) No person shall receive a transient rental permit for a property unless all property taxes, lodging taxes, and utility accounts associated with the dwelling to be used for transient occupancy are current, with no past due amounts owed, and all fees associated with the registration of the transient rental and fines assessed for violating this section have been paid. The applicant is responsible to provide all documentation requested to establish all taxes, fees, and fines have been paid in full.
(6) No person shall receive a transient rental permit if they had any transient rental permit revoked within the prior one year period.
(7) The permit shall be valid from the date of issuance. All permits will become effective beginning March 31, 2023. If it is found that the operator has been using the dwelling for transient purposes without a permit, it will follow the fine schedule as defined in division (h) of this section.
(e) Transient Rental Health Safety and Welfare Regulations.
(1) Only one open rental agreement per dwelling is permitted at a time for the purpose of transient occupancy.
(2) No person shall be allowed to transient rent a dwelling that is in violation of the City's building and zoning codes or the provisions of this chapter.
(3) No person shall be allowed a transient occupancy of a dwelling that has had its permit revoked or denied.
(4) No person shall allow a dwelling to be listed or advertised as a transient rental prior to obtaining a valid transient rental permit.
(5) No person shall allow a dwelling to be listed or advertised as a transient rental if the transient rental permit has been revoked or denied.
(6) No person shall allow a dwelling to be used for illegal purposes or in a manner that threatens the health, safety, or welfare, or impedes the quiet enjoyment of, neighboring properties.
(f) Enforcement Procedures.
(1) Upon the filing of a complaint that a person has engaged in a transient rental in violation of this chapter, the Building Department shall take all steps necessary to determine the validity of the complaint.
(2) The Building Department shall independently determine whether a person has offered transient rental in violation of this chapter.
(3) If while investigating transient rental activity the Building Inspector discovers suspected violations of the fire, health, building, or tax codes, or the zoning regulations, or other laws, the Building Inspector shall report such suspected violation to the relevant City department or governmental agency.
(4) To determine if there is a violation of this section, the Building Department shall initiate an investigation of the subject property and/or request any pertinent, information from a person offering transient rental, including records required by this chapter, leases, or other documents.
(5) If the Building Department determines that a person has violated any provision of this section, the Building Department shall issue a cease-and-desist order and shall assess the appropriate penalty and fines for said violation.
(6) The Building Department's ability to assess penalties and fines for violations of this section, are separate and apart from any civil or criminal violations, penalties, and fines able to be assessed by any other City department, including, but not limited to, the City of Vermilion Fire Department and the City of Vermilion Police Department.
(g) Owner Responsibilities.
(1) The owner is responsible to timely pay all lodging taxes as specified in C.O.V. Chapter 866.
(2) The owner is responsible to ensure occupancy does not exceed the permitted occupancy provided for in the transient rental permit.
(3) If a dwelling used for transient rental purposes changes owners, both the prior and new owner are responsible for notifying the Building Department of said change within fourteen calendar days of the effective date of the transfer. Such notice shall be in writing and shall include: the name, address and telephone number of the new owner and the name, address, and telephone number of the previous owner. The transit rental permit shall not be transferred or assigned to the new property owner. New owners must apply for a new transient rental permit.
(4) The owner is responsible to ensure that use and/or occupancy of the dwelling does not violate any provision of this chapter.
(h) Penalties and Fines.
(1) The Building Department shall assess the owner for violations of this section as follows:
A. First violation - $500 fine.
B. Second violation - $1,000 fine.
C. Third violation - $2,500 fine.
(2) Multiple violations that arise out of the same set of facts or circumstances, or occur on the same date, may constitute one violation or multiple violations based upon the severity of the violations as determined by the City of Vermilion Building Department.
(3) Each day the dwelling owner violates this section shall constitute a separate violation.
(4) The City has the right to revoke the owner's right to use his or her dwelling for transient occupancy upon written notice after three violations of this chapter within a period of twelve months, or, in cases of egregious violations that constitute a substantial threat to health, safety and welfare of City residents, after one violation of this chapter. If the City revokes the owner's right to use his or her dwelling for transient occupancy, such revocation shall be for a period of no less than twelve months from the date of violation.
(5) The Law Director may institute a civil action to enforce the provisions of this chapter, including without limitation, an action seeking injunctive relief, an award of fees, penalties, and fines due under this chapter, and/or other applicable monetary damages, which may include an award of costs and reasonable attorney's fees.
(Ord. 2022-33. Passed 8-8-22.)