Title
HOLD a public hearing and consider an ordinance amending Chapter 31 of the Code of Ordinances of the City of Killeen; providing for amendments to the City's zoning regulations; allowing for short term rentals.
Summary
DATE: April 4, 2023
TO: Kent Cagle, City Manager
FROM: Edwin Revell, Executive Director of Development Services
SUBJECT: ORDINANCE AMENDING CHAPTER 31 - Short Term Rentals
BACKGROUND AND FINDINGS:
Killeen Code of Ordinances Sec. 31-2 provides a definition of "dwelling, single-family," which states: "Where a single-family dwelling unit is rented, all adult residents must jointly occupy the entire premises, under a single written lease, for a period of at least thirty (30) consecutive days." As written, this definition effectively prohibits the operation of short term rentals (i.e. Airbnb's and Vrbo's) in Killeen.
Staff has identified at least 400 short term rental properties currently in operation in Killeen. Because short term rentals are not a permitted use under the Zoning Ordinance, these short term rentals are unregulated and do not pay Hotel Occupancy Tax. This results in an estimated annual loss of $700,000 in revenue and puts hotels at a competitive disadvantage.
If approved, the proposed ordinance will establish requirements for the lawful operation of a short term rental property in Killeen. The proposed ordinance includes an annual registration requirement. It would also require the property to pass an annual inspection. The proposed ordinance also establishes a spacing requirement of 200 feet between short term rentals, which would become effective one year from the effective date.
The proposed ordinance includes an intensity requirement that no more than two (2) short term rentals are allowed per two-family or multi-family building. The proposed ordinance also includes a process for permit denial or revocation and a process for complaints relating to the short term rental can be reported to the Police Departm...
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