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Ord. 1611 2022-04-11 ORDINANCE NO. 1611 An Ordinance of the City Council of the City of Pearland, Texas, amending Chapter 20 of The Code of Ordinances of The City of Pearland, Texas, by repealing Article IX, Short-term Rentals, of the City Code of Ordinances and adopting a new Article IX, Short-term Rentals; establishing requirements and regulations for the operation of properties as Short-term Rentals within the corporate limits of the City of Pearland; providing a savings clause; providing a penalty clause; a repealer clause and providing for publication. WHEREAS, the City, being a home-rule city, has authority to utilize police power regulation for the health, safety and general welfare of the citizens of the City; and WHEREAS, residential Short-Term Rentals are being operated within the City of Pearland and in order to preserve the health, safety, and welfare of local homeowners, neighborhoods, citizens, and visitors of Pearland, the institution of a Short-Term Rental regulatory ordinance is necessary. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS: Section 1. That Chapter 20 of the Code of Ordinances of the City of Pearland, Texas, is amended by adding Article IX, Short-term Rental, to read as follows: “Article IX – Short-Term Rentals Sec. 20.110. Definitions Agent. A person designated in writing by a Short-term Rental owner or operator, in lieu of themselves, as the 24-hour emergency contact for a lawfully operating short- term rental. City. The City of Pearland, Texas. Director. The person designated by the City Manager to administer and/or enforce the provisions of this Ordinance. Guest. A person contracting with a Short-term Rental for use of a residential dwelling or bedroom(s) as a Short-Term Rental and the person’s invitees at the Short-Term Rental. DocuSign Envelope ID: D655D6B0-F001-4000-A00E-129AC1B0B620 Hotel Occupancy Tax. Tax paid in accordance with Chapter 351 of the Texas Tax Code and Chapter 28, Article III of the Pearland Code of Ordinances. Operator. Any person who operates a Short-Term Rental, as defined in this Article. Owner. The person or entity that holds legal and/or equitable ownership or title interest to real property rented out as a Short-term Rental. Person. Any individual, corporation, business, or other organization. Short-term Rental. A residential dwelling unit or bedroom(s) in a residential dwelling unit that is rented out for compensation on a temporary basis for a period of less than thirty (30) consecutive days. Short-term Rental Permit (Permit). A Permit issued by the City that authorizes the use of a residential property as a Short-term Rental. Sec. 20.111. Short-Term Rental Permit Required No person shall hereafter advertise, offer to rent or rent or lease a residential property within the City as a Short-term Rental without first obtaining a Permit from the City. Sec. 20.112. Short-term Rental Permit Application 1. Each application for a Permit shall be accompanied by a non-refundable permit application fee and shall include the following information: (a) Proof of home ownership with the name, address, phone number and e- mail address of the property owner(s) of the Short-Term Rental property; (b) Name, address, e-mail address and 24-hour phone number of an emergency contact person who is the owner, operator or designated Agent and who shall be responsible and authorized to respond to complaints concerning the Short-term Rental within one hour or less; (c) The number of bedrooms to be used for Short-term Rental Occupancy which shall be verified during the Initial Inspection; (d) Name, address, e-mail address, and telephone number of the Short- term Rental property owner, operator, agent and mortgagee; (e) Zoning classification of the property; DocuSign Envelope ID: D655D6B0-F001-4000-A00E-129AC1B0B620 (f) Acknowledgement of whether the premises was operated as a Short- term Rental during the 12-months prior to the date of the permit application and whether the City’s Hotel Occupancy Tax, for the previous 12-month period, was paid to the City; (g) Acknowledgement of receipt of a copy of this Article and the Owner’s agreement to comply with all provisions of this Article as a condition to issuance of a permit. 2. A permit shall not be transferrable. 3. Unless previously revoked by the Director pursuant to this Article, a Permit expires one (1) year after its date of issuance; except that if a Permit holder commits no more than one (1) substantiated violation of this Article during the Permit period, the Permit shall automatically be extended for one (1) additional year. No Permit shall extend beyond a two (2) year term. 4. The permit holder, prior to renting a Short-term Rental to Guests, shall provide updated information to the City of any changes to the name, address and 24-hour telephone number of the emergency contact person who is the Owner, Operator or designated Agent responsible and authorized to respond to complaints concerning the Short-term Rental. 5. The City shall provide a link on the City’s website containing a list of all active Short-term rental Permits with their addresses and emergency contact numbers. Sec. 20.113. Inspection Required a. Initial Inspection. Upon the application for a permit, and prior to the occupation of a Short-Term Rental by Guests, the applicant shall schedule an Initial Inspection of the residential structure with the Fire Marshal’s Office to determine compliance with the following minimum occupancy standards: (1) Number of bedrooms (2) Working smoke detector installed in bedrooms (3) Working smoke detector installed in hallways (4) Bedrooms have 2 means of escape (5) Working CO detectors (6) Fire extinguisher present, accessible & inspected b. Re-inspection Deficiencies. If, upon completion of the Initial Inspection, the premises are found to be deficient in one or more provisions of this Section, DocuSign Envelope ID: D655D6B0-F001-4000-A00E-129AC1B0B620 the City shall provide written notice of such deficiencies. It shall be the responsibility of the applicant to schedule a Re-inspection of the premises, and a permit shall not be issued until the premises passes inspection. c. Renewal Certification. Each Owner shall annually certify in writing that the premises complies with the Initial Inspection occupancy standards of this Subsection prior to the issuance of each renewal permit. d. Additional Inspections Authorized. The City may, at its sole discretion, perform additional inspections of a permitted Short-term Rental when a violation(s) of this Article is reported or suspected. Sec. 20.114. Restrictions on Short-Term Rentals a. External Signage. There shall be no external on-site or off-site advertising signs or displays indicating a property is a Short-term Rental. b. Limit on occupants. No more than two adult guests per bedroom, and no more than two additional adults shall be allowed in a Short-Term rental, except that there shall be a maximum occupancy of ten (10) persons, including adults and children. c. Parking. The Owner shall provide off-street parking on the premises of the Short-term Rental to accommodate at least one motor vehicle per bedroom. Guests that park in the public right-of-way shall do so in a manner that preserves the ingress and egress of adjacent and neighboring properties. d. Advertisements. Any advertisement of a property as a Short-term Rental shall contain language that specifies the following information: (1) City Short-term rental Permit Number (2) Maximum permitted occupancy limits (3) Off-street parking requirements (4) Written prohibition against the use of the property as a party/entertainment venue; or any commercial/ non-residential use that violates the City’s Zoning Regulations e. Posting of Permit. Each owner of a Short-term Rental shall post a copy of the City issued permit at a visible location inside the primary entrance to the dwelling. The Permit shall contain the following information: (1) The owner, operator or designated agent’s name and twenty-four (24) hour contact telephone number; (2) Location of the fire extinguisher(s); (3) Maximum permitted occupancy; DocuSign Envelope ID: D655D6B0-F001-4000-A00E-129AC1B0B620 (4) Description of the required off-street parking requirements; (5) Written prohibition against the use of the property as a party/entertainment venue; or any commercial/ non-residential use that violates the City’s Zoning regulations; f. 24-hour Available Contact Person. Should a law enforcement officer respond to a complaint regarding a Short-term Rental and issue a citation or warning for any violation of City ordinances or other law, the responsible Agent may be contacted by the officer. If contact is made, the Agent shall contact the occupants of the Short-term Rental within one (1) hour of the contact from the City to address the occupants regarding the complaints. g. Other restrictions. It shall be unlawful: (1) To operate a Short-term Rental that fails to comply with all applicable City and state laws and codes; (2) To offer or allow the use of a Short-term Rental for the purpose of having a party venue; or any commercial/ non-residential use that violates the City’s Zoning regulations; (3) To fail to include a written prohibition against the use of a Short-term Rental for use as a party venue in each advertisement, listing, or other publication offering the premises for rent; (4) To allow the rental of a Short-term Rental for less than a 24-hour period; or (5) To allow the use of tents, hammocks, recreational/camper vehicles or other vehicles and outdoor areas that are not residential dwellings as Short-Term Rentals. Sec. 20.115. Permit Denial or Revocation The Director may determine a permit required under this Article should be denied or revoked for the reasons set forth below. Written notice of the proposed denial or revocation of a permit shall be provided to the applicant, along with a copy of the reasons detailed below and a statement informing the applicant of their right to contest the denial or revocation of the permit in the manner set out below. (a) Reasons for Denial or Revocation of Permit. The application shall be denied, or a permit may be revoked, if the City finds: 1. The property is not in compliance with the applicable zoning requirements; 2. Any statement made in the application is incomplete, inaccurate, DocuSign Envelope ID: D655D6B0-F001-4000-A00E-129AC1B0B620 misleading, or false; 3.Three (3) or more substantiated violations of this Article, and any applicable federal, state or local law, occurred within a twelve (12) month period; 4.The applicant owes an outstanding debt to the City for any reason, except for ad valorem taxes and special assessments; 5.An owner operates Short-Term rental without registering and paying all local, county and state hotel occupancy taxes in accordance with Chapter 351 of the Texas Tax Code and Chapter 28, Article III of the Pearland Code of Ordinances. (b)Appeal. Prior to the revocation of a permit, the Director shall notify the Owner, in writing, of the reason for which the Permit is being revoked, and that the Permit shall be considered revoked at the end of the tenth (10th) calendar day following service of such notice (“Notice Period”), unless a written request for a hearing is received by the Director within the Notice Period. If a written request for a hearing is received by the Director within the Notice Period: (1) the revocation shall not take effect until the conclusion of a hearing process; (2) no less than two (2) business days prior to the hearing, the Director shall provide the Owner with notice of the time and place of the hearing; and (3) at the conclusion of the hearing the Director shall make findings based on a preponderance the evidence reviewed at the hearing. (c)Administrative Process. A notice required by this Section is properly served when it is delivered to the Owner via hand-delivery, or when it is sent by registered or certified mail, return receipt requested, or when it is sent via any courier service that provides a return receipt showing the date of actual delivery to the last known address of the Owner. A hearing provided for in this Section shall be conducted by the Director who shall make final findings to sustain, modify or rescind the notice of revocation considered in the hearing. A written report of the hearing decision shall be furnished to the Owner by the Director within three (30)business days following the conclusion of the hearing. (d)Waiting Period. An Owner whose Permit is revoked may not reapply for a new Permit for a period of twelve (12) months following a revocation. Sec. 20.116. Penalties. (a)Any person who knowingly or intentionally violates any subsection of this Article shall be punishable by a fine not to exceed the fine DocuSign Envelope ID: D655D6B0-F001-4000-A00E-129AC1B0B620 established in section 1-11 of the City Code of Ordinances. (b)Each day the property is used or advertised as a Short-Term Rental in violation of this Article shall constitute a separate offense.” Section 2. Savings. All rights and remedies which have accrued in favor of the City under this Chapter and amendments thereto shall be and are preserved for the benefit of the City. Section 3. Severability. Should any section or part of this ordinance be held unconstitutional, illegal, or invalid, or the application to any person or circumstance for any reasons thereof ineffective or inapplicable, such unconstitutionality, illegality, invalidity, or ineffectiveness of such section or part shall in no way affect, impair or invalidate the remaining portion or portions thereof; but as to such remaining portion or portions, the same shall be and remain in full force and effect and to this end the provisions of this ordinance are declared to be severable. Section 4. Repealer. All ordinances and parts of ordinances in conflict herewith are hereby repealed but only to the extent of such conflict. Section 5. Codification. It is the intent of the City Council of the City of Pearland, Texas, that the provisions of this ordinance shall be codified in the City’s official Code of Ordinances as provided hereinabove. Section 6. Publication and Effective Date. The City Secretary shall cause this Ordinance, or its caption and penalty, to be published in the official newspaper of the City of Pearland, upon passage of such Ordinance; the Ordinance shall then become effective on July 1, 2022. PASSED and APPROVED ON FIRST READING this the 28th day of March, A. D., 2022. ________________________________ J.KEVIN COLE MAYOR ATTEST: _____________________________ LESLIE CRITTENDEN CITY SECRETARY DocuSign Envelope ID: D655D6B0-F001-4000-A00E-129AC1B0B620 PASSED and APPROVED ON SECOND AND FINAL READING this the 11th day of April, A. D., 2022. ________________________________ J.KEVIN COLE MAYOR ATTEST: ____________________________ LESLIE CRITTENDEN CITY SECRETARY APPROVED AS TO FORM: ____________________________ DARRIN M. COKER CITY ATTORNEY DocuSign Envelope ID: D655D6B0-F001-4000-A00E-129AC1B0B620