a report from Councillor Craig Kelley, Chair of the Public Safety Committee, for a public hearing held on March 21, 2018 to discuss the implementation of the Short-Term Rental Ordinance

c. c, 108 Oity of Cambridge PUBLIC SAFETY COMMITTEE MEMBERS In City Council April 23, 2018 The Public Safety Committee held a public hearing on Wednesday, March 21, 2018 at 3:03 PM in the Ackermann Room. The purpose of the hearing was to discuss the implementation of the Short-Term Rental Ordinance. Present at the hearing were Councillor Kelley, Chair of the Committee, Vice Mayor Devereux, Councillor Toomey, Councillor Zondervan, City Solicitor Nancy Glowa and Vali Buland, First Assistant City Solicitor, Inspectional Services Commissioner Ranjit Singanayagam, Iram Farooq, Assistant City Manager for Community Development Department, Robert Reardon, Director of Assessing, Will Durbin, Chief of Staff for Mayor McGovern and City Clerk Donna P. Lopez. Councillor Siddiqui was also present and was participating in the meeting remotely. Also present were Tracy Sorto, Jimmy Gomez, Robyn Culbertson and Nancy Ryan. Councillor Kelley announced that the meeting was being audio recorded privately. Councillor Kelley convened the hearing and explained the purpose. An agenda was distributed (ATTACHMENT A). Councillor Kelley went through remote participation process. Councillor Kelley announced that there was a quorum of the committee present in the room. He stated that Councillor Siddiqui will not be attending the meeting and will be participating remotely in the hearing. He explained that this information must be recorded in the hearing minutes. Councillor Kelley asked Councillor Siddiqui to confirm that the hearing was audible to her. Councillor Siddiqui responded in the affirmative. Councillor Kelley announced that Councillor Siddiqui is clearly audible to the committee. Councillor Kelley announced that all votes taken in the hearing must be roll call votes. Councillor Kelley opened public comment. No one appeared and public comment was closed. Councillor Kelley gave a brief overview of this ordinance and the process. This is a hearing on the short-term rental (STR) ordinance implementation. He spoke of an illegal STR in his neighborhood. He stated that STRs are part of a global economy. He stated

that the Massachusetts House Committee is looking at state legislation on STRs. He gave a Powerloint Presentation (ATTACHMENT B). He gave an overview of the history of the STR Ordinance. The theme of the STR regulation is to make STRs safe, fair and legal. He gave the definition of a STR. He stated that the Inspectional Services Department website has information on STRs and informational sessions have been held (ATTACHMENT C). He outlined the issues to be discussed at this hearing. He stated that STRs have never been legal in Cambridge. Commissioner Singanayagam explained that 78 applications have been received and no registrations have been issued; they will be issued on April 1, 2018. He stated that complaints have been filed on STRs and inspectors have been sent to the STRs. He stated that there are many STRs in the city. A third party may need to be hired to gather information on STRs. Enforcement is currently underway for those units that do not qualify as a STR. Zoning does not allow STR usage in most of the City. He stated that Housing Inspectors are used to do inspections of STR units. Councillor Kelley stated that there are roughly 1500 units on line operating as STR and have not started the application process. This is a huge issue. Commissioner Singanayagam explained that the City needs to get the STR locations in the City and then notice can be sent that they are operating STRs illegally and then they can be fined. He stated that if a complaint is received about the operation of STR an inspector is sent out. Councillor Kelley noted that there are roughly 1500 STR units not in compliance with the ordinance and that could lead to a huge volume of last minute applications and related processing challenges. He asked what will be done on April 1st regarding these units. Commissioner Singanayagam stated that services are being looked at currently; there is no contract to obtain vendor STR compliance services. Vice Mayor Devereux stated that because the ordinance does not become effective until April Ist the City cannot have a vendor as a data scraper to locate the illegal units. Commissioner Singanayagam stated that the City has tried to work with Airbnb and no information has been provided. He explained that unless the City knows that a STR is being conducted nothing can be done. Vice Mayor Devereux questioned what type of communication with Airbnb was used. Commissioner Singanayagam responded that e- mails were used and that there was no response. Councillor Zondervan stated that currently Airbnb lists 300 rental units. Commissioner Singanayagam noted that the addresses for the rental units are not listed. Councillor Kelley stated that there are organizations that will run data scraping information and will contact the owners of the STR units. Councillor Kelley noted that the next step to ensure compliance has not been set up for after April Ist. Commissioner Singanayagam explained that funding needed to be secured from the City Manager for this service. He stated that he thought Airbnb would help the City with this information. Councillor Kelley questioned when will letters of non-compliance go out. Commissioner Singanayagam stated that the non-compliance letters will be sent out next month. Councillor Kelley asked how can the City Council help to ensure that this happens on April 1. Commissioner Singanayagam stated that he will get a list of all Airbnb 2

establishments and letters will be sent from Inspectional Services Department. Councillor Kelley spoke about the amount of work needed to be done for the 1500 non- compliance units and asked how the work flow will be handled. He asked how is the City prepared to deal with this. Commissioner Singanayagam stated that the City could go to court to get access to property. Councillor Toomey asked when a complaint is issued and a property owner does not come to door, how is this handled. Commissioner Singanayagam responded that a registered letter is sent and then the City could go to court to gain access. City Solicitor Glowa noted that this will be a process. If this starts out aggressively the word will get out and individuals will back off from doing STRs. This process may take a few months. Councillor Zondervan questioned if there are other types of enforcement. He suggested that the City rent rooms undercover and then charge the property owners. City Solicitor Glowa explained that these are policy and budgetary decisions needed to be made by the City Manager. She stated that deploying resources needed the City Manager input. A foundation needs to be laid before seeking court action. Vice Mayor Devereux asked if the ordinance requires Airbnb to have Cambridge STRs be registered. Mr. Durbin this was limited to zoning. There is nothing on the Airbnb site that explains that before establishing an STR you must file with Inspectional Services Department. City Solicitor Glowa stated that when the City met with Airbnb they stated that they would put a registration number on the website. Mr. Reardon stated that Airbnb is waiting for the state to propose state legislation because that might change local rules. There was cooperation, but Airbnb is hoping that state legislation will override the Cambridge ordinance. This state bill (ATTACHMENT D) is increasing in momentum. This is a waiting game on the part of Airbab. Councillor Siddiqui questioned how many people showed up for the informational sessions. Commissioner Singanayagam responded 12-15 people per session. Mr. Durbin added that the state bill passed under Ways and Means and that amendment # 6 would be detrimental to the Cambridge ordinance. There is expected to be a vote on this amendment tomorrow. Councillor Kelley stated that this section prevents Cambridge from collecting local excise tax but does not seem to keep the City from having its own relevant zoning. Mr. Reardon stated that the City Council would have to accept the provisions of this state law. Councillor Kelley stated that the City would have to opt into this. A wait and see altitude could be taken. Cambridge needs to be able to move quickly to do what it said it would do or to be clear that the City staff wants to put a pause to see what the state will do. Either would be fine but there needs to be clarity. He stated that there is an underestimation of the work that the STR ordinance will require. The City needs to be

ready to move forward when the rules are known. It could be 1500 licenses or violations and that is a lot of work to process. Vice Mayor Devereux stated that she did not know that the state was debating this. This is unfair to the cities and towns and time, money and staff time that has been spent. She noted that if the state votes in the next week the City can wait on implementation. Councillor Toomey stated that it depends on the time at the state and that the latest action at the state can be July 31, 2018 but that lots of legislative actions can change before they are finalized. Councillor Kelley stated that the City may be in limbo for several months and law can be changed at any time afterwards. He wanted to make a decision to wait based on what is adopted by the state. Councillor Zondervan stated that it is unclear how home rule or state law would affect the Cambridge Ordinance. The City has to opt in. The current ordinance is enforceable and could be enforced as of April I. Mr. Reardon explained that the City expected cooperation from data platforms. He stated that the City does not want to be spend resources if this is passed by the state because if we change our rules in response to state action it will be very confusing for everyone. Councillor Kelley asked what ability does the legislature have to override Cambridge zoning. City Solicitor Glowa noted that the zoning act could be amended. She stated that she wanted to read and to understand the impact of the state bill. It is unlikely it will affect current zoning. Councillor Zondervan asked what are the penalties. Commissioner Singanayagam responded that the fine is $300 per day. Councillor Kelley stated that the challenge of catching a violator is daunting for City staff. He stated that it is not legal now and 78 applicants have applied and 24 have attended the informational sessions. People are doing their registrations in good faith and a City compliance effort cannot be delayed forever. He spoke about continuing enforcement on a complaint driven basis. Vice Mayor Devereux stated that once content of this hearing is known, were she a STR operator, she would not register yet. City Solicitor Glowa commented that Airbnb that is following this legislation very closely. She added that the 78 applicants are small STRs and not large platform operators with many units. There is a limited benefit to instituting aggressive enforcement without knowing the final status of relevant state law. Councillor Kelley noted that the only disadvantage to the City's not opting into a potentially restrictive state law is the loss of excise tax which is something Cambridge may not like but could afford City Solicitor Glowa stated that she did not want to discuss possible litigation strategy as this will depend on the outcome. Mr. Reardon stated that letters can be sent out to landowners in the City to explain that Airbnb is regulated by City Ordinance. He further stated that it would be ideal if Airbnb put the City's requirements on their website. The 4

down side is that tenants may be doing STRs without landlord knowledge. City Solicitor Glowa explained that the reason that the City is not moving forward to send letters in the event that something changes with the state. Councillor Zondervan spoke about the excise tax and as he reads the state legislation this is significant revenue lost that would help to enforce the ordinance. Vice Mayor Devereux asked will zoning change. City Solicitor Glowa responded that she has not read the legislation and opting in may not have ability to have a zoning ordinance provision. Councillor Zondervan stated that currently the bill is to opt in and impose restrictions on local regulations but this will change as the state bill progresses. Assistant City Manager Farooq stated her concerns about enforcement and wanted to wait to see the state legislation and to create a fall back plan. This would allow a more concrete plan. She stated that business renters may be easier to identify. Commissioner Singanayagam stated that letters have been sent to the management companies who run STRs. Councillor Kelley stated that he is frustrated with where the City is, but understands moving forward may lead to confusion. The City is underestimating the amount of work to manage those who have not yet registered properly and the time needed for future registrations. He encouraged the City to have a data scraper on site. Ms. Farooq explained that the bid process could take 2-3 months to get a vendor to do this work. She stated that if this cannot be handled properly it will not be good for the City. Councillor Kelley stated that he wanted this vendor ready when the state law is passed. City Solicitor Glowa commented on the contracting process and decision-making process. She spoke about the importance of collecting the data and communicating to the property owners. Councillor Toomey stated that regarding the state bill that Airbnb is active at the state lobbying on this. Vice Mayor Devereux asked what can be done to protect the City Ordinance. Councillor Kelley responded that something will be submitted by the City Council opposing state restrictions on local regulation. Ms. Farooq requested that in drafting a resolution that it contain the housing piece. Councillor Kelley stated that those who play by the rules the City sets, whether for STRs or new mobility devices or marijuana, need to have faith that the City will enforce the rules or they may be at a disadvantage compared to scoffiaws. Mr. Reardon spoke about the data scraper information. He stated that the data is not that good. He urged caution about notifying the right individuals. He stated that the state legislation will be resolved sooner rather than later. Councillor Kelley stated that he wanted a plan in place. At this time Councillor Kelley made the following motion: 5

ORDERED: That the Public Safety Committee does not support any legislation that would remove the option of municipalities to pass an ordinance regulation short-term rentals (STR). On this motion the roll was called and resulted as follows: YEAS: Vice Mayor Devereux, Councillors Kelley, Siddiqui and Toomey - 4 The motion - Carried Councillor Kelley thanked all those present for their attendance. The following communication was received from William D. Burns, Senior Adviser, Airbnb, outlined the outreach efforts that Airbnb has undertaken in Cambridge (ATTACHMENT E). The hearing adjourned at 4:09 P.M. For the Committee, Courage Kelley Public Safety Committee Madel

PUBLIC SAFETY COMMITTEE COMMITTEE MEETING ~ AGENDA ~ ATTACHMENT A Ackermann Room 3:00 PM Wednesday, March 21, 2018 Call of the Meeting The Public Safety Committee will conduct a public hearing to discuss the implementation of the Short-Term Rental Ordinance. Public Comment Welcome Councillor Kelley to give introduction and overview Presentation Councillor Kelley to present on the history of our Public Safety Committee hearings, when the Short-Term Rental Ordinance was first submitted, when it was passed, and when it goes into effect, what is covered during Inspectional Services meetings, and a summary of what the ordinance rules are. Updates from City Staff Inspectional Services Department and City staff to explain plans on implementation. General Discussion cambridgema.gov Last Updated: 3/19/2018 11:44 AM City of Cambridge

ArACHMENT B Short-Term Rental (STR) Ordinance Implementation PUBLIC SAFETY COMMITTEE

Massachusetts House Committee reviews STR legislation* Draft language for short-term rental regulations Communication forms and mediums between residents and the City public space Role of police officers in the community and Central Square substation installation Short-Term Rental ordinance implementation the original draft *To be discussed at the end of this meeting City's recommendation on a Surveillance ordinance and evaluation of May 30 2017 March 21 2018 March, 21, 2018 March | 2017 June 13 2017 October 182017 - September 272017 University communication and preparations for events that impact COMMITTEE MEETING HISTORY

CA COMPLIANCE discussions with stakeholders and the Public Safety and Housing Committees The ordinance goes into effect on April | 2018 Short-term rentals (less than 30 days) are generally illegal per zoning It was ordained on August 7 2017- Safe, Legal & Fair - Roughly 1500 short-term rental units exist in Cambridge - The STR ordinance was first drafted in by Councillor Kelley in 2016 followed by SHORT-TERM RENTAL ORDINANCE HISTORY

February 27 2018 February 13 2018 • March 27 2018 conditions of their property. Past and scheduled meetings are as follows: Cambridge residents to ask questions about the new ordinance, eligibility requirements, INSPECTIONAL SERVICES INFORMATIONAL SESSIONS informational sessions on the STR Regulations. These sessions are designed for The Cambridge Inspectional Services Department (ISD) has held and continues to hold the process of obtaining a Certificate of Registration, or check on the specific

bedrooms) building containing four or less units, and may rent out an entire unit (not individual Live in the STR unit as a primarily residence, and may rent out up to three bedrooms; Or.... Live in a unit adjacent to the STR unit, as a primarily residence, and own all other units in a primary residence emergency exits, local contact info, the certificate of registration STR operators must pass a housing inspection and post information on waste disposal, STR refers to the rental of a dwelling unit or bedroom for residential accommodation for less than 30 consecutive days The STR operator must: SHORT-TERM RENTAL ORDINANCE SUMMARY • The STR operator must be an owner or tenant (with owner permission) of the unit • STR operators must apply with the ISD, providing proof of insurance, floor plans, and proof of

Cambridge, MA, 02|39 83l Massachusetts Ave [phone removed] www.CambridgeMA.gov/ShortTermRental Inspectional Services ADDITIONAL RESOURCES

v. 11/21/2017 Olty of Cambridge short-term rental * OPERATOR-OCCUPIED You qualify to operate one yes primary rent your residential part of a Do you have Is your place residence 1? permission to yes association's condominium yes permission to Is the place you your landlord's operate a STR? condominium yes operate a STRP Do you have the yes no set forth in Zoning Ordinance Section 4.60 - Short-Term Rentals of Cambridge Zoning ordinance, including but not limited to all conditions *A short-term rental must comply with all the applicable provisions of the City 1 Tiere prit or at eat . age in the portune eur peted. tenant Ordinance * property owner You do not qualify Short-Term Rentals to operate a short-term rental under the terms of the City of Cambridge no no short-term rental * yes i yes OPERATOR-OCCUPIED es You qualify to operate one association? condominium association's condominium permission to operate a STR? Do you have the Is your property part of a residential Short-Term Rental (STR) Decision Tree yes Is your property or single family either a 4-family, 3-family, 2-family, Is the property you own your primary residence 1? yes the STR? short-term rental • Will you be units in the You own all OWNER-ADJACENT living in the the dwelling that also has dwelling unit You qualify to operate one yes and operating in one dwelling unit a short-term rental? another whole unit as Will you be a resident

Cambridge Fire Department (CFD) ISD Other? What are the City's plans for unregistered units operating on I April? How are inspections going? Problems? Issues? Interest? • Number of units registered with Inspectional Services ISSUES TO BE DISCUSSED = Will City contract with a "data scraper" for compliance and enforcement assistance • Has Inspectional Services Department (ISD) the proper staff to register units • Impact of proposed State legislation

ATTACHMENTC Lopez, Donna Ini Tomeu <itomeu@cambridgema.gov> From: Sent: Wednesday, March 21, 2018 9:59 AM To: Lopez, Donna New Cambridge Law Requires Registration of Short-Term Rental Properties Subject: For Immediate Release City of Cambridge Public Information Office Contact: Ini Tomeu, Public Information Officer [phone removed], itomeu@cambridgema.gov New Cambridge Law Requires Registration of Short-Term Rental Properties Registration with Inspectional Services Required by April 1, 2018 Cambridge, MA, March 21, 2018 - A new Short-Term Rental (STR) Ordinance (#1397) which goes in effect in the City of Cambridge оп April 1, 2018, will regulate the rental of property for transient housing (stays of 30 days or less). Cambridge residents who plan to use their residential property for short-term rental must meet new eligibility requirements and register with the city's Inspectional Services Department by April 1, 2018. Platforms such Airbnb®, Home Away™, and others have made the short-term rental of bedrooms or whole dwelling units a popular option, especially in urban areas where hotel prices can be high. Research shows that Cambridge has hundreds of short-term rental units available. Under the new law, short-term rentals will be required to comply with building code, life safety regulations, and health and hygiene standards. In order to qualify for a short-term rental certificate of registration, the respective dweling unit or bedroom must be inspected by a city inspector. Additionally, the operator of a short-term rental must live in, or adjacent to the unit, as described in the new ordinance. The city's Inspectional Services hosted two informal drop-in sessions in February where residents could ask questions about the new Ordinance, learn more about eligibility requirements and the process of obtaining a Certificate of Registration, and check on the specific conditions of their dwelling unit. A final drop-in information session will be held on Tuesday, March 27, from 5:30-7:30 p.m., in the Lombardi Building, Basement Conference Room, 831 Massachusetts Avenue, Cambridge. For more information, visit CambridgeMA.gov/Shorttermrental. -###- This email was sent to dlopez@cambridgema.gov City of Cambridge, 795 Massachusetts Avenue, Executive Office, Cambridge, MA 02139, United States Unsubscribe 1 " "'

ATTACHMENT D HOUSE. ..... No. 4314 The Commonwealth of Massachusetts HOUSE OF REPRESENTATIVES, March 19, 2018. The committee on Ways and Means, to whom was referred the Bill regulating and insuring short-term rentals (House, No. 4287), reports recommending that the same ought to pass with an amendment kepresentative Bolay he southwick isent bill (House, No. 4314) For the committee, JEFFREY SÁNCHEZ. 1 of 10

FILED ON: 3/19/2018 HOUSE.. • No. 4314 The Commonwealth of Massachusetts In the One Hundred and Ninetieth General Court (2017-2018) An Act regulating and insuring short-term rentals. Be is enacied by the Senale and House of Representatives in General Court assembled, and by the authoriy of the same, as follows: 1 SECTION 1. Section 6 of chapter 14 of the General Laws, as appearing in the 2016 Official Edition, is hereby amended by adding the following 2 clauses:- 3 11. Shall establish and maintain a short-term rental registry to record the name of each host and the corresponding address of each residential unit offered for short-term rental under chapter 640. The commissioner may charge a reasonable fee for such registration. 6 12. Shall maintain on the department's website an easily searchable and regularly updated list of addresses of all residential units offered for short-term rental registered in the 7 short-term rental registry established in clause 11, excluding the names of the hosts of said 9 properties. 10 SECTION 2. Section 16 of chapter 62C of the General Laws, as appearing in the 2016 Official Edition, is hereby amended by inserting after subsection (g) the following subsection:- 2 of 10

• 12 (g1/2) Every host, or by agreement, hosting platform, as defined in section one of chapter 13 sixty-four O, subject to taxation under chapter sixty-four O, shall file a return with the commissioner for each calendar quarter. The commissioner may by regulation require returns 14 15 under this section to be filed on an annual rather than a quarterly basis or on such other basis as 16 he may determine and to have different filing periods for different groups of hosts or hosting 17 platforms. Every such retur shall be filed within twenty days after the expiration of the period 18 covered thereby. 19 SECTION 3. Section 21 of said chapter 62C of the General Laws, as so appearing, is 20 hereby amended by striking out, in lines 161 and 162, the words "chapter 64G and chapter 64L" 21 and inserting in place thereof the following words:- chapter 64G, chapter 64L and chapter 640. 22 SECTION 4. The General Laws are hereby amended by inserting after chapter 64N the 23 following chapter:- 24 CHAPTER 640: SHORT-TERM RENTAL EXCISE 25 Section 1. As used in this chapter the following words shall, unless the context clearly 26 requires otherwise, have the following meanings: 27 "Commissioner", the commissioner of the department of revenue. 28 "Department", the department of revenue. 29 "Host", an investor host, a professionally managed host, or a residential host. 30 "Hosting platform", a person or entity that provides a service through which hosts may offer a residential unit for short-term rental to an occupant through a website, software, online- 32 enabled application, mobile phone application or other similar advertising process, and for which 3 of 10

• 33 the person or entity collects or receives, directly or indirectly through an agent or intermediary, a 34 fee. 35 "Investor host", whoever rents between 3 and 5 residential units for short-term rental. 36 "Occupant", a person who, for consideration, uses, possesses or has a right to use or 37 possess a residential unit offered for short-term rental. 38 "Professionally managed host", whoever rents 6 or more residential units for short-terma rental. 39 40 "Property manager", an individual who is responsible for the upkeep and maintenance of 41 residential units and is available either on-site or on-call 24 hours per day. 42 "Residential host", whoever rents 2 or fewer residential units for short-term rental. 43 "Residential unit", a room, group of rooms or other living or sleeping space for the lodging of occupants; a single-family dwelling, multi-family dwelling or residential dwelling unit in a multi-unit structure; or a condominium, cooperative, timeshare or similar joint property 45 46 ownership arrangement, including vacation rentals. 47 "Short-term rental", the rental of a residential unit for a duration of less than 28 48 consecutive days for a fee; provided, however, "short-term rental" shall not include the rental of 49 those accommodations which are defined in section 1 of chapter 64G. 50 Section 2. An excise is hereby imposed upon an occupant of a residential unit offered for 51 short-term rental for the total amount of rent for each short-term rental, at the rate of 4 per cent 52 by a residential host; 5.7 per cent by an investor host; and 8 per cent by a professionally managed 53 host. No excise shall be imposed if the total amount of rent is less than $15 per day. 4 of 10

54 Section 3. (a) Any city or town may impose a local excise tax upon an occupant for the 55 total amount of rent for each short-term rental at a rate of up to, but not exceeding, 5 per cent by 56 a residential host; 6 per cent by an investor host; and 10 per cent by a professionally managed 57 host. No excise shall be imposed if the total amount of rent is less than $15 per day. 58 This subsection shall only take effect in a city or town accepting the provisions of this 59 section by a majority vote of the city council with approval of the mayor, in the case of a city 60 with Plan A, Plan B or Plan F charter; by a majority vote of the city council, in the case of a city 61 with Plan C, Plan D or Plan E charter, by a majority vote of the annual town meeting or a special 62 meeting called for that purpose, in the case of a municipality with a town meeting form of 63 government; or by a majority vote of the town council, in the case of a municipality with a town 64 council form of government. The provisions of this section shall take effect on the first day of the 65 calendar quarter following 30 days after such acceptance, or on the first day of such later 66 calendar quarter as the city or town may designate. The city or town, in accepting the provisions 67 of this section, may not revoke or otherwise amend the applicable local tax rate more often than 68 once in any 12 month period. 69 (b) Any city or town which accepts the provisions of subsection (a) shall enact ordinances 70 or bylaws requiring all residential units offered for short-term rental within the city or town to 71 undergo a safety inspection before said residential units shall be rented. The city or town shali 72 have 60 days after the address of a residential unit is listed on the department's website, as 73 required under section 6 of chapter 14, to inspect said unit. If the residential unit is not inspected 74 within 60 days, the host may offer the residential unit for short-term rental on a temporary basis. 75 The cost of the inspection shall be charged to and paid by the hosts. After the initial safety 76 inspection, cities and towns shall determine the frequency of any subsequent inspections. 5 of 10

• 77 (c) Any city or town which accepts the provisions of subsection (a) may require a host to 78 demonstrate that a residential unit is not subject to any outstanding building, electrical, 79 plumbing, mechanical, fire, health, housing or planning code enforcement, including any notices 80 of violation, notices to cure, orders of abatement, cease and desist orders or correction notices. 81 (d) Any city or town which accepts the provisions of subsection (a) shall distribute an 82 amount equal to 50 per cent of the excise tax collected by professionally managed hosts pursuant 83 to this section to programs addressing either local infrastructure needs or low- and moderate- 84 income housing programs. 85 Section 4. Any city or town, whether or not such city or town has accepted the provisions 86 of section 3, may enact ordinances or bylaws under this chapter. 87 Any city or town, whether or not such city or town has accepted the provisions of section 88 3, may establish penalties for failure to comply with ordinances or bylaws enacted by said city or 89 town under this chapter. 20 Any city or town, whether or not such city or town has accepted the provisions of section 91 3, may restrict short-term rentals, including but not limited to, a restriction on the number of days 92 hosts may rent out residential units, a requirement that hosts obtain a business licenses and a 93 requirement that each residential unit is the host's primary residence. 94 Section 5. Any excise tax imposed pursuant to sections 2 and 3 shall be paid by the 95 occupant. Hosts, or by agreement, hosting platforms, shail pay the excise to the commissioner at the time provided for filing the return required by section 16 of chapter 62C. Hosts, or, by 97 agreement, hosting platforms, shall add to the rent and shall collect at the same time and in the 98 same manner from the occupant the full amount of the excise tax. Any excise tax shail be stated 6 of 10

: and charged separately from the rent and shown separately on any record thereof at the time the 99 100 transfer of occupancy is made, or on any evidence of such transfer issued or used by the host or 101 hosting platform. Hosts, or by agreement, hosting platforms shall pay any local excise tax imposed under 102 103 section 3 to the commissioner at the same time and in the same manner as the state excise tax. 104 All sums received by the commissioner shall be distributed, credited and paid at least quarterly 105 by the state treasurer upon certification of the commissioner to each city or town that has adopted 106 the provisions of section 3 in proportion to the amount of such sums received from the short-term 107 rentals in each such city or town. 108 The commissioner shall make available to any city or town requesting such information 109 the total amount of room occupancy tax collected pursuant to section 3 in the preceding fiscal 110 year in the city or town requesting the information. 111 Section 6. Hosts shall comply with any and all applicable municipal, state and federal 112 laws, including but not limited to the collection and remittance of required excise taxes. 113 Professionally managed hosts shall employ a property manager for each residential unit 114 and maintain $1,000,000 or more in liability insurance offered for short-term rental. 115 Hosts shall retain and, upon receipt of written request, make available to the department 116 or to the city or town, short-term rental records, including, but not limited to, those records 117 demonstrating a host's place of primary residence and the number of days per calendar year a 118 residential unit has been rented for short-term rental, including the specific dates and the duration 119 of each stay. 7 of 10

• 120 Hosts shall register each residential unit with the short-term rental registry maintained by 121 the commissioner pursuant to section 6 of chapter 14. 122 Hosts shall be required to provide notice to all insurers of the host's intention to use the 123 residential unit as a short-term rental. Hosts shall post inside the residential unit information regarding the location of all fire 124 125 extinguishers, gas shut off valves, fire exits and fire alarms in the unit and building. 126 Nothing in this chapter shall confer a right to lease, sublease or otherwise offer a residential unit for short-tern rental where such use is prohibited by a homeowner's association 127 128 agreement or requirements, a rental agreement or any other restriction, covenant, requirement or enforceable agreement. 129 Section 7. Prior to any host listing a residential unit for short-term rental through a 130 131 hosting platform, the hosting platform shall ensure that the host has registered the residential unit 132 with the short-term rental registry maintained by the commissioner under section 6 of chapter 14 133 and shall provide notice to the host that this chapter regulates short-term rentals and establishes state and local excise tax obligations. 134 135 Hosting platforms that execute the financial transaction between hosts and occupants shall maintain liability insurance of not less than $1,000,000 to cover each residential unit 136 137 offered for short-term rental. Such coverage shall defend and indemnify the host and any tenants 138 or owners in the building for bodily injury or property damage arising from the short-term rental. Hosting platforms that execute the financial transaction between hosts and occupants 139 140 shall collect and remit any taxes required by this chapter. Hosting platforms shall maintain 8 of 10

: 141 records of any taxes collected that have been remitted to the commissioner and shall make these 142 records available to the department upon request. 143 Hosting platforms shall provide notice to all potential hosts that standard homeowners or 144 renters insurance may not cover damage or injury to a third-party related to short-term rentals. 145 Hosting platforms and hosts shall not discriminate on the basis of race, sex, gender 146 identity, ethnicity, sexual orientation, age, religion, disability or nationality. 147 Section 8. For residential units subject to rent control provisions, hosts shall charge no 148 more than the prorated maximum amount allowed. 149 Section 9. No excise shall be imposed, pursuant to this chapter, for a short-term rental if 150 the occupant is an employee of the United States military traveling on official United States 151 military orders which encompass the date of said occupancy. Each host and hosting platform 152 shall maintain such records to substantiate exemptions claimed under this section. 153 Section 10. The provisions of chapter 186 shall not apply to short-term rentals. 154 SECTION 5. Chapter 175 of the General Laws, as appearing in the 2016 Official Edition, 155 is hereby amended by inserting after section 4E the following section:- 156 Section 4F. Insurers that write homeowners and renters insurance may exclude any and 157 all coverage afforded under a policy issued to a homeowner or lessee for any claim resulting 158 from a short-term rental under chapter 640 of the general laws. 159 Insurers that exclude the coverage described in this section shall not have a duty to defend or indemnify any claim expressly excluded by a policy. Nothing shall preclude an insurer 160 9 of 10

161 from providing coverage for short-term rentals if the insurer chooses to do so by contract or 162( endorsement. 163 SECTION 6. Section 1 shall take effect on January 31, 2019. 164 SECTION 7. Sections 2, 3 and 4 shall take effect 1 year after the effective date of this 165 act; provided, however, that the department of revenue shall establish rules and regulations for 166 the collection and remittance of taxes pursuant to section 2 and section 3 of chapter 640 of the 167 General Laws, inserted by section 3 of this act, on or before January 31, 2019. 168 SECTION 8. Cities and towns shall conduct initial inspections on short-term rental units 169 listed on the registry, as required under section 3 of chapter 640 of the General Laws, not later 170 than 6 months after the city or town accepts the provisions of said section 3 of said chapter 640. 10 of 10

ATTACHMENITE airbnb Cambridge City Council Cambridge City Hall 795 Massachusetts Avenue Cambridge, MA 02139 March 21, 2018 To the Honorable, the City Council: It has been a pleasure working with the City of Cambridge throughout the past year. We have enjoyed productive discussions with City officials, staff, and community members about Airbnb's presence and positive impact in the City of Cambridge. Cities succeed when residents are actively empowered to help determine their own destiny. Airbnb has informed Cambridge hosts about recent regulations to short term rental use in the City to ensure they are empowered to engage in home sharing practices that are in the best: interest of the city they call home. The outreach efforts that Airbnb has undertaken in Cambridge include: Four registration sessions advertised to the host community, one of which was attended by the City of Cambridge's Inspectional Services Department. Over 80 attendees. Active phone outreach to the host population. Over 450 calls. Blast email outreach to the host population. n behail of the Airbnb team, I thank you for your continued work on this important matte lease do not hesilate to contact me directly if I can provide further information With best regards, William D. Burns Senior Adviser 888 Brannan Street Fourth Flour San Francisco, Calitornia 94103 Limted States