City Manager Agenda Item · Short Term Rental Ordinance Amendments (Clean)

CLEAN VERSION Short-Term Rental (STR) Zoning Ordinance Amendments to Section 4.60 – Short-Term Rentals Amend Section 4.60 to read as follows: 4.60 SHORT-TERM RENTALS 4.61 Purpose. This Section 4.60 "Short-Term Rentals" is intended to regulate the operation of short-term rentals , protect the safety of renters and residents, ensure that the primary use of available rental units in Cambridge remains residential, and ensure that short-term rentals will not be a detriment to the character and livability of the surrounding residential neighborhood. 4.62 Definitions. For the purposes of this Chapter, the following words or phrases are defined as: a. Booking Agent and/or Booking Platform. A third party or entity that facilitates reservations and/or collects or receives payment for a short-term rental. A platform shall not include a service that merely posts advertisements for short-term rentals. A booking agent/platform shall include the definitions of an “intermediary” and “hosting platform” as defined in M.G.L. c. 64G, § 1. b. Booking Service. Any reservation and/or payment service provided by a person or entity that facilitates a short-term rental transaction between a short-term rental Operator and a prospective short-term renter, and for which the person or entity collects or receives, directly or indirectly through an agent or intermediary, a fee in connection with the reservation and/or payment services provided for the short-term rental transaction. c. Primary Residence. A residential unit in which an Operator resides for at least nine months out of a twelve-month period. d. Proof of Primary Residence. Primary residence is demonstrated by showing that as of the date of registration of the short-term residential unit on the short-term residential registry, the Operator has resided in the residential property for nine of the prior twelve months. This may be demonstrated either by: (1) Proof of enrollment in the Cambridge residential tax exemption program, or (2) An affidavit, signed under the pains and penalties of perjury, stating that the residential unit being used for short-term rental is the Operator's primary residence, in addition to a property title or tenancy agreement, a driver’s license or state issued identification containing the applicant’s photo ID and property address, and a government or utility correspondence with Operator's name and address issued within the last three (3) months.

e. Registration Number. A unique identification number generated by the City for a single Residential Unit registered as a Short-Term Rental. Registration Numbers shall be valid until the expiration date and shall be associated with both the single Residential Unit and its single Operator. The Registration Number must be included on any listing or advertisement offering a unit as a Short-Term Rental. f. Registry Database. The Inspectional Services Department (ISD) shall maintain a database of eligible short-term rentals and booking agents/platforms. g. Short-Term Rental. Any rental of a residential unit including any rental of a bedroom within a unit, in exchange for payment, as residential accommodations for a duration of less than twenty- eight (28) consecutive days. A short-term rental may be permitted to rent for not more than ninety (90) calendar days per calendar year. The following types of short-term rental are permitted by this Section and may be offered up to ninety (90) calendar days per calendar year: (1) Autonomous Unit Short Term Rental. The short-term rental is the Operator’s Primary Residence and the residence is being offered in its entirety. During the period of the rental, the Operator is not residing in said unit. (2) Operator-Occupied Short-Term Rental. The short-term rental of at least one but no more three (3) individual bedrooms within the primary residence of its Operator. One bedroom must be reserved for the Operator. The Operator must be present for the duration of the short-term rental. (3) Owner-Adjacent Short-Term Rental. The short-term rental of a residential unit in its entirety that is not the primary residence of the Operator, but is located within a residential building with a total of four or fewer units where all units in the building are owned by the Operator, and one of the units in the building is the primary residence of the Operator. An owner-adjacent short-term rental may be rented only as a whole unit to one party of short- term renters at any one time. An owner-adjacent short-term rental may not be rented as separate bedrooms to separate parties. h. Short-Term Rental Operator. The person or persons offering a residential unit or bedroom for short-term rental, who may be either the owner or the primary leaseholder of the unit with the written permission of the property owner and the condominium association if applicable. A short- term rental Operator may be permitted to rent their short-term rental for not more than ninety (90) calendar days per calendar year. i. Short-Term Renter. Any person or persons occupying a residential unit, or a bedroom within a residential unit, as a short-term rental for a duration of less than twenty-eight (28) consecutive days. 4.63 Applicability. The requirements of 4.60 "Short-Term Rentals" and its subsections shall apply to all districts where residential uses are allowed, but shall not apply to principal transient accommodations. 4.64 Requirements for Operation of a Short-Term Rental.

Short-term rentals are permitted as an accessory residential use in existing dwellings in all districts where residential use is permitted, subject to the following requirements: a. Only autonomous unit, operator-occupied, and owner-adjacent short-term rentals are permitted. b. All short-term rental Operators shall register with the Inspectional Services Department prior to short-term rental use and occupancy in conformance with Section 4.68 below. c. A residential unit or bedroom offered for short-term rental shall comply with all building code, sanitary code, fire code, and all other state and local habitability requirements for occupancy. d. A residential unit or bedroom offered for short-term rental shall comply with all standards and regulations promulgated by the Commissioner of Inspectional Services. e. A short-term rental Operator may not rent for concurrent occupancy more than the following combination of units simultaneously: (1) one residential unit for owner-adjacent short-term rentals; and (2) three individual bedrooms for Operator-occupied short-term rentals; or (3) one residential unit for autonomous unit short-term rentals. f. Short-term rental Operators shall remit to the appropriate body all fees and taxes as required by the City and/or State authorities. g. Short-term rental Operators shall maintain liability insurance appropriate to cover the short- term rental use in conformity with M.G.L. c. 175, § 4F. h. The number of individual bedrooms made available for short-term rental shall not be greater than the number of lawful bedrooms in said unit. i. Renting for an hourly rate, or for rental durations of less than ten (10) consecutive hours, shall not be permitted. j. Commercial meetings and uses are prohibited in short-term rentals. k. All Operators shall produce any and all booking and registration information, transaction details, reports, records, or other documentation related to short-term rentals upon request by City officials. Such records shall be maintained for a period of three years or longer if required by law. Failure to provide such information or documentation upon request by City officials shall constitute grounds for revocation of short-term rental authorization and any other penalties as authorized by law. l. Short-Term Rental Operators shall display their Registration Number on any listing or advertisement offering a Short-Term Rental. m. If a short-term rental property is deemed a nuisance, ISD may revoke the Operator’s short- term rental certificate of registration effective immediately.

4.65 Requirements for Booking Agents and/or Platforms. A Booking Agent or Platform may provide, and collect a fee for, Booking Services in connection with short-term rentals located in the City only when the Agent or Platform exercises reasonable care to confirm that those units are lawfully registered on the Short-Term Rental Registry at the time the unit is rented for short-term rental. Whenever a Booking Agent or Platform complies with Regulations and/or Guidelines issued by the City, through ISD, to confirm that the Residential Unit is lawfully registered on the Short-Term Rental Registry, the Agent or Platform shall be deemed to have exercised reasonable care for the purpose of this subsection 4.65. a. A booking agent/platform is prohibited from performing booking services in the City of Cambridge without registering with the City through ISD. ISD shall establish a booking agent/platform registration system through regulations and/or policy promulgated by the Department. A booking agent/platform registry shall be made public by ISD. b. Booking agents/platforms shall not complete any booking transaction for short-term rental unless it is listed on the City's registry at the time the agent/platform receives a fee for the booking transaction. c. All booking agents/platforms shall be required to confirm that they are in compliance with the City’s Ordinance and regulations. d. Upon filing for a registration renewal, or at the request of ISD, a booking agent/platform shall provide a report that contains the following information for the preceding year: (1) Data regarding the properties that the booking agent/platform has collected a fee for booking which shall include the location, description of the listing including whether it was for a room or entire unit, and (solely to the extent such data is publicly available) the number of nights each unit was reported as occupied. e. It shall be unlawful for a booking agent or platform to charge, collect or receive a fee in connection with a short-term rental unless such booking agent/platform has used the registration database maintained by ISD either to: (1) Verify that such short-term rental is for a registered unit within the City; or (2) Verify that the unit that is the subject of such short-term rental is associated with the short-term rental registration number submitted to the booking agent/platform and such registration is currently valid. f. A booking agent/platform operating exclusively on the Internet, which operates in compliance with subsections 4.65, shall be presumed to be in compliance with this Section, except that the booking agent/platform remains responsible for compliance with any administrative subpoena provisions of this Section. i. For each transaction in which a booking agent/platform charges, collects or receives a fee, directly or indirectly, for activity described in the definition of booking service in relation to a short- term rental in violation this Section, such booking agent/platform shall be liable for a civil penalty of not more than $300 per violation per day.

4.66 Procedural Requirements. The following information shall be provided to all short-term renters and posted in all short- term rentals in a manner to be determined by the Inspectional Services Department: a. Instructions for disposal of waste per the City's recycling and composting programs. b. An emergency-exit diagram in all bedrooms used for owner-adjacent short-term rentals and on all egresses from the unit. c. Contact information for the short-term rental Operator, or when the Operator is not present, the contact information for a locally available contact designated to respond to all emergencies and problems that may arise during the rental period. d. The certificate of registration for the short-term rental. 4.67 Regulations. The Commissioner of Inspectional Services shall have the authority to promulgate regulations to carry out and enforce the provisions of this Section 4.60 "Short-Term Rentals" and its subsections. 4.68 Short-Term Rental Operator/Unit Registration. Operators of short-term rentals shall register all units with the City and secure a certificate of registration according to standards set forth by the Commissioner of Inspectional Services, and shall pay all associated fees. The certificate of registration shall require the Operator to agree to abide by the requirements of this Section 4.60 and its subsections. a. All Operators shall provide the City with proof that one of the units in the structure is used as the Operator's primary residence, either by: (1) Proof of enrollment in the Cambridge residential tax exemption program, or (2) An affidavit, signed under the pains and penalties of perjury, stating that the residential unit being used for short-term rental is the Operator's primary residence, in addition to a property title or tenancy agreement, a driver’s license or state issued identification containing the applicant’s photo ID and property address, and a government or utility correspondence with Operator's name and address issued within the last three (3) months. b. If the Operator is not the owner of the property, the Operator shall provide written evidence that the owner and the governing body of the condominium association (if applicable) has consented to the short-term rental use of the property. c. If the Operator is the owner of the property, the Operator shall provide written evidence that the governing body of the condominium association (if applicable) has consented to the short-term rental use of the property. d. Prior to issuing or renewing a certificate of registration, the Inspectional Services Department shall conduct an inspection to verify that each unit to be rented to short-term renters: (1) Meets all building code requirements for occupancy.

(2) Meets all other requirements of this Section 4.60 "Short-Term Rentals" and regulations promulgated by the Commissioner of Inspectional Services. e. It is the responsibility of the short-term rental Operator to renew its certificate of registration every five years or upon change of Operator or owner. f. A registration shall be tied to both the residential unit and the Operator and will not automatically transfer upon the sale of the unit. New Operators are responsible for ensuring that they re-register a unit with ISD if they wish to continue offering a unit as a short-term rental. f. Any property or unit in violation of any building, zoning , sanitary, or fire code shall have their certificate of registration suspended or revoked. g. No certificate of registration shall be issued to any property in violation of any building, zoning , sanitary, or fire code until all violations have been resolved as set forth in the Short-Term Rental Regulations. h. Inspectional Services shall have the right to revoke, suspend, or prohibit a certificate of registration as set forth in the Short-Term Rental Regulations. i. Duty to Amend Application. If there are any material changes to the information submitted on a short-term rental registration application, the Operator shall submit an amended application on a form to be provided by the City and signed by the Operator under penalty of perjury within thirty days of any such changes. For the purposes of this Section, any change to the information required to be included for a short-term rental application shall constitute a material change. Failure to submit an amended application may result in revocation of the short-term rental registration certification. j. No Transfer or Assignment. A short-term rental certification may not be assigned or transferred to any other person. 4.69. Enforcement. Enforcement by City. The provisions of this section may be enforced in accordance with the noncriminal civil disposition process prescribed in M.G.L. c. 40, § 21D or by seeking to restrain a violation of this ordinance by court injunction. ISD shall be authorized to conduct investigations, to issue subpoenas, to receive evidence, to hear complaints regarding activities subject to this section, to hold public hearings, to take testimony and to promulgate, amend and modify procedures and practices governing such proceedings. 4.70 Violations. Any person who offers a unit as a short-term rental, or any booking agent/platform who accepts a fee for booking a unit as a short-term rental, where such unit is not an eligible residential unit or is otherwise not in compliance with the provisions of this ordinance, shall be fined $300 per violation per day. Each day's failure to comply with a notice of violation, or any other order, shall constitute a separate violation. ISD may also seek an injunction from a court of competent jurisdiction prohibiting the offering of a unit as a short-term rental.

4.71 Local Room Occupancy Excise and Community Impact Fees. Local community impact fee. Upon acceptance by the City of the provisions of M.G.L. c. 64G, §3A , the City may also in the same manner of acceptance and by separate votes under M.G.L. c. 64G, § 3D(a) and (b) impose community impact fees of not more than 3% of the total amount of rent for short-term rentals as provided in § 3D. A residential unit subject to the provisions of this section that is also subject to the room occupancy excise pursuant to M.G.L. c. 64G or any other excise or surcharge pertaining to short- term rentals pursuant to state law shall comply with the provisions of those statutes and ordinances. Upon acceptance by the City of the provisions of M.G.L. c. 64G, § 3A, the City may impose such room occupancy excise upon the transfer of occupancy of a room in a short- term rental at a rate of not more than 6% of the total amount of rent for each such occupancy. 4.72 Severability. If any provision in this section shall be held to be invalid by a court of competent jurisdiction, then such provision shall be considered separately and apart from the remaining provisions, which shall remain in full force and effect. 4.73. Effective Date. The provisions of this Section 4.60 "Short-Term Rentals" shall take effect on _____________. Operator