As introduced, HB 1461 (Mundon King) would have prohibited a locality from barring an operator, as defined in existing law, who is a lessee or sublessee of property from offering such property as a short-term rental provided the property owner has granted permission for its use as a short-term rental.
At the request of VACo the bill was amended to state that “No local ordinance shall prohibit an operator from offering a property as a short-term rental solely on the basis that such operator is a lessee or sublessee, provided that the property owner has granted permission for such property’s use as a short-term rental. Localities may enact an ordinance that limits a lessee or sublessee to one short-term rental within the applicable locality.”
The purpose of the amended language is to (1) clarify that a renter must still comply with all other provisions of a local ordinance; and (2) allow localities to limit the number of properties an individual renter can operate as a short-term rental within a locality. These changes to the legislation address VACo concerns regarding the potential negative impacts to housing supply posed by a proliferation of short-term rentals, and the ability for counties to limit such. HB 1461, as amended, passed the Senate General Laws and Technology Committee and is on the Senate floor for consideration. VACo thanks Delegate Mundon King for agreeing to the amended language.
It is important to note that HB 1461 is not the same as SB 544 (Bagby), that also deals with local authority to regulate short-term rentals. SB 544 passed the legislature and is now before the Governor for consideration – see VACo writeup titled, “Bill to Preempt Local Authority to Regulate Short-Term Rentals Passes – Virginia Association of Counties.” VACo opposes SB 544.
VACo Contact: Joe Lerch, AICP