Let Moratorium on STR 2s Work

Austin Mayor Steve AdlerIn my State of our City address, I expressed a desire not to be so reactive to super-heated issues. I also discussed wanting to join with the Council, deliberately and thoughtfully, to find the right solutions however pitched the broader public discussion may be. The matter before the Council on Type 2 short-term rental houses, or STR 2s, presents us with a fortuitous opportunity to handle a hot issue with cool heads and to find the best solution for all of Austin.

A prior City Council adopted rules to allow STR 2s, and some in our community acting according to those rules bought about 400 houses that they put on the short-term rental market as STR 2s. Because of problems and concerns that arose, last December this Council placed a moratorium on new STR 2s until spring 2017. Importantly, this means that at least for the next year or so there will be no more STR 2s, no further loss of residential housing stock, and no further encroachment into neighborhoods regardless of what the Council does this week. That gives us time.

Read more after the break.

During this moratorium, we should gain useful additional information, but there’s more for this Council to do in the meantime. This week, the Council will enact a new ordinance that both better enables the City’s Code Enforcement to crack down on party houses that have been neighborhood nuisances and that enacts more strict operating rules for all existing STR 2s, even the ones that aren’t nuisances. We want to ensure that they operate more like residences rather than social venues. As the party houses are closed down, these houses will not be allowed to reopen as STR 2s, and no new STR 2s will be allowed during the moratorium.

Some have proposed outlawing all existing STR 2s now and giving the owners some period of time to sell these houses. While that ultimately may be the appropriate thing to do to protect neighborhoods, it’s not a decision that needs to be made now. We need to use this moratorium to gather more information. I am concerned that forcing STR 2 owners to sell would invite lawsuits, and as a rule our city should be very mindful whenever we are considering changing the rules after the fact. And we need to better understand the experience of other cities that have outlawed STR 2s so as to make sure we really understand any risks of a ban forcing STR 2s underground.

For these reasons, I support allowing the moratorium on STR 2s to continue. During the moratorium, NO NEW STR 2S will be approved. And, existing STRs will continue but only with better rules and enforcement in place.

For these reasons, I support allowing the moratorium on STR 2s to continue. During the moratorium, NO NEW STR 2S will be approved. And, existing STRs will continue but only with better rules and enforcement in place.

People feel very strongly on both sides of this issue for entirely valid reasons. I respect this and have focused on seeing this matter as each side sees it. And then, it is my role to seek not a compromise between two opposing sides but the right solution for Austin. That solution, for now, is to let the moratorium work while we change the rules for conduct and beef up enforcement.