Chapter 5.40
SHORT-TERM RENTAL LICENSE
Sections:
5.40.020 Short-term rental – Definitions.
5.40.030 Short-term rental – License required.
5.40.040 Short-term rental – License application issuance and renewals.
5.40.050 Suspension or revocation of license – Criteria and appeal.
5.40.010 Purpose.
The purpose of this chapter is to establish a licensing system for all short-term rentals (“STR”) and to provide criteria to limit the number of Type IV short-term rentals in the city. (Ord. 1058 § 3 (Exh. C), 2019)
5.40.020 Short-term rental – Definitions.
Terms related to short-term rentals that are defined in Section 18.22.070 have the same meaning in this chapter. (Ord. 1058 § 3 (Exh. C), 2019)
5.40.030 Short-term rental – License required.
A. No person, firm or corporation shall advertise or operate a short-term rental within the city without having first obtained a short-term rental license from the city.
B. Licenses shall be issued to the owner or STR operator, shall not be transferable except by inheritance and do not run with the land except as otherwise permitted in this code.
C. The number of Type IV short-term rental licenses to be issued in one year is limited to 30.
D. Short-term rental license fees shall be established by city council by resolution.
E. For Type IV STR, only one short-term rental license shall be issued per owner.
F. The maximum number of accessory dwelling units (ADU), attached or detached, used as short-term rentals shall be limited to 50.
G. Short-term rental licenses shall expire on December 31st of the year for which they are issued.
H. A Langley business license is required for both the owner and manager of a short-term rental in addition to the short-term rental license. (Ord. 1058 § 3 (Exh. C), 2019)
5.40.040 Short-term rental – License application issuance and renewals.
A. Applications for new licenses and renewals shall be made on forms provided by the city, which shall include the following at a minimum:
1. Property owner’s signature;
2. STR manager’s signature;
3. Applicant’s signature;
4. Current city of Langley business license number;
5. For STR Types I and III, a declaration that this is hosted short-term rental as defined in this chapter;
6. Contact information for the STR manager who is able to respond 24 hours a day, seven days a week, to any complaints. The local contact must be within a 20-minute drive of the short-term rental;
7. Number of guest rooms;
8. Site plan showing required parking for residents and guests;
9. Floor plan showing guest rooms and the egress routes;
10. Copy of Island County health department approval, if food is served;
11. Copy of Island County health department approval, if the dwelling unit is served by an on-site septic system;
12. Proof of a building inspection within five years of application. If the city building official has not inspected the building within five years or if documentation is not available, an inspection shall be required prior to issuance or renewal of a license. Where an inspection is not required, a life-safety self-assessment demonstrating compliance with the licensing requirements shall be submitted on forms provided by the city;
13. Application fee per the current fee resolution;
14. Links to online listing platforms used for this short-term rental, or, for STRs which are not currently being operated at the time of application, this information may be provided to the city after approval; and
15. Supplemental information may be required by the city to ensure the facility complies with applicable regulations and provides for public health, safety, and welfare.
B. The city planner shall review the application and, if determined to comply with all zoning and licensing requirements, must issue or renew a short-term rental license, provided in the case of Type IV short-term rentals one of the limited number of licenses is available. The approval may include reasonable conditions to ensure that the purposes of this chapter are achieved. If denied, the reasons for denial shall be stated in writing.
C. A short-term rental license may be renewed if the owner and STR manager meet the renewal requirements including:
1. Paying the renewal fee;
2. Having been deemed by the city to be in substantial compliance with the provisions of the LMC for the past year;
3. Providing written confirmation as to how any complaints related to the operation of the short-term rental raised by neighboring residents and property owners during the preceding year were resolved;
4. Verification that the required lodging taxes have been remitted to the Washington State Department of Revenue for an existing short-term rental;
5. Documenting and describing any changes that have occurred to the information on the current short-term rental application.
D. For Type I, II, and III licenses, renewal applications shall be submitted between November 15th and December 15th of each year for the following year’s license. Any Type I, II, or III renewal applications submitted after December 15th or which do not include the necessary information for approval may not be issued a license renewal prior to expiration of the current year’s license.
E. Beginning August 5, 2019, Type IV license applications shall be processed on a first come, first served basis. If the number of Type IV license applications exceeds the number of Type IV licenses to be issued by the city, applications shall be selected at random for processing. For each year thereafter, renewal applications shall be submitted between September 1st and September 30th each year in order to be considered for the following year’s license. Renewal applications shall be processed prior to issuance of any new licenses applied for during that time to ensure the number of available licenses has not been exceeded.
F. A party aggrieved by the approval, denial, or conditions of a short-term rental license or renewal may file an appeal of such action with the city planner, together with the administrative appeal fee per the current fee resolution, within 14 days of the determination. If the fourteenth day is a weekend or holiday, the appeal period is extended to the next working day. The appellant shall clearly state the basis for the appeal, relief sought, and alternative conditions of approval, if applicable. All appeals to the city planner’s decision to approve, condition, or deny a short-term rental license shall be consolidated and heard by the hearing examiner as soon as reasonably possible, who may affirm or reverse the original decision and may revise conditions of approval, pursuant to Chapter 18.37. The hearing examiner’s decision shall be the final administrative remedy. (Ord. 1058 § 3 (Exh. C), 2019)
5.40.050 Suspension or revocation of license – Criteria and appeal.
A. The city planner may suspend or revoke a short-term rental license when the licensee, officer, or partner thereof, or another person with legal interest in the license:
1. Knowingly causes, aids, abets, or conspires with another to cause any person to violate any of the laws of this state or the city that may affect or relate to the licensed business;
2. Fails to comply with any condition of approval of an issued license;
3. Has obtained a license by fraud, misrepresentation, concealment, or through inadvertence or mistake;
4. Is convicted of, forfeits bond upon, or pleads guilty to any offenses related to the operation of the licensee’s business;
5. Makes a misrepresentation or fails to disclose a material fact to the city related to any of the required conditions for a short-term rental license;
6. Violates any zoning, building, life, public safety, or health regulation, or other material regulation of the City with respect to the premises in which the business is located; or
7. Is indebted or obligated to the city for past due fees or taxes.
B. When the city planner determines that there is a reasonable basis for suspending or revoking a license issued under this chapter, he or she shall notify the licensee of the city’s intention to suspend or revoke such license by regular and certified mail to the address appearing on the most recent short-term license application. The notice shall state the reason for the suspension or revocation, the date that the suspension or revocation will become effective, and the appeal process. Suspension or revocation of the license shall become effective 14 days after the date the notice is mailed unless the licensee, within such 14-day period, files an appeal of the action with the city planner, together with the appeal fee per the current fee resolution. The licensee shall state why the criteria listed in subsection (A) of this section do not apply to the business and/or what errors are alleged to have been made by the city in making its determination. Appeals shall be heard by the hearing examiner, whose decision shall be the final administrative remedy.
C. If a license is suspended or revoked, all operation of the short-term rental use shall cease upon the effective date of the suspension or revocation unless the administrative appeal process has been initiated, in which case the suspension or revocation shall be stayed pending the outcome of the appeal. A suspended license shall not be reinstated until the city planner determines, in writing, that the basis for the suspension, together with any new conditions applied to the license, have been adequately addressed. If revoked, no new short-term rental license shall be issued for the property for the remaining term of the revoked license. (Ord. 1058 § 3 (Exh. C), 2019)
5.40.060 Violation – Penalty.
A. Any person who advertises or operates a short-term rental without a valid short-term rental license or who fails to comply with any other provision of this chapter or a condition of license approval shall be deemed to be in violation of this chapter for each day during which the business is so engaged in or carried on. Any person who fails or refuses to pay a fee required under this chapter, or any part thereof, on or before the due date shall be deemed to be operating a business without having obtained a license.
B. Any person found to have violated any provision of this chapter shall be subject to a civil penalty not to exceed $500.00 per violation and/or suspension or revocation of an issued short-term rental license. Each day of violation shall be considered a separate offense.
C. Failure to obtain or maintain a currently valid license and operating a short-term rental within the city shall constitute a public nuisance pursuant to Chapter 8.12. Any remedy provided by this code with respect to a public nuisance is in addition to other remedies provided under this chapter or as may be allowed by law. (Ord. 1058 § 3 (Exh. C), 2019)