Vacation Rental Homes Could Face New Regulations In Annapolis

ANNAPOLIS, MD — Vacation homes could soon face more restrictions in Annapolis.

The city council is considering a 12-month moratorium, or pause, on issuing new licenses for short-term rentals. These units are rented out on websites like Airbnb and VRBO.

The proposed moratorium was introduced at Monday's meeting, the first for the newly elected mayor and city council.

The news came two months after Annapolis passed a cap on short-term rentals. The city is now barred from issuing new licenses for short-term rentals on a blockface when 10% of its units are short-term rentals. A blockface is one side of a street on a block.

Supporters applauded the action, arguing that over-tourism is diminishing the historical charm of downtown while also driving rent higher for locals. Opponents say tourists are necessary to sustain the city's economy.

Some think the cap, led by Alderman Harry Huntley (D-Ward 1), didn't go far enough, sparking calls for additional regulation.

Huntley thinks the moratorium is unnecessary because of his cap. He voted, however, to introduce the resolution to allow the kinks to be worked out before a final decision is made.

"The density cap that was passed a couple months ago already prevents new licenses in the places where there's a problem with too many STRs, so why would we pass this and prevent new licenses in the places where there isn't (and can’t become) a problem?" Huntley said in a Sunday newsletter. "My preference is for the council to focus on further strengthening enforcement against unlicensed STRs, and this doesn’t do that."

Alderwoman Karma O'Neill (D-Ward 2) sponsored the moratorium, and new Annapolis Mayor Jared Littmann (D) was the cosponsor.

"Non-compliant short-term rentals and potentially excess short-term rentals may impact affordable housing options, undermine residential neighborhoods, undermine other important commercial activities related to other licensed hospitality and housing rentals, and negatively impact community harmony and equity, public safety and public health," says the resolution, dubbed R-50-25.

The legislation cites the city's struggle to rein in illegal rental units.

Annapolis has about 560 short-term rental units advertised at any given time, but only 50.5% of them are licensed.

"My constituents, overwhelmingly, are concerned about what short-term rentals are doing to their neighborhoods," O'Neill said at Monday's meeting, according to The Baltimore Banner.

The city has 42 blockfaces that exceed the already-passed 10% cap, a May staff report said. There are 30 blockfaces over the limit in Ward 1, five in Ward 2 and seven in Ward 8.

"The City of Annapolis has identified substantial and ongoing non-compliance with short-term rental licensure requirements," the resolution says.

Lawmakers think the moratorium could buy city leaders time to address deeper issues related to housing and tourism.

"A temporary moratorium on new short-term rental licenses will allow the City Administration and City Council a critical and necessary opportunity to implement new City Code enforcement provisions, determine a more accurate status and impact of short-term rentals city-wide, and consider potential amendments to strengthen current City law," the resolution says.

The Capital Gazette said Rob Savidge (D-Ward 7) was the only alderperson to vote against introducing the resolution. The newspaper reported that he wanted to maintain the tradition of saving the first meeting of a new council for assigning committees and determining the budget schedule.

"Some traditions are worthwhile following," Savidge said, according to the Capital Gazette.

Related:

• Short-Term Rental Homes Face New Cap In Annapolis
• Ward 1 Candidates Outline Plans To Slow Short-Term Rentals In Annapolis