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HomeMy WebLinkAbout2023 Ordinance No. 0251 ORDINANCE NO. 25 COUNCIL BILL NO. 21 SERIES OF 2023 INTRODUCED BY COUNCIL MEMBER NUNNENKAMP AN ORDINANCE AMENDING ENGLEWOOD MUNICIPAL CODE REGARDING SHORT TERM RENTALS WHEREAS, the City of Englewood (“City”) is a home rule municipality organized under Article XX of the Colorado Constitution and with the authority of the Englewood Home Rule Charter; and WHEREAS, Englewood Municipal Charter Sections 3 and 30 provide that the City Council shall have all municipal legislative powers as conferred by general law, C.R.S. § 31-15- 103 empower the City Council to establish those laws necessary and proper to provide for the safety, preserve the health, promote the prosperity, and improve the morals, order, comfort, and convenience of such municipality and the inhabitants thereof; and WHEREAS, City staff recommends to Englewood City Council modification to the regulations and licensing requirements for short term rental properties in the City is necessary to avoid potential negative impacts to residential areas, control the impacts on the supply of long- term housing, level the playing field with commercial lodging businesses, provide for clarity and consistency with other provisions of Municipal Code, and to protect the public health, safety and welfare; and WHEREAS, City staff responsible for administering the City’s short-term rental regulations does hereby recommend amendments to Title 5 Chapter 31 regarding Short Term Rentals to provide and clarify the requirements for licenses, ensure hosting platforms list only properly licensed and permitted properties as available for short term rental on their platforms, and compensate the City for costs in implementing and enforcing these regulations; and WHEREAS, the Englewood City Council finds and declares that the adoption of amendments to Title 5, Chapter 31 to the Englewood Municipal Code regarding short term rentals as set forth herein are proper for the reasonable needs and desires of the City and in the promotion of the public health, safety, and welfare of the City’s residents and visitors. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF ENGLEWOOD, COLORADO: Section 1. Englewood Municipal Code Title 5 Chapter 31 regarding Short Term Rentals is hereby amended to read as follows (new provisions underlined, deleted provisions struck through): 5-31-1: Definitions. The Definitions shall apply to this Chapter contained in EMC § 5-1-1 (Business License Definitions) and Title 16 of this Code, including EMC §§ 16-5-4(C)(7)(b)(ADU), 16-5-6 (Short Term Rentals), and 16-11-2 (General Definitions), except as modified below. following definitions are applicable to this section: DocuSign Envelope ID: C8246231-589C-4521-B799-077B6C8F8592 2 Applicant: The owner(s) of the real property for which a short term rental permit is sought. If a property has multiple owners, including joint ownership by spouses, all persons with an ownership interest must sign the application permit. ADU: An accessory dwelling unit Community Development Department: The Community Development Department of the City of Englewood. Director: Director of Community Development, or his/her designee. Enforcement Officer/Premises Inspector: The provisions of this Chapter shall be administered and enforced by the City Manager of the City of Englewood, or his designee. The Enforcement Officer, who may be a zoning enforcement officer, building official, fire marshal, or other designee, will have all legal powers necessary to enforce this Chapter. Any appropriate enforcement officer may service as a Premises Inspector, as designated by the Director. Summons and complaints issued by the Enforcement Officer may be served by the Enforcement Officer, a Code Enforcement Officer, or a Law Enforcement Officer. Hosting Platform: Any person or entity that facilitates reservations or payments between short-term rental licensee and a person seeking lodging accommodations for a period of less than thirty (30) consecutive days. Long Term Lease: The lease or rental of a property for thirty (30) days or longer. Lot: A designated parcel, tract, or area of land established by plat, subdivision, or as otherwise permitted by law, to be used, developed, or built upon as a unit. If two (2), or more lots designated by plat, are combined to be built upon as a unit, the combined lots shall be understood to be a single lot for purposes of this short term rental code. A. Owner: The Every person(s) at least18 years of age and/or entity listed on the title to the Short Term Rental (STR) property as found on the current Arapahoe County Deed of Record, including every trustee and beneficiary (for trusts), member (for limited liability companies), and/or person with any ownership interest in the entity owner (if applicable). Such persons are also the persons who sign the "proof of residency" affidavit. A long term renter is not a property owner. Owner Occupied: Means the property owner's primary residence. A person can only have one (1) primary residence. Permittee: The owner of the dwelling unit that has a valid STR operating permit and business license. B. Primary Residence: Means a residence the place in which a person's habitation is fixed for the term of the license and is the person's An Owner’s usual place of return for housing, actually occupied by that Owner for not less than 185 days each year and designated as that Owner’s Home Address on their U.S. Individual Income Tax Return (unless the Post Office does not deliver to that address). An OwnerA person can only have one (1) Primary Residence. See 5-31-3 for documentation requirements. If a STR property is not the Primary Residence of all Owners, the Owner(s) must declare one or more Owners as the Beneficial Owner, and the STR property must be that person’s Primary Residence. DocuSign Envelope ID: C8246231-589C-4521-B799-077B6C8F8592 3 Renter or Lessee: The party contracting to rent the STR for a term less than thirty (30) day:s. Short Term Rental (STR): The nightly or weekly rental of a residential dwelling unit, or portion thereof, with or without a morning meal, ancillary to a primary living use, excluding hotels, motels, bed and breakfasts, for less than thirty (30) days, including but not limited to, a single-family dwelling, duplex, townhome, condominium, or similar dwelling. The term short term rental also includes and applies to "vacation rentals." C. STR License: City business license required to advertise or receive payment in exchange for use or occupation of a Short Term Rental; also referred to as STR Rental Registration or Operating Permit. 5-31-2: Business Licenses Required. A. Prior to renting, advertising, or offering to rent a property as a Short Term Rental within the City of Englewood, the Owner shall obtain: 1. A biennial Sales/Use Tax License under EMC § 4-4-1; and 2. An annual STR License. It shall be unlawful for any person or entity to offer or provide lodging in the form of a short term rental, with or without a morning meal, within a residential property located within the City of Englewood, without obtaining an annual business license from the City of Englewood, in conformance with this Title. B. Ineligibility. Properties ineligible for a STR License are: Prior to applying for a business license in conformance with this Title, the applicant must have complied with each of the following: 1. Titled in the name of a corporation or real estate investment trust; The property must be zoned to allow for such use. 2. Zoned I-1, I-2, or PUD; The property owner and primary resident must have a short term rental registration approved by the Department of Community Development, including proof of residency and ownership affidavit, if applicable. 3. The property owner must have a short term rental operating permit obtained in conformance with this Chapter, bearing the signatures of all property owners and applicable Premises Inspectors. An apartment in a complex comprised of rental units; or 4. A recreational vehicle, travel trailer, or temporary structure. C. A business license issued for a short term rental is not assignable or transferable to any other party or any other property. A property may not be under more than two (2) rental agreements for any fixed dates and times. Upon the sale or transfer of more than ten percent (10%) of the legal interest in a property, or the long term lease for sale of a property used as a short term rental all issued business licenses, rental registrations, or operating permits become null and void. DocuSign Envelope ID: C8246231-589C-4521-B799-077B6C8F8592 4 5-31-3: Application for Short Term Rental License, Renewals.Registration. A. Application Process. Every Owner shall sign a STR License application or renewal, and submit it with the non-refundable application fee and inspection fee, with: applicant for a short term rental registration shall submit an application to the City of Englewood Department of Community Development (CDD). B. Short Term Rental Registration Requirements. The short term rental registration form shall be promulgated by the CDD, and shall include the following documentation: 1. Proof of Ownership of the Subject Property Affidavit. Proof of ownership shall require A copy of the currenta deed on file with Arapahoe County; 2. Proof the Subject Property is the Primary Residence of the Owner in the following zoning districts Unless waived under EMC § 5-31-4, for property zoned R-1-A, R- 1-B, R-1-C, R-2-A, R-2-B, MU-R-3-A, MU-R-3-B, orand MU-R-3-C: Proof of residency requires a signed and notarized " a. Proof of Residency and Ownership Affidavit" identifying every Owner (if not evident from the face of the deed), establishing the Property is the Primary Residence of an individual Owner or Beneficial Owner, and attaching proof of authorization to execute the Affidavit on behalf of a trust or entity owner, if applicable; promulgated by the Englewood Department of Community Development. b. . Any such affidavit will include an oath that all information included therein is true and correct under penalty of perjury, and shall be supported by The first page of the most recent filed U.S. Individual Income Tax Return for the individual whose Primary Residence is the STR (with financials and social security number(s) redacted) showing home address as the STR; and c. State or Federal filed income tax return cover page showing the primary residence (with sensitive information redacted) and at least one (1) two (2) of the following, documents indicating the STR property is the individual’s Primary Residence: a valid motor vehicle registration, Colorado driver's license or Colorado identification card, or voter registration. d. Documents required by subsections b and c above may be waived if the Owner establishes compliance is legally impossible in an appeal to the Board of Adjustment and Appeals. 3. Signed/Approved Operating Permit. An approved operating permit in accordance with EMC Sections 5-31-4 and 5-31-5. 4. Acknowledgements and Agreement of: a. of Right to Inspect. Signed acknowledgement that Tthe City has the right to of inspection of the STR and all records regarding the STR rental premises for conformance with the City's life/safety codes at any reasonable time; DocuSign Envelope ID: C8246231-589C-4521-B799-077B6C8F8592 5 b5. Waiver of Liability. The City is not responsible of Englewood assumes no responsibility for the operation of the permitted STRs, the Owner waives and releases the City from property. The owner(s) shall sign a waiver and release of liability, and the Owner shall acknowledging and agreeing to indemnify, defend and hold harmless the City of Englewood from any and all claims and negligent acts arising out of the STR or its operation which may occur from the renting or operation of the STR. Such indemnification shall include defending the City from any claims arising from the use of the property as an STR. The owner(s) shall further warrant and agree to compensate the City of Englewood for any expenses incurred in any defense of any lawsuit or other action associated with the renting or operation of the STR, and which is brought against the City. c. Compliance. The Owner shall comply with all applicable laws and codes, and shall maintain, during the licensed period, all requirements necessary to obtain the initial STR license. d. Service. The Owner shall accept service of any City notice personally, by posting on the STR, or via US Mail sent to the mailing address provided on the application to the Owner or designated primary contact person. 56. Certificate of Insurance. Affidavit and a declarations page establishing notification to the property’s insurer of its use as a STR and that it has STR liability coverage of at least a. A permittee shall inform his or her insurance company that the property covered by the insurance company will be used as a short term rental before any short term rental transaction is processed, regardless of whether the permittee obtains liability insurance for the short term rental through that insurance company. The permittee shall verify compliance with this notification requirement by executing and submitting an insurance form affidavit provided by the CDD during the application process. b. A permittee shall maintain liability insurance to cover use of the short term rental in an amount determined appropriate by the insurance company insuring such short term rental, but no amount of less than one million dollars ($1,000,000) in the aggregate. Such coverage shall be maintained in full force and effect for the term of the business license. Alternatively, a permittee may elect to conduct each short term rental transaction through a hosting platform that provides equal or greater insurance coverage for each short term rental use, and documented upon the insurance form affidavit. 6c. Homeowners Association. If the STR is subject to property being used as a short term rental is included in a homeowners association (HOA), an Affidavit establishing the HOA has been notified of the STR license application and the proposed use complies with HOA regulations the applicant for a short term rental business license shall inform the home owners association that the applicant intends to use the property as a short term rental prior to obtaining a short term rental business license. The permittee shall verify compliance with this notification requirement by executing and submitting an HOA form affidavit provided by the CDD during the operating permit application process. DocuSign Envelope ID: C8246231-589C-4521-B799-077B6C8F8592 6 7. Floorplan. A scale floorplan of the STR, including all levels; 8. Property Plan. A scale plan for the property showing all parking areas, including a minimum of one (1) permanent parking space per bedroom for rent, no more than two (2) of which may be on-street, public parking. 9. Contact information. The a. Owner. The owner shall provide a cell and/or home telephone phone number, mailing address, and email address of every Owner and property address, if different from mailing address. The owner shall agree to accept service of notice of violation at such address either personally or upon posting of notice upon the property. b. Primary Contact. Each STR owner or operator shall designate a designated primary contact person. If the primary contact is not the owner(s), the primary contact shall be a named individual and the following information shall be provided: cell and/or home telephone number, mailing address, email address, and business address and business phone, if applicable. Any change(s) to the primary contact information shall be provided, in writing, to the CDD, within ten (10) days of such change(s). Failure to notify the CDD of such change is grounds for revocation of the short term rental registration and business license. The primary contact shall be available on a twenty- four (24) hour basis, seven (7) days per week , and be able to provide STR access and respond to any concerns from renters or the Ccity enforcement personnel. The primary contact may be the property owner(s) or another person employed by, authorized by, or engaged by the owner(s) to manage, rent or supervised the STR. The primary contact shall be able to respond to any concerns that may arise during any rental period of the STR, including the ability to access the STR in a timely manner. 10. Posting Notice. A copy of both the short term rental operating permit and the provisions of Section 5-31-5 shall be conspicuously posted within the area rented for use as an STR. The visibility of the place of posting shall be confirmed with the inspector during the inspection of each premises prior to issuance of an annual operating permit. 11. Regulatory Compliance. All STRs shall meet the standards of all applicable building, electrical, plumbing and fire codes adopted or amended by the City of Englewood. 12. Additional Documentation. AnyAll other documentation required by referred to within this Chapter or the City, or as required by the CDD. D. Ineligible Properties. An apartment complex comprised of rental units may not be utilized as an STR. BE. Consideration of Application. Review of Short Term Rental Registration Request. The City Manager, or designee, shall review each submitted short term rental registration form, and associated documentation as required by this Title and Chapter, within thirty (30) days of receipt of any such Registration Form. Following determination that the application is complete, the registration form and associated documentation shall be referred to all applicable City departments for review regarding conformance with all applicable Codes of the City of Englewood. Within sixty (60) days, following the filing of the application the City will either request the DocuSign Envelope ID: C8246231-589C-4521-B799-077B6C8F8592 7 Owner amend the application, or notify the Owner applicant of denial or approval.will be provided with a written determination of approval/disapproval of the STR 1. The Owner shall pay the STR License fee within 30 days, and the STR License shall be issued immediately thereafter. 2. The application shall expire and terminate if the Owner, without requesting an extension in good faith, fails to: pay the STR License fee within 30 days of approval, or amend an application within 15 days of request. registration request. A property operating as an STR without a STR business license, rental registration and operating permit shall not be eligible to receive any such license or permit until thirty (30) days following compliance with these regulations and all applicable zoning regulations. F. Non-assignable. A short term rental registration may not be transferred or assigned to any other party or any other property. C. Renewals. Applications for STR License renewals may attach any Affidavit previously submitted, if its content is accurate. D. Affidavits. All Affidavits required by this Chapter shall be on the City form, signed under penalty of perjury, and notarized by a Colorado licensed notary. 5-31-94: Waiver of Primary Residence Requirementfrom Administrative Regulation(s). A. Waiver from Regulation(s). The Board of Adjustment and Appeals may, upon application from the owner waive or modify the Primary Residence requirement in EMC § 5-31-3(A)(2) if the Owner establishes in a quasi-judicial hearing under EMC Title 1 Chapter 10:, authorize waivers from the strict application of the following provision(s) of this Chapter: 1. Requirement that a short term rental be owner occupied. NOTE: proof the subject property is the primary residence of the owner is only required in the following zoning districts: R-1-A, R-1-B, R-1-C, R-2-A, R-2-B, MU-R-3-A, MU-R-3-B, and MU-R-3-C. B. Requirement for Approved Waiver. Unless an approved waiver from regulations is on file with the City Clerk, short term rental businesses must be in compliance with all operating, registration and licensing regulations set forth within this Chapter. A waiver is not assignable to any other person/entity or transferable to any other property. It shall become null and void upon sale or transfer of the more than ten percent (10%) interest in the property. C. Form of Application. The application for waiver from regulation(s) shall be promulgated by the Department of Community Development. Such application shall provide for the applicant to respond to each of the following waiver standards: 1. A statement of any and all . special circumstances or Cconditions peculiar to the particular business or property or Oowner that do not apply generally to all STR, DocuSign Envelope ID: C8246231-589C-4521-B799-077B6C8F8592 8 such as short term rental businesses or enterprises; and property located in commercial or medical/wellness districts, owned and managed by a medical facility, or adjacent to a medical facility for predominant rental in support of patient care; 2. An explanation of why the requested waiver will not weaken the general purposes of this Chapter as to the subject property; and 3. An explanation of how the property owner will provide aAlternate effective means of assuring Owner oversight and regulatory compliancethe goals of the regulation(s) sought to be waived will be upheld, and that the STR neither the waiver nor the alternate means of assuring regulatory compliance will not alter the essential character of the area, such as through implementation of a noise monitoring device or an affidavit district in which the short term rental is located. Examples of alternate effective means include, but are not limited to: a. Affidavit from a hospital/medical facility establishing the STR will be predominantly that such STR is regularly rented in support of patient care or that the STR . b. Affidavit from hospital/medical facility that such STR is regularly monitored by such hospital/medical facility on a twenty-four (24) hour basis. D. Filing Application; Hearing Procedure. Upon receipt by the City Clerk or Clerk of the Board of any application for a waiver from Regulations, the same shall be referred to the Board, and a date, time and place for hearing thereon shall be set, which shall direct public notice thereof to be given in conformance with Section 1-10-2-6; provided, however, that the Board may authorize its Clerk to set a date, time and place for hearing upon receipt of such application in lieu of such action by the Board itself. The Board shall hold a public hearing on the proposed waiver from regulations in conformance with Title 1, Chapter 10. E. Criteria for Approval. The Board may waive or modify any of the provisions set forth in Section 5-31-11(A) if it finds that applying such regulation or regulations to the short term rental is unnecessary in accordance with the criteria listed below: 1. Special circumstances or conditions peculiar to the specific STR or property owner exist that do not apply generally to all short term rental businesses or enterprises. Examples of special circumstances may include: a. Property located in a district zoned for commercial or medical uses, b. Property owned and managed by a medical facility/hospital, c. Property owned and managed by an abutting property owner, and regularly rented in support of patient care. 2. The requested waiver from regulation(s) will not weaken the general purposes of this Chapter. 3. The property owner will provide alternate effective means of assuring the goals of the regulation(s) sought to be waived, and such alternate means will not alter the essential character of the district in which the short term rental is located. Alternate effective means may include, but are not limited to: DocuSign Envelope ID: C8246231-589C-4521-B799-077B6C8F8592 9 a. A twenty-four (24) hour on-duty maintenance manager located within one (1) mile of the property, b. Installation of noise detection system. F. Findings of Fact and Conclusions of Law. Following such hearing, the Board shall make written findings either approving, conditionally approving, or denying the waiver from regulation. The decision on whether to approve or deny an application for a waiver from regulation shall be in writing, based upon substantial evidence presented at the public hearing. BG. Procedure Following Approval. Any order approving the requested waiver shall provide the waiver effective date and duration, and any additional conditions and documentation necessary to obtain and maintain the waiver. If the application is approved a form, as promulgated by the Department of Community Development, shall be completed by the Board and signed by the Chair of the Board, and filed with the City Clerk, setting forth the following information, and any other information necessary to proper documentation of any approval or denial of such request for a waiver of regulation: 1. Date such waiver from regulations becomes effective; 2. Duration of the waiver from regulation(s); 3. Clear statement of that regulation(s) for which a waiver has been approved; 4. Any documentation the property owner must submit to the enforcement official, and the regularity of such submission of documentation, proving the grounds for the waiver of regulation continue to exist; and 5. Any additional regulations imposed upon the property owner and property to assure the waiver from regulation(s) will not weaken the general purposes of this Chapter. CH. Post Decision Remedies. WInitiation of the following remedies must occur within thirty (30) days after issuance of the Board order, any interested party may request a rehearing based on material decision. For the purpose of this subsection, the Board decision shall be the vote on the waiver request. 1. Rehearing. If the applicant or an interested third party finds evidence that was not available at the time of the hearing. The Board shall grant the request, and hold a second quasi-judicial hearing, if the applicant establishes the new evidence was not available at the original hearing and that the new that may materially bear on the case, a request for a rehearing may be made to the Board. The request shall be in writing and contain the following: a. A summary of the new evidence. b. The reason the evidence was not available to the Board at the original hearing. c. A statement as to why it is believed that the evidence will materially affect the decision of the Board. 2. The Board shall hear the request for rehearing and shall vote on the issue of granting a rehearing. The chairperson shall announce the Board's decision. If a rehearing is DocuSign Envelope ID: C8246231-589C-4521-B799-077B6C8F8592 10 granted, a new date will be set for a public hearing and all posting and publication requirements shall apply and shall be the responsibility of the original applicant. If a rehearing is denied, the original Board decision shall stand. 3. Reconsideration. If a Board Member believes that the Board would benefit from reviewing a Board decision, a motion for reconsideration of the decision may be made. If the motion to reconsider fails, the original decision stands. If the motion to reconsider is approved, the original waiver request shall be reheard by the Board. The Board may reconsider the waiver request immediately or may continue the reconsideration to a date certain. 4. The reconsideration shall be limited to the facts presented in the original waiver request and no new evidence shall be taken. The Board may confirm, reverse, or modify the original decision. I. Appeals of Board Decisions. Appeals of final decisions of the Board may be made to the District Court pursuant to Rule 106, Colorado Rules of Civil Procedure. 5-31-45: Operational Regulations on Short Term Rentals Operating Permit. A. STR Operating Permits Required. All STRs must have a valid and current operating permit. An operating permit shall be effective for twelve (12) months, and shall go into effect upon the date of issuance, unless surrendered, suspended or revoked for cause. Operating permits shall be issued by the CDD in accordance with this Chapter. B. Non-Assignable. An operating permit issued for a short term rental may not be transferred or assigned to any other party or any other property. C. Posting the Operating Permit and Life/Safety Information. The operating permit shall be signed by all owner(s) of the real property used as an STR and be conspicuously posted within the area rented as an STR. Additionally, the life/safety information set forth in Section 5-31-6 shall be conspicuously posted within the area rented as an STR. D. STR Operating Requirements. 1. Accountability. The STR shall be the legal responsibility of the legal owner(s) as set forth on the application and permit, and the owner shall agree to accept notice of violation either in person or upon posting upon the property. 2. Primary Residence. A residence used as an STR shall be the primary residence of the legal owner(s), except when a waiver of this provision has been issued by the Board of Adjustments and Appeals. A3. Accessory Dwelling Units (ADU). An ADU may be utilized as a STR. A STR License will only issue for an ADU or the primary structure, but not both. For parcels containing ADUs the owner, if such owner is also the primary resident of the main residence, may obtain an STR permit, for the main residence only. STRs are not permitted in ADUs. 4. Maximum Occupancy per Bedroom. An STR shall not exceed two (2) adults per bedroom. DocuSign Envelope ID: C8246231-589C-4521-B799-077B6C8F8592 11 B5. Maximum Occupancy of Premises. The maximum overnight occupancy of an STR shall be no more than two persons per bedroom plus two persons, but in no event shall an STR exceed a maximum occupancy of eight (8) persons. A studio ADU is one bedroom. 6. Prohibited Structures. No STR shall be located in any recreational vehicle, travel trailer, or temporary structure. C7. Limitation of Rental Contracts. No STR shall be under more than two (2) simultaneous rental contracts. D8. Limitation on Multiple Uses. When occupied by a Renter, a STR During any rental period, the STR shall not be used only for lodging for any purpose (e.g., home- based business, temporary event, etc.) by the renter or owner other than lodging purposes; home-based businesses, venue for parties or events, and other non- lodging purposes are prohibited. 9. Parking. All STRs shall provide one (1) parking space per bedroom. STRs lacking a paved parking space in a driveway, garage, or carport shall be limited to two (2) on- street parking spaces. These on-street locations shall remain public and may not be reserved by the use of any signage. Any advertisements or listing of the STR shall provide the number of parking spaces available for use by the renter, and the location of such parking spaces (on-street, off-street). The number of bedrooms for rent may not exceed the number of available parking spaces. E10. Premises Inspection. Upon payment of the inspection fee, an STR applicant shall complete and submit an initial premises compliance and safety check on the City form. Thereafter, the City shall inspect the STR for compliance with applicable regulations, and issue Each property shall complete an initial premises compliance and safety check in conformance with a checklist promulgated by the CDD. Upon determination of compliance with this Chapter by the Premises Inspector, the property shall be issued a certificate of inspection for STRs that comply. No STR License will be issued without a certificate of inspection, and a reinspection with accompanying fee may be required to obtain the certificate. Annual premises inspections shall be completed in accordance with Section 5-31-5(J). During the inspection the Premises Inspector shall verify the posting place within the premises is conspicuous. 5-31-5: Special Conditions and Restrictions of the Short Term Rental Business License. Violation of any of the following provisions may result in revocation of the business license and short term rental registration: A. Fees. Fees associated with the issuance of the operating permit, registration, business license and any other requirements of this Chapter, shall be established by action of the Englewood City Council, and set forth within the City's Fee and Rate Schedule. B. City Tax Certificate. The owner of any STR issued a business license by the City of Englewood must obtain a valid City of Englewood Sales Tax Certificate within thirty (30) days from the approval of the business license application. DocuSign Envelope ID: C8246231-589C-4521-B799-077B6C8F8592 12 C. State Tax License. The owner of any STR issued a business license by the City of Englewood must obtain a valid State of Colorado sales tax license within thirty (30) days from the approval of the business license application. FD. Tax Liability. STRs shall be subject to sales and lodging taxes under EMC § 4-4-4- 1, which shall be collected and remitted by the License Holder as required by law. Owners and operators of STR shall be subject to, and responsible for, all sales and lodging taxes as set forth under Title 4-4-4-1, Lodging Services of the Englewood Municipal Code. The requirements of EMC 4-4-4-1 are hereby deemed to incorporate and be applicable to all STRs. Failure to collect and remit all applicable sales and lodging taxes at the City, State or Federal level is grounds for revocation of the operating permit. GE. Life Safety. All STRs shall contain the following: a minimum of one (1) operable fire extinguisher per floor (or more if deemed necessary during athe premises inspection), operable smoke detectors in each sleeping room, and an operable smoke detector and carbon monoxide detectors (or a combination unit) outside of each sleeping area in the immediate vicinity of the sleeping rooms. in all rooms used for sleeping purposes, and operable smoke detectors on each floor of the STR. An STR with Lliving or sleeping areas within a basement area shall havebe equipped with egress windows and other appropriate exits systems. HF. Noise. No person shall make, cause, permit or suffer,Owner shall allow any Renter to violate applicable law at the STR, including EMC § 6-2-8 (maximum noise levels) any unreasonable noise from any STR that is in excess of the sound pressure limits set forth in Section 6-2-8 of this Code. G. Property Maintenance. The STR property shall be properly maintained and free of loose, uncollected trash, garbage, and litter. The owner(s) or management company shall comply with all property codes of the City of Englewood. IH. Signs. A permitted STR may display dwelling is permitted one (1) exterior non- illuminated, non-animated sign, no more than up to a maximum of one (1) square foot in area. The sign shall not be illuminated nor contain any animation. I. Owner(s) Responsibility for Compliance. Compliance with the terms and conditions set forth in this Chapter shall be the responsibility of the legal owner(s) of the STR, as set forth on the application and proof of residency and ownership affidavit, and cannot be delegated to any other party. Any violations of any term or condition of this Chapter are strictly the responsibility of the owner(s), and any summons and complaint served for any violation shall be served upon the owner(s) of the STR. J. Operating Permit Renewal. All STR permits shall be renewed through the CDD on an annual basis. All renewals shall include an updated inspection of premises, including a compliance and safety check, signed by applicable code enforcement personnel, any updates to the information required for a short term rental operating permit, and proof of payment of all renewal and permit fees. K. Change of Ownership. Any change of owner, officer, director, or holder of more than ten percent (10%) of the ownership of any STR shall render such STR business license, rental registration, and operating permit null and void. DocuSign Envelope ID: C8246231-589C-4521-B799-077B6C8F8592 13 L. Affidavits Under Oath. All affidavits required by this Chapter shall be signed under penalty of perjury. M. Publication of Business License Number. Any short term rental permittee shall include their City of Englewood business license number upon any advertisement to lease such property as a short term rental, including upon any hosting platform, or in any other form of advertisement of the STR. 5-31-6: Posting within Short Term Rentals of Life/Safety Information. The following shall be conspicuously displayed within every STR: The owner(s)/operator(s) shall post the following information inside the area rented as an STR in a conspicuous location for any renters/: A. The provisions of A copy of the regulations and requirements regarding short term rental operating permits; EMC § 5-31-5(B-D, G-H); B. The Contact information for the designated primary contact person described in EMC § 5-31-3(A)(9) name, address, and telephone numbers of the primary contact person, management company, or owner of the STR that can be reached on a twenty- four (24) hour basis; C. The maximum number of persons allowed to occupy the STR; D. Location of parking spots, described in EMC § 5-31-3(A)(8) The maximum number of vehicles allowed to park on, or in front of, the STR property; DE. Information The STR’s regarding trash/garbage and recycling storage and removal, recycling storage and removal, including the days and location of pick-up, Clearly defined garbage and recycling areas shall be provided; any fire and water restrictions in place, fire evacuation routes, and other information required by the City applicable to the STR and surrounding neighborhood; EF. A copy of the STR License The property address, including house number, street name and city; FG. The A list of non-emergency telephone numbers for public safety agencies, including non-emergency number of the police department; and GH. The location of all fire extinguishers and exits, including egress windows.; and I. During the annual premises inspection, the inspector shall verify the place of posting is conspicuous to the renter(s). 5-31-7: Suspension, Revocation/Termination/Surrender of Business STR License and Operating Permit. In addition to any basis for suspension or revocation under Chapter 1 of this Title, the following shall apply to STR Licenses: A. Automatic RevocationSurrender. A STR License shall be automatically revoked for: DocuSign Envelope ID: C8246231-589C-4521-B799-077B6C8F8592 14 1. Business licenses, rental registrations, and operating permits shall be deemed surrendered upon delivery to the City of Voluntary Surrender. Wwritten notice by or on behalf of the Owner indicating the property owner(s), or representative, that a dwelling or property will no longer be used as a STR; short term rental. 2. Change of Ownership. Any change of STR ownership of more than ten percent (10%), unless a STR License application submitted by the new Owner(s) is pending; 3. Expiration. Expiration of a STR License or Primary Residence Waiver under EMC § 5-31-4, without submitting a renewal application prior to expiration; or 4. Failure to maintain any condition required to obtain the STR License, including Primary Residence and Insurance. B. Termination. A termination of the business license, rental registration, and operating permit occurs when the ownership of the property has been sold, assigned, or otherwise transferred to a new owner(s), or the current STR permit holder has failed to obtain a renewal of the operating permit on or before its annual renewal date. B. Suspension. A STR License shall be suspended for failure to: 1. Notify the City within ten (10) days of a change to contact information described in EMC § 5-31-3(A)(9); 2. Allow access or timely request rescheduling after service of a Notice of Inspection; 3. Pay the reinspection fee under EMC § 5-31-9(B)(1); 4. Timely request a hearing, inspection, or comply with a written order to comply under EMC § 5-31-9(C); or 5. As ordered by the Licensing Officer or otherwise required by Municipal Code. C. Revocation. Any STR operating permit may be revoked for cause or suspended by the Director, or his/her designee, after written notice to the owner(s) for the following violations: 1. Violation of any term or condition of the operating permit, or for any violation of any provision set forth in this Chapter, if such term or condition is not abated in conformance with an administrative notice of violation, or is deemed egregious by the Director. 2. Violation of any provision of the Englewood Municipal Code, City Ordinance, or State law relating to the maintenance of the permitted property operating as an STR, if such term or condition is not abated in conformance with an administrative notice of violation, or a failure to remain in compliance with all City or State sales tax regulations. DocuSign Envelope ID: C8246231-589C-4521-B799-077B6C8F8592 15 3. The existence of any condition, or performance of any act, which the City determines constitutes nuisance or causes a condition endangering the health, safety and welfare of any individual(s), or has caused damage to the STR dwelling unit identified by the operating permit, including damage caused by fire, flood, wind, or other natural disaster, if such condition or act is not abated in conformance with a notice of violation. 4. After a third violation of any provision of this Chapter, the Englewood Municipal Code, or applicable State or Federal law or regulation has been administratively verified, the Director of Community Development, or his/her designee, shall revoke the STR operating permit and rental registration. Notice of revocation shall be conveyed to the Business Licensing Officer for revocation of the business license. 5. Upon revocation of any short term rental business license, the licensing officer shall notify hosting platforms that the business license has been revoked, and the period of time associated with such revocation. CD. Denial/Temporary Denial. The Licensing Officer Director of Community Development, or his/her designee, may deny an application for a STR License or renewal or withhold the approval of a renewal of an annual operating permit if the property is in violation of any EMC provision. applicable title or chapter of the Englewood Municipal Code. DE. Term of Revocation. No STR or Owner is eligible for a STR License until at least eighteen (18) months have elapsed after STR License revocation for the following reasons: fraud or misrepresentation in the STR License application; willfully and knowingly creating or allowing to exist a dangerous condition at the STR; failure to maintain Primary Residence, if required; two STR License suspensions in any 12- month period; issuance of three orders to comply in any 12-month period, unless dismissed after hearing or appeal. The owner(s) of an STR business license, rental registration, and operating permit that has been revoked for a violation shall not apply for another STR operating permit for a period of eighteen (18) months for any property. EF. Administrative Appeal. Any denial, suspension, temporary denial, or revocation or other decision of the City regarding of an STR business Llicense, rental registration or operating permit may be appealed under Chapter 1 of this Title. to the Board of Adjustment and Appeal in accordance with the procedures set forth in Title 1, Chapter 10 of this Municipal Code. F. Notification to Hosting Platforms. The Licensing Officer shall notify known Hosting Platforms when a STR License has been revoked or suspended, and direct removal of the STR from that platform. 5-31-8. Hosting Platforms, Records, Advertising. A. Advertising Unlicensed STR. Should any Hosting Platform list, advertise or receive payment, directly or indirectly, for an unlicensed STR in the City, in addition to any other DocuSign Envelope ID: C8246231-589C-4521-B799-077B6C8F8592 16 fine or other action authorized by law, the Hosting Platform shall pay a minimum administrative penalty of one thousand dollars ($1,000.00) per violation per day. B. Advertising. Every Hosting Platform and License Holder shall, on every effort to solicit a STR Renter or otherwise list or advertise a STR, clearly provide or display: 1. A valid City STR License number; 2. The number of parking spaces available for use by the Renter; and 3. Maximum occupancy of the STR. C. Records. 1. For at least three years, each License Holder shall maintain the total number of nights, the dates the STR was rented, and the amount of gross rental revenue paid. 2. For at least five years, each Hosting Platform shall maintain the following records of STR transactions within the City: a. Name of the person who offered the STR; b. Address of the STR; c. Dates for which the STR was booked by a guest through the Hosting Platform; d. Name and contact information of each guest booking the STR; e. Total price paid by each guest to the Hosting Platform for each STR transaction; and f. Englewood STR License number. D. The City shall make publicly available a list or map of licensed STRs, and a list of STR Licenses suspended or revoked, issued an order to comply (unless dismissed), or cited for violation of this Chapter. 5-31-98: Compliance, Enforcement. A. Every Owner shall be strictly liable to ensure compliance with all provisions of this Chapter, including requirements to operate a STR and to obtain a STR License, and may be prosecuted or subject to other administrative and/or enforcement proceedings for any violation. Allegation of Violation of this Chapter. The Enforcement Officer shall be responsible for the enforcement of all provisions of this Chapter in association with a short term rental operating permit and a short term rental registration, and is hereby authorized to undertake all investigations of violations of such as set forth in this Chapter, to issue notices and orders, to issue summons and complaints for prosecution in the Englewood Municipal Court, to bring any legal action in other courts of competent jurisdiction, and to take other measures as are necessary for the enforcement of the provisions of this Chapter. Violations of the business license shall be enforced in accordance with Chapter 1 of this Title. DocuSign Envelope ID: C8246231-589C-4521-B799-077B6C8F8592 17 1. Right of Access/Inspection. Pursuant to the terms of the operating permit, the Enforcement Officer has the right of access and entry upon any property operating as an STR with a valid STR business license and operating permit, at any reasonable time, and upon reasonable suspicion, to make inquiry and inspection to determine if health or safety violations exist upon the property in violation of any Title of the Englewood Municipal Code. 2. B. Notice of Inspection. Unless a property is inspected at the request of an Owner, at least three days pPrior to an inspection, the City shall post on the STR or serve on any Owner or designated primary contact notice of inspection providing: the Enforcement Officer shall provide notice of the intent to inspect to the owner(s) of the STR property. Such notice may be personally served upon the owner(s), or by posting the notice on the STR property, by mailing the notice to the owner(s) at their last known address, via U.S. Mail, postage prepaid, or by publication in a newspaper of general circulation. The notice to inspect shall be deemed served when personally served, posted upon the property, or upon three (3) days from the date of mailing. 3. Contents of Notice of Inspection. The notice of inspection shall include the date and time that the notice was served, posted, or mailed, the date and time of the proposed inspection, a directive request that anthe Oowner(s) be present for the inspection, and City contact to request rescheduling. the name and contact information of the Enforcement Officer, and a specific statement as to each suspected violation. The property owner may contact the Enforcement Officer to seek another time for the inspection, as long as such inspection occurs within three (3) business days of having received the notice of inspection. 14. Failure to Comply with Notice, Reinspection. Should an Owner fail Failure to allow access to the STR at the scheduled inspection or to contact the City at least 24 hours before the inspection to reschedule, the License Holder shall pay a reinspection fee for a second inspection. comply with inspection notice, or make the property available for inspection, shall be grounds for revocation of the business license and operating permit in accordance with EMC 5-31-7 above. CB. Administrative Compliance/Notice of Violation Noncompliance. Procedures described in EMC § 5-1-9 shall apply, except as modified by this Chapter and as follows: 1. Notice of Violation. Following inspection, or upon other evidence of non-compliance with this Chapter the Enforcement Officer shall provide written notice of the violation(s) of this Chapter to the owner(s) of the STR premises. 2. Receipt of Notice of Violation. The notice shall be deemed received immediately when served upon the owner(s) 1. Service. An order to comply, notices, and other documents may be served on any Owner or the designated primary contact, by posting such notice on the permitted STR property, or by personally serving or sending via certified mail on any one of them. the notice to the owner(s) at the address provided for such service. The City may serve a Hosting Platform via certified mail to the registered agent, or as otherwise authorized by law. DocuSign Envelope ID: C8246231-589C-4521-B799-077B6C8F8592 18 3. Contents of Notice of Violation. All notices shall include the following information: a. The common address or legal description of the property upon which the STR is located; b. A specific notice that the owner(s) of the property is/are in violation of the Englewood Municipal Code, specifically listing those sections of the Code of which the property is alleged to be in violation; c. An administrative order directing the owner(s), or primary contact, of the property to correct the condition within five (5) days of the date of receipt of said notice, such compliance date to be clearly stated upon the face of the notice; d. Contact information for the Enforcement Officer assigned to the matter; e. Notice that the administrative order may be appealed to the Board of Adjustment and Appeals in compliance with the procedures in Title 1, Chapter 10 of the Englewood Municipal Code; f. Notice that failure to comply with the administrative order, or file an appeal of such order, within the time provided upon such notice, or extension thereof, shall result in the immediate revocation of the STR operating permit and business license. g. Notice that such violations may be subject to criminal prosecution, in addition to any administrative action or order. 24. Compliance Inspection. In lieu of requesting a hearing under EMC § 5-1-9(A)(2), an Owner may request an inspection for violations requiring remediation by filing a request and paying the City inspection fee before the period for compliance expires. Within five (5) business days of request, the City shall inspect the STR to confirm resolution of the violations and notify the Licensing Officer of the outcome. For properties not in compliance, the Licensing Officer shall either suspend the STR License until compliance is achieved or may grant an Owner’s request for a reasonable extension of time to resolve the violation(s) if the Owner following receipt of the administrative notice and order, the property owner or primary contact shall contact the Enforcement Officer to schedule inspection of the property. The Enforcement Officer shall provide a compliance inspection, and shall dismiss the administrative order following a determination that the property is in compliance with the provisions of this Code. 5. Extensions of Time. The Enforcement Officer is authorized to provide one (1) extension to the notice of no more than five (5) days, including weekends and holidays, following a compliance inspection of the property if the Enforcement Officer believes the property owner made a good faith but unsuccessful effort to correct the violation(s), and such violation(s) may be successfully remediated within such additional time. The Owner must request a second compliance inspection at or before the expiration of the extension, and pay the reinspection fee. 6. Notification to Hosting Platforms of Revocation. At the end of the compliance period, or any extension thereof, if the administrative order has not been dismissed by the Enforcement Officer, the Enforcement Officer shall notify the business licensing division of the City of Englewood that the business license for the STR shall be DocuSign Envelope ID: C8246231-589C-4521-B799-077B6C8F8592 19 revoked pending compliance with the administrative order, and hosting platforms notified of such revocation. 7. Administrative Appeal. An administrative order may be appealed to the Board of Adjustment and Appeals in compliance with the procedures in Title 1, Chapter 10 of the Englewood Municipal Code. C. Municipal Prosecution; Summons and Complaint; Notice to Appear; Right to Proceed; Fines and Costs; Appeals. 1. Municipal Search Warrant. If the owner or primary contact fails to schedule a time for the compliance inspection within five (5) business days following service of the administrative notice, the Enforcement Officer may seek a search warrant for the inspection of the premises under the provisions of Section 1-7A-4 of the Englewood Municipal Code. 2. Issuance of Citation. If the Enforcement Officer has not made a determination that the property is in compliance with the Englewood Municipal Code within the time provided for compliance with the administrative notice of violation, the Enforcement Officer is authorized to issue to the owner(s) of the STR property a summons and complaint and notice to appear in the Englewood Municipal Court to answer to charges of a violation of this Chapter, and to take all administrative action associated with revocation of the STR business license and operating permit. Summons and complaints issued by the Enforcement Officer may be served by the Enforcement Officer, a Code Enforcement Officer, or a Law Enforcement Officer. 3. Administrative/Civil Enforcement. During the pendency of the case in the Municipal Court, the City shall not be precluded from addressing the violations of this Chapter, or any other Title of the Englewood Municipal Code applicable to the STR, through administrative or civil action to bring the STR property into compliance with this Chapter or the Englewood Municipal Code, or any other applicable law or regulation. The business license and operating license may be administratively revoked in compliance with this Chapter, in addition, to criminal prosecution. D4. Penalty Provisions. In addition to any other penalties or administrative or civil actions for violating this Chapter, Any person, upon a finding or admission of guilt in any criminal prosecution arising out of operation of a STR: found guilty by the Municipal Court of violations of this Chapter, or who enters a plea of guilty or nolo contendere, to any violation of this Chapter, or any other violation of the Englewood Municipal Code in association with the operation of a STR, shall be subject to the provisions of the general penalty, EMC Section 1-4-1, and 1. The Court shall be ordered the Defendant to comply with applicable Englewood Municipal Code prior to allowing a Renter to occupy the STR; to bring the property and/or violation into compliance before re-letting the property to any short term renters. 2. The minimum fine imposed for a violation of this Chapter shall be: five hundred dollars ($500.00) for a first violation; one thousand dollars ($1,000.00) for a second violation; and one thousand five hundred dollars ($1,500.00) for third and subsequent violations; DocuSign Envelope ID: C8246231-589C-4521-B799-077B6C8F8592 20 3. Any fines, fees, costs, or restitution imposed may be collected by the City by any means allowed by law, including a lien against the property at issue; and 5. Costs. Any person convicted of a violation of this Chapter, or any other violation of the Englewood Municipal Code in association with the operation of a STR, 4. In addition to other fees, fines, and costs imposed, the Court shall may be assess against the defendant ed a fine, court costs, and all reasonable costs and fees imposed by this Chapter and/or incurred by the City for service, investigation, enforcement, and prosecution of the violation(s). associated with service of any and all notices upon the property incurred by the City in association with the enforcement of this Chapter. 6. Notification to Hosting Platforms. All hosting platforms shall be notified by the business licensing division of the City of Englewood when a short term rental's business license/operating permit has been revoked, and such entities will be directed to remove the short term rental from any lists of properties advertised for rental. E. Operation of a STR without a valid STR License shall constitute a use in violation of Code authorizing the City to prevent occupancy by suspending the Certificate of Occupancy (CO) of the Premises under EMC § 8-1-10(D) for the shorter of 10 days or issuance of a STR License. 1. The Owner shall pay the CO Suspension fee, and—if the property is occupied while the CO is suspended—an administrative penalty per night occupied, in the amount of: the total paid by a STR renter for that night or $100, whichever is greater. 2. A CO suspension may be appealed under EMC § 5-1-9(D). Any suspension shall be stayed until resolution of the appeal. Section 2. Short-Term Rental License Fees The City fee schedule shall be amended to reflect the amount of the following non-refundable fees in Title 1, Chapter 31 to: reimburse the City for costs and time incurred in evaluating and issuing applications, renewals, inspections, and CO suspensions; to discourage submission of incomplete or improper STR applications that unnecessarily utilize valuable City staff time; and to encourage the timely amendment of incomplete applications: Short-term rental License new application fee, renewal of expired license application fee: $500 Short-term rental License fee (both new and renewal): $200 Short-term rental License renewal application fee, if filed prior to expiration of the License: $300 Inspection/Reinspection fee: $55.00 Certificate of Occupancy Suspension Fee: $55.00 Section 3. General Provisions Applicable to this Ordinance The following general provisions and findings are applicable to the interpretation and application of this Ordinance: DocuSign Envelope ID: C8246231-589C-4521-B799-077B6C8F8592 21 A. Severability. If any clause, sentence, paragraph, or part of this Ordinance or the application thereof to any person or circumstances shall for any reason be adjudged by a court of competent jurisdiction invalid, such judgment shall not affect, impair or invalidate the remainder of this Ordinance or its application to other persons or circumstances. B. Inconsistent Ordinances. All other Ordinances or portions thereof inconsistent or conflicting with this Ordinance or any portion hereof are hereby repealed to the extent of such inconsistency or conflict. C. Effect of repeal or modification. The repeal or modification of any provision of the Code of the City of Englewood by this Ordinance shall not release, extinguish, alter, modify, or change in whole or in part any penalty, forfeiture, or liability, either civil or criminal, which shall have been incurred under such provision, and each provision shall be treated and held as still remaining in force for the purposes of sustaining any and all proper actions, suits, proceedings, and prosecutions for the enforcement of the penalty, forfeiture, or liability, as well as for the purpose of sustaining any judgment, decree, or order which can or may be rendered, entered, or made in such actions, suits, proceedings, or prosecutions. D. Safety Clauses. The City Council hereby finds, determines, and declares that this Ordinance is promulgated under the general police power of the City of Englewood, that it is promulgated for the health, safety, and welfare of the public, and that this Ordinance is necessary for the preservation of health and safety and for the protection of public convenience and welfare. The City Council further determines that the Ordinance bears a rational relation to the proper legislative object sought to be obtained. This Safety Clause is not intended to affect a Citizen right to challenge this Ordinance through referendum pursuant to City of Englewood Charter 47. E. Publication. Publication of this Ordinance may be in the City’s official newspaper, the City’s official website, or both. Publication shall be effective upon the first publication by either authorized method. F. Actions Authorized to Effectuate this Ordinance. The Mayor is hereby authorized and directed to execute all documents necessary to effectuate the approval authorized by this Ordinance, and the City Clerk is hereby authorized and directed to attest to such execution by the Mayor where necessary. In the absence of the Mayor, the Mayor Pro Tem is hereby authorized to execute the above-referenced documents. The execution of any documents by said officials shall be conclusive evidence of the approval by the City of such documents in accordance with the terms thereof and this Ordinance. City staff is further authorized to take additional actions as may be necessary to implement the provisions of this Ordinance, and has authority to correct formatting and/or typographical errors discovered during codification. G. Enforcement. To the extent this ordinance establishes a required or prohibited action punishable by law, unless otherwise specifically provided in Englewood Municipal Code or applicable law, violations shall be subject to the General Penalty provisions contained within EMC § 1-4-1. DocuSign Envelope ID: C8246231-589C-4521-B799-077B6C8F8592 22 Introduced and passed on first reading on the 17th day of April, 2023; and on second reading, in identical form to the first reading, on the 1st day of May, 2023. Othoniel Sierra, Mayor ATTEST: _________________________________ Stephanie Carlile, City Clerk I, Stephanie Carlile, City Clerk of the City of Englewood, Colorado, hereby certify that the above and foregoing is a true copy of an Ordinance, introduced and passed in identical form on first and second reading on the dates indicated above; and published two days after each passage on the City’s official website for at least thirty (30) days thereafter. The Ordinance shall become effective thirty (30) days after first publication on the City’s official website. _________________________________ Stephanie Carlile, City Clerk DocuSign Envelope ID: C8246231-589C-4521-B799-077B6C8F8592