The city of Bend is considering code changes that would limit the concentration of short-term and vacation rentals in some neighborhoods while also encouraging property owners to embrace long-term leasing.
During a planning commission meeting Monday, Lorelei Williams, program manager for the city’s licensing division, said the City Council directed her office and the city planning department to write the proposed code changes.
As of Tuesday, there were 1,124 active, licensed short-term rentals in the city of Bend, which accounts for about 2.5% of its housing stock, Williams said.
Of the active short-term rentals in the city, 31%, or 349 properties are located in the River West neighborhood.
Williams told the commission Monday that expanding the buffer zone around existing rentals from 250 feet to 500 feet would reduce high concentrations of vacation rentals in some neighborhoods. This expansion would make all homes within the buffer zone ineligible to be licensed as a short-term rental.
Expanding the buffer zone would increase the number of ineligible properties from just over 15,000 to more than 22,000 properties.
The city is also proposing incentives that would encourage short-term rental owners to use their property for long-term leases. The proposal would allow them to keep their short-term rental license if they have a tenant with at least a 12-month lease.
The two new code changes could go into effect in November if adopted by the City Council.
Neither of these efforts address the volume of unlicensed or illegal short term rental properties in Bend.
“The issue we’re dealing with is pretty large,” said Damon Runberg, Central Oregon regional economist for the Oregon Employment Department.
“At the end of the day, we need more housing stock. Period,” Runberg said.
Bend has yet to find the balance between allowing short-term rentals and ensuring permanent residents have access to housing while preparing for more growth.
Lincoln County on the Oregon Coast effectively halted licensing new short-term rentals after a ballot measure with almost 63% of the county in support in November. The Oregon Land Use Board of Appeals overturned the measure shortly after, but county officials have placed a moratorium on licensing new short-term rentals that is due to expire on Sept. 6.
The city of Bend is currently undergoing an audit to evaluate all existing rentals and determine which are legal and illegal, and force them into compliance.
Williams said compliance includes either licensing eligible short-term rental properties or stopping short-term rental activity entirely.
The city is scheduled to host a hearing at a regular City Council meeting Oct. 5 to propose the final code changes and hear feedback from councilors. Beforehand, the city planning commission plans to host a public hearing at its regular meeting on Sept. 12.
Read more on The Bend Bulletin.
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