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New STR Restrictions Coming for the Asheville Area
As you may be aware, the City of Asheville (about 2/3 of Asheville is in city limits; the rest is under county jurisdiction) has had strict STR regulations in place since 2016. Basically, you can't STR an entire home here, or even an ADU, and can only STR out a portion of a home that you reside in. Recently, Woodfin, which is just North of Asheville, under the leadership of some of the people that formerly lead Asheville's STR initiatives, adopted similar restrictions.
Last month, Buncombe County, which Asheville sits in the middle of, published plans to disallow STR's throughout the rest of the County. Property owners can apply for an STR permit now, before the effective date of the new plan, and can operate thereafter (i.e., be grandfathered). Their permit will not be transferable when they sell though, according to the draft plan. And commercial districts will be excluded from the restrictions, as will parcels in open use zoning (with a special use permit). The County is holding what will be their second public meeting on the topic this Monday, from 5:30PM until 7:30PM at AB Tech (and online).
Here is a link to the meeting: https://www.buncombecounty.org/countycenter/news-detail.aspx...
And here is a link to the plan the County presented in the first meeting, last month: https://engage.buncombecounty.org/DownloadFile/ImportFile_00...
#5 All Forums Contributor
- Attorney
- Philadelphia
This is a common theme across the country with many municipalities enacting similar restrictions including where I am located in Philadelphia. It's important to understand the zoning/code requirements and obtain all necessary permitting if you intend on operating your real estate as STR anywhere in the country.
#2 Short-Term & Vacation Rental Discussions Contributor
- Olympia, WA
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#2 Short-Term & Vacation Rental Discussions Contributor
- Olympia, WA
Ahhhh freedom....
People's Republic of Asheville is more concerned with STR regulations than people living in boxes on the streets.
@Mitch Davidson, thanks for posting this. I've seen this, and it looks like a timeline of 12-28 months before this would take effect.
Do you have any better info on the date that this would go into effect, and do you mind sharing the link where people should go to apply for their STR permit now?
Due to so many people flocking there to purchase a STR, I'm not surprised.
@John Whitfield. I haven't heard of an effective date yet, but it sounded like Spring of this year. I'm sure the topic will be raised this evening at the meeting. And I don't think they're taking applications yet, but you'll likely have to apply in person.
Has anyone heard updated news from the last couple of meetings on this topic re: timing? I'm under contract and am curious to know if I would be able to get closed and operating with a permit to be grandfathered in before regulations kick in.
@Dito Calderon. The county is having another public meeting on the matter this evening. Perhaps they'll finally hint at a timeline during the meeting, although the agenda is focused on hearing public comment. You can watch it by way of this link: https://engage.buncombecounty.org/Y50513
Here to update the thread. The proposed timeline (by the planning committee, not the commissioners who would vote it into effect) was shared at the end of the March 4th discussion. Here are the dates proposed.
March 18th public comment (already passed)
April 1 final working session to finalize the proposed language
April 22nd public hearing where they will vote on the proposal
TBD dates - sent to commissioners for review and public hearing to vote on the proposal.
This cannot get passed through until the commissioners review and choose to vote on the bill. The entire timeline is hazy since those dates have not come into focus yet.
A majority of the sentiment from the listening session on the 18th was in favor of STRs and there were a lot of people who shared personal stories of their rentals or their business which support their life, family, and future retirement of inheritance for their families.
Hope that helps anyone else if you're following along or interested in these discussions.
Quote from @Dito Calderon:
Here to update the thread. The proposed timeline (by the planning committee, not the commissioners who would vote it into effect) was shared at the end of the March 4th discussion. Here are the dates proposed.
March 18th public comment (already passed)
April 1 final working session to finalize the proposed language
April 22nd public hearing where they will vote on the proposal
TBD dates - sent to commissioners for review and public hearing to vote on the proposal.
This cannot get passed through until the commissioners review and choose to vote on the bill. The entire timeline is hazy since those dates have not come into focus yet.
A majority of the sentiment from the listening session on the 18th was in favor of STRs and there were a lot of people who shared personal stories of their rentals or their business which support their life, family, and future retirement of inheritance for their families.
Hope that helps anyone else if you're following along or interested in these discussions.
I am very interested in this! I listened to some of the stories folks said during the meeting. Lots of normal, blue collar folks are getting financial freedom from STR and yet the committee is tone deaf to their stories. I for one want to buy a property and STR it in Asheville, but I think this legislation nixes that idea. Thanks for posting the updates!
Best
Kyle
Quote from @Dito Calderon:
Here to update the thread. The proposed timeline (by the planning committee, not the commissioners who would vote it into effect) was shared at the end of the March 4th discussion. Here are the dates proposed.
March 18th public comment (already passed)
April 1 final working session to finalize the proposed language
April 22nd public hearing where they will vote on the proposal
TBD dates - sent to commissioners for review and public hearing to vote on the proposal.
This cannot get passed through until the commissioners review and choose to vote on the bill. The entire timeline is hazy since those dates have not come into focus yet.
A majority of the sentiment from the listening session on the 18th was in favor of STRs and there were a lot of people who shared personal stories of their rentals or their business which support their life, family, and future retirement of inheritance for their families.
Hope that helps anyone else if you're following along or interested in these discussions.
I am very interested in this! I listened to some of the stories folks said during the meeting. Lots of normal, blue collar folks are getting financial freedom from STR and yet the committee is tone deaf to their stories. I for one want to buy a property and STR it in Asheville, but I think this legislation nixes that idea. Thanks for posting the updates!
Best
Kyle
Thanks, @Dito Calderon. I couldn't attend, but figured it'd be similar to the last listening session. The last one, however, started with many people from two certain neighborhoods, gathered by a local non-profit, who spoke much about affordable housing, being displaced, etc. Several participants made the point in response that the county for a very long time has stood in the way of affordable housing being constructed, first and foremost by zoning, and that an STR ban isn't going to solve the problem. Perhaps the ban will give people the idea that count officials are doing something about the problem. The ban in Asheville proper started in 2016 though, and we don't seem to have more affordable housing as a result. Many of also argued that forcing out many STR's will impact our tourism revenues, which we're very dependent on, as many travelers won't come here if they have to stay in a hotel.
@Kyle Westerman I think you're wise to wait and see where this goes. Waynesville, a great neighboring town just outside Buncombe that's been pretty great for STR, is starting to talk of a similar ban. Woodfin passed one just last year. The idea is spreading, and could spread to some other spots here that have traditionally been STR friendly.
@Dito Calderon and @Mitch Davidson, thanks for posting these updates. I can't make the meetings but am following as closely as I can.
It's nice to see the community showing support for STRs and pointing out that an STR doesn't solve any of the real problems. Hopefully any regulations that get passed will be logical and not overly heavy handed (not holding my breath, but here's hoping).
Sharing another update after the planning board meeting on April 1st.
The planning board has finalized the drafts that they will take a public vote on during their April 15th meeting. This is a public forum to vote on the proposed text. This vote is whether they will send this proposal up to the county commissioners who are the only one who can actually vote something into effect.
A few key points / takeaways from my perspective:
1. The timeline is very unclear on what happens after April 22nd. It could be fast tracked or it could take 6+ months as government stuff normally does. There is no timeline or even whispers that I have heard on what this looks like.
2. All existing STRs with 2 days rented in the last year will be granted legal non-conforming status. The status of legal non-conforming will carry on with the property even through a deed transfer. They originally wanted to phase out STRs with deed transfer, but the complexity and lawsuit risk of that verbiage had them change to this. In other words, STRs can remain and can be sold to other investors in the future
3. There were some changes to the verbiage allowing STRs under certain conditions in the Open Use zoning district which was a big point of contention in previous hearings. It is still quite restrictive IMO and would not allow for many STRs but some to be added to the local market.
4. There were comments by 2-3 of the 7 planning board folks commenting on the speed of pushing this through and not understanding the relative priority or urgency of this specific topic. A few of them also mentioned that they don't really expect this to affect the housing affordability in the county, but do believe that STRs can affect the quality and integrity of the neighborhoods in the county which they want to preserve.
Here is where you can find the recording (1.5 hours) of the planning board meeting: https://fb.watch/rcVsDnzZAW/
Here is where you can find the meeting notes from that session: https://engage.buncombecounty.org/B67643
Hope that helps anyone else following along with this discussion!
Dito
Thanks for summarizing, @Dito Calderon. That document they provided, with all the colored font, was a mess to wade through. The biggest win seems to be the fact that investors will be able to buy existing STR's and carry on with the business.
Quote from @Dito Calderon:
Sharing another update after the planning board meeting on April 1st.
The planning board has finalized the drafts that they will take a public vote on during their April 15th meeting. This is a public forum to vote on the proposed text. This vote is whether they will send this proposal up to the county commissioners who are the only one who can actually vote something into effect.
A few key points / takeaways from my perspective:
1. The timeline is very unclear on what happens after April 22nd. It could be fast tracked or it could take 6+ months as government stuff normally does. There is no timeline or even whispers that I have heard on what this looks like.
2. All existing STRs with 2 days rented in the last year will be granted legal non-conforming status. The status of legal non-conforming will carry on with the property even through a deed transfer. They originally wanted to phase out STRs with deed transfer, but the complexity and lawsuit risk of that verbiage had them change to this. In other words, STRs can remain and can be sold to other investors in the future
3. There were some changes to the verbiage allowing STRs under certain conditions in the Open Use zoning district which was a big point of contention in previous hearings. It is still quite restrictive IMO and would not allow for many STRs but some to be added to the local market.
4. There were comments by 2-3 of the 7 planning board folks commenting on the speed of pushing this through and not understanding the relative priority or urgency of this specific topic. A few of them also mentioned that they don't really expect this to affect the housing affordability in the county, but do believe that STRs can affect the quality and integrity of the neighborhoods in the county which they want to preserve.
Here is where you can find the recording (1.5 hours) of the planning board meeting: https://fb.watch/rcVsDnzZAW/
Here is where you can find the meeting notes from that session: https://engage.buncombecounty.org/B67643
Hope that helps anyone else following along with this discussion!
Dito
any news from the April 15th meeting? want to closely follow along!
The April 15th meeting was pushed to April 22nd due to scheduling. I am still working my way through the video, but here are some key points so far.
Here is the video if you want to watch. From 9:45 to 20:30 walks through a summary of the proposal as well as options that the board has on the table. https://www.facebook.com/buncombeGov/videos/628829406107729
Here is an infographic explaining the proposal in its current state: https://www.buncombecounty.org/common/planning/calendar-file...
The planning board (who only have the power to pass a proposal on to the commissioners who would actually vote it into law) voted and agreed to hold the public hearing, yet not vote on the proposal until they have had more time to review, get focus groups together including more voices, and understand all sides of the concern. The sentiment was that STRs are a critical part of Buncombe County so they don't want to cut them off. At the same time, they have heard from communities and citizens negatively impacted from STRs and want to "protect the sanctity and right of owners and residents" in their communities.
The next working session is in May and I will keep following along and post summaries into the thread here!
@Dito Calderon. I saw on WLOS that they're saying they're going to pause for 100 days to think about the path forward. Sounds like they're considering some rethinking. Perhaps due to the threat of lawsuits.
@Mitch Davidson thanks for sharing that! I didn't see that article great to have visibility into the timeline a bit more.
@Mitch Davidson I purchased a property recently and closing in May. Is it true if I rent it out on Airbnb for at least 2 days before the 100 days are over, I should already be grandfathered in?
Hey @Amit Shukla. Buncombe County's current proposal says once the application window opens you'll be able to obtain a zoning variance, which will permit you to STR the home, and will be transferable to future owners of the home, so long as you can show some evidence that you've STR'd the property for at least 2 consecutive days in the last 180 days. The window for application won't open until what's now a draft proposal becomes law. I would guess that they'll give people a month to apply, but I'm unsure. And for the evidence, I would guess that they'll want to see some evidence of the income from the rental days. The county announced a few days ago that they will be taking the next 100 days to do some reevaluation. Things are therefore paused. And once the new rules are made law we might have further pauses for lawsuits.
I also noticed in the last hearing that they changed it to say 2 days in the last 2 years. They started at 180 days, moved to 1 year and now 2 years. Looks like they are working to find a balance of feasibility on validating that claim of 2 days and enforceability.
@Dito Calderon: Good to know. They seem to be walking back. Perhaps they'll come back with even more compromise after their sabbatical. I think the threat of lawsuits, and perhaps the realization that they're out of their league, is starting to hit home. Many of them won't be convinced by facts, such as how much revenue STR's facilitate in and around Asheville, and will continue to push debunked sentiments about affordable housing, but the threat of lawsuits might make them play nicer.
Yeah - hard to predict either way tbh. Nice to have the breathing room, and I'll def keep tracking what happens to make sure to predict this and any possible future investments!