New restrictions for short-term rentals, like Airbnb, are set for the city of Ithaca.
A short-term rental includes any rental unit that’s available for 30 days or less. Hosts will also need a permit from the city to operate.
The new ordinance requires hosts to live on the property they’re renting for at least 184 days, over half of the year. That means someone could turn a guest house in their backyard into an Airbnb, but not the second home they bought on the next block.
Hosts can also rent out their entire home while they're away on vacation, as long as they’re back on the property for half of the year.
The Ithaca Common Council approved the regulations on Wednesday.
One of the primary goals of the ordinance is to address rising housing prices in the city.
First Ward Alderperson Kayla Matos voted in favor of the ordinance, which she described as a strong step towards addressing the city’s housing problems, even if it wouldn’t solve them all.
“I think we all are aware that by limiting STRs (Short Term Rentals) within our city, we're not going to decrease the price of housing,” she explained. “However, we will stabilize our housing market and create more housing stock.”
Matos said that there’s still more work to be done to increase housing affordability in Ithaca, citing the need for stronger tenants’ rights.
She also said the regulations help to preserve neighborhood communities by keeping long-term residents in the area, rather than populating homes with short-term visitors.
Matos recounted a story a constituent shared about a break-in where a family member of the homeowner was incorrectly identified as the burglar by short-term renters who called the police.
“If she had a neighbor next to her, that neighbor would have been able to differentiate between the intruder and a family member who frequently visits her,” she said.
Airbnb host Casey Carr said she believes the ordinance would preserve a sense of community in her neighborhood.
“Who do I want living next door to me? I want neighbors. Neighbors who I can borrow a cup of sugar from. Neighbors who I can invite the kids over so I can make them Halloween costumes. Somebody who will watch my cat while I’m away,” Carr said during public comment.
However, some opponents of the ordinance said the restrictions go too far and threaten the livelihoods of short-term rental owners.
Landlord and Airbnb host Anita Graf said the city should have collaborated with hosts to find a solution that works for everyone.
“My problem is that this legislation has been crafted by people who don't know and aren't in it. I think we're lacking a whole lot of evidence for it,” she said.
Fifth Ward Alderperson Margaret Fabrizio cast the lone oppositional vote.
She said she didn’t believe it would decrease housing prices and pushed for the vote to be postponed so the council could consult with stakeholders.
“I just want our government to be responsive to our constituents, to our residents who are small business owners by doing this and to understand the impact that that would have on their lives,” she said.
The rules will go into effect immediately.