(The Center Square) – In a nighttime session, Michigan House voted 55 to 48 to pass a bill to ban local governments from banning short-term rentals.
Internal invoice (HB) 4722 says short-term rental properties cannot be banned, subject to a conditional use permit, or be considered commercial property. Local governments can limit the percentage of short-term rentals to 30% of units within their boundaries.
Under the bill, governments can limit a person to renting two short-term rental properties. Additionally, a tenant can only rent a property short term for 30 consecutive days.
State Representative, sponsor of the bill, Sarah Lightner, R-Springport, welcomed the move, saying some communities have banned short-term rentals altogether over concerns over private property rights of Michigander.
“The solution I have proposed ends these prohibitions while creating consistency and restoring the rights of Michigan families, so they can confidently invest in a home without worrying about whether they will lose any way. unexpectedly the option of renting this home if they wish, âLightner said in a statement. âIt also addresses the need for communities to be able to act when large corporations take over a large number of rental units, effectively acting like hotels without having to comply with safety standards or pay taxes like hotels. This will give our local municipalities the flexibility to regulate the industry in a very reasonable way that suits their community. “
Opponents of the bill have argued that local communities need the power to shut down problematic party house rentals, but supporters say city police powers can fix the problem.
Michigan Municipal League CEO and executive director Dan Gilmartin opposed the bill.
“The post-midnight vote by the Michigan House of Representatives to pass Bill 4722 is an attack on the families and communities they call home,” Gilmartin said in a statement. âFor months, community leaders and their coalition partners across the state have proposed compromise legislation on short-term rental bills that would allow appropriate and safe rental housing throughout Michigan. The bill passed in the dark hours of Wednesday morning ignores those solutions and instead opens the floodgates to unregulated commercial-style rental units in every block of every community in our state. Who benefits from the commercial interests by gaining full access to our residential homes for short term income generating rentals? Business investors, out-of-town business interests, and real estate brokers. Who loses ? You and your community.
Michigan Restaurant & Lodging Association president and CEO Justin Winslow said the package would hurt Michigan’s hotel industry, already weakened by the COVID-19 pandemic.
âBill 4722 is not a thoughtful solution to a complicated problem that must balance home security, fair competition and property rights – it is a document deaf to companies mostly outside the United States. State that will erode neighborhoods, increase crime and cost jobs, âWinslow said in a statement. âThe Michigans know it intuitively, that’s why 70 percent of voters oppose legislation to take away local governments’ power to control short-term rentals and 79% think they should be taxed the same way as hotels. We all deserve better than this and this opportunity still exists in the Senate. “
Winslow cited a survey earlier this year who found:
- 89% of voters fear that removing local control over short-term rentals will lead to higher housing costs, more crime and less housing for residents
- 79% of voters say local city, township or county government should make rules and regulations
- 74% of voters say local communities should be allowed to make their own rules because each is different and may want different things
The bill now goes to the Senate.