Legislation from state Representative Joey Andrews to regulate short-term rentals has gotten its first committee hearing in Lansing.
Andrews testified about the package before the Local Government and Municipal Finance Committee Wednesday. He said his legislation enshrines the right of local governments to zone and restrict short-term rentals, although it doesn’t allow outright bans on the properties.
Andrews explained what happens in some communities where short-term vacation rental properties take over.
“It raises housing prices, makes it hard for people to afford housing in a lot of these communities, which means our seasonal workers who are necessary for serving our tourism industry don’t necessarily have the ability to live in the communities they’re working in anymore,” Andrews said. “And as those folks have less and less ability to live in our communities, we’re seeing our restaurants and businesses become increasingly seasonal, which then increasingly makes it a less desirable place for permanent residents to live.”
Andrews said a short-term rental registry that the legislation would create could allow communities to keep track of and respond to complaints about STRs. He added the 6% tax on STRs created by the package would also enable communities to recoup costs of having vacation rentals in town.
There to testify in favor of the legislation was a city council member from Saugatuck who said it would help pay for park improvements. Also on hand was the mayor of New Buffalo.
The legislation has the backing of the Michigan Municipal League and is being opposed by real estate groups.
