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SB 291

An Act providing for the capital budget for fiscal year 2025-2026.

2025-2026 Regular Session Introduced by Vincent Hughes

SB 291 preempts bans on short-term rentals; municipalities regulate via permits, occupancy limits, parking plans, and basic zoning rules.

Referred to Appropriations
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WeVote Research Nonpartisan
Bill Summary · SB 291

SB 291 — Regulation of Short‑Term Rentals (First Edition, 2025)

Purpose and intent

SB 291 establishes statewide limits on how municipalities may regulate short‑term rentals (STRs). The bill’s stated goals are to protect private property rights, support tourism and transitory housing (e.g., for nurses and temporary workers), and create uniform rules for STR operations across cities.

The bill includes legislative findings referencing constitutional protections for property and the General Assembly’s authority to set municipal powers.

Key provisions

  • Preemption (prohibited local actions)
    • A city may not adopt or enforce ordinances that:
    • Prohibit using residential property as an STR;
    • Prohibit accessory dwelling units (ADUs) from being used as STRs;
    • Limit the number of nights a property can be rented as an STR;
    • Require owner occupancy during STR stays;
    • Classify STRs as a commercial use (for zoning purposes); or
    • Limit the operation of STR marketplaces (platforms that facilitate bookings).

  • Permitted local regulation (cities may adopt these rules)

    • Permit requirement: Cities may require lodging operators to obtain a permit to operate an STR.
    • Revocation: permit may be revoked after five health & safety violations within a 12‑month rolling period, but the operator must be given notice, an opportunity to contest findings, and an opportunity to remedy violations before revocation.
    • Fees: one‑time permit fee up to $25; reinstatement fee up to $25.
    • Occupancy limits: as part of permitting, cities may limit occupancy to two adults per bedroom.
    • Parking: permit applications may require a parking plan providing one space per bedroom. Parking infractions are explicitly not treated as “health and safety” violations for purposes of permit revocation.
    • Zoning/location: cities may restrict STRs to residentially zoned areas and require continued compliance with residential zoning rules.
    • Code compliance: STRs must comply with existing building, housing, noise, waste removal, and parking ordinances.
    • Contract/notice: rental contracts must include applicable city ordinance text or a conspicuous summary of local rules on noise, waste, and parking.
    • Use restriction: STRs may not be used for activities beyond what hotels/motels/inns are allowed to do without the property owner’s prior written approval.
    • Local point‑of‑contact: lodging operator (or agent) must be within 50 miles of the STR while it is occupied.

  • Definitions

    • “Short‑term rental” = residential dwelling units (single‑family, condo unit, timeshare, townhome, ADU, owner‑occupied homes) offered for a fee for periods of 90 days or less. Excludes multi‑unit complexes operated like hotels by a single owner and units used for retail, restaurants, events, etc.
    • “Short‑term rental marketplace” = a platform through which a lodging operator offers an STR.

Who is affected

  • Municipal governments: their authority to impose certain prohibitions or classify STRs as commercial is limited; they retain ability to regulate via permits, codes, zoning compliance, and modest fees.
  • Property owners / lodging operators: gain clearer statewide protections to operate STRs in residential areas, subject to permitted local rules (permits, occupancy/parking, compliance).
  • STR marketplaces (platforms): protected from certain local restrictions on marketplace operation.
  • Neighbors and local communities: may see changes in how nuisances and safety issues are addressed (local permit/violation enforcement remains available, but some local prohibitions are barred).
  • Tourism, transitory workforce, and local housing markets: potential increase in available short‑term units; localized housing availability impacts will vary.

Enforcement, fees, and timeline

  • Enforcement is primarily at the city level under the limited regulatory powers retained by municipalities (permits, code enforcement, revocation after repeated violations).
  • Permit fees are capped at $25 (one‑time) and $25 for reinstatement; parking and occupancy rules are enforceable at local level (parking violations not counted toward revocation threshold).
  • The bill takes effect upon becoming law (the text: “This act is effective when it becomes law”).

Potential impacts and considerations

  • Standardizes STR rules across municipalities, reducing regulatory fragmentation and protecting property owners from local prohibitions.
  • Likely to expand or preserve STR availability (economic benefit for tourism and short‑term housing), while limiting some local tools previously used to restrict STRs.
  • Local governments retain limited enforcement mechanisms but lose authority to fully prohibit or classify STRs as commercial—this could constrain local land‑use planning and nuisance control strategies.
  • Permit fees are minimal and unlikely to generate significant local revenue; administrative costs will depend on local implementation.
  • The bill does not address private covenants or homeowners’ association (HOA) rules; those may continue to restrict STR use.

This summary highlights the principal elements of SB 291 (First Edition, 2025). For ordinance drafting or compliance planning, review the full bill text and consult municipal counsel for local implementation details and interaction with existing zoning or HOA rules.

Compiled from official sources — confirm details with the bill’s official record.

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