Short-term Accommodations

Share Short-term Accommodations on Facebook Share Short-term Accommodations on Twitter Share Short-term Accommodations on Linkedin Email Short-term Accommodations link

Project Timeline

History/Background:

  • 2018 - The municipality of Prince Edward County establishes a licensing program for Short Term Accommodations
  • September 2020 - The municipality paused the issuance of "Whole Home" STA licenses both as a result of the COVID-19 pandemic and to review the program's efficacy. No new Whole Home licence applications were processed during this pause.
  • The municipality commissioned a study of the impact that STAs and the licensing program were having on affordable housing in The County. The results of the study completed by Urban Politics and Governance research group, School of Urban Planning, McGill University are available online.

Current program review:

  • May 12, 2022 - Council passed a motion directing staff to consult with the public regarding several proposed changes to the Short Term Accommodation and Comprehensive Zoning By-Laws. Staff were directed to return with recommendations in June 2022, incorporating public feedback. The proposed changes included:
    • instituting a "natural persons" requirement for all future licenses (i.e. licences would be held by natural persons, not corporations);
    • placing a cap of zero on new licences with some exceptions for owner-occupied properties and a small number of properties that are accessible for people with disabilities;
    • updating fines for advertising without a licence or failing to post the licence number in an advertisement; and,
    • adding certain fire and life safety provisions as a condition of licensing.
  • June 2022 - This Have Your Say project page was launched with a forum for public comment on the proposed changes. Staff also received emails and phone calls directly from stakeholders and took meetings with stakeholder groups. A number of unintended consequences and legal considerations were identified during the consultation process, and staff worked to address many of these in the recommendations that were to be presented to Planning Committee (June 15) and Committee of the Whole (June 21). The public concerns focused on three key areas:
    • The legal non-confirming use rights ("grandfathering" rights) of existing STA properties established under the Provincial Planning Act, and how these rights flow from current owners to future owners in relation to the STA Licensing By-Law.
    • The distinct nature of Bed and Breakfast establishments and how these businesses are reflected in the STA licensing program.
    • The municipality's enforcement of the provisions of the STA Licensing Program and the size of penalties associated with contravening the by-law.
  • June 15, 2022 - Planning Committee - A statutory meeting was held to consider moving certain provisions from the Comprehensive Zoning By-Law to the STA Licensing By-Law where they are more appropriate. Public consultation and audience comments at the meeting reinforced the public's concern with the proposed changes. Planning Committee directed staff to return with a revised report that takes these considerations into account. Committee and staff also agreed to remove the scheduled STA Licensing By-Law report from the June 21 Committee of the Whole meeting to allow time to incorporate more public feedback into that report as well.
  • July 7 - A special meeting of Committee of the Whole was held to consider two new staff reports that attempted to address the feedback heard through public consultation and at the Planning Committee meeting. The staff reports included:
    • Explicit confirmation of the grandfathering rights of existing STAs with respect to future use of the property;
    • New definitions for Primary Residence STAs and Secondary Residence STAs (replacing "Whole Home" and "Owner Occupied,");
    • Restricting the number of days a Primary Residence STA could be rented to 180;
    • Restricting licences for Secondary Residence STAs to one per natural person; and,
    • Future exploration of options for incentivizing the creation of accessible STAs.

While the staff recommendations addressed many of the concerns from previous reports, still more concerns were identified through public comment and discussion at the Committee meeting. The matter was referred back to staff to respond to the following motion:

Motion CW-178-2022
Moved by Mayor Ferguson
Seconded by Councillor Roberts

THAT Clause 2, 3, 4, 5, and 6 be deleted and replaced with the following:

THAT staff report CSPI-19-2022 be referred to staff to investigate the following:

  • higher fines/penalties
  • stronger restrictions on unlicensed operators
  • reduce the 180-day limit for partial primary Residence STA to 45-60 days
  • allowing primary residences with secondary units to operate year round
  • flexibility for commercial properties and removing natural persons restrictions
  • removal of secondary residence STAs

THAT Council direct staff to bring back a report and revised by-law at a Special Committee of the Whole meeting prior to the August 16th Council meeting.

CARRIED

  • August 8 - A special Committee of the Whole Meeting occurred on August 8, 2022 to consider new staff reports. The reports addressed the concerns outlined in the motion above and provided options for Committee to consider. The reports can be read on the municipal website and a video recording of the meeting can be viewed on YouTube. Minutes of this meeting posted on the municipal website as part of the August 16, 2022 Council meeting agenda.

Background

“Short-term accommodations” (STAs) refers to any transient form of accommodation that is occupied for a period less than 30 days. They are typically operated out of an owner’s home, and are frequently posted on sites like AirBnB, Vrbo, etc. STAs, as defined by the County, can come in one of three forms:

  • Whole-home, where an entire property is used as an STA;
  • Owner-occupied, where the operator resides at the property but rents out all or a portion of it as an STA; and
  • Bed & Breakfast establishments, which are similar to owner-occupied STAs and must be occupied by their owners, but come with some additional requirements around food service.

Since 2018, Prince Edward County has had an STA licensing program, whereby people who want to post their properties on AirBnB, Vrbo, and other platforms for temporary rentals have to obtain a licence from the municipality to do so. This licensing process involves home inspections, providing information about the owners, operators and property, and paying licensing fees as well as collecting and remitting the Municipal Accommodations Tax (MAT). A certain number of STAs operating prior to the start of the licensing program, assuming they’ve received a licence given by the municipality, are also considered “grandfathered” and enjoy some special privileges related to the ongoing use of their property as an STA.

In September 2020, the municipality placed a moratorium on new STA licences being issued, both as a result of the COVID-19 pandemic, and to review the program’s efficacy thus far. This moratorium has been in place since then, and the review of the program has resulted in a series of changes and recommendations.

Additional materials

May 12, 2022 Committee of the Whole materials:

June 15, 2022 Planning Committee materials:

July 7, 2022 Committee of the Whole materials:

August 8, 2000 Committee of the Whole materials:

Project Timeline

History/Background:

  • 2018 - The municipality of Prince Edward County establishes a licensing program for Short Term Accommodations
  • September 2020 - The municipality paused the issuance of "Whole Home" STA licenses both as a result of the COVID-19 pandemic and to review the program's efficacy. No new Whole Home licence applications were processed during this pause.
  • The municipality commissioned a study of the impact that STAs and the licensing program were having on affordable housing in The County. The results of the study completed by Urban Politics and Governance research group, School of Urban Planning, McGill University are available online.

Current program review:

  • May 12, 2022 - Council passed a motion directing staff to consult with the public regarding several proposed changes to the Short Term Accommodation and Comprehensive Zoning By-Laws. Staff were directed to return with recommendations in June 2022, incorporating public feedback. The proposed changes included:
    • instituting a "natural persons" requirement for all future licenses (i.e. licences would be held by natural persons, not corporations);
    • placing a cap of zero on new licences with some exceptions for owner-occupied properties and a small number of properties that are accessible for people with disabilities;
    • updating fines for advertising without a licence or failing to post the licence number in an advertisement; and,
    • adding certain fire and life safety provisions as a condition of licensing.
  • June 2022 - This Have Your Say project page was launched with a forum for public comment on the proposed changes. Staff also received emails and phone calls directly from stakeholders and took meetings with stakeholder groups. A number of unintended consequences and legal considerations were identified during the consultation process, and staff worked to address many of these in the recommendations that were to be presented to Planning Committee (June 15) and Committee of the Whole (June 21). The public concerns focused on three key areas:
    • The legal non-confirming use rights ("grandfathering" rights) of existing STA properties established under the Provincial Planning Act, and how these rights flow from current owners to future owners in relation to the STA Licensing By-Law.
    • The distinct nature of Bed and Breakfast establishments and how these businesses are reflected in the STA licensing program.
    • The municipality's enforcement of the provisions of the STA Licensing Program and the size of penalties associated with contravening the by-law.
  • June 15, 2022 - Planning Committee - A statutory meeting was held to consider moving certain provisions from the Comprehensive Zoning By-Law to the STA Licensing By-Law where they are more appropriate. Public consultation and audience comments at the meeting reinforced the public's concern with the proposed changes. Planning Committee directed staff to return with a revised report that takes these considerations into account. Committee and staff also agreed to remove the scheduled STA Licensing By-Law report from the June 21 Committee of the Whole meeting to allow time to incorporate more public feedback into that report as well.
  • July 7 - A special meeting of Committee of the Whole was held to consider two new staff reports that attempted to address the feedback heard through public consultation and at the Planning Committee meeting. The staff reports included:
    • Explicit confirmation of the grandfathering rights of existing STAs with respect to future use of the property;
    • New definitions for Primary Residence STAs and Secondary Residence STAs (replacing "Whole Home" and "Owner Occupied,");
    • Restricting the number of days a Primary Residence STA could be rented to 180;
    • Restricting licences for Secondary Residence STAs to one per natural person; and,
    • Future exploration of options for incentivizing the creation of accessible STAs.

While the staff recommendations addressed many of the concerns from previous reports, still more concerns were identified through public comment and discussion at the Committee meeting. The matter was referred back to staff to respond to the following motion:

Motion CW-178-2022
Moved by Mayor Ferguson
Seconded by Councillor Roberts

THAT Clause 2, 3, 4, 5, and 6 be deleted and replaced with the following:

THAT staff report CSPI-19-2022 be referred to staff to investigate the following:

  • higher fines/penalties
  • stronger restrictions on unlicensed operators
  • reduce the 180-day limit for partial primary Residence STA to 45-60 days
  • allowing primary residences with secondary units to operate year round
  • flexibility for commercial properties and removing natural persons restrictions
  • removal of secondary residence STAs

THAT Council direct staff to bring back a report and revised by-law at a Special Committee of the Whole meeting prior to the August 16th Council meeting.

CARRIED

  • August 8 - A special Committee of the Whole Meeting occurred on August 8, 2022 to consider new staff reports. The reports addressed the concerns outlined in the motion above and provided options for Committee to consider. The reports can be read on the municipal website and a video recording of the meeting can be viewed on YouTube. Minutes of this meeting posted on the municipal website as part of the August 16, 2022 Council meeting agenda.

Background

“Short-term accommodations” (STAs) refers to any transient form of accommodation that is occupied for a period less than 30 days. They are typically operated out of an owner’s home, and are frequently posted on sites like AirBnB, Vrbo, etc. STAs, as defined by the County, can come in one of three forms:

  • Whole-home, where an entire property is used as an STA;
  • Owner-occupied, where the operator resides at the property but rents out all or a portion of it as an STA; and
  • Bed & Breakfast establishments, which are similar to owner-occupied STAs and must be occupied by their owners, but come with some additional requirements around food service.

Since 2018, Prince Edward County has had an STA licensing program, whereby people who want to post their properties on AirBnB, Vrbo, and other platforms for temporary rentals have to obtain a licence from the municipality to do so. This licensing process involves home inspections, providing information about the owners, operators and property, and paying licensing fees as well as collecting and remitting the Municipal Accommodations Tax (MAT). A certain number of STAs operating prior to the start of the licensing program, assuming they’ve received a licence given by the municipality, are also considered “grandfathered” and enjoy some special privileges related to the ongoing use of their property as an STA.

In September 2020, the municipality placed a moratorium on new STA licences being issued, both as a result of the COVID-19 pandemic, and to review the program’s efficacy thus far. This moratorium has been in place since then, and the review of the program has resulted in a series of changes and recommendations.

Additional materials

May 12, 2022 Committee of the Whole materials:

June 15, 2022 Planning Committee materials:

July 7, 2022 Committee of the Whole materials:

August 8, 2000 Committee of the Whole materials:

  • Frequently Asked Questions

    Share Frequently Asked Questions on Facebook Share Frequently Asked Questions on Twitter Share Frequently Asked Questions on Linkedin Email Frequently Asked Questions link

    Why is the program being changed?

    Last November, as part of the STA program review, Council received a commissioned study overseen by Dr. David Wachsmuth, a professor of urban planning at McGill University and a leading researcher on the impact of short-term accommodations on municipalities. Dr. Wachsmuth’s study of the PEC STA market showed, among other things, that the STA industry is highly profitable, highly concentrated among top-earners, and that while the industry is not primarily responsible for the COVID-induced price spike of STAs and housing in PEC, STAs are still “an important driver of the medium term affordability issues in the County.”

    With this in mind, Council directed staff to issue two reports on several prospective changes to the STA licensing program that the municipality operates: one on March 10, the other on May 12. Staff has recommended the above-proposed changes in order to preserve and protect the County’s present and future supply of long-term housing, while balancing that against the interests of the STA industry and other businesses that depend on it.

    What is the County doing about grandfathered STAs?

    “Grandfathering”, or “legal non-conforming”, status is protected under the provincial Planning Act, and permits property owners who were using their property in a legal manner to continue doing so should that usage become unlawful with a future Zoning By-law change. When the County introduced the STA licensing program, property owners who were previously operating STAs were permitted to continue under the provincial Planning Act, regardless of the restrictions of the municipal Zoning By-Law, as long as they obtained a licence. These owners may still enjoy privileges while holding grandfathered status (e.g. exemption from certain zoning changes, guest occupancy clauses, density requirements, etc.), which may be forfeited if they do not use their property in that manner for an extended period of time.

    As grandfathered status is found in the provincial Planning Act, rather than a municipal by-law, the municipality does not have the authority to “change” or “end” the grandfathered status of properties that possess it, though it may impose certain licence requirements upon those properties. Through public consultation, legal opinion, and the series of staff reports prepared in 2022, the municipality is attempting to define which licensing requirements and restrictions can be imposed on grandfathered properties, and which cannot.

Page last updated: 09 Sep 2022, 03:05 PM