This chapter may be cited as the "Short Term Rental Ordinance."

(Ord. No. 22,274, § 5, 6-20-23)

Purpose of this article is to establish regulations for use of residential dwellings as bed and breakfast house/short-term rentals, establish a system to track the short-term rental inventory in the city, ensure compliance with local performance standards, provide a means of contact for the responsible party of bed and breakfast house/short-term rentals, and allow private property owners the right to fully and efficiently utilize their property without undue regulation or interference.

Definitions:

Administrative approval shall mean formal acceptance of approval by the director of planning and development, or their designee.

Bed and breakfast house/short-term rental type 1 (STR-1) shall mean an owner occupied single-family, two (2)-family or multi-family property which contains not more than nine (9) bedrooms or guest rooms, no more than one (1) of which may be located in an approved accessory dwelling, which for a fee may be occupied by a guest for no longer than twenty-nine (29) consecutive days.

Bed and breakfast house/short-term rental type 2 (STR-2) shall mean a nonowner occupied single-family, two (2)-family or multi-family property which contains not more than nine (9) bedrooms or guest rooms, which for a fee may be occupied by a guest for no longer than twenty-nine (29) consecutive days.

Contributing structure shall mean a building within a National Register Historic District that contributes to the historic character of the district, was built during the district's period of significance, and retains its appearance from that time, as determined by the Arkansas Historic Preservation Program.

Occupant shall mean the person or persons who contracts with the responsible party for use of the short-term rental.

Owner-occupied shall mean owner of the property permanently resides in the short-term rental or in the principal residential unit with which the short-term rental is associated on the same tax parcel.

Rehabilitation shall mean the act or process of making use for an existing structure through repair, alterations and additions.

Responsible party shall mean the owner of a residential dwelling being used as a short-term rental type 1 or type 2, as well as any person designated by the owner, who is responsible for compliance with this article by an occupant. The responsible party shall provide for the maintenance of the property and ensure compliance by the occupant and any guests with the provisions of this article, or any other applicable law, rule, or regulation pertaining to the use and occupancy of a short-term rental. The owner of the property shall not be relieved of responsibility or liability for noncompliance with the provisions.

(Ord. No. 22,274, § 5, 6-20-23)

(a)

Bed and breakfast house/short-term rental type 1 (STR-1) is an owner occupied single-family, two (2)-family or multi-family dwelling unit, or a unit within one thousand five hundred (1,500) feet of said dwelling, which contains not more than nine (9) bedrooms or guest rooms, no more than one (l) of which may be located in an approved accessory dwelling, which for a fee may be occupied by a guest for no longer than twenty-nine (29) consecutive days.

(1)

Bed and breakfast house/short-term rental type 1 (STR-1) are a land use allowed only where the planning commission has granted a special use permit in accordance with chapter 36, article II, section 36-54, special use permits.

a.

Business license required.

1.

Upon planning commission approval of a special use permit, the owner shall submit an application for a business license, which if said license is issued, must be renewed annually.

2.

Annual inspection fee for a STR-1 is of one hundred dollars ($100.00) per bedroom up to maximum of five hundred dollars ($500.00).

3.

The annual inspection fee would be waived for the first year if the structure is on the city's unsafe/vacant list, as determined by the housing and neighborhood programs department, and is rehabilitated for use as an STR-1.

b.

To qualify for an STR-1 permit, the owner of the property must permanently reside at the property, or must permanently reside within one thousand five hundred (1,500) feet of the property, and be a natural person or persons.

(2)

Owner-occupied status shall be confirmed by at least two (2) documents demonstrating primary residence. Documentation of primary residence address must match the deed as recorded with the Pulaski County clerk's office. Acceptable documents include: Arkansas Driver's License; State of Arkansas ID card; Pulaski County voter registration card, IRS W2 form; utility bill (dated within sixty (60) days); or bank statement (dated within sixty (60) days).

(b)

Bed and breakfast house/short-term rental type 2 (STR-2) is a non-owner occupied single-family, two (2)-family or multi-family dwelling unit which contains not more than nine (9) bedrooms or guest rooms, which for a fee may be occupied by a guest for no longer than twenty-nine (29) consecutive days. Bed and breakfast house/short-term rental type 2 (STR-2) are a land use allowed only where a planned zoning district has been approved in accordance with chapter 36, article VII, planned zoning district.

(1)

No person or entity shall advertise or operate a property for use as a bed and breakfast home/short-term rental type 2 (STR-2) without having first obtained board of director's approval of a PZD, planned zone development.

a.

Business license required.

1.

Upon the board's adoption of an ordinance for a PZD, the owner can submit application for a business license, to be renewed annually.

2.

Annual inspection fee for a STR-2 is five hundred dollars ($500.00).

3.

The annual inspection fee would be waived for the first year if the structure is on the city's unsafe/vacant list, as determined by the housing and neighborhood programs department, and is rehabilitated for use as an STR-2.

(c)

Pre-existing bed and breakfast house/short-term rental type 1 (STR-1) administrative approval for pre-existing bed and breakfast house/short-term rental type 1 (STR-1) can be granted. Within six (6) months of the passage of this ordinance, the owner must register the STR-1 with the city, demonstrate the STR-1 was in operation six (6) months prior to passage of this ordinance, demonstrate compliance with all bed and breakfast house/short-term rental type 1 (STR-1) development standards and pay a one hundred fifty dollar ($150.00) administrative review fee.

(1)

If administrative approval is granted, the applicant will be notified and an inspection will be scheduled, and a one hundred dollar ($100.00) inspection fee is to be collected.

(2)

Following payment of the administrative review and inspection fee, the operator shall obtain a business permit, to be renewed annually.

(3)

Annual inspection fee for pre-existing STR-1 is one hundred dollars ($100.00) per bedroom, up to a maximum of five hundred dollars ($500.00).

(d)

Pre-existing bed and breakfast house/short-term rental type 2 (STR-2) non-owner occupied short-term rentals (STR-2's) in operation prior to six (6) months of passage of this ordinance, which have not secured entitlement through a PZD, shall apply for a PZD with the City of Little Rock planning & development department within six (6) months following passage of this ordinance. If no application is received, and/or if the PZD application is not approved, the property shall revert to its former use status.

(e)

All bed and breakfast house/STR-1 & 2 permit holders are responsible for collecting and remitting all applicable room, occupancy, advertising & promotion tax, and sales and gross receipts taxes required by Arkansas State Law or city code.

(Ord. No. 22,274, § 5, 6-20-23)

(a)

A responsible party must be available twenty-four (24) hours per day, seven (7) days per week, for the purpose of responding to city officials within sixty (60) minutes to complaints regarding the condition of the short-term rental or the conduct of the occupant of the short-term rental and/or their guests.

(b)

A responsible party, upon notification that any occupant or guest has created any unreasonable noise or disturbance, engaged in disorderly conduct, or committed a violation of any applicable law, rule or regulation pertaining to the use and occupancy of a short-term rental, shall promptly respond in an appropriate manner within sixty (60) minutes and require an immediate halt to the conduct, and take such steps as may be necessary to prevent a recurrence of such conduct. Failure of the responsible party to respond to calls or complaints regarding the condition, operation, or conduct of an occupant or guest in a short-term rental in an appropriate manner within sixty (60) minutes shall constitute a violation of this article.

(c)

A responsible party shall provide their contact number and information to all residents adjacent to the residential dwelling being used, or will be used, as short-term rental (Type 1 or 2).

(d)

A responsible party shall post on or near the front door of the short-term rental a notice which includes the address of the rental, emergency contact numbers (including the responsible party name and contact number), maximum occupancy, and a diagram showing emergency exit route(s) approved by the Little Rock fire department.

(1)

The responsible party shall answer calls twenty-four (24) hours a day, seven (7) days a week for the duration of each short-term rental period to address problems associated with the STR.

(Ord. No. 22,274, § 5, 6-20-23)

(a)

Purpose and intent of this section is to establish development standards for bed and bed and breakfast house/short-term rentals. Compliance with these development standards shall be demonstrated by applicants requesting entitlements for STR type 1 & 2.

(1)

For STR-1 applications, compliance with these development standards shall be demonstrated and submitted as a supplement to a special use permit application.

(2)

For STR-2 applications, compliance with these development standards shall be demonstrated and submitted as a supplement to the minimum criteria required for the submittal of a planned zoning district application.

(3)

Density of short-term rentals - There shall be no more than five hundred (500) short-term rentals at any one (1) time within the corporate boundary of the City of Little Rock.

(b)

Development standards.

(1)

Hosting of private parties and special events such as weddings, receptions, and other similar gatherings is not allowed in short-term rentals.

(2)

No tours for a fee are allowed to anyone other than an occupant.

(3)

The occupancy fee may include any meal to be served to paying guests; no other meal service is permitted.

(4)

Allowable signage is that as permitted by the single-family residential standard.

(5)

Parking plan must be provided with permit application. Off-street standard for STRs shall be provided in accordance with Little Rock Arkansas Code, chapter 36, subsection 36-54(e)(1).

If on-street parking is proposed as an alternative to meet the above requirements, parking must be available for guest use within three hundred thirty (330) feet of the short-term rental and parking plan must address neighborhood impact. If the short-term rental is proposed within a design overlay district, any alternate parking requirements, as provided in Little Rock, Arkansas Rev. Code, chapter 36, zoning, article V, district regulations shall be applicable.

(6)

Applicants shall provide a scaled floor plan that includes all of the rooms available for rent with location of windows, doors, and smoke detectors identified. Smoke detectors (certified) are required in all sleeping areas, in every room in the path of the means of egress from the sleeping area to the exit, and in each story with sleeping unit, including basements.

(7)

All sleeping areas must have two (2) ways of egress, one (1) of which can be an operable window.

(8)

Proof of homeowner's, fire, hazard and liability insurance. Liability coverage shall have limits of not less than one million dollars ($ 1,000,000.00) per occurrence.

(9)

All persons operating a bed and breakfast house/short-term rental (type 1 & 2) shall meet all applicable requirements of the city of Little Rock's Municipal Code, chapter 12, fire prevention and protection, article II, Arkansas fire prevention code. Prior to use as a bed and breakfast house/short-term rental (type 1 & 2), the annual City of Little Rock, building code and fire marshal inspection fee must be paid and payment of annual business license received.

(10)

Smoke alarms shall be installed, all smoke alarms shall meet local and state standards (current fire code). Smoke alarms shall be installed in all sleeping areas and every room in the path of the means of egress from the sleeping area to the door leading from the sleeping unit.

(11)

Carbon monoxide detectors shall be installed as directed by city staff if there are fuel-fired appliances in the unit or the unit has an attached garage.

(12)

Five (5)-pound ABC-type extinguisher shall be mounted where readily accessible.

(13)

No recreational vehicles, buses, or trailers shall be visible on the street or property in conjunction with the bed and breakfast house/short-term rental use.

(14)

Principal renter shall be at least eighteen (18) years of age.

(15)

Maximum occupancy. Maximum occupancy of any room or structure as a whole shall be determined by the Arkansas fire prevention code.

(16)

Simultaneous rental to more than one (1) party under separate contracts shall not be allowed.

(17)

The owner shall not receive any compensation or remuneration to permit occupancy of a STR for a period of less than a one (1)-day rental.

(Ord. No. 22,274, § 5, 6-20-23)

(a)

It is unlawful for any responsible party to offer for rent a bed and breakfast house/short-term rental or to operate a bed and breakfast house/short-term rental without a business license. Owners shall not list a property or units online until they have received a business license, operation of an STR without a business license shall make the owner ineligible to apply for a business license for up to one (l)-year.

(b)

It is the intent of the City of Little Rock that complaints regarding bed and breakfast house/short-term rental properties be resolved according to existing state law and City of Little Rock ordinances pertaining to public nuisances, vehicles and traffic, health and safety, and public peace, morals, and welfare.

(c)

Sanctions:

(1)

In addition to any other remedy or procedure authorized by law, for three (3) or more confirmed violations of or failure to comply with any of the standards of this article in a calendar year, the director of the planning and development or his/her designee may revoke a business license and, in addition, may order that no new business license be issued for up to one (l)-year pursuant to the following procedures:

a.

Prior to the revocation of any business license or the denial of a business license for repeated violation of the provisions of this article, written notice of the reasons for such action shall be served on the owner and/or responsible party in person or by certified mail at the address on the permit application.

b.

Revocation shall become final within ten (10) days of service unless the owner and/or responsible party appeals the action. The owner and/or responsible party shall provide the appeal in writing to the director of planning & development or his/her designee within ten (10) days of receipt of the notice. The written notice of appeal must state the reasons for the appeal and the relief requested.

c.

Should the owner and/or responsible party request an appeal within the ten (10)-day period, the director of the planning & development department or his/her designee shall notify the owner and/or responsible party in writing of the time and place of the hearing.

d.

Appeals shall be heard by the board of adjustment as an administrative appeal pursuant to chapter 36, division 4, section 36-109 of the Little Rock zoning code. For good cause shown, the board may affirm or reverse the decision to revoke a business license.

e.

Once a business license for an short-term rental has been revoked, no new business license shall be issued to the applicant for the same property for a period of one (1)-year.

(Ord. No. 22,274, § 5, 6-20-23)