Homer commission backs limiting residential short-term rentals to operators' homes

Homer's Economic Development Advisory Commission voted 4-2 on Sept. 8 to recommend that short-term rentals in four residential zoning districts be allowed only at the operator's primary home. On Tuesday, it is set to finalize its advice to the City Council and discuss whether a cap on rental permits "would be practical and enforceable over time," along with a possible temporary moratorium.

The commission's draft response says the change would stop new whole-property rentals in the Rural Residential, Urban Residential, Neighborhood Flex and Residential Office districts. In a second 4-2 vote, the commission recommended that existing whole-house rentals in residential districts lose their grandfathered status when the property changes owners. To keep renting, someone would have to live there permanently. Operators would register with the city for $50 to $125.

The draft counts about 451 short-term rental listings active in city limits over the past year, a figure that includes hotel rooms, bed and breakfasts and duplicate listings. Roughly 263 could be whole-house rentals with no operator on site. Homer has 3,071 housing units, according to the 2023 American Community Survey.

The draft concludes that short-term rentals affect housing but are not a primary driver of Homer's housing problems, and that the proposed policies are unlikely to have a major effect on housing or seasonal workforce needs. It says they will likely hurt existing whole-property rentals in residential areas over the long term.

Commissioners Zubek, Noomah, Baily and Arevalo voted yes both times, according to unapproved minutes. Commissioner Young and Chair Karin Marks voted no. Young was hesitant to move forward without data on how the changes would affect operators and the broader economy, and Marks objected to including the Residential Office district.

The commission only advises. The City Council, which asked for the review in April, will decide.