We Need Thoughtful HomeStay/STR Policy

When NDS first proposed amendments to the homestay ordinance in late 2025 — a $500/3-year permit, mandatory pre-permit inspections, and an affidavit requirement — most of the city's 529 identified homestay operators had never been notified. Hosts, ADU owners, and neighbors organized, showed up, and asked the City to slow down and run an inclusive process before changing rules that have worked for a decade.

On March 24, 2026, NDS staff reversed course and recommended no amendments at this time, focusing instead on monitoring, permitting, and education. The Planning Commission was generally supportive. That was a real win — and it happened because operators spoke up.

The City Council work session in early May is the next decision point. Our ask now is simple: support staff's recommendation, don't retask NDS with a new round of restrictions, and keep stakeholders at the table as Charlottesville responds to the new state law on tenant-operated STRs and any future homestay conversation. The questions that drove the original pushback are still the right ones for any future ordinance work to answer:

1. What problems are we actually solving? Why do STRs require additional regulation beyond existing ordinances for noise, parking, and neighborhood conduct? The documented fire incidents in Charlottesville have occurred in traditional commercial rentals, not resident-operated STRs or homestays.

2. Why are current STR regulations not being applied equitably across all zones? We need to examine ALL short-term rental activity occurring in ALL zones. Out-of-town and local developers operating at scale are not held to the same safety or training standards, despite contributing more significantly to impacts. The playing field between resident-operators and developers in the same neighborhoods is not level, and that imbalance deserves closer examination before further restrictions are imposed. Why are resident operators—including young families—being limited for not having the ability to purchase buildings that are allowed to operate with less oversight?

3. How do STRs actually correlate with affordable housing? New York City banned most STRs in 2023—listings dropped 80%, but rents kept rising and vacancy stayed at historic lows. Meanwhile, in comparable cities, STRs represent less than 2% of housing stock. Are we solving a real problem, or creating new ones? We should explore allocating or marking taxes collected by STRs for Affordable Housing once "Affordable" has been defined.

4. How can STR regulations incentivize new housing creation? Without STR income, many residents cannot afford to build ADUs, convert basements, or rehabilitate older properties. Construction costs and interest rates have doubled. How do we ensure zoning reforms actually lead to new missing-middle housing being built? How can STR regulations help offset the costs needed to add new units of missing-middle housing?

5. Who has been consulted? The most recent city survey was based on fewer than 600 participants—less than 1.3% of the city's population. This is insufficient for policy decisions with far-reaching consequences. Meanwhile, STR and homestay operators—the people most affected—were not meaningfully notified or consulted. We need to ensure that NDS, the Planning Commission, and City Council members have adequately heard and considered perspectives from all stakeholders on this issue, not solely from individuals who submit complaints to NDS—particularly where those complaints are not formally documented or where multiple complaints may originate from the same individuals.

We support safety and responsible management. The constructive framework we want Council to keep building toward is one that:

- Encourages responsible management, ensuring that nobody infringes on the quiet enjoyment of anyone's home.

- Rather than limiting residents, explores how homestays can help the City — by enabling residents and young families to afford homeownership, supporting local tourism, and creating supplemental income and jobs for local households.

- Modernizes the STR and homestay codes in a way that is beneficial to both the City and its residents, and treats the new state law on tenant-operated STRs thoughtfully.

If safety and training measures are truly imperative, the right place to start is with the larger commercial operators — not the resident-occupied homestays that have operated safely for years.

Important for those who may not be aware: All short-term rentals — whether currently permitted or not — generate tax revenue for both the city and the state. Eliminating this revenue would require the city to offset the shortfall through increases in property taxes, meals taxes, or both, which would have a direct negative impact on local businesses and city residents.

The work isn't done. Showing up to the early-May Council work session and the summer 2026 hearings keeps the constructive path on track. Between meetings, we want to stay reachable as a group of hosts so we can rally voices when it matters and, now and then, bring our own ideas to the City rather than only reacting to theirs.