The issue of how to balance the value of short-term rentals versus their potential negative impact on a community’s neighborhoods is one that seemingly never goes away for Lakeshore cities and villages. It was center-stage again this week as the newly-elected St. Joseph City Commission considered it for the first time as a unit:
Following Michigan House passage of a bill that would limit a local government’s ability to restrict short-term rental properties in its community, St. Joseph City Commissioners have asked staff to send a letter to state officials reiterating their opposition to the plan. At Monday’s meeting, commissioners were told the short-term rental bill was rammed through the House in a late night session October 27. City Manager John Hodgson told them the bill would stop a community from being able to restrict short term rentals to fewer than 30% of the homes in town. 30% might not sound like a lot of short term rentals, but Hodgson told us it is.
“For instance, I spoke to the city managers of South Haven and New Buffalo, and they indicated that in their communities, they’re at about 13% and 15%,” Hodgson said. “So, the 30% threshold would be well above that we see in other tourist type communities in the area.”
The fear is that coastal communities will be overrun with nothing but vacation homes, gutting the communities of year-round residents if the local control ends. Hodgson said the legislation has been sent on to the state Senate. No word from the governor on what she would do with it. Hodgson will draft the letter stating the commission’s opposition.
