COEUR d’ALENE — The city of Coeur d’Alene is considering stronger laws to better regulate the rise in short-term rentals, including civil penalties, and the city may hire a company to enforce those laws.

The General Services/Public Works Committee will take up the matter at its noon meeting Monday in the Library Community Room.

Community Planning Director Hilary Anderson, Municipal Services Director Renata McLeod, City Attorney Randy Adams and Senior Planner Sean Holm are expected to outline possible amendments to the Short-Term Rental Ordinance to the committee.

According to a staff report, reasons for amending the code include:

• A well-documented housing crisis
• A lack of available for-rent and for-sale housing units throughout Kootenai County that is severely impacting many local businesses and major employers related to retaining and recruiting employees,
• The strain on the residential long-term rental market by having a significant number of short-term rentals that are not available for long-term rentals,
• The growing number of short-term rentals in the community, the high number of unpermitted short-term rental units, and complaints from residents about the high concentration of short-term rentals in certain neighborhoods impacting their quality of life and integrity of neighborhoods.

The rise in housing costs in Coeur d’Alene and surrounding areas over the past few years is blamed for driving away blue-collar workers, who can no longer afford to live here.

Many long-term rental properties, and single-family homes are being purchased and turned into short-term rentals that are most often occupied by tourists.

Many new properties now include garages with additional dwelling units for the purposes of short-term rentals.

That in turn has impacted local businesses, which struggle to fill positions despite offering substantial pay increases.

Idaho, a state that is big on private property rights, approved a law in 2017 with the purpose of prohibiting a city or county from enacting or enforcing an ordinance "that has the express or practical effect of prohibiting short-term rentals or vacation rentals.”

It granted the authority for a jurisdiction to implement “reasonable regulations as it deems necessary to safeguard the public health, safety and general welfare in order to protect the integrity of residential neighborhoods in which short-term rentals or vacation rentals operate.”

The city of Coeur d’Alene adopted the existing Short-Term Rental Ordinance in 2017.

But changes could be coming to it.

According to an analysis done by Host Compliance, a short-term rental compliance company, in August 2021 there were 645 unique short-term rental units in Coeur d’Alene.

As of August 2021, the city had 228 permitted short-term rentals. Today, it has 380 permitted short-term rentals. Of those permit holders, 184 have a homeowner’s exemption, which equates to 48% of the permits belonging to locals who live on the property where the short-term rental is located, the staff report said.

The city has had a 32% increase in short-term rental permits in 10 months.

Potential amendments the committee could consider include:

• Limiting short-term rentals to owner-occupied properties within residential zones

• Requiring a minimum two-night stay

• Removing the 14-day exemption

• Clarifying what qualifies as a residential unit for short-term rentals

• Increasing the violation fees. First offense is treated as a civil penalty. Subsequent offenses are subject to a civil penalty of $3,000. Violators would also be subject to a misdemeanor citation which carries a fine of up to $1,000 and/or imprisonment up to 180 days.

It may also look at a "two-strike" rule.

"Only allow two violations," the report said. "If a third violation, the permit should be revoked and the owner is not eligible for an short-term rental permit again for 3-plus years."

The staff report said, “It is imperative to hire a short-term rental compliance company to assist with strict enforcement as there is not enough staffing capacity in Municipal Services, Planning or Police to keep up on any strict enforcement, checking rental sites and enforcing violations and collections.”