Board: Short-term rental restrictions should be year round

The Town Board at its Tuesday work session continued to move toward drafting legislation on short term-rentals to put before the public.

The board has been debating the topic for months since reports by residents complaining of weekend renters displaying boorish, drunken behavior with all-night parties at non-owner occupied premises. The debate has since changed — as Councilman Paul Shepherd said heatedly to two residents Tuesday who were advocating limited legislation on the issue — from quality of life concerns to the “commercialization of residential neighborhoods,” with reports of property owners using their homes solely for short-term rentals.

This has been countered by many residents who point to the long-standing tradition of Islanders renting rooms or their homes on a short-term basis to vacationing families or those visiting the Island for special events. The tradition is in place because many homeowners need the extra income to make mortgage payments that allow them to continue to live on the Island, many Islanders have told the board.

To that Issue, Mr. Shepherd said, at one point Tuesday, “I’m not responsible for your financial model.”

At the work session, the board came to an agreement on a system, designed by Councilman Jim Colligan, that outlines specific lengths of stays property owners can rent their homes. For the first time in the months of discussion, the board agreed to make a short-term rental law for a full calendar year, rather than the summer season.

Mr. Colligan’s proposal would:
• allow a maximum of eight rentals a year
• allow three rentals of less than seven days a year
• allow a maximum of four seven-day rentals a year
• allow a maximum of eight 14 day rentals a year

This plan according to Mr. Colligan — and his colleagues seemed to be in agreement — would encourage renters to rent for one or two weeks, rather than shorter stays.

Resident Edward Katta told the board he was in full agreement with the board’s proposals to, in addition to other restrictions, license homeowners who rent their property, have a registry of renters, distribute a “good neighbor” brochure outlining community standards, legislate the terms of advertising and signage, ensuring there is a person on the Island who can field complaint 24 hours a day when the owner is absent and strictly enforce any new laws.

But placing limits on length of stays and how many times a year a property owner can rent is a violation of property rights, Mr. Katta said. In addition, the board is addressing a “simple problem with a long and complex solution,” he said.

As for the commercialization of residential neighborhoods, Mr. Katta pointed out that there are “businesses operating all over Shelter Island in residential neighborhoods.”

Resident Peter Humphrey told the board that he and his wife Kate occasionally rent their home to guests. He agreed with Mr. Katta, that the board could solve the problem with certain regulations, but limiting the number of times and length of stays is misguided. Mr. Humphrey also noted that there could be “potential legal pushback and nobody wants that.”

“I do,” Mr. Shepherd responded. He added he was eager to find out how a court would rule on the issue.

There are cases currently pending on municipal action on short-term rentals.

“I will not run from litigation,” Mr. Shepherd said, his voice rising. “I can’t stand that. I don’t want to be shot in the [rear end].”

Mr. Humphrey said, “I’m the last person who wants to get involved with lawyers.”

Mr. Shepherd, noting that seemingly no one wanted litigation held his arm up. “I’m just raising my hand to say one person does,” the councilman said.

Further in the discussion, Mr. Shepherd said, “we have no motivation to accommodate you. Give me a reason.”

Mr. Humphrey responded, “I’m not asking to be accommodated,” reiterating that the problem could be solved without severe restrictions on property rights.

Mr. Colligan noted that  property rights can only go so far until they infringe on the rights of neighbors and the community at large.

Sheri Cavasini, manager of the Dering Harbor Inn, spoke, as she has in the past, in favor of strict limitations on short-term rentals since it was unfair to the hotels on the Island, which are heavily regulated and taxed. Ms. Cavasini said that the Inn was off 19 percent over last year, and gave anecdotal evidence that this was due to the proliferation of short-term rentals.

Mr. Katta questioned that business loss was due to the rental of private homes, noting they were two different markets, and the overall economy played a role.

Ms. Cavasini, as she has in the past before the board, called for “a level playing field.

No public hearing on the issue has been scheduled.