ZONING; SHORT-TERM RENTALS                                                                                     H.B. 4722 (H-11):

                                                                                                                                                                                SUMMARY OF BILL

                                                                                                                                                REPORTED FROM COMMITTEE

House Bill 4722 (Substitute H-11 as reported without amendment)

Sponsor:   Representative Sarah L. Lightner

House Committee:   Commerce and Tourism

Senate Committee:   Regulatory Reform

CONTENT

The bill would amend Article II (Zoning Authorization and Initiation) of the Michigan Zoning Enabling Act to do the following:

 --     Specify that, for the purposes of zoning, the rental of a dwelling, including a short-term rental, would be a residential use permitted in all residential zones and would not be subject to a special use or conditional use permit or procedure.

 --     Prohibit a local unit of government from adopting or enforcing zoning ordinance that had the effect of prohibiting short-term rentals.

 --     Specify that the bill would not prohibit a zoning ordinance provision applied on a consistent basis to a rental and owner-occupied residence and that regulated noise, advertising, traffic, or another condition that could create a nuisance.

 --     Allow a local unit of government to inspect a residence for compliance with, or enforcement of, an ordinance if the ordinance met certain requirements or to collect taxes otherwise authorized by law.

 --     Allow a local unit of government to limit the number of units under common ownership that could be used for short-term rental and the total number of units used for short-term rentals in a local unit under certain conditions.

 --     Allow a local unit of government that had zoning ordinance provisions regulating the rental of dwellings by overlay districts without distinction between short-term and long-term rentals before July 11, 2019, to continue to enforce the existing ordinance.

The bill would take effect 90 days after its enactment.

Proposed MCL 125.3206b                                                                   Legislative Analyst:   Eleni Lionas

FISCAL IMPACT

The bill would have no fiscal impact on State or local government.

Date Completed:   10-10-22                                                                       Fiscal Analyst:   Ryan Bergan

This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent.