Central Oregon Association of REALTORS?
April 17, 2015

Dear COAR Member,

Please find information on the new City of Bend Short-Term Renal Code below. Over the past five months, COAR has worked with and testified before the Planning Commission and the Bend City Council to emphasize the negative effects proposed changes to the Short-Term Rental Code would have on the real estate industry. We also asked our members to provide letters to the Planning Commission on these effects. While the changes have wide-ranging impacts on the real estate industry, they do represent months worth of compromise and hours of testimony between home owners and the business community.

Please note these changes are effective immediately and short-term rental permits going forward will not transfer with the sale of a property. COAR will also be developing a seller's disclosure that will be required for all residential sales in the Bend city limits.

MEMO TO COAR MEMBERS ON BEND SHORT-TERM RENTALS - LAND USE CHANGES EFFECTIVE APRIL 16

 

BY EMERGENCY DECLARATION

 

Effective April 16 any new short term rentals in the City of Bend will require:
a.      A Type II Permit Application (this could take up to 120 days to get a permit approved).

b.      Permit will run with the owner and not with the land as it usually does.  Any sale or transfer (with limited exceptions) renders the permit void.

c.       COAR will be working on developing an addendum to the seller's disclosure.  An addendum to a seller's disclosure will be required for ALL Residential sales within the City of Bend limits, as this development code change impacts every residential tax lot within the city.  

d.      If a prospective buyer wants to apply for a permit prior to closing an application can be submitted by the owner (seller) with the buyer as the applicant.  The permit will transfer to the buyer upon closing if approved. 

e.      The following will be required to be submitted with the permit application:

                   i.      A floor plan identifying the number of bedrooms proposed for use

 ii.       A diagram and/or photo of the premises showing the number, location and dimensions of the designated on-site and abutting on-street parking spaces required (one parking space per bedroom is required and 50% of required parking can be on street if neighborhood allows parking on both sides of the street).

                    iii.      Consent to inspection of property

 

f.        EXCEPTIONS:

i.      Short-term rentals within Commercial zoning districts (CL, CG, CC, CB, CN), Mixed Use Employment zones (ME), and Mixed Use Riverfront zone (MR) within the Old Mill District boundary, shall be processed as a Type I application and shall be exempt from the concentration limits.  Still will be required to have an STR Operating License.

 ii.      STRs within Mount Bachelor Village and Courtyards at Broken Top Lots 1 through 8 and Lots 21 through 32 shall be exempt from obtaining an STR Permit, will be exempt from concentration limits, but will require an annual operating license.

iii.      Short Term Rentals that are available for rent fewer than 29 days total per year shall be processed as a Type I permit, exempt from concentration limits, but will be limited to no more than 4 rental periods per calendar year. 

iv.      Owner occupied STRs (defined as owner living on site, rents up to 2 rooms to overnight guests for a period fewer than 30 consecutive days.  Owner must be present during the overnight rental period) shall be processed as a Type I application and shall be exempt from concentration limits.  All other standards shall apply. 

 

g.      Except for the exemptions listed above there must be at least 250 feed of separation between STRs measured radially from the subject property's boundary.

 

h.      Even for those properties with "grandfathered" permits abandonment of use is grounds for losing a permit.  All STRs must provide sufficient proof that the property was rented for at least one night during a 12 month period.

 

i.        By September 1, 2015 ALL short term rentals must obtain an annual Short-Term Rental Operating License (in addition to either a Type I or Type II permit).  Failure to renew license annually is grounds for revocation, as well as failure to pay TRTs.  A third notice of an offense (noise, parting, nuisance issues) will be ground for revocation.  Revocation notices may be appealed.

 

The pertinent documents are available for review on the City of Bend website by clicking here and the Notice of Decision can be viewed here. Please contact Janet Burton with any questions you may have, janet@coar.com.