Short Term Rental Permit Lotteries (DSP Rule 23-01)

Rules and Regulations of Short Term Rental Permit Lotteries

Promulgated Pursuant to City Code 2-1000 and 26-617(g)

A. Introduction

Pursuant to Section 26-617(g) of the City Code, Non-Commercial Short Term Rental Permits (NSTR) will be distributed via lottery. These Rules and Regulations establish the lottery process. These Rules and Regulations shall become effective on July 1, 2023.

B. Applications

Applications for NSTR permits will only be acceptped during the specified application periods in the calendar attached as Exhibit A. Only complete applications, including payment of the application fee, will be eligible for the lottery process.

C. Lottery

Lotteries will be held on a per-square basis, meaning that lotteries will only be held for squares where more than one complete NSTR application has been submitted. If there are not more applicants than available permits for a square, or if there is already a bed and breakfast located on a square, no lottery shall be held for that square.

D. Lottery Frequency

Lotteries will be held quarterly. The Department will annually publish a calendar with application period, lottery, and renewal period dates. The first year of the lottery prpogram shall follow the schedule attached hereto as Exhibit A.

E. Communications Related to the Lottery

Before the application period, the Department will publish information on the Announcements section of this website and to its STR Email Listserv. Once the application period has commenced, communication with permit applicants will be conducted via email. The Department will communicate with the applicant using the email address provided in the respective application.

F. Lottery Procedures

Lotteries will be live-streamed via Zoom, YouTube, and/or other similar technology. Lotteries will utilize a bingo or other comparable machine to ensure fairness. Permit numbers will be drawn in order, so that if there are three applicants for a square, there wil be a "first", "second", and "third". This order will only apply if there is non-payment of the permit fees. If the permit is lost for any other reason—forfeiture (a permittee sells, moves, or doesn't want to continue to short term rent the property), non-renewal, revocation, or rescission—unsuccessful permittees may apply for the next quarterly lottery.

Permittees selected in the lottery will be issued a permit upon payment of all fees. All fees must be paid within five (5) calendar days, or the selected permittee forfeits their right to the permit. If the first selected permittee forfeits their right, the second selected permittee will have five days to pay their fees (and so on). Unsuccessful permittees may reapply for the following lottery if the block is reopened for any reason or may apply to the City Planning Commission to participate in the special exception process. An overview of this process is included in Exhibit B of these Rules and Regulations.

G. Permit Duration

Permits will be vaild until June 30 of the following year, regardless of which lottery they are issued during. Permit fees for the first permit year will be prorated as follows:

  • July lottery winners: Full fees
  • October lottery winners: 75% fees
  • January lottery winners: 50% fees
  • April lottery winners: 25% fees

H. Renewals

Permitholders who remain in good standing with the Department of Safety and Permits will be eligible to apply for renewal of their permits. This requires:

  1. A complete application;
  2. Permittees to apply within the designated renewal period provided in the annual calendar;
  3. Payment of permit fees within five (5) calendar days of application approval;
  4. A valid operator license;
  5. Proof of completion of a short-term rental course to be provided by the Department;
  6. Satisfaction of all judgments, liens, fines, and fees related to the property;
  7. Resalution of any electrical, mechanical, or work without permit violations; and
  8. Closure of all open building permits or written approval of the Chief Building Official for renewal despite the open permit.

Permit holders whose permits have been revoked or rescinded are not eligible for renewal. If a permit holder fails to renew timely, the square will be eligible for participation in the next quarterly lottery.