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This document contains revised draft

proposed regulations for short-term rentals.

This Revised Draft is the result

of careful consideration of the questions

and concerns that were raised during

the public input process on the initial

Discussion Draft published by the City

of Lincoln in January 2020.

Thank you to everyone who participated

in the first public input phase. The

responses were invaluable for

understanding the priorities of Lincoln

residents with respect to short-term

rentals.

PUBLIC PROCESS OVERVIEW

In January 2020, a Discussion Draft containing potential regulations on short-term rentals

(STRs) was released for public comment. Throughout January and February, public input on

the Discussion Draft was collected through two open houses, an online questionnaire, and by

email. This document explains the key changes that have been made to the original draft and

the reason for each change.

The estimated number of STRs operating in our area during January 2021 was between about

180 and 200 unique rentals. Of those, about 80% could be positively matched with a known

address. Most identified STRs are located in the residential zoning districts and are somewhat

concentrated in the core of the City.

SHORT-TERM RENTALS

Revised Draft Proposed Regulations

UPDATED AS OF FEBRUARY 8, 2021

Regulations would apply within the City of Lincoln and its 3-mile extraterritorial zoning jurisdiction.

Visit the website to learn more and submit comments

Go to www.lincoln.ne.gov

(search: short term rental)

There you will be able to find…

� Draft legislative changes to the Lincoln Municipal Code accompanying this Revised Draft.

� Summary of previous questionnaire responses.

� Submit comments on the Revised Draft.

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DRAFT ELEMENTS NOT PROPOSED TO CHANGE

♦ All STRs would continue to require a license approved by the Building & Safety Department regardless of the type of dwelling or the zoning district in which they are located. The life safety standards associated with obtaining the license would continue to be required for every STR.

♦ STRs would still be proposed as a conditional use under the Zoning Ordinance. However, some of the conditions to be met have been changed with this Revised Draft (detailed in the next sections). In addition, the zoning districts where STRs would be allowed has been expanded to include all zoning districts except for the I-1 through I-3 Industrial districts.

CHANGES IN THE REVISED DRAFT

Several aspects of the draft received high numbers of comments and were the focus of intensive discussion. The intention with the Revised Draft was to find compromises on key issues. Although the revised draft standards will not meet every concern for every person, the goal was to address as many comments as possible. The changes to the draft are summarized on the following pages.

The previous requirement that the STR must be the operator’s primary residence was

eliminated. In its place, a minimum spacing of 600 feet is proposed between STRs.

♦ The spacing would only apply within the R-1 through R-8 Residential, AG

Agriculture District, and AGR Agricultural Residential zoning districts.

♦ The spacing would apply differently for multi-family dwellings than for single-

and two-family dwellings.

♦ Existing operators whose STRs do not meet the 600-foot spacing could be

licensed during a brief open application period once licensing begins.

A number of comments were received on the initial draft in opposition to the primary residency

requirement. Many felt it was too restrictive for operators who want to rent dwellings other than

their home. Comments were also received in support of the requirement from neighborhood

representatives and those living near STRs who felt it was important for protecting quality of life

and reducing the potential impact of rentals.

In an effort to find a compromise, it is proposed to eliminate the primary residency requirement.

Instead, a minimum spacing standard would implemented that provides more flexibility to

operators while still protecting the neighborhood environment. The proposed spacing should

reduce the overall impact of STRs on a given neighborhood or area by limiting the number of

dwellings within that area that can be operated as STRs. Several other communities have

adopted spacing regulations including Las Vegas, Nevada; Louisville, Kentucky; and Salida,

Colorado.

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A substantial distance buffer between STRs is appropriate. A spacing standard of 600 feet was

determined and is consistent with what other communities have implemented. The open

application period discussed above would allow STRs that do not meet spacing to obtain a

license (discussed in more detail below). Considering that there will be an open application

period where STRs in any location may be allowed, it is appropriate to apply a spacing standard

to subsequent applications to limit the overall number of STRs.

The proposed 600-foot spacing is roughly equivalent to the span of 2 residential blocks in

Lincoln’s core where the blocks are 300 feet long on each side. Exhibits are provided in this

document showing examples of a 600-foot buffer applied to various types of dwellings and

neighborhoods.

One consideration that was ultimately not included in the Revised Draft was whether to treat host

- occupied rentals differently under the spacing requirement. These were not exempted because

the land use impacts of STRs are similar whether or not the host is present during the rental

period.

Would existing STRs be allowed?

There would be a four-week open application period before applying the spacing standard

once regulations are adopted and licenses are being accepted. During the four-week open

application period, operators could apply for a license and would not be required to meet

spacing. This provision is intended primarily to allow existing STRs that would not meet the

proposed spacing to be licensed.

After the four-week open application period, all new licenses must meet the spacing. If a

license issued for a STR is revoked or is not renewed, the unit may not be used again as a STR

unless it meets the spacing and all other rules, where applicable. All STRs will need to obtain a

license and meet life safety rules in order to continue operating. There will not be a grace period

for license renewals.

Where would spacing apply?

Spacing would only apply in the AG Agriculture, AGR Agricultural Residential and R-1

through R-8 Residential zoning districts. The reason for limiting the spacing standard to the

residential and agricultural districts is that STRs have the most potential to cause negative

impacts to other dwellings rather than commercial uses.

Spacing would not apply in commercial zoning districts (i.e., the O-1, O-2,

O-3, R-T, B-1, B-2, B-3, B-4, B-5, H-1, H-2, H-3, and H-4 districts). Many commercial districts

allow hotels, among other commercial land uses. The impact of STRs in those districts should

be less based on the expectations for the other land uses that could potentially locate in those

areas. Therefore, there was not a need to apply spacing in commercial areas. This would

include most of the Downtown and Haymarket.

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Spacing would apply to single family and two-family dwellings. Spacing is appropriate for

the lower density residential land uses to ensure that properties operated as STRs do not

dominate any one area, block or street.

Spacing would apply differently to multi-family dwellings (buildings with 3 or more

attached dwelling units). If a multi-family premises can meet the spacing distance to licensed

STRs around it, each multi-family premises would be allowed at least one STR, but no more than

10% of the total units on the premises could be used as STRs. Several adjacent multi-family

buildings under common ownership would be considered one premises.

• STRs within the same multi-family premises would not have to conform to spacing

internally within their own building or complex, but would still be required to meet external

spacing to other STRs in the surrounding area.

• The external spacing for the multi-family premises would be based upon the overall

perimeter boundary.

• While multi-family buildings and complexes are a different type of land use than lower

density residential uses, it was still important to ensure that STRs do not dominate any

one multi-family building or complex in residential areas and reduce potential impacts on

neighbors. For those reasons, the 10% cap was applied and the multi-family would still be

required to meet external spacing.

• A higher licensing fee may be required for multi-family dwellings due to the increased

administrative review costs.

Spacing would be measured from the property line. The decision was made to measure

between property lines rather than buildings because property line information is readily available

and building locations are subject to change. If the spacing distance of a licensed STR overlaps

any portion of a nearby parcel, then that parcel could not be used as a STR.

Accessory dwellings could be operated as STRs as long as they meet the spacing rules

listed above. If an accessory dwelling were rented as a STR, it would prohibit the main dwelling

from also being rented as a STR if the main building were within 600 feet of the accessory

dwelling.

An interactive map will be made available online showing the location of licensed STRs to

assist the public in determining where new STRs could be located.

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600-FOOT SPACING SCENARIOS

Several scenario exhibits have been prepared on the following pages to show how a 600-foot

spacing would apply to different types of dwellings and residential properties. The spacing would

be measured around the perimeter of the property line for the dwelling operated as a STR.

A red buffer line corresponding to a 600-foot distance is shown surrounding each property. If a

neighboring property is intersected at any point by the spacing line, no STR could be operated

on that property. Surrounding properties that could not meet the 600-foot spacing and therefore

could not operate a STR are shown with red shading.

NOTE: The spacing around a property would not apply to any neighboring properties zoned

commercial, even if they were within 600 feet. Spacing would only apply to properties zoned AG,

AGR, or R-1 through R-8. The spacing shown on the exhibits is for illustrative purposes and

does not account for the zoning of surrounding properties.

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SCENARIO A: Single family dwelling, zoned R-6 Residential

Properties within a radius of 1-2 standard blocks fall within the spacing.

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SCENARIO B: Duplex, zoned R-1 Residential

If one side of a duplex is operated as a STR, spacing would prohibit the other side of the duplex from being a STR.

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SCENARIO C: Attached single family dwelling, zoned R-3 Residential

Similar to a duplex, only one of the two attached units could be rented per the spacing standard.

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SCENARIO D: Standalone apartment building, zoned R-7 Residential

Properties within a radius of approximately 1-2 standard blocks fall within the spacing. There would be a 10% cap on the maximum number of STRs allowed within the building. However, every multifamily premises could have at least one STR (assuming all other requirements were met.)

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SCENARIO E: Apartment complex with multiple buildings, zoned R-3

Residential

Spacing is measured from the perimeter of the overall premises, which may include multiple lots and buildings. There would be a 10% cap on the maximum number of STRs allowed within the apartment complex.

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Beyond the spacing requirements, what other changes are being proposed?

The maximum occupancy of 2 persons per sleeping area would be retained. An overall

maximum of 12 persons per dwelling unit would be added. Several comments were

received on the proposed life safety standard of no more than 2 persons per sleeping area. This

is one of the life safety standards that would be required for every STR under the licensing

process. The other life safety standards from the Discussion Draft would also be retained.

Examples include the presence of smoke alarms, carbon monoxide detectors, and proper

egress.

A definition of “sleeping area” would be provided to clarify that sleeping areas can include other

rooms within a dwelling besides bedrooms if they meet egress standards. The 2 persons per

sleeping area would be applied as an average total for the dwelling unit overall. Sleeping areas

would not include hallways, kitchens, or bathrooms. A sleeping area must be located in a

habitable space within a dwelling that contains at least one operable emergency escape and

rescue opening (egress window). See the draft changes to Title 5 of the Lincoln Municipal Code

for details.

Up to 2 persons per sleeping area would be allowed within the dwelling, up to a maximum of 12

persons. Very few STRs in the City zoning jurisdiction are listed for over 12 persons. This

standard limits the impacts on adjacent properties by setting a cap on the appropriate number of

people within the dwelling.

The AG Agriculture, AGR Agricultural Residential, O-2 Suburban Office, and R-T

Residential Transition zoning districts were added to the list of areas where STRs would

be permitted. This change would allow STRs as a conditional use in any zoning district, except

in the industrial districts where dwellings are discouraged. The AG and AGR districts, while

characterized by larger lots and lower density than the more urban districts, still contain many

dwellings and should allow STRs. The O-2 and R-T districts are considered commercial districts;

these districts contain fewer dwellings, although the R-T district allows single- and two-family

dwellings by right.

A minimum parking requirement was re-considered but not included. A parking

requirement was not included due to the anticipated difficulty in demonstrating and enforcing a

minimum parking standard. Parking issues caused by STRs are often related to large gatherings

or parties where the STR is used as an event space rather than a residential use. This type of

unwanted use is addressed in the Revised Draft by prohibiting commercial event space under

the STR definition, the new spacing requirement, and the maximum of 12 persons per dwelling.

No signs will be allowed associated with the STR. STRs will be considered a residential use.

In accordance with that classification, signs such as those advertising the operation would be

prohibited. The sign prohibition would not apply to house numbers.

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The draft zoning definitions for “Hotel” and “Short-Term Rental” were revised to better

distinguish between the two land uses. The zoning definitions for “Hotel” and “Short-Term

Rental” would clarify that hotels are considered a commercial use whereas STRs are considered

a residential use. The STR definition would also note that they do not include accessory uses

typical of hotels such as food establishments, meeting rooms, or recreation facilities. See the

draft changes to Title 27 of the Lincoln Municipal Code for details.

A 24-hour hotline will be provided for STR complaints. Neighbors with complaints would be

directed to the hotline. The hotline would directly contact the STR license contact person on the

complainant’s behalf. The hotline operator can follow up with the complainant upon request to

determine whether their issue was properly addressed.

Contact information was added to the licensing process. As part of the license application,

operators would be required to provide the City and renters with contact information for someone

who can reach the STR within 45 minutes. This requirement will enable improved enforcement

and is an added safety measure.

NEXT STEPS

Please submit comments on the Revised Draft using the link provided on the project website.

Once community input has been received on the Revised Draft, City staff will review consider the

feedback and determine any appropriate changes. A final draft will then be made available

along with the draft legislative changes.

After the public input process, public hearings on the proposed code amendments will be held at

the Planning Commission and City Council. Anyone may testify or submit written comments in

favor or opposition to the proposed changes at the public hearings. The City Council will vote to

approve or deny the changes. The public hearing schedule will be made available once it has

been determined.

QUESTIONS?

Questions can be directed to Rachel Jones, (402) 441-7603 or

rjones@lincoln.ne.gov

Lincoln-Lancaster County Planning Department

555 S. 10th Street, Suite 213

Lincoln, NE 68508

Phone: (402) 441-7491