News Story

Cities Across Michigan Are Banning Airbnb — This Bill Would Stop Them

It would allow short-term rentals to be regulated but not banned

Legislation being considered in the Michigan Legislature would help homeowners who rent out their dwellings on a short-term basis by establishing in state zoning law that short-term renting is an allowable residential use of property, not a commercial one. By doing so, it would keep local governments from banning short-term rentals.

Renting out one’s home or the family cottage has been, in some case, a generations-long activity, one that has become more popular with online services such as Airbnb and VBRO. But cities and townships across Michigan have begun banning people from doing it.

While local governments could not do that anymore under the proposed law, they could still regulate these properties to the degree that they can regulate other residential uses. Specifically, they could address neighborhood concerns such as noise and traffic under nuisance laws.

House Bill 4722 is sponsored by Rep. Sarah Lightner, R-Springport, and it has 15 co-sponsors. It is certain to draw fierce opposition from local government associations, whose membership include some cities and townships that have vigorously challenged property owners’ rights to accommodate paying guests.

“There is a trend of local units (of government) to try to use zoning regulation to take away property rights,” said Brian Westrin, director of public policy and legal affairs at the Michigan Realtors Association, which supports the bill. “There are many tools they would retain to regulate reasonable use. They can have accountability. We want accountability. We want (short-term rentals) to be good neighbors. But we also want to preserve property rights.”

Crackdowns on short-term rentals have proliferated across the country in recent years as travelers sought alternatives to traditional away-from-home lodging such as hotels and motels.

Most of the conflict in Michigan has been concentrated in tourist destinations like Traverse City, Mackinaw City and New Buffalo, where local officials have sought to limit short-term rentals based on allegations of excessive noise and traffic and disruption of neighborhood tranquility.

In St. Clair Shores, a homeowner who accommodated short-term renters in a portion of his home has been battling misdemeanor criminal citations. The local government has said he is using the property for commercial activity, contrary to its ordinances.

His case, represented by attorneys from the Mackinac Center Legal Foundation, is pending before the Michigan Supreme Court.

Heather Curry is with the Goldwater Institute in Arizona, which has developed model legislation for states seeking to standardize the regulations that cover short-term rentals. Curry said the principle consideration in such regulations should be whether or not “what is happening is a normal, everyday use.”

If the activity — a small group of people or a family eating, sleeping and socializing under one roof — is indistinguishable from what is permitted in a residential area, local authorities should treat temporary occupants the same way they would treat long-term residents, Curry said.

If short-term residents are disruptive and noisy, she said, they should be sanctioned for being noisy and disruptive, not for being short-term residents.

William Lenga, a Chicago-area resident who owns a family cottage in New Buffalo that is sometimes rented out on a short-term basis, said the proposed Michigan legislation would be a good start.

But Lenga worries that even with a statewide zoning standard, local jurisdictions hostile to home rentals would step up enforcement of nuisance regulation. The could, he said, use their police power to harass property owners for alleged violations of parking, waste disposal and curfew rules.

One of the three Democratic co-sponsors of the bill, Rep. Samantha Steckloff of Farmington Hills, has removed her support, a representative of her office said. The two other Democrats listed as co-sponsors, Sara Cambensy of Marquette and Tenisha Yancey of Harper Woods, did not respond to requests for comment. Earlier legislative efforts to provide legal protection for owners of short-term rental property have failed to gain traction.

Westrin said he expects the current proposal to be taken up by the House Commerce and Tourism Committee within the next few weeks.

Michigan Capitol Confidential is the news source produced by the Mackinac Center for Public Policy. Michigan Capitol Confidential reports with a free-market news perspective.

Commentary

Metrics for Michigan: Slow Rolling to Normal

Governor’s plan may mean restrictions last far longer than those in other states

After refusing for more than a year to specify what data drove her COVID-19 policies, Gov. Gretchen Whitmer finally announced metrics that she’ll use to relax and eventually remove the state’s current restrictions on public interactions and private gatherings. Last May, for instance, she said, “There’s no textbook specific number that will tell you it is safe to reengage a particular sector of the economy.” Eventually, though, she found some.

The governor’s “Vacc to Normal” plan calls for reopening and allowing various activities based on the percentage of Michiganders 16 and older who have gotten a dose of a COVID-19 vaccine. Two weeks after meeting a threshold, certain restrictions will be lifted. At 55%, in-person work will no longer be restricted. At 60%, capacity limits will be expanded for some businesses, and all indoor capacity limits will be removed at 65%. Finally, at 70%, the state health department’s epidemic orders, which include the statewide mask mandate, will be rescinded.

While this plan provides much-needed clarity and predictability to the state’s response, it may result in Michigan being one of the last states to remove COVID-19 restrictions.

The governor’s reopening metric currently sits at 51%. It has steadily increased since vaccinations started, but the rate of increase has slowed in the last couple weeks. But even if there is no decline in the rate at which people get vaccinated, the state projects it will take until Aug. 1 to reach 70%. If vaccinations continue at a slower pace, however, the state expects to be at only 60-65% by Aug. 1. That might mean restrictions last into the fall.

Meanwhile, states all across the country are moving to lift their COVID-19 restrictions much sooner. Here’s just some of the recently announced changes other states are making:

  • Louisiana ended its statewide mask mandate on April 28, removed capacity limits on outdoor events and upped indoor capacity restrictions to 75%, or 100% if masks are worn.
  • Maryland removed its outdoor mask mandate on April 28, and all restrictions on outdoor dining ended May 1.
  • Connecticut lifted all outdoor restrictions on businesses on May 1, and all remaining business restrictions will end May 19.
  • New Jersey will end capacity restrictions on most businesses on May 19.
  • New York will similarly end most capacity restrictions on May 19 and increase social gathering limits.
  • Delaware plans to lift capacity limits for churches and most businesses on May 21.
  • Pennsylvania will remove all restrictions except its mask mandate on May 31.
  • Minnesota will end capacity limits on gatherings and businesses on May 28, and all masking requirements will end by no later than July 1.

If more states follow this lead, Michigan may find itself as one of the last states with severe restrictions in place over the summer. Several other states, of course, like Texas and Florida, did away with all of their COVID-19 regulations months ago.

It’s also possible that the state’s projections are optimistic. A vaccination effort at this scale has never been tried before in Michigan, so it is hard to know what to expect. But one thing seems likely: Increasing the vaccination rate will get progressively more difficult. It may be that the remaining people need more convincing than others to get the vaccine. And it’s possible that more than 30% of the population 16 and older will simply refuse the vaccine altogether.

Gov. Whitmer will be in a tricky position if it takes a long time to reach these vaccination thresholds, especially as the rest of the nation largely returns to normal. That will frustrate Michiganders, as will seeing all the COVID-19 numbers improve except for the one that the governor now says is the most important. In the end, Gov. Whitmer may find herself abandoning the only metric-based plan she’s ever committed to.

Michigan Capitol Confidential is the news source produced by the Mackinac Center for Public Policy. Michigan Capitol Confidential reports with a free-market news perspective.