Fixing STA issues

Common sense solutions offered up by local resident

It took a member of the public to clearly and concisely point out some obvious fixes when it comes to the many serious consequences resulting from the municipality’s mismanagement of short-term accommodations (STAs) in Prince Edward County, including the host of negative impacts it has had on many residents and neighbourhoods, as well as on the housing market. A deputation made by Angus Ross at last Tuesday’s virtual council meeting spoke to three interlinked issues among the top concerns regarding STAs in the County, namely, affordability and availability of long-term accommodation; STA proliferation and impacts; and the growing perception among full-time residents of actions skewed far more towards tourists and not for the benefit of tax-paying residents. He also spoke to the steps taken in other tourist municipalities that have faced similar problems to the County and provided some proposed measures to tackling the out-of-control problem.

Ross spoke to a building anger present in the County by many residents, including numerous people he has spoken with. “I have found their anger is mostly directed at overcrowding in the summer, too many STAs changing their communities and the feeling that the County they knew and loved is in danger of disappearing,” expressed Ross. He said the impacts of a shortage of long-term accommodation is affecting the community; stores and restaurants cannot find staff because there is no accommodation, noting it also hampers the ability of the municipality to attract and retain staff. While the problem cannot be fixed overnight, Ross felt there are measures that can be addressed in the short-term (two years), the medium-term (three to five years), and the longterm (over five years).

In his well-researched deputation, Ross noted examples of other Ontario tourist destinations facing similar problems to the County where palliative measures have been taken to tackle the problems, such as in Collingwood, Wasaga Beach, Niagara-on-the-Lake, Clearview, St. Catharines and Stratford. In Collingwood, for example, STAs are not allowed unless the home is approved as a bed and breakfast (B&B) and in order to be a B&B, the owner of the B&B must live in the house. “In Wasaga Beach, STAs are prohibited in all residential zones and commercial zones,” said Ross. In order to rent out an accommodation on a short-term basis, a business licence must be obtained and the property must have appropriate zoning. In Clearview, a township south of Collingwood and Wasaga Beach, which includes Stayner and Creemore, STAs must meet the requirements of a B&B. “A B&B must be occupied and conducted by a full-time resident of the dwelling, it must be an accessory use to a single detached residential use and it must not alter the residential character of the building or the neighbourhood,” Ross explained.

He further noted that in St. Catharines, the property must first and foremost operate as a full-time residence with the resident temporarily renting out the entire dwelling unit on an occasional basis. “It cannot function solely as a shortterm rental, the short-term rental must be the primary residence of the operator, the owner or the tenant,” he said. “I comment also that St. Catharines has a very innovative demerit points system for infractions and an administrative monetary penalty system.” Stratford allows STAs only in principal residences. Ross noted Tourism Stratford is considering limiting the number of available short-term rental licences and will also prevent new housing units from being licensed within four years of being built. For Niagara-onthe- Lake, a proposed change is coming on January 1, 2024 that will see STAs transition to operation from principal residences only.

Seven suggested actions the County could consider adopting in order to fix the problem brought on by a runaway system of managing STAs were presented by Ross, who began with the grandfathering of licences, something he wants to see ended. “Grandfathering created the unfair division of property values into those that had a licence and those that didn’t,” explained Ross. “Two identical houses next to each other could have a sale price difference of more than $100,000 simply because one of them had been used as an STA; this is blatantly unfair.” He further explained that “the advice that Council was given previously that you cannot refuse a licence to a legal non-conforming STA applies solely to refusal by reason of location; the STA must still meet other requirements for a licence for an STA.” His second suggestion is to permit STAs only in principal residences or three-season accommodations.

Number three on Ross’s list is to create punitive penalties for operating an unlicensed STA. With the average stay in a County STA pegged at over $500 per night, Ross notes small penalties, assuming culprits are unlikely to even be caught, is considered the cost of doing business by many. “Throw in a penalty of $25,000, they might take note,” he aid. Number four on Ross’s list of recommendations is putting a limit on the number of STA licences. He would also like a demerit system brought in (similar to that in St. Catharines). Further, if whole-home STAs are to be permitted, Ross suggests they should be taxed as commercial businesses. “It’s not a home business when the entire house is the business,” Ross stated. With respect to STA breach of bylaws, his seventh and final recommendation is to amend the enforcement process from being complaint-driven to knowledge of. “If it’s brought to the attention of bylaw officers that an STA is being used or illegally operated, that should be sufficient to warrant investigation without a formal complaint, which many people are reluctant to do.”

The result of bringing in these changes would see many of the properties purchased by investors, for the sole purpose of operating them as commercial STA, no longer able to be used as STAs by virtue of not being a principal residence. “They would either have to be brought back into the long-term rental market or sold to people who would have them as their principal residence,” stated Ross. “It would have an immediate impact on the availability of long-term accommodation in the County and that would provide some breathing space for Council to address the medium and the longer term problems.” A proposed date of implementation of January 1, 2024 was suggested by Ross for bringing in principal residence STAs.

“These actions would clearly demonstrate to residents that Council is serious in addressing the STAs and their many associated problems, and it would also help defuse the palpable anger that is currently present with many County residents.” He said, by bringing more homes onto the market and effectively eliminating the purchase of a home for an STA, it would also help to reduce the unsustainable and unaffordable increase in the price of County homes. “You have it in your power to bring about the needed changes within this term of Vouncil and I hope you will,” Ross said. The January 11 meeting is available for viewing the County’s YouTube channel (the deputation is available is part of the agenda package on the County’s website).