Further regulations

Changes to STAs to apply to new licences

Short-term accommodations (STAs) and the way they are regulated may be changing in Prince Edward County. While it will not affect existing licensed STAs, the proposed changes will affect all newly licensed STAs in effort to bring some control to the large number of short-term accommodations in the County. A staff report presented at last Thursday’s Committee of the Whole meeting saw Councillor Kate MacNaughton bring forward several detailed amendments to staff’s STA bylaw recommendations. No overview was presented by staff on their report, which several councillors felt didn’t go quite far enough.

In summary, MacNaughton’s amendment, if approved, would restrict licence holders to a cap of one whole-home STA licence per individual (with exceptions for current existent multiple whole-home licence holders). It would also restrict future licences to natural persons only. MacNaughton noted there were some very positive developments in the proposals presented by staff. “Some of the options that staff have chosen not to recommend are options that I would like to see Council move forward with, so we can look to shift the program to something that is easier to access if you were a resident,” said Mac- Naughton.

The recommendation would explore and establish a cap of zero for the whole-home STA program (seasonal cottages and cabins, and grandfathered uses exempted). MacNaughton’s motion further exempts limited access for primary residences in all residential and rural zones, up to a maximum of 75 days (exact number to be determined), as well as fully accessible units. The motion also recommends restricting future licences to properties that are primary residences, and investigate a reduced cost and regulatory requirement option to provide access to casual participation in the whole-home program to up 14 days a year.

Two deputations from the Licensed Short-Term Accommodators (LSTA) of Prince Edward County were heard, along with three comments by members of the public. Mike Amos with the LSTA suggested the number of licensed STAs should not be reduced going forward. He said there were two options that could be taken. “We stay the course and limit the number of STAs to those currently licensed, and let current STA licence holders have grandfathered status,” said Amos. He also wanted enforcement proactively pursued for those cheating the system. “We must attract commercial accommodators if you want tourism to continue to grow, which we seem to really struggle with, and enact an effective affordable housing strategy.” Amos said the alternative was to come up with a new plan and a new vision. “In that scenario, we will need to plan to assist all the people that will lose their jobs, all the businesses that will fail, and risk retrenching back to where we were in 1995.”

The staff report recommends certain provisions be removed from the comprehensive zoning bylaw to be placed into the Short Term Accommodation Licensing bylaw, and allow STAs to operate in all types of R3 and R4 zones.

The report also recommended changes to make the display of Short Term Accommodation licence numbers mandatory on any advertisement for a STA in Prince Edward County, and require stronger evidence of ‘legal non-conforming use’ that owners operated as a STA in the form of a signed affidavit. Further, the report recommends the use of a Cost Acknowledgement Agreement in appeals process in order to recuperate the cost of staff time and create a formal appeal process. Reducing the length of time in which STA owners can be in breach of STA and other municipal bylaws related to operating a STA would change from three notices in six months, to two notices in four months.

“To put in simple terms, this would have no impact on those who currently have a STA licence; it’s not looking backwards, it’s essentially looking forwards,” explained Councillor John Hirsch. “It is intended to make some exceptions for the cottage industry; it’s intended to make an exception for folks who want to rent out their homes for a couple of weeks a year when they are away.” He said in essence, it could be capping future whole-home STA creations and leaving the number the same. “The LSTA basic goal was to leave us where we are now; Councillor MacNaughton’s motion does that.”

Councillor Jamie Forrester asked for an explanation on what a natural person was, where MacNaughton said corporations would not be able to purchase further properties and use them in the program. “STAs in the future will have to be purchased and owned and operated by a human, not a corporation, so no numbered companies,” said MacNaughton. Forrester had a problem with that. “It’s just not how the way business is done, I have a problem limiting that,” he said. Councillor Phil St-Jean said he shared similar concerns to Councillor Forrester. “Corporations would not be jumping in and buying three, four, seven, 10, 12 houses in our community,” said St-Jean. “I think we should restrict to natural persons only, but concern with that is are we increasing the value of that commodity because nobody can have one because when you make something rare, you inherently increase the value of it.” Councillor Stewart Bailey chimed in saying, “I can’t see a numbered company owning a principal residence.”

In her deputation, Davelle Morrison, President and Chair of LSTA said, “I think we can all agree that we have a housing crisis, but whose responsibility is it to fix the crisis—private individuals or the government? she asked. “It feels as if we have spent a lot of time blaming STAs for a problem that even if you cancelled us, you wouldn’t solve it.” Amos added, “At this juncture, reducing STAs in any way, shape or form is short-sighted, foolhardy and will only serve to hurt the very people we are trying to help.” Staff will bring a further report back to council by May 22, to be followed by public consultation before Council makes a final decision. The March 10 committee of the whole meeting is available for viewing on the County’s YouTube channel at bit.ly/LiveStreamPEC.