BY STEFANIE BOWMANN, Eastern Shore Post
The Cape Charles Town Council voted 5-1 to pass a long-awaited resolution creating a zoning ordinance to regulate the short-term vacation rental homes that have proliferated in the tourist town.
“We are moving away from being a family destination,” said new council member Tara Ashworth, who cast the only vote opposing the resolution on Nov. 21.
She was referring specifically to the deletion of proposed zoning text that allowed any number of children of a certain age to stay in a short-term rental, commonly called an STR.
The original proposal had placed no limit on children under age 5, and a later version extended the allowance to children under age 12.
But the town council decided to strike that line of text and opt instead for a simpler way to determine the occupancy of a short-term vacation rental: to allow two people per bedroom plus two additional guests.
Councilman Paul Grossman said the “plus two” option would allow for vacation homes with bunk beds to accommodate additional guests.
A three-bedroom home, for example, could accommodate eight guests. The maximum occupancy for a short-term vacation rental is 10.
However, the final deciding factor in maximum occupancy, as noted in the ordinance, is the town’s building code.
The building code requires a bedroom to be at least 70 square feet and provide at least 50 square feet of space per person, among other considerations.
Jeb Brady, Cape Charles’ building code official, agreed with limiting the number of occupants regardless of age.
“If you didn’t limit the amount of 12-year-olds (and) you’ve got a third-floor attic that they’ve converted into living space, they’re going to pack as many beds up there as they can and put as many children up there as they can,” he said.
If “we get a fire, it’s a major problem, and I have major concerns that we want to keep our name out of the news,” Brady said.
Grossman also introduced language that would allow a homeowner to apply for a conditional-use permit for a short-term rental with an occupancy greater than 10.
The requirements include that “the property can accommodate sufficient off-street parking, the property meets any other safety requirements … and the property does not exceed uniform building code or local building official limitations,” he said.
Ashworth wondered aloud if these changes would create a “market opportunity” for building large, “Outer Banks-style” homes with eight or nine bedrooms.
Councilman Andy Buchholz said that would be difficult because of the limited “building envelope” sizes and the bedroom square-footage requirements.
“You can only build a 4,600-square-foot house,” he said.
Councilwoman Tammy Holloway added that the conditional-use permit process would prevent a “free-for-all.”
She said building a larger home as Ashworth suggested would be possible in Bay Creek, but Town Manager John Hozey pointed out that the proposed ordinance will not impact Bay Creek, which will be addressed later.
Holloway, who owns and operates a bed-and-breakfast in town, said she advocated for permit requirements for short-term vacation rentals before she became a council member.
“I brought this up in 2017, for us to have conditional-use permits for short-term rentals, because I saw where the market was going,” she said. “We agreed as a council that we weren’t going to limit STRs. We were going to come up with guidelines, and I’m still in support of that.”
Cape Charles will allow short-term vacation rental homes in most residential and commercial areas, as well as the harbor district. However, STRs are no longer allowed by right, or without a permit of any kind.
The Cape Charles Planning Commission will issue a zoning permit for a short-term rental to any applicant who meets the requirements, which include obtaining a business license and passing a building inspection. The operator also must pay transient occupancy taxes.
Business licenses must be renewed and properties must be re-inspected annually.
Anyone who operates or wishes to operate a short-term vacation rental that accommodates more than 10 occupants must apply for a conditional-use permit.
The Cape Charles Town Council will hold a public hearing, consider input from town staff and residents, and vote to grant or deny the conditional-use permit.
STR operators can be denied zoning permits for reasons such as failing to pay business or property taxes, failing to respond to complaints as evidenced through town investigations, violating occupancy limits, or violating safety or building code requirements.
Operators of existing short-term rentals will have a one-year grace period to comply with the new regulations.
