New Asheville area Airbnb rules? State lawmakers, county at odds; bill to nix local rules

ASHEVILLE - As local officials look to tighten restrictions on short-term vacation rentals, now numbering more than 5,000 in Buncombe County, influential state lawmakers are pushing in the opposite direction, proposing a law to strip away many existing local rules.

County commissioners in a comprehensive plan passed in May have said they want to "mitigate the loss of year-round housing to short-term rentals" through means such as restricting them to certain zoning districts. Currently, there are very few county restrictions on STVRs, though Asheville, in the face of a housing crisis, has all but banned traditional whole-house vacation rentals and Woodfin has imposed restrictions. Black Mountain is considering doing so.

Now after a Citizen Times July 3 analysis showing $229 million in annual STVR sales and 5,223 of the rentals countywide Board of Commissioners Chair Brownie Newman has described more aspects of possible new rules for unincorporated areas.

"I think the Commission remains interested in putting in place some new policies on vacation rental properties," Newman said July 3.

"(The rules) would not remove the right to operate them for current property owners who do this," Newman said, but would "help better manage it going forward."

Commissioners have also recently instructed their lobbyists to work to convince members of the Republican majority General Assembly not to stop local governments from regulating STVRs. Asheville City Council also voted to make keeping the ability to regulate a lobbying priority.

But state legislators, including a Henderson County lawmaker and the fifth-ranking member of the North Carolina Senate, are working on a bill that would frustrate that.

Senate Bill 667 was introduced by GOP Sen. Tim Moffitt April 6 and would erase Asheville's ban and disallow many new restrictions by the county or other local governments.

Similar bills to limit local government's powers over vacation rentals have failed to pass, despite a Republican majority that leans heavily into property rights. But SB667 has picked up a powerful co-sponsor in Majority Whip Tom McCinnis and continues to have support, said Moffitt, speaking July 5 to the Citizen Times.

The complexity of STVRs and the number of interests have scuttled other legislative attempts to stop local rules, he said.

Conservative Pinehurst, for example, has strictly regulated the rentals in a municipality where renting houses to golfers and golf fans was big business.

Moffitt, who owns an STVR in Gerton, an area of northeast Henderson County, said he sought to "thread the needle" with his bill.

The bill would erase Asheville's ban. Specifically, it would not allow local governments to prohibit the use of residential property for STVRs or prohibit accessory dwelling units, sometimes called "mother-in-law cottages," from being used as vacation rentals.

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SB667 would allow cities to enact some minor restrictions on short-term vacation rentals ― mandating health and safety requirements, limiting vehicles and requiring the lodging operator to be within 50 miles while the house or apartment is occupied.

He acknowledged that the rentals have an effect on housing availability and prices, "but to what extent that impact is there, I'm not sure," he said.

In terms of making housing easier to find and afford, Moffitt said he was mostly focused on the market.

"So, I think that we need to add supply to the marketplace. And then we have to look at the cost of adding that supply. Because both of those impact the overall affordability," he said.

This story has been changed to reflect revised numbers by the Buncombe County Tourism Development Authority. A Citizen Times analysis of TDA data originally showed 10,187 short-term rentals in the county in 2022. The TDA now says the correct number is 5,223.

Joel Burgess has lived in WNC for more than 20 years, covering politics, government, and other news. He's written award-winning stories on topics ranging from gerrymandering to police use of force. Got a tip? Contact Burgess at jburgess@citizentimes.com, 828-713-1095, or on Twitter @AVLreporter. Please help support this type of journalism with a subscription to the Citizen Times.

This article originally appeared on Asheville Citizen Times: New Asheville area Airbnb rules? NC lawmakers, county at odds