Latest NC GOP attempt to deregulate Airbnbs would throw Asheville wide open to rentals

A bill that represents the latest attempt by Republican state legislators to roll back Airbnb restrictions would permit most homes in Asheville to be converted into tourist rentals.

North Carolina Senate Bill 667 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.

But otherwise, every single-family house, condominium, timeshare, townhome, accessory dwelling unit or other "dwelling unit" could be rented short-term in any part of a city "zoned for residential use," according to the bill filed April 6 by GOP Sen. Tim Moffitt of Henderson County.

The bill would also do away with a rule used by Asheville and other municipalities categorizing short-term rentals as those that span one to 30 days. The new period would be up to 90 days.

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Currently, Asheville has a ban on all new short-term vacation rentals that involve whole houses or other dwelling units. The city does allow "homestays," meaning a room rented out in a home where a long-term resident is present at the same time as guests.

The most recent version of the restrictions, approved by the City Council in 2018 and adjusted in 2022, came amid concerns over the effects of Airbnbs on sky-rocketing house prices for locals and the conversion of neighborhoods into de facto hotel districts.

Moffitt, who has sponsored legislation in the past to remove Airbnb restrictions, as well as bills to seize the city's water system and take away annexation and zoning powers, did not respond to a message seeking comment.

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He titled the bill, in part, "An Act to limit the regulation of short-term rentals by local governments to protect private property rights."

In explaining the need for the bill, Moffitt wrote that "local governments often frustrate tourism and infringe on property owners' private property rights by adopting ordinances that inhibit property owners' right to use their property as they see fit."

He also said that, aside from tourists, short-term rentals can provide housing options for transitory workers, such as "nurses, tradespeople and executives."

For years some GOP state legislators have attempted to roll back short-term vacation rental rules but did not succeed, facing opposition from both left-leaning cities and wealthy conservative towns.

Asheville Mayor Esther Manheimer said she is concerned about this latest attempt to eliminate local control over Airbnbs, "as it affects cities very differently and needs to be locally tailored."

"In Asheville, we’ve held many community meetings, convened a task force, and tweaked our ordinance several times to try to find the right balance between limiting short terms rentals while allowing folks to run a homestay out of their own home. With this legislation, the legislature would be erasing years’ worth of community work to strike this balance," Manheimer said.

The bill was sent April 10 to the Senate rules committee, a place where legislation can languish and die. But the proposal has the backing of the powerful North Carolina Realtors Association.

"We fully support SB667 from a state perspective as a reaffirmation of the rights of homeowners to decide how they want to rent their homes," said Mark Zimmerman, NC Realtors external affairs senior vice president.

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Still, support among real estate agents for all aspects of the bill is not universal.

Byron Griener, a long-time local Realtor and owner of a company with 150 short term vacation rentals, said he liked the idea of reducing regulations. But Greiner, also the past president of the Asheville Downtown Association who now lives just north of the city, called the idea of removing nearly all restrictions "extreme" and said allowing a limited number of whole house rentals made sense.

"We would certainly entertain the idea of a cap," he said. "It's a common sense approach. I'm so used to caps on rentals in almost every condominium and every Home Owners Association that I deal with. And I've dealt with hundreds of them."

Municipalities have struggled, though, to enact that type of restriction. In 2022 The N.C. Court of Appeals ruled against a lottery system Wilmington used to issue permits to those wanting to rent short term. The court said permits could no longer be required, leading Asheville to rewrite rules to rely instead on zoning.

Asked about the legality of caps, City Attorney Brad Branham said state law does not speak directly to it.

"What we know from recent court case decisions is that a municipality can prohibit this particular land use within zoning districts. That does not necessarily translate to creating a specific numerical cap," Branham said, adding "this issue has not been tested in North Carolina court as of yet."

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: Latest deregulation bill would throw Asheville wide open to Airbnbs