Ordinance 2024-38

An Ordinance of the Village of Chagrin Falls to Establish Regulations for Short-Term Rentals in the Village of Chagrin Falls (alternate version with Hosting Platform Requirements)

Whereas, the Planning and Zoning Commission, at their May 20, 2024 meeting recommended to Council to regulate short-term rental of dwellings within the Village of Chagrin Falls and to add new Chapter 1361 of the Codified Ordinances; and

Whereas, Council desires to enact new Chapter 1361 to be added to the Codified Ordinances to regulate, at present, short-term rentals, as more fully set forth in Exhibit “A” attached hereto and made a part hereof.

Now Therefore, Be It Ordained by the Council of the Village of Chagrin Falls, Cuyahoga County, State of Ohio:

Section 1. That Chapter 1361, attached hereto as Exhibit “A”, regulating short-term rentals of dwellings within the Village of Chagrin Falls, is hereby adopted and the Codified Ordinances shall be amended to add new Chapter 1361.

Section 2. The Ordinances of the Village, to the extent inconsistent with the newly enacted provisions herein regarding Chapter 1361, attached here to as Exhibit “A”, are hereby repealed, except to the extent that such Code Sections are the subject of an enforcement action they shall be considered effective for the purposes of enforcement for any violations that occur prior to repeal.

Section 3. That actions of this Council concerning and relating to the passage of this legislation were adopted in lawful meetings of this Council and that all deliberations of this Council and of any of its committees that resulted in such formal action were in compliance with all legal requirements, including Chapter 114 of the Codified Ordinances of the Village of Chagrin Falls.

Section 4. That in accordance with Section 113.01 of the Codified Ordinances of the Village of Chagrin Falls, public notice of this Ordinance shall be given by posting a copy thereof for not less than fifteen (15) days on the Village website.

Section 5. That this Ordinance shall take effect and be in force after the earliest period allowed by law.

Exhibit “A”

Chapter 1361: Short-Term Rental Regulations

Sections

1361.01   Definitions

As used in this Chapter:

  1. (a) “Short-Term Rental” means any room or dwelling that is rented wholly or partly for a fee for thirty (30) or fewer consecutive days by one or more persons other than the Owner from whom the Owner receives monetary compensation, whether such compensation is paid directly by the short-term rental guest or is collected and remitted to the permanent occupant or Owner by a hosting platform. “Short-Term-“ does not include a room in any hotel or motel, as defined elsewhere in the Codified Ordinances of the Village of Chagrin Falls.

  2. (b) “Hosting Platform” means a person or entity in whatever form or format that facilitates, through advertising or any other means, a short-term rental booking transaction for accommodations between a short-term rental Owner and short-term-rental guest, including, but not limited to, reservations and/or collection of payment for such accommodations on behalf of the short-term rental Owner.

  3. (c) “Short-Term Rental Guests” means a person or persons renting temporary lodging from a short-term rental Owner, or through a hosting platform on behalf of the short-term rental Owner, for thirty (30) or less consecutive days.

  4. (d) “Owner” means an individual(s), corporation, or partnership, limited liability company, trust, or other legal entity that has legal title to and control of a dwelling.

  5. (e) “Short-Term Rental Owner” or “Owner” means the owner and/or permanent occupant of a short-term rental who offers the short-term rental for temporary lodging.

  6. (f) “Local Agent In-Charge” is the person authorized to receive notices and make decisions in an emergency concerning a short-term rental and must be permanently located for business or reside within a thirty (30) mile radius of the borders of the Village of Chagrin Falls.

  7. (g) “Short-Term Registration” means the “short term rental registration application form”.

  8. (h) “Certificate of Rental Registration” means the certificate provided by the Village upon submission of a completed registration application form and the required fee.

  9. (i) “Dwelling” means any building or structure which is occupied or intended for occupancy in whole or in part as a home, residence, or sleeping place for one or more persons.

1361.02   Registration Required

  1. (a) Any initial registration submitted during calendar years 2024 and 2025 shall expire on December 31, 2025.

  2. (b) The Owner or Owner’s agent who engages in a short-term rental operation within the Village of Chagrin Falls shall register the dwelling where the short-term rental operation is located with the Chief Administrative Officer of the Village of Chagrin Falls on a form to be provided by the Chief Administrative Officer.

  3. (c) The registration form shall be accompanied by a One-hundred Dollar ($100.00) fee. The registration and accompanying One-hundred Dollar ($100.00) fee shall be renewed annually. In the event the initial registration is made on or after December 1, the registration shall be valid for December of that year and all of the following year. The registration renewal shall be required if the dwelling is held out for short-term rental operations. The deadline for renewal of a short-term rental registration shall be the first Monday of November of the year in which the short-term rental permit is set to expire. Failure to renew shall result in the expiration of the short-term rental registration on December 31.

  4. (d) No person, including, but not limited to, an owner, operator, manager, employee, or entity shall engage in or permit to be engaged in, conducted, or carried on, the operation of a short-term rental in or upon any premises in the Village of Chagrin Falls, without first registering the dwelling in accordance with this Chapter, and receiving a Certificate of Rental Registration from the Chief Administrative Officer. No registration shall be required until ninety (90) days after the effective date of Ordinance 2024-38 creating Chapter 1361 of the Codified Ordinances of the Village of Chagrin Falls.

  5. (e) The application for the registration shall contain at least the following information:

    1. (1) The name of the applicant, including mailing address, telephone number and email address.

    2. (2) The name(s) of the legal Owner(s) of the dwelling, including mailing address, telephone number and email address.

    3. (3) The names and addresses of any other short-term rental located in the Village of Chagrin that the applicant or property Owner has any interest in, including, but not limited to, ownership, licensure or management.

    4. (4) The maximum number of occupants that will be accommodated at the short-term rental, not to exceed two (2) per bedroom, plus three (3) additional occupants.

    5. (5) The name, address, email, and telephone number for the short-term rental operation contact information for the local agent in-charge that may be used 24 hours a day, seven days a week for any issues that may arise related to the short-term rental unit or its guests.

  6. (f) The occupant or Owner must notify the Chief Administrative Officer of any change in the information contained in the registration application within ten (10) days of the change.

  7. (g) Any change in ownership of the dwelling shall void the short-term rental registration and shall require submission and approval of a new short-term rental registration application.

  8. (h) The current short-term rental registration form must be prominently posted inside the dwelling and on any hosting platform(s) or in any other advertisement regarding the dwelling. The registration form shall be removed upon expiration.

  9. (i) The Certificate of Rental Registration shall contain a unique identifying number that will be ascertainable to hosting platforms required to maintain records of the Certificate of Rental Registration Number.

  10. (j) Issuance of a Certificate of Rental Registration shall not be construed as permission for or approval of the use of such dwelling for any occupancy that would be in violation of a lease, condominium association declaration or rules and regulations, homeowners association declarations and bylaws, the Planning and Zoning Code of the Village of Chagrin Falls and municipal, county, state and federal laws, codes, rules, regulations and orders.

1361.03   Local Agent In-Charge

  1. (a) Each short-term rental dwelling shall have a local agent in-charge assigned and the information provided to the Chief Administrative Officer and conspicuously posted within the dwelling. (i) The short-term rental Owner shall provide written notice which must be conspicuously displayed within the dwelling of: the contact information, including the telephone number, and email address of the local agent in-charge with responsibility to resolve any complaints, regarding the condition, operation and maintenance of the dwelling; (ii) police, fire, and emergency management services phone numbers serving the dwelling; and (iii) the trash and recycling collection days for the dwelling and any applicable ordinances, rules and regulations pertaining to leaving or storing trash on the exterior of the dwelling. In the event the Chief Administrative Officer is unable to contact any Owner, any notice to be provided to the Owner may be sent to the tax mailing address noted in the County Fiscal Officer’s records for such dwelling.

1361.04   Safety Requirements

  1. (a) Smoke detectors shall be provided and maintained within each sleeping area in each dwelling.

  2. (b) One or more carbon monoxide detection devices shall be installed and maintained as close to the center of the dwelling unit and within close proximity to the living area and within each sleeping area of the dwelling.

  3. (c) A fire extinguisher, located within the dwelling shall be provided and maintained.

  4. (d) Before any Certificate of Rental Registration is issued or renewed the Fire Chief, Fire Marshall, or their designee shall inspect the dwelling to verify that all safety requirements set forth in this Section are properly installed, properly maintained and operating in good condition and to verify compliance with this Chapter. The Fire Chief, Fire Marshall or their designee shall record their inspection and provide a copy to the Chief Administrative Officer prior to issuance of a Certificate of Rental Registration. The Fire Department Chief, Fire Marshall or their designee shall record and investigate any report of an alleged violation of this Chapter which is submitted to them in writing and signed by the complainant. If the Chief Administrative Officer finds that any provision(s) in this Chapter are being violated, he shall notify in writing the person responsible and/or the local agent in-charge, indicating the nature of the violation and actions necessary to correct it. Notice may be served on the Owner, permanent occupant, or local agent in-charge personally, or by certified mail and regular mail to the dwelling, or if deemed more likely to be received, at the tax mailing address for the dwelling listed in the records of the County Fiscal Officer. The Chief Administrative Officer shall offer the cessation, removal or other correction of any violation determined by the Fire Department or the Chief Administrative Officer to be continuing.

1361.05   Revocation of Registration

  1. (a) The Chief Administrative Officer may revoke a short-term rental registration if it is determined that the Owner or permanent occupant has violated any of the provisions of this Chapter; or (i) is delinquent in filing a municipal income tax return; or (2) or making a payment of municipal income taxes; or (iii) has been the subject of 2 (two) or more separate complaints to the Village and the Chief Administrative Officer has determined that a violation of any Village ordinance, or any county, state or federal law, rule or regulation has occurred; or the Owner or local agent in-charge fails to respond to a communication from the Village within Two (2) hours after receipt of the communication .

  2. (b) The violation of Subsection (a) of this Section shall result in progressive discipline:

    1. (1) Upon the first violation, the Certificate of Rental Registration shall be revoked and the short-term rental Owner prohibited from re-applying for a new registration for the dwelling six (6) months from date of termination.

    2. (2) Upon the second violation, the Certificate of Rental Registration shall be revoked and the short-term rental Owner prohibited from re-applying for a new registration for the dwelling one (1) year from the date of termination.

    3. (3) Upon the third violation, the Certificate of Rental Registration shall be revoked and the short-term rental Owner prohibited from re-applying for a new permit for the dwelling a period of five (5) years from the date of termination.

1361.06   Appeal of Denial or Revocation of Registration

  1. (a) In the event a registration has been revoked, the party affected shall have the right to appeal to the Board of Zoning Appeals from such revocation within ten (10) business days after receiving notice of the revocation.

  2. (b) The notice of appeal shall be filed with the Chief Administrative Officer on a form provided by the Chief Administrative Officer. The burden of proof of such appeal shall be upon the appellant to show that the revocation or suspension was arbitrary or unreasonable.

1361.07   Transfer of Short-Term Rental Registration Prohibited

  1. (a) No Certificate of Rental Registration required by this Chapter shall be transferable to another short-term rental operation or short-term rental Owner.

  2. (b) No Certificate of Rental Registration under this Chapter shall be transferable to another individual, corporation, firm, partnership, limited liability company, association, organization, or other group or entity acting as a unit.

1361.08   Severability

  1. (a) In the event any section or provision in this Chapter shall be declared by a court of competent jurisdiction to be invalid or unconstitutional, such decision shall not affect the validity of this Chapter as a whole or any part thereof other than the part so declared to be invalid or unconstitutional.

1361.09   Hosting Platform Requirements

  1. (a) For any short-term rental that occurs on or after May 1, 2025, it shall be unlawful for any hosting platform to receive payment, directly or indirectly, for any short-term rental located in the Village of Chagrin Falls that has not received a Certificate of Rental Registration.

  2. (b) Each hosting platform shall maintain the following information for short-term rentals they facilitate within the prior five (5) years, commencing May 1, 2025, for short term rentals on or after May 1, 2025:

    1. (1) The name of the person who offered the short-term rental;

    2. (2) The street address of the short-term rental;

    3. (3) The dates for which the short-term rental was booked by a guest;

    4. (4) The price paid by the guest for each short-term rental transaction; and

    5. (5) The Certificate of Rental Registration number.

  3. (c) A hosting platform who violates Section 1361.09 is guilty of a misdemeanor of the third degree.

  4. (d) The Chief Administrative Officer shall create and maintain an electronic verification system that a hosting platform or any person may use to: (i) verify whether a dwelling that is the subject of a short-term rental holds a currently valid Certificate of Rental Registration, the registration number, the name of the Owner and the physical address of the dwelling associated with the Certificate of Rental Registration in order for the hosting platform or any other person to be able to match the Owner and physical address information associated with the Certificate of Rental Registration number and to verify the Owner is associated with a currently valid Certificate of Rental Registration.

  5. (e) It shall be unlawful for a hosting platform to charge, collect or receive a fee from a person in connection with a short-term rental unless the hosting platform has used the Village of Chagrin Falls electronic verification system to verify that the dwelling that is the subject of a short-term rental is associated with a currently valid Certificate of Rental Registration and the Owner and physical address information provided by such person to the hosting platform match the information contained in the electronic verification system. A hosting platform shall reconfirm the active Certificate of Rental Registration for a dwelling any time it knows or should have known that any data used to complete the verification in this section has changed, and any hosting platform shall re-verify there is a currently valid Certificate of Rental Registration for each dwelling that it provides short term rental booking transactions at least every six (6) months.

  6. (f) Upon request of the Chief Administrative Officer of the Village of Chagrin Falls, or his designee, a hosting platform shall provide a report for each transaction related to a short-term rental in the Village of Chagrin Falls for the time period requested and a certification that the verification of the existence of a Certificate of Rental Registration required by this section has occurred for each transaction in their report.

1361.99   Penalty

  1. (a) The Owner or permanent occupant who is responsible for the short-term rental operation or any person who fails to comply with an order made by the Chief Administrative Officer or his designee enforcing this Chapter is guilty of a misdemeanor of the third degree.

  2. (b) Each day that such violation is committed or continues shall constitute a separate offense, commencing one day after the Chief Administrative Officer or his designee’s order is served on the Owner, permanent occupant or local agent in- charge as the case may be.