Short Term Rentals
As evidenced by a 5-4 decision at their Feb. 28 meeting, members of the Isle of Palms Council have differing opinions on whether there should be a cap on the number of short-term rental licenses issued by the city. Council members on both sides of the question are in agreement, however, that the decision should be made in IOP and not in Columbia.
Neither Rusty Streetman, who voted against establishing a limit on the number of IOP’s shortterm rental licenses, nor Scott Pierce, who favored a cap, shed any tears over what turned out to be the short-lived demise of House Bill 3253 following a May 3 subcommittee hearing. The legislation, championed by State Rep. Lee Hewitt of Murrells Inlet, would have penalized cities, towns and counties that prohibited short-term rentals through laws, regulations or resolutions.
HB 3253 apparently died in a subcommittee chaired by State Rep. Joe Bustos on May 3, but it was resurrected by its supporters in the full House.
“When the budget came back from the Senate to the House with amendments, the pro-STR folks put a proviso in the budget to put short-term rental controls back on the table,” Bustos, chair of the House Municipal and Public Affairs Subcommittee, explained.
“I have spoken to several senators,” he added. “When it was in the Senate before, Sen. (Chip) Campsen got it removed. It may be going to a Conference Committee now. My hope is the same senators who ruled against it before are waiting for it.”
Bustos held hearings on the legislation April 26 and May 3. He said at the end of the second session, it appeared that three members opposed the measure and three supported it, which would mean it was doomed to fail.
“I asked if anyone had a motion, and no one spoke up, so I adjourned the meeting and that was that,” said Bustos, who represents the Isle of Palms, Sullivan’s Island and parts of Mount Pleasant in the State House.
“There just doesn’t seem to be any compelling reason. There wasn’t a majority who wanted it in the subcommittee,” Bustos said. “The local people know the character of their municipalities and counties. What they do reflects what their communities want. With this issue, that’s exactly where it should stay.”
Both Pierce and Streetman agreed with Bustos that the status of short-term rentals should be determined by local governments.
“The bill and amendment would have resulted in a one-size-fits-all solution, with the state assuming nearly all governance responsibility from municipalities for short-term rental regulations and ordinances that impact the fabric and balance of residential neighborhoods. Each municipality is unique,” said Pierce, who attended the May 3 hearing in Columbia. “Sen. Campsen and Rep. Bustos clearly understand this and have done an outstanding job to preserve local governance. As Folly Beach Mayor Tim Goodwin stated clearly in his testimony, this bill goes way beyond the specific issue of short-term rentals and is about protecting the democratic process of each municipality.”
Streetman, who opposed placing a cap on the number of short-term rental licenses Feb. 28, along with Council Members Blair Hahn, Kevin Popson and Jimmy Ward and Mayor Phillip Pounds, called HB 3253 “a bad bill” and pointed out that cities and counties “need to be able to make their own decision on short-term rentals.”
“This was all about home rule,” Streetman added. “What the five of us stood for was we hire a short-term rental coordinator, study the issue, monitor licensing and reserve the right as a Council to make a change if it looks like we need to.”
“It’s absolutely a home rule issue, and I’m grateful to Joe Bustos for his continued support of home rule,” Sullivan’s Island Mayor Pat O’Neil said. “The main issue is not whether you like or don’t like short-term rentals. It’s about a community regulating its own destiny, just like with any other type of business.”
Sullivan’s Island banned new short-term rentals more than two decades ago, though those that were rented in the 12 months prior to Nov. 21, 2000, were grandfathered in. According to Town Administrator Andy Benke, around “38 to 40” remain.
The Isle of Palms City Council unanimously passed a resolution opposing the implementation of HB 3253 at its April 25 meeting. At the end of the Council’s May 9 workshop, Pounds reported that the short-term rental bill was back in the House version of the budget. He said the city’s lobbyists are “confident that it will be pulled back out.”
“This was a last-minute end around that I don’t think many people in the House were happy with, but it is what it is,” he added.
