The Newport City Council voted at their Regular Council Meeting on Wednesday (May 14) to request ordinance changes that would prohibit all new non-owner-occupied short-term rentals in the city.
The resolution, which passed with a 4-3 vote, directs the city administration and solicitors to present a plan, including ordinance changes and administrative policies, by the next regular meeting.
Councilors Khamsyvoravong, Carlin, Smyth, and Pinnock vote in favor of the resolution, while Council Chair Holder, Vice Chair Ceglie, and Councilor Napolitano oppose it.
The resolution addresses growing concerns about housing availability and affordability in Newport, stating that “an environment has been created throughout several years where so-called middle income and workforce housing has become and continues to be, increasingly unattainable, driving many long-term, year-round residents out of the city.”
The council identifies non-owner-occupied short-term rentals as “a significant factor contributing to Newport’s lack of available housing stock for potential year-round renters, as well as a major component affecting affordability for potential home buyers whose intent is to be year-round residents.”
The resolution also notes that short-term rentals contribute to “parking related concerns in the city.”
Recent changes to Rhode Island state law governing zoning allow for commercial and industrial buildings to be repurposed for residential use. The council expresses concern that this creates “a path for a potential considerable expansion of non-owner-occupied short term rental units within Newport,” which could further exacerbate housing and parking issues.
The resolution states that it “does not believe that changes in state law mentioned above, which stated goals at the time of enactment (among others) was to provide for the potential creation of additional housing opportunities, would be consistent with said goal should the repurposing of commercial and industrial buildings for residential use, subsequently be converted to short term rental units.”
The resolution directs the city administration and solicitors to present a plan that includes ordinance changes and administrative policies to prohibit all new non-owner occupied short-term rentals within Newport. Owner occupancy would be verified “in a manner similar to that included in local ordinance(s) concerning classification as a full time city resident for purposes of the city’s two-tiered residential real estate tax program.”
Additionally, the resolution instructs the city administration and solicitors to “take all necessary measures, including if necessary but not limited to, advertising of said proposed ordinance changes, review by necessary bodies and compliance with underlying state zoning law requirements concerning proposed municipal changes to zoning ordinances.”
