By Laveen Village Community Phoenix, AZ – In a significant development, the City of Phoenix Council has recently enacted long-anticipated regulations concerning short-term rentals, including platforms like Airbnb. This marks a shift from the previous registration process, where property owners were required to maintain lists, to a licensing system managed by the city.
In parallel with these changes, the city has also made the decision to legalize Accessory Dwelling Units (ADUs), encompassing guesthouses, casitas, and similar structures, across most of Phoenix.
If you're a property owner in Phoenix currently using short-term rentals to generate supplemental income, it's essential to be aware of the new licensing requirements imposed by the city. The ordinance is scheduled to take effect on January 15, 2024, with the licensing process commencing in late October.
Key provisions of the new regulations include:
However, notable limitations persist due to Arizona state law, which supersedes city ordinances and restricts the extent of regulations that cities can impose on short-term rentals. Council members, including Councilwoman Debra Stark, have expressed concerns in previous meetings about the potential dominance of short-term rentals over ADUs and have called for more authority to be granted to local governments.
Councilman Jim Waring also highlighted the constraints imposed by state law and urged the city to explore avenues for further regulation of short-term rentals. While the council recognizes the need for stricter regulations, current state law preempts comprehensive control over these businesses.
One key issue of concern is the lack of a robust mechanism for license revocation or suspension for short-term rental operators. Under the new ordinance, license revocation can occur in two situations:
Deputy City Manager Alan Stephenson clarified that a single complaint can take up to 4 – 6 months to process through city courts, potentially hindering the viability of accumulating three valid complaints within a year. This has raised questions within the community about the practical enforceability of these regulations.
Looking ahead, the city council has tasked its staff with devising a system to monitor and enforce the new rules consistently across registered and licensed short-term rentals within the city.
By Laveen Village Community Phoenix, AZ — In a 7-2 vote, the Phoenix City Council has approved an increase in water rates, set to take effect in October. The decision is driven by the aim to address inflation concerns and encourage responsible water usage in the city. The rate adjustments will be implemented progressively, with an initial 6.5% increase in October (equivalent to approximately an additional two dollars per month for the average user). This will be followed by another 6.5% hike in March 2024 and a more substantial 13% increase scheduled for March 2025.
Alongside these rate hikes, the city of Phoenix is taking steps to conserve water resources by imposing limits on water consumption for both businesses and residents. Currently, customers are allowed a monthly allocation of around 7,500 gallons during the summer months. However, starting in the summer of 2024, this allocation will be reduced to 6,000 gallons per month. Those exceeding this limit will incur an additional charge of $4 per month, effective from October. Furthermore, wastewater service rates will also see increases.
The majority of attendees at the City Council meeting expressed their support for the rate adjustments, emphasizing the significance of ensuring long-term water availability and affordability. However, concerns were raised about the potential short-term financial challenges faced by families amid rising inflation.
Merissa Hamilton, a concerned resident, commented on the punitive nature of water consumption penalties, suggesting the city explore alternative approaches to water conservation.
In response, Phoenix Water Services Director Troy Hayes highlighted a unique aspect of the city's rate structure, where water is included in the base fee, making it more affordable for those who are conscientious about water usage. He acknowledged that the rate changes could pose challenges for lower-income households and noted that the city is expanding eligibility for its assistance programs to address this concern.
The decision to increase water rates aligns with efforts to address the water shortage on the Colorado River, prompting cities in the Phoenix area to adopt drought-contingency plans and take proactive measures to manage water resources effectively.