§ 25-2-791. LICENSE REQUIREMENTS.

(A)

This section applies to a license required under Section 25-2-788 ( Short-Term Rental (Type 1) Regulations ), Section 25-2-789 ( Short-Term Rental (Type 2) Regulations ), and Section 25-2-790 ( Short-Term Rental (Type 3) Regulations ).

(B)

To obtain a license, the owner of a short-term rental use must submit an application on a form approved by the director. The application must include the following:

(1)

a certification by the property owner and, if applicable, property manager that the property is not subject to outstanding City Code or state law violations;

(2)

the name, street address, mailing address, and telephone number of the owner of the property;

(3)

the name, street address, mailing address, and telephone number of the local contact required by Section 25-2-796 ( Local Contacts );

(4)

the street address of the short-term rental use;

(5)

proof of property insurance;

(6)

proof of payment of hotel occupancy taxes due as of the date of submission of the application; and

(7)

any other information requested by the director.

(C)

Except as provided in subsection (G), the director shall issue a license under this section if:

(1)

the application includes all information required under Subsection (B) of this section;

(2)

the proposed short-term rental use complies with the requirements of Section 25-2-788 ( Short-Term Rental (Type 1) Regulations ), Section 25-2-789 ( Short-Term Rental (Type 2) Regulations ), or Section 25-2-790 ( Short-Term Rental (Type 3) Regulations );

(3)

for a short-term rental use regulated under Section 25-2-789 ( Short-Term Rental (Type 2) Regulations ), no more than 3% of the single-family, detached residential units within the census tract of the property are short-term rental (including Type 2 and Type 1 second dwelling unit or secondary apartment) uses as determined by the Director under Section 25-2-793 ( Determination of Short-Term Rental Density ); and

(a)

the structure has a valid certificate of occupancy or compliance, as required by Chapter 25-1, Article 9 ( Certificates of Compliance and Occupancy ), issued no more than ten years before the date the application is submitted to the director; or

(b)

the structure has been determined by the building official not to pose a hazard to life, health, or public safety, based on a minimum life-safety inspection;

(4)

for a short-term rental use regulated under Section 25-2-790 ( Short- Term Rental (Type 3) Regulations ), located in a non-commercial zoning district, no more than 3% of the total number of dwelling units at the property and no more than 3% of the total number of dwelling units located within any building or detached structure at the property are short-term rental (Type 3) uses as determined by the Director under Section 25-2-793 ( Determination of Short-Term Rental Density ); and

(a)

the structure and the dwelling unit at issue have a valid certificate of occupancy or compliance, as required by Chapter 25-1, Article 9 ( Certificates of Compliance and Occupancy ), issued no more than ten years before the date the application is submitted to the director; or

(b)

the structure and the dwelling unit at issue have been determined by the building official not to pose a hazard to life, health, or public safety, based on a minimum life-safety inspection;

(5)

for a short-term rental use regulated under Section 25-2-790 ( Short- Term Rental (Type 3) Regulations ), located in a commercial zoning district, no more than 25% of the total number of dwelling units at the property and no more than 25% of the total number of dwelling units located within any building or detached structure at the property are short-term rental (Type 3) uses as determined by the Director under Section 25-2-793 ( Determination of Short-Term Rental Density ); and

(a)

the structure and the dwelling unit at issue have a valid certificate of occupancy or compliance, as required by Chapter 25-1, Article 9 ( Certificates of Compliance and Occupancy ), issued no more than ten years before the date the application is submitted to the director; or

(b)

the structure and the dwelling unit at issue have been determined by the building official not to pose a hazard to life, health, or public safety, based on a minimum life-safety inspection;

(6)

if applicable, the Austin Water Utility determines the septic system complies with Chapter 15-5 ( Private Sewage Facilities );

(7)

the property is not subject to outstanding City Code or state law violations;

(8)

the owner pays the fee established by separate ordinance;

(9)

the owner does not meet the standards described in Section 25-2-797 ( Repeat Offenses ); and

(10)

if applicable, the owner pays the fee required by Section 25-2-798 ( Non-Compliance Fees ).

(D)

A license issued under this section:

(1)

is valid for a maximum of one year from the date of issuance, subject to a one-time extension of 30 days at the discretion of the director;

(2)

may not be transferred by the property owner listed on the application and does not convey with a sale or transfer of the property; and

(3)

satisfies the requirement for a change of use permit from residential to short-term rental use.

(E)

Except as otherwise provided in Subsection (F), a license may be renewed annually if:

(1)

the licensee pays a renewal fee established by separate ordinance;

(2)

the licensee provides documentation showing that hotel occupancy taxes have been paid for the licensed unit as required by Section 11-2-4 ( Quarterly Reports; Payments ) for the previous year;

(3)

the licensee provides updates of any changes to the information required under Subsection (B) of this section;

(4)

the property is not subject to outstanding City Code or state law violations;

(5)

the licensee or operator does not meet the standards described in Section 25-2-797 ( Repeat Offenses );

(6)

if applicable, the structure is determined by the building official not to pose a hazard to life, health, or public safety; and

(7)

if applicable, the owner pays the fee required by Section 25-2-798 ( Non-Compliance Fees ).

(F)

The director may deny an application to renew a license if, on to the date the renewal application was submitted, the license for a short-term rental was suspended as authorized under Section 1307 ( License Suspension ) of Section 25-12-213 ( Local Amendments to the International Property Maintenance Code ).

(G)

After November 23, 2015, the director may not issue a license to operate a short-term rental use described in Section 25-2-789 ( Short-Term Rental (Type 2) Regulations ) except for an application received prior to September 17, 2015. In any event, the director may not issue a license pursuant to an application received after November 12, 2015.

(H)

The limitation in subsection (G) does not apply to an annual renewal authorized in subsection (E).

(I)

A violation of any provision of the City Code or other applicable law is grounds to deny, suspend, or revoke a license.

Source: Ord. 20120802-122; Ord. 20130926-144; Ord. No. 20151119-080, Pt. 6, 11-30-15 ; Ord. No. 20151217-098, Pt 1, 12-28-15 ; Ord. No. 20160223-A.1, Pt. 1, 3-5-16 .