Will Dallas Ban, Regulate, or Restrict? Residential Short-Term Rentals Decision Expected Wednesday

As a three-hour briefing on short-term rentals concluded last week, Dallas City Manager T.C. Broadnax promised that staff would issue a professional recommendation — a measure several council members said wasn’t necessary ahead of a June 14 vote. 

We’ve got the memo, published below in its entirety. 

But first, here’s what could go down at City Hall on Wednesday. 

Three Options For Short-Term Rentals

The council basically has three options to deal with out-of-control party houses and criminal activity occurring at Airbnbs and Vrbos in residential neighborhoods. 

• The “Keep It Simple Solution,” approved by the City Plan Commission and favored by at least three council members. This proposal is on Wednesday’s agenda for a vote; any changes would have to be proposed as an amendment, according to the Dallas City Attorney’s Office. 

• District 1 Councilmember Chad West’s proposal to aggressively pursue regulations, 24-hour enforcement funded through hotel taxes, parking requirements, limitations on occupancy, a party house ban, an on-site caretaker for residential STRs, and a requirement that new STRs must be 2,000 feet from an existing short-term rental. West’s proposal does not consider regulations for apartment STRs because they basically regulate themselves, he said. 
• An alternative solution based on the recommendations of Planning and Urban Design Director Julia Ryan and Code Compliance Director Chris Christian, outlined below in a memo from Assistant City Manager Carl Simpson.

Staff Recommendation on Short-Term Rentals

Below is a memorandum issued Friday, June 9, by Assistant City Manager Carl Simpson. 

This serves as a follow-up memorandum from the City Council briefing on June 7, 2023, on the Proposed Short-Term Rental (STR) Registration and Zoning Ordinances. The intent of the memorandum is to provide an overview of staff’s recommendations discussed during the City Council briefing.

Planning and Urban Design Staff Recommendation

Prior to the June 7, 2023, Council briefing, Planning and Urban Design (PUD) staff did not prepare a professional recommendation on the code amendment City Plan Commission (CPC) authorized December 2, 2021, which included specific direction to create a new use within the Lodging Use category. The staff recommendation has now been incorporated into the zoning staff report and included via memorandum as requested by members of the City Council. Please note that staff’s recommendation differs from the recommendation of the CPC.

PUD staff recommendation is to address STRs entirely through the registration process and not through amendments to the zoning code. This recommendation is based on the assertion that the major concerns related to STRs are operational and would be best managed through a registration ordinance enforced by Code Compliance Services. This is consistent with the Dallas Development Code’s administration of the operational considerations of residential properties within the zoning ordinance.

The Dallas Development Code is silent on the tenancy or ownership status of the occupants of a residential property (e.g., there is no difference in land use standards based on if a property is owned fee simple, leased, rented, mortgaged, shared ownership with condominium regime, etc.). Chapter 27 of the Dallas City Code contains standards for rental properties and the proposed Chapter 42B contains standards for STRs that address the concerns voiced and is better suited to enforce operational standards.

If land use category in the zoning code is preferred, a new main use (short-term rental lodging) could be created within the Lodging Use category, as defined by the CPC but permitting the use by right in all zoning districts, and deferring all operational concerns to the registration ordinance, managed, and enforced by Code Compliance Services. A draft of staff’s recommended zoning ordinance in comparison with City Plan Commission recommendations is attached to this memorandum. 

Planned Development Districts and Conservation Districts

It is important to note that approximately 40 percent of existing STRs are located in Planned Development Districts (PDs) and Conservation Districts (CDs). PDs and CDs often include a reference to a base zoning district for permitted uses.

If the City Council approves a zoning code amendment that creates “short-term rental lodging” as a new main use in the Development Code (regardless of the permitted districts or the use category), each PD and CD would need to be examined to determine if STRs are permitted in that district.

In PDs and CDs that refer to a base zoning district (e.g., R-7.5) in which STRs are permitted without further exclusion of uses or provisions that otherwise prohibit lodging uses, STRs would be permitted and regulated by the registration ordinance, consistent with base zoning districts. Most PDs and CDs operate

in this manner. However, several large PDs include a list of permitted uses. STRs would not be permitted in these PDs because they do not refer back to a base Chapter 51A zoning district for permitted uses. Below is a non-exhaustive list of PDs that follow this pattern.

• PD 193 Oak Lawn Special Purpose District

• PD 269 Deep Ellum / Near Eastside

• PD 317 Cedars Area Special Purpose District

• PD 621 Old Trinity and Design District Special Purpose District

• PD 830 Bishop Arts

Code Compliance Staff Recommendation

The recommendation of Code Compliance Services is to allow STRs by right in all zoning districts to be registered and regulated under proposed Ch. 42B Short-Term Rentals of the Dallas City Code. Additionally, we CCS encourage the approval of requested resource needs that align with rejecting CPC’s recommendation (presumed 3,000 STRs).

Carl Simpson
Assistant City Manager