At the town council’s June 6 regular meeting, assistant town manager, Alisha Janes, introduced ordinance 605, which imposes a $400 yearly per bedroom registration fee on owners of short-term rentals.

The $400 per bedroom fee would be in addition to the existing $150 short-term rental registration fee.

In January, the Winter Park Town Council reconvened the short-term rental advisory committee to study the effects of short-term rentals on the local economy.

The committee includes local business owners, short-term rental owners and representatives from Winter Park Resort. They studied similar measures in other resort communities and Winter Park’s three-year community housing plan.

Winter Park’s three-year community housing plan outlines the town’s affordable housing needs and goals.

Following a housing needs assessment, the short-term rental advisory committee found an additional need for 700 workforce housing units in the Fraser Valley.

In order to meet the affordable housing goals outlined in the three-year community housing plan, the town needs approximately $3 million in additional revenue.

Following these studies, the short-term rental advisory committee recommended the $400 per bedroom fee that would be dedicated to the town’s affordable housing fund.

The committee found that short-term rentals adversely affect resort communities by bringing a surplus of visitors to resort communities.

These additional visitors create demand for a larger local workforce. More visitors create a greater need for workers in food and beverage service, hospitality and tourism.

These workers’ salaries are insufficient to afford to live in expensive resort destinations.

Town Council estimates the $400 per bedroom fee would raise $812,000 annually for the town’s affordable housing fund, and make significant progress in funding the town’s affordable housing deficit.

In addition to the short-term rental fee, the town has initiated housing impact fees on new development and has used the town’s general fund to cover the deficit.

The town hopes to make the affordable housing fund self-sustaining and reduce reliance on the town’s general fund.

Additionally, the town plans to increase the existing lodging tax by 2%. Guests at hotels will have to pay a higher tax, and the funds from those taxes will also go into the town’s affordable housing fund.

Ordinance 605 does not alter the lodging tax. Instead, the town council will pursue an increased lodging tax by a separate action in the near future.

On May 2 the short-term rental committee presented its recommendations to the town council.

One member of the committee explained Winter Park’s unique situation as they grapple with workforce housing needs. Compared to similar resort communities, Winter Park has fewer traditional hotel accommodations.

Short-term rentals are vital to the local economy because they supplement the limited hotel accommodations and bring visitors to Winter Park. Other resort towns have much higher fees for short-term rentals because they can rely on hotels to house visitors at a higher rate.

Assistant town manager, Alisha Janes, emphasized the “balanced approach” taken by the short-term rental advisory committee. The committee crafted a fee that was not “overly burdensome” for the approximate 1,200 registered short-term rental owners in Winter Park.

The committee does not want to deter short-term rental owners from renting out their units especially during peak periods, while also covering the affordable housing deficit.

The town council unanimously passed the first reading of ordinance 605 at their June 6 regular meeting.

Ordinance 605 will be presented for a second reading and public comment at the town council’s next regular meeting on June 20.