Supervisors to hold public hearing on rules for short-term lodging
The Louisa County Board of Supervisors on Monday night will hold a highly anticipated public hearing on regulations for short-term rentals, a temporary lodging option typically offered via online platforms like VRBO and Airbnb.
STRs have exploded in popularity in recent years especially in vacation destinations like Lake Anna, drawing tourists to the lake for short stays and investors who’ve scooped up lakeside dwellings and, in turn, offered them for rent. According to county officials, more than 460 STRs have been identified in the county, mostly in residential neighborhoods around the lake.
Though short-term rentals are defined in county code—the rental of a dwelling for periods of 30 days or less—the use isn’t otherwise addressed, meaning STRs technically require a Conditional Use Permit. But county officials haven’t enforced that rule, leaving STRs free to operate largely without official oversight.
The proliferation of short-term rentals around the lake has sparked controversy and prompted some year-round residents to push for strict regulations. Residents have argued at county meetings that STRs are businesses operating in residential neighborhoods that threaten the character of their community, public safety and the long-term health of the lake.
Specifically, they’ve said that overcrowded STRs could lead to failing septic systems that harm the lake’s water quality and urged county officials to adopt a two-person per bedroom occupancy cap—a standard generally in accord with Virginia Department of Health guidelines for septic systems—and septic system maintenance requirements. Residents have also complained that unruly renters don't respect their neighborhoods, throwing large parties, leaving piles of trash and speeding down once-quiet streets, and absentee owners have no interest in addressing their concerns.
But STR operators, realtors and members of the business community have forcefully pushed back, contending that strictly regulating STRs—especially implementing an occupancy cap and enforcing the requirement for a CUP—would decimate the local tourism economy and harm small businesses. And they’ve argued that some regulations would unfairly single out STR owners, noting that the county isn’t telling residents who don’t operate an STR how many people they can have at their home or how often they must get their septic system inspected.
To balance community concerns, county officials have grappled with how to regulate STRs for more than a year, first considering a proposal that drew on a section of state code that allows localities to implement an STR registry, among other rules. Under several iterations of that draft, the county considered implementing an occupancy cap that, in most instances, would’ve permitted only two visitors per bedroom.
But the draft met strong resistance from STR operators and some business owners, and the county eventually shelved the proposal. Officials have said they pulled the draft over concerns that the General Assembly would change how it allows localities to regulate the use.
Supervisors will consider two new proposals Monday night that regulate STRs through the county’s zoning code, where the state gives localities more leeway to make their own rules. The drafts take divergent approaches to regulating STRs, which reflect the deep divide surrounding the issue at the lake.
One proposal, recommended by the Louisa County Planning Commission, would tightly regulate STRs in residential neighborhoods and most other zoning designations, requiring operators to obtain a Conditional Use Permit. Acquiring a CUP involves a public approval process and an affirmative vote by the Board of Supervisors. The rules would permit STRs by-right with significant restrictions in Resort Development (RD) zoning and allow the use by-right without restrictions in agricultural areas.
The other proposal, recommended by a Board of Supervisors work group, would allow STRs by-right in most residential areas, imposing some restrictions on the use. The rules would permit STRs by-right with no restrictions in the county’s agricultural areas and require STRs to obtain a CUP in other zoning designations where few short-term rentals currently exist.
According to Deputy County Administrator Chris Coon, the board work group included the two supervisors who represent parts of Lake Anna—Mineral District Supervisor Duane Adams and Cuckoo District Supervisor Willie Gentry—and county staff. But Gentry told Engage Louisa last week that he has concerns about the work group recommendation, particularly because it allows a commercial use by-right in most residential neighborhoods.
Board work group proposal
The board work group’s draft designates STRs as a commercial use and permits them by-right with some restrictions on property zoned residential (R-1 GAOD, R-2 GAOD) in the county’s designated growth areas, as defined in the 2040 Comprehensive Plan, as well as on property zoned for Resort Development (RD). Most waterfront real estate on Lake Anna is zoned residential and in a growth area. Cutalong at Lake Anna, Spring Creek at Zion Crossroads and several other areas are zoned for resort development. As proposed, STRs operating in these zoning designations would be required to:
provide a point of contact for their property to Louisa County and its subdivision’s governing body, if applicable;
provide to tenants a copy of Louisa County code sections pertaining to noise and solid waste as well as the definitions for Special Occasion Facilities and Gatherings as part of short-term rental contracts.
inform tenants that using the property for a special event typically held at a special occasion facility—a wedding, for example—is prohibited unless the property has a valid Conditional Use Permit;
provide tenants with at least one designated off-street parking space per bedroom and an off-street parking space for a trailer (20 ft by 8 ft);
provide to Louisa County documentation of septic system inspections and repairs whenever they are completed, if applicable;
comply with all applicable state building code and safety regulations.
STR owners unable to meet these requirements would be prohibited from operating a short-term rental unless they obtained a Conditional Use Permit from the Board of Supervisors.
STRs operating inside or outside of growth areas in industrial (IND, I-1, I-2) and commercial (C-1, C-2) zoning designations would require a CUP as would STRs operating in residential zoning designations outside of growth areas. Short-term rentals in agricultural zoning (A-1, A-2) inside or outside a growth area would be permitted by-right and not subject to the rules governing STRs on residentially zoned property in growth areas.
The county wouldn’t impose rules on STRs in agricultural zoning to comply with an opinion that Attorney General Jason Miyares published earlier this year. The opinion essentially says that localities can’t use their zoning code to regulate short-term rentals on agricultural land because the use is considered agritourism.
If adopted, the ordinance would take effect on January 1, 2025.
In a FAQ explaining the draft ordinance, county officials say that it’s designed to balance the needs of homeowners and STR operators, protect the character of neighborhoods and ensure the safety of guests and neighbors.
But, when the Planning Commission held a public hearing on the draft at its September 14 meeting, both commissioners and some lake residents said that the regulations failed to adequately address community concerns. Many speakers reiterated concerns expressed at previous meetings, namely that the county needs to implement an occupancy cap and septic system inspection requirements to protect the health of the lake. Some speakers also took issue with allowing STRs as a by-right use in some residential zoning, pointing out that permitting commercial activities in residential neighborhoods runs counter to current code.
“The present ordinance doesn’t allow commercial activity in R-zoned districts and STRs are clearly a commercial entity. The new zoning proposal would allow by-right STRs. This contradicts the current code and does not help solve the problem. It exacerbates it,” lake resident Dennis Wallingsford said.
Gentry, whose Cuckoo District includes the eastern end of the lake, said that he didn’t have much input in crafting the draft early on and that he too has serious concerns about allowing STRs by-right in residential areas.
“I’m getting to the point where I don’t know how I’m going to vote, but leaning in the direction of going with what we already have on the books,” Gentry said, referring to existing code which technically requires STRs to obtain a CUP. He added that he’ll be “listening very closely” to residents’ concerns during Monday’s public hearing.
The Planning Commission ultimately voted 7-0 to reject the work group’s draft then voted 6-1 to recommend its substitute proposal.
Planning Commission recommendation
Most notably, the Planning Commission’s recommendation requires a CUP for short-term rentals across all county zoning designations except resort development (RD) and agricultural districts (A-1, A-2). The county wouldn’t impose rules on STRs in agricultural zoning to comply with the attorney general’s opinion.
In RD zoning, STRs would be allowed by-right with restrictions. Those restrictions are far more stringent than those included in the work group draft and are based on a proposal submitted by Commission Chair John Disosway. Disosway said the restrictions incorporate elements of a draft ordinance the county considered last year, the board work group recommendation and regulations adopted by Bedford and Franklin counties, both of which are home to Smith Mountain Lake shoreline.
The restrictions include a two-person per bedroom occupancy cap, which exempts children under two and allows for two additional people. Disosway said that an occupancy cap is just as important to ensure fire safety as it is to guard against septic system failure.
“The last thing I want to read about in the paper is a fire at a weekend rental on the lake with grandchildren and children (in an) unfamiliar (space who) could not find their way out. Six dead,” he said.
The restrictions also require STRs owners in RD zoning to register with the county and pay a $50 fee unless they’re a licensed real estate agent or represented by a realtor, submit a detailed property management plan, and provide at least one designated parking space per bedroom and space for a trailer, among other rules.
The restrictions could potentially serve as a template for conditions imposed on STRs that require a CUP, but the Planning Commission didn’t explicitly include that recommendation in its approved motion.
The commission’s proposal has raised concern among many STR owners who continue to argue that requiring short-term rentals to obtain a CUP and imposing occupancy limits would hurt the local economy and unfairly penalize property owners who rent their homes.
In a Letter to the Editor in the September 28 edition of The Central Virginian, Bill Colbert, who operates an STR on the lake, wrote that the rental income he generates from his home is vital to his personal finances and that STRs are a key part of Louisa’s economy.
“Ultimately, these regulations could render me unable to pay my mortgage and may require me to sell my home. Since your regulation would put other Louisa County STR owners in a similar position, we would see a flood of home sales in Louisa County at Lake Anna, which would drive down the home values of all residents in the county – further impacting the real estate tax revenues the county depends on,” Colbert wrote. “If occupancy limits are implemented, the overall tax revenue of the county will go down (STR taxes, small businesses serving the STR industry and our guests), resulting in the county needing to increase taxes on all residents to maintain the same level of services to our citizens.”