ORDINANCE AMENDING CHAPTER 28 OF THE CODE OF ORDINANCES, HOUSTON, TEXAS, adding Article XXIII thereto, establishing a Registration-Based Regulatory Framework related to the issuance of Certificates of Registration and a Fee therefor for the operation of Short-Term Rentals; containing findings and other provisions relating to the foregoing subject; declaring certain conduct to be unlawful and providing penalties therefor; providing an effective date; providing for severability

The Administration & Regulatory Affairs Department (ARA) recommends that City Council adopt an ordinance approving amendments to Chapter 28 of the City of Houston Code of Ordinances, adding Article XXIII to create a registration-based framework for the regulation of short-term rental (STR) properties.

The proposed ordinance defines a short-term rental as a dwelling unit or any portion of a dwelling unit that is rented out or offered to be rented out for a period of less than 30 consecutive days, and excludes hotels, bed & breakfasts, and other group homes. If approved, the ordinance would make it unlawful to operate an STR without a valid City of Houston registration certificate. The proposed ordinance would also allow the City to enforce other regulations at short-term rentals including:

• Noise and sound regulations
• Building and neighborhood protection requirements
• Waste and litter requirements
• Fire code provisions
• HOT payment requirements
• Listing and notice requirements
• Emergency contact requirements

The proposed ordinance would also prohibit STRs from advertising as event spaces. The annual registration fee will be $275, based on a cost of service study performed by the City’s Finance Department, which will be paid by an STR registrant in addition to the City’s administrative fee. Online STR platforms will be required to remove the listing of any STR that is found to be operating without a valid City of Houston registration within 10 days of being informed of the unregistered STR by the City.

Registration certificates are subject to revocation for several reasons, including but not limited to: if the owner/operator is convicted of a major criminal offence or for multiple violations of the City’s sound ordinance; or for multiple nuisance violations, building code violations, or failure to pay HOT.

There will be a 180-day implementation period to allow registrants to come into compliance.

Departmental Approval Authority:

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Tina Paez, Director, ARA                                         Other Authorization

Billy Rudolph    Phone: 832-393-8503

Kathryn Bruning Phone: 832-394-9414