The primary goal of Ordinance 2024-05 is to increase the supply of LTRs in Paonia by limiting the number of STRs. Page 5 of the Housing Action Plan states:“ACTIONS TO START NOW” and lists the very first one as “Regulate short-term rentals”.
Quoting a text box on page 58 of that “Housing Action Plan”:
“Regulate short-term rentals! This is the most-obvious, biggest bang-for-the-buck tool in our kit”, commented one Open House participant.
Below is some data that could be helpful in evaluating the effectiveness of Ordinance 2024-05 in achieving this goal:
Although estimates vary, 38 is a commonly used number for the number of STRs operating in Paonia. Applications for 31 STRs have been submitted to the town for permits to operate STRs. Those applications have been submitted because the owners of those properties want to keep their STRs as STRs, and not to convert them into LTRs. An additional 3 STR’s have been operated by the Yeamans and Jay Canode for over a decade and will not be converting them into LTRs.
That totals 34 STRs that will not be converted into LTRs, leaving 4 as the highest number of STRs that could possibly be converted into LTRs.
The real “bang-for-the-buck” would be the number of STRs actually converted into LTRs. The buck would not only be the monetary cost (including but not limited to the cost of the “Housing Needs Assessment and Housing Action Plan” and drafting the Ordinance @ >$70,000, and the cost of the special election), but the labor to regulate, enforce, inspect, and keep records. That’s only the cost to the Town of Paonia, which does not include any of the costs paid by the STR owners for registration fees and inspections. Only after a careful evaluation of the data should the decision be made as to whether or not there is enough “bang-for-the-buck” to adopt Ordinance 2024-05.
