Under current law in Newport, people can operate short-term rentals in residential zones if they receive a special use permit from the Newport Zoning Board of Review. On Wednesday night, however, the City Council unanimously voted to prohibit these kinds of properties in residential zones. The proposed changes will also require short-term rental hosts to obtain a special use permit to operate in the city’s limited business districts, where these properties have previously been permitted.
The move comes amidst a broader effort in Newport to address short-term rentals, and their impact on the seaside destination’s strained housing stock. As Airbnbs have become more prevalent, the city has hired a short-term rental compliance officer to crack down on the roughly 180 unregistered properties suspected of operating illegally. Earlier this year, Newport’s legislators championed the passage of a bill at the state level that requires short-term rental owners to register with the state Department of Business Regulation, or otherwise face financial penalties.
“I have people ask me every single week, ‘Oh, this house is for sale. I know it’s going to go for an Airbnb,’ said Newport Mayor Jeanne-Marie Napolitano. “It affects everything. It affects neighborhoods, families, parking, people that want to live in Newport.”
It remains unclear, however, what effect this ban on new Airbnbs in residential zones could have on Newport neighborhoods.
According to a presentation by city staff last October, only 10 short-term rentals had been granted special use permits over the previous five years. The much larger problem, local officials say, is the swath of unregistered rentals that operate under the radar.
Although prohibiting new short-term rentals in residential zones won’t change the fact that these properties are already operating illegally, proponents say an outright ban would make it easier for neighbors to identify and report these illicit rentals.
“This is not an earth-shattering move for a large group of people,” said Newport resident Penelope Hunt, who spoke at the City Council meeting on Wednesday. “But I do feel that having a special use permit option in residential zones confuses the issue for a lot of residents. You know, people say, ‘Oh well, I just thought that house has a permit.’”
During a public hearing Wednesday, a number of Newport residents spoke both in favor and in opposition to the proposed zoning change. A couple of residents who currently operate Airbnbs claimed they rely on revenue from those businesses, with one adding that the city is “being steered a little bit too far in the anti-[short-term rental] direction.”
Newport City Solicitor Christopher Behan said, however, that city officials have not observed a large number of Airbnb owners who depend on their businesses to afford staying on the island.
“We are not finding what we call the ‘mom and pop’ — the person who really needs short-term rentals to get by,” said Behan. “We’re seeing people making a lot of money.”
Newport zoning still permits locals to rent out up to two rooms in residential zones, if the owner lives in the house. Under the new rules, short-term rentals that already hold active special use permits in residential zones will also be grandfathered in.
City Council Member Angela McCalla supported the zoning changes, but also called for a broader study of the housing market and factors driving displacement in Newport.
“I do think that we are treating the symptom and not necessarily the problem in terms of housing,” said McCalla. “Yes, short-term rentals could be one aspect, but there are many that are preventing a lot of our year-round residents from being able to occupy our homes.”
For the time being, however, there’s consensus on Newport’s City Council that more regulation of short-term rentals is long overdue. The zoning changes will require a second reading later this month before taking effect.
“It’s gone for so long where past councils haven’t done anything about this, or the current zoning hasn’t been able to do anything about it,” said Council Member Charlie Holder. “If we don’t do something now, if it’s not already too late, then we might as well just turn this whole town into a commercial district and have at it.”
Antonia Ayres-Brown is the Newport Bureau Reporter for The Public’s Radio. She can be reached at antonia@thepublicsradio.org
