The town of Narragansett has adopted a new ordinance that has significant implications for property owners and summer vacation renters in the beach town.
Under the new rules, property owners will be prohibited from renting out a unit for less than seven nights at a time. The rules were approved in a 3-1 vote, with one councilor abstaining, following a second reading Monday night.
The short-term rental ordinance defines a short-term rental as a dwelling unit rented for less than 30 consecutive nights. It goes into effect September 1 of this year.
According to the language of the new ordinance, short-term rentals do provide a benefit to the town through “flexible housing” for travelers, but they also “can negatively affect the availability and affordability of long-term housing units.”
“In order to maintain a strong sense of community and to provide for a diversity of residents, local housing must be a priority in regulating short-term rentals,” the ordinance reads.
The ordinance requires that landlords apply for short-term rental permits and limits the number of permits to 1,100 in the first year. The number of available permits will decline to 1,000 in 2025 and 900 in 2026, and the town will maintain a waitlist if applications exceed the permit limit.
The new rules include smaller fines for minor violations and a $1,000 fine and revocation of a permit for major violations, which include refusing a required inspection, making false claims to get a permit, and operating without a permit.
The new restrictions were recommended in a recent housing report completed by the group Crane Associates and presented to the town council in March. The report said a ban on rental stays that are less than a week would reduce incentives for the type of real estate speculation that raises property prices.
“We have data, we have information, and we act on it. And that’s what we’re doing, and that’s what this ordinance is,” Town Council President Ewa Dzwierzynski said before the vote. “We all want the same thing. We all want more housing affordability here.”
Councilor Susan Cicilline-Buonanno was the only councilor to vote against the new ordinance. She objected to placing restrictions on owner-occupied dwellings. She also raised concerns about requiring a landlord to have a local representative who is responsible for responding to complaints about the condition of the building and activity at a short-term rental.
Deborah Kopech abstained from voting after raising concerns about limiting rental options for people who come to Narragansett during the off-season for holiday visits.
Town Council also approves major bond referendum for housing
On Monday, the town council also moved to place a $3 million affordable housing bond referendum on the November ballot.
The resolution, approved with three yes votes and two councilors abstaining, asks the General Assembly to authorize the bond question. Under the draft legislation, the town could use the money it raises through the sale of bonds to fund its affordable housing trust fund, buy land for affordable housing, issue grants, and make other expenditures.
Councilors Jill Lawler and Steven Ferrandi were the town councilors who abstained from voting. Lawler raised concerns that the language for the bond question wasn’t specific enough about what the money would be funding.
“That’s the one thing for me here that’s lacking,” Lawler said, adding that voters may approve raising money that ends up supporting projects they weren’t expecting. “It might not be what they voted for, what they thought they voted for.”
“It’s general but specific,” said Cicilline-Buonanno, who brought the proposal to the council, arguing it gave the town the ability to be “a little flexible.”
“This is about as scripted as it can be to support affordable housing,” Cicilline-Buonanno said in response to Lawler. “So I guess the question is: Do you support affordable housing?”
“Somehow I knew you were going to say that,” Lawler replied.
