Introduced by: Trustees Hunter and Swartz  TOWN OF PAONIA, COLORADO ORDINANCE NO. 2024-05  AN ORDINANCE OF THE TOWN OF PAONIA, COLORADO ENACTING ARTICLE 5 (SHORT TERM RENTAL LICENSES) OF CHAPTER 6 (BUSINESS LICENSES AND REGULATIONS) OF THE PAONIA MUNICIPAL CODE AND REVISING ARTICLES 1 (GENERAL PROVISIONS), ARTICLE 3 (DISTRICT REGULATIONS) OF CHAPTER 16 (ZONING), AND ENACTING ARTICLE 9 (SHORT TERM RENTAL REGULATIONS) OF  CHAPTER 16 (ZONING)  WHEREAS, the' Town of Paonia, Colorado (the' Townisastalutoymunmiepalilyonganied WHEREAS, C.R.S. $31-15-201 establishes Administrative Powers for statutory WHEREAS, Chapter 6 of the Town of Paonia's Municipal Code (the "Code") sets forth the WHEREAS, Chapter 16ofthe Code: sets forth the' Town's policies for Zoning regulations; and WHEREAS, in response to growth pressures and concerns related to the scarcity of affordable and workforce housing, the' Town has determined that there is a need to protect the limited supply of affordable housing by regulating the conversion of long-term residential rental properties to short-term rentals and the purchase of homes for the WHEREAS, short-term rentals contribute to thel local economy and supporttourist-oriented businesses and allow local homeowners to supplement theiri income and provide flexibility WHEREAS, the Board of Trustees of the Town held extensive public input meetings and workshops to determine appropriate methods oft regulating short-term: rentals and through those meetings itwas determined that uncontrolled and unregulated: short-term: rentals may also have a direct effect on the quality and character of the community and individual  pursuant to Colorado Revised Statutes CRS)31-1-203;and  municipalities,and  Town's policies for Business Licenses and Regulations; and  purpose ofshort-term rentals; and  inr renting second homes and portions oftheirp primary residence; and  neighborhoods and properties in' Town; and WHEREAS, the Board of Trustees finds that:  1. Protection of the health, safety, and welfare of the residents of Paonia is al basic and  valid responsibility oflocal government.    2. These amendments to the Paonia Municipal Code do not discriminate against any individual or group of people and such restrictions allow for reasonable accommodation for all individuals as may be required by Federal and State. law. 3. The enactment ofthis Ordinance is necessary to accomplish the goals set forthl herein. NOW, THEREFORE, BE IT ORDAINED BY' THE) BOARD OF TRUSTEES OF' THETOWN OF PAONIA, COLORADO, THATTHEAMENDMENISTOTHETOWN OF PAONIA MUNICHPAL Section1. The foregoing recitals are incorporated by reference as findings and Section2. Anew Article oft thel Paonia Municipal Code, tol bel known as Chapter 6, Article5,  CODE AREI HEREBY APPROVED AND ADOPTED.  determinations ofthe Board ofTrustees.  entitled "Short-Term Rental Licenses," is hereby adopted and enacted which  shall read as follows:  Chapter 6, Article! 5.S SHORTTERM RENTALLICENSES Sec. 6-5-10. Purposes, Interpretauon ofRules.  (a) Interpretation. This Article shall be construed and applied to promote its underlying (b) Purposes and Policies. Thep purpose ofthis Articlei is to establish license: requirements forshort-term residential property rentals within the' Town ofPaonia.  purposes and policies.  Sec. 6-5-20.1 Definitions.  The following words and phrases, as used in this Article, shalll have the following meanings:  Applicant  Ar natural person with an ownership interestin aj property tol be utilized as a short-term rental, including a natural person matching the name of an owner or co-owner on the currentyesting deed fortheproperty,orap person with a demonstrated controlling ownership interest in any entity or trust  that holds record title to the property.    Local Contact Person  The owner, person designated by the owner, or the owner's authorized gentoreprsentativewho. shalll bea available twenty-four (24)hoursaday, seven days a week for the purposes of(1)responding within 60-minutes to property code violations and/or complaints regarding the condition, operation, or conduct of occupants of the short-term rental, and (2) taking remedial action to resolve such violations and/or complaints.  Primary Residence  A privately-owned residential dwelling or property at which the owner  resides fora at least two hundred (200) days per year.  Short- Term Rental  Aj privately-owned Residential dwelling that is wholly available and rented for the purposes oflodging for any period less than thirty (30) consecutive days, a Single Bedroom Short-Term Rental is also a Short-Term Rental but  musti follow the definition provided: fori it.  Single - Bedroom Short-Term Rental  Aprivately-owned bedroom withina al Primary Residence, orwithin the Core Commercial District (C-1) that is rented for the purpose of lodging any period less than thirty (30) consecutive days, where all other facilities are  shared with the owner ofthe dwelling.  Sec. 6-5-30. License Required.  (a) Its shalll be unlawful for any person or entity to operate a Short-Term Rental, or Single - Bedroom Short-Term: Rental withoutfirsta applying forand procuringalicense from the Town of Paonia. For all Short-Term Rentals one (1) license is required for the entire Residential dwelling, for Single-Bedroom Short-Term Rentals a license is required for each bedroom listed ori intended tol be rented out, New licenses shall be subject to ongoing compliance with all applicable Town regulations concerning the (b) In order to operate on or after May 1, 2025, all Paonia Short-Term Rentals must be licensed, or application made no later than April 1, 2025. To qualify foral license, to  licensingand occupancy ofs Short-Term Rentals.  establish eligibility tol hold al license, an applicant must:    (1) Provide proof ofc ownership of said property, C and, ifthe property is owned by an entity or trust, proofofthear Peamfcmrolageweap interestin the  property must bej provided; (2) Provide either:  Proof that the Short-Term Rental applicant is the propertyowner; or ii. Proof that the applicant's Primary Residence is the same property or on the same property: as the Short-Term Rental; and iii. Provide) prooft that all applicable Paonia sales andl lodging tax was paid ont the Short-Term Rental for which al license is sought for rentals prior  tol December 31,2024.  (c) There shall be thirty (30) total combined Short-Term Rental and Single-Bedroom (d)L Licenses willl bei issued for those properties which are either the applicant's primary residence, or are located within the Core Commercial District (C-1), and the Community Commercial District (C-2), by Special Use Review in the Low-Density Residential District (R-1), the Medium-Density Residential District (R-2), the Higher Density Residential District (R-3) and] by Special Use Review in the Estate Residential District (E-1), as defined in Chapter 16 of the Paonia Municipal Code: and the' Town's  Short-Term Rental licensesi initially available.  Zoning Map.  Sec. 6-5-40. Conditions ofShort-Term Rental Licenses,  (a) Occupançy. All Short-Term Rentals and Single-Bedroom Short-Term Rentals shall havear maximum occupancy equal tot two (2) persons perbedroom plus an: additional two (2) persons per property. Children under the age of five (5) shall not count toward this occupancy limitation. The number of bedrooms that may be occupied within each Short-Term Rental or Single-Bedroom Short-Term Rental shall at all times bel limited to the number ofbedrooms for which fees have been paid pursuant (b) Private Covenants. The Town is not a party to and does not enforce most private covenants and agreements. Applicants should therefore review all covenants and agreements that apply to the property they wish to license as a Short-Term Rental because such documents may restrict or prohibit Short-Term Rentals. The Town's issuance of a Short-Term Rental license shall have no legal effect upon any such (c) Community. Housing Units Not Eligible for Licenses. No housing, or portion ofl housing, which is aj part ofa Community Housing Program or part of any affordable housing  to this Article.  restrictive covenants or agreements applicable to aj property.    program through the State of Colorado or Delta County, Colorado is eligible for a (d) Ongoing Licensee Obligations. Each Short-Term rental licensee shall have an ongoing obligation to ensure that all of the information provided to the Town in connection (e) License Numbers. Each license issued by the Town shall have a local license number for each Short-Term Rental. AllI advertisements for Short-Term Rentals shall () No Transfer or Assignment. Each license issued pursuant to this Article shall be personal to thel licensee, and nol license issued under this Article: shall bet transferable (1)Ifa use as a Short-Term Rentals will continue after the date of a change of ownership ofal lcensed property, thei new owner shalll bei required to obtaina (2)' There shall be no guarantee that a new license will be available for the new (3) Thei issuance andi renewal ofal license pursuant tot this Articleisap privilege, not ar right, and the' Towni may determine at: any time that the allowance oft the use of thej property as a Short-Term Rental property is not, or is no longer, ini the besti interests oft the! health, safety or welfare oft the residents ofthe Town, and  Short-Term rental license.  with al license application is kepti up to date at all times,  expressly specify the license number for the propertylisted.  orvalid ast to any person or entity other than the named licensee.  new license.  owner oft the property.  may amend or repeal this Article accordingly,  (g) Waiting List Established. Should the maximum number ofl licenses be filled and there is: still a desire for Applicants to submit for a license, a waiting list is established. (1) A Waitlist application must be: submitted and the required twenty-five dollar ($25) non-refundable feej paid, and the entry willl be time stamped and placed (2) Applicants will receive an email from the Clerk's office confirming receipt of application as well as ai registration number, and their waitlist placement. (3)A Any Applicant that changes the property owner's name or property address after submitting the application will lose their placement on the waitlist and (4)When a license becomes available, the' Town will contact the next Applicanton the waitlist via email to inform them that they have fourteen (14) days to  on the waitlist in the order it was received.  go to the end ofthe line.    submita complete Short-Term Rental license application andl have iti received (5)Ifa complete application is not) received within fourteen (14) days, the Short- Term Rental license willl be denied, the Applicant will lose their placement on the waitlist, and nos refundwill bei issued, and thenextApplicant ont the waitlist  by the Town.  willl be notified of an available license.  (h)Local Management Required. Short-Term Rentals must at all times have a designated Local Contact Person whose contactinformation must be on file with the' Town. Itis the responsibility oft the. Applicant to ensure thati the contactinformation is current. (1)A Local Contact Person(s) shall be responsible for ensuring compliance with provisions of this Code associated with the Short-Term Rental, including but not limited to compliance with all applicable sales and lodging tax requirements, maintenance of parking areas, removal of snow and ice from sidewalks and pathways, garbage disposal, and other property maintenance (2)A Local Contact Person(s) must be available twenty-four (24) hours a day, seven (7) daysa week and ablet toi respond within sixty (60)minutes, inj person as necessary, to emergencies, any Municipal Code Violations, and/or complaints regarding the condition, operation, occupancy or conduct of the occupants of the Short-Term Rental, and to take remedial action to resolve  requirements.  such violations and/or complaints,  ALocal Contact Person(s) must comply with provisions of this code in  $16-9-10(d)(3).  () Compliance. Except as otherwise set forth in this Article, all provisions of the Municipal Code, including but not limited to all provisions to health, sanitation, garbage and refuse, animals, motor vehicles, noise abatement, dark skies and light trespass, zoning, other nuisances, and utilitybills are paid current, shall remain: fully applicable to all properties licensed for Short-Term Rentals, and compliance with all such provisions shall be deemed a condition ofa all Short-Term Rental licenses,  Sec. 6-5-50. Application Procedure.  (a) All license applications shall be filed with the Town Administrator, or designee, on (b) The Town Administrator, or designee, may issue a new Short-Term Rental license  forms supplied by the Town. upon all oft the followingconditions:    (1)The Applicant has submitted a complete application form and provided all required: information regarding the Short-Term Rental unit, including, but not limited to, where applicable, proofofthe. Applicant's ownership interesti in the property, proof of past payment of all applicable sales and lodging tax to the Town, proof that utility bills are paid current, proof that the property to be rented is the Applicant's Personal Residence, or is located within the Core Commercial District (C-1), the Community Commercial District (C-2), by Special Use Review in any Residential District such as the Low-Density Residential District (R-1), the Medium-Density Residential District (R-2), the Higher Density Residential District (R-3), and by Special Use Review in the Estate Residential District (E-1), proof oft the total number of bedrooms being rented, and information concerning thei required Local Contact Person. . . An Application for a Short-Term Rental within the Low-Density Residential (R-1) zoning district, the Medium-Density Residential District (R-2), the HigherDensity Residential District (R-3)and/or the Estate Residential District (E-1) must also apply for a Special Use 1. When an application for a Short-Term Rental is received and there is a license available, that application will encumber a license until the Special Use Review process is complete and upona approval of the review willl be activated. Ifthe Special Use Review is denied, then the license will be unencumbered and  Review and paya allassociated fees.  returned to the pool ofavailable licenses.  ii. Thel Mobilel Home district MH,lightindustrial. district( (I-1), Industrial District (I-2), Developing Resource. District (DR) and Public District (P)  arei ineligible fora a Short-Term Rental license.  (2)The Applicant has paid an annual license fee of$150.00 per bedroom, up toa maximum of five (5) licenses per Primary Residence for Single-Bedroom Short-Term Rentals, or an annual license fee of $500.00, for a Short-Term Rental thati is notal Primary Residence or Single-Bedroom Short-Term Rental, and has also paid all other applicable taxes and fees owed to the Town, including any outstanding taxes or fees related to any of the. Applicant's or mpymmeieleppmtes and purposes within the' Town. (3)As satisfactory Short-Ferm Rental license inspection has been completed that verifies certain life-safety items are in place, and must comply with the . Access to an exterior thirty-six inch (36") wide by six foot eightinches  provisions of this Codel listed in $16-9-10 (d)(2).  (6'8") egress door.    ii. Smoke Detectors in every bedroom, Smoke/Carbon Monoxide Detectors outside each bedroom within fifteen feet (15), and one on iit. All sleeping rooms mustl have an egress window or door to the outside.  each level of thel home.  (4)Allothera applicable requirements of this Article have been met. (c) The Town. Administrator, or designee, may deny an application if:  (1)The information in the: application isi incomplete, inaccurate orf false. (2) The. Applicant: seeksauthorization for al license at aj prohibited location. (3)The Applicant seeks authorization for a license and the Applicant's current (4)The Applicant is not qualified to hold a license under the provisions of this  license: is suspended or revoked.  Article.  (d) AlI licenses issued under this Article shall expire one year afteri issuançe. (e) Renewals of existing licenses shall follow all of the same procedures required for initial applications and submit the same requfred documentation as initial license (1)Renewal applications are given preference towards the maximum number of available licenses in subseguemtyam-provaded thatthe application complies (2) Renewal Applications for Short-Term Rentals in Low-Density Residential Districts (R-1), the Medium-Density Residential District (R-2), the Higher Density Residential District(R-3)and/or: Estate Residential Districts (E-1)are not required to seek a second Special Use Review provided that they comply (3)AS Short-Term Rental that does not submit a renewal application and has not been marked byt the' Town as received within fourteen (14) days ofe expiration, will forfeit their license and the Town will notify the next Applicant on the Waiting List, if there are no Applicants on the waiting list, the Applicant may  applications.  with all relevant provisions oft the' Town's Code,  with all provisions of Sec. 6-5-60ofthis Code.  reapply.    Sec. 6-5-60. Revocation and Suspension.  (a). Anyl license issued pursuant to this Article may be suspended or revoked by written decision ofthe' Town. Administrator after ten (10) calendar days' priorwritten notice to al licensee of the contemplated action and, in general, the grounds therefore, and after a reasonable opportunity for the liçensee to be heard by presentation of responsive information to the Town Administrator, for any one or more of the (1)Fallure to pay applicable Town lodging tax or any other required Town,  following reasons:  County, and/or State tax or fee fort the Short-Term Rental. (2) Failure toj pay utility bills in a timely manner,  (3) Any false statement of material fact contained in the: application. (4). Failuret tof filea any reportorfumshanyotherinformation thatn may bei required (5)Any other fact or condition that, had it been known to exist at the time of the license application, would have warranted the refusal of the issuance of such (6) Any violation ofa any provisions ofthis Article or ofa fany other law or regulation pertaining toi the requirements oft the: application, or at thej property,orofany (7)Any violation ofany provisions of this Article or ofany other law or regulation pertaining to the requirements oft the application, or at thej property,orofany (8) Building code or safety violations related to the Short-Term Rental that come tothe'l Towi'sattention and cannotber remedied within ten (10) business days. (9) Three substantiated complaints regarding the occupancy, noise, safety, or other disturbance or nuisance within a period of one (1)year. (b) Int the event of any suspension orrevocation, the' Town shall have no liability fora any Short-Term Rental reservations or revenues that may be affected by any such suspension or revocation, and alll licenses hereundershalbeattneriskofthelicense (1)The only remedy for anyone affected by the denial of any application or suspension or revocation shall be the right of the Applicant or licensee, as  byt the provisions ofthis Article.  license.  ofthei terms pertaining to thel license.  ofthe terms pertaining to thel license.  with regard to any such losti reservations or revenues.    applicable, to: appeal such ecisonandseekreversal pursuant tot thef following  section 6-5-70.  Sec. 6-5-70. Appeals.  (a) Any Applicantdirectly: affected byt the denial ofa anyl license: application,orany! licensee directly impacted by suspension or revocation of anyl license pursuant to this Article, shall have the right to appeal to the Board of' Trustees and may, thereafter, seek (b) The' Town. Attorney shall act onl behalfofand adviset thel Board ofTrustees. Thel Board ofTrustees shall notreview de novoa and: shall only reverse or modifyad determination of the Town Administrator if it determines that there was insufficient evidence to support the decision or that the decision was otherwise not in compliance with this  judicial review.  Article. Sec. 6-5-80. Penalties.  (a) In addition to any other remedies available to the Town at law or in equity, after January 1, 2025, the operation of a Short-Term Rental within the Town without a license shall subject the owner of record to a fine in the amount of three hundred dollars ($300.00) per occurrence and per day until a complete license application is submitted to the Town with all required license fees or the Short-Term Rental (1) Collection ofa any fines) levied. are subjectt to provisions of the Paonia Municipal Code and this does not preclude the Town from seeking additional (2)Should the property not qualify to be licensed as a Short-Term Rental, the  operation is terminated.  recompense through Municipal Courtactions. operation shall ceasei immediately.  Section3. Revisions to Chapter16,Article: 10 ofthel Paonial Municipal Code to add orremove Dwelling Unitmeans asautimalammataha.smdasthichalea. foroneor more. persons, includimgpermanent.provisions forl nimmstrmalin. and sanitation. nety-reomporoomsconeseéiegsthercenstimutingeseperate,lmdependent waarew--.emwwpie asi-Phedwalingunitahaallepysalyipaniairomayaharroemsordhellagunis hatmaybeinliesamesrsarvanésemahlymomerihamameme(-gRsmeiei9me9  the following:  ahaemstrmdeid-armatrmaawwp,    Hotel motel or lodgingfacilty means an establishment containing six (6) ormore_guest rooms forl lodgingo offered aher-alcNpMAaTsANDNN orless and thataustomarlymmrides. servicessuch as maid service and the furnishingand  launderingoflinens.  Landscaped. Area means the portion ofa) lot.parcel or tract that has been improved by the preservation. rearrangement. installation or planting of diferemnt.tres.shmubs. grassand decorativematerials. Decorative: materialsmeans) tsidssatimaet the botanical landscaping, includingrocks. gravel. driftwood, bark.ponds. fountains. wallsor  other landscapedesign! featuresapprovedbyt the' Town.  Roeming-UnE-meansa-room-prowalingmiaimum-housingassemmodhatioms-fera-reames; FamgeepHimarlyeorslepingantfersludandwachmsyinehdeaprivatebathbutshal  Ret-melde-a-separate-aitehen:  ShortTerm Rentalmemsantipately-wnedResidential dwelingthatiswiolyavallableand rented for the purposes oflodging foranyperiod less than iryOlconseautive days.a singePedmomshor-lem Rental isa alsoaShort-Term. emhamsalazhamata  providedforit  Single-Bedroom Short-Term Rental means aprivately-owned bedroom within a Primary Residence. or within the Core Commerciall District (C-1)that isrented for the purpose of lodginganyperiodi lessthan hirtyl30)conseativedwyswhemealalterhdlliesareshared  withthenwnerofthed dwelling  Section 4. Revisions to Chapter 16, Article 3, Section 20 of the Paonia Municipal Code to  add or remove the following: Addi to' Table16-1: Use, Short' Term Rentals  R-1 District District S  R-2: S  R-3: S  ** E-1 S  MH X  District: District: District.    Addto Table 16-3: Use ShortTerm Rentals  .C-1 Distriçt. District P  C-2 I-1 District. I-21 District:  P  X  X  Section5. A new Article of the Paonia Municipal Code to be known as Chapter 16, Article  9, entitled "Short-Term Rental Regulations," is hereby adopted and enacted  which shall ready: as follows:  Sec, 16-9-10.Short-Term Rental Regulations. (a). Purpose. Thej purpose oft these standards ist to:  (1)Maintain the Aimatrafngphaas-sng they arel nott turned: into (2) Preserve long-term rental residential properties and housing choice for (3) Protect the health, safety and welfare of the community and Short-Term (4)Support Tourism and visitation to Town through varledaccommodations; (5) Facilitate the permitting of Short-Term Rental unitss subject toa appropriate (6) Establish al licensing system to ensure thatall taxes and fees are paid.  tourista areas;  the residents ofl Paonia; Rental occupants;  restrictions and standards; and  (b) License. Required. Short-Term Rentals shall bel licensed per Chapter 6, Article 5 ofthe Paonia Municipal Code. The total number of Short-Term Rental licenses available shall bel limited per the provisions specified in $6-5-30 (c) oft the Gode. (c) Permitted Locations, Short-Term Rentals are only allowed by right within the Core Commercial District (C-1), and the Community Commercial District (C-2), by Special Use Review in the Low-Density Residential District (R-1), the Medium-Density Residential District (R-2),thel Higher Densityl Residentiall District (R-3),andt thel Estate Residential District (E-1),anyzoning district not listed is ineligible for: a Short-Term  Rental license.  (@Performance: Standards for Short-Term Rentals.    (1)OfFStreet Parking. Off-street parking shall be provided as required by Chapter 16, Article 6,' "Off-Street Parking: and Loading." (2) Health and Safety. All Short-Term Rentals must include operable smoke and carbon monoxide detectors, fire extinguishers, adequate accommodations for trash, and pass al life-safety inspection as required in (3)Proximity of Owner or Owner's. Agent. All Short-Term Rental owners or owner's agent musti reside or conductbusiness within fifteen (15) miles of the Short-Term Rental. The owner or owner's agent name and contact information shall be provided to the Town. All Short-Term Rentals must  $6-5-50(b)(3).  comply with $6-5-40 (h) ofthis Code.  (e) The burden shall be upon the owner of the Short-Term Rental to verify to the Town that the criteria oft this Section are: met andi ifnecessary.provide: adequate proof. () Failure to comply with any provision in this Section may result in revocation or suspension of any license to operate a Short-Term Rental in accordance with the provisions of $6-5-60, and may be subject to fines and penalties found in $6-5-80of  this Code.  Section 6. Notiçe of Enforcement and imspection. Violation oft this Ordinance iss subject  toenforcement: and punishmenta and: shall constitute: an misdemeanor punishable by a fine of up to three hundred dollars ($300.00) per occurrence and per day. Each day that a violation continues to exist shall constitute a separate offense. The full text oft the Ordinance, including any amendments, is available for public  inspection at the office oft the' Town Clerk atTown Hall.  Section.7, Severability. If any section, paragraph, sentence, clause, or phrase of this  Ordinance is held tol be unconstitutional ori invalid fora any reason, such decision shall not affect the validity or constitutionality oft the remainingportions: ofthis Ordinance. The Board of Trustees declares that it would have adopted this Ordinanceand each Pastorparshemefimepask. of the fact thatany one part  orparts be declared unconstitutional. ori invalid. days after publication in accordance with law.  Section8. Effective Date and Time. This Ordinance shall become effective thirty (30)    PASSED AND. ADOPTED this 26th Day of November 2024.  Pye SNg  Paige Smith, Mayor  ATTEST:  Po  lanpis m SEAL Samiral M. Vetter, TowaNC 1902  UNTYC  Approved as to forma and contents: k  Attorney