Huntsville Council has asked staff to return with a report regarding the implementation of an interim control bylaw that would see the Town of Huntsville halt the issuance of short-term rental (STR) accommodation licenses for up to a year while it studies the issue.
Municipal staff was asked to look at ways of capping the number of licenses issued in certain areas of the municipality but a report brought back to the Town’s General Committee meeting on April 26, 2023, noted that there is no ability under provincial legislation to do so. Manager of Building and Bylaw and Chief Building Official for the Town, Chris Nagy, told council that some municipalities such as Tiny Township have put such restrictions in place in their bylaw but are being challenged in court.
Director of Planning Services Kirstin Maxwell told council that the only way to prohibit the issuance of new STR licenses is to put an interim control bylaw in place. An interim control bylaw would only buy the municipality some time, up to a year (there is a possibility of an extension for an additional year), while it studies the issue.
Maxwell said when municipalities use interim control bylaws they do not have to give notice and there are no appeal rights, although that may soon change. The province has introduced Bill 97, which if passed would add an appeal option to interim control bylaws.
If challenged, the Town would have to go to court and have to spend “an awful lot of money” instead of waiting until early next year for the outcome of cases already before the courts.
Councillor Jason FitzGerald said that maybe the idea behind trying to get rid of or limit STRs “is a little overzealous. I think we want to keep the good ones [and]we want to get rid of the bad ones. So fortunately, we do have the tools to control that so I think that should probably be our focus…” said FitzGerald who pushed for a review of enforcement efforts and fines.
There are currently 161 properties actively licensed as short-term rentals in the Town of Huntsville (excluding resort properties) and 56 applications currently under review. Of the 161 licensed properties, 19 are located in the Hidden Valley area, according to Nagy.
The meeting agenda included comments from the public on the issue in the form of a letter and a petition, which staff indicated contained 81 signatures. The petition called on the Town of Huntsville not to issue STR licenses to owners listed as Members of the Hidden Valley Homeowners Association. “Currently, 25% of the homes in Hidden Valley are operating as STRs. This is an alarming rate that is negatively impacting the health and wellness of our community,” stated the petition.
A letter submitted by the President of Cottage Vacations, Jay Katzeff, was also included in the agenda. The letter noted that it is unfair to blame short-term rentals for the lack of affordable housing in Huntsville.
“Short term rentals provide a valuable service to our community, offering tourists and visitors a unique and authentic experience of Huntsville while supporting our local economy. By limiting the number of short-term rentals, we risk limiting our ability to attract visitors and generate revenue for local businesses, which in turn affects the overall health and vitality of our community,” wrote Katzeff. “As the President of Cottage Vacations, a local short-term rental agency which has been based in Huntsville for 23 years, I am constantly hearing the alleged horror stories of Airbnb’s and Vrbo properties, the stories that you do not hear are the ones of the angry owners who go out of their way to ruin a families vacation. We get complaints from our renters, who are typically families who are looking to enjoy cottage country, that the permanent resident neighbour would rev their motorcycle all night, or urinate in his garden while facing their bonfire, or being yelled that they are City idiots while out for a walk with their dog. This type of behaviour is unwelcomed and all it is doing is driving future cottage owners, residents, and vacationers out of Huntsville.”
Huntsville Councillor Scott Morrison said he is not against STRs. He said he’s owned one, he and his family use them, and “I do think there is a place for them in Muskoka and there will be forever and I do know that we make four per cent on the rental of them so I’m pro-STR.” Morrison said his concern involves the number of STRs “and the fact that it does have an impact on affordable housing because it takes housing away from the rental and family housing pool.”
Despite staff’s recommendation to wait and see how current court challenges go and rely on enforcement efforts, Morrison introduced a motion seconded by Coucillor Monty Clouthier to implement an interim control bylaw and freeze STR licenses while staff review the issue and look at ways of controlling the number of licenses issued.
Staff is expected to return to a General Committee meeting with information about the implementation of an interim control bylaw.