Traverse City Planning Commission Discusses Increasing Allowable Density in R-2 District and Possible STR Regulations; Charter Township of Garfield Planning Commission Discusses Potential Housing TIF Policies; FTC Issues Final Junk Fees Rule
This week on the GAD Top Three, we kick things off by reviewing the Traverse City Planning Commission's busy January 2nd study session, which held discussions for potential changes to allow increased density in the R-2 residential district and potential short-term rental regulations. Next, we'll look at the most recent Charter Township of Garfield Planning Commission meeting, at which there was a discussion of adding a policy for Housing Tax Incremental Financing to support greater housing development. Finally, we end with a quick summary of the Federal Trade Commission’s (FTC) recently issued final Junk Fees Rule providing clarity and transparency regarding all mandatory fees related to short-term lodging.
2. Traverse City Planning Commission Discusses Increasing Allowable Density in R-2 District and Discussion of Possible STR Regulations
Housing was a hot topic at the recent City of Traverse City Planning Commission Study Session held on Wednesday, January 22nd. There was a discussion of a proposed zoning amendment to increase the allowable density from 2 dwelling units per parcel to 4 dwelling units per parcel in the R-2 District (Mixed Density Residential). Planning Director Shawn Winter explained that the Traverse City Planning Commission had previously shown support for this proposed zoning amendment, but, although it made it to the Traverse City Commission for approval, no motion was made for this amendment. This discussion was had to reconsider whether the Traverse City Planning Commission would like to bring this amendment to the Traverse City Commission for consideration. The majority of Planning Commissioners expressed the intention to move this amendment forward ultimately for consideration by the Traverse City Commission after they have had a chance to consider some minor adjustments to the amendment. Public comments given were also very supportive of this increase in allowable density in the R-2 district. You can view the full discussion here (24:38 to 1:03:02).
The Traverse City Planning Commission also continued their ongoing discussion of potential short-term rental regulations. In the Traverse City Planning Commission agenda packet for the January 22nd Study Session Traverse City Commissioners provided any talking points they wished to include in the agenda packet (pages 73 and 74) and Traverse City Planning Staff recommended “working within the existing system of limiting the percent of dwelling units that can be used for vacation home rentals in all districts where allowed.” (page 74). Traverse City Planning Staff also recommended eliminating the two-tiered (high intensity and low intensity) tourist homes and making it a single-tier. The majority of Planning Commissioners expressed support for reducing short-term rentals from 25% in Industrial districts to 0%. There was also a conversation about reducing the allowance of short-term rentals in the D: Development districts below 100% but still allowing them at some level so that the allowance of some short-term rental units can support the development of long-term rentals, or for-sale properties for multi-unit development. Planning Commission Cahir Debbie Hershey summarized the Planning Commission’s discussion as they would like a reduction in the number of short-term rentals operating going forward. They are going to rely on staff to bring back to them something for consideration based on their discussion at this study session. They will be continuing this discussion at their next Planning Commission meeting on Tuesday, February 4th at the Governmental Center (400 Boardman Avenue, Traverse City) at 6 pm if you would like to lend your voice to these considerations. You can view the full discussion here (2:07:51 to end).
2. Charter Township of Garfield Planning Commission Discusses Potential Housing TIF Policies
At the Wednesday, January 22nd Charter Township of Garfield Planning Commission Meeting Charter Township of Garfield Planning Director John Sych brought to the Planning Commission the consideration of Housing Tax Increment Financing (TIF) Policies. Housing TIF is a new tool as of 2023 legislative amendments (Michigan Public Acts 90, 91, 92, 93 of 2023) which allows the use of the State of Michigan Public Act 381 of 1996, commonly referred to as the Brownfield Redevelopment Financing Act, for housing development. Under this new legislation, the Michigan State Housing Development Authority (MSHDA) can approve state TIF for new housing development for residents earning up to 120% of area median income (AMI). Planning Director Sych presented Housing TIF as policies that Garfield may want to establish to approve Housing TIF for projects that can develop middle-income housing, for individuals making 80% to 120% of AMI. Planning Director Sych stated the importance of Garfield establishing Housing TIF policies is to show developers the priorities for housing development that the Charter Township of Garfield has to attach the type of housing development Garfield is looking for. During the discussion, Charter Township of Garfield Planning Commissioners expressed a focused interest in supporting single-family house development utilizing Housing TIF. Planning Director Sych is going to take this feedback back to the Grand Traverse County Brownfield Redevelopment Authority. You can view the full discussion through this link (the Housing TIF discussion is from 1:17:11 to 1:39:11).
2. FTC Issues Final Junk Fees Rule
The Federal Trade Commission (FTC) recently issued the final Junk Fees Rule, which aims to provide consumers with greater clarity and transparency regarding all mandatory fees related to ticketed-live events and short-term lodging. The rule requires businesses to provide clarity and transparency to consumers regarding the fees that they will be required to pay for ticketed events and rentals/lodging. Businesses are also required to exclude allowable fees upfront and "must clearly and conspicuously disclose the nature, purpose, identity, and amount of fees before consumers consent to pay." Businesses must display the total costs associated with short-term rentals more prominently. The rule "does not prohibit any type or amount of fee, nor does it prohibit any specific pricing strategies." Businesses may include any fees they deem necessary; however, transparency in pricing for consumers is imperative.
The rule will be effective in 120 days following issuance of the final rule and will be effective around April 18, 2025. NAR is still reviewing the full rule to assess its impact primarily for short-term rental owners and businesses and will provide relevant updates.
