Danville’s Board of Zoning Appeals will consider two special-use permits to allow short-term rentals in the city at its regular meeting at 10 a.m. Thursday.
One of the applications was filed by a limited liability corporation, called Gibson Investing, and the other was filed by an individual. Both seek to allow short-term rental use as the primary use of a single-family residence.
The planning commission and city council voted on dozens of special use permits in 2023 as Danville saw an explosion of short-term rentals. Now, the board of zoning appeals hears these requests.
The city of Danville defines a short-term rental as a furnished residential property that provides stays for 30 or fewer consecutive days.
Listings for short-term rentals in Danville have increased 800% in the past three years, according to city Councilman Lee Vogler.
People wouldn’t invest in these properties “unless they think Danville is a city that’s seeing a resurgence, and quite frankly, thriving,” Vogler said in a 2023 interview. “When done right, [short-term rentals] can be great for our community.”
New code amendment streamlined short-term rental process
Until December, Danville didn’t have zoning specifically designed for short-term rentals, so anyone looking to operate one in compliance with the city had to apply for a special use permit.
For months, the Danville City Council voted on multiple special-use permits for short-term rentals each meeting.
After much discussion and many revisions, the city created a code amendment for short-term rentals that it believes makes sense for Danville. At the Dec. 5 council meeting, when this amendment was passed, members of council and the city staff commented on the challenges of finding regulations that would benefit the city, short-term rental owners and neighbors alike.
Now, with a code amendment in place, the city’s board of zoning appeals handles the approval of short term rentals, rather than the planning commission and city council.
This was decided to streamline the process and avoid two separate meetings, each with public hearings.
According to the code amendment, owners must do the following in order to operate a short-term rental:
- Obtain a business license from the city.
- Purchase a short-term rental permit and renew it annually.
- Pay lodging tax to the city.
- Live within 30 miles of the property, or designate a local agent.
- Provide safety measures, like a fire extinguisher and emergency exit plan.
- Comply with at least one annual inspection by city officials.
Differing opinions whether short-term rentals will hurt affordable housing
City officials disagree about whether short-term rentals are augmenting Danville’s existing housing shortage. The city has a current deficit of about 600 homes, making it difficult for people who want to purchase a house or rent long-term to find a place to live.
Some folks, like Vogler, don’t think that these properties exacerbate the housing shortage because most short-term rentals are created by fixing up old properties that weren’t currently on the market.
“No one was banging on the door to buy these properties and move right in,” he said. “[Short-term rental owners] took distressed properties and enhanced their value.”
City Manager Ken Larking said the opposite is true at a city council work session last year — and many residents seem to agree.
When someone turns a single-family home into a short-term rental, “it takes that house off the market for a long-term renter,” Larking said.
Still, short-term rentals aren’t going away, and may increase in number as the opening for the permanent casino resort approaches. It is slated to open by the end of the year.
Both of the applications that the board will consider on Thursday are located within the general vicinity of the Caesars Virginia casino resort site, at 304 Wood Ave. and 185 Howeland Circle.
Bristol has also seen a drastic increase in short-term rentals near its Hard Rock casino resort in the past several years.
Both have established an occupancy load, completed an occupancy inspection, have off-street parking and are located in residential areas with other short-term rentals nearby.
The planning division recommends approval for both applications.
The full agenda packet for the board of zoning appeals meeting can be found here.
Also this week, the city council will vote on the final adoption of a budget appropriation ordinance that would allocate $2 million toward single-family housing projects at its Tuesday meeting at 7 p.m. The first reading of this item was Oct. 1.
Both the city council meeting and the board of zoning appeals meeting will be livestreamed on River City TV’s Facebook page.
