Common Council Passes Moratorium on Short-Term Housing

HUDSON — The Hudson Common Council passed a six-month moratorium on permits for new short-term rentals, a policy championed by 4th Ward Alderman John Rosenthal, and approved the proposed lodging tax law revision Tuesday night at City Hall, 520 Warren St.

The Council voted to impose the temporary ban on granting new permits for short-term lodging, citing the need for further study of the impact such rentals have on Hudson’s housing market.

The moratorium will prevent new permits for short-term rentals lasting less than 30 days and will not affect hotels or existing rental properties already registered under the city’s lodging tax policy.

The vote in favor of the moratorium comes two months after the Common Council failed to override former Mayor Rick Rector’s veto of a proposed nine-month moratorium on Dec. 17, 2019. Rosenthal vowed then to reintroduce the legislation under the new mayor and Common Council in 2020.

Residents “don’t have to be fearful” of the legislation, Rosenthal said Wednesday.

“Contrary to what people think, it’s not going to stop people from coming to Hudson,” he said.

Rosenthal said the final bill will be in line with similar policies enacted across the country.

“We’ll be hearing more from the public, but the general shape of it is known,” Rosenthal said. “There will be a residency requirement.”

The Common Council held a hearing to gauge public opinion on the moratorium and the proposed lodging tax revision on Feb. 10, but during the public comment period at last night’s meeting 5th ward resident Kristal Heinz expressed concern that the Council had not adequately considered written comment. She read aloud a letter written by her client, Carol Smillie, that she said was submitted to Common Council President Thomas DePietro.

“Higher rents and rental shortages as a result of short-term rentals is a myth that has not been substantiated,” Heinz said, quoting Smillie.

“The law that will come forward is designed to allow people who live here full time to continue to operate Airbnb to help them supplement their income,” Rosenthal said. “What we are trying to do is go after the problem of speculation in operating Airbnbs in a way that’s unfair to other businesses.”

The Common Council also introduced a revised version of the lodging tax law, which will be voted on at its next meeting. The proposed law would funnel all revenue from the lodging tax to the city’s general fund.

The lodging tax brought in $310,000 in 2019, according to the city Treasurer’s Office.

Since June 2017, Hudson has required operators of short-term rentals, including those offered through Airbnb and VRBO, to pay a 4% lodging tax in addition to an annual $45 registration fee.

Fifty percent of the revenue generated by the lodging tax is allocated to the Tourism Board. If passed, the revision will allocate 100% of lodging tax revenue to the general fund. The Council has previously cited the need for greater flexibility in its budgeting.

“It seems sort of odd that just this specific type of tourism marketing would be earmarked while most of the budget is not,” Mayoral Aide Michael Chameides said at the public hearing Feb. 11.

The Common Council will vote on the tax revision at its next meeting on March 17, 2020 at 7 p.m.

Contact Nora Mishanec at nmishanec@columbiagreenmedia.com or 518-828-1616 ext. 2495.