By QUINTON SMITH/YachatsNews
Jay Kay and Heidi Olsen of Poulsbo, Wash. would just like to use their 1½-year-old house between Yachats and Waldport as a vacation rental when they’re not visiting the Oregon coast themselves.
They are one of 16 property owners on a Lincoln County waiting list for six licenses potentially available in an area east of U.S. Highway 101 stretching from Newport to the Lane County line.
But they’re going to have to wait – maybe for quite a while.
Although a circuit judge, the Oregon Land Use Board of Appeals and the Oregon Court of Appeals have repeatedly ruled in the county’s favor on challenges to its 2-year-old vacation rental regulations, commissioners are heeding the advice of their lawyers and not lifting a license moratorium passed last August until all legal appeals are settled.
That could be a long time.
A group of short-term rental owners organized by a management group has said it may take their Lincoln County cases to the Oregon Supreme Court – and maybe the U.S. Supreme Court.
Even Lincoln County has said it will appeal the portion of a judge’s ruling in December striking down two elements of its rental regulations.
Kay and Olsen finished their second home on Northeast Wakeetum Street in unincorporated Lincoln County in 2022. There are six houses on the street, most on acre lots.
“It’s a beautiful house,” Kay said of their 2,500 square foot house with everything but a master bedroom and bath available to renters. “It’s 500 yards from the ocean, but you can hear the ocean non-stop
Kay has contacted the three county commissioners asking if the six licenses could be put into a lottery for use. The county did just that last March before passing the moratorium in August.
“It’s good revenue for the county,” he said of the county’s 12 percent lodging tax. “…It’s frustrating they’re not releasing these licenses.”
Commission chair Casey Miller last week told YachatsNews that the idea was at least worth bringing to a commission meeting, but wanted to get the advice of their attorneys.
That advice?
“The county is not considering lifting the moratorium until the appeals have been concluded,” county counsel Kristin Yuille said in an email this week.
Seven area limits
The current issue is a different twist on the long-running battle over vacation rentals in unincorporated areas of the county.
As the county was coming up with revised regulations, they sought a way to address in more detail the burgeoning number of short-term rentals in some residential neighborhoods. A year ago they voted to create seven geographic areas and set caps on the number of rentals in each.
The five areas west of Highway 101 have the highest concentration of rentals and the number of licenses in those areas are supposed to drop from the current 410 to 89 over time as ownership changes hands.
But two areas east of Highway 101 — north of Highway 20 to the Tillamook County line and south of Highway 20 to Lane County – are generally much less sought after for rentals. The north area has a limit of 47 rentals and has one license currently available. The south area has a limit of 45 and six licenses now available.
That approach to regulating vacation rentals has so far survived legal challenges.
The vacation rental owner group fighting the county appealed the portion of the regulations creating the seven areas to the Land Use Board of Appeals, a quasi-state agency that rules on land-use issues. LUBA said it was an issue for Lincoln County Circuit Court and in late December the Oregon Court of Appeals agreed.
On Dec. 29 – a day after the Appeals Court ruling — Lincoln County circuit judge Joseph Allison said the ordinance does not fall under Oregon’s land-use laws and that the county can regulate vacation rentals through its business licensing program.
But in his ruling, Allison “severed” two small parts of the ordinance and declared them invalid because he said they were unconstitutionally vague. They included:
- Striking down a county prohibition of “events” at vacation rentals because the term wasn’t defined well enough; and
- Striking down an area of the ordinance delegating to the county counsel’s office the authority to appoint a hearings officer, create procedures and rules to hear complaints, violations and citations against vacation rental owners.
But now, the short-term rental owners group is asking LUBA to reconsider its decision on the seven sub-areas, and asked to have until Feb. 20 to file their motion.
Last Friday, Allison signed a formal order approving the county’s regulations – except for the portions on events and hearings officer procedures. Yuille said the county plans to appeal that portion of Allison’s ruling.
- Quinton Smith is the editor of YachatsNews.com and can be reached at YachatsNews@gmail.com
I’m glad the county is taking the position that it is taking. I feel zero empathy for vacation homeowners who can only afford a second home by turning it into a commercial business in a residential neighborhood. I feel empathy for people who live and work here year-round and cannot find affordable housing.
This isn’t just a problem here but in many resort areas. And indeed, it’s worse in many high end vacation areas like around Telluride or Vail. I wish someone would start thinking about a government program to create incentives for affordable worker housing in resort areas and disincentives for people to buy or build homes that sit empty much of the iff season and turn neighborhoods into noisy party zones in during vacation seasons.
Mr. Kay is fighting for a license for a vacation rental. What is fails to understand that our little section of houses on Wakeetum has CC&R’s in place that do not allow vacation rentals. We, as homeowners, specifically moved to an area where we would be safe from vacation rentals. Now we have someone who wants to go against our CC&R’s and all the other neighbors here. I do not believe that is fair.
Agree totally. Lincoln County should look into these issues before even considering a license for a short term rental. I have studied the effects on neighborhoods that were once peaceful and respectable changed forever by having strangers coming and going at all times of the day and night with no respect to the property owners that reside within.
Some people are applying for licenses for vacation rentals when the current CC&R’s do not allow vacation rentals in certain areas. Some people move to areas where we know vacation rentals are not allowed. I think those neighbors rights should also be considered. Lincoln County needs to look into each applicant’s location to make sure they are not violating CC&R’s. I can speak for my neighbors — we all purchased homes in an area with CC&R’s in place that do not allow vacation rentals. How is it fair for one neighbor to come in and change that.