New short-term rental ordinances adopted by Fredericksburg City Council

The Fredericksburg City Council has adopted new short-term rental ordinances which will tighten up regulations to encourage more single-family housing options.  Following Council’s unanimous vote, the criteria for special exceptions now adds consideration of schools for the Zoning Board of Adjustment, and removes the requirement to post an outward facing physical permit, effective January 1, 2024.  Under the 2022 ordinance, properties only qualified for a conditional-use permit if they were in the 75% threshold.  The new change, using a 50% threshold, will now allow the ZBA to use its discretion to determine when a special exception is appropriate.

Council and the Planning and Zoning Commission addressed STR permits in Fredericksburg’s historic district, confirming that there are roughly 400-450 short-term rentals currently operating, according to comprehensive plan data.  Council recently removed the ability for a property owner within the R-2 section of the historic district to seek a special exception.  While transfers of STR permits are allowed within 90 days of the sale of a house if they are automatic transfers permitted by right, this rule does not apply to STR’s in zoning districts.

Council approved adding a factor for the ZBA to consider whether any schools can operate within a 200-foot radius of a property seeking a special exception for an STR stranded property.

Council approved removing the requirement to post an outward facing physical permit on an STR.

Council approved the change of the criteria for a special exception to consider whether they’re properties in a 200-foot radius or zoned central business district, excluding school’s whether public or private.

As of November 7, the City of Fredericksburg has 1,055 active STR permits.  The Fredericksburg Police Department confirmed that it receives updated lists of the city’s active STR’s on a regular basis.