Article 59 will be considered at the Annual Town Meeting on Tuesday, May 7, 2024 at Nantucket High School at 5:00 pm.
Article 59 would allow STRs islandwide by right with no restrictions. This includes commercial STRs, meaning those properties used principally as STRs including full-time STRs.
Article 59 is being supported by those members of the community that have deep financial interests in real estate on Nantucket. They include Nantucket Together which was “originally formed in 2021 to oppose the restriction of rental property rights of all Nantucket property owners” (i.e., commercial and residential interests). It is also supported by Stephen Maury, the Owner of Congdon & Coleman Real Estate, who created the Save Nantucket Jobs campaign signs and literature. However, despite the appearance of an organized campaign, he has stated that he is the only person behind this effort.
It would primarily benefit off-island investors and commercial interests since approximately 80% of STRs are owned by individuals or entities outside of Nantucket.
Yes, every single STR currently operating on the Island would be protected as a pre-existing non-conforming use. This also means that the Town could never roll back or restrict the use of those properties as STRs. Town Counsel John Giorgio said of Cohen’s article, “From a zoning perspective, if his article were to pass, then short-term rentals would essentially be allowed as a principal use. If at a future Town Meeting you wanted to amend the zoning bylaw, for example, to make it an accessory use, we would run into issues in terms of what are legally protected prior non-conforming uses.”
YES. Proponents of Article 59 say we shouldn’t limit commercial STRs because working class people can’t afford to live here anyway. But regulating STRs is not about bringing the market value of houses down (although it could since STR investors have been competing with year-rounders for houses in mid-island neighborhoods), it’s about opening up existing houses for housing alternatives such as long-term rentals. Many people know someone who has been forced to move because their landlord converted their long-term rental into a short-term rental. In fact, Nantucket lost over 600 long-term rentals over the last decade according to the U.S. Census.
We have found the opposite to be true. STRs are driving up home prices, while a study sponsored by ACKNow found that STRs provide little benefit to the local economy. Indeed, year-round households spend 3x more on the island than seasonal residents and visitors. Specifically, the study found that STRs contributed 5 percent of all seasonal resident and visitor spending and 1 percent of all spending attributable to year-round and seasonal units.
The Ward v. Grape decision did not outlaw all STRs. Judge Vhay’s decision recognized the right of Nantucket homeowners to rent their properties on an accessory-use basis (i.e., the property is rented for less time than used by the owner/resident). The decision held that commercial STRs (i.e., those houses only used as STRs) are prohibited in residential districts on Nantucket. People who occasionally rent their homes would be allowed to continue to rent this summer and in the years ahead as long as the STR use was accessory to the principal use as a home. Commercial STRs are not the same as STRs used on a customary and accessory use basis. In addition, property owners have always had the right to rent their property. This includes renting out rooms, garage apartments and the like. The judge’s decision in the Ward case does not alter this in any way. It just makes clear that full- or mostly full-time rentals of properties in residential districts is illegal.
This is the fourth attempt to gut residential zoning in as many years. The voters have rejected this for three straight years.
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