Short-term rental regulations languish in St. Louis, despite judge’s go-ahead

Nearly a year ago, the city of St. Louis became the last big city in the country to enact regulations on short-term rentals. The bill passed by the Board of Aldermen was a hard-fought compromise that sought to balance the interest of real estate investors with neighbors who considered Airbnb and VRBO a blight. 

But just before the new rules were set to go into law this past May, Judge Joseph Whyte blocked them. That was supposed to be temporary, a chance to allow the judge to weigh the merits of a legal challenge filed by the owner of a short-term rental unit.

Five months later, however, the regulations remain on hold—but not for the reasons many people seem to think. The judge actually ruled in June that the city could begin enforcing almost all the regulations passed by the Board of Aldermen. It just needed to not charge the $150 annual fee on each short-term rental that triggered the lawsuit, and not block business entities from being permitted by the city. The problem is that city leaders either didn’t notice, or didn’t act upon, the ruling. 

Judge Joseph Whyte issued his ruling on June 9. At that point, the city could have immediately started requiring short-term rentals to be permitted, have an agent available 24/7 to address concerns, require a minimum stay of two nights, and not offer the space for parties. It’s done none of those things. But few people at City Hall seemed to be aware of the judge’s ruling until after SLM brought it to their attention yesterday. Alderman Bret Narayan, the sponsor of the bill establishing the regulations, told SLM he was hopeful the judge would eventually let the regulations go through minus the fee, apparently not realizing the judge had ordered just that.

City Counselor Michael Garvin, whose office successfully fought for Judge Joseph Whyte’s order to be modified, declined comment on why regulations were still languishing. And via a spokesperson, Mayor Cara Spencer said yesterday the city still does not plan to enforce the regulations “until we have clarity on the part of it that is currently playing out in court”—referring to the question of whether the city can charge the $150 fee. 

Spencer tells SLM  that the legislation had some problems and may need tweaking before it can be enforced. But Narayan said in a text exchange prior to the discovery of the judge’s order that the mayor’s office had discouraged him from pushing new legislation while the legal battle is underway. He also said he’d offered to introduce a bill that simply bans short-term rentals, but the mayor’s office was opposed.

Narayan suggested at that time that the lack of action on short-term rental regulations might be tied to the city’s tornado response. The judge initially blocked the regulations in late April; the tornado ripped through the city on May 16. And since that date, the Building Division has been busy dealing with condemned structures as well as homeowners seeking permits to rebuild.

“It got put on the back burner because the litigation started directly before the tornado and the city wasn’t going to have the building inspectors to ramp everything up as a result of them being tied up in the massive storm response,” he texted on Sept. 22. “[I]t was going to be a tight rollout anyway from what I understand, but the tornado just made it nearly impossible.” 

Spencer, for her part, disputes that characterization, and told SLM that she wants good regulations. “The city remains committed to effectively regulating short-term rentals in the city, and that we recognize that the legislation the Board of Aldermen passed last year had some issues, and we are actively working through our city attorney’s office to rectify those,” she said. “It is our intention to prioritize residents in our city while providing a path for short-term rentals to exist within the framework of our community, without taking over neighborhoods.” 

For neighbors chafing at the conduct of guests at short-term rentals, the delay has been frustrating. 

Michelle and Steve Pona, who live in Southwest Garden, previously fought a concerted battle against a neighboring short-term rental they considered a menace. That property owner finally sold. “We fortunately won our battle with the one next door,” says Michelle. “But we still have eight more of these monstrosities within 500 feet of our house. They’re everywhere.” 

She says nothing has changed since the city passed its regulations. Three properties nearby are under the same ownership, marketed collectively, and frequently rented together, bringing large groups and party buses. “This is not good neighbor stuff,” she says.

And although the Ponas no longer have to deal with the neighbor whose rental guests brought actual gunfire, that’s not the case in other parts of town. A 17-year-old girl was shot while leaving a party at a short-term rental in Carondelet in August. Two weeks later, a man was shot under similar circumstances in Gravois Park. 

Narayan said late yesterday that he is now working on revised legislation and should be ready to introduce a draft bill in a few weeks that makes the fixes mentioned by Spencer. And Alderwoman Anne Schweitzer says the city should move forward in enforcing its regulations without the fees.

“Badly managed short-term rentals are a safety concern for our city,” she says. “When we have unregulated short-term rentals, bad things can happen, like the shooting that occurred in the Carondelet neighborhood in August. The city should enforce the uncontested portion of the ordinance while the litigation plays out.” She notes that the bill passed by aldermen last year specifically allows the regulations to proceed without the fees. “The safety of our neighborhoods must be the priority.”