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*All comments will be entered into the public record. Comments must be received by January 10 to be addressed in the staff report.  

The next Planning Commission will be held on January 24, 2024. Community members are encouraged to attend and provide testimony on this code reform project.

Proposed Updates

After reviewing the current code, City planners have proposed draft recommendations that will help reform the short-term rental requirements and simplify the permitting program.

Create Short-Term Rentals Development Code

Current Code:

Short-term rentals are currently regulated as Bed and Breakfast Inns (BnB).

Proposed Update:

Short-term rentals would have their own process, regulations and standards set forth in the code.  

What it would do:

It would separate Bed and Breakfast Inns and Short-Term Rentals in Community Development Codes. This would allow each to have separate regulation that accurately reflect their specific needs and provide clear and objective criteria for approval process.

 

Streamline the Application and Approval Process

Current Code:

Short-term rentals require a Conditional Use permit and are regulated as Bed and Breakfast Inns. This Type III land-use process requires a neighborhood meeting, a one-time fee of $2,500+, 2–3 month approval time process, 500-foot radius public notice, and a public hearing.

Proposed Update:

• Renting out a portion of the home (like a bedroom, basement, or accessory dwelling unit): Require a Type I application, which could be issued in a matter of days. The owner would be required to live on the same property as the rental during the renter’s stay.
• Renting out a full home: Require a Type II application. Decisions based on clear and objective criteria would be made by Community Development Department staff. Property owners within 200 feet of the home would be notified, and any decision could be appealed to the City’s Planning Commission.

What it would do:

Lower barriers for owners to apply for a permit by shortening approval times, decreasing costs, and providing clear approval criteria for both types of short-term rentals.

 

Include Protections for Residential Neighborhood Concerns

Current Code:

Short-term rentals are currently regulated as Bed and Breakfast Inns (BnB). The BnB standards prohibit commercial uses such as weddings and conferences and require a parking plan based on the number of bedrooms available for rental. Multiple bedrooms can be rented at the same time.

Proposed Update:

The new short-term rentals code will have similar prohibitions as Bed and Breakfast Inns. It will prohibit gatherings, such as weddings, conferences, parties or any other commercial activities. The new code would also limit the number of rentals to only one at a time at each property.

What it would do:

Reduce the likelihood of high noise levels, excessive parking, garbage, and other potential community concerns.

 

Limit Impacts to Housing Affordability and Availability

Current Code:

Bed and Breakfast Inns or short-term rentals must be the primary residence of the operator. A property owner may own multiple locations, however, because the operator must reside on site, the dwelling unit is not removed completely from the long-term housing inventory.

Proposed Updates:

• Prohibit more than one rental at a time on any short-term rental property.
• Prohibit the owner of a full-dwelling short-term rental from operating more than one full-dwelling short-term rental within City of Hillsboro limits.

What it would do:

Put guardrails on the number of properties that can be acquired for short-term rentals by one entity. An overabundance of short-term rentals can drive up home prices as investors buy properties that could have been rented by community members looking for long-term rentals.

The 2023 Housing Needs Analysis evaluated the potential impact of short-term rental housing on current and future rental housing availability and affordability in Hillsboro. The analysis found that short-term rentals only represent a small percentage (0.4%) of Hillsboro’s housing stock, which is a lower share than other comparison cities in the Portland metro area.

The analysis also found that it is unlikely that short-term rentals are contributing significantly to the increase in rents and home prices in Hillsboro. However, short term rentals do have a small but measurable impact on home prices (approximately 1.5% since 2019). Therefore, the proposed amendments put guardrails on short-term rental ownership without banning them entirely.

Click here to view the proposed code amendment text.

Click here to view the accompanying Staff Report.

Learn more about Short-Term Rentals.