Date: July 23, 2012 File No.: LA 6500-20 – Guest Cabins To: Lasqueti Island Local Trust Committee For meeting to be held August 30, 2012 From: Linda Prowse, Planner 2 CC: Chris Jackson, Regional Planning Manager Re: Lasqueti Land Use Bylaw Guest Cabin Regulations Review At the July 12, 2012 Lasqueti Island Local Trust Committee meeting, the Local Trust Committee (LTC) identified “Review of Land Use Bylaw Guest Cabin Regulations” as one of its top priorities. This report will provide background information, identify issues relating to the current guest cabin regulations, and propose first steps that could be undertaken to review this issue with the community. BACKGROUND: Since 1986, on private land that is not in the Agricultural Land Reserve (ALR), the Lasqueti Island land use regulations allowed a residential density of one single-family residence and one guest cabin per 10 acre parcel of land or per each 10 acres on larger parcels. These guest cabins are intended for the temporary use of non-paying guests of the owners, and are not to be rented, nor occupied by the owner while the residence (dwelling) is being rented. In 1999, two drafts of revisions to the old Rural Land Use Bylaw proposed to modify the prohibition of rental use and owner occupancy of guest cabins. After much public input during the review process, both drafts were rejected, and the LTC of the day stated that it would review the issue. In 2001, a questionnaire was launched attempting to find out the community wants regarding use of guest cabins on private, non-ALR land. A summary of the results of this questionnaire is not available; however a copy of the questionnaire is attached (see Attachment No. 1). In 2004, the LTC undertook a review of the Official Community Plan (OCP) and Land Use Bylaw (LUB) and circulated an Options Workbook (see Attachment No. 2) to the Lasqueti community to gauge the community’s sense of priorities. There were 86 responses to the workbooks distributed, and 63 of those responders stated that Guest Cabins should be the No. 1 priority. Moreover, the following was noted when tallying all of the workbook responses relating to Guest Cabins: . 29 said the bylaw regulations shouldn’t change, and to keep the current definition and other provisions . 17 said to change the definition of guest cabin so that the owner is allowed to live in the guest cabin while the main house is rented out on a long-term basis (i.e. rented for more than 30 days). . 14 said to change the definition of guest cabin so that both the house and cabin can be rented out on a long-term basis (i.e. more than 30 days), provided that the property is more than 10 acres in size. . 24 said to change the definition of guest cabin so that both the house and cabin can be rented out on a long-term basis (i.e. more than 30 days), regardless of the property size. . Some general notes taken from the Workbook included: Owners should be allowed to use their guest cabins; bylaws must be enforced; it would be OK to rent the cabin if there is a 6 month maximum; What if the owner lives on the adjacent lot – this should be Ok too!; and density should be subject to proof of potable water. In 2005, a community information meeting and working session was held, as well as an Advisory Planning Commission (APC) meeting on the subject of Guest Cabins. The APC did not pass any formal resolutions, but commented that there was general agreement on the following: . Leave rules as they are . Usage as desired could be allowed through Temporary Use Permits . Enough people want rental of some sort and they should be given consideration . There needs to be a public process before any changes are made . Do we need to change the bylaw? . Guest cabins should be considered on any size lot, not just on those over 10 acre . The cost of TUPS or rezoning (or otherwise getting public process on guest cabins rentals) should be kept low. In 2006, Lasqueti Island Official Community Plan Bylaw No. 78 and accompanying Land Use Bylaw No. 78 were adopted and are presently in effect. Below is a summary of the current regulations relating to guest cabins: CURRENT POLICY AND REGULATIONS: FROM OFFICIAL COMMUNITY PLAN NO. 77 3.1 Residential Land Use Objective 4 – To support the establishment of affordable housing, special needs housing and provide the opportunity for Island seniors to remain in the community. Policy 2 – Dwellings are meant for long term residential use occupied by the owner or a renter on a long term basis. Policy 3 – Guest cabins are not intended to be used for long term residential purposes Policy 9 – For each dwelling permitted, normally associated accessory buildings and structures plus a guest cabin should be permitted 3.2 – Enterprise and Resource: Commercial, Industrial, Agricultural and Forest Lands Policy 22 – The zoning bylaw may provide a zone in which guest cabins may be used for short term visitor and tourist accommodation on a commercial basis. Policy 23 – An applicant who wishes to conduct vacation rentals on a short term basis must rezone either the entire property or individual guest cabins before such a tourist accommodation use is permitted. FROM LAND USE BYLAW NO. 78 Definitions: “dwelling “means a building containing one kitchen, sleeping and living areas, in either a self-contained room or set of habitable rooms, used or intended for use as one (1) residence; for clarity, a travel trailer, mobile home, bus, vessel or other recreational vehicle actively used for long term habitation is considered a dwelling; “floor area” means the total area of each floor in a building where the floor to ceiling height is greater than 1.5 metres (5 feet), measured to the interior surface of the perimeter walls, and includes the floor area of lofts, balconies, decks, porches and similar projections enclosed by siding, glazing, screening or other materials; “guest cabin” means a stand alone, detached building used for the accommodation of non-paying guests of the occupants of a dwelling on the same parcel; “residence” means occupancy or use of a building or structure or part thereof as a place where an individual or group of individuals live together in common occupancy sharing kitchen and living areas; “sleeping unit” means a building intended for sleeping, which contains not more than one bedroom and does not contain a kitchen or living area. Section 3.8 – Guest Cabins and Temporary Use of Recreational Vehicles (3) Where permitted, a travel trailer, mobile home, bus, vessel or other recreational vehicle may be used in place of a guest cabin on a lot for non-commercial accommodation provided that the floor area does not exceed 56 square metres (602.7 square feet). (4) A guest cabin shall not exceed 56 square metres (602.7 square feet) in floor area. (5) A guest cabin is not a dwelling and not to be actively used for long term rental accommodation purposes. (6) A guest cabin may only be used as a commercial short-term rental or less than 30 days provided the appropriate Commercial 3 zoning is in place. Section 3.9 – Dwellings and Guest Cabins Per Lot (1) Unless otherwise regulated in this Bylaw, any upland lot is permitted to have one dwelling. (2) Unless otherwise regulated in this Bylaw, the following number of dwellings is permitted per lot: (a) Subdivision District A: one dwelling per four hectares (9.88 acres) of lot area (b) Subdivision District B: one dwelling per eight hectares (19.79 acres) of lot area (c) Subdivision District C: one dwelling per 65 hectares (160.61 acres) of lot area. (3) For each permitted dwelling, a guest cabin not exceeding 56 square metres (602.7 square feet) in floor area is permitted. Section 4.6 – Commercial 3 – Tourist Accomodation (C3) (1) Permitted Uses The uses permitted in Section 4.2 plus the following uses and no others are permitted in the Commercial 3 zone: (a) Tourist accommodation, for accommodating tourists, visitors and the traveling public. (2) Maximum Number and Size of Buildings and Structures The following buildings and structures and no others are permitted in the Commercial 3 zone: (a) Buildings and structures permitted in Section 4.2; (b) Despite Section 3.9, the following density of dwellings and guest cabins apply to land in the Commercial 3 zone: (i) One residential dwelling and one guest cabin is permitted per parcel, and (ii) One additional dwelling and one additional guest cabin is permitted for each 4 hectares (9.88) of parcel area over 4 hectares (9.88). (c) A guest cabin shall not exceed 56 square metres (602.7 square feet) in floor area. (d) Despite Section 3.8 one (1) guest cabin of a maximum size of 70 square metres (753 square feet) is permitted on Lot A, Plan VIP69547 Section 4, Lasqueti Island, Nanaimo District. Interpretations of Land Use Bylaw What is a guest cabin? A guest cabin is determined by type of structure (detached building); size (not more than 56 sq. metres); use (temporary use by non paying guests), and its association with an already existing permitted dwelling on the same lot. All four factors must be present before a structure can be considered a “guest cabin”. Since there is already a definition for “sleeping unit”, a guest cabin is more than a detached building for sleeping. Since the bylaw specifies that a “sleeping unit” cannot have a kitchen or living area, the bylaw must intend that guest cabins are to be distinct from sleeping units and can having kitchens and living areas. How is a guest cabin different than a dwelling? A guest cabin is regulated by size and cannot be larger than 56 square metres, AND it must be associated with an already existing dwelling on the same lot, AND it can be occupied by non-paying guests. How do you define “long term”? “Short Term” rental is less than 30 days according to Section 3.8(6) of the bylaw that states “a guest cabin may only be used as a commercial short-term rental of less than 30 days provided the appropriate Commercial 3 zoning is in place”. If “short term” is less than 30 days, “long term” is 30 days or more. ISSUES SUMMARY: 1. Current Regulations In the Land Based zone, a dwelling must exist on a lot that is 10 acres or larger for a guest cabin to exist, and the guest cabin is regulated by size and can only be used by non-paying guests of the resident of the dwelling. In the Commercial 3 zone, guest cabins may be used for short term vacation rental purposes. A person who owns property in the Land Based zone could apply for a rezoning to the Commercial 3 zone to allow for short term vacation rental of their guest cabin. 2. Bylaw Enforcement A complaint has recently been received by the Islands Trust about a guest cabin being used as a dwelling. This has raised the issue of the way guest cabins are used or could potentially be used on Lasqueti and has prompted the Local Trust Committee to make this issue one of its top three priorities. Land Use Bylaws, such as Lasqueti’s, which permit guest cabins to be occupied only part time for non-paying guests invite violations to take place as the temptation to occupy them and earn revenue from rent is very high. Enforcing bylaw provisions relating to non-paying and length of stay of guests can be difficult. 3. Density According to the 2008 Lasqueti build out map, there are approximately 376 existing lots, with 136 of those lots having subdivision potential and from those, 860 new lots could potentially be created for a total of 1236 maximum lots. Therefore, it is currently possible to have 1236 dwellings and 1236 guest cabins if the build out potential is realized. STAFF COMMENTS Below are a number of potential ways for guest cabins to be used that are currently not permitted under the Lasqueti Official Community Plan and Land Use Bylaw. 1. Short Term Rental Accommodation Short term guest cabin rental accommodation is ONLY permitted in the Commercial 3 zone, but could be extended to the Land Based zone. Currently, a rezoning is required for this scenario to take place. The current fee for an Official Community Plan and Land Use Bylaw amendment is $4,400; a Land Use Bylaw amendment is $3,520. 2. Long Term Rental Accommodation All dwellings can currently be rented long term (i.e. more than 30 days), but the Official Community Plan and Land Use Bylaw do not allow guest cabins to be rented or used long term. The following have been identified as potential situations when long term rental accommodation of dwellings and/or guest cabins may be desired: a) Resident lives in the dwelling, but provides long term accommodation (either non paying or rental) in a guest cabin to helpers and/or caregivers who live in the guest cabin. This situation can arise due to an aging population and the need of owners to have help maintaining property, and themselves, so that they can stay on Lasqueti when they are older. b) Land owner rents the dwelling, and wishes to stay in the guest cabin from time to time. This situation can arise when an owner wishes to temporarily stay in their guest cabin while their house is rented out on a long term basis. For example - an owner leaving the island in the winter and returning to the island in the spring, summer and autumn months. c) Land owner rents the guest cabin for the long term for financial gain. This situation can arise if there is a need for providing housing for people requiring long term rental accommodation on Lasqueti. This situation can also arise when people are purchasing property as an investment and do not necessarily intend to live at the property, either immediately or otherwise. 3. Temporary Use Permits Since the last bylaw review, the Local Government Act was amended. One of the changes was to Temporary Use Permits (TUP), and includes the ability to issue permits for residential uses on a temporary basis, with the ability for the LTC to consider renewals. The option of using Temporary Use Permits to determine when a guest cabin may be used for long term rental and/or short term rental is an option that may now be viable. Temporary Use Permit condition should be drafted and approved by the LTC, after an extensive public consultation process. Temporary Use Permit applications are dealt with on their own merits, and the community would have the chance to comment on each application. There is no precedent, and the LTC has complete discretion on each application. These permits are valid for up to three years, with an option to renew for a further three years. After that, a new application can be submitted and new Temporary Use Permit issued. This differs to a rezoning application which is permanent. The current fee for a Temporary Use Permit application is $770, and a renewal is $165. These fees may be modified. The maximum amount that may be charged is the average processing cost of applications. RECOMMENDATIONS: As first steps, it is recommended that the Lasqueti Island Local Trust Committee: 1. Forward the July 23, 2012 Guest Cabin Regulation Review Report to the Advisory Planning Commission; 2. Request the Advisory Planning Commission to hold a public information meeting regarding regulation review and guest cabin use on Lasqueti; and 3. Request the Advisory Planning Commission to make recommendations to the Local Trust Committee regarding guest cabin regulation review and guest cabin use on Lasqueti. Prepared and Submitted by: Linda Prowse July 23, 2012 Planner 2 Date Concurred in by: Chris Jackson July 24, 2012 RPP, MCIP, Regional Planning Manager Date Cc: Attachment No. 1 – Guest Cabin Community Questionnaire circulated in 2001 - LUB and OCP Workbook circulated in 2005 – portion relating to guest cabin questions