The City Council took a first look at proposed changes to short-term rental laws April 14 that would strengthen city registration enforcement, add fees for noncompliance and add to inspection laws.

NORTH ADAMS — If a proposed rule passes later this year, the city could fine short-term rental owners for noncompliance, with those fees helping to fund affordable housing projects.

The proposed rule change is part of a slate of short- and long-term rental ordinance updates introduced by City Council President Ashley Shade at an April 14 council meeting. Shade has spent the last year redrafting rental ordinances to clarify the building inspection process and close the loop “to make sure someone can't operate a rental without properly maintaining it.”

After the city passed a short-term rental ordinance in 2023, Shade said the legislation allows short-term rentals to exist in the city, but “didn’t put enough regulations in for the enforcement."

Now, multiple city boards and committees will review the changes that Shade says have three key goals: making regulations more enforceable, limiting how many short-term rentals an individual can own and collecting fees for noncompliance.

Shade proposed the changes as she and the city embarked on the process of reviewing the city code, which was last updated in 1964. As part of a two-year project beginning this year, the city is using $20,000 to work with consultants Code360 to review its ordinances, identify contradictions, remove outdated language, and make them more concise.

The recodification committee will meet every Thursday in City Council chambers to review every line of city code until it is finished or until its August 2027 deadline.

Shade proposed changes to city short-term rental registration requirements in Chapter 3 of city code, including clarifying inspection and renewal procedures and strengthening requirements for rental operators.

Starting in 2027, short-term rental owners would be required to register their properties annually in April. The registration will require an inspection conducted by city inspectors, and following that inspection, the city will give applicants a form certifying they are in good standing with their property.

The new ordinance also lays out good standing requirements, including no outstanding fines, no unresolved code violations and compliance with all necessary taxes, licenses and permits for operators.

It would also create a cap on individuals owning “in whole or in part, or be an officer, director, member, or partner of any entity that owns or operates" more than four properties or ten units of non-owner occupied short-term rental units within the city.

Shade made it clear that this cap would not affect property management companies or owner-occupied housing units.

If short-term rental owners fail to comply with these rules, they could face fines and penalties, with those funds deposited into a dedicated account for the North Adams Affordable Housing Trust, which was officially established Jan. 1.

The changes also outline what information and documents are needed when owners request inspections for short or long-term rentals, part of the city’s attempt to improve enforcement efforts by making information clearer to the public.

Failure to include all the required information will render an inspection request incomplete.

Shade proposed amendments to city zoning that would align the zoning ordinance with the short-term rental registration requirements by making compliance with Chapter 3 of city code a condition of lawful operation and zoning approval for short-term rental use.

Shade said she spent “a lot” of time with the city’s Department of Inspection Services to craft the changes.

“They’ve all chimed in on what is presented to you [and] they're excited to have some teeth behind them,” she said.

After the changes were presented to the council last week, councilors voted to refer them to committees for review, including general government and public safety, as well as the Planning Board. Those groups will review the changes throughout May and June, before they come back to the council for a final vote.