Corpus Christi's short-term rental ordinance is facing a legal challenge after a Sept. 29 pre-suit claim was filed on behalf of Coastal Family Homes.
The claim was filed under House Bill 2127, which allows challenges to local ordinances that may conflict with state law.
The pre-suit notice was submitted to the City Secretary's Office by Christopher Munro and C&M Real Estate Holding LLC, which operates as Coastal Family Homes.
Interim City Attorney Buck Brice explained at a City Council meeting on Oct. 13 that under HB 2127 there is a waiting period of three months before a lawsuit can be filed.
The earliest date a lawsuit could be filed under HB 2127 is Dec. 29.
Due to the claim, City Manager Peter Zanoni said that a stakeholder committee reviewing
potential ordinance changes temporarily paused its work, during the Oct. 13 meeting.
Despite the pause, staff reviewed several recommendations the stakeholder committee discussed before work was suspended.
Stakeholders include the Association of Realtors, Visit Corpus Christi, short-term rental owners, Padre Island property owners, other local representatives and multiple law enforcement and city officials.
Pause on rental permits in Corpus Christi
This follows Corpus Christi City Council approving a moratorium on Aug. 25 for new permit applications for Type 1 short-term rentals, which refers to properties rented out by a person living at the property.
The moratorium, which remains in place until after Nov. 17, also reinforces how many Type 2 rentals — rented out by a person who does not live at the property — can operate in single-family residential areas, which will apply to both new applications and permit renewals.
Type 2 short-term rentals are limited to occupy no more than 15% of the total number of residential properties on a block face with at least seven residential units in single-family residential districts.
The moratorium was put in place after neighbors of short-term rental properties expressed frustration with excessive noise and overcrowding to council.
Current short-term rental permits valid through Dec. 31 remain active and will not be revoked.
Short-term rental permits are issued annually and are subject to renewal on a first-come, first-served basis.
Development services briefing
Interim Director of Development Services Yvette Wallace, delivered a presentation to council outlining the proposed changes discussed within the committee in September.
Wallace said Development Services compared short-term rental regulations nearby and across the state including Austin, San Antonio, Dallas, South Padre Island and Port Aransas
Short-term rental units in Corpus Christi are commonly along Ocean Drive, Laguna Shores and around Padre Island.
Wallace said there are an estimated 1,600 short-term rentals across Corpus Christi. Active permits generated about $350,000 in revenue during the past fiscal year.
These are the proposed changes:
Uniform categorization
- Eliminate distinctions between Type 1 and Type 2 rentals.
- Intended to create more consistent enforcement and stabilize density in single-family areas.
Bedroom occupancy limits
- Replace the current occupancy calculation method.
- Address concerns that living rooms and dining rooms can be counted as bedrooms.
- Establish stricter occupancy caps.
Remaining topics to discuss
- Zoning Density Caps- Would establish a ratio of short-term rental units per block-face in residential zoning districts.
- Spacing and Separation- Would set distance limits between each short-term rental unit.
- Parking Standards- Would establish required off-street parking ratios per occupant.
- This stems from a common complaint of parking congestion.
- Revocation and Appeals- Revisit what constitutes a violation and move appeals to the Planning Commission.
City Council discussion
City Councilwoman Vaughn voiced support for banning short-term rentals in single-family neighborhoods similarly to the City of New Braunfels, but Wallace said this has been challenged.
Vaughn also raised concerns about an Ocean Drive short-term rental property operated by Christopher Monro which is undergoing a legal challenge to an address change, which could leave restrictions in limbo.
In relation to code enforcement, Wallace said Development Services has improved the 3-1-1 hotline for submitting complaints and is being more active with issuing citations on the ground.
Wallace also said the Corpus Christi Police Department created a heat map for short-term rentals that have recurring complaints.
She said the police department is now able to contact the property operator or owner directly to address the complaint.
City Councilman Gil Hernandez asked Wallace how many citations to date have been given to licensed and unlicensed short-term rental operators.
Wallace said only "a handful" of citations have been issued and no short-term rental permits have been revoked this year.
Hernandez responded frustrated about the enforcement side of short-term rentals and urged city staff to commit to revoking permits of operators who have recurring complaints.
Wallace confirmed that the stakeholder committee will be meeting twice this month to continue discussions on changes and will meet with the Planning Commission on Oct. 28.
The first reading of the proposed updates to the city ordinance will be given to council on Nov. 10. The second reading for final consideration will be given on Nov. 17.
Felicity Guajardo covers breaking news and public safety. Contact her at felicity.guajardo@caller.com.
This article originally appeared on Corpus Christi Caller Times: City receives pre-suit claim on short-term rentals; discuss enforcement
