Council approves narrow short-term rental waiver after heated debate, sends inspections follow-up

The Portland City Council on Monday approved an amendment to Chapter 6 of the Portland City Code changing owner-occupied short-term rental registration rules, voting 5-4 after residents and councilors debated loopholes, documentation and potential abuse.

Corporation counsel described the amendment as a response to owners who could not provide proof of a homestead exemption or a recent tax return because they had purchased properties after filing taxes for the prior year. Jessica Quadripani, director of permitting and inspections, said staff would accept alternate documents such as a filed deed or a purchase-and-sale agreement and would still require photo identification showing the owner's address.

Several homeowners urged the council to avoid inadvertently ousting residents who bought properties late in the year. One resident described buying a unit in April and said, "We literally cannot provide those two specific forms" and that losing a short-term rental license would be a "huge burden" (public comment).

Opponents and some councilors warned the proposed flexibility could create permanent loopholes. Councilor Peltier said the change "could be abused" and urged clearer, concrete guidelines; Councilor Grama and others also recommended sending the proposal to committee for refinement.

Councilor Sykes offered an on-the-fly amendment limiting the relief to a one-time waiver per owner and barring its use to create precedent. The council added language clarifying the waiver "may be granted only once per owner and shall not create a precedent for future determinations." Members also agreed to exclude waivers for LLCs if legally feasible and directed inspections to provide a six-month report on waiver usage.

The amendment passed on a roll call after the amendment vote (final main motion as amended passed 5 to 4). Mayor Diane and several councilors said the change aims to balance relief for bona fide new owner-occupants with protections against exploitation. The ordinance will take effect in January as part of the council's schedule for implementing changes.

The council directed staff to return within six months with data on how many waivers were requested and granted, per the motion added during debate.