The city decided not to fight the North Carolina Court of Appeals’ decision that stated the Short-Term Lodging registration violated state laws. Those laws required homeowners to register their property with the city, a 2% cap was placed on rentals in certain areas along with a 400-foot separation between units.
State law required the city to refund residents which included the registration, convenience, and the accrued 6% interest fee. The city collected $9300 dollars in fines that will also be refunded, but no exact timeframe has been announced.
Councilmember Luke Waddell said he felt the public is less concerned about short-term rentals compared to four or five years ago when the ordinance was being crafted, and that government regulation of private property should be limited.
“I think the information we have now on short-term rentals along with the public's perception and the public's comfort overall in general outlook on short-term rentals has changed along with the market and what the market is looking for,” he said.
The short-term rental ordinance is expected to be amended at its July meeting, and will still include some regulations that aren't registration, fee, or caps. City staff will begin processing refunds and checks will be mailed to registered residents by the end of June.
Related: Wilmington waves white flag on short-term rental restrictions, aims to reimburse residents
