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2 <br />What is R-3 Occupancy? <br />R-3 Occupancy is a classification under building codes. It typically includes residential <br />structures where the occupants are primarily permanent in nature. It also includes certain <br />care facilities, congregate living facilities, and transient lodging with five or fewer guest <br />rooms and 10 or fewer occupants. <br />What is R-1 Occupancy? <br />R-1 occupancies contain sleeping units where the occupants are primarily transient in <br />nature. It includes transient lodging with more than ten occupants, hotels, and motels. R-1 <br />structures must meet fire code and ADA accessibility requirements. High-cost <br />improvements would likely be necessary for an existing single-family home to meet these <br />requirements. <br />What are the Fire Code Requirements? <br />Different occupancy classifications have different requirements under the MN State Fire <br />Code. Transient lodging facilities with six or more guest rooms or more than ten occupants <br />are classified as R-1. Some examples of R-1 requirements include, but are not limited to, <br />portable fire extinguishers, fire suppression systems, and fire alarm systems. <br />Washington County <br />The County requires licenses for lodging facilities but does not make a determination on <br />building occupancy. They alert local fire inspectors of new establishments. Local fire <br />inspectors may determine what fire safety requirements are needed. <br />Stillwater <br />Stillwater has their own occupancy classification system for short-term rentals. The city <br />classifies any short-term rental which is not owner-occupied as R-1, regardless of the <br />number of guest rooms. Owner-occupied, single-family homes with five or fewer guest <br />rooms and 10 or fewer occupants are classified as R-3. All other short-term rentals are <br />classified as R-1 and must meet certain requirements including fire rated corridors and <br />ADA features. <br />Surrounding Cities <br />City staff have reviewed the cities of Stillwater, Oak Park Heights, Woodbury, and Hugo. <br />Stillwater has the most comprehensive standards on short-term rentals. Stillwater began permitting <br />the use in 2017 and requires licenses to be approved by City Council. The City restricts the use to <br />specific zoning districts and caps the number of licenses to 50 outside the Central Business <br />District. Stillwater has specific standards on building maintenance, parking, and events. Stillwater <br />also has a strict “three strikes you’re out” policy to resolve nuisances. The City also classifies any <br />short-term rental that is not owner-occupied as R-1 occupancy, requiring that it meet certain fire <br />code and accessibility standards. This occupancy rule effectively prohibits most single-family <br />homes from being used as a short-term rental. <br />Oak Park Heights permits short-term rentals in all residential districts by a Conditional Use <br />Permit. The City has specific standards on code compliance, parking, proximity to other short- <br />term rentals, and dining. The City limits the occupancy to three transient guests per room and <br />three guest rooms per dwelling unit. Oak Park Heights may suspend permits for violation of the <br />CUP or nuisances. <br />Woodbury and Hugo do not allow short-term rentals.