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MEMORANDUM To:Saint Anthony Village City Council From:Stephen Grittman, City Planner Date:October 28, 2025 Request: Rental Housing Ordinances – 3rd Reading BACKGROUND The City Council considered its initial reading of two ordinances related to regulation of the rental of single family dwellings and licensing of all residential rentals in August. The direction for the ordinance was to build a cap on total single family rentals in the City, regulated in each of four sectors established by the Ordinance. Short-term rental housing was also an issue. Following that discussion, the Council tabled action to take of the discussion at a work session, held on September 9, 2025. At the work session, the Council’s discussion coalesced around accommodating a tightly limited allowance for the continuation of certain short-term rental single family homes. An updated first reading of Ordinances 2025-05 and 2025-06 was held on September 23, 2025. With consensus on the ordinance and its policies, second readings were held on October 14, 2025. This memorandum forwards two ordinances related to rental housing for the third reading. Ordinance 2025-05 The first ordinance, 2025-05, updates the draft ordinance related to caps on licenses and the short term provisions noted above. Attached is a clean version of this ordinance. As incorporated into the 2nd Reading version, the language proposed in this ordinance retains the general prohibition of short term rentals, but creates an exception that permits licensed rental houses, operating as short-term rental units, and located on property directly adjacent to the owner’s homestead property, to continue, including the opportunity to renew licenses on the standard annual basis. The language adds clauses that require termination of the short-term allowance when the owner no longer lives on the homestead property, sells the short-term property to other ownership, or converts the property to long-term rental. The language also requires full ongoing compliance with all Section 152 licensing requirements. The language does not refer to, or allow, existing short-term rentals that cannot meet these requirements. In that regard, those parcels must either convert to long term rental no later than at the time of renewal of their licenses, or if currently unlicensed, apply for a long term rental license and operate in compliance with those requirements. 68