HUDSON — Mayor Kamal Johnson signed the proposed local law to regulate the use of short-term lodging in Hudson following a public hearing without comment Thursday.

The public hearing, scheduled for 4 p.m., was closed at 4:03 p.m.

The Common Council hosted a public hearing Oct. 13 and voted unanimously to pass the law Nov. 17. With Johnson’s signature, it will be enacted.

“This is an important step for the community,” Johnson said after signing the resolution into law. “There are a lot of misconceptions about this law. Owner-occupied STRs (short-term rentals) are still allowed and this law also helps their businesses. The council has been crafting this law for over two years and passed it unanimously.”

Under the law, short-term rentals are permitted in Hudson if a resident of the city operates up to three units on the same parcel where the resident lives.

A person who owns a residence in Hudson and lives there at least 50 days of the year may operate it as a short-term rental unit for a maximum of 60 days per calendar year.

A building or unit that is not permitted to operate as a short-term rental but was entitled to do so prior to the law’s adoption and was operating as a short-term rental prior to March 6 and paid a lodging tax for the period ending May 31, may continue to operate for a year from the date the law goes into effect.

The Zoning Board of Appeals may grant a short-term rental owner an extension to continue operating for up to three years after the law is enacted if the applicant demonstrates substantial investments were made to improve the property. The owner must provide documentation of receipts from the short-term rental and expect revenue through the extension date.

Applicants must also demonstrate the property cannot obtain a reasonable return on their investment if it is used for any other purpose and the lack of return is solely because of the prohibition of the short-term rental and not other market forces.

The zoning board may offer the minimum extension period needed to mitigate the loss of a reasonable return on the investment. The property owner can appeal the zoning board’s decision.

Check back for more on this developing story.

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