Bethlehem is once again looking to crack down on Airbnbs. Will the city succeed this time? – The morning call

After several failed efforts to tighten rules governing short-term rentals, Bethlehem is seeking to crack down on Airbnbs, and a series of ongoing zoning hearings will determine the city’s legal ability to do so.

Two Bethlehem landlords who have rented homes on Airbnb are the focus of the city’s ongoing efforts. The owners, married couple Mary Ellen Williams and Jay Brew, are appealing a citation the city issued against them last summer for renting a home on Airbnb in the city’s historic district.

The city’s efforts to regulate short-term rentals stem from complaints from neighbors, who say Airbnbs brings unruly guests to their quiet neighborhood. But Williams and Brew say the city’s rules for Airbnbs are unclear and inconsistent, and they’re frustrated by the five-year saga.

If the council rules in favor of the city, Bethlehem will have more leeway to enforce Airbnb regulations, even if the council failed to pass Airbnb regulations in 2020. Either side could also appeal the decision in the Pennsylvania Court of Common Pleas.

The next zoning hearing on the case will be on March 9.

The city against Airbnbs

The dispute between Airbnb owners and the city began in 2017 when the city council passed an ordinance regulating Airbnbs in Bethlehem in response to complaints from residents.

The ordinance required landlords to live on the property they rented, limited them to renting up to two bedrooms for up to 30 days, and outlined inspection and licensing requirements for landlords. The council passed the order after numerous complaints from neighbors in the Historic District who did not like Airbnbs in their neighborhood.

Although Brew and Williams aren’t the only Airbnb tenants in Bethlehem, their properties in the historic district have drawn backlash from neighbors, who have called on city hall to better regulate short-term rentals.

Brew and Williams previously operated four Airbnb properties in Bethlehem. Their website calls the rentals “the only 5 star accommodations in Lehigh Valley”. One, dubbed the “Christmas Town Mansion” at 4 W. Church St., rents seven suites and features a Victorian-style dining room with a crystal chandelier and a movie theater. surround style, according to the company’s website.

Brew and Williams sued the city over the ordinance. A Northampton County judge initially ruled in favor of Brew and William and said the city should address Airbnbs through an amendment to the city’s zoning ordinance, not a standalone law.

But a 2019 state Supreme Court ruling determined that municipalities can, in fact, completely ban short-term housing in single-family zoning districts. The decision gave Bethlehem the green light to cite Airbnb owners the city considers to be in violation of the zoning ordinance – which it did in the case of Brew and Williams.

Zoning board hearings

Bethlehem issued Williams and Brew a Notice of Violation on July 15, 2021. In it, the city says the landlords are violating the city’s zoning ordinance because the use of the short-term rental is not “not permitted generally and/or does not qualify as any number of specific uses” permitted in the City Historic District.

Of their four Airbnb properties, only Lofts on Main are still operating in January, according to Brew. He said the city has been “kicking down the street” on Airbnb regulation for the past five years and the rules for renting an Airbnb have never been clear.

“After four years, we don’t know what the regulations are. It’s kind of a problem. We kicked that all the way,” Brew said. “The city does not have the capacity to say yes or no.”

The city’s zoning ordinance indicates where “bed and breakfasts” are permitted to exist in the city, but defines them as properties where owners live on-site. Brew and Williams do not live in the properties they rent, although they did live in the Historic District. Brew thinks the city needs to more explicitly state where short-term rentals are allowed in the city.

Deputy Director of Community and Economic Development Alicia Miller Karner said the city wants to allow short-term accommodation in primarily commercial or industrial neighborhoods, and only in special circumstances in high-density residential areas. But the city council failed to pass the Airbnb regulations via a zoning ordinance last year that would have clarified the city’s position, with some council members concerned the changes were too restrictive.

“I think it goes too far, and I think it punishes people who do a good job of renting out their homes,” former council chairman Adam Waldron said at the time. “They encourage people to come to Bethlehem, spend their money and visit our downtown.”

Ultimately, it will be up to the Zoning Hearing Board to decide whether the city is justified in citing Brew and Williams. They risk a $500 fine if their appeal fails.

Disgruntled neighbors

Some Bethlehem neighbors disagree with Waldron.

Bruce Haines, managing partner of Hotel Bethlehem and a resident of the city’s historic district, sees plenty of reasons to oppose Airbnbs. Unchecked guests partying late into the night. Commercial intrusion into their quiet neighborhood. Neighbors replaced by temporary guests. It hurts hotel business, on Main Street too.

Haines agrees with Brew on one thing: the city hasn’t done enough to fix the problem.

“In our minds, the previous city administration was not diligent in bringing this case to a conclusion, and it has dragged on for four years without any resolution, and [the Airbnb] continues to operate,” Haines said. “So it’s very disappointing to all of us that this drags on and on.”

Haines said Bethlehem should only allow Airbnb in commercial areas of the city, like Main Street, essentially treating them like hotels subject to the same regulations.

That’s why Haines intervened legally in the zoning hearings and hired attorney Andrew Schantz of Davison & McCarthy of Allentown to represent him. Schantz declined to comment for this story.

Haines is acting as a third party to the hearings through an intervention process because he lives in the historic district and therefore has standing to participate.

As for the owners, even though they pursue their appeal, they have decided that the back and forth between the city and angry neighbors is more trouble than it’s worth. The ordeal took an emotional toll, Brew said – they moved from Bethlehem to Bath in early January and sold most of their Airbnb properties.

“We’re fed up,” Brew said.

Morning Call reporter Lindsay Weber can be reached at 610-820-6681 and [email protected].