By Howard Fischer
Twitter: @azcapmedia

PHOENIX — Efforts to restore some sort of regulation of vacation rentals are in limbo.

The stalemate comes after legislation to give cities and counties back some of the powers they lost four years ago went down in defeat Thursday in the state House. Opposition came from both sides, with some seeing it as as an infringement on property rights and while others said the measure does not go far enough.

The 35-25 vote came despite last-ditch efforts by Rep. John Kavanagh, R-Fountain Hills, to convince colleagues from both sides of the political aisle that his HB 2875 was a reasonable approach to deal with the most serious problems created after the state took regulatory powers away from cities and counties four years ago.

Kavanagh said his measure preserved the ability of individuals to rent out homes, even homes that they bought in neighborhoods solely for the purpose of going into the business of renting them out for days at a time to visitors.

And he said that even his restriction on the number of people who could occupy a rental — two per bedroom — was altered to allow additional people to effectively camp out in the living room and elsewhere if there is sufficient floor space.

But that was not enough to bring around the votes of some Republicans who like the system the way it is now, with people free to buy up properties and convert them to what some have said are de facto unregulated hotels.

At the same time, several Democrats concluded that, at least for the time being, it was better to leave the current laws in place — and the problems created by short-term rentals — than to make what Rep. Randy Friese of Tucson called a “partial and flawed solution.” He said that will keep pressure on lawmakers to come up with something more comprehensive or, his preference, repealing the 2016 law entirely and once again allowing local regulation.

Kavanagh told Capitol Media Services after Thursday’s vote he’s not sure where he goes from here and how — if at all — he can recraft the measure to get something approved before the Legislature adjourns for the year later this spring.

There also is an alternate proposal being pushed by Sen. Kate Brophy McGee, R-Phoenix.

Like the now-failed Kavanagh measure, it would limit the number of occupants. But SB 1554 also seeks to limit the number of short-term rentals that any individual can own as well as the number of units of an apartment building that can be converted to short-term rentals.

So far, though, her measure has yet to go to the full Senate for consideration. Brophy McGee told Capitol Media Services she is trying to reach a deal that can get the necessary votes.

There also is a less far-reaching measure being pushed by Sen. J.D. Mesard, R-Chandler. His SB 1490 seeks to reclassify homes used for short-term rentals as commercial properties for tax purposes, denying the owners the lower taxes available for residential properties. It, too, is awaiting a Senate vote.

One problem in lining up the votes for any plan is that people see the issue from different perspectives.

For Kavanagh, representing a suburban residential area, the question is effect of these unregulated short-term rentals on neighbors. He said what’s in the bill will “hopefully give a little peace and quiet to people who have these in their neighborhoods.”

That means, for example, not just limits on occupancy but requiring renters to use off-street parking where available. And owners are required to post a phone number or email on the front door so nearby residents know who to call if there are noise or other complaints.

Rep. Cesar Chavez, D-Phoenix, did not doubt that things like noise are a problem. But he told colleagues that, as a representative of urban areas of Phoenix and Glendale he has a hard time being sympathetic.

“The problems of hearing noise late at night and calling the cops and they don’t come, etc., that’s something we faced in my district for many years,” he said, but no one cared.

“So now we’re here because Paradise Valley is saying, ‘Oh, there’s too much noise, there are too many parties in our communities,’ so we create legislation for it,” Chavez said. “Until we can create parity for the entire state and all of it’s communities I’m going to vote ‘no.’”

For Isela Blanc, D-Tempe, who represents a largely urban and middle class area, neighborhood disruption is not the problem she sees with short-term rentals. What is, she said, is investors have buying up properties to convert them to short-term rentals.

“It is pricing out Arizonans out of affordable housing,” she said. Blanc voted for Kavanagh’s bill as better than nothing.

But Rep. Kristen Engle, D-Tucson, said she voted against the Kavanagh measure because she thought that provisions like allowing cities to require installation of noise monitors went too far.