City: Proposed legislation to erase vacation-rental regs would undermine neighborhoods’ character
COVINGTON, Ky. – The City of Covington is voicing its opposition to a well-financed attempt in the Kentucky General Assembly to give out-of-state vacation rental platforms like Airbnb the unfettered right to operate in cities like Covington on their own terms.
The attempt – currently in the form of Senate Bill 110 but with the likelihood of its provisions being “jumped” to another bill further along in the legislative process – forces a number of changes in how cities regulate short-term or vacation rentals.
But those changes amount to this: They take away local voices and local controls.
“Covington leaders spent almost four years engaging with its property owners and neighborhood advocates to find the proper balance that works for our unique community,” Mayor Ron Washington said. “Our intent – and we believe we succeeded – was to retain property owners’ ability to create businesses and make money while also preserving the residential character of our neighborhoods, safeguarding the availability of housing here, and protecting our residents from the negative effects of bad actors who are using these rentals for parties.”
Covington is joining the Kentucky League of Cities and other cities in Northern Kentucky, like Newport and Independence, in urging state legislators not to pass the legislation. The language is currently housed in Senate Bill 110 but could be moved as a committee substitute into House Bill 490, which is further along in the legislative process.
Among other things, SB 110 seeks to prohibit all local governments from requiring the operator of a short-term rental to obtain a conditional use permit or imposing density-based restrictions on short-term rentals.
Those density-based restrictions were at the heart of four years of discussion in Covington, which began in December 2020, as seen at “Covington to regulate ‘Airbnbs.’ ” The back-and-forth community response culminated in June 2024, when the City last tweaked its regulations, as seen at “City streamlines process for obtaining short-term rental license.”
During that period, the City set a temporary moratorium on the issuance of new short-term rental licenses, saying the situation had “gotten out of control” as property owners and out-of-town businesses largely operating under the radar illegally were turning historic neighborhoods into de facto hotel districts. That had disrupted life in residential areas; created problems with parking, litter, and noise; cost City taxpayers money; and decreased the availability of housing.
The pause gave the City time to hold an aggressive public input campaign, including a survey that elicited over 250 written comments and testimony from almost 50 people during two public hearings.
Overwhelmingly, people in Covington – no matter whether they were neighbors of short-term rentals or lawful short-term rental operators – wanted any regulation to be set by local officials, Mayor Washington noted.
“In Covington, we believe in listening to our residents and businesses,” the Mayor said. “We are not in favor of a one-size-fits-all approach to this issue. It is my hope that legislators will not consider the legislation being championed by one single national corporate group during this session. Instead, I invite them to take time during the interim to visit Covington to learn more about the unique character of our historic neighborhoods and see how we use local control to establish the right balance between industry and community.”
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