Updates to the Public


Nantucket Short Term Rental Work Group (STRWG) Update to the Public: June 2023

In May 2022, in response to competing articles seeking to regulate short term rentals on Nantucket, Town Meeting voted to form a work group to study the issue. Over the following months, members from the Select Board, Planning Board and Finance Committee established the Short Term Rental Working Group (STRWG) and hired a professional facilitator. The STRWG includes at-large individuals along with representatives of organizations and Town bodies, encompassing a wide range of opinions and interests. The STRWG was charged with developing sensible guidelines for STRs that consider multiple interests and have broad public support.

Since October 2022, STRWG members have invested over 60 hours each – as well as innumerable hours reading background materials, contacting other towns and municipalities, defining and refining positions, etc. – in civil, thoughtful, and detailed deliberation, convened two high-attendance public input sessions, and accomplished the following1: 

● Held 18 3-6 hour STRWG meetings with time for public comment, 7 subgroup meetings, and STR discussions with both the Planning Board and Select Board

● Developed and refined a set of policy goals that STR regulations would seek to achieve 

● Developed and refined a set of data questions to inform STR policy, and worked closely with an independent data consultant to compile and analyze Nantucket STR data

● Led two interactive and highly attended public input sessions - an initial session in December (attended by 183 people) to hear and explore community concerns about STRs, and a follow up session in June (attended by 169 people) to elicit input on a draft policy package

● Examined STR regulations from comparable communities, and spoken to representatives of those communities (including Scottsdale, AZ; Palm Springs, CA; Honolulu, HI; and Woodstock, VT) to identify key lessons

● Investigated detailed legal, planning, and zoning questions with Town Counsel and consultants

● Brainstormed and explored in depth a range of potential STR policies, including analysis of what each might achieve and what the intended and unintended consequences would be, and drafted and refined a package of policies designed to meet a core set of objectives.

On June 27 2023, after extensive deliberations to overcome remaining concerns and objections to find a mutually acceptable package agreement, the STRWG reached consensus, defined by the STRWG Framework as 7 votes out of 9.

Participants supporting:

  • John Kitchener, at large member
  • Jim Sulzer, at large member
  • Karen Zagayko, at large member
  • David Iverson, Planning Board Representative
  • Peter N. Schaeffer, Finance Committee Representative
  • Kathy Baird, Nantucket Together Representative
  • Thomas Dixon, Affordable Housing Advocate Representative

Two participants opposed the agreement:

  • Peter Kahn, ACNVT Representative
  • Julia Lindner, ACKNow Representative

The following is a brief description of the elements of the STRWG Consensus Agreement. The actual agreement will be found in the legal by-law language drafted and refined by the Town Counsel and Zoning Consultants.

By-law Purposes and Intents:

(1)  Protect the time-honored tradition of home rentals on Nantucket and preserve economic opportunities for persons to keep their homes, now and into the future, through short-term rentals, to allow such persons to afford to live either full-time or part-time on Nantucket;

(2)  avoid adverse impacts on the local economy stemming from a loss of existing short term rental revenue, STR taxes, and visitor spending, and adverse impacts to property owners who purchased their homes based on previous assumptions;

(3)  prohibit additional corporate ownership and discourage investor-only ownership of residential properties for the exclusive purpose of operating them as short-term rentals rather than housing for either full-time or part-time residences;

(4)  reduce the neighborhood churn caused by numerous turnovers of occupancy of STRs in residential neighborhoods;

(5)  limit the conversion of residential units to short-term rentals which has had the deleterious effect of removing residential units from the available year-round rental housing stock; and

(6)  provide a regulatory structure that reduces the threat of litigation challenging short-term rental use by full-time and part-time residents.

Definitions Section (for General and Zoning Bylaws):

To include Apartment Building, Attainable Housing, Corporation, Cottage Colony, Deed-Restricted Unit, Dwelling Unit, Hosted Stays, Townhouse, and others as considered needed by Town Counsel and Planning Consultant

General Bylaw Provisions (to take effect ONLY if Zoning Bylaw also passes):

  • An owner may register to operate only one property as a short-term rental. The property can contain up to two dwelling units in a single registration, as long as all dwelling units covered by the registration are located on the same lot and are rented to the same person or legal entity.
  • Dwelling units owned by a corporation shall not be eligible to receive a certificate of registration - every shareholder, partner, and members of Trust, LLCs, S-Corporation or other legal entities must be a “natural person”.
  • Short-term rentals are not allowed in deed restricted units for affordable or attainable housing or any other unit in an apartment building or townhouse owned, operated, and managed as rental housing. 
  • Short-term rentals in apartment buildings, multi-family dwelling units, and townhouses will be limited to 4 weeks per year.
  • No short-term rental unit may change occupancy more than 9 times during July and August .
  • If a property is sold after this bylaw, or with new construction completed after this bylaw, the unit cannot change occupancy more than 4 times during July and August. This limitation will be in place for 5 years, after which time the unit’s change of occupancy limit reverts to 9 times.
  • Certificates of registration received prior to this Bylaw (or within 60 days of the Town’s establishment of the rental registration program, whichever is later), may continue in accordance with previous guidelines, except for limit of 9 changes of occupancy in July and August, until the dwelling unit is transferred or conveyed, or the certificate of registration is not renewed. This does not apply to inheritance.
  • Hosted Stays and cottage colonies are exempted, and an official or agency designated by the Select Board can provide waivers for special circumstances.

Zoning Bylaw Provisions (to take effect ONLY if Zoning Bylaw also passes):

  • Appropriate Definitions (to be finalized by Barrett and Giorgio)
  • Amend the use chart to allow Short-term rentals as a permissible use in all districts except CI.

Optional General Bylaw Provision (to be voted separately but only relevant if previous Bylaw passes):

  • *A waiver from the provision limiting newly purchased properties will be available if the owner or at least one member of a Trust, S-Corporation, or LLC can give proof of residing in the property at least 6 months and a day in the year after purchase, or a subsequent year, in which case the change in occupancy during the months of July and August shall be limited to 9 times. 
    • *language to be adjusted to best address concerns about dormant commerce clause

Additional Provisions (stand alone and each voted separately)

  • Majority Vote: Pass the 3% Community Impact Fee - a 3% fee on rent for properties that are not the owner's primary residence if the owner has 2 or more short term rentals. At least thirty-five percent (35%) of the impact fee must be dedicated to affordable housing or local infrastructure projects. The remaining 65%, will be general fund revenue of the city/town and may be appropriated for any municipal purpose.
  • 2/3s Vote: 100% of any Community Impact Fees will be dedicated to affordable housing or local infrastructure projects.

Nantucket Short Term Rental Work Group (STRWG) Update to the Public: April 2023

In May 2022, in response to competing articles seeking to regulate short term rentals on Nantucket, Town Meeting voted to form a work group to study the issue. Over the following months, members from the Select Board, Planning Board and Finance Committee established the Short Term Rental Working Group (STRWG) and hired a professional facilitator. The STRWG includes at-large individuals along with representatives of organizations and Town bodies, encompassing a wide range of opinions and interests. The STRWG was charged with developing sensible guidelines for STRs that consider multiple interests and have broad public support. The STRWG strongly implores the residents of Nantucket to give them time to complete their work.

Since October 2022, STRWG members have invested 40+ hours each, convened a high-attendance public input session, and accomplished the following1:

● Developed and refined a set of policy goals that STR regulations would seek to achieve

● Developed and refined a set of data questions to inform STR policy, and began work with an independent data consultant to compile and analyze Nantucket STR data

● Taken public comment at 11 STRWG meetings and led an initial public input session, attended by 183 people, to foster meaningful community conversation about STRs

● Brainstormed and explored in depth a range of potential STR policies, including analysis of what each might achieve and what the intended and unintended consequences would be

● Examined STR regulations from comparable communities, and spoken to representatives of those communities to identify key lessons

● Investigated detailed legal, planning, and zoning questions with Town Counsel and consultants

The STRWG is actively implementing the will of the voters of 2022 Town Meeting. The group has engaged in civil, thoughtful, and detailed deliberation. While members of the group are still working through the purposes for STR regulations and the best mechanisms for achieving them, they have already identified many areas of common ground, and discussed several very promising policy approaches. The goal is meant to balance the long standing tradition and economic need for Nantucket home-owners to short term rent while addressing the risks of over-commercialization of residential neighborhoods.

It was initially hoped that this endeavor would be completed in time to propose an article for the 2023 Annual Town Meeting, but since the group was not operational until October, it very quickly became clear that the group would need more time in order to collect credible data to support effective decision-making.

For that reason, the Work Group requested and received approval for the creation of a Special Town Meeting in November 2023.

In the next several months, the Working Group will continue to meet regularly to complete their task. The group is planning another public input meeting for Thursday June 1 for the community to voice their comments and concerns on the policies being considered. Finally, the group will draw on the expertise of professional planners and legal experts to ensure that the articles it recommends are well drafted, effective, and legally sound.

The STRWG expects to have a package of data-informed, deeply deliberative, and well thought-out guidelines to bring to voters at the November 7th Special Town Meeting (STM), which was specially convened to enact short-term rental regulation. All elected, appointed, and experts employed by the Town have recommended no action on any STR bylaws until the Work Group has finished its work. On May 6th please vote no to all STR related articles. Give us time to complete our work ready for the November 7th Special Town Meeting.