The Rockland City Council voted against a measure Monday night that would stop giving out permits by 2026 for short-term rentals owned by people who do not live on the property.
The council voted 2-3 to kill the measure, with councilors Kaitlin Callahan and Nathan Davis voting in favor, and councilors Penelope York, Adam Lachman and Mayor Nicole Kalloch voting against it.
While Rockland has required permits for short-term rentals since 2018, the proposal from City Councilor Kaitlin Callahan would have stopped granting permits to owners who do not live on the same property as the rental starting in 2026. The city currently caps the number of non-owner-occupied short-term rentals at 45 — which is just over 1 percent of the city’s housing stock, according to Callahan.
The midcoast has been one of the areas in Maine hit hardest by the housing crisis, as nearly every town in the region lacks affordable housing. With some properties rented out for short periods on sites like Airbnb and Vrbo, several towns have begun regulating them to keep them from taking up even more of the market.
The Rockland council previously considered a ban on non-owner-occupied short-term rentals in most residential areas in 2022, but it faced pushback — especially from landlords who would be affected — and the measure did not go forward.
Callahan has argued that it’s important to eliminate non-owner-occupied short-term rentals in order to protect the housing stock and bring prices down.
“I get that this isn’t perfect, but what we’re doing now isn’t perfect,” Callahan said at Monday night’s meeting, referring to the current ordinance that caps the rentals at 45. “We don’t allow any other businesses in residential areas that are not owner-occupied.”
Several people spoke at the meeting about the proposal, with 11 speaking in favor of phasing out the permits and six speaking against it.
Those in favor mostly spoke about how phasing out short-term rentals owned by people outside of Rockland would increase the housing stock and therefore bring housing prices down. Elizabeth McLeod, the manager of the Strand Theatre in the city, was worried that high rent and housing prices are pushing working-class people out of town. McLeod said she used to employ six people but now only has three employees, and at least two of them are facing housing insecurity.
“The stink of exclusivity is rising in this community — the idea that Rockland is just a playground for the well-to-do, a place for the wealthy to retire, a place for people to come after they live their lives. What about those of us who are living our lives, who need a place to live?” McLeod said.
Several people who own short-term rentals and don’t live in the properties spoke at the meeting as well. Annie Higbee, who owns a short-term rental in Rockland and lives in Owls Head, said she has put a lot of money into fixing up the property, and it would be unfair to take her ability to rent it out away from her. She argued that nobody who operates a short-term rental would rent it out long term at an affordable price since they have put so much money into making them nice.
“I feel like I helped to build Rockland, and now I feel like you’re taking away and disenfranchising my effort, my vision of doing that,” Higbee said.
She said she understands that there is a housing crisis, so the council should consider a more “in-between” measure that would allow her to continue to rent out her property in the short-term without living there.
Callahan did propose an amendment to the proposal that would have allowed the 45 permit holders to maintain their permits until one of three things happened: they sold or transferred the property, they didn’t renew their permit or 15 years had passed. The council voted against this amendment.
When discussing the proposal, Lachman said he was worried that taking away permits would harm owners of short-term rentals. He said while he thinks the council should continue to consider ways to help the housing crisis in Rockland, the council should do more workshopping on the idea of further restricting short-term rentals.
“I just fundamentally think that we’re talking about the right issue, but we’re not talking about the right solution,” Lachman said.
York agreed, saying the city should talk with more of the owners of short-term rentals before making any kind of decision.
At the meeting, the council also unanimously voted to increase the fines for the false activation of security alarms to $100 per false alarm after the first five. The move was in response to an increase in false alarms triggered by local businesses.
Councilors also gave an initial vote of approval to relocate City Hall to 22 White St. in downtown, which would start a municipal complex and give more space for meetings and staff, City Manager Tom Luttrell said at the meeting. The measure will go to a public hearing on Aug. 12.
