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Help Preserve Property Rights in Chattanooga!

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The Greater Chattanooga Coalition for Private Property Rights was formed in response to the actions of Chattanooga Mayor Tim Kelly and the City Council regarding strict regulations for short-term rental owners. We believe the new short-term vacation rental ordinance is lacking reasonable justification in many ways and is a blatant overreach of government power. If left unchecked, these elected officials will continue to abuse their power by creating legislation that jeopardizes the rights of their citizens. This particular ordinance implements extreme barriers for anyone wanting to rent a property for less than 30 days in Chattanooga.

Since April 2022, the City Council has had a moratorium on issuing new permits for short-term vacation rentals, where the owner doesn't live on site. Over the past 10+ months, many advocates have made every effort to have a constructive voice in the discussions about the ordinance revision. We obtained over 1100 signatures on a petition against the moratorium. It was ignored. We have asked for the respect that should be granted to all small business owners in Chattanooga, but instead have been talked about as if we are all criminals. We asked for reasonable and rational regulation. The new ordinance is discriminatory, unjust, and overly complex.

It has become clear that underlying agendas are more powerful than the voice of their constituents. Their goal is maximum restriction, and they have gone too far. Our government structure was created with checks and balances. In this situation, we believe our responsibility is to call out this government overreach of our legislative branch and implore our judicial branch to hold them accountable. They were elected to uphold the Constitution, not to control the real estate market and restrict private property rights.

The Greater Chattanooga Coalition for Private Property Rights is organizing a lawsuit to challenge these heavy-handed restrictions and needs your support to cover the costs of PR and legal fees incurred during the litigation. The new ordinance is on the City Council agenda for a final reading and final approval vote on 5/9/23. Click here to read the full ordinance.

Here are some of the most egregious actions or parts of the ordinance we believe need to be challenged:

  • Using the moratorium, in lieu of real policy, to effectively ban all new absentee permits for well over a year. The moratorium went into effect in April 2022 and is set to continue into July 2023.

  • Bypassing the current judicial system by implementing an Administrative Hearing Officer position that will give power to an unelected attorney to levy fines for noncompliance that are more than 10x higher than an elected judge is allowed to impose.

  • Significantly increasing application and renewal fees. An absentee application was previously $150. It is increased to $500. Annual absentee renewal fees went from $150 to $500.

  • Aggressive zoning restrictions by ONLY allowing certificates for commercially zoned lots where hotels are allowed. This completely bans all new absentee certificates for residential zones such as R1, R2, R3, R4, and others. The only exception for residentially zoned land is if the parcel has twenty (20) acres or more with common ownership.

  • If a property is rezoned to commercial, there is an 18-month waiting period before they are allowed to apply for an STVR certificate. If a property owner jumps through all the hoops to get a rezoning approved, they should not face additional hurdles that are not given to any other zoning change.

  • The STVR district overlay restriction remains in the new ordinance, for homestay certificates only. This blocks all homestay certificates in 4 of the 9 districts, and sections of some of the districts where it is partially allowed. This has been a discriminatory part of the legislation since 2019.

  • The moratorium and these new restrictions have had a significant financial impact on those who were already in the process of investing in properties and have been in limbo for over a year on how they will be allowed to use a property that is properly zoned for residential use. The local government is affecting private property values by restricting use without just cause. This is a violation of the 5th Amendment of the Constitution.

  • Hotels are completely exempt from these restrictions. This is giving preference to large hotel chains that take revenue out of our city while restricting entrepreneurial opportunities for small business owners who live here.

  • Only one "agent" is allowed to be appointed for each STVR and they must be available 24/7 to appear onsite within 2 hours. Failure to do so could result in penalties that could jeopardize the renewal of that certificate. The ordinance includes concerning language about the renewals of existing certificates, which is inconsistent with the TN Short Term Rental Unit Act, created to protect existing STVR operators from being shut down by new local ordinances.

  • The main target for heavy restriction has been against absentee certificates for R-1 single-family homes. There are currently only 183 R-1 absentee certificates in the whole city. That is a minuscule 0.2% of our residential housing stock. Short-term rentals are not taking over our neighborhoods.

The economic impact on our local community and the adverse effects on numerous individuals who rely on short-term rentals were not considered during council meetings. Property managers, business owners, and their employees stand to lose their livelihoods. Many property owners in the area, including retirees, single mothers, and widows, have invested their savings into short-term rentals and depend on this income as their primary means of support. It is unjust to ignore the impact of this decision on so many individuals.

Our goal is not only to fight for the rights of property owners who rely on short-term rentals as a means of financial stability but also to ensure that the benefits of short-term rentals continue to be available to those who visit our area. The way people travel and work remotely has changed. Our elected officials are pouring millions of taxpayers dollars into projects that will support tourism. They know it is crucial for a thriving economy by creating jobs, supporting small businesses, and bringing in outside tax revenue that offsets property taxes for every Chattanooga resident. We want to contribute to the strength of our local economy and continue making Chattanooga better for everyone!

We are reaching out to request your support in our fight to preserve property rights and short-term rentals in the Greater Chattanooga area. The upcoming lawsuit will be a significant financial undertaking, and we need your help to ensure that our voices are heard. We kindly ask that short-term rental owners or anyone considering supplementing their income through short-term rentals donate $500-$1,000, while businesses and other supporters are encouraged to contribute what they can as every donation helps no matter the amount.

The Greater Chattanooga Coalition for Private Property Rights is a 501(c)(6) organization, established specifically to oversee the litigation, and any funds remaining after the litigation will be kept in our LLC account to prepare for future legal costs or donated to a local non-profit organization in the Chattanooga area. Your contribution will make a significant impact in our efforts to defend the property rights and economic stability of homeowners and investors throughout our community. Thank you for your support!
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    Co-organizers (4)

    Ashley Burns
    Organizer
    Chattanooga, TN
    Brad Wardlaw
    Co-organizer
    Natalie Henson
    Co-organizer
    Kendall Petersen
    Co-organizer

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