FORESTBURGH – The annual permit fee for short-term rental (STR) operations was set to $500 per unit to cover building inspections and other expenses for the town of Forestburgh.

In January, the fee was set originally at $2,000, which was met with backlash from STR owners of Forestburgh. A committee fitted by Town Board members Karen Ellsweig and Steven Budofsky met with owners of those STR’s to receive their input. The two returned to the board Thursday night with their findings and recommendations.

Prior to the unanimous acceptance of the $500 fee, Ellsweig and Budofsky noted in their report “that a $1,000 initial application fee (per rental unit) and a $500 annual renewal fee (per rental unit) are both reasonable and justified.”

“These fees will offset the substantial increase in workload and significant costs associated with STR monitoring,” the board members said in a joint report. “It is also tax deductible for all STR property owners along with a host of other tax deductions so the financial impacts are minimized.”

Through their independent research, the committee shared via an eight-page report that they had learned that STR’s in Forestburgh are currently five times above the upper range of the target of two to three percent ratio of STR’s to primary residential dwellings. There are approximately 45 STR’s identified within the town, according to the report.

Outside of the permit fees, the other recommendations that would affect regulation would require a local law to be amended into the town code. Those recommendations, which are based off measures taken by towns across New York State that they employ to combat the negative effects of poorly regulated STR’s, include:

1. Lift the suspension of the annual per rental unit permit fee and immediately reinstate it. 

2. Limit the total number of STR permits issued, keeping in mind that the number to achieve the target of 3% is approximately 10 and double the target percentage is approximately 20. A waiting list may be established if and when approved permit applications reach the limit.

3. No STR permit shall be issued to any property owner with violations of any kind including, but not limited to: false information provided on the permit application, structural, environmental or operational violations whether they be a violation of state, county or town codes.

4. Only one (1) STR shall be permitted to operate adjacent to another lot in any direction (including across a road) and only one (1) STR shall be permitted on any lot.

5. STR permits shall not be permitted to be transferred to another property owner.

6. Any STR operating with a permit found to be in violation of STR regulations shall result in an immediate $2,500 fine. Any second violation within one year shall result in immediate revocation of the STR permit.

7. Any STR operating without a permit shall result in an immediate $5,000 fine and an additional $1,500 fine for each week thereafter for operating illegally from the date of notice of violation.

8. Each permit application shall include the following information and required documentation: The names of each owner of each rental unit, primary residential address, phone number and e-mail address. If owned by an LLC, corporation or other entity all of the above information shall be provided for all members, shareholders, officers and principles of such entities. A Certificate of Occupancy is required. Proof of a minimum of $1,000,000 homeowners insurance is also required (insurance from the advertising platforms such as Airbnb does not qualify). 

Also required are a copy of the current Sullivan County Hotel Occupancy Tax Certificate and a septic inspection report dated within 90 days of permit application stating that the septic system was adequately functioning for the intended use as an STR at the time of inspection and does not impact the neighbors or surrounding area.

9. All permit applications and fees for 2024 shall be submitted by May 15th. 

Any STR operating past that date without having filed for a permit and having paid the permit fee will be deemed to be in violation and subject to any fines and/or penalties.

After discussion between board members, a vote called by Budofsky to set the fee at an initial $750 and recurring $500 per year was shot down as no other board members seconded the motion. The unanimously accepted motion that set the fee at $500 was started by Vincent Galligan and seconded by Susan Parks-Landis.