POINT PLEASANT BEACH — In their final meeting of the year, the Point Pleasant Beach mayor and council adopted an ordinance that narrows the scope of exceptions to the borough’s short-term rental rules, in response to settlement talks with two out-of-state rental owners who sued over the previous rules in 2022.
Specifically, the ordinance revises the borough’s “short-term rental ordinance to establish uniform terms ensuring that short-term rentals have proper oversight by being owner-occupied.” The ordinance was adopted by a 5-0 vote; Councilwoman Arlene Testa was not present at the meeting.
Under both the previous ordinance, adopted in May 2021, and the newly adopted ordinance, rental properties can be rented for a minimum of one month during the off-season, Oct. 1 to May 14. During the summer — May 15 to Sept. 30 — properties can be rented for a minimum of seven days.
The new ordinance makes an exception to the duration rule for “owner-occupied multi-unit dwellings…if the owner personally resides in one of the units during the time of the tenancy.” There is no minimum stay duration in this case.
Previously, this section of code had stipulated that there would also be no minimum stay duration for “residents of Point Pleasant Beach who own more than one home in Point Pleasant Beach during any period the resident is actually present and living in Point Pleasant Beach from Sept. 30 to May 15.”
The new ordinance removes this second exception for Point Pleasant Beach residents “present and living” in the borough in the off-season, meaning that non-residents who own property are to be treated the same as residents with regard to the duration of rentals.
It also changes the code’s definition of a rental; currently, a rental is now defined as “includ(ing) the use of a residence by someone other than the owner where funds are transferred for said use.”
The ordinance comes as a response to ongoing litigation in a federal district court contending that the no-minimum duration exception for rental-owning residents within Point Pleasant Beach is unconstitutional.
In Jan. 2022, Robin and Leonardo Selvaggi sued the borough, arguing that the current ordinance violates constitutionally protected rights, including that of interstate commerce. The Selvaggis, residents of California, own three rental properties in Point Beach, and claimed in their suit that the ordinance violates their civil liberties as property owners living out-of-state by establishing different rental rules for resident taxpayers and non-resident taxpayers.
An executive session was held following Wednesday’s special council meeting regarding the Selvaggi v. Point Pleasant Beach case; no action was taken following the private session.
Several rental owners spoke during the special meeting’s public hearing on the ordinance and urged the mayor and council to carefully reconsider multiple aspects of the ordinance in the new year, including the minimum stay duration of one week.
Dan Friendly, a homeowner and short-term rental owner, said that while he recognizes the timeliness of the ordinance changing amid the lawsuit, he and other rental owners are hoping to have talks with the mayor and council in 2025 about their recommendations.
“Several of us are putting together some ideas to send you folks to take a look at, and we just hope that next year, we can take another look at this,” he said. “We feel like this whole ordinance kind of came out of nowhere for no reason…So, we ask that you guys take a good look at all our ideas and thoughts, and maybe we make it a little bit better. The town is losing revenue in the shoulder seasons. We really are.”
On the other hand, some residents, like Dave Cavagnaro, expressed support for the ordinance, saying that, while the borough represents a wide swathe of people, it should keep residents as its number-one priority.
“First and foremost, Point Pleasant Beach, I believe, is a residential community,” he said. “It’s also a tourist community — and I appreciate that you represent everyone — but somewhere in that mix, there has to be a priority…in my mind, number one should be the residents. Airbnbs compete to buy, which raises the price of properties and makes it more difficult for families to live in Point Pleasant Beach. With fewer families in Point Pleasant Beach, that also affects our school system.”
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