Folly Beach voters, apparently frustrated by the inaction of their elected officials, recently passed a referendum that will put into effect an ordinance limiting the proliferation of short-term rentals.
Could the same thing happen on the Isle of Palms, where local residents have attended three “listening sessions” and several City Council meetings and workshops to voice their opinions for and against establishing a cap on the number of short-term rental licenses that can be issued on the island? At least two IOP Council members think so.
The Folly Beach referendum, held Feb. 7, attracted an unusually large turnout on both sides of the question of whether the city should reduce by attrition the number of short-term rentals to 800, from its current total of more than 1,000. More than half of Folly’s registered voters – 1,233 – cast a ballot, with the outcome decided by a razor-thin margin of 655 to 577. Council members Scott Pierce and John Bogosian are of the opinion that IOP residents might follow the same path – and for similar reasons.
“Folly residents chose quality of life over profit,” Pierce said. “The win is stunning considering the license rollback and no transferability. In contrast, the IOP resident proposal offers a cap above current license count levels, excludes 4% property entirely and suggests dialogue about a solution on intrafamily transfer.”
“If IOP Council doesn’t act on the majority resident input, moves for ‘no cap’ like at the recent workshop or pitches a meaningless cap with carve-outs that expose over 50% of IOP properties to 6% property short-term rentals, I’d also expect a referendum. We’ve kicked this can since 2007.”
Bogosian agreed, pointing out that “Council needs to stop the analysis paralysis that is currently going on and enact a reasonable solution that protects the balance of residents and rentals on the island before it is too late, if it isn’t already.”
“Folly Beach residents were backed into a corner by their own city elected officials and special interest groups,” he said. “They stood up for their own quality of life and the future of their beautiful island by forcing a referendum on a cap of short-term rentals, and, despite a nasty fight by the special interest groups, they won. I believe this sets a precedent for the path of Isle of Palms.”
“There is a very reasonable proposal being discussed by some Council members, with a cap that allows some growth in STRs, allows residents to rent their homes up to the state limit to keep 4% tax assessment and is open to a solution on a family transfer to heirs,” he added, noting that if the IOP Council doesn’t act quickly, “my belief is we will see the same resident action on IOP as we saw on Folly.”
According to Isaac Cramer, executive director of the Charleston County Board of Elections, Isle of Palms voters seeking to either require the Council to vote on a short-term rental ordinance or hold a referendum on the subject would need 683 signatures on a petition, a number equal to 15% of the registered voters when the city’s last regular election was held in November 2021.
Mayor Phillip Pounds said a petition on IOP would be “a possibility” but added that “each community is different.” Council Member Jimmy Ward preferred to take a wait-and-see attitude.
“They chose what they wanted for Folly Beach. We need to closely monitor the market and activity. That’s all we need to do at this point,” he said. “The 4% property owners are increasing, and the 6% properties are decreasing ever so slightly. It’s not going the way that some people are trying to sell it – that the sky is falling. The only reason licenses have gone up is that some people on Council started talking about it more. It got people in a panic.”
“I’m still where I’ve been all along,” Council Member Rusty Streetman commented. “We had three listening sessions, and a 600-person petition came in. People are clearly saying they don’t want caps, and they want better enforcement. I’m open to seeing what others bring to the table. I’m not against caps, but I’m skeptical of imposing any until we have a chance to look at it more closely.”
Council Member Blair Hahn chose not to comment on the Folly Beach referendum, while the three other IOP Council members – Jan Anderson, Katie Miars and Kevin Popson – did not return phone calls from The Island Eye News.
