Ordinance 2026-02

ORDINANCE 2026-02

AN ORDINANCE TO REGULATE SHORT-TERM RENTALS IN THE TOWN OF

CASCADE

WHEREAS, the Town of Cascade (“the Town”) has adopted land development and use standards to protect public health, safety and welfare and otherwise execute the purposes of Montana Code Annotated §§ 76-1-102 and 76-2-304; WHEREAS, the Town Council wishes to ensure that there remains an adequate supply of housing in the Town for permanent residents; WHEREAS, the Town has the authority to regulate short-term rentals within the limits of the Town of Cascade; and WHEREAS, a first reading of this Ordinance was held on ____, 2026, and a second reading was held on _, 2026, at which time public comment was taken. NOW, THEREFORE, BE IT ORDAINED BY THE TOWN COUNCIL FOR THE TOWN OF CASCADE: SECTION 1. A new Chapter to be codified at Title 5 (Business Licenses and Regulations) As follows:

Chapter 5.14 SHORT-TERM RENTALS

Sections: 5.14.010 Definitions. 5.14.020 General regulations. 5.14.030 Permitting process and requirements. 5.14.040 Municipal infractions; penalties. 5.14.010 – Definitions. For purposes of this Chapter, the following definitions apply: A. “Accessory dwelling unit (ADU)” means a self-contained living unit on the same parcel as a single-family dwelling of greater square footage that includes its own cooking, sleeping, and sanitation facilities and complies with or is otherwise exempt from any applicable building code, fire code, and public health and safety regulations adopted pursuant to Title 50, chapter 2. (Section 76-2-345, MCA.)

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B. “Duplex” means a residential dwelling on one lot or parcel, divided into two dwelling units, each intended for residential occupancy but living independently from each other. C. “Dwelling Unit, Single-family Detached” means a residential dwelling unit on one lot or parcel not attached or physically connected to any other dwelling except for an accessory dwelling unit (ADU). D. “Grandfathered” means a use of land that was allowed under prior regulations, but which does not conform to these regulations at the time of adoption. E. “Recreation Vehicle” includes but is not necessarily limited to travel trailers (including pop-up campers), pickup camper tops when not mounted on a vehicle, motor homes, tent trailers, as well as the cases, boxes, or containers used for transporting or shipping recreational equipment, whether or not occupied by such equipment. F. “Short-term Rental (STR)” means a single-family detached dwelling unit, a duplex, an ADU, or any other dwelling unit or any unit or group of units in a condominium, cooperative, timeshare, or owner-occupied residential home, that is offered for a fee for less than 30 days. STRs may be referred to as vacation rentals or resort dwelling units. G. “Lot” means an individual parcel of land, irrespective of ownership, that can be identified by legal description, independent of any other parcel of land, using documents on file in the records of the county clerk and recorder’s office. H. “Person” means an individual, corporation, business trust, estate, trust, partnership, limited liability company, association, joint venture, public corporation, or any other legal or commercial entity.

5.14.020 – General regulations. A. STRs existing within the Town before the zoning regulations in Title 11 were adopted in 2019, and those currently operating in the General Business zone, are hereby grandfathered into these regulations and allowed to continue operation. The owners of grandfathered STRs must apply for and obtain an annual STR permit. If the owner of a grandfathered STR discontinues the STR use for more than 365 days or fails to renew the annual STR permit, the STR is no longer grandfathered and the owner must meet all requirements of these regulations in force and effect at the time of application. B. New STRs will be allowed only within the commercial zone. The owners of new STRs must apply for and obtain an annual STR permit. C. Only single family detached dwelling units, accessory dwelling units (ADU), and duplex units are eligible for use as an STR. Recreational vehicles are not permitted to be used as an STR. An STR must comply with all other applicable requirements of the Town’s Zoning Code.

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D. STR permits are limited to a maximum of one dwelling unit per lot and per household. Current and compliant grandfathered STRs are exempt from this rule until the time those property changes ownership. If a property containing a permitted STR is sold or transferred, the STR permit is null and void. If the operation of a permitted STR is discontinued for more than 365 days, the owner must apply for a new permit and be in full compliance with all regulations in effect at the time of application. E. STRs must comply with all applicable federal, state, and Town regulations. The use of an STR permitted by the Town must be initiated within a year of the issuance of the permit or it must be renewed within a year of the date of issuance. If a permit is terminated, the property owner will be required to apply for a new permit and be in full compliance with all regulations in effect at the time of application. F. Owners of real property with a dwelling unit used as an STR shall occupy the dwelling unit, a dwelling unit on the same property, or elsewhere within the boundaries of the Town of Cascade, at least 183 days in a calendar year, per the full-time resident definition in M.C.A. § 1-1-215. G. The cost of annual STR permits will be set by the Town Council by resolution. For multi-family housing, every two units will count as one STR permit.

5.14.030 – Permitting process and requirements. A. Property owners that wish to rent a dwelling unit as a STR must apply for a permit from the Town and pay the permit fee set annually by the Council. The STR application is available at the Town Hall. B. Annual permits are good from July 1st through June 30th of the following calendar year. C. Property owners who have a permitted STRs may auto-renew their STR permit if they pay the annual renewal fee set annually by the Council in advance of the expiration date. D. The name and phone number of the property owner, local contact person, or management company shall be provided on the STR application submitted to the Town. This property owner, contact person, or management company shall be available 24 hours a day, seven days a week, and be able to arrive at the subject property within one hour at any given time. E. All applicants shall provide the Town with proof of State of Montana Public Accommodation Licensure from the Montana Department of Health and Human Services. F. The permittee shall provide the Town proof of a Sales Tax Permit from the Montana Department of Revenue and annual documentation of payment of the State of Montana’s Lodging Facility Use Tax and Lodging Sales Tax.

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G. The permittee shall post the Town and State permits on any site that the STR is advertised on.

5.14.040 Municipal infraction, penalties. Any person owning, controlling, or managing any STR in violation of this Chapter or any person owning or controlling any dwelling which is used as an STR in violation of this Chapter commits a municipal infraction within the exclusive jurisdiction of the City Court of the Town of Cascade. Violations are punishable by a civil penalty of not more than $300 for each violation. Every seven (7) days that a violation is permitted to exist shall constitute a separate offense. Repeat violations are punishable by a fine of not more than $500 for each repeat violation. Any person found to have violated this Chapter three times within a one-year period shall not be permitted to operate an STR within the Town of Cascade for a period of five (5) years. SECTION 2. Effective date. [This Ordinance] is effective on passage and approval.

First Reading: ___, 2026 Second Reading: _, 2026

PASSED AND ADOPTED by the Town Council of the Town of Cascade, Montana, and approved by the Mayor of said Town this __ day of ___, 2026. Effective ___, 2026.

Wes Seabolt, Mayor