ANNA MARIA – Vacation rental owner Carolyn Hodgson is among those who are upset that vacation rental operations are still prohibited in Florida because of the coronavirus (COVID-19) pandemic.
Gov. Ron DeSantis’ phase one plans to reopen Florida’s economy took effect Monday according to Executive Order 20-112. Regarding vacation rentals, that order says, “The prohibition on vacation rentals in Executive Order 20-87 remains in effect for the duration of the new order.”
That order, issued on March 27 by DeSantis, states “I hereby order all parties engaged in rental of vacation rental properties to suspend vacation rental operations. Vacation rentals are prohibited from making new reservations or bookings and shall not accept new guests for check-in for the duration of this order.”
“It is devastating me personally and financially not being able to safely rent my home and cover my expenses to do so.” – Carolyn Hodgson, vacation rental owner
DeSantis’ original order excludes hotels, motels, inns, resorts, non-transient public lodging establishments, timeshares and long-term rentals of 30 days or more.
Two days earlier, Anna Maria Mayor Dan Murphy had enacted a local emergency order prohibiting vacation rental companies from accepting new reservations through June 30.
During an emergency city commission meeting on Friday, May 1, the commission took no additional action regarding any existing or additional local vacation rental orders. When asked if his local rental reservations order remained in effect, Murphy said the governor’s reopening plan order overrules it.
Hodgson’s plea
Hodgson is the president and CEO of the Minnesota-based Freight Dynamic shipping company. She emailed Murphy Friday evening and copied DeSantis, Manatee County Commissioner Steve Jonsson and all five Anna Maria commissioners on her “Urgent critical message regarding short-term rental in Florida.”
Hodgson’s email notes she invested in two vacation rental homes in Anna Maria. One is on South Bay Boulevard and the other is on Elm Avenue.
“The only way I can afford them is to rent them out short-term,” she wrote.
Hodgson’s email notes she follows the city’s vacation rental guidelines, pays state and local taxes, pays annual licensing fees and pays “many thousands of dollars” in property taxes.
“My monthly mortgage and escrow is nearly $20,000. I have invested over $3 million in property in Anna Maria. It is devastating me personally and financially not being able to safely rent my home and cover my expenses to do so,” Hodgson wrote
Her email notes short-term rentals generate substantial revenues for local restaurants, retail shops, fishing charters and many other businesses.
“This statewide order from the governor cannot be modified and/or made less stringent by either the Anna Maria Commission or myself for the period of time that it may be in force.” – Dan Murphy, Anna Maria mayor
It also says, “You are putting the owners into grave financial recessions. I am asking you from the bottom of my heart, stop prohibiting short-term rental in Anna Maria. You will end up with foreclosures, abandoned homes, angry renters who will never come back and angry homeowners who invested in your town to be individually vilified.”
“Losing March, April and May will result in devastating losses. Adding June or July is toxic and extremely unfair. People will petition, they will protest and rally against the commissioners and governor and it will not bring you the kind of publicity you want or need. The vacation rental management companies will file a lawsuit against the city and state government. Their businesses are being destroyed by this prejudice and extreme unfairness and unwillingness to hear us out and let us make short-term renting safe and available. At least give us a chance to show you. If not, be prepared to reimburse us for our staggering losses and watch the city fall apart from it,” Hodgson wrote in conclusion.
Mayor’s response
On Saturday, Murphy responded to Hodgson and copied those who received her email.
“The city of Anna Maria is currently under the Governor of Florida’s Order 20-112. This statewide order from the governor cannot be modified and/or made less stringent by either the Anna Maria Commission or myself for the period of time that it may be in force. Nor would the city commission or myself choose to lessen its impact,” Murphy wrote.
“We appreciate the courage our Governor has shown in issuing this order, as it is designed to protect human life, limit the spread of COVID-19 virus and is in the best interests and safety of our residents, your clients, our visitors and the general public,” Murphy wrote.
“In view of hurricanes, red tide and possible economic downturns, vacation rental investments have always been considered high risk/high reward. While I certainly can sympathize with the negative impact this pandemic has had upon your personal business ventures in our city, the governor’s actions are designed to protect human life. I am certain you would agree that human life is more important than your next monthly mortgage and escrow payment on your vacation rental investment properties,” Murphy wrote.
In his response, Murphy said threats of lawsuits, protests, rallies and reimbursement should not prevent any elected official from protecting human life and acting in the best interests of public safety.
“These are indeed difficult times and require courage along with difficult decisions,” Murphy wrote.
