Old Orchard Beach approved hotel to lodging condominium ordinance

Saco Bay News File Photo

Liz Gotthelf, Publisher•

OLD ORCHARD BEACH — There is now an enforceable ordinance on the books to regulate motel to lodging condominium conversions.

In recent years, the town has seen an increased number of hotels being converted to lodging condominiums – a situation in which a former hotel building is divided into units, and each unit is owned as a separate property in a condominium-style arrangement. Units in a lodging condominium can be occupied by owners or used by short-term or long-term renters.

Earlier this year Town Planner Jeffrey Hinderliter said at a Town Council meeting that in the past few years, there had been about six hotel to lodging condominium conversions, compare to just one in the twenty years prior. With town officials not having the tools to regulate such conversions, a moratorium was first issued in November 2022 to give time to create an ordinance.

The Town Council, with Councilor Kenneth Blow absent, unanimously passed a new ordinance Tuesday night to regulate hotel to lodging condominium conversions.

Town Council Shawn O’Neill said he hoped the new ordinance would serve the town well.

“I’d just like to thank members of the public who followed this all the way through from its beginning, and helped guide council and staff through changes,” he said.

Under the new ordinance, which can be found on page 76 of the most recent Town Council commentary, all hotel to lodging condominium conversions must go before the planning board for review as a conditional use.

Only short-term rentals are allowed in lodging condominiums, and the rental season is restricted to March 1 to Dec. 1. Units must be at least 400 square feet. Unit owners are required to rent their unit or make their unit available for rental at least 60 days every season.