Regulation of Short-Term Rentals

Transcription

1 Regulation of Short-Term Rentals Planning Commission April 12, 2017

2 Introduction What is a short-term rental? > The renting out of a furnished dwelling on a temporary basis (30 consecutive days or less) to guests as an alternative to a hotel or other traditional temporary accommodations, e.g. Airbnb > Considered an accessory use to a home > Differ from hotels, motels, and bed & breakfast inns, which are considered commercial uses 2

3 Introduction What s the difference between home-sharing and a vacation rental? > Home-sharing: Dwelling is the primary residence of the host Unit is shared in whole or part (e.g. bedroom, guest house) Can be hosted where the owner/resident remains on-site during the guest stay or un-hosted where the owner/resident remains off-site during the stay > Vacation Rental: Owner does not reside on-site Used almost exclusively for guests as a way of generating income 3

4 Growth of Short-Term Rentals Rise in popularity of short-term rentals has led to a 13-fold increase in STR activity over the past 5+ years Number of STR listings in Pasadena (Q1) 4

5 Map of Listings March

6 Public Outreach & Engagement September 15, 2016 Ed Tech public hearing regarding STRs - info on background, scale, and scope of STR activity in Pasadena Directed staff to hold community meetings and begin formulating regulations for STRs December 1 & 3, community meetings held to receive initial input from residents and businesses on STRs; approx. 40 people attended each meeting January 17, 2017 Ed Tech held 2 nd public hearing given summary of STR regulations in other cities Further guidance was provided on the draft regulations February 16, rd community meeting held to introduce draft regulations; approx. 100 people attended Numerous comments from those in favor and those with concerns about STRs * As well, staff has received 100s of comments via mail and 6

7 Pros and Cons of STRs Support of short-term rentals: > Affordable and flexible accommodation option for visitors > Extra income for hosts; efficient use of spare bedrooms, guest houses, etc. > Economic spin-off through increased tourism > Collection of transient occupancy tax or TOT Estimate of $268,000 annually based on current STR activity 7

8 Pros and Cons of STRs Concerns with short-term rentals: > Effect on neighborhood character Long-term neighbors replaced by short-term guests > Potential for nuisance activities e.g. noise, inadequate parking, excessive coming and going > Impact on housing stock Rental units removed from long-term housing market 8

9 Regulatory Approach Options for addressing short-term rentals: 1. Prohibit the practice completely 2. Embrace the practice without restrictions 3. Allow the practice under a set of regulations Cities are increasingly regulating short-term rentals > Lessons learned from efforts in other cities San Francisco, Santa Monica, Anaheim, Los Angeles» Santa Monica recently sued by Airbnb > No one-size fits all approach Tailored to nuances of the community 9

10 Proposed Regulations Types of short-term rentals: 1. Hosted Stay A home-sharing activity whereby the host remains on-site throughout the guest s stay (except during daytime and/or work hours). 2. Un-Hosted Stay A home-sharing activity whereby the host remains off-site during the guest s stay. 3. Vacation Rental A dwelling unit that is not a primary residence and which is available for temporary lodging, for compensation. Vacation rentals would be prohibited by the proposed regulations 10

11 Proposed Regulations Criteria for hosted stays: > Dwelling must be the primary residence of the host Note: Renters of residential units would need the landlord s permission to sublease as STRs > Permitted in SFRs, condominiums, and townhomes > Also allowed in ADUs and accessory structures legally permitted as sleeping quarters and constructed before January 1, 2017, which are considered subordinate to the main structure or primary residence on-site > Not permitted in multi-family rental units (i.e. apartment bldgs.) 11

12 Proposed Regulations Criteria for un-hosted stays: > Dwelling must be the primary residence of the host > Permitted in SFRs, condominiums, and townhomes > Also allowed in ADUs and accessory structures legally permitted as sleeping quarters and constructed before January 1, 2017, which are considered subordinate to the main structure or primary residence on-site > Not permitted in multi-family rental units (i.e. apartment bldgs.) > Limit of 10 bookings/yr to a maximum of 60 days/yr > Must retain a local contact person or property management company that is available 24 hrs/day 12

13 Proposed Regulations Key provisions: > Occupancy limit based on size of home: 2 guests per bedroom plus 2 additional guests > Cannot be used for any commercial parties or events (Note: This would not prevent a guest from using the short-term rental to entertain during their stay, but is only intended to prevent an STR from becoming a party house ) > Parking for all guests to be provided on-site > No signs can be posted on the exterior of the home advertising the short-term rental use > Must adhere to the City s Noise Ordinance and Litter Ordinance 13

14 Proposed Regulations Home-sharing permit requirements: > Must be obtained and renewed annually > Permit to be combined w/ City business license as a package > May have only one home-sharing property in the City > Must reside at the residence for 9 months out of the year > Required to remit Transient Occupancy Tax (TOT) to the City > Contact person or property mgmt. company must be available 24 hrs/day > Minimal inspection required for life safety, e.g. ability to escape in the event of fire > Permit number must be included in any listing for the STR > Permit does not supersede HOA requirements 14

15 Proposed Regulations Host requirements: > Must keep records necessary to determine the amount of TOT liable for payment to the City > Must maintain liability insurance appropriate to cover the homesharing use in the amount of $500,000 15

16 Proposed Regulations Enforcement: > Code Compliance will respond to complaints related to STRs > 3 violations against the same property being used for shortterm rental will result in the revocation of the home-sharing permit > Advertising without a permit will be considered a violation > After-hours complaints related to noise, etc. will be handled by the Police Department; Code Compliance will use documented incidents as infractions 16

17 Break Planning Commission April 12, 2017

18 Key Issues Key issues regarding short-term rentals: > Commercialization and loss of residential character Regulations will help minimize impacts on res. neighborhoods > Nuisance issues Code Compliance will enforce the activity > Vacation rentals Regulations will prohibit vacation rentals as STRs > Use of accessory structures Regs. will allow the activity in accessory structures that are legally permitted for sleeping quarters and are not permitted as accessory dwelling units under the recently adopted rules for ADU s 18

19 Key Issues Key issues regarding short-term rentals: > Limit on the number of bookings and/or stays Regulations attempt to strike the right balance between the desires of hosts and other residents expectations of neighborhood stability and tranquility > Enforcement Both proactive and reactive > Impact on housing supply Regulations will limit STRs to the home-sharing of one s primary residence impacts will be minimized 19

20 Recommendation 1. Find that the proposed Zoning Code Amendment is not a project subject to the California Environmental Quality Act (CEQA) in accordance with Section of CEQA and State CEQA Guidelines Sections (c)(2), (c)(3), and Furthermore, the proposed action is exempt from CEQA pursuant to State CEQA Guidelines Section 15061(b)(3) (general rule) and Existing Facilities (Class 1); 2. Adopt the Findings of Consistency with the General Plan in Attachment A; 3. Recommend that the City Council approve the proposed amendment to Title 17 of the Pasadena Municipal Code (Zoning Code) as contained in the report; and 4. Direct the City Attorney to prepare an ordinance amending the Zoning Code as presented in the report. 20

21 End of Presentation Planning Commission April 12, 2017