SHORT TERM RENTAL REGULATIONS Ci t y o f B er k e l ey Carol Johnson, Acting Planning Director July 7, 2016
Background Referral from City Council requiring collection of transient occupancy tax (TOT) for Short Term Rentals (STRs) April 2014 Planning Commission initiates discussion of STRs March 2015 Referral from City Council to Planning Commission (PC) and Housing Advisory Commission (HAC) to establish regulations for Short Term Rentals (STRs) June 2015 PC consideration of draft Zoning Amendment and related issues, such as operational requirements, taxes, code enforcement, and impact on rental housing - September 2015 HAC discusses draft STR regulations October 2015
Background - continued PC continues discussion of draft STR regulations, including purpose statement, applicable districts, coordination with Rent Stabilization Board October 2015 PC holds public hearing on STR ordinance amendment and makes recommendation to City Council January 2016 City Council conducts first reading of STR ordinance amendment May 2016 City Council directs staff to return with amendments or information regarding business license information, comparison of staff and PC versions, definition of dwelling unit, enforcement fee, and code enforcement June 2016
Information Differences between the PC and staff recommended versions - Purpose Statement: generation of revenue versus regulation of land use Definition of Below Market Rate Units: located in applicability section versus definition section No-Fault Evictions: Prohibits use of units with a no-fault eviction for five years versus no mention Use of Accessory Dwelling Units: No mention versus allowed Zoning Certificate/Permit Required: application information required not specified versus requirement for local contact information and proof of ownership or owner s authorization
Information- continued Differences between the PC and staff recommended versions - Number of occupants: Per Berkeley Housing Code versus number per square feet Notification: One initial versus once yearly Transient Occupancy Tax: Paid by either host or hosting platform versus not mentioned Business License Listing: Required in on-line listing versus not included
Information- continued Clearer definition of dwelling unit - Current Definition: A building or portion of a building designed for, or occupied exclusively by, persons living as one household. Defining characteristics: Kitchen, toilet and bathing facilities. Difficulties in defining kitchen or cooking facilities since the advent of microwaves and compact refrigerators has resulted in a heavier reliance on the presence of a toilet and bathing facility.
Information- continued Clearer explanation of accessory buildings - Accessory Dwelling Unit: A second unit on a lot which is occupied by one Single Family Dwelling and zoned single family residential (R-1), or a second unit approved under the provisions for Accessory Dwelling Units on a lot which is occupied by one Single Family Dwelling and zoned R-1A, R- 2, R-2A, R-3, R-4, R-5, R-S or R-SMU. This term also means second unit for the purposes of Section 65852.2 of the Government Code (the Mello Bill). Accessory Building: Includes habitable space, but NOT a kitchen or full bathroom (= toilet AND bathing facilities)*, and may not be rented. *Per ZAB policy adopted May 30, 1996
Revisions to First Reading Adds language to section 23D.22.020.D Applicability clarifying that dwelling unit includes cooking facilities. Establishes enforcement fee at 2% of rents charged and add to section 23C.22.050.E Operating Standards and Requirements Deletes requirement for inclusion of business license in on-line listing in Section 23C.22.050.J
Considerations Request that the Planning Commission consider a Zoning Ordinance amendment to establish a definition for kitchen see examples below: Kitchen. A room used for preparation of food. A complete kitchen contains a sink, refrigerator, stove or range top, and oven or microwave. A partial kitchen is missing one of the above components. (Pasadena) Kitchen. A kitchen means an area within a structure that is used or designed to be used for the preparation or cooking of food and that contains one or both of the following: 1. Cooking appliances or rough in facilities including, but not limited to: ovens, convection ovens, stoves, stove tops, built-in grills or microwave ovens or similar appliances, 240 volt electrical outlets or any gas lines. OR 2. 2. A sink less than 18 inches in depth with a waste line drain 1-½ inches or greater in diameter AND a refrigerator exceeding five (5) cubic feet in capacity or space opening with an electrical outlet that may reasonably be used for a refrigerator exceeding five (5) cubic feet in capacity. (Sonoma County)
Considerations - continued Request that the Planning Commission consider amendments to regulations for Accessory Buildings, including: Amending Section 23D.08.005 Permitted Uses in Accessory Buildings and Structures to allow Accessory Buildings with habitable space to be used for short term rental purposes. Amending use tables in single-family residential districts to allow the establishment of habitable space in Accessory Buildings with a Zoning Certificate rather than an Administrative Use Permit as currently required.