Law and Legislation Committee Report 915 I Street, 1 st Floor

Meeting Date: 5/12/2015 Report Type: Staff/Discussion Report ID: 2015-00442 07 Law and Legislation Committee Report 915 I Street, 1 st Floor www.cityofsacramento.org Title: Update on Short-term Vacation Rentals/Bed and Breakfast Location: Citywide Recommendation: Review and provide direction to conduct outreach and forward to the Planning and Design Commission an ordinance amending various sections of Title 17 of the Sacramento City Code relating to bed and breakfast inns. Contact: Joy Patterson, Principal Planner, (916) 808-5607, Community Development Department; Brad Wasson, Revenue Manager, (916) 808-5844, Department of Finance Presenter: David Kwong, Principal Planner, (916) 808-2691, Community Development Department; Brad Wasson, Revenue Manager, (916) 808-5844, Department of Finance Department: Community Development Dept / Revenue Department Division: Zoning Dept ID: 21001224 Attachments: 1-Description/Analysis 2-Research Short Term Vacation Rentals 3-Current Bed and Breakfast Regulations 4-Airbnb Proposals 5-Ordinance Clean 6-Ordinance Redline City Attorney Review Approved as to Form Steve Itagaki 4/29/2015 5:23:23 PM Approvals/Acknowledgements Department Director or Designee: Ryan Devore - 4/27/2015 10:12:15 AM James Sanchez, City Attorney Shirley Concolino, City Clerk Russell Fehr, City Treasurer 1 of 85 John F. Shirey, City Manager

Description/Analysis Issue Detail: The sharing economy has brought new businesses and new questions about regulations to the forefront of municipal governments. Striking a balance between encouraging these new business and maintaining the safety and comfort of residents and businesses requires careful review of potential regulations. At the request of the City Council, staff has reviewed ordinances adopted by other cities regarding the use of residential dwellings by city residents for short-term vacation rentals, current Sacramento revenue and zoning regulations, and the proposal by Airbnb, and has found the following issue areas: Information from other Cities: Staff reviewed the regulations on short-term vacation rentals in other California communities including Petaluma, San Francisco, Sonoma County, Napa, and Seal Beach. Issues identified include: Whether or not the rental was owner-occupied: On-site management; The number of days a dwelling was permitted to be a vacation rental; Limits on number of people in a rental; Parking; Noticing of neighbors; and, How Transient Occupancy Tax (TOT) and business taxes are collected. Many of the ordinances had been recently adopted, with the San Francisco ordinance effective in January 2015 (see attached). It is worth noting that San Francisco has approximately 20,000 units while the City of Sacramento currently has around 500. This number is expected to grow as the City continues to offer cultural, arts, and sports entertainment opportunities. Planning Division Analysis: Currently in the Planning and Development Code (Title 17 of the Sacramento City Code) short-term vacation rental (the short-term rental of rooms in a dwelling or an entire dwelling unit) is considered a bed and breakfast inn. Depending on the zone, the use may be limited to seven rooms, activities other than lodging may or may not be permitted dependent on the zone, and a person s stay is limited to 14 days. A zoning administrator s conditional use permit is required in some of the residential zones. Essentially the City Code permits smaller type of hotel/transient occupancy uses in residential areas that are compatible in single family and low density multiple family areas. The bed and breakfast regulations were put in place in the 1980s to allow people to stay in existing dwellings (often historic properties) as short-term rentals in residential areas and, in limited cases, allow for events in certain higher density areas with conditions. Current bed and breakfast regulations are attached. Airbnb s Proposal: Airbnb representatives provided staff with proposed amendments to Title 17 for short-term rentals. Under their proposal short-term rentals would be a permitted use in all residential zones and many of the commercial zones. An example of the Airbnb proposed amendments is attached. 2 of 85

After review of ordinances adopted by other cities, the Airbnb proposal, and current Title 17 regulations, Planning Division staff recommends the following changes to Title 17 in order to allow for limited short-term vacation rental of dwellings along with maintaining the character of the City of Sacramento s residential neighborhoods: Add language that the short-term rental of a dwelling unit for a maximum of 30 days or less in a calendar year is not considered a bed and breakfast inn/short-term vacation/business rental for purposes of Title 17 (Revenue Division requirements would still apply to the rental). Include bed and breakfast use in the RE, R-1A, OB, OB2, OB3, C-4, and SC zones. (This would add the additional zones suggested in the Airbnb proposal.) Keep the zoning administrator s conditional use permit requirement for the single unit, duplex, and multi-unit zones. Increase the maximum stay from 14 days to 29 days. Remove the requirement for an on-site manager but evaluate and place appropriate conditions on the bed and breakfast if there is not an on-site manager when a conditional use permit is required. In R-1, R-1A, R-1B, and R-2 zones cannot have more than seven guest rooms and cannot have events such as weddings, conferences, and parties. In R-2A, R-2B, R-3, R-3A zones and as part of the conditional use permit, the zoning administrator may consider up to 14 guest rooms and ancillary activities. Add guest room definition to the Code. Staff finds that these changes will allow individuals to occasionally rent out all or a portion of their home without obtaining a permit from the Planning Division and that the occasional rental (29 days or less in a calendar year) will not have an adverse impact on the residential neighborhood. Staff believes, however, that individuals renting out a residential dwelling for more than 30 days in a year are operating a commercial business in a residential area and the use should be evaluated for traffic, noise, aesthetics, and operating impacts through the conditional use permit process. Proposed amendments to Title 17 are attached. If the Committee recommends that the proposed ordinance be heard by the Planning and Design Commission, staff recommends that outreach to stakeholders occur prior to the Planning and Design Commission hearing. Revenue Division Analysis: Staff is supportive of the use of residential properties for short-term vacation rentals (less than 30 consecutive days) as long as they follow the same rules as existing bed and breakfast/ hotel operations as outlined below: Operators of a bed and breakfast are required to file a Business Operations Tax Application with the City Finance Department using the application form provided by the City, and obtain a business operations tax (BOT) certificate from the City. (City Code Sections 3.08.060; 3.08.010) The annual BOT for operators of a bed and breakfast is fifty dollars ($50) for up to four on-site rental units (rooms) plus seventy-five cents for each on-site rental unit in excess of four units. (City Code Section 3.08.200(B)) 3 of 85

Bed and breakfast operations fall within the definition of hotel, as defined in City Code Section 3.20.20 for purposes of the Uniform TOT. Transients occupying a bed and breakfast are required to pay TOT in the amount of a percentage of the rental charged to the transient for the transient s occupancy of the bed and breakfast. The transient pays this tax to the operator of the bed and breakfast at the time the rent for the bed and breakfast is paid. (City Code Section 3.28.030) The amount of the tax shall be separately stated from the amount of the rent charged and any fee collected by an on-line rental arrangement company. (City Code Section 3.28.070) The amount of the fee collected by the rental arrangement company shall be included in the tax calculation for the total amount paid for occupying the room. The operator of the bed and breakfast must remit collected TOT, on or before the last day of the month following the close of the calendar month to the City Finance Department. In remitting collected TOT, the operator shall utilize the Statement to City of Sacramento of Transient Occupany Tax form provided by the Finance Department (City Code 3.28.090) The operator of a bed and breakfast is required to maintain records of TOT collected for a period of three years. (City Code Section 3.28.140) Policy Considerations: Allowing short-term rentals in residential dwellings in Sacramento is consistent with the 2035 General Plan s Economic Development Business Climate goal to Maintain a supportive business climate and a healthy, sustainable economy that increase the City s ability to expand existing businesses and attract and retain new businesses. Economic Impacts: None. Environmental Considerations: This project is exempt from CEQA because it does not have the potential for causing a significant effect on the environment. (CEQA Guidelines 15061(b)(3).) Sustainability: Not applicable. Commission/Committee Action: At the November 6, 2014 Law and Legislation Committee meeting representatives from Airbnb made a presentation to the Committee introducing their business model and stating their desire to follow Sacramento City Code regulations. The Committee directed staff to analyze city residents using residential dwellings as short-term vacation rentals and the impacts on Transient Occupancy Tax (TOT) revenue and land use, and return to the Committee with the requested information and any necessary ordinances related to this issue. Rationale for Recommendation: Clarifying the City s existing short-term vacation rental regulations will assist in allowing residents of the city provide a service to visitors of Sacramento while following existing city requirements. Financial Considerations: Short-term vacation rentals will be required to pay TOT fees that are already established for individuals renting room nights in Sacramento. As such, there is no negative affect to the City s TOT revenues. 4 of 85

Local Business Enterprise (LBE): None 5 of 85

Short-Term Residential Rentals Research Notes: Regulations in Other Jurisdictions REGULATIONS Vacation rentals (not owner occupied) Homestay rentals (owner occupied) Occupancy limits Calendar limits Room limits Notice to neighbors Local manager Insurance Parking EXAMPLES Scope A Short Term Vacation Rental in which the permittee does not occupy the property with the guests. (Petaluma) A permanent resident may offer his or her primary residence as a short-term residential rental if the permanent resident occupies the residential unit for no less than 275 days out of the calendar year. (San Francisco) Limits No more than 2 overnight occupants per bedroom plus 2 additional occupants are permitted. (Petaluma) The dwelling as a non-hosted vacation rental may be furnished for compensation for no more than 90 days during any calendar year. (Petaluma) No more than two bedrooms in the dwelling may be furnished for compensation. (Petaluma) Eligibility Requirements Upon approval of a Short-Term Vacation Rental Permit, all property owners within 100 feet of the permitted Short-Term Vacation Rental shall be noticed in writing. Such notice shall include the location of the short term vacation rental, number of rooms available for short term vacation rental, and contact information for the locally-available manager. (Petaluma) A manager located within 45 miles of the City must be available at all times and be able to respond to complaints within 1 hour. (Petaluma) The permanent resident must maintain liability insurance appropriate to cover the short-term residential rental use in the aggregate of not less than $500,000. (San Francisco) Parking shall be provided as set forth in 26-90: one (1) on-site parking space for a vacation rental with up to two (2) guestrooms or sleeping rooms; two (2) on-site parking spaces for a three (3) or four (4) guestroom vacation rental. Larger vacation rentals must demonstrate adequate parking with a minimum of three (3) spaces. On-street parking may be considered. (Sonoma County) 1 6 of 85

Check for violations Inspections Required Rental Housing Inspection Program Advertisements Lease Terms Record keeping Reporting Transient Occupancy Tax & Business License Tax Inspections The Permanent Resident can demonstrate to the satisfaction of the Department that the Residential Unit and the property on which it is located is not subject to any outstanding Building, Electrical, Plumbing, Mechanical, Fire, Health. Housing, Police, or Planning Code enforcement, including any notices of violation, notices to cure, orders of abatement, cease and desist orders or correction notices. The Department shall not include a property that is subject to any such outstanding violations in the Registry. If such a violation occurs once a Residential Unit has been included in the Registry the Department shall suspend the Residential Unit's registration and registration number until the violation has been cured. (San Francisco) The owner for each vacation rental unit issued a permit pursuant to this section shall permit a representative of the city Fire Department to conduct an annual fire inspection of the unit, addressing each of the items set forth in this subsection (K)(3). Each unit must satisfy the following requirements to the satisfaction of the city Fire Department (Napa) All rental housing properties and rental housing units are subject to routine periodic inspection by the city as provided by this chapter to determine whether they comply with applicable provisions of this code. (Sacramento) Business Regulations All advertisements for the vacation rental unit shall include the city of Napa Vacation rental permit and business license permit number as part of the rental offering. (Napa) Each new lease or rental agreement for a short-term vacation rental must have a copy of the Permit and Operational Requirements attached to it and must include the following terms, notifications and disclosures, which shall also be posted in a conspicuous location inside the unit (Seal Beach) The Permanent Resident maintains records for two years demonstrating Primary Residency, the number of days per calendar year he or she has occupied the Residential Unit, the number of days per calendar year the Residential Unit has been rented as a Short-Term Residential Rental. (San Francisco) The Permanent Resident shall submit a report to the Department on January 1 of each year regarding the number of days the Residential Unit or any portion thereof has been rented as a Short-Term Residential Rental and any additional information the Department may require. (San Francisco) Upon issuance of a vacation rental permit, pursuant to this section, the owner shall comply with all requirements of the business license provisions (Chapter 5.04 of this code) and the transient occupancy tax provisions (Chapter 3.20 of this code) for the vacation rental use. (Napa) 2 7 of 85

Notice to Renters Trash and recycling Exterior signs Quiet times/noise Pets Special events Definition Operations A Permanent Resident shall post a clearly printed sign inside his or her Residential Unit on the inside of the front door that provides information regarding the location of all fire extinguishers in the unit and building, gas shut off valves, fire exits, and pull fire alarms. (San Francisco) The Host shall provide a written manual to guests providing the local manager's contact information, the Performance Standards set forth in Chapter 21of the Implementing Zoning Ordinance, parking limitations, and other helpful information to minimize conflict within the neighborhood. (Petaluma) The owner shall provide appropriate refuse and recycling service for the vacation rental business. (Napa) On-site signage is prohibited. (Petaluma) Quiet times shall be 9:00 p.m. to 7:00 a.m. Sunday through Thursday evenings and 10:00 p.m. to 7:00 a.m. Friday and Saturday evenings. (Napa) Pets may be permitted by vacation rental business owner, however the pet must be attended to at all times and must have current vaccinations. (Napa) Weddings, auctions, commercial functions, or other similar events that are inconsistent with the use of the property for transient occupancy in a residential neighborhood are prohibited. The total number of persons (renters and guests) occupying a vacation rental property shall not exceed twice the number of authorized renters. (Napa) Occasional special events, parties, weddings or other similar activities over the maximum daytime occupancy (indoors or outdoors) may be permitted only with a Cultural or Special Event Zoning Permit up to four (4) times per year for a maximum one (1) year, or by Use Permit, except in the RR (Rural Residential) and R1 (Urban Residential) zoning districts where special events, outdoor events, lawn parties, weddings or similar activities associated with a vacation rental are not allowed at any time. (Sonoma County) Hosting Platforms A person or entity that provides a means through which an Owner may offer a Residential Unit for Tourist or Transient Use. This service is usually, though not necessarily, provided through an online platform and generally allows an Owner to advertise the Residential Unit through a website provided by the Hosting Platform and provides a means for potential tourist or transient users to arrange Tourist or Transient Use and payment whether the tourist or transient pays rent directly to the Owner or to the Hosting Platform. (San Francisco) 3 8 of 85

Notice in listings Taxes All Hosting Platforms shall provide the (allowing information in a notice to any user listing a Residential Unit located within the City and County of San Francisco through the Hosting Platform's service. The notice shall be provided prior to the user listing the Residential Unit and shall include the (allowing information: that Administrative Code Chapters 37 and 41A regulate Short-Term Rental of Residential Units; the requirements (or Permanent Residency and registration of the unit with the Department. and the transient occupancy tax obligations to the City. (San Francisco) A Hosting Platform shall comply with the requirements of the Business and Tax Regulations Code by, among any other applicable requirements, collecting and remitting all required Transient Occupancy Taxes, and this provision shall not relieve a Hosting Platform of liability related to an occupant's, resident's, Business Entity's, or Owner's failure to comply with the requirements of the Business and Tax Regulations Code. A Hosting Platform shall maintain a record demonstrating that the taxes have been remitted to the Tax Collector and shall make this record available to the Department Tax Collector upon request. (San Francisco) 4 9 of 85

Sacramento City Code Title 17 Current Bed and Breakfast Inn Regulations Definition 17.108.030 Bed and breakfast inn means a dwelling, including on-site accessory structures, in which the inn owner or manager resides; and in which, for compensation, temporary night-to-night lodging not to exceed 14 consecutive days with or without meals is being provided, and special events such as banquets, conferences, and weddings may be held. Zoning Districts Permitted 17.200 Permitted with a conditional use permit in the R-1, R-1B, R-2, R-2A, R-2B, R-3, R-3A zones Permitted by right in the R-4, R-4A, R-5, RX, RMX, OB, OB2, OB3, EC, C-1, C-2, C-3 zones Special Use Regulations for residential zones A. Bed and breakfast inn in R-1, R-1B and R-2 zones. A zoning administrator s conditional use permit is required to establish a bed and breakfast inn in the R-1, R-1B and R-2 zones. The bed and breakfast inn shall not have more than seven guest rooms. Conferences, weddings, fund raiser, and similar gatherings of nonlodgers are prohibited. B. Bed and breakfast inn in R-2A, R-2B, R-3 and R-3A zones. A zoning administrator s conditional use permit is required to establish a bed and breakfast inn in the R-2A, R-2B, R-3 and R-3A zones. The bed and breakfast inn shall not have more than seven guest rooms. In these zones, the zoning administrator s conditional use permit may permit facilities for conferences, wedding, fund raisers, and other similar gatherings and functions attended by non-lodgers as a part of the bed and breakfast inn use, and may include conditions restricting type, frequency, and timing of events, and other limits on operations as the decisionmaker determines necessary to issue the conditional use permit. Except as expressly authorized in the conditional use permit, gatherings and functions attended by non-lodgers are prohibited. 10 of 85

Airbnb Proposed Definitions and Code Revisions 1/20/2015 Definitions to be included in the City of Sacramento Municipal Code The proposed addition to the zoning code list of definitions (Sacramento City Code 17.108.200 S definitions) for a Short Term Rental is: Short Term Rental means a privately owned dwelling, including on-site accessory structures, in which the owner, owner s authorized agent, lessee, sublessee, mortgagee in possession or licensee, for compensation, rents temporary night-to-night lodging for a period not to exceed 30 consecutive days. AIRBNB EXAMPLE OF CITY LAND USE CHART AMENDMENTS Chapter 17.204 SINGLE-UNIT AND DUPLEX DWELLINGS Article I. RE Zone Rural Estates Zone 17.204.100 RE zone Purpose. The purpose of the RE zone is to accommodate very low density residential uses. It applies primarily to areas impacted by high noise levels; areas within designated approach or clear zones around airports; areas within identified floodway and floodway fringe areas; and other areas where physical or safety considerations necessitate very low density residential use. This zone is designated as RE with a suffix indicating one unit per a minimum number of acres (i.e., RE- 1/4, RE-1/2, RE-1/1, RE-1/.5). (Ord. 2013-0020 1; Ord. 2013-0007 1) 17.204.110 RE zone Permitted uses. A. Permitted uses. The following uses are permitted by right in the RE zone, subject to the limitations specified: Use 1. Residential Uses Dwelling, single-unit Model home temporary sales office Limitations regulations in 11 of 85

2. Commercial and Institutional Uses Community market Short Term Rental 3. Industrial and Agricultural Uses Community garden (not exceeding 21,780 gross sq. ft.) Solar energy system, commercial (city property) section 17.228.125 Permitted if the primary use of the property is not a single-unit or duplex dwelling; regulations in section 17.228.124 regulations in section 17.228.122 Allowed in this zone and exempt from the provisions of this title B. Conditional uses. The following uses in the RE zone require approval of a conditional use permit, subject to the limitations specified: Use 1. Residential Uses Mobilehome park 2. Commercial and Institutional Uses Limitations 17.228.115 Approval Required by: Planning and Design Commission (); Zoning Administrator (ZA); or City Council (CC) 12 of 85

Amusement center, outdoor Assembly cultural, religious, social Cemetery Childcare center Golf course; driving range Kennel 3. Industrial and Agricultural Uses Antenna; telecommunications facility Community garden (exceeding 21,780 gross square feet) Heliport; helistop High voltage transmission facility Surface mining operation Well gas, oil 17.228.113 17.228.300 et seq. 17.228.122 17.228.114 17.228.500 et seq. ZA ZA CC Article II. R-1 Zone Single-Unit Dwelling Zone 17.204.200 R-1 zone Purpose. The purpose of the R-1 zone is to accommodate low-density residential uses composed of single-unit detached residences and duplex dwellings on corner lots. This zone may also include recreational, religious, and educational facilities as the basic elements 13 of 85

of a balanced neighborhood. These areas should be clearly defined and without encroachment by uses not performing a neighborhood function. (Ord. 2013-0020 1; Ord. 2013-0007 1) 17.204.210 R-1 zone Permitted uses. A. Permitted uses. The following uses are permitted by right in the R-1 zone, subject to the limitations specified: Use 1. Residential Uses Dwelling, duplex Dwelling, single-unit Model home temporary sales office 2. Commercial and Institutional Uses Community market Short Term Rental 3. Industrial and Agricultural Uses Community garden (not exceeding 21,780 gross square feet) Solar energy system, commercial (city property) Limitations Limited to corner lots regulations in section 17.228.125 Permitted if the primary use of the property is not a single-unit or duplex dwelling; regulations in section 17.228.124 regulations in section 17.228.122 Allowed in this zone and exempt from the provisions of this title B. Conditional uses. The following uses in the R-1 zone require approval of a conditional use permit, subject to the limitations specified: 14 of 85

Use 1. Residential Uses Dormitory Fraternity house; sorority house Mobilehome park Residential care facility Temporary residential shelter 2. Commercial and Institutional Uses Amusement center, outdoor Assembly cultural, religious, social Bed and breakfast inn Cemetery Childcare center Golf course; driving range Kennel Limitations 17.228.111 17.228.111 17.228.115 17.228.104 17.228.113 Approval Required by: Planning and Design Commission (); Zoning Administrator (ZA); or City Council (CC) ZA ZA 15 of 85

Library; archive Museum Non-profit organization, food preparation for off-site consumption Non-profit organization, food storage and distribution Non-profit organization, meal service facility Nonresidential care facility School, K-12 Stand-alone parking facility 3. Industrial and Agricultural Uses Antenna; telecommunications facility Community garden (exceeding 21,780 gross square feet) Heliport; helistop High voltage transmission facility Passenger terminal Well gas, oil The zoning administrator may waive the development standards stated in sections 17.608.040 and 17.612.020 17.228.300 et seq. 17.228.122 17.228.114 17.228.500 et seq. ZA ZA CC 16 of 85

Article III. R-1A Zone Single-Unit or Duplex Dwelling Zone 17.204.300 R-1A zone Purpose. The purpose of the R-1A zone is to permit single-unit or duplex dwellings, whether attached or detached, at a higher density than is permitted in the R-1 zone. Dwellings that have no interior side yards, such as townhouses and rowhouses, are allowed. (Ord. 2013-0020 1; Ord. 2013-0007 1) 17.204.310 R-1A zone Permitted uses. A. Permitted uses. The following uses are permitted by right in the R-1A zone, subject to the limitations specified: B. Conditional uses. The following uses in the R-1A zone require approval of a conditional use permit, subject to the limitations specified: Use 1. Residential Uses Dormitory Fraternity house; sorority house Mobilehome park Limitations 17.228.111 17.228.111 17.228.115 Approval Required by: Planning and Design Commission (); Zoning Administrator (ZA); or City Council (CC) 17 of 85

Residential care facility Temporary residential shelter 2. Commercial and Institutional Uses Amusement center, outdoor Assembly cultural, religious, social Cemetery Childcare center Golf course; driving range Kennel Library; archive Museum Non-profit organization, food preparation for offsite consumption Non-profit organization, food storage and distribution Non-profit organization, meal service facility Nonresidential care facility School, K-12 Stand-alone parking facility 17.228.113 The zoning administrator may waive the development standards stated in sections 17.608.040 and 17.612.020 ZA 3. Industrial and Agricultural Uses Antenna; ZA 18 of 85

telecommunications facility Community garden (exceeding 21,780 gross square feet) Heliport; helistop High voltage transmission facility Passenger terminal Well gas, oil 17.228.300 et seq. 17.228.122 17.228.114 17.228.500 et seq. ZA CC Article IV. R-1B Zone Single-Unit or Duplex Dwelling Zone 17.204.400 R-1B zone Purpose. The purpose of the R-1B zone is to permit single-unit and duplex dwellings on lots generally located in the central city and in North Natomas. (Ord. 2013-0020 1; Ord. 2013-0007 1) 17.204.410 R-1B zone Permitted uses. A. Permitted uses. The following uses are permitted by right in the R-1B zone, subject to the limitations specified: Use 1. Residential Uses Dwelling, duplex Dwelling, single-unit Model home temporary sales office 2. Commercial and Institutional Uses Community market Limitations regulations in section 17.228.125 Permitted if the primary use of the property is not a single-unit or duplex dwelling; 19 of 85

Short Term Rental 3. Industrial and Agricultural Uses Community garden (not exceeding 21,780 gross square feet) Solar energy system, commercial (city property) regulations in section 17.228.124 regulations in section 17.228.122 Allowed in this zone and exempt from the provisions of this title B. Conditional uses. The following uses in the R-1B zone require approval of a conditional use permit, subject to the limitations specified: Use 1. Residential Uses Dormitory Fraternity house; sorority house Mobilehome park Residential care facility Temporary residential shelter Limitations 17.228.111 17.228.111 17.228.115 Approval Required by: Planning and Design Commission (); Zoning Administrator (ZA); or City Council (CC) 20 of 85

2. Commercial and Institutional Uses Amusement center, outdoor Assembly cultural, religious, social Bed and breakfast inn Cemetery Childcare center Golf course; driving range Kennel Library; archive Museum Non-profit organization, food preparation for off-site consumption Non-profit organization, food storage and distribution Non-profit organization, meal service facility Nonresidential care facility School, K-12 Stand-alone parking facility 3. Industrial and Agricultural Uses Antenna; telecommunications facility 17.228.104 17.228.113 The zoning administrator may waive the development standards stated in sections 17.608.040 and 17.612.020 ZA ZA ZA 21 of 85

Community garden (exceeding 21,780 gross square feet) Heliport; helistop High voltage transmission facility Passenger terminal Well gas, oil 17.228.300 et seq. 17.228.122 17.228.114 17.228.500 et seq. ZA CC Article V. R-2 Zone Duplex Dwelling Zone 17.204.500 R-2 zone Purpose. The purpose of the R-2 zone is to provide a low density buffer between the R-1 zone and more intense land uses. This zone is intended to permit duplexes and single-unit attached or detached units. (Ord. 2013-0020 1; Ord. 2013-0007 1) 17.204.510 R-2 zone Permitted uses. A. Permitted uses. The following uses are permitted by right in the R-2 zone, subject to the limitations specified: Use 1. Residential Uses Dwelling, duplex Dwelling, single-unit Model home temporary sales office 2. Commercial and Institutional Uses Community market Limitations regulations in section 17.228.125 Permitted if the primary use of the property is not a single-unit or duplex dwelling; 22 of 85

Short Term Rental 3. Industrial and Agricultural Uses Community garden (not exceeding 21,780 gross square feet) Solar energy system, commercial (city property) regulations in section 17.228.124 regulations in section 17.228.122 Allowed in this zone and is exempt from the provisions of this title B. Conditional uses. The following uses in the R-2 zone require approval of a conditional use permit, subject to the limitations specified: Use 1. Residential Uses Dormitory Fraternity house; sorority house Mobilehome park Residential care facility Temporary residential shelter Limitations 17.228.111 17.228.111 17.228.115 Approval Required by: Planning and Design Commission (); Zoning Administrator (ZA); or City Council (CC) 23 of 85

2. Commercial and Institutional Uses Amusement center, outdoor Assembly cultural, religious, social Bed and breakfast inn Cemetery Childcare center Golf course; driving range Kennel Library; archive Museum Non-profit organization, food preparation for off-site consumption Non-profit organization, food storage and distribution Non-profit organization, meal service facility Nonresidential care facility School, K-12 Stand-alone parking facility 3. Industrial and Agricultural Uses Antenna; telecommunications facility 17.228.104 17.228.113 The zoning administrator may waive the development standards stated in sections 17.608.040 and 17.612.020 17.228.300 et seq. ZA ZA ZA 24 of 85

Community garden (exceeding 21,780 gross square feet) Heliport; helistop High voltage transmission facility Passenger terminal Well gas, oil 17.228.122 17.228.114 17.228.500 et seq. ZA CC 25 of 85

ORDINANCE NO. Adopted by the Sacramento City Council Date Adopted AN ORDINANCE AMENDING VARIOUS SECTIONS OF TITLE 17 OF THE SACRAMENTO CITY CODE RELATING TO BED AND BREAKFAST INNS BE IT ENACTED BY THE COUNCIL OF THE CITY OF SACRAMENTO: SECTION 1. A. The definition of bed and breakfast inn in section 17.108.030 of the Sacramento City Code is amended to read as follows: Bed and breakfast inn means a dwelling unit, including on-site accessory structures, in which temporary night-to-night lodging not to exceed 29 consecutive days, with or without meals, is being provided for compensation. Special events such as banquets, conferences, and weddings may also be held at a bed and breakfast inn. B. Except as specifically amended in subsection A, above, all other provisions of section 17.108.030 remain unchanged and in full effect. SECTION 2. A. Subsection B of section 17.204.110 of the Sacramento City Code is amended to read as follows: B. Conditional uses. The following uses in the RE zone require approval of a conditional use permit, subject to the limitations specified: Use 1. Residential Uses Mobilehome park Limitations 17.228.115 Approval Required by: Planning and Design Commission (); Zoning Administrator (ZA); or City Council (CC) 26 of 85

2. Commercial and Institutional Uses Amusement center, outdoor Assembly cultural, religious, social Bed and breakfast inn Cemetery Childcare center Golf course; driving range Kennel 3. Industrial and Agricultural Uses Antenna; telecommunications facility Community garden, private (exceeding 1.0 acre) Market garden (exceeding 1.0 acre) Heliport; helistop High voltage transmission facility Surface mining operation Well gas, oil 17.228.104 17.228.113 17.228.300 et seq. 17.228.114 17.228.500 et seq. ZA ZA ZA ZA CC B. Except as specifically amended in subsection A, above, all other provisions of section 17.204.110 remain unchanged and in full effect. SECTION 3. A. Subsection B of section 17.204.310 of the Sacramento City Code is amended to 27 of 85

read as follows: B. Conditional uses. The following uses in the R-1A zone require approval of a conditional use permit, subject to the limitations specified: Use 1. Residential Uses Dormitory Fraternity house; sorority house Mobilehome park Residential care facility Temporary residential shelter 2. Commercial and Institutional Uses Amusement center, outdoor Assembly cultural, religious, social Bed and breakfast inn Cemetery Childcare center Golf course; driving range Kennel Library; archive Museum Limitations 17.228.111 17.228.111 17.228.115 17.228.104 17.228.113 Approval Required by: Planning and Design Commission (); Zoning Administrator (ZA); or City Council (CC) ZA ZA 28 of 85

Non-profit organization, food preparation for offsite consumption Non-profit organization, food storage and distribution Non-profit organization, meal service facility Nonresidential care facility School, K-12 Stand-alone parking facility 3. Industrial and Agricultural Uses Antenna; telecommunications facility Community garden, private (exceeding 1.0 acre) Heliport; helistop High voltage transmission facility Market garden, (exceeding 1.0 acre) Passenger terminal Well gas, oil The zoning administrator may waive the development standards stated in sections 17.608.040 and 17.612.020 17.228.300 et seq. 17.228.114 17.228.500 et seq. ZA ZA CC ZA B. Except as specifically amended in subsection A, above, all other provisions of section 17.204.310 remain unchanged and in full effect. SECTION 4. A. Subsection A of section 17.208.510 of the Sacramento City Code is amended to read as follows: 29 of 85

A. Permitted uses. The following uses are permitted by right in the R-4 zone, subject to the limitations specified: Use 1. Residential Uses Dormitory (inside central city) Dwelling, duplex Dwelling, multi-unit Dwelling, single-unit Model home temporary sales office 2. Commercial and Institutional Uses Amusement center, indoor Athletic club; fitness studio Bed and breakfast inn Childcare center Commercial service Community market Hotel; motel Laundromat, self-service Library; archive Mortuary; crematory Museum Limitations 17.228.111 17.228.117 17.228.125 17.228.104 ; 17.228.113 17.228.124 30 of 85

Office Restaurant Retail store School dance, music, art, martial arts School, vocational Theater 3. Industrial and Agricultural Uses Community garden (not exceeding 1.0 acre) Market garden (not exceeding 1.0 acre) Solar energy system, commercial (city property) Allowed in this zone and exempt from the provisions of this title B. Except as specifically amended in subsection A, above, all other provisions of section 17.208.510 remain unchanged and in full effect. SECTION 5. A. Subsection A of section 17.208.610 of the Sacramento City Code is amended to read as follows: A. Permitted uses. The following uses are permitted by right in the R-4A zone, subject to the limitations specified: Use 1. Residential Uses Dormitory (inside central city) Dwelling, duplex Limitations 17.228.111 31 of 85

Dwelling, multi-unit Dwelling, single-unit Model home temporary sales office 2. Commercial and Institutional Uses Amusement center, indoor Athletic club; fitness studio Bed and breakfast inn Childcare center Commercial service Community market Hotel; motel Laundromat, self-service Library; archive Mortuary; crematory Museum Office Restaurant Retail store 17.228.117 17.228.125 17.228.104 ; 17.228.113 17.228.124 32 of 85

School dance, music, art, martial arts School, vocational Theater 3. Industrial and Agricultural Uses Community garden, private (not exceeding 1.0 acre) Market garden (not exceeding 1.0 acre) Solar energy system, commercial (city property) Allowed in this zone and exempt from the provisions of this title B. Except as specifically amended in subsection A, above, all other provisions of section 17.208.610 remain unchanged and in full effect. SECTION 6. A. Subsection A of section 17.208.710 of the Sacramento City Code is amended to read as follows: A. Permitted uses. The following uses are permitted by right in the R-5 zone, subject to the limitations specified: Use 1. Residential Uses Dormitory (inside central city) Dwelling, duplex Dwelling, multi-unit Dwelling, single-unit Model home temporary sales office 2. Commercial and Institutional Uses Limitations 17.228.111 17.228.117 17.228.125 33 of 85

Amusement center, indoor Athletic club; fitness studio Bed and breakfast inn Childcare center Commercial service Community market Hotel; motel Laundromat, self-service Library; archive Mortuary; crematory Museum Office Restaurant Retail store School dance, music, art, martial arts School, vocational 17.228.104 ; 17.228.113 17.228.124 34 of 85

Theater 3. Industrial and Agricultural Uses Community garden, private (not exceeding 1.0 acre) Market garden (not exceeding 1.0 acre) Solar energy system, commercial (city property) Allowed in this zone and exempt from the provisions of this title B. Except as specifically amended in subsection A, above, all other provisions of section 17.208.710 remain unchanged and in full effect. SECTION 7. A. Subsection A of section 17.212.110 of the Sacramento City Code is amended to read as follows: A. Permitted uses. The following uses are permitted by right in the RMX zone, subject to the limitations specified: Use 1. Residential Uses Dwelling, duplex Dwelling, multi-unit Dwelling, single-unit Model home temporary sales office 2. Commercial and Institutional Uses Athletic club; fitness studio Bed and breakfast inn Commercial service Community market Laundromat, self-service Library; archive Museum Limitations 17.228.117 17.228.125 17.228.104 17.228.124 35 of 85

Office Restaurant Retail store School dance, music, art, martial arts Temporary commercial building 3. Industrial and Agricultural Uses Community garden, private (not exceeding 1.0 acre) Market garden (not exceeding 1.0 acre) Solar energy system, commercial (city property) This use is limited to 6,400 gross square feet; if use exceeds this limitation, a conditional use permit is required This use is limited to 40,000 gross square feet; if use exceeds this limitation, a conditional use permit is required 17.228.126 Allowed in this zone and exempt from the provisions of this title B. Except as specifically amended in subsection A, above, all other provisions of section 17.212.110 remain unchanged and in full effect. SECTION 8. A. Subsection A of section 17.212.210 of the Sacramento City Code is amended to read as follows: A. Permitted uses. The following uses are permitted by right in the RO zone, subject to the limitations specified: Use 1. Residential Uses Dwelling, duplex Dwelling, multi-unit Dwelling, single-unit 2. Commercial and Institutional Uses Bed and breakfast inn Community market Limitations 17.228.117 17.228.104 17.228.124 36 of 85

Office Temporary commercial building 3. Industrial and Agricultural Uses Community garden, private (not exceeding 1.0 acre) Market garden (not exceeding 1.0 acre) Solar energy system, commercial (city property) 17.228.126 Allowed in this zone and exempt from the provisions of this title B. Except as specifically amended in subsection A, above, all other provisions of section 17.212.210 remain unchanged and in full effect. SECTION 9. A. Subsection A of section 17.216.110 of the Sacramento City Code is amended to read as follows: A. Permitted uses. The following uses are permitted by right in the OB zone, subject to the limitations specified: Use 1. Residential Uses Dwelling, multi-unit 2. Commercial and Institutional Uses Amusement center, indoor Athletic club; fitness studio Bed and breakfast inn Childcare center College extension Commercial service Limitations 17.228.117 17.228.104 ; 17.228.113 37 of 85

Community market Hotel; motel Laundromat, self-service Library; archive Mortuary; crematory Museum Non-profit organization, food preparation for off-site consumption Non-profit organization, food storage and distribution Office Restaurant Retail store School dance, music, art, martial arts School, vocational Temporary commercial building Theater Wholesale store 3. Industrial and Agricultural Uses Aquaculture Community garden, private (not exceeding 3.0 acres) 17.228.124 Entire business, including storage and display, shall be conducted within a building ; Entire business, including storage and display, shall be conducted within a building ; This use is limited to 40,000 gross square feet; if use exceeds this limitation, a conditional use permit is required 17.228.126 Permitted in a building in which at least 50% of ; this use is limited to 6,400 gross square feet 38 of 85

Laboratory, research Manufacturing, service, and repair Market garden (not exceeding 3.0 acres) Solar energy system, commercial (city property) ; This use is limited to 6,400 gross square feet. Use may include incidental, non-nuisance producing processing, packaging, and fabricating entirely within a building Allowed in this zone and exempt from the provisions of this title B. Except as specifically amended in subsection A, above, all other provisions of section 17.216.110 remain unchanged and in full effect. SECTION 10. A. Subsection A of section 17.216.210 of the Sacramento City Code is amended to read as follows: A. Permitted uses. The following uses are permitted by right in the OB-2 zone, subject to the limitations specified: Use 1. Residential Uses Dwelling, multi-unit 2. Commercial and Institutional Uses Amusement center, indoor Athletic club; fitness studio Bed and breakfast inn Childcare center College extension Commercial service Limitations 17.228.117 17.228.104 ; 17.228.113 39 of 85

Community market Hotel; motel Laundromat, self-service Library; archive Mortuary; crematory Museum Non-profit organization, food preparation for off-site consumption Non-profit organization, food storage and distribution Office Restaurant Retail store School dance, music, art, martial arts School, vocational Temporary commercial building Theater Wholesale store 3. Industrial and Agricultural Uses Aquaculture Community garden, private (not 3.0 acres) 17.228.124 Entire business, including storage and display, shall be conducted within a building ; Entire business, including storage and display, shall be conducted within a building ; This use is limited to 40,000 gross square feet; if use exceeds this limitation, a conditional use permit is required 17.228.126 ; this use is limited to 6,400 gross square feet 40 of 85

Laboratory, research Manufacturing, service, and repair Market garden (not exceeding 3.0 acres) Solar energy system, commercial (city property) ; This use is limited to 6,400 gross square feet. Use may include incidental, non-nuisance producing processing, packaging, and fabricating entirely within a building Allowed in this zone and exempt from the provisions of this title B. Except as specifically amended in subsection A, above, all other provisions of section 17.216.210 remain unchanged and in full effect. SECTION 11. A. Subsection A of section 17.216.310 of the Sacramento City Code is amended to read as follows: A. Permitted uses. The following uses are permitted by right in the OB-3 zone, subject to the limitations specified: Use 1. Residential Uses Dwelling, multi-unit 2. Commercial and Institutional Uses Amusement center, indoor Athletic club; fitness studio Bed and breakfast inn Childcare center College extension Commercial service Limitations 17.228.117 17.228.104 ; 17.228.113 41 of 85

Community market Hotel; motel Laundromat, self-service Library; archive Mortuary; crematory Museum Non-profit organization, food preparation for off-site consumption Non-profit organization, food storage and distribution Office Restaurant Retail store School dance, music, art, martial arts School, vocational Temporary commercial building Theater Wholesale store 3. Industrial and Agricultural Uses Aquaculture Community garden, private (not exceeding 3.0 acres) 17.228.124 Entire business, including storage and display, shall be conducted within a building ; Entire business, including storage and display, shall be conducted within a building ; This use is limited to 40,000 gross square feet; if use exceeds this limitation, a conditional use permit is required 17.228.126 ; This use is limited to 6,400 gross square feet 42 of 85

Laboratory, research Manufacturing, service, and repair (not exceeding 6,400 gross square feet of floor area) Market garden (not exceeding 3.0 acres) Solar energy system, commercial (city property) ; This use is limited to 6,400 gross square feet. Use may include incidental, non-nuisance producing processing, packaging, and fabricating entirely within a building Allowed in this zone and exempt from the provisions of this title B. Except as specifically amended in subsection A, above, all other provisions of section 17.216.310 remain unchanged and in full effect. SECTION 12. A. Subsection B.1 of section 17.216.420 of the Sacramento City Code is amended to read as follows: 1. Land uses allowed in the EC zone are divided into two categories: Primary and Non-Primary. Primary uses, described in more detail below, are employmentgenerating uses that provide a ridership base that will reinforce the use of transit services. Non-primary uses are conditional and are generally uses supportive of primary uses. Non-primary uses are divided into support retail and residential. Primary and non-primary uses are set forth in Table 1. Table 1 Category Primary Permitted uses Office High-tech manufacturing research and development (not limited to 25% office may have 100% office uses) Medical facilities: Hospital Laboratory Skilled nursing facility Research and development Physician s clinic Convalescent hospital Drug/alcohol treatment centers Pharmacy Optician lab or clinic Dental offices 43 of 85

Psychiatric hospital or clinic Veterinary clinic; veterinary hospital 1 Educational/vocational/training (public or private) Banks; savings and loans Post office Childcare center Light Industrial Uses: Distribution; warehousing Manufacturing High-tech manufacturing research and development (limited to 25% office) Assembly Support Retail Health club School dance, music, art, martial arts Automobile-related services (i.e., auto service, parts, repair) Gas sales Restaurant; café; deli Hotel; motel; bed and breakfast inn Consumer retail (maximum 10,000 square feet per store, with an aggregate building size of 30,000 square feet) 2 (e.g., books, food, videos, etc.) Residential Multi-unit dwelling 1 Veterinary clinics and hospitals need a conditional use permit if there is outdoor boarding of animals. 2 Includes drug stores and office supply stores up to a maximum of 20,000 square feet per store, except EC-65 and EC-80 sites, which have a maximum of 10,000 square feet. Includes auto-related retail uses (excluding gas sales) up to a maximum of 15,000 square feet. B. Except as specifically amended in subsection A, above, all other provisions of section 17.216.420 remain unchanged and in full effect. SECTION 13. A. Subsection A of section 17.216.510 of the Sacramento City Code is amended to read as follows: A. Permitted uses. The following uses are permitted by right in the SC zone, subject to the limitations specified: Use 1. Commercial and Institutional Uses Limitations 44 of 85