January 29, 2019 City Council Chambers
Background ~ 900 registered STRs ~1,300 estimated STRs (Host Compliance) 68% increase since 2017 $2.47 million in revenue STRs must register with City and pay taxes TOT (10%) OTMD (1.5%) Business License if 5 or more units/property AHC appointed by Planning Commission 1 st AHC meeting August 21, 2018 2 nd AHC meeting November 27, 2018 Interdepartmental Meetings Permitting Options Matrix Good Neighbor Policy 2
Possible Caps on STRs 1. Citywide Cap 2. Cap in single-family zoning districts west of I-5 South O and Townsite Neighborhoods 3. Concentration per zoning district/neighborhood Currently STRs make up the following percentages: Zoning District: Downtown D-4: 21% Downtown D-4B: 12.5% Residential Tourist: 11.78% Neighborhood Planning Area: Townsite: 4.86% South Oceanside: 2.64% Fire Mountain: 1.25% 3
STRs per Residential Zoning District Zone Number of STRs Housing Units* % of Housing Units Downtown D-4A 31 148 21.0 Downtown D-4B 2 16 12.50 Downtown D-5 368 5,836 6.31 Downtown D-5A 6 82 7.32 Downtown D-7A 3 114 2.63 R1 34 559 6.08 R3 29 1,708 1.70 RT 96 815 11.78 PD 11 7,701.14 RE 56 8,089.69 RH 17 3,816.45 RM 16 23,026.07 RS 90 16,467.55 * Data provided by SanGIS (2018) 4
Bedroom Definition Private room furnished with a bed and intended primarily for sleeping. Bedrooms must be separated from other rooms by a door or other entryway and have at least one window and emergency escape/rescue opening and a closet or storage nook. Additionally, the room must be accessible to a bathroom without crossing into another bedroom. 5
Permit Fee Jurisdiction Carlsbad STR Permit Fee No Permit Fee (Business License Only) Encinitas $150 Solana Beach $110 Del Mar TBD San Diego $949 * San Clemente $140 to $536 Santa Cruz $262 Los Angeles $89 (less than 120 days) $850 (more than 120 days Oceanside $300 to $400 * City of San Diego STR Ordinance has been rescinded. Permit fee no longer applies. 6
TOT Revenue Increase in total Transient Occupancy Tax (TOT) ~ 6% for Fiscal Year 2017-2018 2012-2013 2013-2014 2014-2015 2015-2016 2016-2017 2017-2018 STR TOT 917,738 1,082,489 1,359,008 1,614,945 1,926,257 2,474,693 Non-STR TOT 3,321,448 3,624,984 4,591,702 4,959,234 5,139,913 5,469,777 Total TOT 4,239,186 4,707,473 5,950,710 6,574,179 7,066,170 7,944,470 STR Revenue 13.89% 15.22% 20.35% 15.85% 16.16% 22.16% TOT Revenue 8.87% 8.37% 21.05% 7.41% 3.52% 6.03% 7
Good Neighbor Policy Key components: 1. 24 hour contact - sign and directory 2. Occupants limited to two adults per bedroom plus two people per unit, including children 3. Bedroom defined 4. On-site designated parking spaces shall be made available for vehicle parking 5. Three strikes policy 6. 10 daytime guests max 7. Two night minimum stay 8
Next Steps AHC to finalize their policy recommendations to regulate STRs (utilize attached matrix) AHC recommendations and Staff comments presented to: Housing Commission (Feb. 26, 2019) Economic Development Commission (March 12, 2019) Planning Commission (April 8 th, 2019) City Council (May 22, 2019) 9
Permitting Options Matrix 10
Permit Process 1. Business License/STR Permit for every STR. Bu: 5 or more bedrooms require an ACUP. 2. GNP for every STR. R: Hosted STRs may have different GNP. 3. All STRs pay TOT. 1. Ministerial Permit required unless STR is exempt. 2. GNP not required for exempt STRs 3. All STRs pay TOT and OTMD, including exempt units Ba: Commissioner Balch; Bu: Commissioner Busk; R: Commissioner Rosales 11
Public Notice 1. R and Bu: Non-hosted STRs should provide public notice. Ba: All STRs should provide public notice. 1. List of STR properties provided on the City website (include address, 24 hour contact info.) 2. Sign posted on the property. Ba: Commissioner Balch; Bu: Commissioner Busk; R: Commissioner Rosales 12
Permit Exemptions 1. R: Gated HOAs. Hosted units could be exempt or have different regulations. Ba and Bu: No STR should be exempt. 1. STR operator exempt if the following: a. HOA b. Self-contained (gated) c. 24-hour on-site management 2. Hosted Units Ba: Commissioner Balch; Bu: Commissioner Busk; R: Commissioner Rosales 13
Number of STRs 1. R: Requested staff to look at 3 scenarios (provided in staff memo). Possible maximum number per owner. Ba and Bu: Maximum number per City or neighborhood. Ba: Cap should be based on type of zone. South O should have a maximum number allowed. 1. Staff does not favor a cap at this time. Staff suggests implementing a STR permit process and GNP with enhanced enforcement and then monitor and review for effectiveness. 2. Staff does not favor limiting the number of STRs per owner. Ba: Commissioner Balch; Bu: Commissioner Busk; R: Commissioner Rosales 14
Locational Requirements 1. STRs allowed citywide. Ba: STRs prohibited in mobile home parks. 1. STRs allowed citywide and will discuss prohibitions in mobile home parks. Ba: Commissioner Balch; Bu: Commissioner Busk; R: Commissioner Rosales 15
Operational Regulations: Maximum Occupancy 1. 2 people per bedroom, plus 2 (including children). 1. 2 people per bedroom, plus 2 (including children). Bedroom defined as a private room furnished with a bed and intended primarily for sleeping. Bedrooms must be separated from other rooms by a door or other entryway and have at least one window and emergency escape/rescue opening and a closet or storage nook. Additionally, the room must be accessible to a bathroom without crossing into another bedroom. Ba: Commissioner Balch; Bu: Commissioner Busk; R: Commissioner Rosales 16
Operational Regulations: Minimum Night Stay 1. R: 2 to 3 nights Ba: 3 to 5 nights Bu: 3 nights 1. 2 nights Ba: Commissioner Balch; Bu: Commissioner Busk; R: Commissioner Rosales 17
Operational Regulations: Special Events 1. R: Small events ok. Threshold to establish an acceptable number of guests. Ba: No special events to occur and there should be a cap on number of guests. 1. Maximum number of daytime guests shall be 10 guests. Daytime guests allowed between 7am and 10pm. Bu: No special events to occur. Number of guests based on occupancy. Ba: Commissioner Balch; Bu: Commissioner Busk; R: Commissioner Rosales 18
Operational Regulations: Parking 1. R: On-site parking, if feasible. Ba: On-site parking for all new STRs. Possible exceptions for existing STRs. 1. All garage, driveway and designated on-site parking spaces shall be made available for vehicle parking. Bu: On-site parking for all new STRs. Existing STRs not required to provide on-site parking. 19
Operational Regulations: Hosting Platform 1. Maybe? Could help with enforcement and accountability of STR operators. 1. Staff to continue to research and discuss contracts with hosting platforms. Ba: Commissioner Balch; Bu: Commissioner Busk; R: Commissioner Rosales 20
Enhanced Enforcement 1. 1- Hour inspection warning for violations 2. Property inspection 3. 3 Strikes Policy 1. 1-Hour inspection for code enforcement violations. 2. Initial property inspection at time of registration. Fire Dept. to conduct regular inspections thereafter (every three years if no complaints/violations). 3. 3 citations within a 24- month period may result in revocation of 36 months. Depending on severity of violation, permit may be revoked after initial citation. Ba: Commissioner Balch; Bu: Commissioner Busk; R: Commissioner Rosales 21
Applicable Fees 1. Permit Fee based on square footage or fire inspection fee. 2. Ba: Possibly have an Affordable Housing Impact Fee. 1. Permit Fee: $300-$400 to cover the cost of one additional full-time Code Enforcement Officer. 2. Staff does not favor an Affordable Housing Impact Fee at this time. Ba: Commissioner Balch; Bu: Commissioner Busk; R: Commissioner Rosales 22
Panhandle Properties 1. Possible restrictions on panhandle lots due to life and safety. 1. Defer to Fire Department. Fire inspection at time of STR registration to determine if adequate access. Ba: Commissioner Balch; Bu: Commissioner Busk; R: Commissioner Rosales 23
January 29, 2019 City Council Chambers