ADMINISTRATIVE REPORT
MEETING DATE: June 10, 2026 AGENDA CATEGORY: Consent- Ordinances TO: Honorable Mayor and City Council
FROM: Phillip Burns, Development Services Director
DATE: May 22, 2026
SUBJECT: Adoption of an ordinance enacting Chapter 17.74 to Title 17 (Zoning) of the Bakersfield Municipal Code (BMC) related to Short Term Rentals.
The City of Bakerfield is proposing to enact Chapter 17.74 to Title 17 (Zoning) of the Bakersfield Municipal Code (BMC), relating to regulating Short Term Rentals. A finding that the project is exempt from the California Environmental Quality Act will also be considered. (City-wide) (FR 5/27/26)
RECOMMENDATION:
Staff recommends adoption of the ordinance and notice of exemption.
BACKGROUND:
At the February 12, 2026 Housing and Community Development Committee meeting, the City Attorney’s Office presented the draft ordinance and was directed by the Committee to bring said ordinance to the full City Council for review and approval. On May 7, 2026, the Planning Commission adopted Resolution No. 44 -26 recommending the City Council adopt Chapter 17.74 to Title 17 (Zoning) of the Bakersfield Municipal Code (BMC), which enacts the regulations for Short Term Rentals (STR). First reading was held at the City Council meeting of May 27, 2026.
Short Term Rentals (or STRs) have been a growing staple of the tourism economy, providing an alternative from traditional hotel/motel room lodging for travelers. Although STRs technically include a hotel room or other traditional form o f overnight accommodation, the term “STR” is now usually linked to short -term stays within homes in residential areas of communities, including apartments, condominiums and single-family homes. The common denominator is that rental is for less than thirty days. The difference is that whereas hotels are usually permitted uses within the zones they are allowed, STRs are often not permitted within residentially zones areas of a community, which are anticipated to provide for more permanent forms of residency.
With the advent of online booking engines such as AirBnB, VRBO, and HomeAway, among others, it has become easier for property owners to list a house, condo or apartment as a STR and manage that rental without support from more traditional property management companies. These online booking engines have also made it easier to search and book STRs. STRs can be second homes that are used by the owner during a portion of the year or investment properties without a permanent owner - occupant.
The increase in STR activity, especially in residential neighborhoods, has created challenges across the county. Issues ranging from noise, trash, and parking to a decline in available long -term housing options are regularly cited by residents in impacted communities. Across the State of California and the United States, counties and cities are attempting to strike a balance between regulating STRs to address neighborhood compatibility and environmental concerns while recognizing property owner
rights. STRs can generate millions of dollars in Transient Lodging Tax (“TLT” more commonly referred to as “TOT”) revenue along with substantial accompanying permitting fees.
The STR ordinance presented here today seeks to strike a balance between reasonableness and effective enforceability as it relates to land use regulations including but not limited to the following:
Separate STR permit requirement in addition to a Busines s Tax Certificate, including paying TLT directly to City
STR permit valid for 12 months; renewal of STR permit required STR permit available for residential dwelling unit and residential development project (multifamily development of five or more units; permit 20% of units in development) STR permit prohibited on deed restricted affordable housing units, single room occupancy, special group residence, junior accessory dwelling units, accessory dwelling units and properties with restrictive covenants or homeowner’s associations covenants (HOA), conditions, and restrictions (CC&R’s)
If property is subject to an HOA, operator shall provide City with written proof that its HOA allows the STR. City does not enforce HOA requirements
Imposition of parking and trash regulations
Imposition of noise standards
Posting if rules/regulations of STR permit and emergency contact information Requirement for a local 24-hour contact
Indemnify City and maintain liability insurance, including adding City as an additional insured Occupancy limits; 2 persons per bedroom. Children age 12 and under do not count towards limit Allow residential development projects (apartments and condominiums) to seek a STR permit (Limit of 20% of units as STR in a development);
Methodologies for enforcement and associated penalties As to enforcement, a violation of the ordinance shall be subject to the processes and procedures in Chapter 1.40 of the Bakersfield Municipal Code (criminal and administrative actions), which can include state, county health, building and fire regulation violations, as well as Chapter 17 (zoning violations). An operator’s STR permit will not be renewed if they accumulate two citations within the 12-month lifespan of said permit.
At the direction of City Council, a STR permit fee will be established in order to allow for cost recovery of administering the program. The Development Services Department will be in charge of administering and enforcing the ordinance and STR program, since the permitting regulations fall within building and zoning codes. The operator will pay the TLT directly to the City’s Finance Department. The Development Services Department will have the authority to hire a 3rd party in order to provide short-tern rental administration services.
At the February 12, 2026 Housing and Community Development Committee meeting, the City Attorney’s Office presented the draft ordinance and was directed by the Committee to bring said ordinance to the
full City Council for review and approval. By a 2-1 vote, (CM’s Kaur and Smith voted yes; CM Koman voted no) the Committee directed the City Attorney’s Office to make the following change to the ordinance:
Allow residential development projects (apartments and condominiums) to seek a STR permit (Limit of 20% of units as STR in a development);
Staff met with the Bakersfield Realtors Association to dis cuss the STR ordinance. The Association expressed support for the STR ordinance and their suggestions involving having no maximum occupancy and children 12 and under not counting towards the limit have been incorporated.
At the May 27, 2026 City Council meeting, Councilmember Gonzales made a motion to approve first reading of the STR ordinance with the following two changes:
1. Reduce the liability insurance requirement from $1 million to $500,000;
2. Require STR platforms to collect the City’s TLT directly from all bookings processed through their platforms and remit those taxes to the City on behalf of STR operators.
The changes above are incorporated within Section 17.74.060 (D) and (E) of the ordinance.
On June 2, 2026, City staff spoke with an Airb&b representative regarding state law (Govt Code Sections 66333 and 66323) that went into effect in 2020 that prohibit ADU’s and JADU’s from being used as an STR and their position that STR’s for ADU’s and JADU’s pre-2020 were “grandfathered in.” City Staff clarified that City’s permissive zoning code specifically identifies uses allowed in all zones and STRs have never been allowed, therefore there is no “grandfathering in” of a use that has always been prohibited. The Airb&b representative also suggested certain language be added to provide clarity as it relates to a hosting platform facilitating TLT payments directly to the City. The City reviewed and made small non-substantive edits to Section 17.74.020 (E) that address the issues raised.
ENVIRONMENTAL REVIEW AND DETERMINATION
Pursuant to CEQA Guidelines Section 15061(b)(3), also known as the “general rule” or “common sense” exemption, CEQA exempts activities that can be seen with certainty to have no possibility for causing a significant effect on the environment. The CEQA Guidelines state in that section that “A project is exempt from CEQA if… [T]he activity is covered by common sense that CEQA applies only to projects which have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA.”
The proposed project involves adoption of a Short-Term Rental ordinance and does not in and of itself include any proposed development. The proposed project does not propose or approve any physical development. The proposed project will not result in changes to the physical environment, nor will it result in potential environmental impacts. A Notice of Exemption has been prepared.
PLANNING COMMISSION
On May 7, 2026, the Planning Commission held a public hearing regarding the enactment of Chapter 17.74 to Title 17 (Zoning) of the Bakersfield Municipal Code (BMC), which enacts the regulations for Short Term Rentals (STR). Notice of the public hearing was provided by placing a display advertisement of at least one-eighth page in the newspaper at least twenty days prior to the hearing. Notices were sent to those
parties which have specifically requested be sent a notice of public hearing. This notification process adheres to both city ordinance and state law. There were no speakers in fav or or in opposition at the hearing. No written comments have been received. The Commission unanimously (Commissioners Cater and Bittle were absent), voted to adopt Resolution No. 44 -26 recommending the City Council adopt Chapter 17.74 to Title 17 (Zoning) of the BMC.
FISCAL IMPACT:
A STR permit fee will be established in order to allow for cost recovery of administering the program. The Development Services Department will be in charge of administering and enforcing the ordinance and STR program, since the permitting regulations fall within building and zoning codes. The operator will pay the
Transient Lodging Tax (“TLT” more commonly referred to as “TOT”) directly to the City’s Finance Department. The Development Services Department will have the authority to hire a 3rd party in order to provide short-tern rental administration services.
COUNCIL GOAL:
Innovative and Efficient City Government
Safety and Resilience
ATTACHMENTS:
Ordinance