Cities Index.
Item E-1 Agenda Report

Beverly Hills City Council
July 1, 2025

Document
Item E-1 Agenda Report
Meeting
July 1, 2025
Body
Beverly Hills City Council
Pages
14
Original file
11.1 MB
Text extracted from the city's file for reading and search. Open the original on beverlyhills.granicus.com. That file is the official record.

A one-year minimum lease in all residential zones would form a more stable community and create a clear administrative path to preventing the cannibalization of housing by exploitative short-term rental operators. The attached City of Beverly Hills Short-Term Rental Data sheet demonstrates one web of short-term rental operators in Beverly Hills. This group of 8 short-term rental hosts on Airbnb has over 200 listings in Beverly Hills between them, many of which appear to be in apartment units. If operators like these are willing to violate the ban on short-term rentals under the current ordinance, it is likely they would continue trying to skirt enforcement under a new ordinance. With the reality of negligent short-term rental operators like these, Beverly Hills needs a clear and consistent definition of transient use as less than 12 months across all residential zones to enforce the ordinance. Both Santa Monica and West Hollywood have included the one-year minimum lease in their municipal codes. In fact, West Hollywood more recently standardized their minimum one-year lease to include single family residences and condos in addition to apartments and rental units. Their council made this decision to keep housing stock available for long-term community members rather than tourists in short-term rentals.2
Without a ban on short-term rentals coupled with strong enforcement, affordable multifamily units will continue to remain off the market to long-term tenants. Beverly Hill’s Housing Element prioritizes two goals that align with this recommendation: to provide a variety of housing types and adequate housing supply and to provide more affordable housing opportunities for those already working in the City. Besides removing long-term housing from the market, short-term rentals have also been shown to increase rents. A recent study, published in September 2024 by David Wachsmuth and Cloé St-Hilaire, investigated the impact that short-term rental regulations in British Colombia have on rents in the province. Their research found that shortterm rental regulations that reduce short-term rental activity caused rents to fall in subsequent years. Municipal short-term rental regulations across British Columbia have reduced rents by

5.7%, saving renters over $600 million last year in rent payments.3 Instituting high penalties for ordinance violations will also deter bad actors in the short-term rental space. The staff recommendation to include increased fee rates for successive violations, to the maximum amount allowed under state law, is also crucial to ensure that short-term rental operators do not find it profitable to break the law. The current penalty structure, which fines $100 for an initial violation and up to $500 for successive violations, does not make much of a dent in profits that a short-term rental operator could earn in one night. As of August 2024, the average cost a short-term rental in Beverly Hills was $727.30 per night. 4 A ban on short-term rentals is only as valuable as the enforcement that backs it. The staff time saved on implementing a permitting system for short-term rentals can be directed towards enforcement of the new ordinance. The City should implement a centralized enforcement system that immediately fines illegal short-term rental operators when they are found in violation. In Los Angeles, high administrative burden and a decentralized system of the Home-Sharing Ordinance 2 https://beverlypress.com/2024/03/weho-passes-one-year-housing-lease-rule/ 3 https://upgo.lab.mcgill.ca/publication/bc-str-2024/Wachsmuth_BC_STR_2024.pdf 4 Data on file with BNLA, Inside Airbnb: https://insideairbnb.com/ Better Neighbors Comment Letter
Agenda Item 5: Amending Short Term Rental Regulations

Page 3 of 4 ends

enforcement has led to rampant abuse of the short-term rental market. For example, in July of 2024, Los Angeles has over 6,000 listings that are noncompliant with the Home-Sharing Ordinance.5 Between January and August of 2024, the City only issued 97 citations despite the high number of noncompliant listing.6 Beverly Hills must take steps to ensure that the City has strong, easily enforceable rules with a low threshold of administrative burden in order to issue citations and maintain the ordinance’s effectiveness.

Beverly Hills is not alone in their push to ban short-term rentals. Many cities in Southern California have passed strong short-term rental regulations to protect long-term housing stock. In April 2024, the City of Santa Ana reconsidered their existing de facto short-term rental ban and voted to codify the ban to meet their California Department of Housing and Community Development Regional Housing Needs Allocation requirement. 7 The City Councils of Calabasas,
Diamond Bar, Rosemead, Culver City, West Hollywood, San Gabriel, La Habra, La Mirada, Lakewood, Rolling Hills, Redondo, Lawndale, Garden Grove, and Laguna Hills have short-term rentals bans in place.
8 West Hollywood has strengthened their enforcement further by including a private right of action in their ordinance, which allows affected residents to take legal action against short-term rentals operators and platforms.

BNLA urges the Commission to recognize the scale of the short-term rental market in Beverly Hills. The attached City of Beverly Hills Short-Term Rental Data sheet shows that there has been a 259% increase in short-term rental listings on Airbnb between January 2022 and August 2024. A short-term rental ban will preserve City resources, protect residents from the negative effects of short-term rentals, and safeguard long-term residents from increasing housing costs and the threat of displacement. For these reasons, Better Neighbors requests the Planning Commission to move forward with a proposal to protect residents by banning short-term rentals 5 Data on file with BNLA from Los Angeles City Granicus data. https://granicus.com/ 6 Data on file with BNLA from Los Angeles City Planning Department. 7 https://www.santa-ana.org/short-term-rentals-ban/ 8 Calabasas:
https://library.municode.com/ca/city_of_calabasas/codes/code_of_ordinances?nodeId=TIT17LAUSDE_ARTIIZODIALLAUS_C H17.12STSPLAUS_17.12.175SHRMREOCPRPREXLAAPHOMOBEBRIN
Diamond Bar: https://www.diamondbarca.gov/Faq.aspx?QID=314 Rosemead: https://library.municode.com/ca/rosemead/ordinances/code_of_ordinances?nodeId=900458 Culver City: https://www.culvercity.org/Have-Your-Say/Short-Term-Rentals West Hollywood: https://ecode360.com/43916115?highlight=rental,rentals&searchId=1904165411732459#43916115 San Gabriel: https://www.sangabrielcity.com/1341/Frequently-Asked-Questions#:~:text=Shortterm%20rentals%20(anything%20less,term%20rental%20or% La Habrá: https://www.lhhcity.org/325/Short-Term-Rentals La Mirada:
https://www.airbnb.com/help/article/2692#:~:text=Short%2Dterm%20rentals%20in%20residential,not%20permitted%20in%20L a%20Mirada.

Lakewood: https://www.lakewoodcity.org/Business/Short-term-rentals Rolling Hills:
https://library.municode.com/ca/rolling_hills_estates/codes/code_of_ordinances?nodeId=TIT17ZO_CH17.47SHRMRERE_17.47 .020PU
Redondo Beach: https://www.redondobeachtourism.com/news/airbnb Lawndale: https://ecode360.com/LA4957
Garden Grove: https://ggcity.org/code-enforcement/short-term-vacation-rental-detailed-terms Laguana Hills: https://voiceofoc.org/2023/05/hed-laguna-hills-bans-short-term-rentals/ Better Neighbors Comment Letter
Agenda Item 5: Amending Short Term Rental Regulations

Page 4 of 4 ends

in all residential units, establishing a one-year minimum lease for all residential zones; and creating a specific penalty schedule for violations that set fines to the maximum extent allowed under state law. Should you have any questions, please contact Maura O’Neill at [email protected].

Sincerely,
/s/ Randy Renick
250 East 1st Street, Suite 1201; Los Angeles, California 90012 213.336.5900  betterneighborsla.org
l
City of Beverly Hills Short-Term Rental Data
This report presents data on the short-term rental market in the City of Beverly Hills. The report includes the total number of short-term rentals (STRs) operating in Beverly Hills since January 2022 and the rise of commercial hosts in recent years.

Short-Term Rentals in Beverly Hills
Above is a chart displaying a snapshot of the number of active STR listings on Airbnb from January 2022 to August 2024 in Beverly Hills. The listings are broken down into unhosted units, meaning the entire dwelling unit is being rented out, and hosted units, meaning there is a host on site renting out a section or room of their home. The chart was created using data from Inside Airbnb, which collects listing data from Airbnb to put together a picture of the long term and short-term rental market in an area.1
Better Neighbors LA (BNLA) compared data from Inside Airbnb to determine the number of active STR listings in Beverly Hills in January 2022 compared to January 2024. The chart below displays the growth in STRs, particularly unhosted STRs, over time. According to Inside Airbnb, there has been at least a 259% increase in the total number of short-term rentals from January 2022 to January 2024. As set forth in the chart below, during this time, there has been a 328% increase in the number of unhosted rentals of entire homes and apartments. 1 Data on file with BNLA, Inside Airbnb: https://insideairbnb.com/. 0 200
400
600
800
1000
1200
1400
1600
January 2022 August 2022 January 2023 August 2023 January 2024 August 2024 Short Term Rentals in Beverly Hills from January
2023- August 2024, Inside Airbnb
Unhosted STRs Hosted STRs
Better Neighbors LA, November 14, 2024 Page 2
250 East 1st Street, Suite 1201; Los Angeles, California 90012 213.336.5900  betterneighborsla.org
Beverly Hills Short-Term Rentals by Type, Inside Airbnb Room Type January 2022 January 2024 % Change
Entire home/
apartment
318 1362 328%
Private, shared
or hotel room
106 160 51%
Total listings 424 1522 259%
Short-Term Rental Prices
Short-term rentals in Beverly Hills also continue to increase in price. AirDNA2 combines data from the two top STR platforms, Airbnb and VRBO, to demonstrate the STR market in a particular area. Using data from AirDNA, BNLA determined that the average daily rate of short-term rentals in Beverly Hills increased $95.25 to $531.67 from 2018 to 2023.
3 The chart below depicts the trend in STR prices over time.

Beverly Hills Average Daily Rate of Short-Term
Rentals, AirDNA
Year Average Daily Rate (adjusted
for inflation)
2018 $ 436.42
2019 $ 417.00
2020 $ 365.92
2021 $ 368.08
2022 $ 416.00
2023 $ 531.674
Inside Airbnb, though only representative of listings on the Airbnb website, also validates this trend in price. As of August 2024, the average cost of a short-term rental was $727.30 per night, an increase of 11.7% compared to the previous year in August 2023.

Beverly Hills Average Short-Term Rentals Price, Inside Airbnb August 2023 August 2024 Percent Change $ Amount Change
$ 651.20 $ 727.30 11.7 % $ 76.10
2 https://www.airdna.co/
3 Data on file with BNLA. Average daily rate reflects a combined total for unhosted and hosted. 4 Average daily rate for March 2023 was calculated based off of first 3 months of 2023 given data limitations.

Better Neighbors LA, November 14, 2024 Page 3
250 East 1st Street, Suite 1201; Los Angeles, California 90012 213.336.5900  betterneighborsla.org
Commercial Hosts
The rise of commercial hosts, or hosts that have multiple listings, has increased significantly, indicating a trend in the corporatization of housing stock for tourist serving accommodations. Commercial hosts have at least one listing in Beverly Hills, then one or more additional listings on their Airbnb host profile. The chart below breaks down hosts in Beverly Hills by the number of listings on their profiles. In January 2021, the average number of listed homes per host in Beverly Hills was 1.9 and has since risen to 5.2 in January 2024. In addition, 38% of hosts list more than one entire property on their profile in 2024, up from 21% of hosts in Beverly Hills in January 2021. While hosts listing one entire home increased by only 14% since 2021, the total number of commercial hosts has risen by 160%.

Number of Hosts with STRs on Airbnb5
Number of Listings
On Host’s Profile
January
2021
January
2023
January
2024
Percent Change from January
2021 to January 2024
1 listing 173 170 197 14%
2 to 5 listings 51 52 81 59%
6+ listings 11 22 41 273%
Commercial Host
Total 47 74 122 160%
Average listing per
host 1.9 3.6 5.2 174%
Using data from Inside Airbnb, BNLA uncovered a web of commercial operators in Beverly Hills who are primarily listing apartment units. We found 8 operators who seem to be hosting similar STRs in the city, as demonstrated by their listing photos and descriptions. Each of these hosts had 15 or more listings in Beverly Hills. Based on Airbnb listing data from August 2024, the host Michelle had 39 listings,6 Billy had 33,7 Gabriela had 31,8 Miguel A had 27,9 Theresa had 26,10 Amanda had 25,11 Fernanda had 21,12 and April had 15.13 All of them have currently active profiles that each have 30 or more listings. Their operation, which based on reviews has been going on for at least 9 years, is an obvious example of valuable rental units being converted into de facto hotels. As the screenshots below demonstrate, these STR listings ask for a few hundred dollars a night per room; however, the reviews make it clear that the STR operators are not trustworthy and many of the units are not in good condition. 5 Data on file with BNLA, Inside Airbnb: https://insideairbnb.com/. 6 Michelle: https://www.airbnb.com/users/show/485134033 7 Billy: https://www.airbnb.com/users/show/484449751 8 Gabriela: https://www.airbnb.com/users/show/466578599 9 Miguel A: https://www.airbnb.com/users/show/520941808 10 Theresa: https://www.airbnb.com/users/show/520942518 11 Amanda: https://www.airbnb.com/users/show/521511226 12 Fernanda: https://www.airbnb.com/users/show/484275960 13 April: https://www.airbnb.com/users/show/484338505 Better Neighbors LA, November 14, 2024 Page 4
250 East 1st Street, Suite 1201; Los Angeles, California 90012 213.336.5900  betterneighborsla.org

Vito Teruna
Kape Property Management, Inc.

CAUTION: EXTERNAL SENDER
Be cautious when clicking links or opening attachments. Verify the sender's email address and be on the lookout for phishing attempts.

From: Kathy Bronte
To: Karen Myron; CommentPC
Cc: Terri Kaplan; Jeff Wolfe; Myra Demeter; Lou Milkowski; Gary Ross Subject: Concerns Regarding Short-Term Rentals and Home Occupation Business Licenses Date: Wednesday, November 13, 2024 6:59:45 PM
Hi Karen-----
Happy Almost Thanksgiving!!!!!!
I would like to include this comment for the November 13, 2024 Planning Commission meeting as I will unfortunately not be able to attend.
:)
Thank you very much
Kathy Bronte
Good afternoon, Chair Kaplan, Vice Chair Wolfe, Commissioners Demeter, Milkowski, and Ross,
And a special greeting to all the staff,
First and foremost, I would like to express my sincere appreciation for the Commission’s willingness to revisit the issues of short-term rentals and the guidelines for home occupation business licenses. I regret that I am out of the country and unable to attend this meeting in person, as these topics are not only personal, but also of great importance to all residents of our city.

Back in August 2024, I had the opportunity to share my concerns regarding short-term rentals during your meeting, and unfortunately, my issue remains unresolved. Over eight months ago, I met with Mr. Forbes and Ms. Medina to discuss the impact of Airbnbs in multi-unit buildings, but there has been no progress in addressing these concerns. Just two days ago, I was informed by Code Enforcement that they have closed my case, despite my repeated attempts to follow up over the past six months. I have provided substantial evidence regarding violations in the upstairs unit, yet Ms. Medina has not prioritized these short-term rental issues.

To make matters more frustrating, Code Enforcement has recently introduced additional layers of bureaucracy, making it even more difficult to prove violations or enforce existing codes. This only adds to the challenges we face, despite having clear evidence of ongoing violations. I strongly believe that short-term rentals should be banned in both single-family and multi-family homes within our city, and that enforcement should be consistent and equally applied to ensure all residents can enjoy a peaceful living environment.

Additionally, I would like to address concerns regarding home occupation businesses. The upstairs tenant in my building holds a home occupation business license for a piano studio, operating in a residentially zoned area. While personal enjoyment of musical instruments is allowed, I do not believe the code permits the scale of this business, which involves 2-3 hours of lessons, 5-6 days a week, in addition to rehearsals, recitals, and allowing others to use the instrument for practice. This results in 5-7 hours of activity daily. For example, just four days ago, we endured 6.5 hours of continuous playing on Saturday. On Veteran’s Day, lessons began loudly at 10:00 a.m. and continued until 8:00 p.m., with students coming in and out of the duplex throughout the day.

According to the code, a home occupation business, such as professional lessons, must be “incidental to the residential use and cannot alter the primary use of the dwelling.” In my view, the piano studio is in violation of this provision, as it is a pedagogical activity, not an artistic business like composing — whereas tutoring is not prohibited presumably because it does not involve noise that could impact others. Additionally, education, childcare, and even religious uses are prohibited in R4 zones, except with a Conditional Use Permit (CUP), because these activities can impact neighbors—impacts which music instruction similarly generates.

Yet, we are unable to rely on Code Enforcement to take meaningful action. Despite 18 months of documentation, complaints, and audio/video evidence, Ms. Medina recently closed our case, claiming that officers did not find the piano studio activity to be a nuisance or disturbance. I firmly believe that any code violation should be taken seriously and prioritized, as it significantly impacts the quality of life for residents.

Given these concerns, I respectfully request that the Commission consider adding a provision to the home occupation business license application, or amend the current guidelines, to prohibit all music lessons, rehearsals, and recitals involving instruments in residential areas, as outlined in BHMC 10-3-302. This is especially important in rentstabilized multi-unit buildings, where such activities can infringe upon residents' right to quiet enjoyment of their homes.

Thank you for your time and consideration. I look forward to seeing meaningful action that will protect the quality of life for all residents.

Happy Thanksgiving to each of you and your families!
Best regards,
Kathy Bronte

250 East 1st Street, Suite 1201; Los Angeles, California 90012 213.336.5900  betterneighborsla.org
January 28, 2025
Via Electronic Mail: [email protected]
Beverly Hills City Council
455 North Rexford Drive
Beverly Hills, CA 90210
Re: Better Neighbors LA Comment Letter – Request to Continue to a Date Uncertain the First Reading of a Draft Ordinance Amending Short Term Rental Regulations (Transient Uses) for Single Family and Multi-Family Residential Zones – Agenda Item F-1 Dear Mayor Friedman and Councilmembers,
Better Neighbors LA (“BNLA”) is a coalition of tenants, housing activists, and community members working to curb illegal short-term rental (“STR”) activity with the intent to protect long-term housing.1 We conduct data analysis and research on the short-term rental industry and its impact on affordable housing.

BNLA writes to you regarding City Staff’s request to continue to a date uncertain the first reading of the Draft Ordinance Amending Short Term Rental Regulations (Transient Uses) for Single Family and Multi-Family Residential Zones (the “Draft Ordinance to Amend”) (Agenda Item F-1). BNLA believes the Draft Ordinance to Amend is important to protect long-term housing for Beverly Hills residents. Protecting long-term housing is especially critical now that so many have been displaced because of the recent and tragic wildfires.

On January 16, the Beverly Hills City Council has passed the Urgency Ordinance for Emergency Short Term Rentals (Ordinance No. 25-O-2908) (the “Urgency Ordinance”) to support the immediate housing needs of displaced residents. The Urgency Ordinance will be in effect for up to 180 days. Immediately afterwards, however, displaced residents will be in dire need of long-term housing, not short-term stays of fewer than 30 days (“STRs”). The City of Beverly Hills must pass the Draft Ordinance to ensure as much long-term housing, not STRs, is available to meet displaced residents’ housing needs. The most effective way to do so is to ensure the Draft Ordinance to Amend is already approved and in place to be effective once the Urgency Ordinance expires. Accordingly, Beverly Hills should make it a priority to vote on the Draft Ordinance to Amend as soon as possible.
1 https://www.betterneighborsla.org/
Better Neighbors Comment Letter
Agenda Item F-1

Page 2 of 2 ends

BNLA is concerned about the impact of the wildfires on housing availability in Los Angeles County. Now, more than ever, local governments should take every step possible to protect housing units for families, not for STR businesses to turn a profit. STR rentals of fewer than 30 days offer a temporary stop gap, at best, but at the risk of supporting the conversion of long-term housing units into dedicated STRs. As of January 2025, the average cost of a short-term rental in Beverly Hills was $703.60 per night.
2 Whether offering a whole house, or just a spare room, every STR represents housing that can be offered to a long-term resident displaced by the fires.

We are in support of the Draft Ordinance to Amend, which prohibits STRs in single-family residential, multi-family residential, and Mixed-Use Overlay zones, and creates a specific penalty schedule for violations that set fines to the maximum extent allowed under state law.

The Draft Ordinance to Amend also establishes a one-year minimum lease within single-family residential zones. We encourage the City Council to extend the benefit of the minimum year lease to multi-family residential zones, as well. This would create consistent housing regulations and best promote housing affordability in the city. Long-term housing is best protected by consistent regulations prohibiting STRs across all housing stock.

Consistent lease requirements across all residential zones would also support a more stable community and create a clear administrative path to protecting long-term housing from being cannibalized to serve the STR industry. In November 2024, BNLA identified a web of STR operators in Beverly Hills. (See attached Data Sheet). This group of 8 “hosts” monopolize more than 200 Beverly Hills apartments to serve their enterprise. Egregious operators should be the target of City enforcement efforts. To make Beverly Hills’ housing ordinances more enforceable, the City needs clear and consistent regulations across single, and multi-family, zones. Both Santa Monica and West Hollywood require landlords offer tenants a one-year minimum lease. In fact, West Hollywood recently extended their lease requirements to apply to single-family residences and condos in addition to apartments and rental units. In doing so, the West Hollywood City Council implemented an extension to preserve housing stock for long-term residents. 3 BNLA urges the Beverly Hills City Council to ensure the Draft Ordinance to Amend becomes effective immediately after the Urgency Ordinance expires. Better Neighbors recommends that the City Council protect its residents and housing by banning short-term rentals in all residential units, establishing a one-year minimum lease for all residential zones; and authorizing penalties up to the maximum extent allowed under state law. Should you have any questions, please contact Maura O’Neill at [email protected].

Sincerely,
/s/ Randy Renick
2 Data on file with BNLA, Inside Airbnb: https://insideairbnb.com/ 3 https://beverlypress.com/2024/03/weho-passes-one-year-housing-lease-rule/

Mitchell R. Miller
Attorney at Law
133 North Almont Drive, #203
Beverly Hills, California 90211
Tel: (310) 277-1848
Fax: (310) 388-1192
www.TaxPlanningForYou.com
www.EstatePlanningForYou.com
www.linkedin.com/in/mitchmillertaxlaw
The information contained in this e-mail message is intended only for the personal and confidential use of the recipient(s) named above. This message may be an attorney-client communication and/or work product and as such is privileged and confidential. If the reader of this message is not the intended recipient or an agent responsible for delivering it to the intended recipient, you are hereby notified that you have received this document in error and that any review, dissemination, distribution, or copying of this message is strictly prohibited. If you have received this communication in error, please notify us immediately by e-mail, and delete the original message.
1/14/25, 11:53 AM FW: Comment on Ordinance Amending Short-Term Rental Regulations - Chloe Chen - Outlook about:blank 2/2

just don't understand the logic of having a minimum one year lease. If the fridge is on, but the landlords freedom as well as the renters freedom.  Imagine if the city of LA did this.  It would take away options for a lot of people like traveling nurses, students, and people who may be just moving here and don't know where exactly they want to live.

Please reconsider this law.

David Kornblum
1/14/25, 11:52 AM FW: Short term rental ordinance - Chloe Chen - Outlook about:blank 2/2

1 June 23, 2025
Dear Esteemed Mayor and Councilmembers,
My name is Deborah Blum. I grew up in Beverly Hills and after marriage moved back here — to my childhood home — and raised my three sons. I have a deep love for this town.

I’m here to talk about the house I lived in as a child, and still live in now. I’m also here to talk about the wisdom of attempting to preserve, as best we can, an architectural record of historical Beverly Hills.

My house is a 1913 Craftsman, commissioned by Edmund Locke, Beverly Hills’ first judge, and later home to Joe Kennedy. It is located at the corner of Rodeo and Lomitas.

My parents bought the house in 1941, and my husband and I bought it from them, in 1989.

When we first moved in, the house was close to collapse. We poured our life savings into restoring it. In 2013 the Beverly Hills Cultural Heritage Commission designated the Locke House an historical landmark.

The maintenance of the house has been near prohibitively expensive.

On and off, for the last 20 years, we have relied on income we’ve received from the short term rental of our guesthouse, which sits opposite our kitchen windows. All of these rentals have taken place while we’ve been residing on the premises.

Now the Planning Commission is recommending an ordinance that will ban short term rentals.

As retirees, with my husband battling a blood cancer, we are here to humbly ask that the council, in writing the modified short term rental ordinance, allow for some flexibility so that we can continue to protect this treasure. We propose that the city allow us to regularly rent the guesthouse on our property for less than 30 days, while we continue to reside in the main house.

We are asking for an exemption because the house is an historic landmark.

Our rationale is based not solely on what is good for us, but also for what benefits the city. Historic preservation is not merely sentimental; it is a proven economic strategy.

Cities like Savannah, Charleston, and Pasadena have shown how the careful conservation of historic architecture can drive cultural tourism and stimulate local business. Currently, less than ten single-family landmark houses exist in Beverly Hills — each a snapshot of the city's illustrious past.
2 The Cultural Heritage Commission has set a precedent for carving out incentives for owners of landmark properties, including modifications or waivers from zoning regulations. To this end the Cultural Heritage site states that the Planning Commission and the City Council have wide latitude in determining appropriate accommodations for each property.

There may be other home owners who are debating whether or not to apply for landmark status. By creating thoughtful incentives, Beverly Hills has an opportunity to not just preserve its architectural heritage, but to induce others to register their homes, transforming these sites into dynamic economic and cultural assets.

We understand that the staff of code enforcement may see this carve-out as complicating their job of catching violators but assume the city implements a system that flags all alleged violators. Any property owner who is identified would then be required to prove that his house has landmark status. The onus would entirely be on the property owner to validate his exemption, effectively creating a self-regulating mechanism that requires no extra work. This low-effort solution protects the city's interests while providing a practical pathway for responsible historic property owners to maintain their homes.

I appreciate your careful consideration of our request and am available to discuss any questions or concerns.

Thank you for your time.

Sincerely,
Deborah Blum
801 N. Rodeo Drive
Beverly Hills 90210
310-490-3171

Victor De la Cruz
Manatt, Phelps & Phillips, LLP
Direct Dial: (310) 312-4305
[email protected]
Manatt, Phelps & Phillips, LLP 2049 Century Park East, Suite 1700, Los Angeles, California 90067 Tel: 310.312.4000 Fax: 310.312.4224 June 25, 2025 Client-Matter: 70815-031
Mayor Nazarian and Councilmembers
City of Beverly Hills
455 N. Rexford Dr.

Beverly Hills, CA 90210
Re: Comments on Proposed Short-Term Rental Regulations Ordinance Dear Mayor Nazarian and Honorable Councilmembers:

We are writing on behalf of The Belvedere Partnership dba The Peninsula Beverly Hills (the “Peninsula”), to provide comments on the City of Beverly Hills’ proposed short-term rental regulations ordinance, which we understand you are currently scheduled to consider at your meeting of July 1, 2025.

At the outset, we would like to thank both staff of the Department of Community Development and the City Planning Commission for all their hard work arriving at a proposed draft ordinance that we believe is leagues better than the current regulatory scheme. The proposed ordinance will better ensure that short-term rentals do not continue to adversely impact the City’s collection of transient occupancy tax, the character of the City’s residential neighborhoods, and the affordable housing crisis plaguing the region.

Attached to this letter are our proposed minor amendments to the draft ordinance in redline form, together with comments explaining our rationale for them. You will see that the bulk of our comments have to do with enforcement, given the high degree of evasion and noncompliance that Beverly Hills and other cities throughout Southern California have experienced, and which we believe should be of special concern in Beverly Hills, where violators would be willing to take their chances on receiving and ignoring citations given the high revenue amounts that short-term rentals in the City command.

The Peninsula is concerned that the hotel business in Beverly Hills has and will continue to be negatively impacted by illegal short-term rentals throughout the region.

We know the City understands that the City’s marquee hotels—some of the finest in the world—are here in Beverly Hills, and the City has much to gain from their continued Honorable Mayor Nazarian and Councilmembers
June 25, 2025

Page 2 ends

success and the transient occupancy tax they bring to the City’s coffers. As such, we hope you will work with our client on arriving at ordinance language that provides real enforcement mechanisms that best ensure compliance.

Thank you very much for your time and attention to this matter.

Very truly yours,
Victor De la Cruz
Manatt, Phelps & Phillips, LLP
cc: Chloe Chen, Principal Planner, Long-Range Planning, Community Development Department
[DRAFT] ORDINANCE NO. 24-OAN ORDINANCE OF THE CITY OF BEVERLY HILLS

AMENDING SHORT TERM RENTAL REGULATIONS
(TRANSIENT USES) FOR SINGLE FAMILY AND

MULTIFAMILY RESIDENTIAL ZONES AND THE MIXED USE

OVERLAY ZONE, AND OTHER RELATED AMENDMENTS,

AND MAKING A DETERMINATION OF EXEMPTION UNDER

THE CALIFORNIA ENVIRONMENTAL QUALITY ACT
(CEQA)
THE CITY COUNCIL OF THE CITY OF BEVERLY HILLS DOES ORDAIN AS FOLLOWS:

Section 1. On August 8, 2024, the Planning Commission held a study session to discuss the topic of short term rentals, and the potential these uses have to deprive the City of transient occupancy tax, create adverse impacts on the residential character of the single-family and multi-family residential areas of the City, create nuisances related to this activity, and to exacerbate the affordable housing crisis in the region because of the conversion of long term housing stock into short term rentals. The Commission directed staff to amend existing short term rental regulations to prohibit such uses in all residential zones.

Section 2. On November 14, 2024, the Planning Commission held a duly noticed public hearing to discuss the proposed Amendments to the BHMC pertaining to short term rental regulations, also known as single-family and multi-family transient uses, after which it adopted Resolution No. recommending that the City Council adopt the proposed changes (collectively, the “Amendments”). On , the City Council held a duly noticed public hearing, received public testimony, and thereafter introduced this Ordinance.

Section 3.The Amendments were assessed in accordance with the authority and criteria contained in the California Environmental Quality Act (CEQA), the State CEQA Guidelines, and the environmental regulations of the City. The Planning Commission recommends that the Commented [VD1]: An additional major problem created
by illegal short-term rentals is that the City loses out on transient occupancy tax. It may want to include this
additional rationale.

City Council find the ordinance is exempt from CEQA because it can be seen with certainty that there is no potential for such ordinance to have a significant adverse effect on the environment pursuant to CEQA Guidelines Section 15061(b)(3). Section 15061(b)(3) of Title 14 of the California Code of Regulations states that CEQA applies only to projects which have the potential for causing a significant effect on the environment. The Amendments do not authorize construction and only involve revisions to existing standards and land use limitations for certain residential zones in the City. Therefore, it can be seen with certainty that the draft ordinance has no potential to cause a significant effect on the environment and the Amendments are categorically exempt from further review under CEQA pursuant to Section 15061(b)(3) and 15305 of Title 14 of the California Code of Regulations.

Section 4. The Amendments are consistent with the objectives, principles, and standards of the General Plan. The Housing Element of the General Plan includes Goal H1 – Maintenance and Conservation, which encourages the maintenance of the quality and character of existing housing and residential neighborhoods, and Policy H1.5 – Conservation of Existing Rental Housing calls for preventing the loss of existing residential units. Similarly, the Housing Element sets forth Goal H2 – Housing Supply and Diversity, which calls for the provision of a variety of housing types and adequate affordable housing supply. Goal H3 – Fair Housing and Special Needs Residents promotes equal housing opportunities for all residents, especially persons with disabilities, homeless, and those at risk of homelessness. General Plan Land Use (LU) Policy 5.1 - Neighborhood Conservation calls for the maintenance of the uses, densities, character, amenities, and quality of the City’s residential neighborhoods, recognizing their contribution to the City’s identity, economic value, and quality of life. Goals LU 6 – SingleFamily Residential Neighborhoods and LU 7 – Multi-Family Residential Neighborhoods require that both single- family and multi-family neighborhood identities are maintained with regard to character, identity, and amenities. Amending sections of the Beverly Hills Municipal Code to limit short term rental uses in residential zones will meet several of the stated objectives, standards, goals, and policies of the General Plan. The Amendments will further protect the identity of residential neighborhoods by prohibiting potentially adverse impacts and preserving housing opportunities for a range of household types, which will further the public interest, health, safety, morals, peace, comfort, convenience, or general welfare.

Section 5. The definition of “Multi-Family Transient Use” in Section 10-3-100 (Words Defined) in Article 1 (Definitions) of Chapter 3 (Zoning) of Title 10 (Planning and Zoning) of the BHMC is hereby amended to read as follows, with all other definitions in Section 10-3-100 remaining in place without amendment:
“MULTI-FAMILY TRANSIENT USE: Rental or lease for habitation or exclusive use of a multi-family dwelling unit or any portion thereof, or accessory dwelling unit(s), including any residential dwelling unit in a building or project that contains a hotel, for a period of less than thirty (30) dayssix (6) consecutive months within a 12-month calendar year period; or the rental of an accessory structure, or any other feature or portion of multifamily residential property including but not limited to pools, game courts, and yards. The initial minimum lease term shall not preclude a lease from reverting to a month-to-month lease after the initial term has concluded. A multi-family transient use is facilitated and advertised by a third-party commercial hosting platform.” Section 6. The definition of “Single-Family Transient Use” in Section 10-3-100 (Words Defined) in Article 1 (Definitions) of Chapter 3 (Zoning) of Title 10 (Planning and Commented [VD2]: It is critical that many of the hotel
projects with large residential components are not able to evade the ordinance. This language provides that important clarification.

Commented [VD3]: There are multiple ways by which
transient uses are established, including brokers, hotel reservation systems, etc. This language could create a very significant loophole and is unnecessary.

Zoning) of the BHMC is hereby amended to read as follows, with all other definitions in Section 10-3-100 remaining in place without amendment:
“SINGLE-FAMILY TRANSIENT USE: Rental or lease for habitation or exclusive use of a single-family residence, or accessory dwelling unit(s) of a single-family residence for a period of less than twelve (12) consecutive months; or the rental of an accessory structure, or any other feature or portion of multia single-family residential property including but not limited to pools, game courts, and yards. The initial minimum lease term shall not preclude a lease from reverting to a month-to-month lease after the initial term has concluded. A single-family transient use is one that is intended for vacation purposes that is facilitated and advertised by a third-party commercial hosting platform, and not for rental of a multi- family dwelling unit as a primary residence. Single-family transient uses do not include home occupation activities authorized pursuant to Section 10-3-4302 or filming and photography activities permitted pursuant to Section 4-3-101 et seq.” Section 7. Section 10-3-401 (Uses and Buildings Permitted) of Article 4 (One-Family Residential Zone (R-1)) of Chapter 3 (Zoning) of Title 10 (Planning and Zoning) of the BHMC is hereby amended to read as follows:
“10-3-401: USES AND BUILDINGS PERMITTED:

Except as otherwise provided in this article, no lot, premises, building or portion thereof in zone R-1 shall be erected, constructed, built, altered, enlarged, built upon, used, or occupied for any purpose except as a private one-family residence, family daycare homes licensed pursuant to state law, small or large residential community care facility operating in compliance with section 10-3-2778 of this chapter, or transitional or supportive housing.” Commented [VD4]: This is a typo in the Planning
Commission-approved version.

Commented [VD5]: There are multiple ways by which
transient uses are established, including brokers, hotel reservation systems, etc. This language could create a very significant loophole and is unnecessary.

Section 8. Section 10-3-406 (Businesses Prohibited) of Article 4 (One-Family Residential Zone (R-1)) of Chapter 3 (Zoning) of Title 10 (Planning and Zoning) of the BHMC is hereby amended to read as follows:
“10-3-406: BUSINESSES PROHIBITED:

Except as provided in article 43 of this chapter, no business shall be conducted or maintained in any building or upon any lot or premises, or upon any portion of either thereof, in zone R-1. All property and buildings in zone R-1 hereby are limited to strictly private one-family residential uses except as otherwise provided in this article. A singlefamily transient use of a “single-family residence” or “accessory dwelling unit”, as defined in section 10-3-100 of this chapter is prohibited.”
Section 9. Section 10-3-501 (Uses and Buildings Permitted) of Article 5 (One-Family Residential Zone (R-1.X)) of Chapter 3 (Zoning) of Title 10 (Planning and Zoning) of the BHMC is hereby amended to read as follows:
“10-3-501: USES AND BUILDINGS PERMITTED:

Except as otherwise provided in this article, no lot, premises, building or portion thereof in zone R-1.X shall be erected, constructed, built, altered, enlarged, built upon, used, or occupied for any purpose except as a private one-family residence, family daycare homes licensed pursuant to state law, small or large residential community care facility operating in compliance with section 10-3-2778 of this chapter, or transitional or supportive housing structured as a single-family residence.”
Section 10. Section 10-3-508 (Businesses Prohibited) of Article 5 (One-Family Residential Zone (R-1.X)) of Chapter 3 (Zoning) of Title 10 (Planning and Zoning) of the BHMC is hereby amended to read as follows:
“10-3-508: BUSINESSES PROHIBITED:

Except as provided in article 43 of this chapter, no business shall be conducted or maintained in any building or upon any lot or premises, or upon any portion of either thereof, in zone R-1.X. All property and buildings in zone R-1.X hereby are limited to strictly private one-family residential uses except as otherwise provided in this article. A single-family transient use of a “single-family residence” or “accessory dwelling unit”, as defined in section 10-3-100 of this chapter is prohibited.” Section 11. Section 10-3-601 (Uses and Buildings Permitted) of Article 6 (One-Family Residential Zone (R-1.5)) of Chapter 3 (Zoning) of Title 10 (Planning and Zoning) of the BHMC is hereby amended to read as follows:
“10-3-601: USES AND BUILDINGS PERMITTED:

Except as otherwise provided in this article, no lot, premises, building or portion thereof in zone R-1.5 shall be erected, constructed, built, altered, enlarged, built upon, used, or occupied for any purpose except as a private one-family residence, family daycare home licensed pursuant to state law, small or large residential community care facility operating in compliance with section 10-3-2778 of this chapter, or transitional or supportive housing structured as a single-family residence.”
Section 12. Section 10-3-607 (Businesses Prohibited) of Article 6 (One-Family Residential Zone (R-1.5)) of Chapter 3 (Zoning) of Title 10 (Planning and Zoning) of the BHMC is hereby amended to read as follows:
“10-3-607: BUSINESSES PROHIBITED:

Except as provided in article 43 of this chapter, no business shall be conducted or maintained in any building or upon any lot or premises, or upon any portion of either thereof, in zone R-1.5. All property and buildings in zone R-1.5 hereby are limited to strictly private one-family residential uses except as otherwise provided in this article. A single-family transient use of a “single-family residence” or “accessory dwelling unit”, as defined in section 10-3-100 of this chapter is prohibited.” Section 13. Section 10-3-701 (Uses and Buildings Permitted) of Article 7 (One-Family Residential Zone (R-1.5X)) of Chapter 3 (Zoning) of Title 10 (Planning and Zoning) of the BHMC is hereby amended to read as follows:
“10-3-701: USES AND BUILDINGS PERMITTED:

Except as otherwise provided in this article, no lot, premises, building or portion thereof in zone R-1.5X shall be erected, constructed, built, altered, enlarged, built upon, used, or occupied for any purpose except as a private one-family residence, family daycare home licensed pursuant to state law, small or large residential community care facility operating in compliance with section 10-3-2778 of this chapter, or transitional or supportive housing structured as a single-family residence.”
Section 14. Section 10-3-704 (Businesses Prohibited) of Article 7 (One-Family Residential Zone (R-1.5X)) of Chapter 3 (Zoning) of Title 10 (Planning and Zoning) of the BHMC is hereby amended to read as follows:
“10-3-704: BUSINESSES PROHIBITED:

Except as provided in article 43 of this chapter, no business shall be conducted or maintained in any building or upon any lot or premises, or upon any portion of either thereof, in zone R-1.5X. All property and buildings in zone R-1.5X hereby are limited to strictly private one-family residential uses except as otherwise provided in this article. A single-family transient use of a “single-family residence” or “accessory dwelling unit”, as defined in section 10-3-100 of this chapter is prohibited.” Section 15. Section 10-3-801 (Uses and Buildings Permitted) of Article 8 (One-Family Residential Zone (R-1.5X2)) of Chapter 3 (Zoning) of Title 10 (Planning and Zoning) of the BHMC is hereby amended to read as follows:
“10-3-801: USES AND BUILDINGS PERMITTED:

Except as otherwise provided in this article, no lot, premises, building or portion thereof in zone R-1.5X2 shall be erected, constructed, built, altered, enlarged, built upon, used, or occupied for any purpose except as a private one-family residence, family daycare home licensed pursuant to state law, small or large residential community care facility operating in compliance with section 10-3-2778 of this chapter, or transitional or supportive housing structured as a single-family residence.”
Section 16. Section 10-3-805 (Businesses Prohibited) of Article 8 (One-Family Residential Zone (R-1.5X2)) of Chapter 3 (Zoning) of Title 10 (Planning and Zoning) of the BHMC is hereby amended to read as follows:
“10-3-805: BUSINESSES PROHIBITED:

Except as provided in article 43 of this chapter, no business shall be conducted or maintained in any building or upon any lot or premises, or upon any portion of either thereof, in zone R-1.5X2. All property and buildings in zone R-1.5X2 hereby are limited to strictly private one-family residential uses except as otherwise provided in this article.

A single-family transient use of a “single-family residence” or “accessory dwelling unit”, as defined in section 10-3-100 of this chapter is prohibited.” Section 17. Section 10-3-901 (Uses and Buildings Permitted) of Article 9 (One-Family Residential Zone (R-1.6X)) of Chapter 3 (Zoning) of Title 10 (Planning and Zoning of the BHMC is hereby amended to read as follows:
“10-3-901: USES AND BUILDINGS PERMITTED:

Except as otherwise provided in this article, no lot, premises, building or portion thereof in zone R-1.6X shall be erected, constructed, built, altered, enlarged, built upon, used, or occupied for any purpose except as a private one-family residence, family daycare home licensed pursuant to state law, small or large residential community residential care facility operating in compliance with section 10-3-2778 of this chapter, or transitional or supportive housing structured as a single-family residence.” Section 18. Section 10-3-904 (Businesses Prohibited) of Article 9 (One-Family Residential Zone (R-1.6X)) of Chapter 3 (Zoning) of Title 10 (Planning and Zoning of the BHMC is hereby amended to read as follows:
“10-3-904: BUSINESSES PROHIBITED:

Except as provided in article 43 of this chapter, no business shall be conducted or maintained in any building or upon any lot or premises, or upon any portion of either thereof, in zone R-1.6X. All property and buildings in zone R-1.6X hereby are limited to strictly private one-family residential uses except as otherwise provided in this article. A single-family transient use of a “single-family residence” or “accessory dwelling unit”, as defined in section 10-3-100 of this chapter is prohibited.” Section 19. Section 10-3-1001 (Uses and Buildings Permitted) of Article 10 (OneFamily Residential Zone (R-1.7X)) of Chapter 3 (Zoning) of Title 10 (Planning and Zoning) of the BHMC is hereby amended to read:
“10-3-1001: USES AND BUILDINGS PERMITTED:

Except as otherwise provided in this article, no lot, premises, building or portion thereof in zone R-1.7X shall be erected, constructed, built, altered, enlarged, built upon, used, or occupied for any purpose except as a private one-family residence, family daycare home licensed pursuant to state law, small or large residential community care facility operating in compliance with section 10-3-2778 of this chapter, or transitional or supportive housing structured as a single-family residence.”
Section 20. Section 10-3-1004 (Businesses Prohibited) of Article 10 (One-Family Residential Zone (R-1.7X)) of Chapter 3 (Zoning) of Title 10 (Planning and Zoning) of the BHMC is hereby amended to read:
“10-3-1004: BUSINESSES PROHIBITED:

Except as provided in article 43 of this chapter, no business shall be conducted or maintained in any building or upon any lot or premises, or upon any portion of either thereof, in zone R-1.7X. All property and buildings in zone R-1.7X hereby are limited to strictly private one-family residential uses except as otherwise provided in this article. A single-family transient use of a “single-family residence” or “accessory dwelling unit”, as defined in section 10-3-100 of this chapter is prohibited.” Section 21. Section 10-3-1101 (Uses and Buildings Permitted) of Article 11 (OneFamily Residential Zone (R-1.8X)) of Chapter 3 (Zoning) of Title 10 (Planning and Zoning) of the BHMC is hereby amended to read as follows:
“10-3-1101: USES AND BUILDINGS PERMITTED:

Except as otherwise provided in this article, no lot, premises, building or portion thereof in zone R-1.8X shall be erected, constructed, built, altered, enlarged, built upon, used, or occupied for any purpose except as a private one-family residence, family daycare home licensed pursuant to state law, small or large residential community care facility operating in compliance with section 10-3-2778 of this chapter, or transitional or supportive housing structured as a single-family residence.”
Section 22. Section 10-3-1104 (Businesses Prohibited) of Article 11 (One-Family Residential Zone (R-1.8X)) of Chapter 3 (Zoning) of Title 10 (Planning and Zoning) of the BHMC is hereby amended to read as follows:
“10-3-1104: BUSINESSES PROHIBITED:

Except as provided in article 43 of this chapter, no business shall be conducted or maintained in any building or upon any lot or premises, or upon any portion of either thereof, in zone R-1.8X. All property and buildings in zone R-1.8X hereby are limited to strictly private one-family residential uses except as otherwise provided in this article. A single-family transient use of a “single-family residence” or “accessory dwelling unit”, as defined in section 10-3-100 of this chapter is prohibited.” Section 23. Section 10-3-1209 (Businesses Prohibited; Exceptions) of Article 12 (Multiple Residential Zone (R-4)) of Chapter 3 (Zoning) of Title 10 (Planning and Zoning) of the BHMC is hereby amended to read as follows:
“10-3-1209: BUSINESSES PROHIBITED; EXCEPTIONS:

Except as provided in article 43 of this chapter, no business shall be conducted or maintained in any building or upon any lot or premises, or upon any portion of either thereof, in zone R-4, except the business of an apartment house. All property and buildings in zone R-4 hereby are limited to residential uses, except as otherwise provided in this article. A multi-family transient use as defined in section 10-3-100 of this chapter is prohibited.”
Section 24. Section 10-3-1242 (Uses Prohibited) of Article 12.3 (Multiple-Family Residential-Commercial Parking Zone (RMCP)) of Chapter 3 (Zoning) of Title 10 (Planning and Zoning) of the BHMC is hereby added to read as follows:
“10-3-1242: USES PROHIBITED:

A multi-family transient use as defined in section 10-3-100 of this chapter is prohibited.” Section 25. Section 10-3-1304 (Businesses Prohibited, Exceptions) of Article 13 (Residential Income and Multiple Dwelling Zone (R-4X1)) of Chapter 3 (Zoning) of Title 10 (Planning and Zoning) of the BHMC is hereby amended to read as follows:
“10-3-1304: BUSINESSES PROHIBITED; EXCEPTIONS:

Except as provided in article 43 of this chapter, no business shall be conducted or maintained in any building or upon any lot or premises, or upon any portion of either thereof, in zone R-4X1 except for the business of an apartment house. All property and buildings in zone R-4X1 hereby are limited to residential uses, except as otherwise provided in this article. A multi-family transient use as defined in section 10-3-100 of this chapter is prohibited.”
Section 26. Section 10-3-1503 (Businesses Prohibited; Exceptions) of Article 15 (Multiple Residential Zone (R-3)) of Chapter 3 (Zoning) of Title 10 (Planning and Zoning) of the BHMC is hereby amended to read as follows:
“10-3-1503: BUSINESSES PROHIBITED; EXCEPTIONS:

Except as provided in article 43 of this chapter, no business shall be conducted or maintained in any building or upon any lot or premises, or upon any portion of either thereof, in zone R-3, except the business of an apartment house. All property and buildings in zone R-3 hereby are limited to residential uses, except as otherwise provided in this article. A multi-family transient use as defined in section 10-3-100 of this chapter is prohibited.”
Section 27. Section 10-3-1543 (Businesses Prohibited; Exceptions) of Article 15.3 (Residential Parking Zone (R-4-P)) of Chapter 3 (Zoning) of Title 10 (Planning and Zoning) of the BHMC is hereby amended to read as follows:
“10-3-1543: BUSINESSES PROHIBITED; EXCEPTIONS:

Except as provided in article 43 of this chapter, no business shall be conducted or maintained in any building or upon any lot or premises, or upon any portion of either thereof, in zone R-4, except the business of an apartment house. All property and buildings in zone R-4 hereby are limited to residential uses, except as otherwise provided in this article. A multi-family transient use as defined in section 10-3-100 of this chapter is prohibited.”
Section 28. Section 10-3-1877 (Restricted Uses) of Article 18.7 (Mixed Use (MU) Overlay Zone) of Chapter 3 (Zoning) of Title 10 (Planning and Zoning) of the BHMC is hereby amended to read as follows:
“10-3-1877: RESTRICTED USES:

The following restrictions shall apply to mixed use development in the MU Overlay Zone:

A. No medical uses may be included in a mixed use development.

B. No entertainment uses including, but not limited to, cabarets, nightclubs, and adult entertainment businesses, may be included in a mixed use development.

C. Residential uses included as part of a mixed use development shall be permitted in all portions of the development regardless of the underlying zone, except that residential uses shall not be permitted within the first forty feet (40’) of depth from any street-facing property line of the first floor, except as otherwise allowed through the development plan review request.

D. Commercial uses included as part of a mixed use development shall only be permitted in those portions of the development in which the underlying zone is a commercial zone unless otherwise approved through a zone text amendment request.

Further, no commercial uses shall be allowed above the third story of a mixed use development.

E. A multi-family transient use as defined in section 10-3-100 of this chapter is prohibited, including in the residential portions of a mixed-use development project.

F. The planning commission shall have authority through conditions imposed on a development plan review permit to prohibit uses not specified herein, on a use by use basis, if it finds that the proposed uses will have a significant adverse impact on adjacent uses, or will not promote harmonious development of the area.”
Section 29. Section 10-3-302 (Permitted And Conditionally Permitted Uses For Residential Zoning Districts And Zoning District Overlays) of Article 3 (Establishment Of Zones; Permitted And Conditionally Permitted Uses) of Chapter 3 (Zoning) of Title 10 (Planning and Zoning) of the BHMC is hereby amended to read as follows with all other sections remaining unchanged:
“The following charts establish permitted uses and conditionally permitted uses in all residential zoning districts and zoning district overlays:

A. Single-Family Residential Zones: Except as otherwise provided in this article, no lot, premises, building or portion thereof in a single-family residential zone shall be erected, constructed, built, altered, enlarged, built upon, used, or occupied for any purpose except:

ALLOWED USES AND PERMIT REQUIREMENTS FOR SINGLE-FAMILY

RESIDENTIAL ZONING DISTRICTS AND ZONING DISTRICT OVERLAYS P = Permitted use UP = Use permit CUP = Conditional use permit R-1 R1.X
R1.5
R1.5X R1.5X
2 R1.6XR1.7
X
R1.8
X
Accessory dwelling units and junior
accessory dwelling units (subject to
article 50 of this chapter)

P P P P P P P P
Single-family dwelling P P P P P P P P
Transitional and supportive housing
1 :

Single-family structure P P P P P P P P
Family daycare homes, licensed
pursuant to state law

P P P P P P P P
Community residential care facility2
(state licensed):

Small (serving 6 or fewer) P P P P P P P P
Large (serving 7 or more) P3 P3 P3 P3 P3 P3 P3 P3
Educational institutions CU
P
CUP
4 CU
P
CUP4
Museums CU
P
CUP CU
P

Public utility uses (except as
provided in section 10-3-2754 of
this chapter)
CU
P
CUP CU
P

Religious institutions CU
P
CU
P

Public libraries CUP
Publicly owned playgrounds CUP
Home occupations (subject to
section 10-3- 4303 of this chapter)

P P P P P P P
Notes:

1. Transitional or supportive housing is permitted in residential zones subject to the same standards as similar residential uses; therefore, if such housing is configured as a single- family residence, it is regulated as such and is subject to all regulations applied to residences in the single-family residential zone where it is located.

2. For the purposes of this section, residential care facilities for the elderly, as defined in state law, shall be treated the same as community residential care facilities. Community residential care facilities shall comply with the requirements in section 10-3-2778 of this chapter.

3. A zoning clearance prior to the submittal of an application for building permit is required to verify the compliance of the community residential community care facility with the applicable requirements in section 10-3-2778 of this chapter.

4. Public educational institutions only.

B. Multiple-Family Residential Zones: Except as otherwise provided in this article, no lot, premises, building or portion thereof in a multiple-family residential zone shall be erected, constructed, built, altered, enlarged, built upon, used, or occupied for any purpose except:

ALLOWED USES AND PERMIT REQUIREMENTS FOR MULTIPLE-FAMILY

RESIDENTIAL ZONES AND ZONING DISTRICT OVERLAYS
P = Permitted use CUP = Conditional use permit
R-4 RMC
P
Specia
l
Needs
Housi
ng
Overla
y Zone
5 R4X
1 R4X
2 R
-
3 R4-P
Single-family dwelling P P P P P
Accessory dwelling units and junior
accessory dwelling units (subject to article
50 of this chapter)

P P P P P P
Multiple-family dwellings P P P P P P
Transitional and supportive housing:

Single-family structure P1 P1 P1 P1 P1
Multi-family structure P1 P1 P1 P1 P1
Family daycare homes, licensed pursuant
to state law

P P P P P P
Emergency shelters (subject to section 10-
3-1275 of this chapter)
P
Single room occupancy housing (SRO) CUP
Community residential care facilities2
(state licensed):

Small (6 or fewer) P P P P P P
Large (7 or more) P3 P3 P3 P3 P3 P3
Public library P P P
Childcare uses licensed pursuant to state
law
CU
P
CUP CU
P
CU
P
Educational institutions CU
P
CUP CU
P
CU
P
Multiple-family congregate housing for the
elderly or disabled pursuant to article 12.8
of this chapter
CUP
Multiple-family housing for the elderly or
disabled pursuant to article 12.5 of this
chapter
CU
P
CUP CU
P
CU
P
Museums CU
P
CUP CU
P
CU
P
Public utility uses4 CU
P
CUP CU
P
CU
P
Religious institutions CU
P
CUP CU
P
CU
P
Restaurants located in nonconforming
hotels (subject to section 10-3-1207 of this
chapter)
CU
P
CUP CU
P
CU
P
Convenience retail uses (subject to section
10-3-1233 of this chapter)
CUP
Public parking uses CUP
Ancillary retail uses6 P
Ancillary parking facilities6 P
Notes:

1. Transitional or supportive housing is permitted in residential zones subject to the same standards as similar residential uses; therefore, if such housing is configured as a multiple- family residence, it is regulated as such and is subject to all regulations applied to residences in the multiple-family residential zone where it is located.

2. For the purposes of this section, residential care facilities for the elderly, as defined in state law, shall be treated the same as community residential care facilities. Community residential care facilities shall comply with the requirements in section 10-3-2778 of this chapter.

3. A zoning clearance prior to the submittal of an application for building permit is required to verify the compliance of the community residential community care facility with the applicable requirements in section 10-3-2778 of this chapter.

4. Except as provided in section 10-3-2754 of this chapter.

5. Uses allowed in the special needs housing overlay zone are in addition to any use allowed in the underlying zoning district.

6. If approved by the planning commission as part of a planned development pursuant to article 18.4 of this chapter.
(Ord. 17-O-2724, eff. 2-10-2017; amd. Ord. 24-O-2892, eff. 4-18-2024; Ord. 24- O-2894, eff. 6-7-2024).”
Section 30. Subsection A of Section 10-3-303 (Permitted and Conditionally Permitted Uses for Nonresidential Zoning Districts and Zoning District Overlays) of Article 3 (Establishment of Zones; Permitted and Conditionally Permitted Uses) of Chapter 3 (Zoning) of Title 10 (Planning and Zoning) of the BHMC is hereby amended to read as follows, with all other sections to remain unchanged. Subsection A is currently in the process of being added and codified for another pending ordinance, but shall be amended subsequently by this ordinance as follows:
“A. Permitted Uses: Uses for all nonresidential zones and zoning district overlays are listed in the article addressing each specific zone or zoning district overlay. Unless otherwise specified by the zoning district overlay or specific project approval, multi- family transient uses shall be prohibited.”
Section 31. Section 10-3-4302 (Prohibited Home Occupation Activities) of Article 43 (Home Occupations) of Chapter 3 (Zoning) of Title 10 (Planning and Zoning) of the BHMC is hereby amended to read as follows:
“10-3-4302: PROHIBITED HOME OCCUPATION ACTIVITIES:

Notwithstanding any other provision to the contrary, no person shall engage in, permit, carry on, or conduct any of the following activities as a home occupation at any time in a residential zone:

A. Repair, servicing, alteration, assembly, upholstery, or construction of any automobile or other motor vehicle as defined in the California Vehicle Code; B. Any hotel use or any other transient lodging use for compensation or benefit of any kind, including, but not limited to, the operation of bed and breakfast inns, hostels, hotels, or any similar operation;
C. Restaurant, excluding a restaurant or caterer that delivers goods or services to a residential site, has a principal place of business outside of any residential zone, and conducts no administrative or processing function within a residential zone; D. Caterer, unless a permit shall have first been obtained from the director of building and safety approving any equipment to be installed and operated in connection with the catering business;
E. Rental of any residence, or any portion thereof, for events or activities such as parties, banquets, auctions, or similar activities, except in connection with nonprofit and/or charity functions, provided such nonprofit or charity functions are limited to one time per quarter not to exceed four (4) times in any twelve (12) month period; F. All activities regulated under title 4, chapter 2 of this code; G. Activities regulated under title 4, chapter 3 and chapter 4, article 5 of this code except as authorized by permit under title 4 of this code and consistent with the provisions of this article;
H. Any activity that would produce biohazardous or medical waste, as those terms are defined in the California Health and Safety Code, or involves the storage of materials in a manner that would result in a change in the occupancy classification of a residential structure under the city’s building code, mechanical code, fire code or plumbing code, or that would otherwise violate any building or fire code or other law; I. Conduct any use, other than a residential use, prohibited in the C-3 zone; J. Conduct any use conditionally permitted in the C-3 zone; K. Manufacturing, excluding activities or occupation such as: 1) artists, authors or composers; 2) dressmakers, seamstresses, or tailors; and 3) home crafts, including, without limitation, model making, rug weaving, quilting, needle work, jewelry making, woodworking, and other similar activities which are consistent with the primary use of the dwelling as a residence, provide that such activities are limited to the use of tools and equipment commonly available for personal residential use.

L. Single-family transient uses and multi-family transient uses, as defined in 10-3-100 of this chapter, including the use of any residence, accessory dwelling unit, accessory structure, or any other feature or portion of a residential property including but not limited to pools, game courts, and yards..”
Section 32. The Definition of “Responsible Person” in Section 1-3-302 (Definitions) of Article 3 (Administrative Penalties) of Chapter 3 (Code Violations) of Title 1 (General Provisions) of the BHMC is hereby amended to read as follows:

Any person or entity whom a citing official determines is responsible for causing, maintaining, permitting, or allowing a violation of this code. The term "responsible person" includes, but is not limited to: any person or entity who has an ownership or possessory interest in real or personal property; any agent thereof with actual or apparent authority, possession, or control of real or personal property; or any other person, who creates, maintains, permits, or allows a violation of this code. For clarity, in connection with any violation of the prohibition on single-family or multi-family transient uses pursuant to Chapter 3 of Title 10 of this code, a homeowners association, real estate agent, broker, hosting platform (residential, hotel, or otherwise), or listing agent, may all individually or together be determined to be responsible for causing, maintaining, permitting, or allowing a violation of this code.

Section 32.Section 33. Subsection A of Section 1-3-311 (Administrative Fine; Citations and Compliance Orders) of Article 3 (Administrative Penalties) of Chapter 3 (Code Violations) of Title 1 (General Provisions) of the BHMC is hereby amended to read as follows:

Commented [VD6]: Per earlier comments, it is important
to clarify the many ways that illegal short-term rentals are facilitated and to be able to hold all such participants liable for violating the City’s ordinance.
“A. For any violation of this code for which the violation would otherwise be an infraction, the administrative fine shall be the greater of that which is allowed by State law, or one hundred dollars ($100.00) for a first violation; two hundred dollars ($200.00) for a second violation of the same provision of this code within a twelve (12) month period; and five hundred dollars ($500.00) for each additional violation of the same provision of this code within a twelve (12) month period. For any violation of this code for which there is no specific administrative fine established in this code, the fine imposed shall be that set forth in a resolution adopted by the city council.

1. For any violation of the prohibition on single-family or multi-family transient uses pursuant to Chapter 3 of Title 10 of this code, the administrative fine shall be the maximum allowed under state law for the first, second, and each additional violation. Each and every day of operation of a single-family or multi-family transient use within a rolling 12-month period shall constitute a separate and additional violation.

2. In addition to operating a single-family or multi-family transient use, it shall also constitute a separate violation of this code, subject to the administrative fines as provided in subsection 1, to advertise or list a single-family or multi-family transient use by any means and on any medium, whether or not the actual location or address of the property is included in the advertisement or listing. Each and every day an advertisement or listing is visible and accessible by the public within a rolling 12-month period shall constitute a separate and additional violation.”

3. The City may issue and serve administrative subpoenas as necessary to obtain any information regarding home-sharing and vacation rental listings located in the City, Commented [VD7]: These amounts are lower than what
other cities impose. We understand that the City may have concerns about compliance with any State law maximums.

If that is the case, then the ordinance can provide that if State law allows for a greater amount, then that will be imposed. including, but not limited to, the names of the persons or entities responsible for each such listing, the address of each such listing, the length of stay for each such listing and the price paid for each stay. Any subpoena issued pursuant to this section shall not require the production of information sooner than thirty days from the date of service. A person that has been served with an administrative subpoena may seek judicial review during that thirty-day period.

Section 34. Section 1-3-325 (Failure to Comply with Administrative Order) of Article 3 (Administrative Penalties) of Chapter 3 (Code Violations) of Title 1 (General Provisions) of the BHMC is hereby amended to read as follows:

Failure to comply with an administrative order after it becomes final is a misdemeanor and subject to imprisonment in the County Jail for a period not exceeding six months. Filing a criminal misdemeanor action does not preclude the City from using any other legal remedy available to gain compliance with the administrative order.

Section 35. For any violation of the prohibition on single-family or multi-family transient uses pursuant to Chapter 3 of Title 10 of this code, any person convicted in a criminal case or found to be in violation in a civil or administrative case brought by a law enforcement agency shall be ordered to reimburse the City and other participating law enforcement agencies their full investigative costs, pay back all transient occupancy taxes, and remit all illegally obtained rental revenue to the City so that it may be used to support enforcement activities in connection with the prohibition on single-family or multi-family transient uses.

Commented [VD8]: This language mirrors subpoena
powers in the City of Santa Monica’s ordinance. As the City knows, it can be difficult to prove violations and this would be an important tool in the City’s tool kit.

Commented [VD9]: Many cities make this clear in their
ordinances and, again, the ability to seek imprisonment should be a tool in the City’s tool kit for the most egregious offenders.

Commented [VD10]: This mirrors language in the City of
Santa Monica’s ordinance and best ensures that the City is made whole for foregone transient occupancy taxes. It also ensures that a violator would not benefit from illegally obtained rental revenue that would make the violation worth the penalty. Such a cost-benefit analysis for a violator would be greatly diminished if an offender could be ordered to remit all illegally obtained rental revenue.

Section 36. Section 1-3-326 (Private Cause of Action) of Article 3 (Administrative Penalties) of Chapter 3 (Code Violations) of Title 1 (General Provisions) of the BHMC is added to read as follows:

For any violation of the prohibition on single-family or multi-family transient uses pursuant to Chapter 3 of Title 10 of this code, any interested person may seek an injunction or other relief to prevent or remedy violations. The prevailing party in such an action shall be entitled to damages and to recover reasonable costs and attorney’s fees.

Section 33.Section 37. Severability. If any section, subsection, subdivision, sentence, clause, phrase, or portion of this Ordinance or the application thereof to any person or place, is for any reason held to be invalid or unconstitutional by the final decision of any court of competent jurisdiction, the remainder of this Ordinance shall be and remain in full force and effect.

Section 34.Section 38. Publication. The City Clerk shall cause this Ordinance to be published at least once in a newspaper of general circulation published and circulated in the City within fifteen (15) days after its passage in accordance with Section 36933 of the Government Code, shall certify to the adoption of this Ordinance, and shall cause this Ordinance and her certification, together with proof of publication, to be entered in the Book of Ordinances of the Council of this City.

Commented [VD11]: A private cause of action is critical to allow the City to receive assistance from interested parties. The City already includes third-party beneficiary provisions in entitlements addressing short-term rental restrictions, so it makes sense to also provide a similar benefit in the ordinance.

← All documents from this meeting