CITY OF COMMERCEAGENDA REPORTCITY OF COMMERCEAGENDA REPORT
CITY OF COMMERCE
AGENDA REPORT
CITY OF COMMERCE
AGENDA REPORT
TO: Honorable City Council
FROM: City Manager
SUBJECT: Consideration of an Extension of a Citywide Moratorium Prohibiting the Approval, Expansion, Intensification or Relocation of Any New or Existing Home-Sharing for a period of Ten (10) Months and Fifteen (15) Days, Pursuant to Government Code Section 65858 Meeting Date: September 23, 2025
RECOMMENDATION:
That the City Council approve an extension of Interim Urgency Ordinance No. 821, continuing a temporary moratorium on the approval, expansion, intensification, or relocation of any new or existing home-sharing or vacation rental operations within the City of Commerce for an additional ten (10) months and fifteen (15) days, in accordance with California Government Code Section 65858, to June 28, 2026.
BACKGROUND:
On August 13, 2025, the City Council adopted Interim Urgency Ordinance No. 821. The ordinance was adopted in response to serious concerns surrounding unregulated home-sharing and vacation rentals, including a complaint involving a property advertisement of over forty (40) bunk beds for rent on Airbnb. The City is already contending with the negative effects of these land uses. Allowing new or expanded home-sharing and vacation rentals before completing a thorough analysis would immediately threaten public health, safety, and welfare. By establishing a temporary moratorium, the City Council aimed to prevent further complications and provide time to develop comprehensive regulations that balance neighborhood integrity, business opportunity, and strategic economic growth. The initial 45-day moratorium is set to expire on September 27, 2025, unless extended by Council action.
ANALYSIS:
Pursuant to California Government Code §65858(d), the City has taken the following steps to address the underlying conditions:
Public Awareness and Outreach:
Information about the moratorium was shared through the City’s website and social media platforms to notify residents and businesses of the restrictions and reasons for the temporary ban.
Staff intends to conduct outreach to the public and to vacation rental owners and home-share owners.
Code Enforcement Activity:
The City has taken action against illegal vacation rentals, including:
a. Notices of Violation requiring inspections and compliance; b. Cease and Desist Letters issued by the City Attorney’s Office to unauthorized operators; and c. Regular monitoring of online platforms, including Airbnb, to identify new or recurring violations.
Evaluation of Existing Ordinances:
Staff is reviewing Commerce Municipal Code Chapter 5.63 – Home-Sharing Regulations, to identify weaknesses and opportunities for clarification and improvement.
General Plan Consistency Review:
The City is assessing how home-sharing and vacation rental uses affect the City’s General Plan goals, especially those related to residential stability, land use compatibility, and quality of life.
Research on Peer City Regulations:
Staff is analyzing short-term rental policies from neighboring and comparable cities to understand best practices and their success in minimizing community impacts.
Preparation of Revised Policies:
Once the review and research are complete, staff intends to prepare draft regulations for consideration by the Planning Commission and City Council that will provide a permanent regulatory framework for these uses.
To continue completion of a thorough policy and legal review, develop clear, enforceable, and effective regulations, and to allow for more meaningful public input, City staff is requesting a first extension to the moratorium allowing for an additional ten (10) months and fifteen (15) days.
As reflected in Interim Urgency Ordinance No. 821, it is urgent that the City adopt regulations to minimize the adverse impacts vacation rentals may have on surrounding residential properties and on the City’s limited law enforcement resources. Absent the adoption of an extension of the moratorium, the City will be limited in its ability to enforce the temporary prohibition of new short term rental listings.
To prevent a lapse in regulatory control and protect the public health, safety, peace, comfort and general welfare in conformance with the City’s General Plan, staff recommends extending the moratorium for ten (10) months and fifteen (15) days from the current expiration date of September 27, 2025, through June 28, 2026.
This report constitutes the written report required by California Government Code Section 65858(d).
FISCAL IMPACT:
Approval of the recommended action will have no adverse fiscal impact to the General Fund.
RELATIONSHIP TO STRATEGIC PLAN:
This matter is applicable to the following Strategic Focus Area and Guiding Principle: Community Quality of Life – Guiding Principle 4: Support and evaluate community services, programs and events that promote healthy and quality lifestyles for our residents. Enhance public safety and social services through innovative programs that meet the needs of the residential and business communities.
Prepared by: Anita Lakhani, Deputy City Attorney
Recommended by: Jessica Serrano, Director of Community Development Approved As To Form: Noel Tapia, City Attorney
Respectfully Submitted: Ernie Hernandez, City Manager
ATTACHMENT:
Interim Urgency Ordinance No. XXXX - Making Findings and Extending by Ten (10) Months and Fifteen (15) Days the Terms and Provisions of Interim Urgency Ordinance No. 821 Establishing a Citywide Moratorium Prohibiting the Approval, Expansion, Intensification or Relocation of Any New or Existing Home-Sharing Pursuant to Government Code Section 65858.