A m e n d m e n t s t o E M C 9 . 3 8 ( S h o r t-t e r m R e n t a l s ) a n d E M C 3 . 1 2 ( Tr a n s i e n t O c c u p a n c y Ta x ) i n c o m p l i a n c e w i t h S h o r t-t e r m R e n t a l F a c i l i t a t o r A c t
Case No. PLCY-09252-2026
Charlotte Brenner, Project Manager
Item 12 D
September 23, 2026
P r o j e c t Te a m I n tr o d u cti o ns
Charlotte Brenner, Project Manager
Scott Drapkin, Director of Development Services
Patty Anders, Department Manager
Bryant Jemison, Code Enforcement Manager
Niki Chalfant, Assistant Director of Finance
2 B a c k g ro und – C h a p te r 9 . 3 8 S T R A m e n d men ts ❑ December 14, 2022: City Council adopted Ordinance No. 2022-15 for Chapter 9.38 amendments (non-Local Coastal Program [LCP]), and Ordinance No. 2022-16 for amendments to EMC Title 30 (LCP).
❑ February 5, 2026: California Coastal Commission (CCC) approved both ordinances with modification to reduce 3-night minimum stay to 2-nights for non-hosted shortterm rentals (STRs). ❑ April 22, 2026: City Council did not accept 2-night minimum and directed staff to submit a new ordinance to CCC with data supporting a 3-night minimum. 3 P r e v i o u sl y A d o p te d A m e n d m ents to E M C C h a p te r 9 . 3 8 4 Ordinance No. 2022-15
❑ Renamed EMC Chapter 9.38 from “Regulating Short-term Rentals” to “Regulating Short-term Rental Permits”.
❑ Minor text clean up of definitions of unit type to be consistent with Title 30. ❑ Amend permit renewal cycle from one-year to three-year to allow more time for compliance and enforcement.
❑ Specifies STR permit may be revoked if permit is inactive for 12-months. ❑ Requires STR permit to be posted and visible from right-of-way at all times.
S e n a te B i l l 3 4 6 (G o v e rnm ent C o d e § 5 0 9 90 -509 96) 5 ❑ SB 346 approved on October 13, 2025.
❑ Proposed new amendments to Chapters 3.12 and 9.38 to implement SB 346 (Short-Term Rental Facilitator Act).
❑ SB 346 authorizes local agencies to adopt an ordinance requiring STR facilitators (e.g. VRBO and Airbnb) to report to City in order to:
▪ Improve access to STR information,
▪ Help City identify unpermitted STRs;
▪ Strengthen Transient Occupancy Tax (TOT) collection by having STR facilitators report and pay TOT to City.
N e w A m e n d men ts to E M C C h a p te r 9 . 3 8
6 ❑ Specifies legal authority to implement SB 346.
❑ Incorporates new definitions and regulations consistent with SB 346 and EMC Chapter 3.12. ❑ Requires STR facilitators to collect and pay TOT directly to the City. ❑ Requires STR facilitator to provide quarterly rental reports to City including:
▪ Address of STR listing;
▪ URL of STR listings;
▪ Number of nights per reservation;
▪ Gross cost per reservation;
▪ Additional information deemed necessary by City.
❑ Establishes fines for STR facilitators that fail to report to City.
A m e n d men ts to E M C C h a p te r 3 . 1 2 (Tr a n si t O c c u p ancy Ta x ) 7 Incorporate “STR facilitators” to existing regulations and amend language to be consistent with Chapter 9.38, including but not limited to:
❑ Adds definitions to be consistent with SB 346.
❑ Requires STR operator disclose STR facilitators used. ❑ Establishes penalties and interest (Chapter 3.12), and fines (Chapter 1.08) for STR facilitators that fail to pay TOT.
❑ Revises records retention requirement from three years to at least five years. ❑ Allows outstanding taxes, penalties, and interest to be placed on County tax roll.
I n te n t o f O r d i n a n ce N o . 2 0 2 6 -15
8 ❑ Includes the previously adopted Title 9 amendments from 2022-15 (not part LCP) ❑ Anticipated increase in TOT revenue.
❑ Strengthen City’s enforcement of permitted and unpermitted STRs. ❑ Provides City with data on average minimum night stay that was not previously available. ❑ Minimize negative impacts of STRs to residential neighborhoods. ❑ Provide owners with an opportunity to generate income through legal rental of their home. ❑ Promoting compliance and support to legally operate STRs in community.
U n p e r mi tte d S T R E n fo r c eme nt U p d a te
9 ❑ Proactive enforcement resumed following a period of limited Code Enforcement staff. ❑ 285 unpermitted STRs identified during 2026 summer season. ❑ July 2026: 267 Notice of Violations (NOVs) issued to unpermitted STR operators:
▪ Cease unpermitted STR operations and advertising until permit is obtained; ▪ Submission of reservation records to determine outstanding TOT; and ▪ Outlines penalties for continued violations.
❑ August 2026: Unpermitted STR activity decreased by 35% (99 properties). ▪ 99 properties have either applied, obtained permit or ceased operations. ▪ TOT audits are ongoing to identify delinquent taxes.
❑ September 22, 2026: reduced illegal STRs by 43% (117 properties) S tr e n g then i n g C i ty ’s E n forc ement P r o g r am 10 ❑ Created a draft a process map to maintain effective and reliable enforcement for unpermitted STRs.
❑ Utilizes the “Six Sigma” system which relies on data driven methodology to improve quality and efficiency by reducing defects.
❑ Code Enforcement maintains a spreadsheet is used to track STR violations and progress that is updated weekly.
❑ City’s STR public dashboard is updated monthly which reports the number of unpermitted STR.
N e x t S te p s
❖ Development Services
Department increasing staff
resources for STR enforcement.
❖ Finance Department is pursuing
consultant to support STR
revenue audits and TOT.
11 S ta ff R e c o m mend ati o n
Staff recommends the City Council adopt Ordinance No. 2026-15 titled “An Ordinance of the City Council of the City Of Encinitas Adopting Amendments to Chapter 9.38 (Regulating Short-term Rentals) of Title 9 (Public Safety, Peace, And Welfare) and Amendments to Chapter 3.12 (Transient Occupancy Tax) of Title 3 (Taxes) of the Encinitas Municipal Code”
12 A m e n d m e n t s t o E M C 9 . 3 8 ( S h o r t-t e r m R e n t a l s ) a n d E M C 3 . 1 2 ( Tr a n s i e n t O c c u p a n c y Ta x ) i n c o m p l i a n c e w i t h S h o r t-t e r m R e n t a l F a c i l i t a t o r A c t
Case No. PLCY-09252-2026
Charlotte Brenner, Project Manager
Item 12 D
September 23, 2026