Fairfax City Council
January 19, 2022

Regulation of Short-Term
Rentals in Fairfax
Discussion
Fairfax Town Council Meeting
January 19, 2022
Benefits to creating a program with regulations
• Minimize adverse impacts to housing supply and on
households of all income levels
• Minimize impact to households who use the income
from a short-term rental to remain in their home
• Create a new revenue source by collecting the
transient occupancy tax & STR registrations
Note: Current Zoning Code does not allow Short-Term
Rentals, but they exist in the Town - unregulated
What Do Other Marin Jurisdictions Do?
• San Rafael, Mill Valley, Novato, and the County of
Marin have STR programs and use Host Compliance
• San Anselmo allows with a business license, in legal
(permitted) structures (has no TOT)
• Ross does not regulate (has no TOT)
• Larkspur, Sausalito, Corte Madera and Tiburon prohibit STRs (CM to consider in 2022)
Program Aspects to Consider
• Property eligibility/ineligibility
• Occupancy limits
• Registration fees
• Costs and revenues
• Enforcement
Property Eligibility
• All or a portion of the property is offered by the permanent Resident of the unit
• The unit is the Primary Residence of the Permanent
Resident
• The Permanent Resident is a Person (not a business)
• The Permanent Resident has registered the unit and
secured a business license
• Off street parking requirements
Ineligible Properties
•Income-restricted affordable housing
• Student housing
• Commercial/industrial-zoned lots
•Non-residential areas within buildings (e.g., storage) • RVs, non-motorized travel trailers, vans, cars
• Teepees, yurts, tents, treehouses
• ADUs created after January 1, 2020
Program Requirements
• Occupancy Limits- the number of guests per unit
• Off Street Parking Requirement- e.g., one for every 4 guests • Hosted vs. Unhosted Stays- limit the number of unhosted stays • Registration – require property details, 24/7 local contact, proof of property inspection, interior signage, garbage/recycling/compost instructions, Noise Ordinance, Emergency info (evac., alerts) • Fee- initial registration fee and annual renewal fee
• TOT collection and Remittance
• Reporting- annual report to Planning Department
• Audit- e.g., San Rafael audits 5% of registrations for compliance Enforcement
• Violations & Appeals- use existing enforcement procedures Host Compliance offers 24/7 complaint hotline
• Revocation of Registration
TOT not collected/remitted, or the amount was inadequate 3 violations over 2-year period
Registration misrepresented/omitted information
Registration was transferred (or attempted) to another person Fiscal Impact
• Based on
oNumber of Existing STRs: 75
oAverage Nightly Rate: $150
oLow-end Occupancy: 30 days
• Annual TOT @10%: $33,750 (conservative est.)
• Annual Business License Fees: $7500
• Annual Registration Fees: $3750 - $7500
• Annual Cost of Host Compliance: $13,823
Next Steps
• Receive public feedback
• If Council would like to proceed with a STR Program
Direct Planning Commission to revise Zoning Code
Direct Town Attorney to draft ordinance establishing a program
• The imposition and collection of TOT may need to await results of a municipal election
Questions?