CITY OF FULLERTON
_________________________________________________________________________________________________________________________________________________________ Community and Economic Development Department
Item No. 3
February 28, 2024
6:30 p.m.
Public Hearing
TO: Chair Gambino and
Members of the Planning Commission/Appeals Board
APPLICATION
LRP-2024-0002
APPLICANT
City of Fullerton
LOCATION
Citywide
SUMMARY AND APPLICATIONS REQUESTED
Per the direction of the City Council, staff is requesting to amend language in Title 15 (Zoning Ordinance) of the Fullerton Municipal Code (FMC) Section15.55.020 6(d) pertaining to the Short- Term Rental (STR) land use appeals process.
CEQA DETERMINATION
Pursuant to Section 15061(b)(3) of the California Environmental Quality Act (CEQA), the proposed ordinance is exempt from environmental review as there is no possibility that it would have a significant effect on the environment.
AUTHORIZATION/GUIDELINES
The City Council directed staff to include an appeal process in the FMC for any action taken by the Planning Commission/Appeals Board regarding STRs.
FMC Sections 15.72.040 and 15.72.050 authorize the Planning Commission to hold a public hearing to consider an amendment to FMC Title 15 and make a recommendation to the City Council based on findings that the proposed amendment is consistent with the goals and objectives of the Zoning Ordinance and the General Plan.
RESOLUTION NO. 2024-05
A RESOLUTION OF THE PLANNING COMMISSION/APPEALS BOARD OF THE
CITY OF FULLERTON, CALIFORNIA, RECOMMENDING THAT THE CITY
COUNCIL APPROVE AN ORDINANCE TO AMEND THE FULLERTON
MUNICIPAL CODE TITLE 15 REGULATING SECTION 15.55.020.F.6.D SHORT-
TERM RENTALS TO MODIFY THE APPEAL PROCESS
LRP-2024-0002
CITY OF FULLERTON
RECITALS:
WHEREAS the City Council of the City of Fullerton held duly noticed public hearings, as required by law, on May 5, 2020, June 2, 2020, June 16, 2020, July 21, 2020, September 15, 2020, and October 20, 2020, for amendments to Title 15 of the Fullerton Munic ipal Code to develop regulations pertaining short-term rentals; and
WHEREAS on November 2, 2020, the City Council adopted Ordinance No. 3290 approving amendments to the Fullerton Municipal Code Titles 4 and 15 regulating short -term rental uses citywide which became effective on December 2, 2020; and
WHEREAS the proposed code amendments will address the current use of privately -owned residential dwellings as whole-home and short-term rentals by allowing appeals to be heard by the City Council.
RESOLUTION
NOW, THEREFORE, BE IT FOUND AND DETERMINED AND RESOLVED by the Planning Commission of the City of Fullerton as follows:
Finding: That the proposed Zoning Ordinance Amendment is consistent with the objectives of the Zoning Ordinance and General Plan.
Fact: The amendment is authorized by FMC Chapter 15.72. The City Council adopted a Resolution of Intention in 2015 to update the Municipal Code to regulate this use.
Fact: The amendment supports the following Fullerton Plan policies:
Goal 12, Policy 12.5 - Support programs and regulations pertaining to proactive code enforcement methods which reinforce the proper maintenance of properties, buildings and landscapes and adherence to applicable regulations.
Goal 1, Policy 1.8 – Support projects, programs, policies and regulations to evaluate and consider short- and long-term impacts of significant planning efforts or developments on nearby neighborhoods.
Finding: That the proposed Zoning Ordinance promotes the public health, safety and welfare of the community.
Resolution No. PC-2024-05
Fact: The proposed amendments will allow a viable alternative lodging option for visitors and guests to the Fullerton Community while protecting the properties and neighborhoods in which they are located through regulatory standards.
Fact: The proposed amendments include a process and procedure for the revocation of a Short-term Rental Permit in cases where the operator fails to adhere to the regulations adopted and is operating a short-term rental in a manner that does not promote the health, safety or general welfare of the community.
THEREFORE, the City Council of the City of Fullerton does hereby APPROVE LRP -2024- 0002 to amend Fullerton Municipal Code Title 15 as follows:
SECTION 1: Title 15 of Fullerton Municipal Code (FMC) is hereby amended as follows:
Section 15.55.020.F.6.d will be amended to read as follows:
Section 15.55.020. F.6.d will be amended to read as follows (strikeouts signify removed language and bold signifies new language):
d. If the Director determines that a public hearing is warranted in order gather supplemental evidence to determine whether an applicant will adequately mitigate potential adverse impac ts to the public health, safety, or welfare due to substantial concerns raised by neighbors, the Director shall notice a public hearing of the Planning Commission in accordance with FMC Chapter 15.76. The Planning Commission is authorized to deny, approve or conditionally approve the permit in accordance with the criteria set forth in this section. The Planning Commission's decision shall be final.
Decisions of the Planning Commission/Appeals Board may be appealed to the City Council according to the procedures for appeals set forth in FMC 15.76.170.
SECTION 2: CEQA
Pursuant to Section 15061(b)(3) of the California Environmental Quality Act (CEQA), the proposed ordinance is exempt from environmental review as there is no possibility that it would have a significant effect on the environment. The revised ordinance adds an appeal process whereby appeals are now final at the City Council level.
SECTION 3: SEVERABILITY
If any section, subsection, sentence, clause, or phrase of this ordinance is for any reason held to be invalid or unconstitutional by a decision of any court of any competent jurisdiction, such decision shall not affect the validity of the remaining portions of this ordinance. The City Council hereby declares that it would have passed this ordinance, and each and every section, subsection, sentence, clause and phrase thereof not declared invalid or unconstitutional without regard to whether any portion of the ordinance would be subsequently declared invalid or unconstitutional.
Resolution No. PC-2024-05
ADOPTED BY THE FULLERTON PLANNING COMMISSION /APPEALS BOARD ON FEBRUARY 28, 2024.
__________________________________
Peter Gambino, Chair
Section 15.55.020 (F) will be amended to read as follows:
15.55.020. Special uses permitted with provisions.
The following special uses are permitted subject to stated criteria.
F. Short-term Rentals.
1. Purpose
a. The purpose of this section is to address the use of privately-owned residential dwellings as short -term rentals in order to develop a regulatory framework, provide a mechanism for collection of transient occupancy taxes (TOT) and create an enforcement and revocation process.
2. Definitions
a. For purposes of this Section, the words and phrases below shall have the following meaning:
i. AUTHORIZED REPRESENTA-TIVE shall mean any person, firm or agency specifically authorized to represent and act on behalf of a property owner and to act as an operator, manager and contact person of a short-term rental. ii. DIRECTOR shall mean the Community and Economic Develop- ment Director.
iii. LOCAL CONTACT PERSON shall mean either the property owner or authorized representative who shall be identified on the short -term rental permit application and shall be available by phone at all times when the short-term rental unit is occupied to address nuisances and/or complaints.
iv. GOOD NEIGHBOR GUIDELINES shall mean a document provided by the City to each applicant that summarizes the general rules of conduct, consideration and respect, including all provisions of the Fullerton Municipal Code and other applicable laws, rules or regulations pertaining to the use and occupancy of short-term rentals. v. SHORT-TERM RENTAL PERMIT shall mean a permit issued by the Community and Economic Development Department that allows the use of a privately owned residential dwelling as a short -term rental unit pursuant to the provisions of this Chapter. Any applicant who has been issued a Short-term Rental Permit must also obtain a transient occupancy certificate and Business Registration required by Chapter 4 of the Fullerton Municipal Code.
vi. WHOLE-HOUSE RENTAL shall mean the use of a dwelling unit for the purpose of short-term rental where the property owner does not reside within the dwelling unit while it is utilized as a short-term rental.
3. Short-term Rental Permit and Renewal Required
a. The owner or the owner’s authorized representative is required to obtain a Short-term Rental Permit, Business Registration and have received instruction on completing the Tr ansient Occupancy Tax application prior to renting or advertising the availability of a short-term rental unit.
b. An issued Short-Term Rental Permit shall be valid for three years from the date issued unless revoked by the Community and Economic Development Director pursuant to this Chapter.
c. A fee shall be charged for the review, issuance and renewal of the Short -term Rental Permit as established by City Council, but not to exceed the reasonable cost of providing the service.
d. A minimum of 30 days prior to the date of expiration of the Short -term Rental Permit, the applicant shall apply for renewal on a form provided by the City. The owner or owner’s authorized agent shall update the information contained in the original permit application required per this Section, if any information has changed. The owner or owner’s authorized agent shall sign a statement affirming that there is either no change in the information contained on the original permit application and any subsequent renewal applications or that any information that has been updated is accurate and complete.
e. Upon renewal of a property’s Short -term Rental Permit, the owner or owner’s authorized agent shall be required to provide notice to adjacent properties which includes the Local Contact Person information. Adjacent properties shall include all properties which share a property line with the subject property and the property(ies) directly across a street or alley from the subject property.
f. An application for permit renewal received after the expiration of the current permit shall be treated as an application for a new permit as set forth in this Section. g. Any changes in the contact information for the Local Contact Pers on shall be provided to the adjacent properties and to the City within 72 hours of the change or before the property is next rented, whichever is sooner.
4. Maximum number of Whole-House Rentals permitted issued. To preserve single- family homes for use as long-term rentals (more than 30 days) or for home ownership, the City Council, by Resolution, shall establish a maximum number of Whole- House Short-term Rental Permits which may be issued in the City.
5. Short-term Rental Permit – Application
a. The owner or the owner’s authorized representative must submit the following information on a Short -term Rental Permit application form provided by the Community and Economic Development Department:
i. Contact information of the owner or authorized agent of the short -term rental unit for which the permit is to be issued.
ii. Contact information of a local contact person if not the owner or authorized agent.
iii. A site plan of the property and floor plan of the dwelling to be used for short- term rental which indicates the number and location of bedrooms in the short -term vacation rental unit.
iv. Indicate whether the short -term rental will be for whole- home rental, as that term is defined, or rental of bedrooms with the owner residing on the property. v. Payment of the application and processing fee established by City Council. vi. Evidence of a valid Business Registration issued by the City for the separate business of operating a short-term rental.
vii. Written approval from the Property Owner and Homeowner’s Association or Property Manager as applicable, authorizing the dwelling unit or portion of the dwelling unit to be used as a short-term rental.
viii. Such other information as the Community and Economic Development Director deems reasonably necessary to administer this Section. b. The Property Owner must complete the Transient Occupancy Tax application form in accordance with Title 4 of the Fullerton Municipal Code.
6. Procedure for review of application
a. A decision to approve or deny an application for a Short-term Rental Permit shall be made by the Director of Community and Economic Development or their designee. b. Upon receipt of a completed application, the Community and Economic Development Director or their designee will mail notice of an applicant’s request to properties which share a common property line with the subject pr operty. The Director will consider any written comments received within ten calendar days of the mail of the notice, in their decision on the application.
c. If the Director determines that an applicant has satisfied the application requirements, and that the short-term rental complies with the provisions of this Chapter, the Director shall provide written notice to the applicant that the Short-term Rental Permit is approved or conditionally approved, subject to compliance with the conditions identified by the Director in the notice.
d. If the Director determines that a public hearing is warranted in order gather supplemental evidence to determine whether an applicant will adequately mitigate potential adverse impacts to the public health, safety, or welfare due to substanti al concerns raised by neighbors, the Director shall notice a public hearing of the Planning Commission in accordance with FMC Chapter 15.76. The Planning Commission is authorized to deny, approve or conditionally approve the permit in accordance with the criteria set forth in this section. The Planning Commission's decision shall be final.
Decisions of the Planning Commission/Appeals Board may be appealed to the City Council according to the procedures for appeals set forth in FMC 15.76.170. e. The applicant may appeal any Short -term Rental Permit denied by the Community and Economic Development Director to the Planning Commission pursuant to the provisions of FMC 15.76.170.
f. Upon final approval of this ordinance by the City Council, the Community and Economic Director, or their designee, shall prepare written procedures to govern the initial application submittal period, process and prioritization of applications regarding the issuance of Short-Term Rental Permits.
7. Non-transferability. Short -term Rental Permits are not transferable to other properties or to future property owners or authorized agents of the subject property. If the residence is sold to a new owner, the permit is void and the new owner will need to apply for a new Short-term Rental Permit in their own name.
8. Separation Requirements for Whole-House Rentals
a. No more than one Short -term Rental Permit for Whole- House Rental shall be allowed within three-hundred feet of another Short -term Rental Permit for Whole-House Rental.
i. The 300-foot measurement shall be measured as a lineal distance from the nearest property line to property line for houses located on the same street. ii. For corner lots, the 300- foot measu rement shall be measured as a lineal distance on both streets that the parcel has frontage on. iii. For any other non- regular street configurations, the Community and Economic Development Director shall determine the 300-foot measurement based on the intent of this separation provision.
iv. The Community and Economic Development Director may consider a whole- house rental within 300- feet of another whole- house rental (Director Determination) based on a determination that the reduced separation between whole-house rentals does not have the potential to negatively impact the surrounding neighborhood. b. For Short-term Rental Permits that are not Whole- House Rental, there is no separation required.
c. Residential units within a multi-family residential development utilized for short- term rental shall not be subject to the whole- house rental separation requirements contained in this subsection.
9. Operational Requirements
a. The owner or owner's authorized agent shall ensure that the short -term rental is used in a manner that complies with all applicable laws, rules and regulations pertaining to the use and occupancy of the subject short-term rental unit. b. While a short-term rental is occupied, a Local Contact Person shall be available for the purpose of responding to complaints regarding the condition, operation or conduct of occupants of the short-term rental unit or their guests. c. The owner or the owner's authorized agent shall, upon notification by the City of Fullerton that any occupant or guest of the short-term rental unit has committed violations of any applicable law, rule or regulation pertaining to the use and occupancy of the short- term rental take appropriate action to immediately abate the disturbance as determined by the Community and Economic Development Director or applicable department. d. Failure to respond to notifications from the City of Fullerton regarding violations of the Municipal Code or any state law shall be grounds for revocation of the Short -term Rental Permit as well as any applicable legal or Code Enforcement actions pursuant to Title 6 of the Fullerton Municipal Code.
10. Good Neighbor Guidelines
a. Short term rental owners or authorized agents shall be responsible for informing their renters of the Good Neighbor Guidelines. These Guidelines shall include, at a minimum:
i. Renter and/or guests of the short -term rental unit shall maintain the property free of debris, on-site and in the immediate vicinity.
ii. Trash cans shall be maintained in a clean and sanitary manner and shall not be placed on the street prior to 24- hours before pick up day and shall be promptly removed from the street following service.
iii. Quiet times shall be from 10:00 p.m. to 7:00 a.m. pursuant to the noise standards referenced in FMC Chapter 15.90.
iv. The renters and/or guests of the short -term rental shall not create unreasonable noise or disturbances, engage in disorderly conduct or violate provisions of this Code or any State law pertaining to noise or disorderly conduct. v. Parking for renters, guests and/or property owners shall be provided on-site within a legal garage, carport or driveway to the extent possible.
11. Non-Residential Uses Not Permitted. Weddings, auctions, commercial filming, unless permitted pursuant to Chapter 3.80 of the FMC, commercial functions, or other similar events that are inconsistent with the residential character of the neighborhood as determined by the City Manager are prohibited within a short-term rental.
12. Advertising. There shall be no visible on- site advertising of a short -term rental on the subject property.
13. Short Term Rental Permit – Modification / Revocation a. The Director of Community and Economic Development is authorized to revoke or modify the conditions attached to the Short -term Rental Permit if at any time they determine that:
i. The applicant has provided materially false or misleading information in the application.
ii. The applicant is in violation of the Municipal Code or any state law. b. The applicant shall be provided with written notice of such modification or revocation. The applicant may file an appeal to Planning Commission with the City Clerk within (10) ten calendar days of the date of mailing of the notice of modification/revocation.
If no appeal is filed, the modification/revocation shall become effective upon expiration of the period for filing appeals.
14. Short Term Rental Permit – Enforcement
a. Any host who violates any provision of this Chapter, any person other than a hosting platform who facilitates or attempts to facilitate a violation of this Chapter, or a hosting platform that violates its obligations under this Section, shall be subject to administrative fines and administrative penalties pursuant to Chapters 6.01 of this Code. b. The City may issue and serve administrative subpoenas as necessary to obtain specific information regarding short-term rental listings located in the City, including, but not limited to, the names of the persons 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, to determine whether the short -term rental listings comply with this Chapter. Any subpoena issued pursuant to this section shall not require the production of information sooner than 30 days from the date of service. A person that has been served with an administrative subpoena may seek judicial review during that 30-day period. c. The remedies provided in this Section are not exclus ive, and nothing in this Section shall preclude the use or application of any other remedies, penalties or procedures established by law.
(Ord. 3290 § 1 (part), 2020; Ord. 3255 § 5, 2018; Ord. 3232 (part), 2016; Ord. 3222 § 7, 2015; Ord. 3189 § 4, 2013; Or d. 3144, (part), 2010; Ord. 2982, 2001; Ord. 3026, 2003; Ord. 3315 § 3 (part), 2022).