GROVERBEACH.ORG
Megan Martin
Community Development Director
Short-Term Rental
Ordinance &
Local Coastal
Program Amendment
Short-term Rental Program Background
GROVERBEACH.ORG
• June 2019 - STR Ordinance (Ord. No. 19-04) adopted
• September 2021 – Ordinance revised
• Limit multi-family development to (1) STR permit
• Minimum stay requirement of 12 nights (non-owner occupied only) • Create and manage waitlist for non-owner-occupied permits • August 2023 – City Council presentation – Program & Status Report • Received additional Council policy direction
STR Program Regulations
GROVERBEACH.ORG
• Owner- and Non-owner-occupied Permit / Renewals
• Cap for non-owner-occupied rentals (40 Coastal / 60 inland) • Minimum night stay requirement (non-owner-occupied rentals) • Maximum stay requirement (owner-occupied rentals)
• Transient Occupancy Tax (TOT: 12%)
• Compliance and enforcement program
GROVERBEACH.ORG
STR Program Implementation
GROVERBEACH.ORG
• 112 STR permits
• 20 non-owner-occupied
• 60 on waitlist (10 coastal / 50 inland)
• TOT (12%)
• City collected $1.77 million since 2019
• Registration, compliance, tax remittance
through third-party vendor
• 75 enforcement cases since 2019
• Noise, parking, waste, unpermitted STRs
Council Directed Policy Changes
GROVERBEACH.ORG
• Local Contact Person
• Minimum stay requirement
• Non-compliant STRs
• STRs and Accessory Dwelling Units (ADUs)
• Waitlist procedures
STR Program Survey
GROVERBEACH.ORG
• 121 survey responses (February 6, 2024)
• Program satisfaction: 75% neutral to very satisfied
• Impact of STRs on neighborhoods: 86% neutral to very satisfied • Operator challenges with regulations: 2% reported challenges*** • Adjustments to current regulations needed: 44% no adjustments Local Coastal Amendment (LCP)
GROVERBEACH.ORG
• LCP Amendment required in compliance with the Coastal Act • Coastal Commission staff comments on Draft Ordinance:
• Maintain cap on non-owner-occupied permits in the Coastal Zone. • Prohibit STRs within ADUs consistent with State law.
Next Steps
GROVERBEACH.ORG
Planning Commission makes recommendation to City Council City Council Introduction (1st Reading) – February 13th • City Council Ordinance Adoption (2nd Reading) – February 26th • Staff forwards LCP Amendment to Coastal Commission
• Coastal Commission Action
• Ordinance effected
Staff Recommendation
GROVERBEACH.ORG
Recommend the City Council adopt Ordinance No. 24-02
amending the City’s Short-term Rental Ordinance
(Ordinance No. 19-07) and approve a Local Coastal
Program Amendment.
Short-term Rental Ordinance Amendment
GROVERBEACH.ORG
• Questions from Council
Additional and Supplemental Information
GROVERBEACH.ORG
Grover Beach Code Compliance Data
GROVERBEACH.ORG
FISCAL YEAR PERMITTED
STR CASES
UNPERMITTED
STR CASES
UNVERIFIED
2019 - 2020 2 14 -
2020 – 2021 0 6 -
2021 – 2022 3 7 -
2022 – 2023 1 13 3
2023 - January 2024 4 14 8
TOTALS 10 54 11
Regional Transient Tax Comparison
GROVERBEACH.ORG
CITY TOT % TBID % TMD %
(County)
TOTAL
Grover Beach 12% 0 1.5% 12%
Atascadero 10% 2% 1.5% 13.5%
Arroyo Grande 10% 2% 1.5% 13.5%
Morro Bay 10% 3% 1.5% 14.5%
Paso Robles 11% 2% 1.5% 14.5%
Pismo Beach 11% 2% 1.5% 14.5%
San Luis Obispo 10% 2% 1.5% 13.5%
Minimum Night Stay – Impact on TOT
GROVERBEACH.ORG
• Average TOT tax revenue - $41 / night
• Minimum stay 24 nights - $6,000 additional TOT
• Minimum stay 48 nights - $28,800 additional TOT