Short Term Rental Program Update Study Session
March 19, 2024
Background
September 3, 2019 – City Council Study Session on short-term rentals (STRs) Four coastal cities studied (Carlsbad, Carpinteria, Newport Beach, and Pismo Beach), as well as the range of approaches in regulating short-term rentals in the coastal zone Council expressed a desire for a high threshold type of regulation December 21, 2020 – City Council approved ordinance to permit “hosted STRs” citywide and “hosted and unhosted STRs” in Sunset Beach only
Background (cont.)
February 19, 2021 - Ordinance No. 4224 regulating STRs went into effect Sunset Beach operators given 6 months from permit fee adoption to apply for an STR permit and secure their “unhosted” rights.
One STR permit allowed per operator
Regulatory framework includes permit application requirements, STR operational requirements and enforcement provisions Summer 2021 – City Council Ad Hoc Committee created to gather additional community input on STRs.
December 2, 2021 – Ordinance No. 4238 approved, extending time to allow Sunset Beach owners to obtain an Unhosted STR Permit by March 1, 2022.
After March 1, 2022, all new STR Permits required to be hosted.
Roles & Responsibilities
Community Development
Permit Center reviews STR applications; issues STR Permits Code Enforcement inspects each property to ensure compliance with STR ordinance Finance
Issues Business License for Operators after an STR Permit is issued City Treasurer’s Office
Collects and reports Transient Occupancy Taxes (TOT) and Tourism Business Improvement District (TBID) Assessments gathered from Operators.
Hosted & Unhosted STR Permits (by calendar year)
174 Total
204 Total
Permitted Short-Term Rentals
Approx. 38% are located within the Coastal Zone
Approx. 58% are located within Coastal Zone and adjacent RMH-A (Old Town/Town Lot) areas
STR Revenue
UNHOSTED
Revenue
HOSTED
Revenue
Total Revenue
TBID Assessment 4%
(to VHB)
$253,313
$484,330
$737,644
TOT Tax 10% (to General Fund)
$649,526
$1,251,427
$1,900,953
Total STR Revenue
$902,839
$1,735,757
$2,638,596
TBID & TOT Received from STR Operators
April 2021 – December 2023
City STR TOT RevenueBy Calendar Year
Apr - Dec
Unpermitted STRs
City contracts with 3rd party vendor GovOS to obtain unpermitted STR data
STR Complaints Against Permit Holders
Complaint Categories
Citywide Complaints
HOSTED
Confirmed Violations/ Addresses*
UNHOSTED
Confirmed Violations/ Addresses*
Total
Confirmed Violations/ Addresses
% of Total Permits
No Owner On-Site
105
49 (36 Addresses)
N/A
49 (36 Addresses)
24%
Noise
92 30 (19 Addresses)
19 (3 Addresses)
49 (22 Addresses)
24%
Maintenance
28 14 (12 Addresses)
2 (2 Addresses)
16 (14 Addresses)
8%
Occupancy
16 4 (4 Addresses)
2 (2 Addresses)
6 (6 Addresses)
3%
Construction
29 6 (6 Addresses)
4 (3 Addresses)
10 (9 Addresses)
5%
Parking
31 11 (10 Addresses)
2 (2 Addresses)
13 (12 Addresses)
6%
Trash
13 4 (4 Addresses)
0 4 (4 Addresses)
2%
Other
46 8 (8 Addresses)
1 (1 Address)
9 (9 Addresses)
4%
STR Data 4/1/2021 - 12/31/2023
Complaint Detail
*Multiple Violations at Same Address
Total of $125,000 in Administrative Citations issued for violations Hosted: - 11 properties cited for No Owner On-Site - 2 properties cited for Not Responding Within 1 Hour - 2 Properties cited for Causing Disturbance Unhosted: No citations issued
27 Permits cancelled by owner
1 Permit for HOSTED was revoked by the City
STR violations can be reported 24/7 at 714-375-5155, option “3” Enforcement
STR permits are issued Citywide with higher concentration in Sunset Beach and near Downtown 204 STR permits (December ‘23)
Both hosted and unhosted STRs are generating revenue to City ($985,914 TOT collected in 2023) Unpermitted STRs have declined from 867 (in 2020) to 135 (in 2023) Complaints related to noise and no owner on site generate highest number of complaints Complaints have declined from 180 (in 2022) to 123 (in 2023) Summary