Attachment A
Ordinance
ORDINANCE NO. 2026 -__
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF NEWPORT BEACH, CALIFORNIA, AMENDING
CHAPTER 5.95 (SHORT TERM LODING PERMIT) OF THE
NEWPORT BEACH MUNICIPAL CODE
WHEREAS, Section 200 of the City Charter, of the City of Newport Beach (“City”), vests the City Council with the authority to make and enforce all laws, rules and regulations with respect to municipal affairs subject only to the restrictions and limitations contained in the City Charter and the State Constitution, and the power to exercise, or act pursuant to any and all rights, powers, and privileges or procedures granted or prescribed by any law of the State of California; WHEREAS, Resolution No. 202 3-83 authorizing submittal to the California Coastal Commission (“CCC”) of an amendment to Title 21 (Local Coastal Program Implementation Plan) (“LCP Amendment”) of the Newport Beach Municipal Code (“NBMC”) related to short term lodging was adopted on December 12, 2023; WHEREAS, the City Council contemporaneously adopted Ordinance No. 2023- 23, amending Chapter 5.95 (Short Term Lodging Permit) and Title 20 (Planning and Zoning) of the NBMC related to short term lodging; however, Ordinance No. 2023- 23 did not take effect until the CCC approval of the LCP Amendment; WHEREAS, the CCC denied the LCP Amendment as submitted at its May 7, 2025, hearing and approved it with suggested modifications (LCP -5-NPB-24-0004-1 Part A) that required revisions to Chapter 5.95 (Short Term Lodging Permit) and Title s 20 (Planning and Zoning) and 21 (Loc al Coastal Program Implementation Plan) for consistency;
WHEREAS, the City Council adopted Ordinance Nos. 2025-15 and 2025- 16 on August 26, 2025, to effectuate the CCC suggested modifications; WHEREAS, the CCC Executive Director finally certified the LCP Amendment with the modifications on October 9, 2025, whereby Ordinance Nos. 2025-15 and 2025- 16 took effect;
WHEREAS, during the LCP Amendment process, an intervening amendment to Chapter 5.95 was not captured; and
WHEREAS, the City Council held a duly not iced public meeting on August 25, 2026, in the Council Chambers located at 100 Civic Center Drive, Newport Beach, California. A notice of time, place and purpose of the public hearing was given in accordance with California Government Code Section 54950 et seq. (“ Ralph M. Brown Ordinance No. 2026-__
Act”). Evidence, both written and oral, was presented to, and considered by, the City Council at this public hearing.
NOW THEREFORE, the City Council of the City of Newport Beach ordains as follows:
Section 1: The City Council hereby approves the amendment to Chapter 5.95 (Short Ter m Lodging Permit) of the Newport Beach Municipal Code as set forth in Exhibit “A,” which is attached hereto and incorporated herein by reference.
Section 2: The recitals provided in this ordinance are true and correct and are incorporated into the operative portion of this ordinance.
Section 3: If any section, subsection, sentence, clause or phrase of this ordinance is, for any reason, held to be invalid or unconstitutional such decision shall not affect the validity or constitutionality of the remaining portions of this ordinance. The City Council hereby declares that it would have passed this o rdinance, and each section, subsection, clause or phrase hereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases may be declared invalid or unconstitutional.
Section 4: The City Council of the City of Newport Beach finds the introduction and adoption of this ordinance is exempt from environmental review under the California Environmental Quality Act (“CEQA ”) pursuant to Section 15060(c)(2) of the CEQA Guidelines, California Code of Regulations, Title 14, Division 6, Chapter 3, which states that a n activity is not subject to CEQA if the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment. The code amendment would simply limit the number of times that a permit may be reinstated, therefore, will not result in a direct or indirect physical change to the environment.
Section 5: Except as expressly modified in this ordinance, all other sections, subsections, terms, clauses and phrases set forth in the Newport Beach Municipal Code shall remain unchanged and shall be in full force and effect.
Ordinance No. 2026-__
Section 6: The Mayor shall sign and the City Clerk shall attest to the passage of this ordinance. The City Clerk shall cause the ordinance, or a summary thereof, to be published pursuant to City Charter Section 414. The ordinance shall be effective thirty (30) days after its adoption.
This ordinance was introduced at a regular meeting of the City Council of the City of Newport Beach held on the 25th day of August 2026, and adopted on the 8th day of September 2026, by the following vote, to-wit:
AYES: -----------------------
NAYS: -----------------------
ABSENT: ----------------------
Lauren Kleiman, Mayor
ATTEST:
Lena Shumway, City Clerk
APPROVED AS TO FORM:
CITY ATTORNEY'S OFFICE
Exhibit A- Code Amendment
EXHIBIT "A"
CODE AMENDMENT
Section 5.95.035 (Denial of Permit) shall be amended to read as follows:
If permits are available for issuance, no timely application filed by an owner for an annual permit, renewal of a permit, reinstatement of a permit or transfer of a permit for a unit eligible to be used as a short term lodging unit, as provided f or in Section 5.95.015 and this Code, shall be denied unless: the owner does not have a current valid business license; the owner has failed to pay transient occupancy tax, the visitor service fee, a penalty, a fine or inspection cost, due and owing to the City; the nuisance response plan is deemed inadequate by the Administrative Services Director; or the short term lodging permit for the same unit and issued to the same owner has been revoked, or the short term lodging permit is not eligible for reinstatement.
Subsection ( G) of Section 5.95.042 (Maximum Number of Permits) shall be amended to read as follows:
G. If the City has issued the maximum number of permits available, the City shall maintain a separate waiting list for both the residential districts and the multi -use areas.
An application for placement on the waiting list shall be submitted to the Administrative Services Director, on a form approved by the Administrative Services Director, and shall be accompanied by a fee established by resolution of the City Council. In the event a short term lodging permit becomes available, the Administrative Services Director shall notify the person or persons next in order on the waiting list. The notice shall specify that applications will be accepted for ten (10) calendar days after the date of the notice, and that failure to apply within the ten (10) calendar day period shall result in removal of the person or persons receiving notice from the waiting list. The Administrative Services Director may extend the deadline to apply if the Administrative Services Director determines that good cause has been shown to extend the deadline. Notice shall be deemed given when deposited in the United States mail, with the first class postage prepaid, and addressed as specified by the person or persons on the waiting list. The City shall not be liable for a failure to notify any person or persons on the waiting list since placement on the list does not create any property right in any person or persons on the list nor any contractual obligation on the part of the City.
Subsection (B) of Section 5.95.080 (License and Permit Closure) shall be amended to read as follows:
B. The Administrative Services Director shall close any permit that has no short term lodging activity for a period of two consecutive annual reporting periods as evidenced by the owner and/or agent remitting zero dollars ($0.00) on the required transient occupancy tax and visitor service fee forms or the owner/agent failing to return these forms. After any permit closure pursuant to this subsection, the owner may reapply one (1) time for reinstatement of the short term lodging permit which shall be processed in accordance with Section 5.95.030. Any subsequent closure of the short term lodging permit pursuant to this subsection shall not be eligible for reinstatement.