55575.18195\45513800.1
CITY COUNCIL STAFF REPORT
DATE: OCTOBER 14, 2026 BUSINESS & LEGISLATIVE
SUBJECT: INTRODUCTION AND FIRST READING OF AN ORDINANCE OF THE
CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA,
AMENDING CHAPTER 5.25 OF THE PALM SPRINGS MUNICIPAL
CODE; AND DISCUSSION AND DIRECTION RELATED TO PALM
SPRINGS MUNICIPAL CODE CHAPTER 5.75, EVENT HOUSES
FROM: Scott C. Stiles, City Manager
BY: Special Program Compliance
SUMMARY:
This agenda item provides the City Council with the opportunity to consider an Ordinance repealing Palm Springs Municipal Code (“PSMC”) Section 5.25.070(w), relating to the use of a Vacation Rental as an Event House and the current requirement that each Event House event be counted as a Contract toward the property's annual Contract limit under Section 5.25.070(b).
This agenda item also provides the City Council with an opportunity to discuss and provide direction regarding PSMC Chapter 5.75, which regulates Event Houses, including potential amendments to the City's existing Event House regulations.
RECOMMENDATION:
1) Waive the reading of text in its entirety, read by title only, and introduce for first reading Ordinance No._____, “AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, AMENDING CHAPTER 5.25 REGARDING EVENT HOUSE USE AT A VACATION RENTAL”; and
2) Provide direction regarding Event House regulations under Palm Springs Municipal Code 5.75.
BACKGROUND:
The City regulates Event Houses and Vacation Rentals through separate provisions of the Palm Springs Municipal Code. Although the two programs regulate distinct activities, some residential properties maintain both an Event House business license and a City Council Staff Report
October 14, 2026 -- Page 2
Ordinance Amending Chapter 5.75 of the PSMC – Event Houses 55575.18195\45513800.1
Vacation Rental Registration Certificate. As a result, the interaction between the two programs has been discussed by the City Council on several occasions.
For purposes of this agenda item, the background is separated into two related issues:
(1) the use of an Event House property as a Vacation Rental and the manner in which Event House events are counted under the Vacation Rental Ordinance annual contract cap; and (2) the City's Event House regulations generally.
Event House Use at a Vacation Rental
The interaction between Event Houses and Vacation Rentals has a separate legislative history.
At the October 17, 2022, City Council meeting, Council directed staff and the City Attorney to return with revisions to the Vacation Rental Ordinance addressing several policy matters, including the “interplay of Vacation Rentals and Event Houses.” During the discussion, concerns were raised regarding residential properties being operated both as Vacation Rentals and as Event Houses for compensation.
When the revised Vacation Rental Ordinance was presented for first reading on November 10, 2022, staff initially proposed prohibiting a Vacation Rental, including a Junior Vacation Rental, from also being used as an Event House. The staff report explained that the proposed restriction was intended to reduce impacts to neighboring properties from residences that could otherwise be used for both Vacation Rentals and special events.
During Council deliberations, Council elected not to prohibit the dual use of a property as both a Vacation Rental and an Event House. Instead, Council established a mechanism for limiting the combined use of the property through the Vacation Rental annual Contract cap.
As ultimately adopted, Ordinance No. 2075 amended the City’s Vacation Rental Municipal Code Chapter to provide that, when a Vacation Rental (including a Junior Vacation Rental) is also used as an Event House under Chapter 5.75 (the Event House Chapter), each Event House event is counted as a Contract for purposes of the property's annual Vacation Rental Contract limitation.
Specifically, Ordinance No. 2075 added the following language to the City’s Vacation Rental Municipal Code Chapter:
“(w) For any Vacation Rental, including any Junior Vacation Rental, that is also used as an Event House, as that term is used in Palm Springs Municipal Code Chapter 5.75, each event shall be counted as a Contract, for purposes of Section 5.25.070’s annual caps on the number of Contracts, for such property.”
City Council Staff Report
October 14, 2026 -- Page 3
Ordinance Amending Chapter 5.75 of the PSMC – Event Houses 55575.18195\45513800.1
The issue was revisited during the October 22, 2025, City Council meeting. Staff explained that counting Event House events as Vacation Rental Contracts originated from Council's 2022 direction and was not a recommendation of staff or the Vacation Rental working group. The rationale for the provision was to prevent a property from utilizing its full annual allowance of Vacation Rental Contracts while also conducting an unlimited number of Event House events.
During the 2025 discussion, staff and Council also considered the practical distinction between the two uses. Staff indicated that, from an administrative perspective, Event Houses could be regulated through the Event House Ordinance, while short-term overnight stays could continue to be regulated through the Vacation Rental Ordinance.
Council further recognized that an Event House event does not necessarily involve an overnight stay. Some events may consist solely of a one-day event, while others may occur in conjunction with an overnight Vacation Rental occupancy. In those instances where both activities occur, the property may be subject to requirements under both regulatory programs.
Council did not amend the Event House Contract-counting provision at their meeting of October 22, 2025. The existing requirement therefore remained in effect. However, Council directed that the issue return as part of the future discussion of the Event House Ordinance, including consideration of whether Event House events should continue to count toward a property's annual Vacation Rental Contract limitation.
Should the City Council wish to return to the regulatory status as it existed prior to November of 2022 with regard to Event Houses—namely, than an “event” at an Event House would not count as a Contract for purposes of the City’s annual cap on Contracts – the accompanying ordinance would accomplish that. For those Event Houses that are also Vacation Rentals, a short term (e.g., overnight) use of that property would still qualify as a Contract for purposes of the City’s Vacation Rental Ordinance, including its annual cap.
Event House Ordinance
Event Houses are regulated separately from Vacation Rentals under Chapter 5.75 of the Palm Springs Municipal Code. The Event House regulations establish requirements applicable to residential properties used for qualifying events, including the permitting and operational requirements associated with such events.
During the October 22, 2025, City Council meeting, Council discussed matters associated with Event Houses that extended beyond the Vacation Rental Ordinance. Among the issues raised were:
• Event House permitting timelines
City Council Staff Report
October 14, 2026 -- Page 4
Ordinance Amending Chapter 5.75 of the PSMC – Event Houses 55575.18195\45513800.1
• The overall permitting process
• The relationship between Event Houses and Vacation Rentals During that discussion, Council expressed interest in having the Event House Ordinance return to the City Council for a broader review and discussion. Council specifically discussed whether aspects of the Event House permitting process should be reconsidered and acknowledged that additional information from the Planning Department, which administers the Event House program, would be appropriate as part of that review.
Council Working Committee – Event House Administrative Review In addition to the prior City Council direction regarding Event Houses, a working committee consisting of Councilmember deHarte and Councilmember Bernstein requested that staff explore opportunities to modernize and streamline the City's administration of Event Houses and related special event activities.
The working committee identified the following items for further evaluation:
1. Centralized Event Approval Process. Explore establishing a centralized mechanism for event-related approvals to reduce departmental overlap, improve coordination, and provide a more efficient process for applicants and City staff.
Currently, different components of an event may require review or approval by separate City departments, including:
o Film and photography activities through the Parks and Recreation Department;
o Event House permits through the Planning Department; and o Valet services through the Office of Special Programs.
2. Temporary Outdoor Sound Permits. Consider establishing a process for City Manager approval of Temporary Outdoor Sound Permits under unique or limited special event circumstances.
3. Valet and Event Parking. Explore a coordinated, risk-based approach to valet and event parking through the City's Valet Permit process.
4. Neighbor Notification. Modernize the Event House neighbor-notification process and consider providing neighboring property owners and residents with the ability to opt-in to receive required notifications electronically by email or continue receiving notices in hard-copy form.
5. Annual Event House Property Profile. Explore establishing an annual Event House property profile containing information that generally remains consistent from event to event, including ownership information, business license status, approved capacity, site plans, parking and transportation arrangements, insurance, and local contact information. For individual events, the property manager could then submit event-specific information, including the event date, hours, anticipated attendance, and applicable vendor information, to request approval.
City Council Staff Report
October 14, 2026 -- Page 5
Ordinance Amending Chapter 5.75 of the PSMC – Event Houses 55575.18195\45513800.1
6. Standard Application Period and Fee. Consider reducing the standard Event House permit application filing deadline from 60 days to 30 days and evaluate a proposed permit fee of $798.
7. Expedited Review. Consider establishing a 15-day expedited review process for previously approved Event House properties when anticipated attendance is 50 persons or fewer, with consideration of a 50% fee premium for the expedited service.
8. Professionally Managed Event Houses and Nonprofit Events. Consider establishing a professionally managed Event House designation in connection with nonprofit events, including whether an alternative or streamlined process may be appropriate for qualifying properties and events.
STAFF ANALYSIS:
Vacation Rentals – Palm Springs Municipal Code Chapter 5.25 Vacation Rentals are separately regulated under Palm Springs Municipal Code Chapter
5.25. Unlike an Event House, which is associated with the staging of an event, a Vacation Rental is defined as a single-family dwelling, or portion thereof, used for dwelling, lodging, or sleeping purposes without the owner present for a period of 28 consecutive days or less. The Vacation Rental chapter confirms vacation rentals and homesharing are only allowed as ancillary and secondary uses of residential property in the city.
The Vacation Rental Ordinance establishes an annual registration and regulatory program governing short-term occupancies. Among other requirements, Chapter 5.25 regulates annual Contract limits, occupancy, parking, noise, local contact response, written rental contracts, Contract Summaries, and other operational requirements intended to minimize impacts on surrounding residential neighborhoods.
As of September 10, 2026, 2,738 properties were registered with the City under the Vacation Rental program, consisting of:
• 2,604 Vacation Rental Registration Certificates;
• 73 Homesharing Registration Certificates; and
• 60 Junior Vacation Rental Registration Certificates.
Chapter 5.25 also limits the number of Contracts permitted annually. The ordinance defines a Contract as an agreement or evidence of a tenancy that allows or provides for the vacation rental of property. The operational requirements establish the applicable annual Contract limitations and require a Contract Summary to be filed with the City prior to each applicable Vacation Rental occupancy.
Event Houses – Palm Springs Municipal Code Chapter 5.75 City Council Staff Report
October 14, 2026 -- Page 6
Ordinance Amending Chapter 5.75 of the PSMC – Event Houses 55575.18195\45513800.1
Event Houses are regulated under Palm Springs Municipal Code Chapter 5.75. The stated purpose of the chapter is to allow certain residential properties to be used for special events while reasonably regulating those activities to protect public health and safety, protect property, and maintain harmonious relationships between Event Houses and surrounding neighborhoods.
Chapter 5.75 defines an Event House as a residential dwelling, or portion of a dwelling or property, rented for occupancy for the purpose of staging an event. An event includes a gathering of persons, such as a reception or party. The provisions of Chapter 5.75 generally apply when the property owner receives remuneration for the event or use of the property.
Unlike a Vacation Rental Registration Certificate, an Event House permit is associated with an individual event. Prior to each use of a property as an Event House, an application is required to be submitted to the City. The current ordinance requires the application to be filed at least 60 days prior to the proposed event and requires information concerning the event, including its date, hours of operation, activities, facilities to be used, and local contact information. The ordinance also requires notification to property owners and occupants within 300 feet of the proposed Event House.
Chapter 5.75 also establishes operational requirements applicable to Event Houses, including requirements addressing on-site availability of the owner, agent, or local contact; noise and disturbances; sound; responsible persons; trash; occupancy; and compliance with other applicable provisions of the Municipal Code.
As of September 22, 2026, there were 14 properties with a valid, non-expired Event House business license, with one additional Event House business license having recently expired on August 31, 2026. Of these 15 properties, 13 are also registered with the City as Vacation Rentals.
Intersection of Event Houses and Vacation Rentals
Although Chapters 5.75 and 5.25 regulate different activities, the programs intersect when the same residential property is authorized to operate as both an Event House and a Vacation Rental.
The distinction between the activities is significant. An Event House event may consist of a one-day compensated event with no overnight occupancy, while a Vacation Rental Contract involves the use of a property for short-term dwelling, lodging, or sleeping purposes. Conversely, an Event House event may also occur in conjunction with a Vacation Rental stay, such as when persons attending an event also rent the property for overnight accommodations.
Under the existing Vacation Rental Ordinance, however, an Event House event conducted at a property that is also registered as a Vacation Rental counts toward the City Council Staff Report
October 14, 2026 -- Page 7
Ordinance Amending Chapter 5.75 of the PSMC – Event Houses 55575.18195\45513800.1
property's annual Vacation Rental Contract allocation. Therefore, an Event House event can consume one of the property's allowable Vacation Rental Contracts even when the event does not involve an overnight Vacation Rental occupancy.
The operational data demonstrates that the overlap between the two programs involves a relatively small number of properties when compared with the overall Vacation Rental program. Of the 15 properties holding a current or recently expired Event House business license, 13 are also registered Vacation Rentals. By comparison, the City had 2,738 registered properties within the Vacation Rental program as of September 10, 2026.
Event and Contract Activity
City records identify 40 Event House permits for calendar year 2026, of which 35 were issued for events occurring at properties that were also registered as Vacation Rentals.
Department of Special Program Compliance records additionally identify 162 Vacation Rental Contract Summaries submitted during 2026 among the properties associated with those 35 Event House permits. The two figures represent different types of activity: the Event House permits represent authorized events, while the Contract Summaries represent reported short-term rental occupancies, which also include Event House use.
A review of Event House activity for calendar years 2024 through 2026 also shows that the highest number of events conducted at a single property was:
• 14 events in 2024;
• 21 events in 2025; and
• 11 events in 2026, as of the date of this analysis.
In each year, the property with the highest number of Event House events was an existing Vacation Rental permittee eligible for the higher 36 annual Contract allocation applicable to existing permittees.
Based upon Contract Summaries submitted to the City by the affected properties, none of the properties with Event House activity reached its maximum annual Vacation Rental Contract allocation during the years reviewed.
Proposed Amendment to Section 5.25.070(w)
The proposed Ordinance amends PSMC Section 5.25.070 to repeal subdivision (w) in its entirety. Under the proposed amendment, Event House activities would continue to be regulated pursuant to Chapter 5.75. If the property is separately used for a qualifying Vacation Rental occupancy, that occupancy would remain subject to Chapter 5.25 and would count toward the property's applicable annual Contract limit.
City Council Staff Report
October 14, 2026 -- Page 8
Ordinance Amending Chapter 5.75 of the PSMC – Event Houses 55575.18195\45513800.1
Section 5.25.070 subdivision (w) of the Palm Springs Municipal Code is hereby repealed in its entirety.
“(w) For any vacation rental, including any junior vacation rental, that is also used as an event house, as that term is used in Palm Springs Municipal Code Chapter
5.75, each event shall be counted as a Contract, for purposes of Section 5.25.070's annual caps on the number of contracts, for such property.
Summary
The existing framework links two separate regulatory programs. Chapter 5.75 regulates the event activity itself, including the event application, neighborhood notification, operational conditions, responsible person, noise, and other event-specific requirements. Chapter 5.25 regulates the short-term rental occupancy of the property, including annual Contract limits, overnight and daytime occupancy, Contract Summaries, noise, parking, and other Vacation Rental operational requirements.
Maintaining the existing provision continues the approach established in 2022, under which Event House events and Vacation Rental occupancies share the property's annual Contract allocation. This provides an overall limitation on the combined frequency of the two uses at properties participating in both programs.
Alternatively, separating the programs would allow an Event House event to be regulated exclusively under Chapter 5.75 when no Vacation Rental occupancy occurs. If an Event House event also includes a qualifying short-term overnight occupancy, that occupancy would remain subject to Chapter 5.25 and would count toward the property's annual Vacation Rental Contract allocation.
ALIGNMENT WITH STRATEGIC PLANNING:
This item aligns with the following City Council Strategic Plan Broad Goal: Economic Development.
FISCAL IMPACT:
There is no fiscal impact with the proposed discussion items.
REVIEWED BY:
Department Director: Patrick Clifford (acting)
Assistant City Manager: Teresa Gallavan
City Manager: Scott Stiles
ATTACHMENTS:
A. Ordinance