From:Alan Stocker
To:City Council
Subject:Agenda Item 12.A on 2 May 2023
Date:Monday, May 1, 2023 10:31:25 PM
External Email
2 May 2023
Re: Agenda Item 12.A on the City Council Meeting Agenda for 2 May 2023
Dear Councilmembers:
My neighbors and I on North Silver Shoals Drive have been anticipating with great interest the City’s effort to strengthen its residential Short-Term Rental (STR) regulations, especially since we have experienced first-hand the negative impacts of an illegal STR that has been operating on our street for the past 18 months.
I have read the ordinance modifications proposed and recommended by the Task Force and City Staff. It contains some clear improvements to current regulations – most notably the 2-year ownership period prior to STF permit application, the requirement for annual renewal of permits, and enhanced good neighbor policies.
However, in my opinion there are several areas where the proposed regulations could be significantly strengthened in a way that preserves the ability of legitimate residents to earn some STR income from their homes while also protecting our residential neighborhoods from inappropriate uses.
Effective enforcement is key to ensuring the success of STR regulations. It is obvious from my own neighborhood’s experience that the City’s current enforcement mechanisms are not working as intended to prevent unpermitted STR operations and to ensure that STR permit holders are in fact the principal residents of their properties. It is not clear that the proposed ordinance will substantially improve the City’s ability to prevent or detect such intentional violations.
One idea that should be considered is to explicitly require travel websites such as Airbnb to monitor and remove unpermitted STR listings in the City. Threatening to hold such companies legally accountable for failures to do so would encourage such firms to police advertising and renting of illegal STRs themselves.
Santa Monica’s STR ordinance includes such a provision, which was upheld in U.S. Ninth Circuit Court of Appeals following a legal challenge from Airbnb and Homeaway.
The principal residency requirement is ripe for abuse by owners who are willing to lie and present false or misleading documentation on their STR applications. Given limited city enforcement resources, it can be difficult to catch these cheaters. The people who most often have firsthand and current knowledge of the actual situation are the nearby homeowners. As such, the new regulations should provide a formal opportunity (with adequate notification) for neighbors to present pertinent information to the City for consideration as part of the permit issuance and renewal process.
Finally, I believe a powerful way to preserve residential housing and limit the negative impacts of STRs to neighborhoods would be to allow only “homestay” rentals, whereby only a portion of the home can be leased when the resident owner is physically present on the premises. This policy has been in effect in Santa Monica since 2015, and has been deemed acceptable by the Coastal Commission since that city has numerous hotel rooms and other accommodations for visitors. Pismo Beach also has lots of hotel/motel rooms, trailer parks, and campsites within city limits, providing a plentiful supply of visitor accommodations without a need for STRs of entire vacation homes.
Pismo Beach is a highly attractive coastal destination. Poorly regulated STR activity poses an existential threat to City’s housing stock and the quality of life for its residents. I hope the Council will not rush to pass an ordinance that doesn’t effectively address this issue. I respectfully suggest that City Staff be directed to study and report on stronger STR regulatory measures, including the above suggestions, for your consideration.
Sincerely,
Alan Stocker
109 N. Silver Shoals Drive, Pismo Beach
[email protected]