Direction on Short-Term Rental
Ordinance Update
Agenda Item 12.E
Matthew Downing, Community Development Director
Meeting Date: July 18, 2023
Background
•City’s regulations of STRs since 2018
•Currently 28 licensed STRs
•Moratorium on new STR licenses until June 20, 2024
•May 2, 2023 - City Council consideration of Ordinance
and direction
•Numerical cap/proximity-based limitations
•Adjacent property notification
•Prohibition outside of Coastal Zone
•Coordination with Airbnb
•Additional direction by the City Council
Numerical Cap/Proximity-Based Limitation
•Council discussion on numerical cap, cap by street, cap by neighborhood, or proximity-based
•STRs throughout the city, concentrated in Shell Beach
•Staff recommends numerical cap or proximity-based
•Street may be arbitrary, definition of “neighborhood” varies •Numerical Cap - Approx. 5,800 housing units – 60 licenses (1% cap) or 30 licenses (0.5% cap)
•Proximity-Based – 300’ to 500’
•Any cap would require qualitative data for CCC
certification
Adjacent Property Notification
•CCC more supportive of ministerial rather than
discretionary regulations
•PBMC 17.124.090.C. outlines notice procedures for non- appealable development when no public hearing
required – adapt regulations into STR regulations
•Notice mailed to property owners and occupants within 300’ 10 days prior to approval
•CCC certification likely based on ensuring ministerial requirements, not precluding STRs
Prohibition Outside of Coastal Zone
•CCC previously not supportive of STR prohibitions
•Council interest in prohibition outside Coastal Zone,
grandfather existing
•Proposed annual renewal would make it very challenging to grandfather
•Potential public confusion over different regulations – prohibit citywide
•2,100 hotel rooms, 600 RV spaces, 100 camping spaces
•Not guaranteed to be certified by CCC
Coordination with Airbnb
•Staff previously worked on agreement with Airbnb
•Anonymized data, TOT quarterly, multiple online platforms, staff time
•Recent discussions with Airbnb
•Notice and Takedown process – staff to flag noncompliant listings
•Host Communications – City rules communicated to operators by Airbnb
•License Number Requirement
•Staff will continue to work with Airbnb on available
solutions
Recommendation
•Provide direction to staff regarding desired modifications to the City’s short-term rental regulations.
Northern Pismo Beach
Shell Beach Village
Motel District
Downtown
Pismo Creek
Southern Pismo Beach
300’ vs. 500’