Short-Term Rental Administrative
Regulations
Agenda Item 12.B
By Matthew Downing, Community Development Director
David M. Fleishman, City Attorney
Meeting Date: November 7, 2023
Background
•May 2, 2023 – City Council consideration of modifications to Chapter 5.22
•City Council did not act to introduce proposed ordinance •Directed staff to return with additional regulations to address:
•A limit on the total number of STRs
•Notification of the surrounding properties at the time of issuance or renewal of STR
•A prohibition on STRs outside the Coastal Zone, while
“grandfathering” existing licenses
Proposed Changes
•Increased notification for STRs to 500’
•Property ownership for minimum of two consecutive
years prior to application
•Signed affidavit that the residence is primary residence •HOA authorization prior to City action
•Inspection of premises for first five (5) years of operation •Reduction of STRs to zero through attrition
•Changes in enforcement/penalties
Three -pronged enforcement
•Administrative citations, $1,000 fine amount for each violation; internal appeal procedures available •Infractions filed with court, with fines starting at $1,500 and increasing to $5,000 for repeat violations; hardship waiver available in limited instances •Misdemeanors filed with court, with potential penalties of $1,000 and six months imprisonment •This latter method would not be used except in the most extreme cases of willful noncompliance after the first two methods are used •Court could impose conditions of probation supervised by Court
Next Steps
•City Council introduce and adopt Ordinance
•Mail and email outreach to current STR operators
•Update website
•Update Good Neighbor Policy
Recommendation
Introduce an Ordinance modifying Chapter 5.22 of Title 5 of the Pismo Beach Municipal Code regarding
administrative regulations of short-term rentals.
Short-Term Rental Advisory Task Force
•Mayor Pro Tem Reiss & Council Member Guthrie
•Planning Commissioner Shauna Wills
•Shelly Higginbotham – STR Operator
•Jeff Reynolds – STR Operator
•Jed Bickel – Hotel Representative
•Heather Muran – STR Neighbor
•Mike Cotta – STR Neighbor
Key Aspects of STR Regulations
Ownership requirements License Expiration /
Probationary Inspections
Homeowner Association Authorization /
Good Neighbor Policy Regulations
Corporate Managed/Operated Fractional
Ownership
Ownership Requirements
•Dwelling unit must be operator’s primary residence and must be owned by the operator for a minimum of two
years
•For the purpose of these regulations, primary residency means living at the dwelling unit for more than 50% of the year •Primary residency is measured on a rolling 365-day basis
License Expiration / Probationary Inspections
•STR licenses proposed to expire on September 30 of each year
•Renewals timed with business license renewal
•Reinspection for first five (5) years of new licenses OR for additional year if operation becomes noncompliant with
regulations
Homeowner Association Authorization / Good
Neighbor Policy Regulations
•City does not enforce CC&Rs
•Homeowner association authorization required prior to
submittal of a STR application (if homeowner association is active)
•Since Good Neighbor Policies were not codified, they
represent guidelines rather than rules
•Overnight occupants may only park in designated on-site parking spaces and trash bins may be out for collection no sooner than 5:00 p.m. the day before collection and
brought in no later than 8:00 p.m. on collection day
Corporate Managed/Operated Fractional
Ownership
•Definition of “vacation rental” to include corporate
managed/operated fractional ownership units and added
to STR regulations
•Rentals under 30 days by corporate managed/operated
fractional ownership units would be considered vacation rentals
•Vacation rental use is not allowable in residential districts