Agenda Item No: 2.b
PLACENTIA CITY COUNCIL AGENDA REPORT
Meeting Date: October 7, 2025
Submitted by: Joe Lambert
From: Development Services
Subject:
Public Hearing to consider Ordinance No. O-2025-10, an Ordinance of the City of Placentia, California, Extending an Urgency Ordinance Establishing a Moratorium on Short-Term Rental Permits in Placentia, California.
Financial Impact:
Fiscal Impact:
Potential for approximately $235,000 in revenue annually from Transient Occupancy Tax, based on FY 24-25 actuals, assuming current Short-Term Rental permits remain active.
Summary:
On September 2, 2025, City Council conducted a Study Session to discuss the topic of Short- Term Rentals (STRs) citywide. STRs have been permitted in residential zones citywide since August 2019. Following the Study Session, City Council adopted Urgency Ordinance No. O- 2025-07, placing a moratorium on new Short Term Residential Rental permits for up to 45 days. This moratorium was intended to allow Staff time to analyze and propose additional STR regulations for City Council consideration.
Since Urgency Ordinance No. O-2025-07 is set to expire on October 16, 2025, Ordinance No.
O-2025-10 has been prepared for City Council consideration. This ordinance would extend the STR moratorium until September 1, 2026, or until the City Council enacts amendments to its zoning ordinances or other applicable Municipal Code regulations, whichever is earlier.
Recommendation:
Recommended Action: It is recommended that the City Council:
1. Open the Public Hearing concerning Ordinance No. O-2025-10; and
2. Receive the Staff report and consider all public testimony; and
3. Close the Public Hearing; and
4. Find that Ordinance No.O-2025-10 is not subject to CEQA pursuant to Sections 15060(c) (2), 15060(c)(3) and/or 15061(b)(3) of the State CEQA Guidelines; and
5. Adopt Ordinance No. O-2025-10, an Ordinance of the City of Placentia, California, Extending an Urgency Ordinance Establishing a Moratorium on Short-Term Rental Permits in Placentia, California; and
6. Provide direction to Staff, as appropriate, regarding proposed changes to local regulations related to Short Term Residential Rentals, if any. 1 Strategic Plan Statement:
This item is consistent with the City Council approved 5-Year Strategic Goal to:
Promote Community and Economic Development (Goal 3), as this item has directly resulted in generating approximately $235,000 in Transient Occupancy Tax (TOT) in FY24-25, additive to revenues collected for four additional Fiscal Years beginning in FY20-21. Furthermore, Objective 3.3 of Goal 3 is to continue to recruit and attract retail, hotel, and other commercial businesses that complement adjacent City assets and attractions. Although not necessarily commercial in nature, Short Term Rentals are similar to hotels.
Discussion:
On September 2, 2025, City Council conducted a Study Session to discuss the topic of Short- Term Rentals (STRs) citywide and City Council received an optional Staff recommendation to adopt an Urgency Ordinance placing a moratorium on new Short Term Residential Rental permits. Subsequent to conducting the Study Session, City Council adopted Urgency Ordinance No. O-2025-07, placing a moratorium on new Short Term Rental (residential) permits for up to 45 days from September 2, 2025, as provided by law. This was done to allow Staff time to analyze and propose additional STR regulations for City Council consideration.
Unless extended, Urgency Ordinance No. O-2025-07 will expire on October 16, 2025.
Pursuant to State and local regulations, the moratorium enacted by Urgency Ordinance can be extended for up to a total of one year subsequent to holding a Public Hearing on the matter. Therefore, Staff scheduled a noticed Public Hearing on the matter and prepared Ordinance No. O-2025-10 for City Council consideration. If adopted, Ordinance No. O-2025- 10 would extend the STR moratorium to September 1, 2026, or until the City Council enacts an amendment to its zoning ordinances or other applicable Municipal Code regulations, whichever occurs earlier.
Staff continues to evaluate potential enhancements to existing STR regulations including the following:
500-foot radius in lieu of 300-foot radius locational requirement for new STRs Cap on total STRs, for instance, 0.5% of 16,979 Placentia housing units = 85 total STRs (Seal Beach uses 1% of total units for example)
Require site plan, floor plan, and inspection, either initially or annually Limit 2 STR permits per applicant
Annual renewals of the permits
Notice of permit issuance to surrounding properties
Additional controls regarding parking, parties, and number of occupants (current regulations already address these topics)
In addition to conducting the Public Hearing, Staff recommends that City Council provide direction to Staff as appropriate regarding proposed changes to local regulations related to Short Term Residential Rentals, if any. Future Study Session(s) and/or Public Hearings will be conducted for City Council to consider a Municipal Code Amendment on this topic.
Fiscal Impact Summary:
Potential for approximately $235,000 in revenue annually from Transient Occupancy Tax, based on FY 24-25 actuals, assuming current Short-Term Rental permits remain active.
Attachments
2 1. Ordinance No. O-2025-10
3 Ordinance No. O-2025-10
ORDINANCE NO. O-2025-10
AN ORDINANCE OF THE CITY OF PLACENTIA,
CALIFORNIA, EXTENDING AN URGENCY ORDINANCE
ESTABLISHING A MORATORIUM ON SHORT-TERM
RENTAL PERMITS IN PLACENTIA, CALIFORNIA
City Attorney’s Summary
This Ordinance is adopted pursuant to California Government Code section 65858(a) and extends the previous forty-five (45) day moratorium on the issuance of new permits for short-term residential rentals within the City of Placentia while the City considers zoning and other amendments regarding the regulation and placement of short-term rentals. The City Council finds that a moratorium is necessary to protect the public health, safety, and welfare.
A. Recitals
WHEREAS, on September 2, 2025, the City Council adopted interim ordinance No. O-2025-07 (“Interim Ordinance”) establishing a 45-day moratorium on owners and/or operators of new short-term rental properties located in the City, such as Airbnb’s, Vrbo’s and other such short-term rental platforms; and
WHEREAS, the Placentia Municipal Code (PMC) Title 6 defines a short-term residential rental as the rental of a residential dwelling unit by the owner thereof to another party for a continuous period of 29 days or less, in exchange for any form of monetary or non-monetary compensation; and
WHEREAS, Chapter 23.71 of the PMC sets forth the zones in which short -term rentals are permitted; and
WHEREAS, short-term rentals have caused problems and nuisances, including undue noise, traffic, parking issues, and concerns for the City maintaining its continued residential character; and
WHEREAS, the City’s primary objective is the protection of public health, safety, and welfare; and
WHEREAS, on September 2, 2025, City Council held a duly noticed study session regarding short-term residential rentals, and the City is currently considering and studying amendments to the City’s zoning regulations relating to short-term residential rentals; and WHEREAS, California Government Code section 65858 authorizes the City Council to adopt, by a four-fifths vote, an extension to the interim ordinance for up to ten (10) months and fifteen (15) days;
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B. Ordinance
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PLACENTIA DOES HEREBY ORDAIN AS FOLLOWS:
SECTION 1. The Recitals set forth above are hereby adopted as the findings of the City Council in connection with the adoption of this ordinance and that based on the above recitals, there is an immediate threat to the public health, safety and welfare. The adoption of this ordinance is necessary for the immediate protection of the public health, safety and welfare.
SECTION 2. The purpose of this ordinance is to establish a moratorium on the approval or issuance of any new short-term rental permits within the City of Placentia for the immediate preservation of the public health, safety and welfare.
SECTION 3. Based on the findings set forth in the Recitals and incorporated herein in Section 1, if the City were to continue to issue permits for short-term residential rental properties, there would be an immediate threat to the public health, safety and welfare and to the residential character and uses within the City, including traffic, noise and parking, and other nuisances. Therefore, an extension of the moratorium is necessary based on the following findings:
A. The City of Placentia is comprised of established residential areas, including single family homes, town homes, and apartments.
B. The residential neighborhoods need to be protected and preserved from the adverse impacts of additional short-term rental properties.
C. The continued issuance of short-term rental permits would increase nuisances across the City, including greater noise, traffic, less parking, and other disruptions.
D. The General Plan Objective LU-1 is to provide a well-balanced land use pattern that accommodates existing and future needs for housing, commercial, industrial, and open space/recreation uses, while providing adequate community services to residents.
E. The General Plan Housing Element Goal HE-1 is to develop and maintain an adequate supply of housing that varies sufficiently in cost, size, type, and tenure to meet the economic and social needs of existing and future residents within the constraints of available land.
F. The use of residential housing units as short-term rentals reduces the availability of units for long-term occupancy, increasing the cost and decreasing the supply of housing units, contrary to the City of Placentia’s Housing Element.
5 Ordinance No. O-2025-10
G. To fully protect the health, safety, and welfare of the City of Placentia the issuance of permits for short-term rental units must be temporarily prohibited until a permanent solution can be codified.
SECTION 4. Ordinance No. O-2025-07 is hereby extended to September 1, 2026, or until the City enacts an amendment to its zoning ordinances or another applicable regulation adopted by City Council, whichever is earlier. The issuance of any permit or applicable entitlement for any new short-term rental shall not be approved or issued during the pendency of this ordinance or any modification thereof.
SECTION 5. This ordinance shall become effective immediately upon adoption if adopted by at least four-fifths vote of the City Council and shall remain in full force and effect until September 1, 2026, or an amendment to the zoning ordinance or another applicable regulation adopted by City Council, whichever is earlier, unless earlier terminated by the City Council.
SECTION 6. The City Council has reviewed the matter and, based upon the facts and information contained in the staff reports, administrative record, and written and oral testimony, hereby finds that this ordinance is not subject to CEQA pursuant to Sections 15060(c)(2), 15060(c)(3) and/or 15061(b)(3) of the State CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, in that it will not result in a direct or reasonably foreseeable indirect physical change in the environment nor have a significant impact on the environment.
SECTION 7. If any provision of this ordinance or the application thereof to any person or circumstance is held to be to be unconstitutional or otherwise invalid by a court of competent jurisdiction, such invalidity shall not affect other provisions or applications of this ordinance which can be implemented without the invalid provision or application and to this end the provisions of this ordinance are declared to be severable.
SECTION 8. For the term of this ordinance, or any extension thereof, the provisions of this ordinance shall govern over any conflicting provisions of any other City code, ordinance, resolution or policy.
PASSED, APPROVED, AND ADOPTED this 7th day of October 2025.
Kevin Kirwin, Mayor
ATTEST:
Robert S. McKinnell, City Clerk
6 Ordinance No. O-2025-10
STATE OF CALIFORNIA
COUNTY OF ORANGE
I, Robert S. McKinnell, City Clerk of the City of Placentia, do hereby certify that the foregoing Urgency Ordinance was introduced and adopted at a regular meeting of the City Council of the City of Placentia, held on the 7th day of October 2025, by the following vote:
AYES: COUNCILMEMBERS:
NOES: COUNCILMEMBERS:
ABSENT: COUNCILMEMBERS:
ABSTAIN: COUNCILMEMBERS:
______________________________
Robert S. McKinnell, City Clerk
APPROVED AS TO FORM:
________________________________
Christian L. Bettenhausen, City Attorney
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