Short-Term and Vacation Rental
By: Gabriel Elliott - Director of Community Development & Housing
Background
Ø On December 12, 2023, the Planning Commission, by a
unanimous vote, adopted Resolution No. 2023-043PC
forwarding a recommendation that the Mayor and City
Council approve Development Code Amendment 23-01,
amending Section 19.02.050 (Basic Provisions – Definitions) and Chapter 19.04 (Residential Zones) of the City of San Bernardino Development Code (SBMC Title 19) in order to establish a Short Term and Vacation Rental Program in the City of San Bernardino.
Background
Ø On February 21, 2024, staff took forward a recommendation to the Mayor and City Council for the adoption of a regulatory scheme for Short-Term Rentals.
Ø At the meeting, the City Council directed staff to conduct additional analysis on enforcement measures and the effects of a Short-Term Rental Program on the City’s housing market.
Ø On June 5, 2024, when the item was brought back to the City Council as directed, the Council, a narrow majority, banned short-term vacation rentals in the city, and requested staff bring back an enforcement plan.
Background
Ø The City of San Bernardino does not currently have an ordinance that expressly regulates STRs and has experienced the negative effects of excessive noise, parking problems and discarded trash on surrounding properties, resulting in numerous complaints, creating a threat to the public interest, health, safety, convenience, and welfare of the community.
Ø San Bernardino has received numerous complaints about residents leasing their residential properties to travelers and for weekend retreats as short-term vacation rentals. Common complaints assert that the rentals cause conditions that degrade the quality of residential neighborhoods.
Background
Ø The City’s Municipal Code (SBMC) does not specifically address short-term and vacation rentals. However, a
commercial use is generally prohibited in residential zones, unless specifically permitted. Because the SBMC does not expressly prohibit short-term vacation rentals, the issue of the SBMC’s intent is disputed by residential property
owners who wish to lease to tourists and/or retreatants for short stays.
SHORT TERM RENTAL PROGRAM
ØA Short Term Rental program will ensure that the
use will be recognized as a bona fide land use in
the development code with a definition and
accompanying development standards. The City
will adopt and implement specific revisions to the
SBMC that would regulate the land use.
SHORT TERM RENTAL BAN
ØWith a ban in place, the City would no longer
need to rely on various interrelated code
provisions that together proscribe vacation
rentals. The City will adopt and implement
specific revisions to the SBMC that would
ban short-term vacation rentals outright in
residential zones.
SHORT TERM RENTAL BAN
ØA clear prohibition may deter violations
because it would create less confusion
among homeowners. A ban would not alter
the SBMC’s current implicit characterization
of short-term rentals as inconsistent with the
City’s residential land use regulations.
SHORT TERM RENTAL BAN
ØTo effectively ban short term rentals,
the city would first need to identify
those properties that are currently
engaged in the short-term rental
activities and officially notify them of
the ban.
ASSOCIATED COSTS
Ø The city has engaged the services of Deckard Technologies, a company that utilizes data science expertise to assist local governments with managing compliance activity and enforcement, such as short-term rental (STR) properties.
Ø Deckard Technologies would use Rentalscape platform to accurately track activity within the City of San Bernardino, to identify the exact addresses of the STR listings within the City limits.
Ø There are cost implications depending on the level of service required by the city. The contract for Rentalscape only, for the identification, monitoring, and compliance letters is $7,500, annually. Contract for Rentalscape, Online Registration and TOT for the above along with registration and TOT collection is $16,500 annually.
TRANSIT ORIENTED TAXES
ØPer Section 3.55.020(A), each transient is subject to
and shall pay a transient lodging tax in the amount
of 10% of the room rental charged by the operator.
ØBased on the definitions IN Section 3.55.020(a),
staff believes that the existing TOT language applies
to short term rentals.
GENERAL PLAN GOALS & POLICIES
Ø The City of San Bernardino General Plan includes goals and policies to guide future housing development, as follows:
Ø Land Use Goal 2.1: Preserve and enhance San Bernardino’s unique Neighborhoods. L
Ø and Use Goal 2.2: Promote development that integrates with and minimizes impacts on surrounding land uses.
KEY STRATEGIC TARGETS & GOALS
ØAn Ordinance regulating or banning
Short Term and vacation rentals aligns
with Key Target Goal No. 3: Improved
Quality of Life and, more specifically, 3a:
Improve the City’s appearance,
cleanliness, and attractiveness.
KEY STRATEGIC TARGETS & GOALS
ØRegulation will update the Development
Code to allow short term and vacation
rentals in all residential zones. The
amendment to the Development Code will
ensure consistency with the City’s land use
designations as required by the City’s
General Plan.
KEY STRATEGIC TARGETS & GOALS
ØA ban will also update the Development
Code banning short term and vacation
rentals in all residential zones. The
amendment to the Development Code will
ensure consistency with the City’s land use
designations as required by the City’s
General Plan.
CEQA
Ø The Planning Division conducted an environmental
evaluation in connection with proposed Ordinances and
concluded that it is exempt from CEQA under Section
15061(b)(3) (Common Sense Exemption) of the CEQA
Guidelines because the proposed Ordinance to regulate or ban short term and vacation rental will not create significant effects on the environment as it regulates or prohibits short term rentals in all residential zones.
FISCAL IMPACTS
ØTransit Occupancy Tax associated with this
program has the potential to contribute up
to $324,000, annually. At same time, there
is a potential cost of up to $16,500 for a
program to monitor the locations of short
term and vacation rentals in the city.
RECOMMENDATION
It is recommended that the Mayor and City Council take the following action:
1. Adopt Ordinance No. MC-XX-X, establishing a regulatory program for short term and vacation rentals in residential zones in the City of San Bernardino; or
2. Adopt Ordinance No. MC–XX-X banning short-term rentals in residential zones in the City of San Bernardino).
3. That the Council take no action.
THANK YOU & QUESTIONS?