Short-Term / Vacation
Rentals
By: Gabriel Elliott - Director of Community Development & Housing
BACKGROUND
• 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)
to establish a Short Term Rental
Program in the City of San
Bernardino.
BACKGROUND
• On February 21, 2024, staff presented a
recommendation to the Mayor and City Council for
the adoption of a regulatory scheme for Short-Term
Rentals.
• 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.
• On June 5, 2024, when the item was brought back
to the City Council as directed, the Council, by a
narrow majority, banned short-term rentals in the
city, and requested staff bring back an enforcement
plan.
BACKGROUND
• 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.
• 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
• The City’s Municipal Code (SBMC) does
not specifically address short-term/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 BAN
With a ban in place, it is generally believed that 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 or vacation rentals
outright in residential zones.
It is also believed that a clear prohibition would be more effective in deterring violations because it would create less confusion among homeowners. However, 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.
DISADVANTAGES
OF A BAN
A short-term rental ban has some
disadvantages. First, it would restrict
homeowners’ use of their own properties.
Banning short-term rentals could eliminate
uses that do not otherwise serve as a nuisance
to neighboring properties and would restrict
the rights of homeowners who have rented
responsibly.
Second, it is unclear whether an outright ban
would be effective because of the challenges
with consistent enforcement.
ASSOCIATED COSTS
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.
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.
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.
REGULAORY PROCESS
• If the City Council decides to regulate
short term rentals, a Development
Code Amendment, 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) establishing a Short-Term
Rental Program in the City of San
Bernardino, will be adopted.
TAKE NO ACTION
The option to take no action would mean that
neither a ban nor regulation would be in place.
However, staff believes that payment of TOT
should still be an option. There would be costs
associated with identifying who is currently
running a short-term rental operation in the
residential zone. There would be no revenue
stream from registration of short-term rental
locations.
TRANSIT OCCUPANCY TAXES
Per 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.
Based on the definitions in Section
3.55.020(a), staff believes that the existing
TOT language applies to short term rentals.
DEVELOPMENT CODE AMENDMENT
Whether the City bans or regulates Short Term or Vacation rentals, a Development Code Amendment will need to be
processed: The proposed Development Code will amend
Chapter 19.02 (Basic Provisions), Section 19.02.050
(Definitions) of the Development Code to add definitions for those terms uses specifically within the Short-Term Rental Program (Exhibit A).
The Development Code Amendment will also amend
Chapter 19.04 (Residential Zones), Table 04.01
(Permitted and Conditionally Permitted Uses) to add
short-term rentals as an unpermitted use within all single- family and multi-family zones (Exhibit B).
IMPLEMENTATION
The regulations governing short-term rentals
will become effective 30 days following
adoption of the Ordinance by the Mayor and
City Council. All properties currently
operating as a short-term or vacation rental
location will be required to register and
become eligible for the payment of TOT. If the
Mayor and City Council decide to ban short
term and vacation rentals, any presently
operating properties will need to cease their
operations and any illegally operating
properties will be subject to paying TOT to the
City.
IMPLEMENTATION
If the Mayor and City Council adopts an
Ordinance to ban Short Term or vacation
rentals, the City will send all properties
potentially operating as a short-term or
vacation rental a letter notifying them of the
ban and will provide operators with 60 days to
comply or face enforcement measures. The
same notification action will be taken if the
Mayor and City Council adopts an Ordinance
to regulate the use.
•
Property owners of Short-Term Rentals will be
responsible for reporting and paying into the
City’s Transient Lodging Tax/Transit Oriented
Tax (TOT).
•
GENERAL PLAN GOALS & POLICIES
• The City of San Bernardino General Plan
includes goals and policies to guide future
housing development, as follows:
• Land Use Goal 2.1: Preserve and enhance San
Bernardino’s unique Neighborhoods.
• Land Use Goal 2.2: Promote development that
integrates with and minimizes impacts on
surrounding land uses.
KEY STRATEGIC TARGETS & GOALS
• Development Code Amendment 25-
09 aligns with Key Target Goal No.
3: Improved Quality of Life and,
more specifically, 3a: Improve the
City’s appearance, cleanliness, and
attractiveness. Specifically, the ban
will update the Development Code to
prohibit short term 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
• The Planning Division conducted an
environmental evaluation in connection with
proposed Development Code Amendment 25-
09 and concluded that it is exempt from
CEQA under Section 15061(b)(3) (Common
Sense Exemption) of the CEQA Guidelines
due to the fact that the proposed Development
Code Amendment will not create significant
effects on the environment as it prohibits short
term rentals in all residential zones.
FISCAL IMPACTS
• Transit Occupancy Tax
associated with this program
has the potential to contribute
approximately $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 rentals in the city.
RECOMMENDATIONS
It is recommended
that the Mayor and
City Council of the
City of San
Bernardino:
Hold a Public Hearing;
and
Introduce and read by title only, and waive further reading of Ordinance No. MC-1660 of the Mayor and City Council of
the City of San Bernardino, California, adopting a regulatory program which would amend Section 19.02.050 (Basic
Provisions – Definitions) and Chapter 19.04 (Residential Zones) of the City of San Bernardino Development Code
(SBMC Title 19) for short-term and vacation rentals in the City of San Bernardino; or
RECOMMENDATIONS
It is recommended that the Mayor and City
Council of the City of San Bernardino:
Hold a Public
Hearing; and
introduce and read by title only, and waive
further reading of Ordinance No. MC-1661 of
the Mayor and City Council of the City of San
Bernardino, California 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) banning short term and vacation
rentals in the City of San Bernardino; or
RECOMMENDATIONS
It is recommended
that the Mayor and
City Council of the City
of San Bernardino:
Hold a Public Hearing;
and
Take no action on the
matter.
QUESTIONS