Short-Term and Vacation Rentals
by
Gabriel Elliott - Director of Community Development & Housing
• 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
Background
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.
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, a narrow majority, banned short-term vacation 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 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
A 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
With 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
A clear prohibition may deter violations
because it would create less confusion
among homeowners. The proposed ban in
the city will prohibit STRs in the fire prone
areas of the city which will include
properties zoned RE (Residential Estate and
RL (Residential Low).
SHORT TERM RENTAL BAN
To 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.
WHERE ARE THEY ?
WHERE ARE THEY ?
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 will 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.
ASSOCIATED COSTS
The maps identified in slides 10 and 11 are products of Deckard Technology.
For $7,500, Deckard Technology will identify properties registered on the various platforms, determine how many days their ads are up, and match addresses to properties in the city.
For the $16,500, Deckard Technologies will track, collect TOT, and remit to the city. Deckard will be available via phone should the Mayor and City Council have questions or comments about their services.
TRANSIENT ORIENTED 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.
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.
and Use Goal 2.2: Promote development that integrates with and minimizes impacts on surrounding land uses.
KEY STRATEGIC TARGETS & GOALS
An 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
Regulation 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
A ban will also update the Development
Code banning short term and vacation
rentals in the RE and RL 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.
FISCAL IMPACTS
Transit 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.
WHAT OTHER CITIES ARE DOING
In response to Council concerns regarding
process and procedure for regulation and
enforcement, staff contacted the following
cities, and the County of San Bernardino:
Big Bear; Los Angeles; Palm Springs; Santa
Monica, and San Bernardino County.
WHAT OTHER CITIES ARE DOING
All the agencies require an annual license
fee ranging from $100.00 in Santa Monica to
$1000.00 in Palm Springs. A fee of $500 to
$600 had been proposed for San Bernardino.
All the cities also restrict the number of STR
licenses to no more than two.
WHAT OTHER CITIES ARE DOING
For violations, the City had proposed a fine
of $1000.00/day with no renewals after 3
violations. This fee is consistent with what
other agencies are assessing for violations.
Outdoor noise disrupting the peace is
generally prohibited between 10 pm and 7
am.
WHAT OTHER CITIES ARE DOING
Most agencies prohibit street parking or
parking on neighboring properties. Parking
must be on designated driveways.
Per State Law, ADUs are prohibited from
being utilized as ADUs.
Some jurisdictions require an initial
inspection followed by annual inspections.
WHAT OTHER CITIES ARE DOING
All jurisdictions contacted require payment
of TOT.
All agencies limit the number of occupants
per bedroom.
Length of stay is not regulated by most
jurisdictions.
WHAT OTHER CITIES ARE DOING
Code Enforcement is used by most jurisdictions for
enforcing STR regulations.
The City of Rancho Cucamonga utilizes two part-
time code officers to regulate their STR program.
The equivalent cost for one code enforcement
officer (I) in San Bernardino is $107,000, which
includes salary and benefits.
SCOPE
City records indicate five (5) CRMs over the last four years for STRs.
There were CRMs at the 400 block of S D Street;
1 CRM at the 500 block of Edgerton Dr.
1 CRM at the 400 block of Edgerton Dr.
Several complaints at the 600 block of Ashton Str.
SCOPE
As necessary, the city will dedicate one code
enforcement officer specifically for this task but will rely on the resources of the entire department.
CEQA
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.
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?