Planning and Building Agency
www.santa-ana.org/pb
Item # 21
City of Santa Ana
20 Civic Center Plaza, Santa Ana, CA 92701
Staff Report
April 2, 2024
TOPIC: Ordinances Prohibiting Short-Term Rentals
AGENDA TITLE
Approve Urgency Ordinance No. NS-XXXX of the City Council of the City of Santa Ana, adding Article XXI to Chapter 8 of the Santa Ana Municipal Code (SAMC) Prohibiting Short-Term Rentals (STRs) and for First Reading of an Ordinance Amending the SAMC Adding Article XXI to Chapter 8 of the SAMC Prohibiting Short-Term Rentals
RECOMMENDED ACTIONS
1. Adopt an urgency ordinance by two-thirds (2/3 vote) amending the Santa Ana Municipal Code (SAMC) to add Article XXI to Chapter 8 of the SAMC prohibiting Short-Term Rentals.
ORDINANCE NO. NS-XXXX entitled AN URGENCY ORDINANCE OF THE CITY
COUNCIL OF THE CITY OF SANTA ANA PURSUANT TO CHARTER SECTIONS 415 AND 417 ADDING ARTICLE XXI TO CHAPTER 8 OF THE SANTA ANA
MUNICIPAL CODE PROHIBITING SHORT-TERM RENTALS
2. Approve first reading of an ordinance amending the Santa Ana Municipal Code (SAMC) to add Article XXI to Chapter 8 of the SAMC prohibiting Short-Term Rentals.
ORDINANCE NO. NS-XXXX entitled AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA ANA ADDING ARTICLE XXI TO CHAPTER 8 OF THE
SANTA ANA MUNICIPAL CODE TO PROHIBIT SHORT-TERM RENTALS
3. Find that, in accordance with the California Environmental Quality Act (CEQA), the proposed action is not subject to the requirements of the California Environmental Quality Act, pursuant to (Guidelines) Section 15060(c)(2) because the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment and 15060(c)(3) because the activity is not a project as defined in Section 15378 of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly and so is not a project.
Short-Term Rentals Ordinances
April 2, 2024
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GOVERNMENT CODE §84308 APPLIES: No
DISCUSSION
The proliferation of online vacation rental websites such as Airbnb.com and vrbo.com have encouraged and enabled property owners, tenants, and occupants to rent their local, residential properties on a short-term basis to travelers or transients. These STRs, generally numbering less than 30 days, are often associated with excessive noise, parking problems, trash, and degradation of a neighborhood’s residential character.
Data collected from various STR platforms reveals that there are more than 1,100 active STR units across Santa Ana. Areas like Downtown and its nearby neighborhoods, along with the Hutton Center area, have a higher concentration of these rentals. To put this in perspective, the City's Regional Housing Needs Allocation (RHNA) for 2021-2029 is 3,137 permanent housing units. The 1,100 short-term rental units represent about 35% of the City's housing needs, diverting a significant portion of available housing away from permanent residents.
As a result of the reduction in available housing for permanent residents, the negative secondary effects including, but not limited to, excessive noise, parking problems, and trash, the urgency ordinance is necessary as an emergency measure to preserve the public peace, health, safety, and welfare. The adoption of the urgency ordinance will require two-thirds (2/3) approval by the City Council.
Presently, there are 112 confirmed active cases of STRs that have received enforcement notices and citations. Among these cases, 36 involve owners residing at the same address, while 84 involve properties owned by an LLC, managed by a property management company, or owned by absentee owners. Enforcement efforts in the City have primarily relied on complaints and proactive notifications to major STR platforms.
STRs are not, and have never been, a permitted use under the City’s zoning code.
Therefore, STRs have always been prohibited by the City and this urgency ordinance and first reading of an ordinance are reaffirming existing law. However, in response to recent legal developments, this urgency ordinance and first reading of ordinance seek to amend the Santa Ana Municipal Code (SAMC) to expressly prohibit short-term rentals in alignment with the City’s current practice.
FISCAL IMPACT
There is no fiscal impact associated with the proposed action.
ENVIRONMENTAL IMPACT
The proposed ordinances are not subject to the requirements of the California Environmental Quality Act, pursuant to Guidelines Section 15060(c)(2) because the activity will not result in a direct or reasonably foreseeable indirect physical change in the Short-Term Rentals Ordinances
April 2, 2024
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environment and 15060(c)(3) because the activity is not a project as defined in Section 15378 of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly and so is not a project.
EXHIBITS
1. Urgency Ordinance
2. Ordinance for First Reading
Submitted By: Minh Thai, Executive Director of Planning and Building Agency Approved By: Tom Hatch, Interim City Manager