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Attachment A - City of Sacramento

Council Legislation/Environmental Committee
May 18, 2022

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Attachment A - City of Sacramento
Meeting
May 18, 2022
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Council Legislation/Environmental Committee
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Text extracted from the city's file for reading and search. Open the original on legistar1.granicus.com. That file is the official record.

4/6/22, 2:49 PM Chapter 5.114 SHORT-TERM RENTALS
https://library.qcode.us/lib/sacramento_ca/pub/city_code/item/title_5-chapter_5_114?view=all 1/10 Sacramento, California City Code
Title 5 BUSINESS LICENSES AND REGULATIONS
Chapter 5.114 SHORT-TERM RENTALS
Article I. General Provisions

5.114.010 Definitions.

5.114.020 Fees and penalties established.

5.114.030 Permits not transferable.

5.114.040 Violations.

Article II. Short-Term Rental Permits

5.114.100 Short-term rental permit required—Consent required.

5.114.110 Applications for short-term rental permits.

5.114.120 Grounds for denying a short-term rental permit.

5.114.130 Issuance of short-term rental permit—Notice to neighbors.

5.114.140 Term of short-term rental permit.

5.114.150 Compliance with CC&Rs.

Article III. Short-Term Rental Regulations

5.114.200 Occupancy limit.

5.114.210 Annual limit.

5.114.220 Registry required.

5.114.230 Posting of permit and permit number.

5.114.240 Signs prohibited.

5.114.260 Special events prohibited.

ATTACHMENT A
4/6/22, 2:49 PM Chapter 5.114 SHORT-TERM RENTALS
https://library.qcode.us/lib/sacramento_ca/pub/city_code/item/title_5-chapter_5_114?view=all 2/10

5.114.270 Taxes.

5.114.280 Advertising in violation of this chapter.

Article IV. Procedures for Actions on Permits

5.114.300 Suspending, revoking, or conditioning a short-term rental permit.

5.114.310 Hearing required—Exception.

5.114.320 Notice of hearing.

5.114.330 Notice of decision.

5.114.340 Return of the permit.

5.136.350 Appeal of action on permit.

Article V. Hosting Platform Responsibilities

5.114.400 Hosting platform responsibilities.

Article I. General Provisions

5.114.010 Definitions.

For purposes of this chapter, the following definitions apply:
“Advertisement” means any method used to solicit interest in the rental, including internet-based listing or hosting services.
“Applicant” means the person applying for a short-term rental permit. “Booking transaction” means the reservation of a short-term rental between a host and a prospective lodger.
“City manager” means the city manager or designee.
“CC&Rs” (also known as “covenants, conditions, and restrictions”) means limitations and rules placed on a group of homes by a builder, developer, neighborhood association, or homeowner association.
“Dwelling” has the same meaning as in section 17.108.050. “Dwelling unit” has the same meaning as in section 17.108.050.

ATTACHMENT A
4/6/22, 2:49 PM Chapter 5.114 SHORT-TERM RENTALS
https://library.qcode.us/lib/sacramento_ca/pub/city_code/item/title_5-chapter_5_114?view=all 3/10 “Host” means a person who owns, leases, sub-leases, or has any other legal interest in a dwelling or dwelling unit offered for use as a short-term rental. “Hosting platform” means a person who collects or receives a fee, directly or indirectly, for conducting a booking transaction using any medium of facilitation, including an internet-based platform. “Lodger” means a person to whom a permittee is providing lodging for compensation. “Lot” has the same meaning as in section 17.108.130.
“Permittee” means the person to whom a short-term rental permit is issued. “Primary residence” means the dwelling unit in which the applicant or permittee resides for at least 184 days during the calendar year.
“Property owner” means the owner of the property on which the short-term rental dwelling unit exists, or their agent authorized to lease the short-term rental dwelling unit. “Short-term rental” has the same meaning as in section 17.228.104.D. “Transient occupancy tax” means the tax imposed under chapter 3.28. (Ord. 2020-005 § 1; Ord. 2018-0040 § 1; Ord. 2016-0004 § 1)

5.114.020 Fees and penalties established.

A. The following nonrefundable fees are established and imposed pursuant to the provisions of this chapter:

1. Short-term rental permit application fee; and

2. Short-term rental permit appeal fee.

B. The city council shall establish by resolution the amounts of the foregoing fees, and any penalties. (Ord. 2020-005 § 2; Ord. 2016-0004 § 1)

5.114.030 Permits not transferable.

A short-term rental permit may not be transferred. (Ord. 2016-0004 § 1)

5.114.040 Violations.

A. Any person who violates a provision of this chapter is subject to criminal sanctions and administrative penalties pursuant to Chapter 1.28.

B. Violations of this chapter are hereby declared to be a public nuisance subject to a civil action for abatement by the city attorney pursuant to Chapter 1.28.

ATTACHMENT A
4/6/22, 2:49 PM Chapter 5.114 SHORT-TERM RENTALS
https://library.qcode.us/lib/sacramento_ca/pub/city_code/item/title_5-chapter_5_114?view=all 4/10 C. Any person who violates a provision of this chapter is liable for civil penalties of not less than two hundred fifty dollars ($250.00) or more than twenty-five thousand dollars ($25,000.00) for each day the violation continues.

D. In addition to any other remedy allowed by law, all remedies prescribed under this chapter are cumulative and the election of one or more remedies does not bar the city from the pursuit of any other remedy to enforce this chapter. (Ord. 2016-0004 § 1)
Article II. Short-Term Rental Permits

5.114.100 Short-term rental permit required—Consent required.

A. No person shall operate a short-term rental unless there is a short-term rental permit in effect for that dwelling unit.

B. Upon demand of a peace officer or city employee authorized to enforce this chapter, every person operating a short-term rental shall present the short-term rental permit that is in effect for that dwelling unit.

C. No person shall operate a short-term rental without the consent of the property owner.

D. No person shall operate a short-term rental in more than one dwelling unit on the same lot, unless the person’s primary residence is in the city. (Ord. 2018-0040 § 2; Ord. 2016-0004 § 1)

5.114.110 Applications for short-term rental permits.

A. An owner, lessee, or holder of a similar interest in a dwelling unit may apply for a short-term rental permit by filing an application with the city manager. The application must be on a form approved by the city manager and may require any information or documentation consistent with the provisions of this chapter.

B. To renew a short-term rental permit, the permittee shall file an application with the city manager. The application must be
submitted no later than thirty (30) days prior to the short-term rental permit expiration date. Untimely applications to renew short-term rental permits are subject to a late penalty in the amount established by resolution of the city council.

C. Every application for a short-term rental permit, including renewal applications, shall be accompanied by the short-term rental permit application fee in the amount established by resolution of the city council.

D. No person shall knowingly make a false statement of fact or knowingly omit any information that is required in an application for a short-term rental permit. (Ord. 2016-0004 § 1)

5.114.120 Grounds for denying a short-term rental permit.

The city manager may deny an application for a short-term rental permit for any of the following reasons:

ATTACHMENT A
4/6/22, 2:49 PM Chapter 5.114 SHORT-TERM RENTALS
https://library.qcode.us/lib/sacramento_ca/pub/city_code/item/title_5-chapter_5_114?view=all 5/10 A. The application is incomplete;
B. The application contains a false or misleading statement or omission of a material fact; C. The dwelling is subject to an enforcement action pursuant to any provision of this code, including, but not limited to, Chapters 8.04 (Nuisances Generally), 8.96 (Dangerous Buildings Code), and 8.100 (Housing Code);
D. The dwelling has more than once been found to be in violation of any provisions of this code, including, but not limited to, Chapters 8.96 (Dangerous Buildings Code) and 8.100 (Housing Code); E. The property owner or occupants of the dwelling have more than once been found to be in violation of any applicable law, including, but not limited to, Chapters 8.08 (Social Nuisance Code) and

8.68 (Noise Control);
F. The applicant or the property owner is delinquent on any payment to the city of any fees, penalties, taxes, or any other monies related to the property; G. Within two years of the date of application, a short-term rental permit for the dwelling was denied for any of the reasons provided in subsections B through F or revoked; or H. The operation of a short-term rental by the applicant or at the dwelling is a threat to the public health, safety, or welfare. (Ord. 2020-005 § 3; Ord. 2016-0004 § 1)

5.114.130 Issuance of short-term rental permit—Notice to neighbors.

A. Unless the city manager determines that grounds for denying an application for a short-term rental permit exist, the city manager shall issue the permit. The city manager may impose conditions on the permit as necessary to protect the public health, safety, and welfare.

B. Upon issuance of a short-term rental permit, the city will notify all owners of property within two hundred (200) feet of the permitted short-term rental dwelling unit. The notice will be in writing and contain the location of the short-term rental dwelling unit and the contact information for the permittee. (Ord. 2016-0004 § 1)

5.114.140 Term of short-term rental permit.

A short-term rental permit is valid for one year from the date the permit was issued, unless it is suspended or revoked sooner. (Ord. 2016-0004 § 1)

5.114.150 Compliance with CC&Rs.

No person shall operate a short-term rental in violation of applicable CC&Rs or similar regulations. (Ord. 2018-0040 § 3)

ATTACHMENT A
4/6/22, 2:49 PM Chapter 5.114 SHORT-TERM RENTALS
https://library.qcode.us/lib/sacramento_ca/pub/city_code/item/title_5-chapter_5_114?view=all 6/10 Article III. Short-Term Rental Regulations

5.114.200 Occupancy limit.

A. No permittee shall rent to more than six people per short-term rental.

B. Notwithstanding subsection A, if the permittee’s primary residence is not on the same lot as the short-term rental, the permittee shall not rent to more than six people per lot. (Ord. 2018-0040 § 5; Ord. 2016-0004 § 1)

5.114.210 Annual limit.

If the short-term rental dwelling unit is not the primary residence of the permittee, no permittee shall, for compensation, provide lodging for more than an aggregate of ninety (90) days in any calendar year. (Ord. 2016-0004 § 1)

5.114.220 Registry required.

A. A permittee shall keep a register that documents the following information:

1. All dates on which the permittee provided lodging for compensation;

2. The number of lodgers on each date; and

3. The amount of rent paid by lodgers for each night of lodging.

B. A permittee shall maintain this register in a printed format for at least three years and, except as provided in subsection C below, shall provide the register to the city upon request.

C. For
rentals that are not the primary residence of the permittee, the permittee shall provide an updated copy of the register to the city each January, April, July, and October, by sending or delivering the register to the city department and address listed on the short-term rental permit. (Ord. 2017-0048 § 1; Ord. 2016-0004 § 1)

5.114.230 Posting of permit and permit number.

A. A permittee shall post a copy of the short-term rental permit in a conspicuous place in each room in which a lodger is expected to sleep.

B. All persons operating a short-term rental shall identify the city short-term rental permit number in any advertisement for that rental. (Ord. 2018-0040 § 4; Ord. 2017-0048 § 2; Ord. 2016-0004 § 1)

5.114.240 Signs prohibited.

ATTACHMENT A
4/6/22, 2:49 PM Chapter 5.114 SHORT-TERM RENTALS
https://library.qcode.us/lib/sacramento_ca/pub/city_code/item/title_5-chapter_5_114?view=all 7/10 No permittee shall post on the short-term rental dwelling unit property any sign or writing visible from the exterior of the dwelling indicating that the dwelling unit is available for rent. (Ord. 2016-0004 § 1)

5.114.260 Special events prohibited.

No permittee shall allow any conferences, weddings, fundraisers, or similar gatherings at the short- term rental dwelling unit. (Ord. 2016-0004 § 1)

5.114.270 Taxes.

Permittees shall pay the appropriate business operations tax as set forth in Chapter 3.08 and the uniform transient occupancy tax as set forth in Chapter 3.28. (Ord. 2016-0004 § 1)

5.114.280 Advertising in violation of this chapter.

No person shall make, print, publish, or disseminate an advertisement for any activity that violates this chapter. (Ord. 2018-0040 § 6)
Article IV. Procedures for Actions on Permits

5.114.300 Suspending, revoking, or conditioning a short-term rental permit.

A. The city manager may suspend, revoke, or condition any short-term rental permit for any of the following reasons:

1. One or more of the circumstances upon which a short-term rental permit could be denied as described in section 5.114.120 exists or has occurred; or

2. The permittee has violated any provision of this chapter.

B. The conditions that the city manager may impose on the short-term rental permit include, but are not limited to:

1. Requiring the permittee to remain at the dwelling unit during certain hours while guests are present;

2. For rentals that are the primary residence of the permittee, requiring a property manager who resides in the city and who will quickly respond to complaints;

3. Reducing the number of guests that are allowed to lodge at the dwelling unit; and

4. Reducing the number of days in a year that the permittee is allowed to provide lodging.

ATTACHMENT A
4/6/22, 2:49 PM Chapter 5.114 SHORT-TERM RENTALS
https://library.qcode.us/lib/sacramento_ca/pub/city_code/item/title_5-chapter_5_114?view=all 8/10 C. For rentals that are not the primary residence of the permittee, the city manager shall impose a condition on the short-term permit that the permittee identify – by name, address, and contact information, including phone number and email address – a property manager who resides within a 30- mile radius of the short-term rental and who will quickly respond to complaints. The permittee shall notify the city of any change in information for the property manager. (Ord. 2017-0048 § 3; Ord. 2016-0004 § 1)

5.114.310 Hearing required—Exception.

A. No short-term rental permit may be suspended, revoked, or conditioned until the permittee is provided a notice of hearing pursuant to Section 5.114.320 and an opportunity to be heard by the city manager.

B. Notwithstanding subsection A, a permit issued pursuant to this chapter may be suspended, revoked, or conditioned immediately upon the city manager’s determination that the immediate suspension of the permit is necessary to protect the public health, safety, or welfare.

C. If a permit is immediately suspended pursuant to subsection B, the permittee subsequently shall be provided a notice of hearing pursuant to Section 5.114.320 and an opportunity to be heard by the city manager. (Ord. 2016-0004 § 1)

5.114.320 Notice of hearing.

A. The city manager shall serve on the permittee a notice of hearing on the decision to suspend, revoke, or condition a short-term rental permit. The notice shall be in writing and contain a brief statement of the grounds for the action, and the date, time, and location of the hearing.

B. The notice of hearing shall be personally served or sent by certified mail to the permittee at the address sub-mitted in the permit application at least ten (10) calendar days prior to the hearing. Service by certified mail is complete at the time the notice is deposited in the mail. (Ord. 2016-0004 § 1)

5.114.330 Notice of decision.

A. If, after the permittee has had an opportunity to be heard, the city manager decides to suspend, revoke, or condition a short-term rental permit, the city manager shall serve a notice of decision on the permittee. The notice shall be in writing and contain:

1. The specific grounds for the decision;

2. A statement that the permittee may appeal the decision by submitting an appeal, in writing to the city manager, within ten (10) calendar days of the date of service of the notice; and

3. A statement advising that the failure to appeal the decision will constitute a waiver of all rights to an appeal hearing, a failure to exhaust administrative remedies, and a bar to any judicial action pertaining to the city manager’s decision.

ATTACHMENT A
4/6/22, 2:49 PM Chapter 5.114 SHORT-TERM RENTALS
https://library.qcode.us/lib/sacramento_ca/pub/city_code/item/title_5-chapter_5_114?view=all 9/10 B. The notice of decision shall be personally served or sent by certified mail to the permittee at the address submitted in the permit application. Service by certified mail is complete at the time the notice is deposited in the mail. (Ord. 2016-0004 § 1)

5.114.340 Return of the permit.

A permittee shall return a suspended or revoked short-term rental permit to the city manager within three calendar days of the receipt of the notice of decision described in Section 5.114.330. (Ord. 2016- 0004 § 1)

5.136.350 Appeal of action on permit.

A. Any applicant or permittee may appeal the city manager’s decision to deny, suspend, revoke, or condition a short-term rental permit by submitting a written notice of appeal to the city manager within ten (10) calendar days from the date of service of the notice of decision. The written notice of appeal must contain:

1. A brief statement in ordinary and concise language of the specific decision protested, together with any material facts claimed to support the appeal;

2. A brief statement in ordinary and concise language of the relief sought, and the reasons why it is claimed the protested decision should be reversed or otherwise set aside;

3. The signatures of all parties named as appellants and their official mailing addresses; and

4. A declaration under penalty of perjury by at least one appellant as to the truth of the matters stated in the notice of appeal.

B. The appeal hearing shall be conducted by a hearing examiner appointed pursuant to Section

8.04.070.

C. Upon receipt of any appeal filed pursuant to this section, the city manager shall transmit the appeal to the hearing examiner, who shall cause it to be calendared for the next regularly scheduled appeal hearing date that is at least fifteen (15) days later.

D. The hearing examiner shall serve a notice of appeal hearing on each appellant. The notice shall be in writing and contain the date, time, and location of the appeal hearing. The notice shall be personally served or sent by mail to the appellant at the address shown on the appeal at least ten (10) days prior to the date of the hearing.

E. Only those matters or issues specifically raised by the appellant in the written notice of appeal shall be considered in the appeal hearing.

F. Failure of any person to file a timely appeal in accordance with the provisions of this section shall constitute an irrevocable waiver of the right to an administrative hearing and a final adjudication of the matter and any portion thereof. (Ord. 2016-0004 § 1)

ATTACHMENT A
4/6/22, 2:49 PM Chapter 5.114 SHORT-TERM RENTALS
https://library.qcode.us/lib/sacramento_ca/pub/city_code/item/title_5-chapter_5_114?view=all 10/10 Article V. Hosting Platform Responsibilities

5.114.400 Hosting platform responsibilities.

A. No hosting platform shall accept a fee for any booking transaction unless the host has a valid city-issued short-term rental permit.

B. A hosting platform is, and has the responsibilities of, an operator as provided in chapter 3.28 for the limited purposes of collecting the transient occupancy tax for a booking transaction and remitting the tax to the city in accordance with section 3.28.070 and keeping and preserving records for city inspection in accordance with section 3.28.140. (Ord. 2020-005 § 4) Contact:

City Clerk: 916-808-7200
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ATTACHMENT A

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