Loading...
SR-400-011 (2) PCD:SF:JT:AS:JL:f:\plan\share\council\strpt\rental housing moratorium.doc Council Mtg: May 22, 2001 Santa Monica, California TO: Mayor and City Council FROM: City Staff SUBJECT: Recommendation to Adopt an Emergency Interim Ordinance Establishing a Moratorium on the Development of and Conversion to New Short-Term Rental Housing. INTRODUCTION This report recommends that the City Council adopt an emergency interim ordinance that establishes a moratorium on the development of short-term rental housing and the conversion of existing multi-family developments to this form of housing. Adoption of the ordinance is necessary to allow further review of the potential deleterious impacts which the proliferation of short-term housing may have on established residential neighborhoods and upon the City as a whole. Development of regulatory and entitlement standards as well as potential taxing alternatives must also be evaluated to ensure short-term housing projects are compatible with existing and future developments and to ensure consistency with the City’s development review process. BACKGROUND On April 10, 2001, the City Council considered written and oral testimony from several residents and business owners regarding short-term rental housing in the community. Comments included concern about the potential adverse impacts such uses have on the residential character of a neighborhood; the introduction of a commercial use in residential zones; the need for representative taxes similar to that paid by hotel 1 operators; and, from the proponents of short-term housing, the need for this type of housing alternative and concern regarding future regulatory requirements. The proposed interim emergency ordinance is intended to prohibit new development or conversions of existing multi-family residences to short-term rental housing while the concerns expressed by the community and City Council are evaluated. The interim emergency ordinance would expire on July 6, 2001, unless otherwise extended pursuant to applicable municipal regulations, and would not apply to property owners who can establish a vested right to develop or operate a short-term rental housing project. DISCUSSION Short-term rental housing is a housing alternative that provides temporary housing in fully furnished apartment-like units. Short-term rental housing is most often used by corporate travelers; however, vacationers, future residents and individuals remodeling homes or facing other temporary circumstances also use short-term housing. This type of housing is typically characterized by the average length of stay of an individual, the amenities offered, and the manner in which the housing alternative is marketed. Typically, short-term rental housing is designed for use by individuals who will occupy a unit more than 30 days but who intend that their occupancy will be temporary, and who maintain a permanent place of residence elsewhere. The typical amenities that may be offered include maid service, health club facilities, business centers, meeting rooms and valet parking. 2 Short-term rental housing is unique in that it combines a commercial venture, similar to a commercial lodging activity, and a residential use. This hybrid use provides opportunities for housing, but also incorporates commercial components that are not characteristic of a residential use. Occupants of short-term rental housing are less likely to participate in civic, neighborhood and community affairs and events and do not have the same level of involvement or ties to the community in which they reside, as long- term residents and property owners. Active and cohesive residential neighborhoods where residents interact with their neighbors and participate in local government help to maintain the quality and character of the neighborhood and contribute to the prosperity and charm of the City. Concern that these impacts could lead to a deterioration and destabilization of the neighborhood character and disrupt the quality of life for residents nearby this type of development is a significant issue warranting further study. The transitory nature of short-term rental housing also has the potential to impact established residential neighborhood in terms of increased noise, and intensity of use based upon the operation of short-term rental housing facilities. Other concerns associated with short-term rental housing relate to existing development regulations and the appropriateness of applying development bonuses that were intended to encourage long-term residential opportunities in commercial districts. Regulatory options, entitlements procedures and taxing alternatives are to be evaluated during the implementation of the emergency interim ordinance as requested by the City Council. 3 CONCLUSION Staff believes short-term rental housing has the potential to negatively impact residential districts. This is due to its transitory nature and the impact it has on the character and quality of residential neighborhoods. Therefore, regulations should be developed identifying the appropriate district in which to locate the use either by right or by discretionary review. Pending the conclusion of this review, an ordinance will be submitted to the City Council that will recommend development standards, an entitlement review process and taxes for short-term rental housing projects, if applicable. BUDGET/FINANCIAL IMPACT The recommendation presented in this report does not have any budget or fiscal impacts. RECOMMENDATION It is respectfully recommended that the City Council adopt the emergency interim ordinance included in Attachment A. Prepared by: Suzanne Frick, Director Jay Trevino, AICP, Planning Manager Amanda Schachter, Principal Planner Jonathan Lait, AICP, Associate Planner Planning and Community Development Department Attachment A: Proposed Emergency Interim Ordinance 4 f:\atty\muni\laws\barry\rental housing moratorium-1.wpd City Council Meeting 5-22-2001 Santa Monica, California ORDINANCE NUMBER ____ (CCS) (City Council Series) AN INTERIM ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA ESTABLISHING A MORATORIUM ON THE DEVELOPMENT OF AND CONVERSION TO SHORT-TERM HOUSING; DECLARING THE PRESENCE OF AN EMERGENCY THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES ORDAIN AS FOLLOWS: SECTION 1. Findings and Purpose. The Council finds and declares: (a) The proliferation of short-term rental housing can have a significant, detrimental impact on the quality of life in the community. (b) Short-term housing, also known as corporate housing, provides temporary accommodations in fully furnished apartments complete with furniture, appliances, housewares, and other furnishings. (c) Short-term housing projects typically afford an array of conveniences and services such as maid and linen service, laundry and dry cleaning service, on-site conference or meeting rooms, business centers, and Internet access. Most short-term housing facilities also offer a full health club, spa, large pool and tennis court. Projects that do not offer these facilities on-site, often offer membership to area facilities. (d) The average length of stay in short-term housing in the Los Angeles region is eighty days. Nationally, the average is seventy-one days. (e) The typical occupants of these facilities include: relocating executives requiring temporary accommodations until a permanent residence is established, corporate recruits, attorneys trying cases, and relocating families. This housing is also increasingly utilized by vacationers. The occupants of these units do not intend to make these units their permanent place of residence, but view these premises as interim abodes. 5 (f) The short-term housing inventory increased by 13% nationally in 2000 and is anticipated to increase by an average of 10% over the next four years, if current economic conditions persist. (g) Short-term housing is also growing exponentially in Santa Monica. Some of the recent major housing developments in the City that offer or will offer short term housing include the Arboretum project with 253 units (excluding the 97 units deed restricted to affordable housing), the Sea Castle with 133 units (excluding the 45 units deed restricted to affordable housing), and Citrus Suites with a combined 171 units available at two separate locations. (h) One of Santa Monicas primary housing goals is to preserve the quality and character of its = existing single and multi-family residential neighborhoods. Santa Monicas prosperity has always been = fueled by the areas many attractive features including its cohesive and active residential neighborhoods = and the diverse population which resides therein. In order to continue to flourish, the City must preserve its character and charm which result, in part, from the cultural, ethnic, and economic diversity of its resident population. (i) The City must also preserve its unique sense of community which derives, in large part, from residents active participation in civic affairs, including local government, cultural events, and educational = endeavors. Occupants of short-term housing do not and cannot have the same involvement and ties to the community and to neighborhoods in which they reside as occupants who treat the City and their neighborhoods as their home. Short-term occupants are less likely to become active in civic, neighborhood, and community affairs and events. (j) The City has adopted numerous regulatory measures intended to promote the development of multi-family housing and ensures that this development is occupied by individuals as their principle residence. The City never envisioned that these measures would facilitate the development of short-term housing. (k) The proliferation of short-term housing in the City is a recent phenomenon and the City needs time to adequately assess the full impacts of the form of housing and its appropriate scope and location within the City. 6 (l) For the reasons described above, the City Council finds that a moratorium on the development of and conversion to short-term housing is necessary because the continuing development of this form of housing in the City prior to the Citys review of its housing and land use policies and regulations presents = a current and immediate threat to the public peace, health, safety, and welfare. If urgent action is not taken, this form of development activity will continue unabated, thereby committing scarce land resources to development that is not in the best interests of the residents of the City. The approval of additional development of and the conversion to short-term housing in the City pending the Citys completion of its = review of its housing and land use policies and regulations would result in a threat to the public health, safety, and welfare. Consequently, this ordinance establishes a forty-five day moratorium on this form of housing extending up to and including July 6, 2001, to provide the City sufficient time to further evaluate and undertake appropriate actions to address impact of short-term housing. SECTION 2. Moratorium. (a) Subject to Section 3 of this Ordinance, a moratorium is hereby placed on the acceptance for processing of any applications for approval of tentative tract maps, tentative parcel maps, administrative approvals, development review permits, conditional use permits, design compatibility permits, zoning conformance, and building permits for any residential building or structure that will be utilized as short- term housing in any district in the City. (b) Subject to Section 3 of this Ordinance, all applications which have not been deemed complete as of May 22, 2001, for approval of tentative tract maps, tentative parcel maps, administrative approvals, development review permits, conditional use permits, design compatibility permits, zoning conformance, and building permits for any residential building or structure that will be utilized as short-term housing in any district in the City shall be disapproved. (c) Subject to Section 3 of this Ordinance, no person shall convert property to short-term housing without first obtaining a business license from the Citys Business License Division permitting this use. = (d) For purposes of this Ordinance, short-term housing shall be defined as rental housing which A@ has a combination of some but not necessarily all of the following attributes: 7 1. The property is designed for use by individuals who will reside on the property for a minimum stay of at least 30 days, but who otherwise intend their occupancy to be temporary. 2. The property is intended for use by persons who will maintain or obtain a permanent place of residence elsewhere. 3. The property includes some or all of the following amenities: (a) maid and linen service (b) health club, spa, pool, tennis courts, or memberships to area facilities (c) business service centers (d) meeting rooms (e) fully furnished units including a combination of some but not necessarily all of the following: furniture, appliances, housewares, bed linens, towels, artwork, television sets, stereos, VCRs, CD players, fax machines, and Internet access. (f) valet parking SECTION 3. Vested Rights. This Ordinance shall not be applicable to a property in which the owner can establish a vested right to develop or operate a short-term housing project. SECTION 4. This ordinance is declared to be an urgency measure adopted pursuant to the provision of Section 615 of the Santa Monica City Charter. As set forth in the findings above, this ordinance is necessary for preserving the public peace, health, safety, and welfare. SECTION 5. This Ordinance shall be of no further force and effect after forty-five days from the date of its adoption, July 6, 2001, unless prior to that date, after a public hearing, noticed pursuant to Santa Monica Municipal Code Section 9.04.20.22.050, the City Council, by majority vote, extends this Interim Ordinance. SECTION 6. Any provision of the Santa Monica Municipal Code or appendices thereto inconsistent with the provisions of this Ordinance, to the extent of such inconsistencies and no further, is hereby repealed or modified to that extent necessary to effect the provisions of this Ordinance. SECTION 7. If any section, subsection, sentence, clause, or phrase of this Ordinance is for any reason held to be invalid or unconstitutional by a decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it would have passed this Ordinance and each and every section, subsection, sentence, clause, or phrase not declared invalid or unconstitutional without regard to whether any portion of the ordinance would be subsequently declared invalid or unconstitutional. SECTION 8. The Mayor shall sign and the City Clerk shall attest to the passage of this Ordinance. The City Clerk shall cause the same to be published once in the official newspaper within 15 days after its adoption. This Ordinance shall become effective upon its adoption. APPROVED AS TO FORM: _________________________ MARSHA JONES MOUTRIE City Attorney 9