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
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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.
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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.
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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
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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.
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(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
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existing single and multi-family residential neighborhoods. Santa Monicas prosperity has always been
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fueled by the areas many attractive features including its cohesive and active residential neighborhoods
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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
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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.
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(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
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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
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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.
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(d) For purposes of this Ordinance, short-term housing shall be defined as rental housing which
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has a combination of some but not necessarily all of the following attributes:
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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:
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MARSHA JONES MOUTRIE
City Attorney
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