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PCD:SF:JT:AS: PF\f:\plan~share\council\strpt\rentalhsgext.doc
Council Mtg: June 19, 2001 Santa Monica, California
TO: Mayor and City Council
FROM: City Staff
SUBJECT: Emergency Interim Ordinance Extending Ordinance Number 2011(CCS)
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 to
extend for two years an interim ordinance establishing a moratorium on the development of
short-term rental housing and the conversion of existing multi-family developments to this
form of housing. On May 22, 2001 the City Council adopted Ordinance Number 2011
(CCS), a 45-day interim ordinance that established a moratorium on this use. This
ordinance will expire on July 6, 2001 unless the praposed interim emergency ordinance
(Attachment A) is adopted.
BACKGROUND
Ordinance Number 2011 {CCS) established a moratorium on short-term rental housing to
allow for 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. Concerns regarding short-term rental housing include the potential adverse
impacts such uses may have on the City and the character of residential neighborhoods in
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particular; the introduction of a commercial use into residential zones; the rieed for
representative taxes similar to that paid by hotel operators; and if there is a need for this
type of housing alternative. Other issues associated with short-term rental housing relate
to existing development standards and the appropriateness of applying development
bonuses that were intended to encourage long-term residential opportunities in commercial
districts. In response, pursuant to Council direction, regulatory options, entitlement
procedures and taxing alternatives will be evaluated during the term of the em~rgency
interim ordinance.
The 45-day interim ordinance and proposed ordinance extension affects any projec:t whose
application was not deemed complete for filing by May 22, 2001 This Ordinance is not
applicable to a property in which the owner can establish a vested right to develop or
operate a short-term rental housing project.
DISCUSSION
Staff recc>mmends adoption of the proposed emergency interim ordinance to extend for two
years Ordinance Number 2011 (CCS). This extension will allow for a comprehensive
planning process to evaluate the regulatory options for short-term rental housing. I'ending
conclusion of this process, an ordinance will be submitted to the City Council that will
recomm~nd development standards, an entitlement process, and taxes for short-term
rental housing, if applicable. Adopting a two year term for the proposed em~rgency
ordinance will provide staff with sufficient time to complete other pending projects prior to
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commencing this study.
CEQA STATUS
The proposed emergency interim ordinance is exempt from CEQA pursuant to CEQA
Guidelines Sections 15061 {b)(3). Section 15061(b)(3) provides that CEQA only applies to
those projects that have the potential for causing a significant effect on the environment.
The proposed moratorium on short-term rental housing does not have this potential.
Instead, the proposed emergency interim ordinance is environmentally beneficial as it will
preclude development of a use that has the potential to adversely impact the character and
quali#y of life in the City's residential neighborhoods.
CONCLUSION
The proposed emergency interim ordinance is necessary to allow for a comprehensive
planning process that will address the impacts of short-#erm rental housing in the
community.
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.
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Prepared by: Suzanne Frick, Director
Jay M. Trevino, AICP, Planning Manager
Amanda Schachter, Principal Planner
Planning and Community Development Department
Attachment: A: Proposed Emergency Interim Ordinance
B: Notice of Public Hearing
C. 5/22/01 Council Staff Report
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ATTACHMENT A
ATTAC H M E N T B
NOTICE OF A PUBLIC HEARING
BEFORE THE SANTA MONICA CITY COUNCIL
SUBJECT: PROPOSED EMERGENCY INTERIM ORDINANCE EXTENDING AN
EXISTING INTERIM ORDINANCE ESTABLISHING A MORATORIUM OR
THE DEVELOPMENT OF AND CONVERSION TO NEW SHORT-TERM
RENTAL HOUSING.
WHEN: Tuesday, June 19, 2001 at 7:00 p.m.
WHERE: City Hall Council Chambers
1685 Main Street
Santa Monica, California
PROJECT DESCRIPTION
The City Council will conduct a public hearing to consider adoption of an emergency
interim ordinance extending, for a two-year period, an interim ordinance adopted on May
22, 2001. The proposed emergency interim ordinance will establish a moratorium on the
development of short-term rental housing and the conversion of existing multi-family
developments to this form of housing.
HOW TO COMMENT
You may comment at the City Council public hearing, or by writing a letter. Written
information received before 3:00 p.m. on the Wednesday before the hearing will be given
to the City Council in their packet. Information received after that time will be given to the
City Council prior to the meeting.
Address your letters to: City Clerk
1685 Main Street, Room 102
Santa Monica, CA 90401
MORE INFORMATION
For more information about this project, please contact Amanda Schachter, Principal
Planner at (310) 458-8341 or via e-mail at amanda-schachter@santa-monica.org.
Information is also available on the City's web site at www.santa-monica.org. The meeting
facility is handicapped accessible. If you have any disability-related request, please
contact 310/458-8701 or TTY 310/ 458-8696 at least three days prior to the event. Santa
Monica Bus Lines 1, 2, 3 and 7 serve City Hall.
Pursuant to California Government Code Section 65009(b), if this matter is subsequently
challenged in Court, the challenge may be limited to only those issues raised at the Public
Hearing described in this notice, or in written correspondence delivered to the City of Santa
Monica at, or prior to, the Public Hearing.
ESPAIVOL
EI Concilio Municipal de la ciudad de Santa Monica tendra una audencia publica para
revisar applicaciones proponiendo desarrollo en Santa Monica. Para mas informacion,
Ilame a Carmen Gutierrez al numero (310) 458-8341.
APPROVED AS TO FORM
,J Ni. TREVINC7, AICP
P rtir~g Manager
F:\PLAN\SHARE\COUNCIL\NOTICES\shortterm.rentalhsng.doc
ATTACHMENT C
PCD:SF:JT:AS:JL:f:\plan\share\council\strptlrental 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
operators; and, from the proponents of short-term housing, the need for this type of
housing alternative and concern regarding future reg~latory requirements.
The proposed interim emergency ordinance is intended to prohibit new development or
conversions of existing niulti-family residences to short-term rental housing while the
concerns expressed by the community and City Council are evalNated. The interim
emergency ordinance would expire on July 6, 2001, unless o~herwise extended
pursuant to applicable municipal regulations, and would not apply ~~o property owners
who can establish a vested right to develop or operate a short-t~erm rental housing
project.
DISCUSSION h
Short-term rental housing is a housing alternative that provides te ~ porary housing in
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fully furnished apartment-like unifs. 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 d~f an individual, the
amenities offered, and the manner in which the housing altern~ative 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 witl 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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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
Pl.anning and Community Development Department
Attachment A: Proposed Emergency Interim Ordinance
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