SR-400-011 (5)
F:\PLAN\SHARE\COUNCIL\STRPT\2003\rentalhousingext.doc
Council Mtg: March 11, 2003 Santa Monica, California
TO: Mayor and City Council
FROM: City Staff
SUBJECT: Interim Ordinance Extending Ordinance Number 2012 (CCS) Concerning a
Moratorium on the Development of and Conversion to Short-Term Housing
INTRODUCTION
This report recommends that the City Council introduce for first reading an interim
ordinance extending for twelve months Ordinance Number 2012 (CCS) that placed a
moratorium 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 used as short-term housing in
any district in the City. Ordinance Number 2012 (CCS) will expire on June 19, 2003 unless
extended prior to that date.The proposed ordinance will extend the interim standards until
December 19, 2004. The proposed ordinance is contained in Attachment A.
BACKGROUND
On May 22, 2001 the City Council adopted Ordinance Number 2011 (CCS) establishing a
moratorium on the development of short-term rental housing and the conversion of existing
multi-family development to this form of housing. On June 19, 2001 the City Council
adopted Ordinance Number 2012 (CCS) extending the interim ordinance for a period of
two years to provide staff with additional time to implement a permanent ordinance. The
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proposed ordinance would extend Ordinance Number 2012 (CCS) for an additional twelve
months.
The need for the proposed ordinance remains the same as when the original ordinance
was introduced, adopted, and subsequently extended. Copies of the staff reports relating
to the original ordinance are attached (Attachment B) for reference.The impacts of
short-term housing upon the City of Santa Monica are considerable and include the
potential adverse impacts on the City and the character of residential neighborhoods in
particular and the introduction of a commercial use into residential zones. 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.
Other issues associated with short-term rental housing relate to existing development
standards and the appropriateness of applying development bonuses that were intended
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to encourage long-term residential opportunities in commercial districts, and analysis of
the need for this type of housing alternative in the City.
Ordinance Number 2012 requires staff to disapprove all applications which have not been
deemed complete as on May 22, 2001 for 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. 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
No changes, other than the revised term, are proposed to Ordinance Number 2012 (CCS).
Therefore, it will continue to impose the moratorium preventing the proliferation of short-
term rental housing.
Staff recommends a twelve month extension to Ordinance Number 2012 (CCS). This
length of extension is necessary to allow the City Planning Division additional time to
further evaluate the impacts of these housing types upon the City of Santa Monica,
considering the current workload and established priorities. The additional time will further
allow for the facilitation of community input.
CONCLUSION
The proposed interim ordinance is necessary to allow for a comprehensive planning
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process that will address the impacts of short-term rental housing in the City of Santa
Monica.
CEQA STATUS
As prepared, the proposed Ordinance is exempt from the provisions of the California
Environmental Quality Act (CEQA) pursuant to Section 15061(b)(3) in that it can be seen
with certainty that the proposed ordinance does not have the potential to significantly
impact the environment. The proposed Ordinance serves to further protect the
environment by precluding the development of a use that has the potential to adversely
impact the character and quality of life in the City’s residential neighborhoods.
PUBLIC NOTICE
A legal advertisement was published in the “California” section of the Los Angeles Times
at least ten consecutive calendar days prior to the hearing. A copy of the notice is
contained in Attachment C.
FINANCIAL IMPACT
The recommendation presented in this report has no budget or financial impact.
RECOMMENDATION
Staff recommends that the City Council introduce for first reading the interim ordinance
included in Attachment A.
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PREPARED BY: Suzanne Frick, Director of Planning and Community Development
Jay M. Trevino, AICP, Planning Manager
Amanda Schachter, Principal Planner
Jonathan R. Lait, AICP, Senior Planner
Bradley J. Misner, AICP, Associate Planner
ATTACHMENTS: A: Proposed Ordinance
B: Staff Reports dated May 22, 2001 and June 19, 2001
C: Public Notice
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ATTACHMENT A
PROPOSED ORDINANCE
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f:\atty\muni\laws\barry\rental housingext-1.wpd
City Council Meeting 3-11-2003 Santa Monica, California
ORDINANCE NUMBER ____ (CCS)
(City Council Series)
AN INTERIM ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA
MONICA EXTENDING THE MORATORIUM ON THE DEVELOPMENT OF
AND CONVERSION TO SHORT-TERM HOUSING
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
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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.
(f) The national short-term housing inventory increased dramatically during the
economic boom of the late 1990's and will continue to play a significant role in the
temporary housing industry notwithstanding the recent economic downturn.
(g) Short-term housing also grew exponentially in Santa Monica. Some of the
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 Monica’s primary housing goals is to preserve the quality and
character of its existing single and multi-family residential neighborhoods. Santa Monica’s
prosperity has always been fueled by the area’s 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
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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 this form of housing and its
appropriate scope and location within the City.
(l) In light of these concerns, the City Council adopted Ordinance Number
2011(CCS) on May 22, 2001 establishing a moratorium on the development of short-term
rental housing and the conversion of existing multi-family development to this form of
housing. The City Council extended Ordinance Number 2011 (CCS) on June 19, 2001.
However, that ordinance will expire on June 19, 2003 unless extended prior to that date.
(m) For the reasons described above, the City Council finds that extension of the
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 City’s
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
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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 City’s 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 extends the provisions of Ordinance Number 2011 (CCS) and Ordinance
Number 2012(CCS) for a period of one year, up to and including June 19, 2004, 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.
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(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 City’s Business License
Division permitting this use.
(d) For purposes of this Ordinance, “short-term housing” shall be defined as rental
housing which has a combination of some but not necessarily all of the following attributes:
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.
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SECTION 4. This Ordinance shall be of no further force and effect after June 19,
2004, 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 5. 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 6. 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 7. 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 thirty days after its adoption.
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APPROVED AS TO FORM:
_________________________
MARSHA JONES MOUTRIE
City Attorney
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ATTACHMENT B
STAFF REPORTS DATED MAY 22, 2001 AND JUNE 19, 2001
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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 operators; and, from
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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.
Short-term rental housing is unique in that it combines a commercial venture, similar to a
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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.
CONCLUSION
Staff believes short-term rental housing has the potential to negatively impact residential
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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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PCD:SF:JT:AS\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 proposed 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
particular; the introduction of a commercial use into residential zones; the need for
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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 emergency
interim ordinance.
The 45-day interim ordinance and proposed ordinance extension affects any project 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 recommends 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. Pending
conclusion of this process, an ordinance will be submitted to the City Council that will
recommend development standards, an entitlement process, and taxes for short-term
rental housing, if applicable. Adopting a two year term for the proposed emergency
ordinance will provide staff with sufficient time to complete other pending projects prior to
commencing this study.
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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
quality 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-term 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.
Prepared by: Suzanne Frick, Director
Jay M. Trevino, AICP, Planning Manager
Amanda Schachter, Principal Planner
Planning and Community Development Department
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Attachment: A: Proposed Emergency Interim Ordinance
B: Notice of Public Hearing
C. 5/22/01 Council Staff Report
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ATTACHMENT C
PUBLIC NOTICE
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NOTICE OF A PUBLIC HEARING
BEFORE THE SANTA MONICA CITY COUNCIL
SUBJECT:
A Public Hearing will be held by the City Council on the following request:
Introduction and First Reading of a Proposed Interim Ordinance Extending
Ordinance Number 2012 (CCS) Concerning a Moratorium on the
Development of and Conversion to Short-Term Housing
WHEN:
Tuesday, March 11, 2003 at 6:45 P.M.
WHERE:
Council Chamber, Room 213
1685 Main Street, Santa Monica
HOW TO COMMENT
The City of Santa Monica encourages public comment on this and other projects. You or
your representative, or any other persons may comment at the City Council's public
hearing, or by writing a letter.
Letters should be addressed to: City Clerk
1685 Main Street, Room 102
Santa Monica, CA 90401
MORE INFORMATION
If desired, further information on any application may be obtained from the City Planning
Division at the address above or by calling (310) 458-8341.
The meeting facility is accessible. If you need any disability-related accommodations,
please contact staff at (310) 458-8341 or (310) 458-8696 TTY at least 72 hours in
advance. All written materials are available in alternate format upon request.
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.
ESPAÑOL
Esto es un aviso sobre una audencia publica para revisar applicaciones proponiendo
desarrollo en Santa Monica. Esto puede ser de interes a usted. Si desea mas
informacion, llame a Carmen Gutierrez al numero (310) 458-8341.
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APPROVED AS TO FORM:
Jay M. Trevino, AICP
Planning Manager
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