Loading...
SR 06-13-2017 7A Ci ty C ouncil Report City Council Meeting : June 13, 2017 Agenda Item: 7.A 1 of 5 To: Mayor and City Council From: David Martin, Director , Administration Subject: Home -Sharing and Accessory Dwelling Units Recommended Action Introduction and First Reading of an Ordinance Amending Chapter 6.20 of the Santa Monica Municipal Code Relati ng to Accessory Dwelling Units and Vacation Rentals and a Clarification of th e Definition of Vacation Rental. Executive Summary At its February 28, 2017 meeting, Council adopted changes, corrections, and clarifications to the Zoning Ordinance including ch anges related to Accessory Dwelling Units ; however, necessary concurrent changes to the home -sharing ordinance w ere not made . During the first reading of the proposed ordinance, Council directed staff to include language restricting the use of an Accessor y Dwelling Unit (ADU) for a residential rental of 30 days or less. According to the record, Council’s direction was intended to prevent a newly constructed ADU from being used as a Vacation Rental, as defined by the Santa Monica Municipal Code (SMMC). Th e ordinance was adopted on Second Reading on February 28, 2017 and effective March 30, 2017. However, Santa Monica Municipal Code Section 6.20.020 provides that if any provision of Chapter 6.20 conflicts with any provision of the Zoning Ordinance, Chapter 6.20 shall prevail. As such, in order to fully effectuate Council’s direction, it is necessary to also amend Chapter 6.20 SMMC. Background Section 9.21.020 of the Santa Monica Municipal Code (SMMC) established standards for Accessory Buildings and Stru ctures. Accessory Structures are detached subordinate structures used only as incidental to the main structure on the same parcel. Examples of Accessory Buildings and Structures include but are not limited to greenhouses, storage sheds, workshops, garage s, and other structures that are detached from the main building. Accessory Buildings and Structures may only be constructed on a parcel with a legally -permitted main building. An Accessory Building 2 of 5 may not contain a kitchen unless specifically permitted as an “Accessory Dwelling Unit” (ADU) pursuant to SMMC Section 9.31.300. Additionally an Accesso ry Building may only contain a sink and toilet, but may not have a shower or tub unless specifically permitted as an ADU. As such an Accessory Building or St ructure is considered an extension of the main building, whereas if it is permitted as an Accessory Dwelling Unit it would provide complete independent living facilities and would therefore be considered a Single Dwelling Unit, consistent with California G overnment Code Section 65852.2. On December 14, 2016, the Planning Commission adopted a Resolution recommending to the City Council that, among other changes, corrections, and clarifications to the Zoning Ordinance (ZO), staff should be directed to mak e changes related to Accessory Dwelling Units to be consistent with recent changes in State law. (See Attachment A) During the first reading of the ordinance at the February 14, 2017 Council meeting (see Attachment B ), Council directed staff to include l anguage restricting the use of a newly constructed Accessory Dwelling Unit (ADU) for a residential rental of 30 days or less. At its February 28, 2017 meeting, Council adopted changes, corrections, and clarifications to the ZO including the changes rela ted to Accessory Dwelling Units ; however necessary concurrent changes to SMMC Chapter 6.20 were not made . (See Attachment D) Discussion The City’s Home -Sharing Ordinance (Santa Monica Municipal Code Chapter 6.20) currently regulates home -sharing and vaca tion rental activities. Additionally, Chapter 6.20 supersedes the Zoning Ordinance as it relates to the regulation and enforcement of Home -Sharing Ordinance / vacation rental activities. Accordingly when there is a conflict, Chapter 6.20 would prevail. Under existing law , a person is allowed to authorize exclusive transient uses in any accessory structure, including a guest house, when the entire property is designated for 3 of 5 a single family residential use and when the host remains in the main -house . Of t he 195 active home -sharing business licenses , 37 business licenses are for “guest houses,” or 19%. When the home -sharing ordinance was adopted, the application and registration process was intentionally made as simple as possible to encourage voluntary registration. This was based on the research of other cities that were experiencing difficulty in getting hosts to register. This included: no special permitting fees, a streamlined application process, and no on -site inspections. When the program was l aunched staff did on occasion conduct exterior visual inspections of properties primarily as an educational tool. However, staff has not completed any interior inspections due to the increased resources that would be necessary and the potential deterrent t o registration. Home -sharing permits are valid for one year at a time and thus must be renewed annually. Under the proposed ordinance, an ADU which received its building permit on or after March 31, 2017 would constitute a separate dwelling unit and th us could not be occupied by exclusive transient uses. ADUs with building permits prior to March 31, 2017 or any non -ADU accessory structures (e.g. an Accessory Structure or Building which may not contain a kitchen or may only contain a sink and toilet but not a shower), could continue to be occupied by exclusive transient uses. The proposed ordinance also makes a minor clarification to the definition of “Vacation Rental” to provide greater clarity and to align with existing regulations. Next Steps I n order to effectuate Council’s direction, Staff will update the administrative regulations and home -sharing business license application package prior to the 2017/18 renewal cycle to more clearly reflect the distinction between an Accessory Structure or B uilding from an Accessory Dwelling Unit. 4 of 5 Alternatives The Council could choose to eliminate exclusive transient uses for all ADUs, including ADUs with building permits prior to March 31, 2017. If so, staff recommends allowing any existing ADU s with home -sharing permits to continue existing operations until the expiration of their annual home -sharing permit. Financial Impacts and Budget Actions There is no immediate financial impact or budget action necessary as a result of recommended action. Prepared By: Salvador Valles, Assistant Director of PCD Approved Forwarded to Council Attachments: A. December 14, 2016 Planning Commis sion Meeting B. February 14, 2017 Council Meeting Staff Report 5 of 5 C. February 28, 2017 Council Meeting Staff Report D. Ordinance E. Written Comments 1 Vernice Hankins From:Michele Perrone <micheleperrone@me.com> Sent:Sunday, June 11, 2017 3:31 PM To:Winterer Ted; Himmelrich Sue; Kevin McKeown Fwd; Gleam Davis; Tony Vazquez; Pam OConnor; Terry O’Day; Council Mailbox; Santa Monica City Manager's Office; Clerk Mailbox Cc:Auch David; Marlow Mary Subject:Item #7 Honorable Mayor Winterer and City Council Members, I understand you are discussing short-term rentals this Tuesday, which looks to be an effort to further limit the possible scenarios where it can be used. I sincerely hope you do not do that. Rather, pl ease take a second look at the impacts, most especially how the current ordinance affects an often-forgotten de mographic in Santa Monica: middle-class, close to retirement and retired homeowner s. I know we are small groups, but, we are here. Many people, lost their life-savings in th e crash of 2008. Many are still hanging on by a thread, especially in these 3 demographics. Renting out a small guest house or studio apartmen t short term could thei r saving grace. It could make the difference whether many of us can can stay in our homes, age in place, or, have to move from a community we’ve become deeply connected to, and have grown to love. How can this be good for Santa Monica, the city that is always looking for housing, especially affordable? It could be assumed that some of these same people, if forced to leave their homes, could be in need of subsidized housing, putting additional pressure on the housing market . The same people who have contributed via taxes, community involvement or just being a good neighbor. So, wh ile the city is trying to create ways for people to get affordable housing you are be creating a further need by not allowing these part icular homeowners to use the benefit of a short-term rental on their own property, which they work ve ry hard to keep and keep up. I must believe you can see this. Most residents naturally agree that short-term rentals are bad for the community when in apartment buildings and/or when the owner does not live on the property. But, there are some instances it is very beneficial to your residents, the neighborhood and Santa Monica itself. The current ordinance allows short-term on single family properties with guest houses, again, a saving grace for many people. Why not at least mimic what is currently allowed on single family parcels in a duplex parcel? Guests houses usually only have 1 bedroom or less, so you could make this a condition. Duplexes like this are scarce in Santa Monica and it would have minimal, to zero, net impact on neighborhoods. Overall, one could easily argue there are more plusses than minuses in a llowing short-term rentals of a duplex, and maybe even in triplexes, if small and only one of the 3 units. If a blanket law permitting duplexes is unpalatable to the city, how about limiting it to 55 and older? 2 guests? Single parent with one child? And, again, what about only 1 bedroom or less? Thus, lessening any perceive d impact on the rental market. Here are some the reasons, I believe, it would be beneficial to the community: 1)Keeping the character of the neighborhood . This is huge. As homes and properties are sold, they are usually replaced by maximum sized homes and condomi nium projects. In multi-family neighborhoods, like Ocean Park, old houses are being torn down and replaced by 3 unit condo projects, completely built out. Many people are complaining about it. And, as these high-end projects come in the property values and price of surrounding rentals goes up. Item 7-A 06/13/17 1 of 7 Item 7-A 06/13/17 2 2) As mentioned, homeowners over the age of 55, who are close or at retirement age, need the extra income to stay here and retire in place. Income goes up very slowly, if at all, in this age bracket. Since the crash of 2008 prices have gone up exponentially, while pr operty and sales taxes con tinue to rise. This is unlikely to stop. Money that used to afford a comfortable lifestyle is qui ckly run through, making it hard to make ends meet. The crash of 2008 hit everyone hard, and af ter a certain age it is very hard to replenish what one lost. Allowing these residents to home-share would help keep a di verse age group in the neighborhoods, while having n o impact on the rental markets, since they ar e not under rent control in the first place. With a landlord living there, guests are not likely to disturb the quiet of any neighborhood. Limiting it to 2 guests also makes it very unlikely ther e will be a disturbance. And, owners being there will not tolerate it. 3) Additional revenue for the city. The city receives a high tax from th e short-term rental platform. It was mentioned in a meeting with David Martin, and his staff members, one of the negative impacts on the community is people aren’t using our school s. This might help make up for it? 4) Makes Santa Monica affordable to vi sit, and makes Santa Monica look good ! It contributes to tourist dollars while giving a guest an auth entic experience of life here, and, a good impression of Santa Monica. Who of you has stayed in an airbnb when tr aveling. It is a sp ecial experience. 5) It is fun and enriching to m eet people from around the world. People are using short term rentals all around the world. It is part th e "share economy." The direct interaction with people from foreign countries is a way to get to know another culture in an authenti c manner, promoting understanding and tolerance. Again, in addition to allowing single-family parcels rent out their guest houses short-term, please at least allow duplex owners to rent small units, as well. Don’t cha nge the current ordinance, which could put those who currently count on that income into a bad or unpredictable position. Why do that to your long term, hard- working residents? Why face the potential to put your l ong time residents in a situation where they, too, need subsidized housing or have to move out of town? People deserve to age in place. They dese rve to not be forced to move if th ey have struggled to keep a home and been a good citizen. They deserve to take advantage of this potential when it doesn’t hurt anyone else! Thank you very much for taking the time to read this em ail and consider this option. It would make such a difference! Sincerely, Michele Perrone Santa Monica Resident since 1991 Santa Monica Homeowner since 1997 310-600-3838 Item 7-A 06/13/17 2 of 7 Item 7-A 06/13/17 1 Vernice Hankins From:Council Mailbox Sent:Monday, June 12, 2017 4:47 PM To:Ted Winterer; Gleam Davis; Pam OCo nnor; Sue Himmelrich; Terry O’Day; Councilmember Kevin McKeown; Tony Vazquez Cc:councilmtgitems Subject:FW: Short term rentals Council ‐    Please  see  the  email  below  regarding  short  term  rentals.    Thank  you,    Stephanie       From: Studio  RoJa  [mailto:roja57@earthlink.net]   Sent: Friday, June  9, 2017  8:18  PM   To: Council  Mailbox  <Council.Mailbox@SMGOV.NET>  Subject: Short  term  rentals   Dear  Council  Members,    I  am  writing  to  address  the  issue  you  will  be  discussing  at  the  next  council  meeting  regarding  Accessory  Dwelling  Units.  I   am  currently  renting  my  converted  garage/granny  unit  (converted  in  the  1940’s) and  listing  it  on  Airbnb.  I’ve  lived  in   Santa  Monica  for  33  years  and  am  a  Los  Angeles  nativ e.      I  hope  you  will  not  eliminate  my  ability  to  rent  through  Airbnb.  I’ve  been  doing  for  the  past  8  months  and  it  has  been  an   amazing  experience  and  here’s  why: 1. The  income  it  generates  has  helped  me  as  a  single  mom  stay  in  my  home  and  that’s  no  lie!  2. I’ve  rented  my  place  to  the  nicest  people  from  all  over  the  world  and  for  whom  I’ve  been  able  to  share  my   knowledge  of  the  city  and  everything  in  it.  I  stayed  at  an  Airbnb  in  Turkey  and  it  was  so  great  to  interact  with  my   Turkish  host  and  learn  about  their  cul ture.  3. I’ve  rented  to  many  grandparents  who  are  visiting  their  kids  and  grandkids  in  Santa  Monica   4. I’ve  rented  to  visiting  professors  who  have  had  conferences  at  UCLA  and  The  Getty   5. I’ve  rented  to  the  relatives  of  my  neighbors  who  live  on  my  block   6. I’ve  rented  to  many  foreign  students  who  told  me  they  appreciated  my  guest  house  because  they  can’t  afford   the  high  cost  of  Santa  Monica  hotels   If  you  change  the  rules  and  if  you  only  let  me  rent  my  unit  to  a  long  term  tenant  then  I  will  probably  charge  a  high   monthly  rent  and  it  will  probably  be  rented  to  a  well  off  Santa  Monica/Venice  Tech  worker.      With  those  two  alternatives  of  short  and  long ‐term  re ntal, which  do  you  think  is  the  better  one?  The  many  people  I’ve   met  who  are  renting  on  Airbnb  are  not  money  grubbing  landlords  but  thoughtful  homeowners  trying  to  make  ends  meet   in  this  difficult  economy.    Item 7-A 06/13/17 3 of 7 Item 7-A 06/13/17 2 Thank  you  for  your  time!    Sincerely     Jami  Miyamoto   310 ‐399 ‐3615 Item 7-A 06/13/17 4 of 7 Item 7-A 06/13/17 1 Vernice Hankins From:Council Mailbox Sent:Tuesday, June 13, 2017 9:52 AM To:councilmtgitems Subject:FW: Item #7     From: David  Auch  [mailto:dwauch@gmail.com]   Sent: Tuesday, June  13, 2017  9:46  AM   To: Ted  Winterer  <otedo@aol.com>; Himmelrich  Sue  <sue.himmelrich@gmail.com>; Kevin  McKeown  Fwd   <kevin@mckeown.net>; Gleam  Davis  <Gleam.Davis@SMGOV.NET>; Tony  Vazquez  <Tony.Vazquez@SMGOV.NET>; Pam   OConnor  <Pam.OConnor@SMGOV.NET>; Terry  O’Day  <Terry.Oday@smgov.net>; Council  Mailbox   <Council.Mailbox@SMGOV.NET>  Cc: Santa  Monica  City  Manager's  Office  <manager.mailbox@SMGOV.NET>; Clerk  Mailbox   <Clerk.Mailbox@SMGOV.NET>; Marlow  Mary  <mmarlow7@icloud.com>; Michele  Perrone  <micheleperrone@me.com>  Subject: Re: It em  #7   Dear Mayor Winterer and City Council. I urge you to please support limited, smart expansion of short-term rentals for current small, owner-occupied properties. Done thoughtfully and with guidance, care and monitoring, short term rentals can: 1) help current and long-time resident s and seniors remain in our community 2) help us earn a decent income. Santa Monica and LA have become very expensive, especially over the past 5-8 years. Short term rentals can help overc ome the rising cost of living in our community 3) help maintain the character of Santa Monica. As someone who lives in Ocean Park next to a new mcMansion at Ocean Park and 5th, I see first hand the imp act of current market forces. This new, very large home replaced two rentals on a small lo t, and the developer scored a quick and sizable prof it. Short term rental rules can be designed to promote reus e and refurbishment of existing building. I could afford to clean up my existing guest house. And as an owner living on the pr operty, tenants would be ve ry carefully screened and meticulously monitored. Thank you for your consideration of this important matter. David Auch 2532 5th Street On Jun 11, 2017, at 3:31 PM, Michele Perrone <micheleperrone@me.com > wrote: Honorable Mayor Winterer and City Council Members, I understand you are discussing short-term rentals th is Tuesday, which looks to be an effort to further limit the possible scenarios where it can be used. I sincerely hope you do not do that. Item 7-A 06/13/17 5 of 7 Item 7-A 06/13/17 2 Rather, please take a second look at the impact s, most especially how the current ordinance affects an often-forgotten demographic in Santa Monica: middle-class, cl ose to retirement and retired homeowners. I know we are small groups, but, we are here. Many pe ople, lost their life- savings in the crash of 2008. Many are still hanging on by a thread, especially in these 3 demographics. Renting out a small guest house or studio apartment short term could their saving grace. It could make the difference whether many of us can can stay in our homes, age in place, or, have to move from a community we’ve beco me deeply connected to, and have grown to love. How can this be good for Santa Monica, the city that is always looking for housing, especially affordable? It could be assumed that some of th ese same people, if forced to leave their homes, could be in need of subsidized housing, putti ng additional pressure on the housing market. The same people who have contributed via taxes, community involvement or just being a good neighbor. So, while the city is tr ying to create ways for people to get affordable housing you are be creating a further need by not allowing these pa rticular homeowners to use the benefit of a short-term rental on their own pr operty, which they work very hard to keep and keep up. I must believe you can see this. Most residents naturally agree that short-term rentals are bad for the community when in apartment buildings and/or when the owner doe s not live on the property. But, there are some instances it is very beneficial to your reside nts, the neighborhood and Sa nta Monica itself. The current ordinance allows short-term on single family properties with guest houses, again, a saving grace for many people. Why not at least mi mic what is currently allowed on single family parcels in a duplex parcel? Guests houses usua lly only have 1 bedroom or less, so you could make this a condition. Duplexes like this are sc arce in Santa Monica and it would have minimal, to zero, net impact on neighborhoods. Overall, one could easily argue there are more plusses than minuses in allowing short-term rentals of a duplex, and maybe even in triplexes, if small and only one of the 3 units. If a blanket law permitting duplexes is unpalatable to the c ity, how about limiting it to 55 and older? 2 guests? Single parent with one child? And, ag ain, what about only 1 be droom or less? Thus, lessening any perceived impact on the rental market. Here are some the reasons, I believe, it would be beneficial to the community: 1) Keeping the character of the neighborhood . This is huge. As homes and properties are sold, they are usually replaced by maximum sized ho mes and condominium projects. In multi-family neighborhoods, like Ocean Park, old houses are being torn down and replaced by 3 unit condo projects, completely built out. Many people are complaining a bout it. And, as these high-end projects come in the property values and price of surrounding rentals goes up. 2) As mentioned, homeowners over the age of 55, who are close or at retirement age, need the extra income to stay here and retire in place. Income goes up very slowly, if at all, in this age bracket. Since the crash of 2008 prices have gone up exponen tially, while property and sales taxes continue to rise. This is unlikely to stop. Money that used to afford a comfortable lifestyle is quickly run through, making it hard to make ends meet. The crash of 2008 hit everyone hard, and after a certain age it is very hard to repl enish what one lost. Allowing these residents to home-share would help keep a diverse ag e group in the neighborhoods, while having n o impact on the rental markets, since they are not under rent control in the first place. Item 7-A 06/13/17 6 of 7 Item 7-A 06/13/17 3 With a landlord living there, guests are not lik ely to disturb the qui et of any neighborhood. Limiting it to 2 guests also makes it very unlikely there will be a disturbance. And, owners being there will not tolerate it. 3) Additional revenue for the city. The city receives a high tax from the short-term rental platform. It was mentioned in a meeting with Da vid Martin, and his staff members, one of the negative impacts on the community is people aren’t using our school s. This might help make up for it? 4) Makes Santa Monica affordable to vi sit, and makes Santa Monica look good ! It contributes to tourist do llars while giving a guest an auth entic experience of life here, and, a good impression of Santa Monica. Who of you has stayed in an airbnb when traveling. It is a special experience. 5) It is fun and enriching to m eet people from around the world. People are using short term rentals all around the world. It is part the "share economy." The direct interaction with people from foreign countries is a way to get to know a nother culture in an authentic manner, promoting understanding and tolerance. Again, in addition to allowing singl e-family parcels rent out their guest houses short-term, please at least allow duplex owners to rent small units , as well. Don’t change the current ordinance, which could put those who currently count on that income into a bad or unpredictable position. Why do that to your long term, hard-wor king residents? Why face the potential to put your long time residents in a situation where they, too, need subsidized housing or have to move out of town? People deserve to age in place. They deserve to not be forced to m ove if they have struggled to keep a home and been a good citizen. They deserve to take advantage of this potential when it doesn’t hurt anyone else! Thank you very much for taking the time to read this email and consider this option. It would make such a difference! Sincerely, Michele Perrone Santa Monica Resident since 1991 Santa Monica Homeowner since 1997 310-600-3838 Item 7-A 06/13/17 7 of 7 Item 7-A 06/13/17