SR 06-13-2017 7A
Ci ty C ouncil
Report
City Council Meeting : June 13, 2017
Agenda Item: 7.A
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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
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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
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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.
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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
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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.
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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
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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.
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Thank you for your time!
Sincerely
Jami Miyamoto
310 ‐399 ‐3615
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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.
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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
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