O26161
City Council Meeting: September 24, 2019 Santa Monica, California
ORDINANCE NUMBER 2616 (CCS)
(City Council Series)
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
SANTA MONICA AMENDING AND REVISING CHAPTER 6.20 OF THE
SANTA MONICA MUNICIPAL CODE TO STRENGTHEN REGULATION OF
HOME-SHARING AND VACATION RENTALS
WHEREAS, a central and significant goal for the City is preservation of its
housing stock and preserving the quality and character of residential
neighborhoods; and
WHEREAS, Santa Monica places a high value on cohesive and active
residential neighborhoods and the diverse population that resides therein; and
WHEREAS, the City must preserve its available housing stock and the
character and charm that result, in part, from cultural, ethnic, and economic diversity
of its resident population, as a key factor in economic growth; and
WHEREAS, Santa Monica's natural beauty, its charming residential
communities, its vibrant commercial quarters and its world-class amenities have
drawn visitors from around the United States and around the world; and
WHEREAS, there is within the City a diverse array of short-term rentals for
visitors, including, hotels, motels, bed and breakfasts, vacation rentals and home
sharing, not all of which are lawful; and
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WHEREAS, operations of vacation rentals, where residents rent entire units
to visitors and are not present during the visitors' stays, frequently disrupt the
quietude and residential character of the neighborhoods and adversely impact the
community; and
WHEREAS, home-sharing does not create the same adverse impacts as
unsupervised vacation rentals when the home-shares are hosted by the owner or a
long-term resident who lives on site and is present to introduce guests to the City’s
neighborhoods and regulate guests’ behavior; and
WHEREAS, while the City recognizes that home -sharing activities can be
conducted in harmony with surrounding uses, those activities must be regulated to ensure
that the home-sharing activities do not threaten or harm the public health, safety, or
general welfare; and
WHEREAS, on May 12, 2015, the City Council adopted Ordinance Number
2484, which added Chapter 6.20 to the Santa Monica Municipal Code and thereby
preserved the City’s prohibition on vacation rentals, but authorized “home-sharing,”
whereby residents host visitors in their homes for short periods of stay, for
compensation, while the resident host remains present throughout the visitors ’ stay; and
WHEREAS, on January 24, 2017, the City Council adopted Ordinance Number
2535CCS, which amended Chapter 6.20 to clarify its application to hosting platforms;
and
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WHEREAS, on June 27, 2017, the City Council adopted Ordinance Number
2547CCS, which further amended Chapter 6.20 to address the use of accessory
dwelling units that received their building permits after March 31, 2017 as home -shares;
and
WHEREAS, in the time since Chapter 6.20 was first added, the City has issued
over 450 business licenses authorizing home-sharing; and
WHEREAS, the City is investigating approximately 30% of the licensed home -
share hosts as operating vacation rental businesses under the guise of home-sharing;
and
WHEREAS, the City strives to strike a balance between preserving the City’s
available housing stock, protecting the residential character of neighborhoods, and
preventing home-shares from turning into de facto hostels and hotels, while at the same
time permitting owners and long-term residents to host guests as part of a home-share;
and;
WHEREAS, the costs of regulating and enforcing the requirements of the home -
sharing program are significan t and should be borne, at least in part, by those benefitting
from their participation in the home-sharing program; and
WHEREAS, the City Council now wishes to amend Chapter 6.20 to clarify
existing regulations and to implement various public health, safety, and general welfare
regulations governing home-sharing.
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NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA
DOES HEREBY ORDAIN AS FOLLOWS:
SECTION 1. Santa Monica Mun icipal Code Chapter 6.20 is hereby amended to
read as follows:
6.20.010 Definitions.
For purposes of this Chapter, the following words or phrases shall have the following
meanings:
(a) Bedroom. Any habitable space in a dwelling unit other than a kitchen or
living room that is intended for or capable of being used for sleeping, is at least 70 square
feet in area, is separated from other rooms by a door, and is accessible to a bathroom
without crossing another bedroom.
(b) Booking Transaction. Any reservation or payment service provided by a
person who facilitates a home-sharing or vacation rental transaction between a
prospective visitor and a host.
(c) Dwelling Unit. One or more rooms designed, occupied, or intended for
occupancy as separate living quarters, with full cooking, sleeping, and bathroom facilities
for the exclusive use of a single household. A dwelling unit includes a single ‐family
residence, and each unit of an apartment, duplex, or multiple dwelling struct ure designed
as a separate habitation for one or more persons, but does not include units located within
City-approved hotels, motels, and bed and breakfasts, as defined in section
9.51.030(B)(15). An accessory dwelling unit, as defined by section 9.31.300, that
received its building permit on or after March 31, 2017, constitutes a separate dwelling
unit for the purpose of this Chapter.
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(d) Eligible Resident. Any natural person who (1) is either (i) a long -term
resident of a dwelling unit or (ii) an owner of a dwelling unit and (2) uses that dwelling unit
as his or her primary residence.
(e) Home-Sharing. Renting for a period of 30 consecutive days or less, one
or more bedrooms in a dwelling unit that is the primary residence of the host, while th e
host lives on-site, in the dwelling unit, throughout the visitors’ stay. A dwelling unit rented
out for home-sharing is referred to as a “home-share.”
(f) Host. Any natural person who is an eligible resident of a dwelling unit
offered for use as a home-share.
(g) Hosting Platform. A person who participates in the home-sharing or
vacation rental business by collecting or receiving a fee, directly or indirectly through an
agent or intermediary, for conducting a booking transaction using any medium of
facilitation.
(h) Lives On Site. Maintains a physical presence in the dwelling unit,
including, but not limited to, sleeping overnight, preparing and eating meals, and engaging
in other activities in the dwelling unit, of the type typically maintained by a natural person
in the dwelling unit in which he or she is an eligible resident.
(i) Long-Term Resident. Any natural person who, as of the date a home -
share application is submitted pursuant to Section 6.20.021: (1) has occupied the dwelling
unit that is the subject of the home -share application as his or her primary residence for
at least the prior 12 months; and (2) has either (i) if the natural person is a tenant,
subtenant, lessee, or sublessee, a written rental housing agreement for the dwelling unit
for a period of 12 months or more after the date the home-share application is submitted
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or (ii) if the natural person is not a tenant, subtenant, lessee, or sublessee, written
documentation establishing that the natural person will reside at the dwelling unit for a
period of 12 months or more after the date the home-share application is submitted.
(j) Owner. Any person who, alone or with others, has legal or equitable title
to a dwelling unit. A person whose interest in a dwelling unit is solely that of a tenant,
subtenant, lessee, or sublessee under an oral or written rental housing agre ement shall
not be considered an owner.
(k) Person. Any natural person, joint venture, joint stock company, partnership,
association, club, company, corporation, business trust, or organization of any kind.
(l) Primary Residence. The usual place of return for housing of an owner or
long-term resident as documented by at least two of the following: motor vehicle
registration, driver’s license, California state identification card, voter registration, income
tax return, property tax bill, or a utility bill. A person can only have one primary resid ence.
(m) Vacation Rental. Renting for a period of 30 consecutive days or less any
dwelling unit, in whole or in part, for exclusive transient use. Exclusive transient use shall
mean that no eligible resident of the dwelling unit lives on -site, in the dwelling unit,
throughout any visitor’s stay. Rentals of units located within City-approved hotels, motels,
and bed and breakfasts shall not be considered vacation rentals.
(n) Visitor. A natural person who rents a home-share or vacation rental.
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6.20.020 Home-sharing authorization.
(a) Notwithstanding any provision of this Code to the contrary, home -sharing
shall be authorized in the City, provided that the host complies with each of the following
requirements:
(1) Obtains and maintains at all times a City home-sharing permit issued
pursuant to this Chapter and a business license issued pursuant to Chapter 6.04.
(2) Operates the home-sharing activity in compliance with all permit
conditions for home-sharing as set forth in Section 6.20.021 and any regulations
promulgated pursuant to this Chapter.
(3) Collects and remits Transient Occupancy Tax (“TOT”), in
coordination with any hosting platform if utilized, to the City and complies with all
City TOT requirements as set forth in Chapter 6.68 of this Code.
(4) Takes responsibility for and actively prevents any nuisance activities
that may take place as a result of home-sharing activities.
(5) Ensures that basic health and safety features are provided, including
fire extinguishers, smoke detectors, and carbon monoxide detectors.
(6) Does not book or rent to more than two groups of visitors for any
given date, whether the visitors within the groups are related to one another or not.
(7) Limits the occupancy of the home-share (including the host, all other
eligible residents, and all visitors) to the lesser of (i) 10 persons; (ii) one person per
200 square feet of the dwelling unit; or (iii) two persons (excluding minor children)
per bedroom.
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(8) Limits visitors to (i) no more than one vehicle per bedroom rented as
part of the home-share or (ii) if the home-share is located in a preferential parking
zone, no more than two vehicles that shall be required to use the visitor permits
available under Chapter 3.08 of this Code. A visitor’s vehicle may be parked on
site, to the extent available, or in legal street parking.
(9) Maintains liability insurance to cover home -sharing with minimum
limits of not less than $500,000 or conducts each home-sharing transaction
through a hosting platform that provides equal or greater coverage.
(10) Complies with Section 6.20.022 governing advertisements of home-
shares.
(11) Complies with all applicable laws, including the noise limitations set
forth in Chapter 4.12 of this Code, and all health, safety, building, fire protection,
and rent control laws.
(12) Complies with all regulations promulgated pursuant to this Chapter.
(b) All hosts and their respective properties, authorized by the City for home-
sharing purposes pursuant to this Section, shall be listed on a registry created by the City
and updated periodically by the City. The City shall publish the registry, and a copy shall
be sent electronically to any person upon request.
(c) If any provision of this Chapter conflicts with any provision of the Zoning
Ordinance codified in Article IX of this Code, the terms of this Chapter shall prevail with
respect to interpretation and enforcement of this Chapter.
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6.20.021 Home-sharing permit conditions.
(a) Application required. To obtain a home-sharing permit for a dwelling unit,
a host shall submit an application on a form to be provided by the City and signed by the
host under penalty of perjury. The application for the home-sharing permit shall include
the following information:
(1) Address of the proposed home-share;
(2) Type of dwelling unit;
(3) Whether the applicant is an owner or long-term resident;
(4) If applicable, proof that the applicant is a long-term resident;
(5) Proof that the proposed home-share is the primary residence of the
applicant;
(6) The name and contact information for any other eligible residents of
the proposed home-share who will be serving as hosts, together with proof that
each identified host is an eligible resident of the proposed home -share;
(7) The square footage of the proposed home -share;
(8) The number of bedrooms in the proposed home-share;
(9) The maximum number of visitors per night, which shall not exceed
the maximum permitted in accordance with Section 6.20.020(a)(6);
(10) Proof of insurance;
(11) Certification that the host will comply with all provisions of this
Chapter and all regulations promulgated pursuant to this Chapter or be subject to
the revocation of his or her home-sharing permit and business license; and
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(12) Any other information required by regulations promulgated pursuant
to this Chapter.
(b) Application Fee. The initial application and each renewal application for a
home-sharing permit shall be accompanied by an application fee to be established by
resolution by the City Council.
(c) Duty to Amend Application. If there are any material changes to the
information submitted on a home-sharing permit application, the host shall submit an
amended application on a form to be provided by the City and signed by the host under
penalty of perjury within 30 days of any such changes. For the purposes of this Section,
any change to the information required to be included in a home-sharing permit
application by subsection (a) of this Section shall constitute a material change. Failure to
submit an amended home-sharing permit application may result in revocation of the
home-sharing permit and business license.
(e) Term of Permit. Notwithstanding any provision of this Code to the contrary,
any home-sharing permit shall be effective for same period as the term of the host’s
business license.
(f) Renewal of Permit. A host may renew his or her home-sharing permit by
submitting a completed permit renewal application on a form to be provided by the City
and signed by the host under penalty of perjury. The permit renewal application shall
include all of the information required by subsection (a) of this Section.
(g) No Transfer or Assignment. A home-sharing permit may not be assigned
or transferred to any other person.
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6.20.022 Advertisements for home-sharing.
(a) The host shall include the following information in any advertisement for
home-sharing:
(1) The business license number issued by the City;
(2) That the host lives on site and will be present in the home -share
throughout the visitor’s stay;
(3) The permitted occupancy of the home-share as specified in the
home-sharing permit application;
(4) The permitted number of visitor vehicles, in accordance with Section
6.20.020(a)(8);
(5) That the home-share cannot be booked or rented to more than two
groups of visitors for any given date, whether the visitors within the groups are
related to one another or not; and
(6) Any other information required by regulations promulgated pursuant to
this Chapter.
(b) A host is limited to posting no more than two listings for the home-share on
each hosting platform or other media outlet. If a host posts a listing for the home -share
on multiple hosting platforms or other media outlets, only two listings may be booked for
any given date.
(c) No advertisements regarding the availability of a dwelling unit for home -
sharing shall be posted in or on any exterior area of the dwelling unit, any exterior area
of any other dwelling unit on the same lot, or the lot on which the dwelling unit is located.
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6.20.030 Prohibitions.
(a) No person shall undertake, maintain, authorize, aid, facilitate or advertise
any vacation rental or any home-sharing that does not comply with this Chapter. For the
purposes of this section only, person does not include a hosting platform.
(b) No host may be the host for more than one home -share.
6.20.050 Hosting platform responsibilities.
(a) Hosting platforms shall be responsible for collecting all applicable TOTs and
remitting the same to the City. The hosting platform shall be co nsidered an agent of the
host for purposes of TOT collections and remittance responsibilities as set forth in
Chapter 6.68 of this Code.
(b) Subject to applicable laws, hosting platforms shall disclose to the City on a
regular basis each home-sharing and vacation rental listing located in the City, the names
of the persons responsible for each such listing, the address of each such listing, th e
length of stay for each such listing and the price paid for each stay.
(c) Hosting platforms shall not complete any booking transaction for any
residential property or unit unless it is listed on the City’s registry created under Section
6.20.020 subsection (b), at the time the hosting platform receives a fee for the booking
transaction.
(d) Hosting platforms shall not collect or receive a fee, directly or indirectly
through an agent or intermediary, for facilitating or providing services ancillary to a
vacation rental or unregistered home-share, including, but not limited to, insurance,
concierge services, catering, restaurant bookings, tours, guide services, entertainment,
cleaning, property management, or maintenance of the residential property or unit.
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(e) Safe Harbor. A hosting platform operating exclusively on the Internet, which
operates in compliance with subsections (a), (b), (c), and (d) above, shall be presumed
to be in compliance with this Chapter, except that the hosting platform remains
responsible for compliance with the administrative subpoena provisions of this Chapter.
(f) The provisions of this Section shall be interpreted in accordance with
otherwise applicable State and Federal law(s) and will not apply if determined by the City
to be in violation of, or preempted by, any such law(s).
6.20.080 Regulations.
The City Manager or designee may promulgate regulations, which may include,
but are not limited to, permit conditions, reporting requirements, inspection frequencies,
enforcement procedures, additional advertising restrictions, disclosure requirements,
administrative subpoena procedures or additional insurance requirements, to implement
the provisions of this Chapter. No person shall fail to comply with any such regulation.
6.20.090 Fees.
The City Council may establish and amend by resolution all fees and charges as
may be necessary to effectuate the purpose of this Chapter, including, but not limited to,
the application fee required by Section 6.20.021.
6.20.100 Enforcement.
(a) Any host violating any provision of this Chapter, any person other than a
hosting platform who facilitates or attempts to facilitate a violation of this Chapter, or a
hosting platform that violates its obligations under Section 6.20.050, shall be guilty of an
infraction, which shall be punishable by a fine not exceeding $750, or a misdemeanor,
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which shall be punishable by a fine not exceeding $1,000, or by imprisonment in the
County Jail for a period not exceeding six months or by both such fine and imprisonment.
(b) Any person convicted of violating any provision of this Chapter in a criminal
case or found to be in violation of this Chapter in a civil or administrative case brought by
a law enforcement agency shall be ordered to reimburse the City and other participating
law enforcement agencies their full investigative costs, pay all back TOTs, and remit all
illegally obtained rental revenue to the City so that it may be returned to the home-sharing
visitors or used to compensate victims of illegal short-term rental activities.
(c) Any host who violates any provision of this Chapter, any person other than
a hosting platform who facilitates or attempts to facilitate a violation of this Chapter, or a
hosting platform that violates its obligations under Section 6.20.050, shall be subject to
administrative fines and administrative penalties pursuant to Chapters 1.09 and 1.10 of
this Code.
(d) Any interested person may seek an injunction or other relief to prevent or
remedy violations of this Chapter. The prevailing party in such an action shall be entitled
to recover reasonable costs and attorney’s fees.
(e) The City may issue and serve administrative subpoenas as necessary to
obtain specific information regarding home -sharing and vacation rental listings located in
the City, including, but not limited to, the names of the persons responsible for each such
listing, the address of each such listing, the length of stay for each such listing and the
price paid for each stay, to determine whether the home -sharing and vacation rental
listings comply with this Chapter. Any subpoena issued pursuant to this section shall not
require the production of information sooner than 30 days from the date of service. A
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person that has been served with an administrative subpoena may seek judicial review
during that 30 day period.
(f) The remedies provided in this Section are not exclusive, and nothing in this
Section shall preclude the use or application of any other remedies, penalties or
procedures established by law.
SECTION 2. 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 3. 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 4. 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
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shall become effective 30 days from its adoption, and shall apply to all home-shares,
including those operating under business licenses obtained prior to the effective
date of this Ordinance.
APPROVED AS TO FORM:
_______________________
LANE DILG
City Attorney
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Approved and adopted this 24th day of September, 2019.
_____________________________
G l e a m D a v i s , M a y o r
State of California )
County of Los Angeles ) ss.
City of Santa Monica )
I, Denise Anderson-Warren, City Clerk of the City of Santa Monica, do
hereby certify that the foregoing Ordinance No. 2616 (CCS) had its introduction
on September 10, 2019, and was adopted at the Santa Monica City Council
meeting held on September 24, 2019, by the following vote:
AYES: Councilmembers Morena, McKeown, Himmelrich, Winterer, Jara,
Mayor Pro Tem O’Day, Mayor Davis
NOES: None
ABSENT: None
ATTEST:
_____________________________________ _________________
Denise Anderson-Warren, City Clerk Date
A summary of Ordinance No. 2616 (CCS) was duly published pursuant to
California Government Code Section 40806.
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10/23/2019