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R114811 City Council Meeting: October 25, 2022 Santa Monica, California RESOLUTION NUMBER 11481 (CCS) (City Council Series) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA ESTABLISHING A HOME-SHARE LEGALIZATION PROGRAM WHEREAS, on May 12, 2015, the Council adopted Ordinance 2484 (CCS), adding Santa Monica Municipal Code Chapter 6.20, Home -Sharing and Vacation Rentals, to clarify the City’s long-standing prohibition of renting any dwelling unit, in whole or in part, for a period of thirty consecutive days or less for exclusive transient use , or “vacation rentals”, and to relax that prohibition by allowing renting of one or more bedrooms in a dwelling unit that is the primary residence of the host for a period of thirty consecutive days or less, while the host lives on site, in the dwelling unit, throughout the visitors’ stay, or “home-sharing” (the “Home-Sharing Ordinance”); and WHEREAS, on January 24, 2017, Council adopted Ordinance 2535 (CCS) to amend the Home-Sharing Ordinance to clarify certain definitions and, in response to portions of the ordinance challenged by home -sharing platforms, to limit the obligations imposed on those platforms; and WHEREAS, on June 27, 2017, Council adopted Ordinance 2547 (CCS), to amend the Home-Sharing Ordinance to treat accessory dwelling units (“ADUs”) that received building permits on or after March 31, 2017 as separate dwelling units for the purpose of defining home-sharing activity; and WHEREAS, on September 24, 2019, Council adopted Ordinance 2616 (CCS), to further amend the Home-Sharing Ordinance to strengthen regulation of home-sharing and vacation rentals; and DocuSign Envelope ID: 97D93EF9-21B6-43CF-BD64-461DF5155DD2 2 WHEREAS, permitting regulated home-sharing while prohibiting vacation rentals strikes an important balance: allowing residents to supplement their income through home-sharing and providing home-share visitors with potentially more affordable accommodations, while deterring landlords from evading rent control laws, evicting tenants, and converting residential units into de facto hostels or hotels, thus removing needed permanent housing from the market while at the same time changing the character of and undermining community ties in residential neighborhoods ; and WHEREAS, Santa Monica Municipal Code Section 9.21.020 provides that accessory structures shall be considered part of the principal building if the accessory building is located less than 6 feet from the principal building or if connected to it by fully enclosed space; and WHEREAS, Santa Monica Municipal Code Section 9.21.020 prohibits an accessory structure from containing a shower or tub enclosure; and WHEREAS, the Santa Monica Municipal Code previously required certain property owners to record deed restrictions which, in part, prohibited using accessory structures that were not accessory dwelling units as rented rooms or sleeping quarters; and WHEREAS, since September 2020, the City has denied approximately applications for renewal of home-share licenses for properties that were previously approved for home-share due to changes in regulations in the home-share regulations or because the permits were previously erroneously issued; and WHEREAS, on June 8, 2021, City Council directed staff to return with proposed amendments to Santa Monica Municipal Code Chapter 6.20, the City’s home-sharing DocuSign Envelope ID: 97D93EF9-21B6-43CF-BD64-461DF5155DD2 3 ordinance, to allow the home-sharing of detached accessory buildings located more than six feet from the main building occupied by the host; and WHEREAS, amendments to Santa Monica Municipal Code Section 9.21.020 are necessary for consistency with Council direction; and WHEREAS, amendments to Santa Monica Municipal Code Chapter 6.20 and Section 9.21.020 remain pending; and WHEREAS, the City Council now desires to establish a home-share legalization program that would allow Council to authorize previously licensed home-share operators to receive a temporary, conditional license to resume operations pending updates to the Home-Share Ordinance, as long as the proposed home-share units do not have any outstanding unpermitted work in order to protect the health and safety of home -sharing guests. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES RESOLVE AS FOLLOWS: SECTION 1. Establishment of Program. The City Council hereby establishes a Home-Share Legalization Program in accordance with the terms and conditions set forth herein. SECTION 2. Authorization to Issue Temporary Permits; Eligibility. The City Manager, or designee, is hereby authorized to issue temporary, conditional home-sharing permits if applicant satisfies all of the following: A. The City previously issued the applicant a home-share permit for the dwelling unit in accordance with Chapter 6.20. DocuSign Envelope ID: 97D93EF9-21B6-43CF-BD64-461DF5155DD2 4 B. The City subsequently denied the applicant’s request to renew the home- share permit due to changes in the City’s home-share regulations or because the permit was previously erroneously issued. C. The building or structure applicant proposes to use for home-sharing activities does not have any outstanding code violations for unpermitted work. To satisfy this condition, applicants must obtain building permits and final inspection approval for the proposed building or structure to ensure that spaces meet all health and safety requirements for overnight occupancy. SECTION 3. Applicability of home-share and related regulations. A. Notwithstanding anything to the contrary in the Santa Monica Municipal Code or applicable administrative regulations, the following provisions shall not apply to permittees receiving permits in accordance with the Home-Sharing Legalization Program: 1. Requirement that the accessory structure being proposed for home- share is within 6 feet of the primary residence in accordance with Santa Monica Municipal Code Sections 6.20.010(c) and 9.21.020(A). 2. Prohibition against accessory structures containing a shower or tub enclosure in accordance with 9.21.020(A). 3. Requirement that an ADU receive a building permit prior to March 31, 2017 to allow home-sharing by the long-term resident of the principal dwelling unit in accordance with Santa Monica Municipal Code Section 6.20 .010(c). B. Provisions in real property deed restrictions in favor of the City that are recorded against a permittee’s property and prohibit use of an accessory structure as a DocuSign Envelope ID: 97D93EF9-21B6-43CF-BD64-461DF5155DD2 5 rented room or sleeping quarters shall not be enforced against permittees with a valid permit issued pursuant to the Home-Share Legalization Program. C. Except as provided in this Section 3, home-sharing operations conducted pursuant to a permit issued in accordance with the Home -Share Legalization Program are subject to all applicable law and accompanying administrative regulations. SECTION 4. Term. Permits issued pursuant to shall expire on the earlier of : 1) effective date of amendments to Santa Monica Municipal Code Chapter 6.20 and Section 9.21.020 as described herein; or 2) June 30, 2023, unless otherwise terminated earlier in accordance with the terms of the permit. SECTION 5. The City Clerk shall certify to the adoption of this Resolution, and thenceforth and thereafter the same shall be in full force and effect. APPROVED AS TO FORM: _________________________ DOUGLAS SLOAN City Attorney DocuSign Envelope ID: 97D93EF9-21B6-43CF-BD64-461DF5155DD2 Adopted and approved this 25th day of October 2022. ____________________________ Kristin McCowan, Mayor Pro Tem I, Denise Anderson-Warren, City Clerk of the City of Santa Monica, do hereby certify that Resolution No. 11481 (CCS) was duly adopted at a meeting of the Santa Monica City Council held on the 25th day of October 2022, by the following vote: AYES: Councilmembers Brock, Davis, De la Torre, Negrete, Parra, Mayor Pro Tem McCowan NOES: None ABSENT: Mayor Himmelrich ATTEST: _____________________________________ Denise Anderson-Warren, City Clerk DocuSign Envelope ID: 97D93EF9-21B6-43CF-BD64-461DF5155DD2