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SR 05-09-2023 10E 400-004-19 / 1101-010 City Council Report City Council Meeting: May 9, 2023 Agenda Item: 10.E 1 of 6 To: Mayor and City Council From: David Martin, Director, City Planning Subject: Introduction and First Reading of an Ordinance to Amend Santa Monica Municipal Code Chapter 6.20, Home-Sharing and Vacation Rentals, to Authorize Home-Sharing in Certain Qualifying Accessory Structures and Incorporate a Home-Sharing Legalization Program Recommended Action Staff recommends that City Council: 1. Adopt a finding of no possibility of significant effect pursuant to Section 15061(b)(3) (Common Sense Exemption) of the California Environmental Quality Act (CEQA) Guidelines set forth in “Environmental Analysis”; and 2. Introduce for first reading an ordinance amending Santa Monica Municipal Code Chapter 6.20, Home-Sharing and Vacation Rentals, to authorize home-sharing in certain accessory structures and incorporate a home-sharing legalization program. Summary On June 8, 2021, City Council directed staff to return with proposed amendments to SMMC Chapter 6.20, the City’s home-sharing ordinance, to allow the home-sharing of detached accessory buildings located more than six feet from the main building occupied by the host. Amendments to SMMC Section 9.21.020 (Accessory Structures) were also identified as necessary for consistency with Council direction. On October 25, 2022, the City Council adopted Resolution 11481 (CCS) to create a special home-share legalization program to authorize previously permitted home -share operators to receive a temporary, conditional permit to resume operations pending updates to the home-share ordinance and zoning ordinance. More specifically, Council’s Resolution 11481 (CCS) establishes a limited-term program through June 30, 10.E Packet Pg. 1075 2 of 6 2023 to allow the home-sharing of certain accessory dwelling units (ADUs) and detached accessory buildings located more than six feet from the main building occupied by the host, as long as the proposed home -share units do not have any outstanding unpermitted work. The proposed ordinance contains amendments to the home-sharing ordinance (Santa Monica Municipal Code [SMMC] Chapter 6.20) that are consistent with the Council’s June 8, 2021 and October 25, 2022 actions. The companion zoning ordinance amendment (SMMC Section 9.21.020) was recently codified on April 11, 2023 as part of the Council’s approval of amendments for Phase One Housing Element program implementation. Together, these two ordinance amendments would complete the subsequent actions needed in response to Council’s earlier direction regarding the City’s home-share program whereby allowing the use of certain accessory structures more than six feet away from the main building for home-sharing and a very limited number of previously permitted home-share operators to resume operations in a manner that is consistent with zoning and home -share regulations. Background On May 12, 2015, Council adopted Ordinance 2484 (CCS) to clarify the long -standing prohibition of vacation rentals and to allow and impose regulations on home-sharing. 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. 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. 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. 10.E Packet Pg. 1076 3 of 6 On June 8, 2021, City Council directed staff to return with proposed amendments to SMMC Chapter 6.20, the City’s home-sharing ordinance, to allow the home-sharing of detached accessory buildings located more than six feet from the main building occupied by the host. Amendments to SMMC Section 9.21.020 (Accessory Structures) were also identified as necessary for consistency with Council direction. Temporary Home-Sharing Legalization Program Attachment “A” provides a link to the Council staff report that provides a detailed discussion of the key issues that serve as background to the Council’s establishment of the temporary legalization program. In summary, prior to the Council’s October 25th resolution, then-existing home-share and accessory building regulations did not provide a way for certain property owners to continue to home-share their detached structures, even though they were previously permitted by the City for home-share. The following are the conditions to qualify for the program that were established by the Council on October 25, 2022: 1. The home-share applicant must have been previously permitted by the City to home-share; 2. The home-share applicant’s request to renew their permit must have been denied by the City due to changes in home-share regulations or because the permit was previously erroneously issued; and 3. The proposed home-share unit cannot have any outstanding violations for unpermitted work. This would require homeowners to obtain building permits and final inspection approval for their home-share units to ensure that spaces are safe for overnight occupancy. The temporary home-share legalization program adopted by resolution on Octo ber 25, 2022 is in effect until June 30, 2023 and was established to allow qualified property owners to receive home-share permits while necessary code amendments are pending. The resolution also provides a pathway to incentivize previously permitted home-share operators to obtain building permits and final inspection to ensure that home -share units 10.E Packet Pg. 1077 4 of 6 meet current Building and Fire Codes and by doing so, they are eligible to obtain a home-share permit to resume their home-share operation. Since Council adopted the temporary home-share legalization program in October 2022, several eligible property owners subsequently received approval to resume home-sharing and several others are in the process of building permit review and approval to allow them to resume home-sharing. The proposed amendments would authorize the City to issue business licenses and home -sharing licenses for qualifying operators going forward. Discussion In response to Council’s direction, the proposed amendments to the City’s home -share regulations (Attachment “C”) set forth in SMMC Chapter 6.20 include the following: • Eliminate requirement that an accessory building proposed for home-sharing must be within 6 feet of the primary residence; thus allowing accessory buildings eligible for home-sharing to be located anywhere on the same property as primary residence. • Consistent with the Home-Share Legalization Program: o Limit enforcement of deed restrictions recorded against a permitee’s property that prohibit use of an accessory structure as a ren ted room or sleeping quarters when the permittee has a valid permit issued pursuant to the Home-Share Legalization Program; and o Eliminate requirement that an ADU have received a building permit prior to March 31, 2017, in order to allow home-sharing by the long-term resident of the primary dwelling when the permittee has a valid permit issued pursuant to the Home-Share Legalization Program. On April 11, 2023, the Zoning Ordinance amendments also eliminated the prohibition against accessory buildings containing a shower or a tub enclosure. The Council’s April 11, 2023 approval of the Zoning Ordinance amendment outlined above coupled with the proposed changes to SMMC Chapter 6.20 set forth in 10.E Packet Pg. 1078 5 of 6 Attachment “C” would complete the subsequent actions needed in response to Council’s earlier direction regarding the City’s home-share program. The ordinance amending SMMC Chapter 6.20 would go into effect 30 days after second reading which would be scheduled to occur prior to the June 30, 2023 expiration of the tempora ry program. Environmental Analysis The proposed amendment to SMMC Chapter 6.20 would modify regulations related to the home-sharing and would allow a very limited number of previously permitted home- share operators to apply to resume operations in a manner that is consistent with zoning regulations. The proposed amendment to SMMC Chapter 6.20 is exempt from the provisions of the California Environmental Quality Act (CEQA) pursuant to Section 15061(b)(3) of the CEQA Guidelines. Based on the evidence in the record, it can be seen with certainty that there is no possibility that the proposed changes will have a significant effect on the environment. The home-share code amendments would allow the resumption of operations in locations that were previously permitted for home-share on properties with existing dwelling units. All home-share units would need to be fully permitted and complete final inspection in order to be eligible for this program. Therefore, no further environmental review under CEQA is required. Past Council Actions Meeting Date Description 5/12/2015 (Attachment D) Ordinance 2484 – Home-sharing Ordinance 1/24/2017 (Attachment E) Ordinance 2535 – Home-sharing Ordinance update; amend definitions, limit obligations on hosting platforms 6/27/2017 (Attachment F) Ordinance 2547 – Home-sharing Ordinance update; treatment of accessory dwelling units 9/24/2019 (Attachment G) Ordinance 2616 – Strengthen regulation of home- sharing and vacation rentals 10/25/2022 (Attachment B) Resolution 11481 – Establish a special home- share legalization program to authorize previously permitted home-share operators to resume operations pending updates to the home-share ordinance and zoning ordinance 4/11/2023 (Attachment H) Zoning Ordinance amendments for Housing 10.E Packet Pg. 1079 6 of 6 Element implementation, including amendments to accessory structures Financial Impacts and Budget Actions Home-share properties are required to collect and remit the City’s Transient Occupancy Tax. If the proposed amendment results in an increase in the num ber of home-share properties, there may be an increase in tax revenues. However, some of the properties that were previously permitted for home-share before being denied continued to pay the tax. Therefore, any increase in tax revenues is anticipated to be minor. Prepared By: Roxanne Tanemori, Principal Planner Approved Forwarded to Council Attachments: A. Link to Council Action 10-25-2022 B. Homeshare Legalization Program 10-25-2022 (Res 11481) C. CDD-Ord-Home-Sharing Legalization Program 050923 D. Homeshare (Ord 2484) E. Homeshare (Ord 2535) F. Homeshare (Ord 2547) G. Homeshare (Ord 2616) H. Previously Approved Zoning Ord Amendment for Homeshare I. PowerPoint Presentation 10.E Packet Pg. 1080 Attachment A Background Adoption of a Resolution to Establish a Home-Share Legalization Program October 25, 2022 Council Meeting 10.E.a Packet Pg. 1081 Attachment: Link to Council Action 10-25-2022 (5690 : Homeshare Regulations – Permanent Ordinance Amending Chapter 6.20 (10 min)) 1 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 10.E.b Packet Pg. 1082 Attachment: Homeshare Legalization Program 10-25-2022 (Res 11481) (5690 : Homeshare Regulations – Permanent Ordinance Amending 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 10.E.b Packet Pg. 1083 Attachment: Homeshare Legalization Program 10-25-2022 (Res 11481) (5690 : Homeshare Regulations – Permanent Ordinance Amending 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 10.E.b Packet Pg. 1084 Attachment: Homeshare Legalization Program 10-25-2022 (Res 11481) (5690 : Homeshare Regulations – Permanent Ordinance Amending 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 10.E.b Packet Pg. 1085 Attachment: Homeshare Legalization Program 10-25-2022 (Res 11481) (5690 : Homeshare Regulations – Permanent Ordinance Amending 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 10.E.b Packet Pg. 1086 Attachment: Homeshare Legalization Program 10-25-2022 (Res 11481) (5690 : Homeshare Regulations – Permanent Ordinance Amending 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 10.E.b Packet Pg. 1087 Attachment: Homeshare Legalization Program 10-25-2022 (Res 11481) (5690 : Homeshare Regulations – Permanent Ordinance Amending City Council Meeting: May 9, 2023 Santa Monica, California ORDINANCE NUMBER _________ (CCS) (City Council Series) AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA AMENDING SANTA MONICA MUNICIPAL CODE CHAPTER 6.20, HOME-SHARING AND VACATION RENTALS, TO AUTHORIZE HOME-SHARING IN CERTAIN QUALIFYING ACCESSORY STRUCTURES AND INCORPORATE A HOME-SHARING 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 10.E.c Packet Pg. 1088 Attachment: CDD-Ord-Home-Sharing Legalization Program 050923 [Revision 1] (5690 : Homeshare Regulations – Permanent Ordinance 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 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 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 10.E.c Packet Pg. 1089 Attachment: CDD-Ord-Home-Sharing Legalization Program 050923 [Revision 1] (5690 : Homeshare Regulations – Permanent Ordinance 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 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 were also necessary for consistency with Council direction; and WHEREAS, until the amendments to Chapter 6.20 and Section 9.21.020 could occur, on October 25, 2022, City Council adopted a Resolution to Establish a Home- Sharing Legalization Program (“Program”) that allowed 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; WHEREAS, that Program expires on the earlier of: 1) effective date of amendments to Santa Monica Municipal Code Chapter 6.20 and Section 9.21.020; or (2) June 30, 2023; and WHEREAS, on April 11, 2023, the City Council adopted Ordinance Number 2742 (CCS), amending the text of the Zoning Ordinance to, among other things, eliminate the prohibition on accessory structures from containing a shower or tub enclosure, which is expected to become effective May 11, 2023; and WHEREAS, Council now seeks to codify the Program through amendments to Chapter 6.20 prior to the June 30, 2023, expiration date. 10.E.c Packet Pg. 1090 Attachment: CDD-Ord-Home-Sharing Legalization Program 050923 [Revision 1] (5690 : Homeshare Regulations – Permanent Ordinance NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES HEREBY ORDAIN AS FOLLOWS: SECTION 1. Santa Monica Municipal Code Section 6.20.010 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) Accessory Dwelling Unit. “Accessory Dwelling Unit” shall have the same meaning as set forth in 9.21.020(A). An accessory dwelling unit that received its building permit on or after March 31, 2017 , constitutes a separate dwelling unit for purposes of this Chapter. (b)(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 seventy square feet in area, is separated from other rooms by a door, and is accessible to a bathroom without crossing another bedroom. (c)(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. (d)(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 structure designed as a separate habitation for one or more persons, but does not include units located within 10.E.c Packet Pg. 1091 Attachment: CDD-Ord-Home-Sharing Legalization Program 050923 [Revision 1] (5690 : Homeshare Regulations – Permanent Ordinance City-approved hotels, motels, and bed and breakfasts, as defined in Section 9.51.030(B)(15). Notwithstanding anything to the contrary in 9.21.020(A), for purposes of this Chapter, an accessory building shall be considered part of the principal dwelling unit if it is located on the same parcel as the principal building. 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. (e)(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. (f)(e) Home-Sharing. Renting for a period of thirty consecutive days or less, one or more bedrooms in a dwelling unit that is the primary residence of the host, while the 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.” (g)(f) Host. Any natural person who is an eligible resident of a dwelling unit offered for use as a home-share. (h)(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. (i)(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. 10.E.c Packet Pg. 1092 Attachment: CDD-Ord-Home-Sharing Legalization Program 050923 [Revision 1] (5690 : Homeshare Regulations – Permanent Ordinance (j)(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 twelve 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 twelve months or more after the date the home -share application is submitted, 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 twelve months or more after the date the home -share application is submitted. (k)(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 agreement shall not be considered an owner. (l)(k) Person. Any natural person, joint venture, joint stock company, partnership, association, club, company, corporation, business trust, or organization of any kind. (m)(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 residence. (n)(m) Vacation Rental. Renting for a period of thirty 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, 10.E.c Packet Pg. 1093 Attachment: CDD-Ord-Home-Sharing Legalization Program 050923 [Revision 1] (5690 : Homeshare Regulations – Permanent Ordinance throughout any visitor’s stay. Rentals of units located within City-approved hotels, motels, and bed and breakfasts shall not be considered vacation rentals. (o)(n) Visitor. A natural person who rents a home-share or vacation rental. SECTION 2. Santa Monica Municipal Code Section 6.20.110 is hereby added to read as follows: 6.20.110 Home-Sharing Legalization Program. Notwithstanding the foregoing, or anything to the contrary in this Code, an accessory dwelling unit that received its building permit on or after March 31, 2017, shall not constitute a separate dwelling unit for purposes of this Chapter if it meets all of the following conditions: (a) The City previously issued the applicant a home-share permit for the dwelling unit in accordance with this Chapter; (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; and (c) The dwelling unit applicant proposes to use for home-sharing activities does not have any outstanding code violation for unpermitted work. SECTION 3. 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 the extent necessary to effect the provisions of this Ordinance. SECTION 4. 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 10.E.c Packet Pg. 1094 Attachment: CDD-Ord-Home-Sharing Legalization Program 050923 [Revision 1] (5690 : Homeshare Regulations – Permanent Ordinance 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 5. 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 30 days from its adoption. APPROVED AS TO FORM: _______________________ DOUGLAS SLOAN City Attorney 10.E.c Packet Pg. 1095 Attachment: CDD-Ord-Home-Sharing Legalization Program 050923 [Revision 1] (5690 : Homeshare Regulations – Permanent Ordinance City Council Meeting: May 12, 2015 Santa Monica, California ORDINANCE NUMBER ` qyq (CCS) City Council Series) AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA ADDING CHAPTER 6.20 TO THE SANTA MONICA MUNICIPAL CODE CLARIFYING PROHIBITIONS AGAINST VACATION RENTALS AND IMPOSING REGULATIONS ON HOME SHARING WHEREAS, the City consists of just eight square miles of coastal land which is home to 90,000 residents, the job site of 300,000 workers, and a destination for as many as 500,000 visitors on weekends and holidays; and WHEREAS, Santa Monica's primary housing goals include preserving its housing stock and preserving 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 available housing stock and the character and charm which result, in part, from cultural, ethnic, and economic diversity of its resident population; and WHEREAS, the City must also preserve its unique sense of community which derives, in large part, from residents' active participation in civic affairs, including local government, cultural events, and educational endeavors; and 1 10.E.d Packet Pg. 1096 Attachment: Homeshare (Ord 2484) (5690 : Homeshare Regulations – Permanent Ordinance Amending Chapter 6.20 (10 min)) WHEREAS, Santa Monica's natural beauty, its charming residential communities, its vibrant commercial quarters and its world class visitor serving amenities have drawn visitors from around the United States and around the world; and WHEREAS, the City affords a diverse array of visitor - serving short term rentals, including, hotels, motels, bed and breakfasts, vacation rentals and home sharing, not all of which are currently authorized by local law; and WHEREAS, operations of vacation rentals, where residents rent -out entire units to visitors and are not present during the visitors' stays are detrimental to the community's welfare and are prohibited by local law, because occupants of such vacation rentals, when not hosted, do not have any connections to the Santa Monica community and to the residential neighborhoods in which they are visiting; and WHEREAS, the presence of such visitors within the City's residential neighborhoods can sometimes disrupt the quietude and residential character of the neighborhoods and adversely impact the community; and WHEREAS, judicial decisions have upheld local governments' authority to prohibit vacation rentals; and WHEREAS, with the recent advent of the so called "sharing economy," there is growing acceptance of the longstanding practice of "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 K 10.E.d Packet Pg. 1097 Attachment: Homeshare (Ord 2484) (5690 : Homeshare Regulations – Permanent Ordinance Amending Chapter 6.20 (10 min)) WHEREAS, long before the advent of the sharing economy, home - sharing activities were already commonly undertaken throughout Santa Monica and throughout the United States; and WHEREAS, history has shown that home - sharing activities spread the good -will of Santa Monica worldwide and have enhanced Santa Monica's image throughout the world: and WHEREAS, home - sharing does not create the same adverse impacts as unsupervised vacation rentals because, among other things, the resident hosts are present to introduce their guests to the City's neighborhoods and regulate their guests' behavior; and WHEREAS, history has shown that home - sharing activities are relatively very small in number, when compared to the number of persons utilizing vacation rentals or the City's hotels and motels; 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 small number of home - sharers stay in safe structures and do not threaten or harm the public health or welfare; and WHEREAS, any monetary compensation paid to the resident hosts for their hospitality and hosting efforts rightfully belong to such hosts and existing law authorizes the City to collect Transient Occupancy Taxes ( "TOTs ") for vacation rentals and home- sharing activities; and P 10.E.d Packet Pg. 1098 Attachment: Homeshare (Ord 2484) (5690 : Homeshare Regulations – Permanent Ordinance Amending Chapter 6.20 (10 min)) WHEREAS, existing law obligates both the hosts and rental agencies or hosting platforms to collect and remit TOTS to the City. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES HEREBY ORDAIN AS FOLLOWS: SECTION 1. Chapter 6.20 of the Santa Monica Municipal Code is hereby added to read as follows: Chapter 6.20 HOME SHARING AND VACATION RENTALS 6.20.010 Definitions For purposes of this Chapter, the following words or phrases shall have the following meanings: a) Home - Sharing. An activity whereby the residents host visitors in their homes, for compensation, for periods of 30 consecutive days or less, while at least one of the dwelling unit's primary residents lives on -site, in the dwelling unit, throughout the visitors' stay. b) Hosting Platform. A marketplace in whatever form or format which facilitates the Home - Sharing or Vacation Rental, through advertising, match - making or any other means, using any medium of facilitation, and from which the operator of the hosting platform derives revenues, including booking fees or advertising revenues, from providing or maintaining the marketplace. c) Vacation Rental. Rental of any dwelling unit, in whole or in part, within the City of Santa Monica, to any person(s) for exclusive transient use of 30 consecutive days or less, whereby the unit is only approved for permanent residential occupancy and not approved for transient occupancy or Home - Sharing as authorized by this rd 10.E.d Packet Pg. 1099 Attachment: Homeshare (Ord 2484) (5690 : Homeshare Regulations – Permanent Ordinance Amending Chapter 6.20 (10 min)) Chapter. Rental of units within City approved hotels, motels and bed and breakfasts shall not be considered Vacation Rental. 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 Home - Sharing host complies with each of the following requirements: 1) Obtains and maintains at all times a City Business License authorizing Home - Sharing activity. 2) Operates the Home - Sharing activity in compliance with all Business License permit conditions, which may be imposed by the City to effectuate the purpose of 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) Complies with all applicable laws, including all health, safety, building, fire protection, and rent control laws. 6) Complies with the regulations promulgated pursuant to this Chapter. b) 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. 5 10.E.d Packet Pg. 1100 Attachment: Homeshare (Ord 2484) (5690 : Homeshare Regulations – Permanent Ordinance Amending Chapter 6.20 (10 min)) 6.20.030 Prohibitions a) No person, including any Hosting Platform operator, shall undertake, maintain, authorize, aid, facilitate or advertise any Home - Sharing activity that does not comply with Section 6.20.020 of this Code or any Vacation Rental activity. 6.20.050 Hosting Platform Responsibilities The operator / owner of any Hosting Platform shall: a) be responsible for collecting all applicable TOTs and remitting the same to the City. The Hosting Platform shall be considered an agent of the host for purposes of TOT collections and remittance responsibilities as set forth in Chapter 6.68 of this Code. b) 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, the length of stay for each such listing and the price paid for each stay. 6.20.080 Regulations The City Manager or his or her designee may promulgate regulations, which may include but are not limited to permit conditions, reporting requirements, inspection frequencies, enforcement procedures, advertising restrictions, disclosure requirements, or 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 set by Resolution all fees and charges as may be necessary to effectuate the purpose of this Chapter. N 10.E.d Packet Pg. 1101 Attachment: Homeshare (Ord 2484) (5690 : Homeshare Regulations – Permanent Ordinance Amending Chapter 6.20 (10 min)) 6.20.100 Enforcement. a) Any person violating any provision of this Chapter shall be guilty of an infraction, which shall be punishable by a fine not exceeding two hundred fifty dollars, or a misdemeanor, which shall be punishable by a fine not exceeding five hundred dollars, 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 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 person who violates any provision of this Chapter shall be subject to administrative fines and administrative penalties pursuant to Chapter 1.09 and Chapter 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 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. 1'I 10.E.d Packet Pg. 1102 Attachment: Homeshare (Ord 2484) (5690 : Homeshare Regulations – Permanent Ordinance Amending Chapter 6.20 (10 min)) 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 shall become effective 30 days from its adoption. APPROVED AS TO FORM: Wildw i MAR A JO S MOUT cIE City Attorney U. 10.E.d Packet Pg. 1103 Attachment: Homeshare (Ord 2484) (5690 : Homeshare Regulations – Permanent Ordinance Amending Chapter 6.20 (10 min)) Approved and adopted this 12th day of May, 2015. ILI k Kn McKeown, Mayor State of California ) County of Los Angeles ) ss. City of Santa Monica ) I, Sarah P. Gorman, City Clerk of the City of Santa Monica, do hereby certify that the foregoing Ordinance No. 2484 (CCS) had its introduction on April 28, 2015, and was adopted at the Santa Monica City Council meeting held on May 12, 2015, by the following vote: Ayes: Councilmembers: Davis, Himmelrich, O'Connor, O'Day, Winterer Mayor McKeown, Mayor Pro Tern Vazquez Noes: Councilmembers: None Absent: Councilmembers: None A summary of Ordinance No. 2484 (CCS) was duly published pursuant to California Government Code Section 40806 . ATTEST: Sara P Gorman, City Clerk 10.E.d Packet Pg. 1104 Attachment: Homeshare (Ord 2484) (5690 : Homeshare Regulations – Permanent Ordinance Amending Chapter 6.20 (10 min)) 10.E.e Packet Pg. 1105 Attachment: Homeshare (Ord 2535) (5690 : Homeshare Regulations – Permanent Ordinance Amending Chapter 6.20 (10 min)) 10.E.e Packet Pg. 1106 Attachment: Homeshare (Ord 2535) (5690 : Homeshare Regulations – Permanent Ordinance Amending Chapter 6.20 (10 min)) 10.E.e Packet Pg. 1107 Attachment: Homeshare (Ord 2535) (5690 : Homeshare Regulations – Permanent Ordinance Amending Chapter 6.20 (10 min)) 10.E.e Packet Pg. 1108 Attachment: Homeshare (Ord 2535) (5690 : Homeshare Regulations – Permanent Ordinance Amending Chapter 6.20 (10 min)) 10.E.e Packet Pg. 1109 Attachment: Homeshare (Ord 2535) (5690 : Homeshare Regulations – Permanent Ordinance Amending Chapter 6.20 (10 min)) 10.E.e Packet Pg. 1110 Attachment: Homeshare (Ord 2535) (5690 : Homeshare Regulations – Permanent Ordinance Amending Chapter 6.20 (10 min)) 10.E.e Packet Pg. 1111 Attachment: Homeshare (Ord 2535) (5690 : Homeshare Regulations – Permanent Ordinance Amending Chapter 6.20 (10 min)) 10.E.e Packet Pg. 1112 Attachment: Homeshare (Ord 2535) (5690 : Homeshare Regulations – Permanent Ordinance Amending Chapter 6.20 (10 min)) 10.E.e Packet Pg. 1113 Attachment: Homeshare (Ord 2535) (5690 : Homeshare Regulations – Permanent Ordinance Amending Chapter 6.20 (10 min)) 10.E.e Packet Pg. 1114 Attachment: Homeshare (Ord 2535) (5690 : Homeshare Regulations – Permanent Ordinance Amending Chapter 6.20 (10 min)) 10.E.e Packet Pg. 1115 Attachment: Homeshare (Ord 2535) (5690 : Homeshare Regulations – Permanent Ordinance Amending Chapter 6.20 (10 min)) 10.E.f Packet Pg. 1116 Attachment: Homeshare (Ord 2547) (5690 : Homeshare Regulations – Permanent Ordinance Amending Chapter 6.20 (10 min)) 10.E.f Packet Pg. 1117 Attachment: Homeshare (Ord 2547) (5690 : Homeshare Regulations – Permanent Ordinance Amending Chapter 6.20 (10 min)) 10.E.f Packet Pg. 1118 Attachment: Homeshare (Ord 2547) (5690 : Homeshare Regulations – Permanent Ordinance Amending Chapter 6.20 (10 min)) 10.E.f Packet Pg. 1119 Attachment: Homeshare (Ord 2547) (5690 : Homeshare Regulations – Permanent Ordinance Amending Chapter 6.20 (10 min)) 10.E.f Packet Pg. 1120 Attachment: Homeshare (Ord 2547) (5690 : Homeshare Regulations – Permanent Ordinance Amending Chapter 6.20 (10 min)) 1 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 DocuSign Envelope ID: 467A65C9-D9FC-4927-B12C-F062C5608568 10.E.g Packet Pg. 1121 Attachment: Homeshare (Ord 2616) (5690 : Homeshare Regulations – Permanent Ordinance Amending Chapter 6.20 (10 min)) 2 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 DocuSign Envelope ID: 467A65C9-D9FC-4927-B12C-F062C5608568 10.E.g Packet Pg. 1122 Attachment: Homeshare (Ord 2616) (5690 : Homeshare Regulations – Permanent Ordinance Amending Chapter 6.20 (10 min)) 3 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. DocuSign Envelope ID: 467A65C9-D9FC-4927-B12C-F062C5608568 10.E.g Packet Pg. 1123 Attachment: Homeshare (Ord 2616) (5690 : Homeshare Regulations – Permanent Ordinance Amending Chapter 6.20 (10 min)) 4 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. DocuSign Envelope ID: 467A65C9-D9FC-4927-B12C-F062C5608568 10.E.g Packet Pg. 1124 Attachment: Homeshare (Ord 2616) (5690 : Homeshare Regulations – Permanent Ordinance Amending Chapter 6.20 (10 min)) 5 (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 DocuSign Envelope ID: 467A65C9-D9FC-4927-B12C-F062C5608568 10.E.g Packet Pg. 1125 Attachment: Homeshare (Ord 2616) (5690 : Homeshare Regulations – Permanent Ordinance Amending Chapter 6.20 (10 min)) 6 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. DocuSign Envelope ID: 467A65C9-D9FC-4927-B12C-F062C5608568 10.E.g Packet Pg. 1126 Attachment: Homeshare (Ord 2616) (5690 : Homeshare Regulations – Permanent Ordinance Amending Chapter 6.20 (10 min)) 7 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. DocuSign Envelope ID: 467A65C9-D9FC-4927-B12C-F062C5608568 10.E.g Packet Pg. 1127 Attachment: Homeshare (Ord 2616) (5690 : Homeshare Regulations – Permanent Ordinance Amending Chapter 6.20 (10 min)) 8 (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. DocuSign Envelope ID: 467A65C9-D9FC-4927-B12C-F062C5608568 10.E.g Packet Pg. 1128 Attachment: Homeshare (Ord 2616) (5690 : Homeshare Regulations – Permanent Ordinance Amending Chapter 6.20 (10 min)) 9 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 DocuSign Envelope ID: 467A65C9-D9FC-4927-B12C-F062C5608568 10.E.g Packet Pg. 1129 Attachment: Homeshare (Ord 2616) (5690 : Homeshare Regulations – Permanent Ordinance Amending Chapter 6.20 (10 min)) 10 (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. DocuSign Envelope ID: 467A65C9-D9FC-4927-B12C-F062C5608568 10.E.g Packet Pg. 1130 Attachment: Homeshare (Ord 2616) (5690 : Homeshare Regulations – Permanent Ordinance Amending Chapter 6.20 (10 min)) 11 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. DocuSign Envelope ID: 467A65C9-D9FC-4927-B12C-F062C5608568 10.E.g Packet Pg. 1131 Attachment: Homeshare (Ord 2616) (5690 : Homeshare Regulations – Permanent Ordinance Amending Chapter 6.20 (10 min)) 12 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. DocuSign Envelope ID: 467A65C9-D9FC-4927-B12C-F062C5608568 10.E.g Packet Pg. 1132 Attachment: Homeshare (Ord 2616) (5690 : Homeshare Regulations – Permanent Ordinance Amending Chapter 6.20 (10 min)) 13 (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, DocuSign Envelope ID: 467A65C9-D9FC-4927-B12C-F062C5608568 10.E.g Packet Pg. 1133 Attachment: Homeshare (Ord 2616) (5690 : Homeshare Regulations – Permanent Ordinance Amending Chapter 6.20 (10 min)) 14 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 DocuSign Envelope ID: 467A65C9-D9FC-4927-B12C-F062C5608568 10.E.g Packet Pg. 1134 Attachment: Homeshare (Ord 2616) (5690 : Homeshare Regulations – Permanent Ordinance Amending Chapter 6.20 (10 min)) 15 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 DocuSign Envelope ID: 467A65C9-D9FC-4927-B12C-F062C5608568 10.E.g Packet Pg. 1135 Attachment: Homeshare (Ord 2616) (5690 : Homeshare Regulations – Permanent Ordinance Amending Chapter 6.20 (10 min)) 16 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 DocuSign Envelope ID: 467A65C9-D9FC-4927-B12C-F062C5608568 10.E.g Packet Pg. 1136 Attachment: Homeshare (Ord 2616) (5690 : Homeshare Regulations – Permanent Ordinance Amending Chapter 6.20 (10 min)) Approved and adopted this 24th day of September, 2019. _____________________________ Gleam Davis, Mayor 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. DocuSign Envelope ID: 467A65C9-D9FC-4927-B12C-F062C5608568 10/23/2019 10.E.g Packet Pg. 1137 Attachment: Homeshare (Ord 2616) (5690 : Homeshare Regulations – Permanent Ordinance Amending Chapter 6.20 (10 min)) Attachment H Excerpt of Zoning Ordinance Amendment Required for Home-Sharing (SMMC Section 9.21.020) Approved by Council on April 11, 2023 as Part of the Zoning Ordinance Amendments for Housing Element Implementation 10.E.h Packet Pg. 1138 Attachment: Previously Approved Zoning Ord Amendment for Homeshare (5690 : Homeshare Regulations – Permanent Ordinance Amending Item 10E. Home-Share Ordinance City Council May 9, 2023 10.E.i Packet Pg. 1139 Attachment: PowerPoint Presentation (5690 : Homeshare Regulations – Permanent Home-share Ordinance Staff Recommendation •Adopt a finding of no possibility of significant environmental effect pursuant to CEQA Introduce for first reading an ordinance to amend the City’s home-share ordinance (SMMC Chapter 6.20) Responds to Council’s direction in June 2021 and October 2022 •Codifies Council’s temporary Home-share Legalization Program approved in October 2022. •Home-share & accessory building regulations did not provide a way for a limited number of property owners to continue to home-share their detached structures, even though they were previously permitted by the City for home-sharing. •~16 homeowners 10.E.i Packet Pg. 1140 Attachment: PowerPoint Presentation (5690 : Homeshare Regulations – Permanent Home-share Ordinance Responds to Council’s direction in June 2021 and October 2022 •Eliminates requirement that an accessory structure be located within 6 feet of primary residence for home-sharing •Accessory structures, unlike ADUs, are not independent dwelling units (i.e., do not have full kitchens) •Allows limited number of existing ADUs permitted on/after March 31, 2017 to continue eligibility for home-sharing, if: •All Legalization Program criteria are met and a valid home-share license is maintained •6 ADUs are part of the Legalization Program to date 10.E.i Packet Pg. 1141 Attachment: PowerPoint Presentation (5690 : Homeshare Regulations – Permanent