HomeMy WebLinkAboutSS5 - Update on Short Term Lodging Permits - PowerPoint-100—T F oil
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June 27, 2017
Item No. SS5
SHORT TERM VACATION RENTALS
CITY COUNCIL STUDY SESSION
JUNE 27, 2017
Background -Short -Term Vacation Rentals
In 1992 the City adopted Short-term lodging regulations
(Title 5):
Defined "short term" as an occupancy that is 30 consecutive days
or less
Required a Permit
In 2004, prohibited Short-term lodgings in R-1 Single Family zones
unless a valid permit was issued prior to June 1, 2004.
There are 212 "grandfathered" R-1 properties.
How to Get an STLP- City Procedures
Must be in correct Residential Zone
Obtain aShort-term Lodging Permit (STEP) and a
Business License
Pay Transient Occupancy Tax (TOT)
Note: Some Homeowners Associations may prohibit short-term lodgings as part
of the CC&Rs; property owners need to consult with their association.
How many permitted STLs in the City?
120 in the R-1 zone, and in use today
92 in the R-1 zone but not in active use (aka "grandfathered")
1,179 in the "correct" Multi -family zones — mostly on Balboa
Island, CdM, Balboa Peninsula
Total = 1,,299 active permits
These have generated about $2.7M ayear in TOT (about 10%
of total TOT)
Where are Short -Term Rentals Allowed?
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NEWPORT BEACH!
GOVERNMENT
Short Term Lodging Application
Process
Short Term Lodging Property
Complaint
Reference
Search for an Address
Rules to Remember
AM A... HOW DO L. TRENDING
IGovernment s DEPARTMENTS n Finance» Revenue Division
Search...
FUSVU
SHORT TERM LODGING (RENTALS)
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Easy to Use - Interactive Map
Find out where STL is: permitted, not permitted and the status of existing permits.
Interactive Map & Address Search
The Interartwo Map or Address Search tools can assist to you with the IRllowmg inlormahoo for a particular pmr�
• Active Shod -Terni Loftng Permds
• Short -Term Lodging allowed subject to zoning compliance
• Properties permitted poor to June 2004 per M.G 5.95.020
Click Interactive Map to view or Enter Address Below:
Enter Address
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Interactive Map & Address Search
The Interactive Map or Address Search tools can assist to you with the following information for a
• Active SharF-Tem7 Lodg+ng Permit;
hnrt Tann I adgdnrf allowed suhjent to 7nnin0 compliance
• I roperties permitted prFG! lu June 2004 per M.C. 5-95.020
Chrk Interardlve Map in www or Enter Address Below:
:tiva Map & Address Search ._ - - Enter Address
The Interactive Map or Address Search Innis can assist to you with the fallowing information for a particular prope -- -�,''F 5908 GL'tAta llirJNt W
• A:tive Shurt-Tenn Ludyrng Permits
Short -Term Lodging allowc-d subject to zoning compliance .. , Shur l - Iain Ludging rs I
• Properties parnihad prior In °.Tuna 2004 par M C 5 A5 070
On* Inlerxr:trve M.1, to view ori
Enter Address Below:
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curronty an active permit, SLP1 1161.
PERMIT STATUS
PROHIBITED
The Internet Effect
Online companies such as VRBO, FlipKey, and airbnb have created a whole
new facet to vacation rentals.
.I PKEY
by ° tripadvisor
VRBCr
from HomeAway "
Difficult to regulate because online businesses do not have a physical presence
here.
Recent San Francisco Agreement with
Airbnb and Homeaway
Settlement Agreement that Airbnb and Homeaway will create
software that sends host names and locations to San Francisco (May
2017).
City is then responsible for enforcement of local regulations.
Ultimately City Code Enforcement is involved.
Staff has had recent meetings with Homeaway, and we hoping to get
a cooperative agreement in place regarding the sharing of listing
information.
Enforcement Effort this Summer
City has hired Host Compliance to assist staff
to review Online listings
Weekly Reports
Enforcement Focus this Summer
All Questionable Listings are Reviewed:
o Correct Location
If Yes: Is there a Permit and Business License
If Not: The use of the property for Vacation Rentals Must
Stop; and Property Owner is responsible for paying fines
and remitting Transient Occupancy Tax to City
Enforcement Results To Date
R1 Zone
108 Questionable Listings Reviewed
57 Citations Issued
78 Rentals Brought into Code Compliance in the R1
Zones
Multi -Family Zones
103 Questionable Listings in the Multi -Family Zones
23 Notices sent out; 53 Listings under review
Next Steps
Continue to follow up on the leads provided by Host
Compliance
Return to City Council before the end of the year
with a final assessment of the success of this
proactive effort, including a fiscal review.
Questions?
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