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Home My WebLink AboutSS3 - Short Term Lodging Update - PowerPointJanuary 22, 2019 Item No. SS3 Brian Contino- Acting Code Enforcement Supervisor Monique Navarrete-License Supervisor SHORT-TERM LODGING HISTORY In 1992 the City adopted Short-term lodging regulations (Title 5) ➢ " short term" is 30 consecutive days or less. S Requires a STL permit, Business License and payTOT. ➢ Prohibited in R- I Single Family Zone unless a permit was issued prior to June 1, 2004. SHORT-TERM LODGING HISTORY 212 " grandfathered" in R- I Single Family Zone April 2017 City signed contract with Host Compliance to review Internet listings. HOST COMPLIANCE REQUIREMENTS FOR SHORT-TERM LODGING PERMITS(STLP) Property must be located in allowed R-2 zone Newport Beach business license ($168) Short-term rental permit ($ 100) Payment of 10% TOT - Agents -Quarterly, Owners -Annual Short-term rental permit needs to be displayed on advertisement Short-term permits will have to be renewed each year in October 4 SAAKUH �VK AN AUUKtJb Active Short -Term Lodging Permits (Concentrated Areas) 0 Active Permits 133 est Newport / Newport Shores 86$ Salbou Peninsula 253 Balboa Island 112 Corona del Mor Village 18 All other Areas � � � •��0�� LJ U U LJ �. a(�, Fa ID ACTIVE SHORTTERM RENTALS BYAREA ar • + #�� * # {AFI• � # do * Account for: 7010 of 1,933 Housing Units in Area 15% of 5,877 Housing Units in Area. 12% of 2,123 Housing Units in Area 30/0 of 3,298 Housing Emits in Area * Housrrrg Units per 2010 Census Brocks � (!� D 'o a qiP (-)m PpwU7& 9 PROPERTIES ELIGIBLE TO RENT SHORT TERM Based on allowed land use policy maximum number of potential rental properties per area: West Newport 797 Balboa Peninsula 4,353 Balboa Island 2,662 Corona del Mar 29968 Total allowed 109780 Actual Permitted 19384 INTERACTIVE MAP &ADDRESS SEARCH Jlntaracdva Map 8 Address Search The Inleractive Map or Address Search tools can essrA to you wdh the follOyring infOrrrnatrOn for a particular property • Adwe Short -Term Lodging Permits • 5hon.Tgrm Lodging alknwgd 9tMfKt la zoning compliance • Properties pamii0ed pwx to June 2004 per M.C. 5 95.020 Click rnieractrve Map to view or Enter Address Below: EJMWAddMok 1826 OCEAN FRONT W Sh4r1-Term L _ h41 I rrgnily An adnvg pennit Interactive Map & Address Starch I he Inteimulive Map or Address S6010i tools can assist to you with the falJownng information IN 6 OaFticular • Active Short -Tomb Lodging P6rmits • 5hart-Term Lodgi rig allowed subject to Zoning Compliance • Properties permitted prior to June 2004 per M.C. 5.55.020 Click Inieractnre Map to view or Enter Address Below: ■ Enter Addre5x---- Interactive Map & Address Search �f T The Interactive Map or Address Search tools can assisl to you with the following information for a particular PERMITTED Active Short -Term Lodging Permits • Shari -Term Lodging altowed suhfRcl to zoning compliance • Properties permitted pnor to .i urge 2404 per M.C. 5.95-420 Click Interactive Map to view or E=nter Address Below Eater Address - *s1909 o EAN FRONT w ' ► Short -Term Lodging is prohibited. PROHIBITED Short•Temi Lodging is allowed subject to zoning compliance hleQLI2_curren" an active permit, SLP11101. __.W PERMIT STATUS C'7 STLP Cycle Short Term Renewal mailed Lodging Permit end of September with Owners Annual UTOT Owners: Must return annually every October 31 Remitting UTOT Agents: Remit Quarterly Owners: Remit Annually due every October 31 st Business License Tax Certificate Short Term Lodging Permit Annual Renewal Bills Sent ( UTOT ) Uniform Transient Occupancy Agents: Billed Quarterly Owners: Billed Annually enc September Tax of Alai Addams Ca N—d Ph— BUSINESS LICENSE NUMBER EXPIRATIDN DATE ** IMPORTANT MESSAGE ** YOUR BUSINESS LICENSEMUST BE VALID TO RENEW YOUR PERMIT. RENTAL UNIT(S) Please update the injormafion far the units you are renting on a short-term basis. Mark the bos that hest identifies the status of each unit. Choose "Cancel Permit" only if you no longer own or rent the unit listed. STLP# Unit Address CITY OF NEWPORT BEACH �EWPp REVENUE DIVISION Active Cancel Rental Permit NO CMC CENSER DR - P.O. BOX 1758 F l NEWPORT BEACH, CA 92658-8915 j} {9491644-3141 • RevenueHelp@n portheachca.gov li http ijwww.n ponheachca.govfRevenae c��tFoa�'NA SHORT TERM LODGING PERMIT RENEWAL "'There 8 no fee required for 2018 permit renewal"• DUE DATE: IID/31/18 PROPERTY OWNER INFORMATION .0 PSD— Alai Addams Ca N—d Ph— BUSINESS LICENSE NUMBER EXPIRATIDN DATE ** IMPORTANT MESSAGE ** YOUR BUSINESS LICENSEMUST BE VALID TO RENEW YOUR PERMIT. RENTAL UNIT(S) Please update the injormafion far the units you are renting on a short-term basis. Mark the bos that hest identifies the status of each unit. Choose "Cancel Permit" only if you no longer own or rent the unit listed. STLP# Unit Address Lnit# Expiration Date Maximum Occupants Active Cancel Rental Permit Please list all additional units for this property you are renting oi> a shoif-term basis. Unit Address Maximu m Occupants Unit Address Maximum Accu antr RENTAL AGENT(S) Please note the status of any agents representing your rental property. Choose "Fanner Agent" if an agent listed is no longer representing any yourproperties. Please list any odditionoi agen is in the space provided below. Active Former Ust Additional Agents Below Agent Name Agent Agent •AGENT_NAME1- ❑ ❑ SHORT TERM LODGING PERMIT RENEWAL IMPLEMENTED 2018 Owners must have a valid Business License in order to renew their permit. Owner Information: Owner must verify their mailing address, telephone number, email address, and emergency contact telephone number. Space is provided for any updates or corrections. Property Information: Each line represents the property and the specific unit which engages in STL. Owner will mark the box to keep the permit active, or to cancel the permit if they are no longer engaging. Agent Information: The current agent on file for the owner will be listed. It is the owner's responsibility to notify the City of any changes. C97 MUST COMPLETE AND SIGN THIS SECTION Newport Reach Municipal Code requires a valid Short Term Lodging Permit. Returning this completed form by the due date will result in a renewal for one year. Porins not returned by the due date, October 31", will render the properties non-compliant and may subject the property owner to administrative citations. Your Business License Tax renewal is annual and is sent separately. Your Business License Tax certification must be current in order to renew your permit. The following must be initialized by the legal property owner: My business license is current and valid. - I have read and agree to the Short Term Lodging Permit conditions. I agree to include the City -issued permit number on all advertisements. (Your STLP p can be found on the front of this form) This permit is only valid for its current term, and any renewal term. This permit does not convey or grant a property right that runs with the land. I hereby certify under the penalty of perjury that I am authorized to make this statement and that the information provided on this form is true and correct. Print Name Owner's Signature Date SHORT TERM LODGING PERMIT RENEWAL —CONTINUED Requirements: Owner must read and initial the requirements of the renewal. Owner must sign and date the renewal verifying the information provided. Renewal Fee: 2018 Renewal did not include a fee. Staff will continue to study the renewal process and calculate a fee for the 2019 renewal period 4,500,000 4,006,000 3,500,400 3,DOD,DDD 2,500,000 W W W 2,006,000 1,500,000 1,006,600 500,000 1, REVENUE TRENDS 06.158 13 STLP TEST REVENUE 19 21 FY 13/14 FY 1411 Fr -4; -6=Y1b.•'17 F S�Al vEA.R 26 =Y 17;`18 19 24 134,g5o $180,000.00 $160,000.00 $140,000.00 $120,000.00 $100,000.00 $80,000.00 $60,000.00 $40,000.00 $20,000.00 $0.00 Business License Tax Revenue 2013 - 2018 141,378.15 +38.3% 02,244.23 97,963.12 +4.4% 164,240.82 +16.2% 2013 2014 2015 2016 1516,870.60 -4.5 4 J 2017 -+6.1 166,376.29 2018 CURRENT YEAR: BUSINESS LICENSE TAX = $168.00 SHORT-TERM LODGING PERMIT = $100.00 TOT = $10% OF RENTS COLLECTED L-1 ENFORCEMENT Revenue Division - monitors ads for rentals in allowed areas • Code Enforcement -monitors ads for rentals in prohibited areas Police Department —responds to complaints and send over weekly reports for calls to rental properties Citations are issued from Code Enforcement to properties that receive a Disturbance Advisory Card from the Police Department SHORT-TERM LODGING ENFORCEMENT Any violation of NBMC Section 5.95- ShortTerm Lodging Permit will result in a citation Four violations in a 12 month period of NBMC Section 5.95 results in revocation of rental permit 0 ENFORCEMENT RESULTS 2018 HOST COMPLIANCE 96 properties identified by Host Compliance 36 properties received Notice of Violations 16 properties received citations 44 properties were in compliance 17 Boats identified as short-term rental use 10 cases have been closed by the Harbor Division ENFORCEMENT RESULTS 2018 HOST COMPLIANCE • 144 properties have been reviewed • 81 properties brought into compliance 27 properties have been closed 36 properties are still on going cases $172,665.40 ENFORCEMENT RESULTS 2018 CALLS FROM RESIDENTS COMPLAINTS FROM RESIDENTS 93 properties have received a complaint. ENFORCEMENT BY NEWPORT BEACH PD 93 Disturbance Advisory Cards (DAC) have been issued. • 3 Loud Unruly Gathering Ordinance (LUGO)have been issued. SHORT-TERM LODGING CASES 443 Short-term lodging cases for 2018 airbn b Etcraww HOME SHARING WEB SITES mv,�WA7 .� Ladgix Vy -c• ,,r.•o: ' M stopover 1%6s 11" # H holid-ayletting� lest KGREATRENTALS ~ YiKati 0 R" Ske C,Vfimdu ��fmw r� gflatUom a traveImvc ',tr-ks0Q�'D STATUS OF DISCUSSIONS /\I V R B Cr ,, from HomeAway ,, Require owners to list the City's STL permit number on the platform; 2. Do not list STL listings that do not comply with City's land use law. WHAT ARE OTHER CITIES DOING? Restricting the number of days a property may be rented per year, 180 to 30 days Requiring the STL permit number to be posted on the platform Some have fined AirBnB for allowing illegal listings STAFF SUGGESTIONS? Close STL permits for those reporting $0 on the TOT form. Phase out Grandfathered properties in the R- I Zone (212)? Restrict by preventing PO transfer. Add language to restrict commercial activities in STL units (Restrict filming and Event Space) 4. Provide clarity that renting out a bedroom requires a STL permit. Change the number of violations from 4 down to 2 in 12 months that warrants a review or revocation. Require the "Agent" that represents property owner be a California Licensed Real Estate Agent or Broker. Communication and approach towards HomeAway and AirBnB ? 6c, �1FoR� Z QUESTIONS OR SUGGESTIONS? Brian Contino (949) 644-3257 Monique Navarrete (949) 644-3148