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Home My WebLink About12 - Code Update Recommendations Related to Fractional Homeownership (PA2022-0202) - PowerPointMarch 14, 2023 Item No. 12 Fractional Homeownership City Council March 14, 2023 Seimone Jurjis, CDD Director Jaime Murillo, AICP, Principal Planner pet O n c\, FoR�% ty Council Background November 16, 2021, Study Session 4 known homes Directed staff to study what other cities are doing and report back September 13, 2022- City Council Study Session Sagecrest Planning+Environmental Report • 11 known homes - Directed staff to return with proposed action items ty Council rection September 27, 2022 — Council Meeting Initiated Zoning Code and Local Coastal Program Amendment Did not pursue moratorium Directed staff to work expeditiously with Planning Commission lannin, Cnmmissb October 6, 2022 — Study Session Staff presented comprehensive overview and options Due to complexity of issue, direction to form an Ad -Hoc Committee October 20, 2022 — Formation of Ad -Hoc Committee Commissioners Lowery, Rosene, and Weigand Total of 7 meetings, including residents and Pacaso Pacaso submitted draft ordinance in good faith effort lannin, Cnmmissb February 24, 2023 — Discussion and Recommendation Ad- Hoc Committee shared recommendations for a new regulatory process to permit Fractional Homeownership units • 12 known homes 2-Part Recommendation to Council Expand definition of time share and clearly prohibit; or If regulatory framework desired, incorporate various components Planning Commission Recommendation �, Community Development Department 1 Expand Definition v' Ti"o% Share Clarify fractional ownership as a form of time share Subject to time share regulations: Prohibited in all residential zones Allowed with CUP in certain commercial and mixed -use zones Conversion of dwelling units prohibited 300 units minimum and substantial amenities required Development Agreement required Sales, operating, management, and contingency plan required - Pacaso/Ember model effectively prohibited Change: 'ime Share Definitions "Time share plan" means any arrangement, plan, scheme, or similar device, whether by membership agreement, bylaws, shareholder agreement, partnership agreement, sale, lease, deed, license, right to use agreement, or by any other means, whereby a purchaser, in exchange for consideration, receives e right to exclusive use of an accommodation(s), or any portion thereof, whether through the granting of ownership rights, possessory rights or otherwise, for a period of time less than a full year during any given year, on a recurring basis for more than one year, but not necessarily for consecutive years. A timeshare plan shall be deemed to exist whenever such recurring rights of exclusive use to the accommodation(s), or portion thereof, are created, regardless of whether such exclusive rights of use are a result of a grant of ownership rights, possessory rights, membership rights, rights pursuant to contract, or ownership of a fractional interest or share in the accommodation(s), or portion thereof, and regardless of whether they are coupled with ownership of a real property interest such as freehold interest or an estate for years in the property subject to the time share plan. Changc, 'im Sham Definitions "Time share property" means one or more accommodations subject to the same time share plan, together with any other property or rights to property appurtenant to those accommodations. "Time share use" means one or more accommodations or any part thereof, as a time share property pursuant to a time share plan. "Accommodation" means any dwelling unit, apartment, condominium or cooperative unit, hotel or motel room, or other or structure constructed for residential use and occupancy, including, but not limited to, a single -unit dwelling, two -unit dwelling, multi -unit dwelling. z a New Use Allow in residential zones and regulate similar to short term lodging Prohibit in Single -Family (R1) Residential Zones Establish a maximum cap (TBD by Council) Transparency (notice to neighbors) Enforcement — Suspensions for violations 2 a New Us#% Add additional regulations: • Parking- Provide code -compliant parking and maintain available for use • Noise- Prohibit outdoor amplified sound 10pm-10am • Management Plan- Addressing property maintenance (landscape and trash) and identifying 24-hour local contact person (w/in 25 miles, 30 min response) • Subletting- Prohibited, including non -hosted guests • Good Neighbor Policy- Rules posted in unit • Owner Acknowledgments- Signed by each owner Possibi4 Op ons to Considerm Expand definition of time share to include fractional ownership (effectively prohibit) Allow fractional ownership model and regulate similar to short term lodging Prohibit R1 zone, create permit process, establish practical regulations Continue to allow fractional ownership unregulated Questions and Discussion City Council March 14, 2023 Seimone Jurjis, CDD Director siuriis@newportbeachca.gov Jaime Murillo, AICP, Principal Planner jmurillo@newportbeachca.gov