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Home My WebLink About12 - Code Amendments Related to Time Shares (PA2022-0202) - PowerPointFractional Homeownership Code and LCP Amendments Related to Time Shares City Council May 9, 2023 Jaime Murillo, AICP, Principal Planner May 9, 2023 Item No. 12 PoR c\,FOV7% ocz Dialogues City Council — 5 meetings Planning Commission — 3 meetings Planning Commission Ad -Hoc Committee — 7 meetings Sagecrest Planning+Environmental Report (available to public) Marc Pursue Code and LCP Amendments to broaden definition of timeshare to include fractional ownership Subject to existing time share regulations and standards Prohibited in all residential zones tanning Commission Recommendation April 20, 2023 Recommended adoption of amendments • Consider clarification of definition to clearly exclude family/friend arrangements • Consider prohibiting the advertising of prohibited timeshares Proposed Amendment Community Development Department 1. Modifies All Time Share Related Definitions (Titles 20 and 21) • Broadly crafted to clearly include fractional ownerships and to capture other potential models Various definitions work together Close potential loopholes Fractional Ownership = Time Share Proposed Definition I M-- -' • a time share use is the use of an accommodation as a time share property • A time share accommodation means any dwelling unit, apartment, condominium or cooperative unit, hotel or motel room, or other or structure constructed for residential use and occupancy • a time share property is an accommodation subject to a time share instrument; • a time share instrument is a document (or documents) creating/governing a time share plan; and • a time share plan is any scheme/device/agreement whereby a purchaser, in exchange for consideration, obtains exclusive right to occupy a property (or portion thereof) for less than a year, and on a recurring basis for more than a year. T. - r, Time Share Plan Several conditions must be met to trigger regulation: i. the use of an accommodation ii. pursuant to a plan iii. whereby a purchaser, in exchange for consideration iv. received the right to exclusively use the accommodation for less than 1 year, on a recurring basis for more than a year Not 3 friends buy property and no exclusive use Divorcees receive shared Time Shares rights to use vacation home Siblings inherit property and agree on use 2. Modifies Titit hare Regulation,.. Revisions for consistency with modified definitions 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 2. Modifies Title Share Regulation Except where time shares allowed by Code, prohibits any person, including an owner, agent, or broker from: Establishing a timeshare Converting any unit into a timeshare Advertising for sale a time share Managing a timeshare • (Not applicable to existing units) Revision to Section 20.48.220(A) A. No time share use or time share unit shall be established or permitted in any zoning district except as authorized in the Code. Unless authorized by this Code, no responsible person including, but not limited to, an owner of a time share unit, an agent, or a broker shall: 1. Develop or establish a timeshare use in the City; 2. Convert a property or unit in the City to a time share use or time share unit; 3. Advertise or cause to be printed, published, or disseminated in any way and through any medium, the availability for sale, in its entirety or a fraction thereof: (a) any property or unit in the City that is used for a time share use or as a time share unit; or (b) any entity where the ownership thereof, in whole or in part, entitles the owner thereof to use a property or unit in the City for a time share use, if the responsible person receives or will receive an economic benefit from the sale; and/or 4. Manage a unit or property in the City that is being used for a time share use or as a time share unit. The subsection shall not apply to any time share use that was lawfully established prior to the effective date of Ordinance No. 2023- 3. Modifies Title 21 Visitor ccommodations Regulation Minor revisions for consistency with modified definitions Clarifies regulations apply to development and creation (includes conversion) of new visitor accommodations (including time shares) • Clarifies conversion of existing dwelling units into time shares is prohibited Fr. Total of 12 Known Facilities Legal Nonconforming 1T ti r� r f I i HOSPITAL RQ a � ti N!6 3 a8 ALF y � cr ❑ y -$i �k0 z � OR M s4 - 07 y u1 y 6� V ��O 5 • 89 S sT � Z a t �•� s r °F � c� o° Residential m 7 PARN AYE Zoning _ w x lUp� P R 1 R � k � � •�� T EAS� F 7 R-2 Fractional R-2 j R-BI Home Ownership4 a R-BI Locations RM pin °r � I11V1 �: Next Step • Adoption of Ordinances (as modified) Submittal to CA Coastal Commission and request a de-minimis approval Implementation Outside the Coastal Zone — 30 days after 2nd reading Within Coastal Zone- After Coastal Commission approval Questions and Discussion City Council May 9, 2023 Jaime Murillo, AICP, Principal Planner jmurillo@newportbeachca.gov