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HomeMy WebLinkAbout24 - NBMC Amendments Related to Short Term Lodging (PA2023-0116)Q �EwPpRT CITY OF s NEWPORT BEACH `q44:09 City Council Staff Report July 22, 2025 Agenda Item No. 24 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Seimone Jurjis, Community Development Director - 949-644-3232, sjurjis@newportbeachca.gov PREPARED BY: Jaime Murillo, AICP, Deputy Community Development Director - 949-644-3209, jmurillo@newportbeachca.gov TITLE: Ordinances Nos. 2025-15 and 2025-16: Newport Beach Municipal Code Amendments Related to Short Term Lodging (PA2023-0116) ABSTRACT: On December 12, 2023, the City Council adopted Ordinance No. 2023-23, amending Chapter 5.95 (Short Term Lodging Permit) and Title 20 (Zoning Code) of the Newport Beach Municipal Code (NBMC) regarding the permitting and operation of short term lodging. These amendments included permitting short term lodging within the MU-W2 (Mixed -Use Water) and MU-CV/15t" Street (Mixed -Use Cannery Village and 1511 Street) zoning districts. Similar amendments to Title 21 (Local Coastal Program Implementation Plan) of the NBMC were also needed. On May 7, 2025, the California Coastal Commission (CCC) approved the amendments to the Local Coastal Program (LCP) with suggested modifications. For the City Council's consideration is a proposed ordinance to accept and incorporate the CCC's suggested modifications into Title 21 and to amend Chapter 5.95 of the NBMC to ensure consistency with the CCC's suggested modifications. RECOMMENDATIONS: a) Conduct a public hearing; b) Find this project is exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15060(c)(2) of the CEQA Guidelines, California Code of Regulations, Title 14, Division 6, Chapter 3, which states that an activity is not subject to CEQA if "[t]he activity will not result in a direct or reasonably foreseeable indirect physical change in the environment", c) Waive full reading, direct the City Clerk to read by title only, introduce Ordinance No. 2025-15, An Ordinance of the City Council of the City of Newport Beach, California, Approving a Code Amendment to Chapter 5.95 (Short Term Lodging Permit) of the Newport Beach Municipal Code to Ensure Consistency with the Local Coastal Program Amendment Related to Short Term Lodging (PA2023-0116), and pass to second reading on August 26, 2025; and d) Waive full reading, direct the City Clerk to read by title only, introduce Ordinance No. 2025-16, An Ordinance of the City Council of the City of Newport Beach, California, Approving a Local Coastal Plan Amendment Amending Title 21 (Local Coastal Program Implementation Plan) of the Newport Beach Municipal Code as Modified by the California Coastal Commission Related to Short Term Lodging (PA2023-0116), and pass to second reading on August 26, 2025. 24-1 Ordinances Nos. 2025-15 and 2025-16: Newport Beach Municipal Code Amendments Related to Short Term Lodging (PA2023-0116) Page 2 DISCUSSION: On December 12, 2023, the City Council adopted Ordinance No. 2023-23 (Attachment C). The ordinance approved Code Amendment No. PA2023-0116 to amend Chapter 5.95 (Short Term Lodging Permit) and Title 20 (Planning and Zoning) of the NBMC. The City Council also adopted Resolution No. 2023-83 (Attachment D), authorizing submitting an LCP amendment to the CCC. Resolution No. 2023-83 specified the LCP Amendment shall not become effective until approval by the CCC and adoption, including any modifications suggested by the CCC, by the City Council. The proposed amendments adopted by the City Council would establish regulations and eligibility requirements authorizing the permitting of short term lodging within the MU-W2 (Mixed -Use Water) and MU-CV/15t" Street (Mixed -Use Cannery Village and 15t" Street) zoning districts (Attachment F). It would also change the maximum cap of short-term lodging permits from 1,550 permits citywide to 1,475 permits in residential districts; and 75 permits within the MU-W2 and MU-CV/15t" Street zoning districts. Coastal Commission Action and Modified Amendments to Title 21 The CCC reviewed the LCP Amendment at its May 7, 2025, hearing. The CCC approved the amendments, except for the suggested modifications described below. The CCC approval letter, including suggested modifications, is included as Attachment G. The City Council may either accept or reject the suggested modifications (Attachment B). If the City Council rejects the suggested modifications, the LCP amendment would effectively expire, and the proposed regulations would not go into effect. Should the City Council want to partially accept the suggested modifications, the City would need to process a new LCP amendment application and attempt to obtain CCC approval. A summary of the suggested modifications includes • Suggested Modifications 1 (Preserve the overall 1,550-permit cap on STRs throughout the coastal zone) — As initially proposed, the City would limit the number of short term lodging permits to 75 short term lodging permits for properties within the MU-W2 and MU-CV/15t" Street zoning districts subject to specific eligibility requirements. Any existing short term lodging that was legally established prior to November 25, 2010, that did not meet the eligibility requirements would not count against this limit (currently 19 permits). The CCC recommends removing this exemption, thus all short term lodging within the MU-W2 and MU-CV/15t" Street zoning districts would count towards the 75-permit limit, leaving capacity for 56 new permits. This suggestion also includes a maximum overall limit of 1,550 permits for short- term lodging to be included in Title 21 of the NBMC. This modification would have the effect of restricting the number of short term lodging permits that can be immediately issued in the MU-W2 and MU-CV/15t" Street zoning districts in the near term to ensure that at no time does the total number of short term lodging permits in the City exceed 1,550 total permits. • Suggested Modification 2 (Re -alphabetize three subsections) — Due to the changes in Suggested Modification 1, three subsections need to be re - alphabetized to be kept in order. 24-2 Ordinances Nos. 2025-15 and 2025-16: Newport Beach Municipal Code Amendments Related to Short Term Lodging (PA2023-0116) Page 3 Suggested Modification 3 (Specify unclear language and protect public parking used for coastal access) — The suggestion addresses properties with a short-term lodging permit and are non -conforming due to the number of parking spaces. Sufficient data would need to be provided to show the parking demand would be met through alternative means (bikes, bus, trolley, rideshare, or private off-street parking) and would not rely on the City's stock of public on -street and off-street parking. The recommended actions accept and incorporate all the CCC suggested modifications into the LCP Amendments. A redline strikeout version of the proposed code revisions is included as Attachment H. Amendments to Chapter 5.95 Amendments The proposed amendment to Chapter 5.95 (Attachment A) is needed for consistency with CCC Suggested Modification 1 eliminating the exemption of existing nonconforming permits from the 75-permit cap in the MU-W2 and MU-CV/1511 Street zoning districts and adding a citywide maximum 1,550 permit limit. FISCAL IMPACT: There is no fiscal impact related to this item. ENVIRONMENTAL REVIEW: Staff recommends the City Council find this action is exempt from environmental review under the California Environmental Quality Act (CEQA) pursuant to Section 15060(c)(2) of the CEQA Guidelines, California Code of Regulations, Title 14, Division 6, Chapter 3, which states that an activity is not subject to CEQA if "[t]he activity will not result in a direct or reasonably foreseeable indirect physical change in the environment". The Code Amendment would allow existing residential dwelling units in mixed -use zones to be used as short-term lodging. The Code Amendment would not authorize new development that would result in a physical change in the environment NOTICING: Pursuant to Section 13515 of the California Code of Regulations, a review draft of the LCP Amendment was made available, and a Notice of Availability was distributed on October 13, 2023, to all persons and agencies on the Notice of Availability mailing list. Notice of this amendment was published in the Daily Pilot as an eighth -page advertisement, consistent with the provisions of the NBMC. The item also appeared on the agenda for this meeting, which was posted at City Hall and on the City website. Furthermore, the agenda item has been noticed according to the Brown Act (72 hours in advance of the meeting at which the City Council considers the item). 24-3 Ordinances Nos. 2025-15 and 2025-16: Newport Beach Municipal Code Amendments Related to Short Term Lodging (PA2023-0116) Page 4 ATTACHMENTS: Attachment A — Ordinance No. 2025-15 (Chapter 5.95) Attachment B — Ordinance No. 2025-16 (Title 21 Amendment) Attachment C — Ordinance No. 2023-23 Attachment D — Resolution No. 2023-83 Attachment E — November 28, 2023 City Council Staff Report Attachment F — MU-W2 and MU-CV/15t" Street Zoning Districts Map Attachment G — Coastal Commission Approval Letter and Suggested Modifications Attachment H — Underline/St�wt Version of Amendments 24-4 Attachment A Ordinance No. 2025-15 (Chapter 5.95) 24-5 ORDINANCE NO. 2025-15 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH, CALIFORNIA, APPROVING A CODE AMENDMENT TO CHAPTER 5.95 (SHORT TERM LODGING PERMIT) OF THE NEWPORT BEACH MUNICIPAL CODE TO ENSURE CONSISTENCY WITH THE LOCAL COASTAL PROGRAM AMENDMENT RELATED TO SHORT TERM LODGING (PA2023-0116) WHEREAS, Section 200 of the City Charter, of the City of Newport Beach ("City"), vests the City Council with the authority to make and enforce all laws, rules and regulations with respect to municipal affairs subject only to the restrictions and limitations contained in the City Charter and the State Constitution, and the power to exercise, or act pursuant to any and all rights, powers, and privileges or procedures granted or prescribed by any law of the State of California; WHEREAS, Section 20.66.020 (Initiation of Amendment) of the Newport Beach Municipal Code ("NBMC") provides that the Planning Commission or the City Council of the City of Newport Beach ("City Council") may initiate an amendment to Title 20 (Planning and Zoning) ("Title 20") of the Newport Beach Municipal Code ("NBMC"),- WHEREAS, the City Council directed the Planning Commission to identify opportunities to modify Titles 20 ("Code Amendment") and 21 ("LCP Amendment") of the NBMC on May 23, 2023, effectively initiating amendments, to facilitate new visitor serving accommodation opportunities within the Mixed -Use Water (MU-W2) and Mixed - Use Cannery Village and 15th Street (MU-CV/15th St.) zoning districts; WHEREAS, the Planning Commission discussed the Code Amendment and LCP Amendment on June 22, 2023, to facilitate new visitor serving accommodations; WHEREAS, the Planning Commission held a public hearing on October 19, 2023, in the City Council Chambers, located at 100 Civic Center Drive, Newport Beach, California. A notice of time, place and purpose of the hearing was given in accordance with California Government Code Section 54950 et seq. ("Ralph M. Brown Act") and Chapter 20.62 (Public Hearings) of the NBMC. Evidence, both written and oral, was presented to, and considered by, the Planning Commission .at this hearing; WHEREAS, at the conclusion of the hearing, the Planning Commission adopted Resolution No. PC2023-037 by a majority vote (3 ayes, 1 nay) recommending approval of the Code Amendment and LCP Amendment to the City Council; M Ordinance No. 2025-15 Page 2 of 4 WHEREAS, the City Council held a duly noticed public hearing on November 28, 2023, in the Council Chambers located at 100 Civic Center Drive, Newport Beach, California. A notice of time, place and purpose of the public hearing was given in accordance with the Ralph M. Brown Act and Chapters 20.62 (Public Hearings) and 21.62 (Public Hearings) of the NBMC. Evidence, both written and oral, was presented to, and considered by, the City Council at this public hearing; WHEREAS, the City Council adopted Resolution No. 2023-83 on November 28, 2023, authorizing submittal of the LCP Amendment filed as PA2023-0116 to the Coastal Commission by a unanimous vote (6 ayes, 0 nays) amending Title 21 (Local Coastal Program Implementation Plan) of the NBMC related to short term lodging regulations for properties within the coastal zone; WHEREAS, the City Council also adopted Ordinance No. 2023-23 on December 12, 2023, amending Chapter 5.95 (Short Term Lodging Permit) and Title 20 (Planning and Zoning) of the NBMC, which is attached hereto as Exhibit "A," and incorporated herein by reference, implementing the Code Amendment, however, the Code Amendment does not take effect until certification of the LCP Amendment by the California Coastal Commission; WHEREAS, subsequent to that, the City Council adopted Ordinance No. 2025-4 on March 11, 2025, amending Sections 5.95.042 (Maximum Number of Permits), Section 5.95.043 (Transfer of Permit), and Section 5.95.065 (Suspensions and Revocations) of Chapter 5.95 (Short Term Lodging Permit), which is attached hereto as Exhibit "B," and incorporated herein by reference, to update administrative procedures related to short term permits which took effect on April 10, 2025; WHEREAS, the California Coastal Commission denied the LCP Amendment as submitted at its May 7, 2025, hearing and approved it with suggested modifications (LCP-5-NPB-24-0004-1 Part A) that require a revision to Section 5.95.042 (Maximum Number of Permits), for consistency with Title 21; WHEREAS, it is necessary to amend Chapter 5.95 (Short Term Lodging Permit) to incorporate the California Coastal Commission modifications to the LCP Amendment as well as create consistency with Ordinance No. 2025-4; and WHEREAS, the City Council held a hearing on July 22, 2025, in the Council Chambers located at 100 Civic Center Drive, Newport Beach, California. A notice of time, place and purpose of the hearing was given in accordance with the Ralph M. Brown Act. Evidence, both written and oral, was presented to, and considered by, the City Council at this public hearing. 24-7 Ordinance No. 2025- 15 Page 3 of 4 NOW THEREFORE, the City Council of the City of Newport Beach ordains as follows: Section 1: The City Council hereby approves the amendments to Chapter 5.95 (Short Term Lodging Permit) of the Newport Beach Municipal Code as set forth in Exhibit "C," and supported by the findings set forth in Exhibit "D," both of which are attached hereto and incorporated herein by reference. Section 2: The recitals provided in this ordinance are true and correct and are incorporated into the substantive portion 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 such decision shall not affect the validity or constitutionality of the remaining portions of this Ordinance. The City Council hereby declares that it would have passed this Ordinance, and each section, subsection, clause or phrase hereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases may be declared invalid or unconstitutional. Section 4: The City Council of the City of Newport Beach finds the introduction and adoption of this ordinance is exempt from environmental review under the California Environmental Quality Act ("CEQX) pursuant to Section 15060(c)(2) of the CEQA Guidelines, California Code of Regulations, Title 14, Division 6, Chapter 3, which states that an activity is not subject to CEQA if "[t]he activity will not result in a direct or reasonably foreseeable indirect physical change in the environment". The Code Amendment would allow existing residential dwelling units in mixed -use zones to be used as short term lodging. The Code Amendment would not authorize new development that would result in a physical change in the environment. Section 5: This ordinance, shall not become effective until thirty days after adoption and until the Executive Director of the Coastal Commission certifies that this ordinance complies with the Coastal Commission's May 7, 2025, action on LCP Amendment Request No. LCP-5-NPB-24-0004-1 Part A (STRs in Mixed Use Zones). Section 6: Except as expressly modified in this ordinance, all other sections, subsections, terms, clauses and phrases set forth in the Newport Beach Municipal Code shall remain unchanged and shall be in full force and effect. Section 7: The Mayor shall sign and the City Clerk shall attest to the passage of this ordinance. The City Clerk shall cause the ordinance, or a summary thereof, to be published pursuant to City Charter Section 414 and shall become final and effective as provided in Section 5 of this ordinance. Va s Ordinance No. 2025-15 Page 4 of 4 This ordinance was introduced at a regular meeting of the City Council of the City of Newport Beach held on the 22nd day of July 2025, and adopted on the 26th day of August 2025, by the following vote, to -wit: AYES: NAYS. - ABSENT: Joe Stapleton, Mayor ATTEST: Molly Perry, Interim City Clerk APPROVED AS TO FORM: CITY A TORNEY'S OFFICE Aaron C. Harp, City Attorney Attachments: Exhibit A — Ordinance No. 2023-23 Exhibit B — Ordinance No. 2025-4 Exhibit C — Code Amendment Exhibit D — Findings in Support of Code Amendment EXHIBIT "A" ORDINANCE NO. 2023-23 24-10 ORDINANCE NO. 2023-23 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH, CALIFORNIA, APPROVING A CODE AMENDMENT TO CHAPTER 5.95 (SHORT TERM LODGING PERMIT) AND TITLE 20 (PLANNING AND ZONING) OF THE NEWPORT BEACH MUNICIPAL CODE RELATED TO SHORT TERM LODGING (PA2023-0116) WHEREAS, Section 200 of the City of Newport Beach ("City") Charter vests the City Council with the authority to make and enforce all laws, rules, and regulations with respect to municipal affairs subject only to the restrictions and limitations contained in the Charter and the State Constitution, and the power to exercise, or act pursuant to any and all rights, powers and privileges, or procedures granted or prescribed by any law of the State of California; WHEREAS, Section 20.66.020 (Initiation of Amendment) of the Newport Beach Municipal Code ("NBMC") provides that the Planning Commission or the City Council of the City of Newport Beach ("City Council") may initiate an amendment to Title 20 (Planning and Zoning) ("Title 20") of the Newport Beach Municipal Code ("NBMC"); WHEREAS, on May 23, 2023, the City Council directed the Planning Commission to identify opportunities to modify Titles 20 and 21 of the NBMC, effectively initiating amendments, to facilitate new visitor serving accommodation opportunities within the Mixed -Use Water (MU-W2) and Mixed -Use Cannery Village and 15th Street (MU-CV/15th St.) zoning districts ("Code Amendment"); WHEREAS, on June 22, 2023, the Planning Commission discussed amendments to Titles 20 and 21 to facilitate new visitor serving accommodations; WHEREAS, the Planning Commission held a public hearing on October 19, 2023, in the City Council Chambers, located at 100 Civic Center Drive, Newport Beach, California. A notice of time, place and purpose of the hearing was given in accordance with California Government Code Section 54950 et seq. ("Ralph M. Brown Act") and Chapter 20.62 (Public Hearings) of the NBMC. Evidence, both written and oral, was presented to, and considered by, the Planning Commission at this hearing, WHEREAS, at the conclusion of the hearing, the Planning Commission adopted Resolution No. PC2023-037 by a majority vote (3 ayes, 1 nay) recommending approval of the Code Amendment to the City Council; and City of Newport Beach 24-11 Ordinance No. 2023-23 Page 2 of 4 WHEREAS, the City Council held duly noticed public hearing on November 28, 2023, in the City Council Chambers located at 100 Civic Center Drive, Newport Beach, California. A notice of time, place and purpose of the public hearing was given in accordance with the Ralph M. Brown Act and Chapter 20.62 (Public Hearings) of the NBMC. Evidence, both written and oral, was presented to, and considered by, the City Council at this public hearing. NOW THEREFORE, the City Council of the City of Newport Beach ordains as follows: Section 1: The City Council of the City of Newport Beach does hereby approve Code Amendment No. PA2023-0116 to amend Chapter 5.95 (Short Term Lodging Permit) and Title 20 (Planning and Zoning) of the Newport Beach Municipal Code as set forth in Exhibit "A," and supported by the findings set forth in Exhibit "B," both of which are attached hereto and incorporated herein by reference. Section 2: The recitals provided in this ordinance are true and correct and are incorporated into the substantive portion 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 such decision shall not affect the validity or constitutionality of the remaining portions of this Ordinance. The City Council hereby declares that it would have passed this Ordinance, and each section, subsection, clause or phrase hereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases may be declared invalid or unconstitutional. Section 4: The City Council of the City of Newport Beach finds the introduction and adoption of this ordinance is exempt from environmental review under the California Environmental Quality Act ("CEQA") pursuant to Section 15060(c)(2) of the CEQA Guidelines, California Code of Regulations, Title 14, Division 6, Chapter 3, which states that an activity is not subject to CEQA if "[t]he activity will not result in a direct or reasonably foreseeable indirect physical change in the environment". The Code Amendment would allow existing residential dwelling units in mixed -use zones to be used as short term lodging. The Code Amendment would not authorize new development that would result in a physical change in the environment. City of Newport Bearh W is IN 24-12 Ordinance No. 2023-23 Page 3 of 4 Section 5: Except as expressly modified in this ordinance, all other sections, subsections, terms, clauses and phrases set forth in the Newport Beach Municipal Code shall remain unchanged and shall be in full force and effect. Section 6: The Mayor shall sign and the City Clerk shall attest to the passage of this ordinance. This ordinance shall take effect upon certification of Local Coastal Program Amendment No. PA2023-0116 by California Coastal Commission. The City Clerk shall cause the ordinance, or a summary thereof, to be published pursuant to City Charter Section 414. City of Newport Beach 243 Ordinance No. 2023-23 Page 4 of 4 This ordinance was introduced at a regular meeting of the City Council of the City of Newport Beach held on the 28th day of November 2023, and adopted on the 12th day of December 2023, by the following vote, to -wit: AYES: Mayor Pro Tem O'Neill, Councilmember Avery, Councilmember Grant, Councilmember Kleiman, Councilmember Stapleton, and Councilmember Weigand NAYS: RECUSED: Mayor Blom NOA BLOM, MAYOR ATTEST: - ��� iVl P LEILANI I. BRbWN, CITY CLERK APPROVED AS TO FORM: CITY TTORNEY'S OFFICE AARON C. HARP, CITYIATTORNEY Attachments: Exhibit A — Code Amendment No. PA2023-0116 Exhibit B — Findings in Support of Code Amendment No. PA2023-0116 City of Newport Beach ,,,, EXHIBIT "A" CODE AMENDMENT NO. PA2023-0116 Section 1: The Table of Contents of Chapter 5.95 (Short Term Lodging Permit) of the Newport Beach Municipal Code is hereby amended to read as follows: Chapter 5.95 SHORT TERM LODGING PERMIT Sections: 5.95.005 Purpose and Findings. 5.95.010 Definitions. 5.95.015 Properties Eligible for Short Term Lodging Permits. 5.95.020 Permit Required. 5.95.025 Agency. 5.95.030 Application for Permit. 5.95.035 Denial of Permit. 5.95.040 Filing Fee. 5.95.042 Maximum Number of Permits. 5.95.043 Transfer of Permit. 5.95.045 Conditions. 5.95.047 Violations of Permit Conditions by Transient User, Occupant or Guest. 5.95.050 Agents and Hosting Platform Responsibilities. 5.95.055 Issuance of Administrative Subpoenas. 5.95.065 Suspensions and Revocations. 5.95.070 Permits and Fees Not Exclusive. 5.95.080 License and Permit Closure. City of Newport Beach 2415 Section 2: Subsection (B) of Section 5.95.005 (Purpose and Findings) of the Newport Beach Municipal Code is hereby amended to read as follows. B. Over a thousand dwelling units within residential zones near the City's beaches and harbor are rented for thirty (30) consecutive days or less with the vast majority of those rentals occurring during the summer when the demand for parking and City services is the greatest. Section 3: Subsection (C) of Section 5.95.005 (Purpose and Findings) of the Newport Beach Municipal Code is hereby amended to read as follows: C. Many of the occupants of short term lodging units are permanent residents of areas distant from Newport Beach and the City has no effective way to prevent occupants from continuing to violate provisions of this Code and the Cal. Pen. Code relating to noise, disturbances and disorderly conduct. The only effective way to minimize the problems associated with occupancy of short term lodging units is to impose responsibility on the owner of the property, either personally or through an agent, to control the conduct of guests and occupants. Section 4: Subsection (L) of Section 5.95.005 (Purpose and Findings) of the Newport Beach Municipal Code is hereby amended to read as follows: L. The restrictions of this chapter are necessary to preserve the City's housing stock, the quality and character of the City's residential neighborhoods and mixed -use areas as well as to prevent and address the impacts on residential neighborhoods posed by short term lodgings. Section 5: Subsection (M) of Section 5,95.005 (Purpose and Findings) of the Newport Beach Municipal Code is hereby added to read as follows: M. With appropriate restrictions, certain mixed -use zones present an opportunity to accommodate tourists while protecting the City's residential zones. Section 6: Section 5.95.010 (Definitions) of the Newport Beach Municipal Code is hereby amended to read as follows: 5.95.010 Definitions. For the purpose of this chapter, the following definitions shall apply: A. "Accessory dwelling unit" shall have the same definition as set forth in Chapter 20.70. B. "Agent" shall mean any person who is authorized in writing by the owner to represent and act for an owner. (�A. is y f N p w c.). t B e a ch 24-16 C. "Booking transaction" shall mean any reservation or payment service provided by a person who facilitates a short term lodging rental transaction between a transient user and owner for the use of a unit for a period of thirty (30) consecutive days or less. D. "Gross floor area" shall mean the area of the lodging unit that includes the surrounding exterior walls and any interior finished portion of a structure that is accessible and that measures more than six (6) feet from finished floor to ceiling. Stairwells and elevator shafts above the first (1) level shall be excluded from the calculation of gross floor area. E. "Home -sharing" shall mean an activity whereby the owner hosts a transient user in the owner's lodging unit, for compensation, for periods of less than thirty (30) consecutive calendar days, during which time the owner of the unit lives on site, in the unit, throughout the transient user's stay and the owner, the transient user and any other occupants live together in the same unit as a single housekeeping unit. F. "Hosting platform" shall mean a person, other than an owner or agent, who participates in the short term lodging business by facilitating a booking transaction using any medium of facilitation. G. "Lodging unit" or "unit" shall mean a "dwelling unit" as that term is defined in Chapter 20.70. An accessory dwelling unit shall not be considered a lodging unit or unit for purposes of this chapter. H. "Multi -use area" shall mean those areas of the City designated by Title 20 and Title 21 as Mixed -Use Water (MU-W2) and Mixed -Use Cannery Village and 15th Street (MU- CV/15th St.). I. "Owner" shall mean the person(s) that hold(s) legal and/or equitable title to the lodging unit. K. "Residential district" shall mean those areas of the City so designated by Title 20 as well as any other area in the City designated for a residential use as part of a planned community development plan, specific area plan or planned residential district. J. "Short term" shall mean a lodging unit that is rented or leased as a single housekeeping unit for a period of thirty (30) consecutive days or less. This also includes home -sharing. L. "Short term lodging unit registry" shall mean the published registry maintained by the City that sets forth a list of all owners and the address of all units that have a valid short term lodging permit and business license with the City, a copy of which is available, without charge, to any person who requests a copy and which shall be accessible on the City's website. M. "Single housekeeping unit" shall have the same definition as set forth in Chapter 20.70. City of PJewport 24-17 N. "Transient" or "transient user" shall mean any person or persons who, for any period of thirty (30) consecutive days or less either at his or her own expense, or at the expense of another, obtains lodging in a lodging unit or the use of any lodging space in any unit, for which lodging or use of lodging space a charge is made. Section 7: The title and contents of Section 5.95.015 (Residential Properties Eligible for Short Term Lodging Permits) of the Newport Beach Municipal Code are hereby amended to read as follows: 5.95.015 Properties Eligible for Short Term Lodging Permits. Only properties in a residential district or multi -use area that are authorized under Titles 20 and 21 and this chapter shall be eligible for a short term lodging permit. Subsequent to June 1, 2004, no annual permit shall be issued to or renewed for any dwelling unit on any parcel zoned for "Single -Unit Residential (R-1)" or that is designated for a single-family residential use as part of a planned community development plan, specific area plan or planned residential district, unless a permit has previously been issued for that lodging unit and the permit was not subsequently revoked. Section 8: Section 5.95.020 (Permit Required) of the Newport Beach Municipal Code is hereby amended to read as follows: 5.95.020 Permit Required. No owner of a lodging unit shall advertise for rent or rent a lodging unit located within a residential district or multi -use area for a short term without a valid short term lodging permit for that unit issued pursuant to this chapter. Section 9: Section 5.95.030 (Application for Permit) of the Newport Beach Municipal Code is hereby amended to read as follows: 5.95.030 Application for Permit. An application for an annual short term lodging permit, renewal of a short term lodging permit, reinstatement of a short term lodging permit or transfer of a short term lodging permit shall be filed with the Finance Director upon forms provided by the City. A. An application for a new permit, renewal permit, the reinstatement of a permit or the transfer of a permit shall contain the following information: 1. The name, address and telephone number of the owner of the unit for which the short term lodging permit is to be issued. 2. The name, address and telephone number of the agent, if any, of the owner of the unit. .,A y of Ne\A/PortRearh 24-18 3. Evidence of a valid business license issued by the City for the separate business of operating a short term lodging unit or units. 4. The number of bedrooms in the lodging unit. 5. The gross floor area of the lodging unit. 6. The number of parking spaces available on site and a description indicating the location and size of each parking space. 7. A nuisance response plan, which sets forth the owner's plan for handling disruptive transient users. 8. A certification that the applicant has reviewed the covenants, conditions and restrictions, if any, and a short term use is permitted at the location pursuant to the terms of the covenants, conditions and restrictions, if any. 9. Acknowledgment of receipt and inspection of a copy of all regulations pertaining to the operation of a short term lodging unit. 10. Such other information as the Finance Director deems reasonably necessary to administer this chapter. B. An application for the renewal of a short term lodging permit shall be filed within thirty (30) days of the short term lodging permit's expiration, or the short term lodging permit shall be deemed abandoned. C. An application for the reinstatement of a short term lodging permit closed by the Finance Director pursuant to Section 5.95.080 shall be filed within thirty (30) days of the date the permit was closed by the Finance Director, or the short term lodging permit shall be deemed abandoned. D. An application for the reinstatement of a previously suspended short term lodging permit shall be filed within thirty (30) days of the end of the suspension period, or the short term lodging permit shall be deemed abandoned. E. If any application is deemed incomplete, which shall be determined in the sole discretion of the Finance Director, the application shall be completed within thirty (30) days of the service of notice that the application is incomplete, which shall be served in accordance with Section 1.08.080, or the application and any associated permit shall be deemed abandoned. F. If good causes exist, as determined in the sole discretion of the Finance Director, the Finance Director may extend the deadlines set forth in subsections (B) through (E) of this section. City Of Newport Beacil 24-19 Section 10: Section 5.95.035 (Denial of Permit) of the Newport Beach Municipal Code is amended to read as follows: 5.95.035 Denial of Permit. If permits are available for issuance, no timely application filed by an owner for an annual permit, renewal of a permit, reinstatement of a permit or transfer of a permit for a unit eligible to be used as a short term lodging unit, as provided for in Section 5.95.015 and this Code, shall be denied unless: the owner does not have a current valid business license; the owner has failed to pay transient occupancy tax, the visitor service fee, a penalty, a fine or inspection cost, due and owing to the City; the nuisance response plan is deemed inadequate by the Finance Director; the short term lodging permit for the same unit and issued to the same owner has been revoked, or the short term lodging permit is not eligible for reinstatement. Section 11: Section 5.95.042 (Maximum Number of Permits) of the Newport Beach Municipal Code is hereby amended to read as follows: 5.95.042 Maximum Number of Permits. A. Except as provided in subsection (B), the maximum number of short term lodging permits in a residential district shall be limited to one thousand four hundred seventy- five (1,475) permits at any time. If there are more than one thousand four hundred seventy-five (1,475) valid permits in residential districts as of January 13, 2022, an owner shall be permitted to renew, reinstate, or transfer a valid permit in accordance with the provisions of this chapter; however, no new permit shall be issued to any person on the waiting list, as described in subsection (F) of this section, until the total number of residential district permits does not exceed one thousand four hundred seventy-five (1,475). To avoid wholesale conversion of existing and new housing complexes into short term lodgings within the residential district, multi -unit developments with five (5) or more units may permit a maximum of twenty (20) percent of the total number of units to be short term lodgings (rounded down to the nearest whole number). B. The maximum number of short term lodging permits in the multi -use area shall be limited to seventy-five (75) permits. No new permit shall be issued to any person on the waiting list, as described in subsection (F) of this section, until the total number of multi -use area permits is less than seventy-five (75). Notwithstanding the foregoing, the seventy-five (75) permit maximum shall not apply to a short term lodging unit that was legally established as of November 25, 2010, on a lot within a Mixed -Use Coastal Zoning District provided the owner maintains a valid short term lodging permit that is not subsequently revoked or abandoned. C. For purposes of calculating the maximum number of short term lodging permits available as provided in subsection (A) or (B) of this section, a permit shall be deemed valid and unavailable unless abandoned in accordance with Sections 5.95.030(B) through (F), and/or Section 5.95.043(B) or, if the short term lodging permit has been revoked and the time has run to seek administrative or judicial review of the decision. pity of I���nrport Beach Z,_Zo D. An owner who has a short term lodging permit, or an owner seeking to reinstate a short term lodging permit that has not been abandoned in accordance with Sections 5.95.030(B) through (F), shall have priority to renew or reinstate the permit over anyone on the waiting list, as described in subsection (F) of this section. E. An owner seeking to transfer a valid short term lodging permit that files an application within the time frames set forth in Section 5.95.043(A) shall have priority to transfer the permit over anyone on the waiting list, as described in subsection (F) of this section. F. If the City has issued the maximum number of permits available, the City shall maintain a waiting list. An application for placement on the waiting list shall be submitted to the Finance Director, on a form approved by the Finance Director, and shall be accompanied by a fee established by resolution of the City Council. In the event a short term lodging permit becomes available, the Finance Director shall notify the person or persons next in order on the waiting list as provided for in Section 1.08.080. The notice shall specify that applications will be accepted for ten (10) days after the date of the notice, and that failure to apply within the ten (10) day period shall result in removal of the person or persons receiving notice from the waiting list. The City shall not be liable for a failure to notify any person or persons on the waiting list since placement on the list does not create any property right in any person or persons on the list nor any contractual obligation on the part of the City. Section 12: Subsections A(19) through A(22) of Section 5.95.045 (Conditions) of the Newport Beach Municipal Code are hereby amended to read as follows: 19. The owner shall allow the City to inspect the short term lodging unit to confirm the number of bedrooms, gross floor area, and number/availability of parking spaces, seven (7) days after the City serves the owner with a request for inspection in accordance with Section 1.08.080. If, based on the inspection, it is determined that the information submitted to the City in accordance with Section 5.95.030 was false, in addition to any other remedy set forth in this chapter, the owner agrees that the owner shall be liable for the cost of conducting the inspection. 20. The owner shall provide the City with a copy of any written rental agreement(s) and the good neighbor policy, within seven (7) days after the City serves the owner with a notice of request for written rental agreements and the good neighbor policy in accordance with Section 1.08.080. 21. Neither an owner nor the owner's agent shall rent, let, advertise for rent, or enter into an agreement for the rental of any lodging unit, for less than two (2) consecutive nights. 22. The owner shall: a. Require every transient user and guest of the transient user to comply with all State and local laws that regulate parking while staying at or visiting the short term lodging unit; City of Newport Beach 24-21 b. Require every transient user to provide the owner with the license plate number for all vehicles which are used by the transient user or the transient user's guest while staying at or visiting the short term lodging unit; and C. Provide the City with the vehicle license plate number(s) for every vehicle which was used by the transient user or the transient user's guest while staying at or visiting the short term lodging, within seven (7) days after the City serves the owner with a notice of request for the vehicle license plate number(s) in accordance with Section 1.08.080. Section 13: Section 5.95.055 (Issuance of Administrative Subpoenas) of the Newport Beach Municipal Code is hereby amended to read as follows: 5.95.055 Issuance of Administrative Subpoenas. The City Manager shall have the authority to issue and serve administrative subpoenas to the owner, agent or hosting platform, as necessary, to obtain specific information regarding short term 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 short term rental listing complies with this chapter. Any subpoena issued pursuant to this section shall not require the production of information sooner than thirty (30) days from the date of service. A person that has been served with an administrative subpoena may seek judicial review during that thirty (30) day period. Failure to respond to an administrative subpoena in accordance with the terms set forth therein shall be punishable in accordance with Section 5.95.060 and the City may file a judicial action to compel compliance with the subpoena. Section 14: Section 5.95.060 (Violations, Penalties and Enforcement) of the Newport Beach Municipal Code is hereby deleted in its entirety. Section 15: Subsection A(3) of Section 5.95.065 (Suspensions and Revocations) of the Newport Beach Municipal Code is hereby amended to read as follows.. 3. If a lodging unit that is subject to a short term lodging permit has been the location of two (2) or more loud or unruly gatherings, as defined in Chapter 10.66, while the lodging unit was occupied on a short term basis, within any twenty-four (24) month period, the permit may be suspended for a period of one (1) year or revoked in accordance with subsection (B) of this section. A loud or unruly gathering that occurred prior to the passage of fourteen (14) days from the mailing of notice to the owner in compliance with Section 10.66.030(D) shall not be included within the calculation of the two (2) or more loud or unruly gatherings required to revoke a short term lodging permit. 1,�.i ! N,_.,wpoftBeach 24-22 Section 16: Subsection (B) of Section 5.95.065 (Suspensions and Revocations) of the Newport Beach Municipal Code is hereby amended to read as follows- B. Permits shall be suspended or revoked, only in the manner provided in this section. 1. The Finance Director shall investigate whenever he or she has reason to believe that an owner has submitted an application that contains false information or committed a violation of a permit condition, this Code, state or federal law related to a permitted unit. Such investigation may include, but is not limited to, on -site property inspections. Should the investigation reveal substantial evidence to support a finding that warrants a suspension or revocation of the short term lodging permit, the Finance Director shall issue written notice of intention to suspend or revoke the short term lodging permit. The written notice shall be served on the owner in accordance with Section 1.08.080, and shall specify the facts which, in the opinion of the Finance Director constitute substantial evidence to establish grounds for imposition of the suspension and/or revocation, and specify the proposed time the short term lodging permit shall be suspended and/or that the short term lodging permit shall be revoked within thirty (30) days from the date the notice is given, unless the owner files with the Finance Director, before the suspension and/or revocation becomes effective, a request for hearing before a hearing officer, who shall be retained by the City, and pays the fee for the hearing established by resolution of the City Council. 2. If the owner requests a hearing and pays the hearing fee, established by resolution of the City Council, within the time specified in subsection (13)(1) of this section, the Finance Director shall serve written notice on the owner, pursuant to Section 1.08.080, setting forth the date, time and place for the hearing. The hearing shall be scheduled not less than fifteen (15) days, nor more than sixty (60) days, from the date on which notice of the hearing is served by the Finance Director. The hearing shall be conducted according to the rules normally applicable to administrative hearings. At the hearing, the hearing officer will preside over the hearing, take evidence and then submit proposed findings and recommendations to the City Manager. The City Manager shall suspend or revoke the short term lodging permit only upon a finding that a violation has been proven by a preponderance of the evidence, and that the suspension or revocation is consistent with the provisions of this section. The City Manager shall render a decision within thirty (30) days of the hearing and the decision shall be final as to the City but subject to judicial review pursuant to Cal. Code Civ. Proc. Section 1094.5. Section 17: Section 5.95.080 (License and Permit Closure) of the Newport Beach Municipal Code is hereby amended to read as follows: pity of Newport Beach 24-23 5.95.080 License and Permit Closure. A. Any owner that has ceased operating a short term lodging unit shall inform the Finance Director in writing of the date of the last rental, and having done such, the short term lodging permit shall be closed. The City will send a final transient occupancy tax and visitor service fee bill, which will be due and payable thirty (30) days from the date of the invoice. B. The Finance Director shall close any permit that has no short term lodging activity for a period of two (2) consecutive annual reporting periods as evidenced by the owner and/or agent remitting zero dollars ($0.00) on the required transient occupancy tax and visitor service fee forms or the owner/agent failing to return these forms. After any permit closure pursuant to this subsection, the owner may reapply one (1) time for reinstatement of the short term lodging permit which shall be processed in accordance with Section 5.95.030, Any subsequent closure of the short term lodging permit pursuant to this subsection shall not be eligible for reinstatement. Section 18: Rows entitled "Visitor Accommodations, Residential" and "Short Term Lodging" are hereby added to the "Residential Uses" section of Table 2-8 (Allowed Uses) of Section 20.22.020(C) (Mixed -Use Zoning Districts Land Uses and Permit Requirements) of the Newport Beach Municipal Code to read as follows: Mixed -Use Zoning Districts Permit Requirements P Permitted by Right TABLE 2-8 Conditional Use Permit (Section ALLOWED USES AND CUP 20.52.020) PERMIT REQUIREMENTS MUP Minor Use Permit (Section 20.52.020) LTP Limited Term Permit (Section 20.52.040) — Not Allowed Land Use See Part 7 of this title for MU-MM MU- Specific land use definitions. MU-V (6) MU-DW CV/15th Use See Chapter 20.12 for St. (7) Regulations unlisted uses. Residential Uses Accessory Dwelling Units and P P P P Section Junior Accessory Dwelling 20.48.200 Units (amity of Newport Beach Z,_Z, Mixed -Use Zoning Districts Permit Requirements P Permitted by Right TABLE 2-8 Conditional Use Permit (Section ALLOWED USES AND CUP 20.52.020) PERMIT REQUIREMENTS MUP Minor Use Permit (Section 20.52.020) LTP Limited Term Permit (Section 20.52.040) — Not Allowed Land Use See Part 7 of this title for MU-MM MU- Specific land use definitions. MU-V (6) MU-DW CVl15th Use See Chapter 20.12 for St. (7) Regulations unlisted uses. Single -Unit Dwellings Located on 1 st floor — — — P (3) Section 20.48,130 Located above 1 st floor P (1) — — P (3) Section 20.48.130 Multi -Unit Dwellings Located on 1 st floor — P (1)(2) P (1) P (3) Section 20.48.130 Located above 1 st floor P (1) P (1)(2) P (1) P (3) Section 20.48.130 Two -Unit Dwellings Located on 1 st floor — — — P (3) Section 20.48.130 Located above 1 st floor P (1) — — P (3) Section 20.48.130 Home Occupations P P (1) P P Section 20.48.130 Live -Work Units P P (1)(2) P P (3) Visitor Accommodations, Residential Short Term Lodging — — — P Chapter 5.95 Section 19: Rows entitled "Visitor Accommodations, Residential" and "Short Term Lodging" are hereby added to the "Residential Uses" section of Table 2-9 City of Newport Beech 24-25 (Allowed Uses) of Section 20.22.020(C) (Mixed -Use Zoning Districts Land Uses and Permit Requirements) of the Newport Beach Municipal Code to read as follows - Mixed -Use Zoning Districts Permit Requirements P Permitted by Right CUP Conditional Use Permit TABLE 2-9 (Section 20.52.020) ALLOWED USES AND PERMIT REQUIREMENTS Minor Use Permit (Section MUP 20.52.020) Limited Term Permit LTP (Section 20.52.040) — Not allowed Land Use See Part 7 of this title for land Specific Use use definitions. MU-W1 (5)(6) MU-W2 Regulations See Chapter 20.12 for unlisted uses. Residential Uses Accessory Dwelling Units and Junior P P Section Accessory Dwelling Units 20.48.200 Single -Unit Dwellings Located on 1st floor — — Located above 1 st floor P (1) P (2) Section 20,48.130 Multi -Unit Dwellings Located on 1 st floor — — Located above 1 st floor P (1) P (2) Section 20.48.130 Two -Unit Dwellings Located on 1 st floor — — Located above 1 st floor P (1) P (2) Home Occupations P P (2) Section 20.48.110 Visitor Accommodations, Residential Short Term Lodging — P Chapter 5.95 City of Ne\.Alport Beach 24-26 Section 20: Subsection A(3)(f) of Section 20.38.060 (Nonconforming Parking) of the Newport Beach Municipal Code is hereby amended to read as follows: f. Outside the coastal zone, dwellings within the residential development shall not be rented for periods of thirty (30) days or less. Refer to subsection (A)(4)(f) of this section for short term lodging allowances for developments within the coastal zone; and Section 21: Subsection B(4)(h) of Section 20.48.205 (SB 9 Housing Developments and Urban Lot Splits in Single -Unit Residential Zoning Districts) of the Newport Beach Municipal Code is hereby amended to read as follows: h. Short Term Lodging. Any dwelling unit permitted pursuant to an SB 9 housing development or urban lot split shall not be rented for periods of thirty (30) days or less. Section 22: The definition of "Bed and breakfast inn" of Section 20.70.020 (Definitions of Specialized Terms and Phrases) of the Newport Beach Municipal Code is hereby amended to read as follows: "Bed and breakfast inn" means a dwelling unit that offers guest rooms or suites for a fee for thirty (30) days or less, with incidental eating and drinking service provided from a single kitchen for guests only. Section 23: The title and definition of "Short-term lodging" of Section 20.70.020 (Definitions of Specialized Terms and Phrases) of the Newport Beach Municipal Code is amended to read as follows: "Short term lodging" means a dwelling unit that is rented or leased as a single housekeeping unit (see "Single housekeeping unit") for a period of less (30) days or less, subject to the requirements of Chapter 5.95 (Short Term Lodging Permits) and any additional standards required by the City Manager. City of Newport Beach 24-27 FINDINGS IN SUPPORT OF CODE AMENDMENT NO. PA2023-0116 1. An amendment to Chapter 5.95 (Short Term Lodging Permit) and Title 20 (Planning and Zoning) of the NBMC is a legislative act. There are no required findings for either approval or denial of such amendments. Notwithstanding the foregoing, the Code Amendment is consistent with the following goals and policies of the City's General Plan: Land Use Element Policy LU 2.6 (Visitor Serving Uses), which states, "Provide uses that serve visitors to Newport Beach's ocean, harbor, open spaces, and other recreational assets, while integrating them to protect neighborhoods and residents." The Code Amendment would allocate and allow 75 short term lodging permits within the MU-W2 and MU-CV/15th St. zones, both of which are located in the Coastal Zone, subject to specific regulations that would require the operation of short-term lodging would be subject to a permit issued by the City, managed by professional management, and not impact parking in the neighborhood. The Code Amendment would also maintain the existing Citywide maximum cap of 1,550 permits by establishing a maximum cap of 1,475 permit with residential coastal zoning districts and a maximum cap of 75 permit within the MU-W2 and MU-CV/15th St. coastal zoning districts. This would maintain the existing allowance for this type of visitor accommodations in the additional visitor accommodations in the City without altering existing provisions and regulations on short term lodging previously adopted to protect residential neighborhoods. Land Use Element Goal LU 4 states, "Management of growth and change to protect and enhance the livability of neighborhoods and achieve distinct and economically vital business and employment districts, which are correlated with supporting infrastructure and public services and sustain Newport Beach's natural setting." In specific mixed use zones, permit holders would be permitted to operate short term lodging. This provides additional opportunities for properties in the mixed -use zones to achieve and maintain economic viability and avoids new impacts on residential neighborhoods. 2. A Local Coastal Program Amendment is also underway to ensure the regulations within the Coastal Zone are consistent with the Code Amendment. City of Newport Beach 24_28 STATE OF CALIFORNIA } COUNTY OF ORANGE } ss. CITY OF NEWPORT BEACH } I, Leilani I. Brown, City Clerk of the City of Newport Beach, California, do hereby certify that the whole number of members of the City Council is seven; that the foregoing ordinance, being Ordinance No. 2023-23 was duly introduced on the 28'" day of November, 2023, at a regular meeting, and adopted by the City Council at a regular meeting duly held on the 12th day of December, 2023, and that the same was so passed and adopted by the following vote, to wit: AYES: Mayor Pro Tern Will O'Neill, Councilmember Brad Avery, Councilmember Robyn Grant, Councilmember Lauren Kleiman, Councilmember Joe Stapleton, Councilmember Erik Weigand NAYS: None RECUSED: Mayor Noah Blom IN WITNESS WHEREOF, I have hereunto subscribed my name and affixed the official seal of said City this 13t" day of December, 2023. Leilani I. Brown, MMC City Clerk City of Newport Beach, California CERTIFICATE OF PUBLICATION STATE OF CALIFORNIA } COUNTY OF ORANGE } ss. CITY OF NEWPORT BEACH } I, Leilani I. Brown, City Clerk of the City of Newport Beach, California, do hereby certify that Ordinance No. 2023-23 has been duly and regularly published according to law and the order of the City Council of said City and that same was so published in The Daily Pilot, a newspaper of general circulation on the following dates: Introduced Ordinance: December 2, 2023 Adopted Ordinance: December 16, 2023 In witness whereof, I have hereunto subscribed my name this P day of December, 2023. r Leilani I. Brown, MMC City Clerk City of Newport Beach, California . _ Eq ToWo .-. 24-29 EXHIBIT "B" ORDINANCE NO. 2025-4 24-30 ORDINANCE NO. 2025-4 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH, CALIFORNIA, AMENDING SECTION 1.08.120 (DEFINITIONS) OF TITLE 1 (GENERAL PROVISIONS), SECTION 5.95.042 (MAXIMUM NUMBER OF PERMITS), SECTION 5.95.043 (TRANSFER OF PERMIT), AND SECTION 5.95.065 (SUSPENSIONS AND REVOCATIONS) OF CHAPTER 5.95 (SHORT TERM LODGING PERMIT) OF TITLE 5 (BUSINESS LICENSES AND REGULATIONS) OF THE NEWPORT BEACH MUNICIPAL CODE TO UPDATE ADMINISTRATIVE PROCEDURES RELATED TO GOOD CAUSE DETERMINATIONS AND THE EXTENSION OF DEADLINES WHEREAS, Section 200 of the City Charter, of the City of Newport Beach ("City"), vests the City Council with the authority to make and enforce all laws, rules and regulations with respect to municipal affairs subject only to the restrictions and limitations contained in the City Charter and the State Constitution, and the power to exercise, or act pursuant to any and all rights, powers, and privileges or procedures granted or prescribed by any law of the State of California; WHEREAS, the City is committed to ensuring the safety, health, and welfare of all its residents, visitors, and businesses; WHEREAS, Chapter 5.95 (Short Term Lodging Permit) of the Newport Beach Municipal Code ("NBMC"), regulates the rental of dwelling units, for less than thirty (30) consecutive calendar days, to help preserve the City's housing stock, maintain the quality and character of the City's residential neighborhoods, and limit the impacts of short term lodgings on residential neighborhoods; WHEREAS, Section 5.95.042 (Maximum Number of Permits), which imposes a limit on the number of active short term lodging permits, Section 5.95.043 (Transfer of Permit), which imposes limits on the transfer of short term lodging permits, and Section 5.95.065 (Suspensions and Revocations), which sets forth the applicable procedures for the suspension and revocation of short term lodging permits, contain fixed deadlines that cannot be extended; WHEREAS, as part of the administration of the short term lodging permit program, the Finance Director has determined that, in certain circumstances, good cause may exist to extend deadlines for the transfer of permits or the filing of a request for hearing; City of Newport Beach 24-31 Ordinance No. 2025-4 Page 2 of 11 WHEREAS, to ensure that the short term lodging permit provisions of the NBMC are administered in the most fair and efficient manner, the Finance Director requests the City Council amend Section 5.95.042 (Maximum Number of Permits), Section 5.95.043 (Transfer of Permit), and Section 5.95.065 (Suspensions and Revocations) to authorize the Finance Director to extend deadlines if the Finance Director determines that there is good cause to grant an extension; WHEREAS, several sections throughout the NBMC provide exceptions from the provisions of the NBMC based on a determination that good cause exists, such that adding a globally applicable definition for good cause will provide consistency and minimize redundancy; WHEREAS, Chapter 1.08 (Rules of Construction) sets forth provisions that are globally applicable throughout the NBMC, including but not limited to, Section 1.08.120 (Definitions) which defines terms that are commonly used throughout the NBMC, except where a more specific definition is provided or the context clearly requires otherwise; and WHEREAS, the City Council desires to amend the NBMC to increase efficiency and ensure that the NBMC is administered in an efficient and fair manner by adding a global definition of good cause to Section 1.08.120 (Definitions), and by amending Section 5,95.042 (Maximum Number of Permits). Section 5.95.043 (Transfer of Permit), and Section 5.95.065 (Suspensions and Revocations) to authorize the Finance Director to grant an extension where the Finance Director determines goods cause exists. NOW THEREFORE, the City Council of the City of Newport Beach ordains as follows: Section 1: Section 1.08.120 (Definitions) is hereby amended in its entirely to read as follows: 1.08.120 Definitions. Unless a more specific definition is provided or the context in which they are used clearly requires otherwise, the following terms and phrases used in this Code shall have the meaning ascribed to them in this section: Assistant City Manager. The term "Assistant City Manager" means an Assistant City Manager working in the City Manager's office. City of �IQ Port Beach 24-32 Ordinance No. 2025-4 Page 3 of 11 Building Official. The term "Building Official" means the Building Manager or Chief Building Official of the City's Community Development Department or the person designated by the Community Development Director as the Building Official. California Code of Regulations. The terms "California Code of Regulations" or "CCR" means the State administrative regulations that are cited as "title number CCR section number" or "title number CCR division number, chapter number, article number, section number." California Environmental Quality Act or CEQA. The term "California Environmental Quality Act" or "CEQA" means the California Environmental Quality Act (California Public Resources Code Section 21000 et seq.) and the State CEQA Guidelines (14 CCR Section 15000 et seq.). Chief of Police. The term "Chief of Police" or "Police Chief' means the individual who manages and directs the City's Police Department. City. The term "City" means the City of Newport Beach, a municipal corporation and charter city, or, when referring to territory or territorial limits, it means the area within the territorial City limits of the City and such territory outside the City over which the City has jurisdiction or control by virtue of any law. City Attorney. The term "City Attorney" means the City Council appointed official who occupies the position as the City Attorney of the City. City Charter. The term "City Charter" means the City Charter of the City. City Clerk. The term "City Clerk" means the City Council appointed official who occupies the position as the City Clerk of the City. City Council. The term "City Council" or "Council" means the City Council of the City of Newport Beach. City Engineer. The term "City Engineer" means the City Engineer of the City's Public Works Department, or the individual designated by the Public Works Director as the City Engineer. City of Newport Beach 2433 Ordinance No. 2025-4 Page 4 of 11 City Hall or Civic Center. The term "City Hall" or "Civic Center" means the City's Civic Center located at 100 Civic Center Drive, Newport Beach, California, that includes most administrative offices of the City and related parking. City Manager. The term "City Manager" means the City Council appointed official who occupies the position as the chief administrative officer of the City. City Treasurer. The term "City Treasurer" means the individual appointed as the City's Finance Director. Code. The term "Code" means the Newport Beach Municipal Code. Community Development Director. The term "Community Development Director" means the individual who manages and directs the City's Community Development Department. Consumer Price Index. The term "Consumer Price Index" means the Los Angeles -Long Beach -Anaheim, California Area, All Urban Consumers, All Items, Base Period (1982-84 = 100), or successor index, as published by the United States Department of Labor, Bureau of Labor Statistics. County. The term "County" means the County of Orange. Day. The term "day" or "days" means a calendar day, unless otherwise specifically provided. Day Care Center. The term "day care center" means a child care —infant center, and child care center (preschool) licensed by the State Department of Social Services that is not located on a residentially zoned property including, but not limited to, Bright Horizons at Newport Beach; Carden Hall; Catalyst Kids -Newport Heights; Christ Church by the Sea Children's Center; Environmental Nature Center (ENC) Nature Preschool; Miraculous Milestones; Montessori Way Learning Center, Inc., Newport Coast Child Development Preschool; Newport Harbor Lutheran Church; St. Andrew's Preschool; St. Mark Community Preschool; St. Matthew's Montessori Preschool; Temple Bat Yahm; and Tutor Time Child Care/Learning Center. Designee. The term "designee" means a position, employee, or person that is authorized to fulfill a duty, obligation or responsibility. City of NP,-,w,,�Qrt Bach 24-34 Ordinance No. 2025-4 Page 5 of 11 District Attorney. The term "District Attorney" means the Orange County District Attorney. Fair Political Practices Commission. The term "Fair Political Practices Commission" or "FPPC" means the five -member independent, nonpartisan commission that has primary responsibility for the impartial and effective administration of the Political Reform Act. Finance Director. The term ''Finance Director" means the individual who manages and directs the City's Finance Department. Fire Chief. The term "Fire Chief' means the individual who manages and directs the Fire Department. Fire Marshal. The term "Fire Marshal" means the Fire Marshal of the City's Fire Department, or the individual designated by the Fire Chief as the Fire Marshal. Good Cause. The term "good cause" means that there is substantial evidence that unusual or unforeseen circumstances justify the taking of a particular action, which circumstances include, but are not limited to, a medical emergency; a delay caused by events beyond the person's control; a natural disaster; a weather -related delay; an administrative error; or health and safety concerns. Harbor Commission. The term "Harbor Commission" means the Harbor Commission of the City. Harbor Department. The term "Harbor Department" means the Harbor Department of the City. Any provision within this Code or any uncodified ordinance or resolution referring to the Harbor Resources Division shall mean the Harbor Department. Harbormaster. The term "Harbormaster" means the individual who manages and directs the Harbor Department. Any provision within this Code or any uncodified ordinance or resolution referring to the Harbor Resources Manager shall mean the Harbormaster. Health Officer. The term "Health Officer" means the Orange County Health Officer. City of Newport Beach 24-35 Ordinance No. 2025-4 Page 6 of 11 Human Resources Director. The term "Human Resources Director" means the individual who manages and directs the City's Human Resources Department. Library Services Director. The term "Library Services Director" means the individual who manages and directs the City's Public Library System. Oath. The term "oath" means and includes affirmation. Office. The term "office" means the title of any officer, employee, or office, of the City of Newport Beach. Owner. The term "owner," applied to a building or land, means and includes any part owner, joint owner, tenant, tenant in common or joint tenant, of the whole or a part of such building or land. Pacific Ocean. The term "Pacific Ocean" means the waters off of the City from the beach to a point three nautical miles seaward. Person. The term "person" means and includes any individual, firm, partnership, joint venture, limited liability company, association, social club, fraternal organization, corporation, estate, trust, business trust, receiver, assignee for the benefit of creditors, trustee, trustee in bankruptcy, syndicate, the United States, this State, any county, city and county, municipality, district, or other political subdivision of the State, or any other group or combination acting as a unit. Public park or public facility. The terms "public park" or "park facility" means all publicly owned, managed or leased land that is open to the public, walking or hiking trails, parks and park -related buildings, facilities and improvements, and any school facilities when they are in use as recreational or community center facilities and under the control of the Director of the Recreation and Senior Services Department including, but not limited to, Arroyo Park; 38th Street Park; Back Bay View Park; Bayside Park; Bayview Park; Begonia Park; Big Canyon Park; Bob Henry Park; Bolsa Park; Bonita Canyon Sports Park; Bonita Creek Park & Community Center; Buffalo Hills Park; Canyon Watch Park; Carroll Beek Community Center and Balboa Island Park; Castaways Park; Channel Place Park; Civic Center Community Center; Civic Center Park; Cliff Drive Park and Community Center; Coastal Peak Park; Corona del Mar Pocket Park; Corona del Mar State Beach; Dog Park; Eastbluff Park and Boys and Girls Club; Galaxy City of IP\NA/port 13P-arh 24-36 Ordinance No. 2025-4 Page 7 of 11 View Park; Gateway Park; Grant Howald Park & Community Youth Center; Harbor View Nature Park; Harbor Watch Park; Inspiration Point; Irvine Terrace Park; Jasmine Creek Park; John Wayne Park and Theater Arts Center; Kings Road Park; L Street Park; Lake Ave Park; Lido Park; Lincoln Athletic Center; Lookout Point; Los Trancos Canyon View Park (lower, middle, upper); Lower Castaways Park; M Street Park; Marian Bergeson Aquatic Center; Marina Park; Mariners Park and VJ Community Center; Mesa Birch Park; Miramar Park; Myrtle Park; Newport Aquatic Center; Newport Coast Community Center; Newport Island Park; Newport Shores Park; North Star Beach; OASIS Senior Center; Old School Park; Peninsula Park; Rhine Wharf Park; San Joaquin Hills Park and Lawn Bowling Center; San Miguel Park; Spyglass Hill Park; Spyglass Hill Reservoir Park; Sunset Ridge Park; Sunset View Park; Upper Buck Gully Reserve; Uptown Park; Veterans Memorial Park; West Jetty View Park; West Newport Community Center; West Newport Park; and Westcliff Park. Public Works Director. The term "Public Works Director" means the individual who manages and directs the City's Public Works Department. Recreation and Senior Services Director. The term "Recreation and Senior Services Director" means the individual who manages and directs the City's Recreation and Senior Services Department. Revenue Division. The term "Revenue Division" means the City's Finance Department Revenue Division. Risk Manager. The term "Risk Manager" means the Risk Manager of the City's Human Resources Department, or the individual appointed by the Human Resources Director as the Risk Manager. School. The term "school" means an institution of learning, whether public or private, which offers in -person instruction in grades K through twelve (12) in those courses of study required by the California Education Code and is licensed by the State Board of Education. This definition includes all kindergarten, elementary, junior high, senior high or any special institution of learning under the jurisdiction of the State Department of Education including, but not limited to, Andersen Elementary School; Carden Hall; Corona del Mar Middle and High School; Eastbluff Elementary School; Ensign Intermediate School; Harbor Day School; Harbor View Preschool and Elementary School; Lincoln Elementary School; Mariners Elementary School; Newport Christian Academy; Newport City of Newport Beach 24-37 Ordinance No. 2025-4 Page 8 of 11 Coast Preschool and Elementary School; Newport Preschool and Elementary School; Newport Harbor High School; Newport Heights Elementary School; Our Lady Queen of Angels Catholic School; Pacifica Christian High School; and Sage Hill High School. State. The term "State" means the State of California. Street. The term "street" means and includes all streets, roads, highways, avenues, lanes, alleys, courts, boulevards, places, squares, curbs, or other public ways in this City, which have been or may hereafter be dedicated and open to public use, or such other public property so designated in any law of this State. Tenant, Occupant. The term "tenant" or "occupant" applied to a building or land means and includes any person who occupies the whole or part of such building or land, whether alone or with others. Utilities Director. The term "Utilities Director" means the individual who manages and directs the City's Utilities Department. Section 2: Subsection (D) of Section 5.95.042 (Maximum Number of Permits) of the NBMC is hereby amended and shall read as follows: D. If the City has issued the maximum number of permits available, the City shall maintain a waiting list. An application for placement on the waiting list shall be submitted to the Finance Director, on a form approved by the Finance Director, and shall be accompanied by a fee established by resolution of the City Council. In the event a short term lodging permit becomes available, the Finance Director shall notify the person or persons next in order on the waiting list. The notice shall specify that applications will be accepted for ten (10) calendar days after the date of the notice, and that failure to apply within the ten (10) calendar - day period shall result in removal of the person or persons receiving notice from the waiting list. The Finance Director may extend the deadline to apply if the Finance Director determines that good cause has been shown to extend the deadline. Notice shall be deemed given when deposited in the United States mail, with the first-class postage prepaid, and addressed as specified by the person or persons on the waiting list. The City shall not be liable for a failure to notify any person or persons on the waiting list since placement on the list does ist.y ` f N ae\.'# po3 : Beach 24-38 Ordinance No. 2025-4 Page 9 of 11 not create any property right in any person or persons on the list nor any contractual obligation on the part of the City. Section 3: Subsection (B) of Section 5.95.043 (Transfer of Permit) of the NBMC is hereby amended and shall read as follows: B. The deadlines set forth in subsection (A) of this section are established for purposes of setting deadlines for the transfer of a valid permit that has not been deemed abandoned in accordance with Sections 5.95.030 (B) through (F). The deadlines set forth in subsection (A) of this section shall not extend the deadlines set forth in or in accordance with Sections 5.95.030 (B) through (F). Authorization to transfer a valid short term lodging permit shall be deemed waived and the permit abandoned if an application is not filed to transfer a permit in accordance with the deadlines set forth in subsection (A), unless the Finance Director determines that good cause has been shown for extending the deadline. Section 4: Subsection (B) (1) of Section 5.95.065 (Suspensions and Revocations) of the NBMC is hereby amended and shall read as follows: B. Permits shall be suspended or revoked, only in the manner provided in this section. 1. The Finance Director shall investigate whenever he or she has reason to believe that an owner has submitted an application that contains false information or committed a violation of a permit condition, this Code, state or federal law related to a permitted unit. Such investigation may include, but is not limited to, on -site property inspections. Should the investigation reveal substantial evidence to support a finding that warrants a suspension or revocation of the short term lodging permit, the Finance Director shall issue written notice of intention to suspend or revoke the short term lodging permit. The written notice shall be served on the owner in accordance with Section 1.08.080, and shall specify the facts which, in the opinion of the Finance Director constitute substantial evidence to establish grounds for imposition of the suspension and/or revocation, and specify the proposed time the short term lodging permit shall be suspended and/or that the short term lodging permit shall be revoked within thirty (30) calendar days from the date the notice is given, unless the owner files with the Finance Director, before the suspension or revocation becomes effective, a request for hearing before a hearing officer, who shall be retained by the City, and pays the fee for the hearing established by resolution of the City Council. City of Newport Beach 24-39 Ordinance No. 2025-4 Page 10 of 11 Subject to subsection (E), failure to file a timely request for a hearing and pay all applicable fees shall result in the suspension or revocation of the permit. Section 5: Subsection (E) is hereby added to Section 5.95.065 (Suspensions and Revocations) of the NBMC and shall read as follows: E. The Finance Director may extend the deadlines set forth in this section if the Finance Director determines that good cause has been shown to extend the deadline. Section 6: The recitals provided in this ordinance are true and correct and are incorporated into the substantive portion of this ordinance. Section 7: The Finance Director is hereby authorized to retroactively extend deadlines as provided in Sections 2 through 5 of this ordinance upon a determination by the Finance Director that good cause has been shown to do so. Section 8: If any section, subsection, sentence, clause or phrase of this ordinance is for any reason held to be invalid or unconstitutional, such decision shall not affect the validity or constitutionality of the remaining portions of this ordinance. The City Council hereby declares that it would have passed this ordinance and each section, subsection, sentence, clause or phrase hereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases be declared invalid or unconstitutional. Section 9: The City Council finds the introduction and adoption of this ordinance is not subject to the California Environmental Quality Act ("CEQA") pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Division 6, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly. Section 10: Except as expressly modified in this ordinance, all other sections, subsections, terms, clauses and phrases set forth in the NBMC shall remain unchanged and shall be in full force and effect. ,I!tv of i\4ewnoitParh 24-40 Ordinance No. 2025-4 Page 11 of 11 Section 11: The Mayor shall sign and the City Clerk shall attest to the passage of this ordinance. The City Clerk shall cause the ordinance, or a summary thereof, to be published pursuant to City Charter Section 414. This ordinance shall be effective thirty (30) calendar days after its adoption. This ordinance was introduced at a regular meeting of the City Council of the City of Newport Beach held on the 11th day of March, 2025, and adopted on the 25th day of March, 2025, by the following vote, to -wit: AYES: Mayor Stapleton Mayor Pro Tem Kleiman, Councilmember Barto, Councilmember Blom, Councilmember Grant, Councilmember Weber, Councilmember Weigand NAYS: None JOE STAPLEtTON, MANOR ATTEST: H W/1 IJ/LiLiL1t .. APPROVED AS TO FORM: CITY TTORNEY'S OFFICE i AARON C. HARP, CITY ATTORNEY City of Newport Beach 24-41 STATE OF CALIFORNIA } COUNTY OF ORANGE ; ss. CITY OF NEWPORT BEACH } I, Leilani I. Brown, City Clerk of the City of Newport Beach, California, do hereby certify that the whole number of members of the City Council is seven; that the foregoing ordinance, being Ordinance No. 2025-4 was duly introduced on the 11'h day of March, 2025, at a regular meeting, and adopted by the City Council at a regular meeting duly held on the 25th day of March, 2025, and that the same was so passed and adopted by the following vote, to wit: AYES: Mayor Joe Stapleton, Mayor Pro Tem Lauren Kleiman, Councilmember Michelle Barto, Councilmember Noah Blom, Councilmember Robyn Grant, Councilmember Sara J. Weber, Councilmember Erik Weigand NAYS: None IN WITNESS WHEREOF, I have hereunto subscribed my name and affixed the official seal of said City this 261h day of March, 2025. STATE OF CALIFORNIA } COUNTY OF ORANGE } CITY OF NEWPORT BEACH } ' � � i.l Al�u Leilani I. Brown, MIMIC City Clerk City of Newport Beach, California ICI FOB// CERTIFICATE OF PUBLICATION ss. I, Leilani I. Brown, City Clerk of the City of Newport Beach, California, do hereby certify that Ordinance No. 2025-4 has been duly and regularly published according to law and the order of the City Council of said City and that same was so published in the Daily Pilot, a newspaper of general circulation on the following dates: Introduced Ordinance: March 15, 2025 Adopted Ordinance: March 29, 2025 In witness whereof, I have hereunto subscribed my name this day of April, 2025. I� 0 S14 PP4�m Leilani I. Brown, MMC City Clerk City of Newport Beach, California City o FO Oor ewport Beach 24-42 EXHIBIT "C" CODE AMENDMENT Section 1: The Table of Contents of Chapter 5.95 (Short Term Lodging Permit) of the Newport Beach Municipal Code is hereby amended to read as follows: Chapter 5.95 SHORT TERM LODGING PERMIT Sections: 5.95.005 Purpose and Findings. 5.95.010 Definitions. 5.95.015 Properties Eligible for Short Term Lodging Permits. 5.95.020 Permit Required. 5.95.025 Agency. 5.95.030 Application for Permit. 5.95.035 Denial of Permit. 5.95.040 Filing Fee. 5.95.042 Maximum Number of Permits. 5.95.043 Transfer of Permit. 5.95.045 Conditions. 5.95.047 Violations of Permit Conditions by Transient User, Occupant or Guest. 5.95.050 Agents and Hosting Platform Responsibilities. 5.95.055 Issuance of Administrative Subpoenas. 5.95.065 Suspensions and Revocations. 5.95.070 Permits and Fees Not Exclusive. 5.95.080 License and Permit Closure. Section 2: Subsection (B) of Section 5.95.005 (Purpose and Findings) of the Newport Beach Municipal Code is hereby amended to read as follows: B. Over a thousand dwelling units within residential zones near the City's beaches and harbor are rented for thirty (30) consecutive days or less with the vast majority of those rentals occurring during the summer when the demand for parking and City services is the greatest. Section 3: Subsection (C) of Section 5.95.005 (Purpose and Findings) of the Newport Beach Municipal Code is hereby amended to read as follows: 24-43 C. Many of the occupants of short term lodging units are permanent residents of areas distant from Newport Beach and the City has no effective way to prevent occupants from continuing to violate provisions of this Code and the Cal. Pen. Code relating to noise, disturbances and disorderly conduct. The only effective way to minimize the problems associated with occupancy of short term lodging units is to impose responsibility on the owner of the property, either personally or through an agent, to control the conduct of guests and occupants. Section 4: Subsection (L) of Section 5.95.005 (Purpose and Findings) of the Newport Beach Municipal Code is hereby amended to read as follows: L. The restrictions of this chapter are necessary to preserve the City's housing stock, the quality and character of the City's residential neighborhoods and mixed -use areas as well as to prevent and address the impacts on residential neighborhoods posed by short term lodgings. Section 5: Subsection (M) of Section 5.95.005 (Purpose and Findings) of the Newport Beach Municipal Code is hereby added to read as follows: M. With appropriate restrictions, certain mixed -use zones present an opportunity to accommodate tourists while protecting the City's residential zones. Section 6: Section 5.95.010 (Definitions) of the Newport Beach Municipal Code is hereby amended to read as follows: 5.95.010 Definitions. For the purpose of this chapter, the following definitions shall apply: A. "Accessory dwelling unit" shall have the same definition as set forth in Chapter 20.70. B. "Agent" shall mean any person who is authorized in writing by the owner to represent and act for an owner. C. "Booking transaction" shall mean any reservation or payment service provided by a person who facilitates a short term lodging rental transaction between a transient user and owner for the use of a unit for a period of thirty (30) consecutive days or less. 24-44 D. "Gross floor area" shall mean the area of the lodging unit that includes the surrounding exterior walls and any interior finished portion of a structure that is accessible and that measures more than six (6) feet from finished floor to ceiling. Stairwells and elevator shafts above the first (1) level shall be excluded from the calculation of gross floor area. E. "Home -sharing" shall mean an activity whereby the owner hosts a transient user in the owner's lodging unit, for compensation, for periods of less than thirty (30) consecutive calendar days, during which time the owner of the unit lives on site, in the unit, throughout the transient user's stay and the owner, the transient user and any other occupants live together in the same unit as a single housekeeping unit. F. "Hosting platform" shall mean a person, other than an owner or agent, who participates in the short term lodging business by facilitating a booking transaction using any medium of facilitation. G. "Lodging unit" or "unit" shall mean a "dwelling unit" as that term is defined in Chapter 20.70. An accessory dwelling unit shall not be considered a lodging unit or unit for purposes of this chapter. H. "Multi -use area" shall mean those areas of the City designated by Title 20 and Title 21 as Mixed -Use Water (MU-W2) and Mixed -Use Cannery Village and 15th Street (MU- CV/15th St.). I. "Owner" shall mean the person(s) that hold(s) legal and/or equitable title to the lodging unit. K. "Residential district" shall mean those areas of the City so designated by Title 20 as well as any other area in the City designated for a residential use as part of a planned community development plan, specific area plan or planned residential district. J. "Short term" shall mean a lodging unit that is rented or leased as a single housekeeping unit for a period of thirty (30) consecutive days or less. This also includes home -sharing. L. "Short term lodging unit registry" shall mean the published registry maintained by the City that sets forth a list of all owners and the address of all units that have a valid short term lodging permit and business license with the City, a copy of which is available, without charge, to any person who requests a copy and which shall be accessible on the City's website. 24-45 M. "Single housekeeping unit" shall have the same definition as set forth in Chapter 20.70. N. "Transient' or "transient user" shall mean any person or persons who, for any period of thirty (30) consecutive days or less either at his or her own expense, or at the expense of another, obtains lodging in a lodging unit or the use of any lodging space in any unit, for which lodging or use of lodging space a charge is made. Section 7: The title and contents of Section 5.95.015 (Residential Properties Eligible for Short Term Lodging Permits) of the Newport Beach Municipal Code are hereby amended to read as follows: 5.95.015 Properties Eligible for Short Term Lodging Permits. Only properties in a residential district or multi -use area that are authorized under Titles 20 and 21 and this chapter shall be eligible for a short term lodging permit. Subsequent to June 1, 2004, no annual permit shall be issued to or renewed for any dwelling unit on any parcel zoned for "Single -Unit Residential (R-1)" or that is designated for a single-family residential use as part of a planned community development plan, specific area plan or planned residential district, unless a permit has previously been issued for that lodging unit and the permit was not subsequently revoked. Section 8: Section 5.95.020 (Permit Required) of the Newport Beach Municipal Code is hereby amended to read as follows: 5.95.020 Permit Required. No owner of a lodging unit shall advertise for rent or rent a lodging unit located within a residential district or multi -use area for a short term without a valid short term lodging permit for that unit issued pursuant to this chapter. Section 9: Section 5.95.030 (Application for Permit) of the Newport Beach Municipal Code is hereby amended to read as follows: 24-46 5.95.030 Application for Permit. An application for an annual short term lodging permit, renewal of a short term lodging permit, reinstatement of a short term lodging permit or transfer of a short term lodging permit shall be filed with the Finance Director upon forms provided by the City. A. An application for a new permit, renewal permit, the reinstatement of a permit or the transfer of a permit shall contain the following information: 1. The name, address and telephone number of the owner of the unit for which the short term lodging permit is to be issued. 2. The name, address and telephone number of the agent, if any, of the owner of the unit. 3. Evidence of a valid business license issued by the City for the separate business of operating a short term lodging unit or units. 4. The number of bedrooms in the lodging unit. 5. The gross floor area of the lodging unit. 6. The number of parking spaces available on site and a description indicating the location and size of each parking space. 7. A nuisance response plan, which sets forth the owner's plan for handling disruptive transient users. 8. A certification that the applicant has reviewed the covenants, conditions and restrictions, if any, and a short term use is permitted at the location pursuant to the terms of the covenants, conditions and restrictions, if any. 9. Acknowledgment of receipt and inspection of a copy of all regulations pertaining to the operation of a short term lodging unit. 10. Such other information as the Finance Director deems reasonably necessary to administer this chapter. B. An application for the renewal of a short term lodging permit shall be filed within thirty (30) days of the short term lodging permit's expiration, or the short term lodging permit shall be deemed abandoned. 24-4 7 C. An application for the reinstatement of a short term lodging permit closed by the Finance Director pursuant to Section 5.95.080 shall be filed within thirty (30) days of the date the permit was closed by the Finance Director, or the short term lodging permit shall be deemed abandoned. D. An application for the reinstatement of a previously suspended short term lodging permit shall be filed within thirty (30) days of the end of the suspension period, or the short term lodging permit shall be deemed abandoned. E. If any application is deemed incomplete, which shall be determined in the sole discretion of the Finance Director, the application shall be completed within thirty (30) days of the service of notice that the application is incomplete, which shall be served in accordance with Section 1.08.080, or the application and any associated permit shall be deemed abandoned. F. If good causes exist, as determined in the sole discretion of the Finance Director, the Finance Director may extend the deadlines set forth in subsections (B) through (E) of this section. Section 10: Section 5.95.035 (Denial of Permit) of the Newport Beach Municipal Code is amended to read as follows: 5.95.035 Denial of Permit. If permits are available for issuance, no timely application filed by an owner for an annual permit, renewal of a permit, reinstatement of a permit or transfer of a permit for a unit eligible to be used as a short term lodging unit, as provided for in Section 5.95.015 and this Code, shall be denied unless: the owner does not have a current valid business license; the owner has failed to pay transient occupancy tax, the visitor service fee, a penalty, a fine or inspection cost, due and owing to the City; the nuisance response plan is deemed inadequate by the Finance Director; the short term lodging permit for the same unit and issued to the same owner has been revoked, or the short term lodging permit is not eligible for reinstatement. Section 11: Section 5.95.042 (Maximum Number of Permits) of the Newport Beach Municipal Code is hereby amended to read as follows: 5.95.042 Maximum Number of Permits. A. The maximum number of short term lodging permits in a residential district shall be limited to one thousand four hundred seventy-five (1,475) permits at any time. If there are more than one thousand four hundred seventy-five (1,475) valid permits in residential districts as of the effective date of Ordinance No. 2025- , an owner shall be permitted to renew, reinstate, or transfer a valid permit in accordance with the provisions of this chapter; however, no new permit shall be issued to any person on the waiting list, as described in subsection (G) of this section, until the total number of residential district permits does not exceed one thousand four hundred seventy-five (1,475). To avoid wholesale conversion of existing and new housing complexes into short term lodgings within the residential district, multi -unit developments with five (5) or more units may permit a maximum of twenty (20) percent of the total number of units to be short term lodgings (rounded down to the nearest whole number). B. The maximum number of short term lodging permits in the multi -use area shall be limited to seventy-five (75) permits. No new permit shall be issued to any person on the waiting list, as described in subsection (G) of this section, until the total number of multi -use area permits is less than seventy-five (75). C. The total number of short-term lodging permits in the City shall not exceed one thousand five -hundred and fifty (1,550). D. For purposes of calculating the maximum number of short term lodging permits available as provided in subsection (A),(B), or (C) of this section, a permit shall be deemed valid and unavailable unless abandoned in accordance with Sections 5.95.030(B) through (F), and/or Section 5.95.043(B) or, if the short term lodging permit has been revoked and the time has run to seek administrative or judicial review of the decision. E. An owner who has a short term lodging permit, or an owner seeking to reinstate a short term lodging permit that has not been abandoned in accordance with Sections 5.95.030(B) through (F), shall have priority to renew or reinstate the permit over anyone on the waiting list, as described in subsection (G) of this section. F. An owner seeking to transfer a valid short term lodging permit that files an application within the time frames set forth in Section 5.95.043(A) shall have priority to transfer the permit over anyone on the waiting list, as described in subsection (G) of this section. G. If the City has issued the maximum number of permits available, the City shall maintain a separate waiting list for both the residential districts and the multi -use areas. 24-49 An application for placement on the waiting list shall be submitted to the Finance Director, on a form approved by the Finance Director, and shall be accompanied by a fee established by resolution of the City Council. In the event a short term lodging permit becomes available, the Finance Director shall notify the person or persons next in order on the waiting list. The notice shall specify that applications will be accepted for ten (10) calendar days after the date of the notice, and that failure to apply within the ten (10) calendar day period shall result in removal of the person or persons receiving notice from the waiting list. The Finance Director may extend the deadline to apply if the Finance Director determines that good cause has been shown to extend the deadline. Notice shall be deemed given when deposited in the United States mail, with the first class postage prepaid, and addressed as specified by the person or persons on the waiting list. The City shall not be liable for a failure to notify any person or persons on the waiting list since placement on the list does not create any property right in any person or persons on the list nor any contractual obligation on the part of the City. Section 12: Subsections A(19) through A(22) of Section 5.95.045 (Conditions) of the Newport Beach Municipal Code are hereby amended to read as follows: 19. The owner shall allow the City to inspect the short term lodging unit to confirm the number of bedrooms, gross floor area, and number/availability of parking spaces, seven (7) days after the City serves the owner with a request for inspection in accordance with Section 1.08.080. If, based on the inspection, it is determined that the information submitted to the City in accordance with Section 5.95.030 was false, in addition to any other remedy set forth in this chapter, the owner agrees that the owner shall be liable for the cost of conducting the inspection. 20. The owner shall provide the City with a copy of any written rental agreement(s) and the good neighbor policy, within seven (7) days after the City serves the owner with a notice of request for written rental agreements and the good neighbor policy in accordance with Section 1.08.080. 21. Neither an owner nor the owner's agent shall rent, let, advertise for rent, or enter into an agreement for the rental of any lodging unit, for less than two (2) consecutive nights. 22. The owner shall: a. Require every transient user and guest of the transient user to comply with all State and local laws that regulate parking while staying at or visiting the short term lodging unit; 24-50 b. Require every transient user to provide the owner with the license plate number for all vehicles which are used by the transient user or the transient user's guest while staying at or visiting the short term lodging unit; and C. Provide the City with the vehicle license plate number(s) for every vehicle which was used by the transient user or the transient user's guest while staying at or visiting the short term lodging, within seven (7) days after the City serves the owner with a notice of request for the vehicle license plate number(s) in accordance with Section 1.08.080. Section 13: Section 5.95.055 (Issuance of Administrative Subpoenas) of the Newport Beach Municipal Code is hereby amended to read as follows: 5.95.055 Issuance of Administrative Subpoenas. The City Manager shall have the authority to issue and serve administrative subpoenas to the owner, agent or hosting platform, as necessary, to obtain specific information regarding short term 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 short term rental listing complies with this chapter. Any subpoena issued pursuant to this section shall not require the production of information sooner than thirty (30) days from the date of service. A person that has been served with an administrative subpoena may seek judicial review during that thirty (30) day period. Failure to respond to an administrative subpoena in accordance with the terms set forth therein shall be punishable in accordance with Section 5.95.060 and the City may file a judicial action to compel compliance with the subpoena. Section 14: Section 5.95.060 (Violations, Penalties and Enforcement) of the Newport Beach Municipal Code is hereby deleted in its entirety. Section 15: Subsection A(3) of Section 5.95,065 (Suspensions and Revocations) of the Newport Beach Municipal Code is hereby amended to read as follows: 3. If a lodging unit that is subject to a short term lodging permit has been the location of two (2) or more loud or unruly gatherings, as defined in Chapter 10.66, while the lodging unit was occupied on a short term basis, within any twenty-four (24) month period, the permit may be suspended for a period of one (1) year or revoked in accordance with subsection (B) of this section. A loud or unruly gathering that occurred prior to the passage of fourteen (14) days from the mailing of notice to the owner in compliance with Section 10.66.030(D) shall not be included within the calculation of the two (2) or more loud or unruly gatherings required to revoke a short term lodging permit. 24-51 Section 16: Subsection (B) of Section 5.95.065 (Suspensions and Revocations) of the Newport Beach Municipal Code is hereby amended to read as follows: B. Permits shall be suspended or revoked, only in the manner provided in this section. 1. The Finance Director shall investigate whenever he or she has reason to believe that an owner has submitted an application that contains false information or committed a violation of a permit condition, this Code, state or federal law related to a permitted unit. Such investigation may include, but is not limited to, on -site property inspections. Should the investigation reveal substantial evidence to support a finding that warrants a suspension or revocation of the short term lodging permit, the Finance Director shall issue written notice of intention to suspend or revoke the short term lodging permit. The written notice shall be served on the owner in accordance with Section 1.08.080, and shall specify the facts which, in the opinion of the Finance Director constitute substantial evidence to establish grounds for imposition of the suspension and/or revocation, and specify the proposed time the short term lodging permit shall be suspended and/or that the short term lodging permit shall be revoked within thirty (30) days from the date the notice is given, unless the owner files with the Finance Director, before the suspension or revocation becomes effective, a request for hearing before a hearing officer, who shall be retained by the City, and pays the fee for the hearing established by resolution of the City Council. Subject to subsection (E), failure to file a timely request for hearing and pay all applicable fees shall result in the suspension or revocation of the permit. 2. If the owner requests a hearing and pays the hearing fee, established by resolution of the City Council, within the time specified in subsection (B)(1) of this section, the Finance Director shall serve written notice on the owner, pursuant to Section 1.08.080, setting forth the date, time and place for the hearing. The hearing shall be scheduled not less than fifteen (15) days, nor more than sixty (60) days, from the date on which notice of the hearing is served by the Finance Director. The hearing shall be conducted according to the rules normally applicable to administrative hearings. At the hearing, the hearing officer will preside over the hearing, take evidence and then submit proposed findings and recommendations to the City Manager. The City Manager shall suspend or revoke the short term lodging permit only upon a finding that a violation has been proven by a preponderance of the evidence, and that the suspension or revocation is consistent with the provisions of this section. The City Manager shall render a decision within thirty (30) days of the hearing and the decision shall be final as to the City but subject to judicial review pursuant to Cal. Code Civ. Proc. Section 1094.5. 24-52 Section 17: Section 5.95.080 (License and Permit Closure) of the Newport Beach Municipal Code is hereby amended to read as follows: 5.95.080 License and Permit Closure. A. Any owner that has ceased operating a short term lodging unit shall inform the Finance Director in writing of the date of the last rental, and having done such, the short term lodging permit shall be closed. The City will send a final transient occupancy tax and visitor service fee bill, which will be due and payable thirty (30) days from the date of the invoice. B. The Finance Director shall close any permit that has no short term lodging activity for a period of two (2) consecutive annual reporting periods as evidenced by the owner and/or agent remitting zero dollars ($0.00) on the required transient occupancy tax and visitor service fee forms or the owner/agent failing to return these forms. After any permit closure pursuant to this subsection, the owner may reapply one (1) time for reinstatement of the short term lodging permit which shall be processed in accordance with Section 5.95.030. Any subsequent closure of the short term lodging permit pursuant to this subsection shall not be eligible for reinstatement. 24-53 EXHIBIT "D" FINDINGS IN SUPPORT OF CODE AMENDMENT 1. An amendment to Chapter 5.95 (Short Term Lodging Permit) and Title 20 (Planning and Zoning) of the NBMC is a legislative act. There are no required findings for either approval or denial of such amendments. Notwithstanding the foregoing, the Code Amendment is consistent with the following goals and policies of the City's General Plan: Land Use Element Policy LU 2.6 (Visitor Serving Uses), which states, "Provide uses that serve visitors to Newport Beach's ocean, harbor, open spaces, and other recreational assets, while integrating them to protect neighborhoods and residents." The Code Amendment would allocate and allow 75 short term lodging permits within the MU-W2 and MU-CV/15th St. zones, both of which are located in the Coastal Zone, subject to specific regulations that would require the operation of short-term lodging would be subject to a permit issued by the City, managed by professional management, and not impact parking in the neighborhood. The Code Amendment would also maintain the existing Citywide maximum cap of 1,550 permits by establishing a maximum cap of 1,475 permit with residential coastal zoning districts and a maximum cap of 75 permit within the MU-W2 and MU-CV/15th St. coastal zoning districts. This would maintain the existing allowance for this type of visitor accommodations in the additional visitor accommodations in the City without altering existing provisions and regulations on short term lodging previously adopted to protect residential neighborhoods. Land Use Element Goal LU 4 states, "Management of growth and change to protect and enhance the livability of neighborhoods and achieve distinct and economically vital business and employment districts, which are correlated with supporting infrastructure and public services and sustain Newport Beach's natural setting." In specific mixed use zones, permit holders would be permitted to operate short term lodging. This provides additional opportunities for properties in the mixed -use zones to achieve and maintain economic viability and avoids new impacts on residential neighborhoods. 24-54 Attachment B Ordinance No. 2025-16 (Title 21 Amendment) 24-55 ORDINANCE NO. 2025-16 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH, CALIFORNIA, APPROVING A LOCAL COASTAL PLAN AMENDMENT AMENDING TITLE 21 (LOCAL COASTAL PROGRAM IMPLEMENTATION PLAN) OF THE NEWPORT BEACH MUNICIPAL CODE AS MODIFIED BY THE CALIFORNIA COASTAL COMMISSION RELATED TO SHORT TERM LODGING (PA2023-0116) WHEREAS, Section 200 of the City Charter, of the City of Newport Beach ("City"), vests the City Council with the authority to make and enforce all laws, rules and regulations with respect to municipal affairs subject only to the restrictions and limitations contained in the City Charter and the State Constitution, and the power to exercise, or act pursuant to any and all rights, powers, and privileges or procedures granted or prescribed by any law of the State of California; WHEREAS, Section 30500 of the California Public Resources Code requires each county and city to prepare a local coastal program ("LCP") for that portion of the coastal zone within its jurisdiction, - WHEREAS, in 2005, the City adopted the City of Newport Beach Local Coastal Program Coastal Land Use Plan ("Coastal Land Use Plan"), which has been amended from time to time; WHEREAS, the California Coastal Commission effectively certified the City's Local Coastal Program Implementation Plan on January 13, 2017, and the City added Title 21 (Local Coastal Program Implementation Plan) ("Title 21") to the City of Newport Beach Municipal Code ("NBMC") whereby the City assumed coastal development permit -issuing authority on January 30, 2017; WHEREAS, City Council Policy K-1 (General Plan and Local Coastal Program) requires amendments to the City of Newport Beach certified Local Coastal Program codified in Title 21 to be initiated by the City Council; WHEREAS, the City Council directed the Planning Commission to identify opportunities to modify Titles 20 ("Code Amendment") and 21 ("LCP Amendment") of the NBMC on May 23, 2023, effectively initiating amendments, to facilitate new visitor serving accommodation opportunities within the Mixed -Use Water (MU-W2) and Mixed - Use Cannery Village and 15th Street (MU-CV/15th St.) zoning districts; 24-56 Ordinance No. 2025-16 Page 2 of 5 WHEREAS, the Planning Commission discussed the Code Amendment and LCP Amendment on June 22, 2023, to facilitate new visitor serving accommodations; WHEREAS, pursuant to Section 13515 (Public Participation and Agency Coordination Procedures) of the California Code of Regulations Title 14, Division 5.5, Chapter 8, Subchapter 2, Article 5 (Public Participation) ("Section 13515"), drafts of the LCP Amendment were made available, and a Notice of Availability was distributed at least six weeks prior to the anticipated final action date; WHEREAS, the Planning Commission held a public hearing on October 19, 2023, in the City Council Chambers, located at 100 Civic Center Drive, Newport Beach, California. A notice of time, place and purpose of the hearing was given in accordance with California Government Code Section 54950 et seq. ("Ralph M. Brown Act") and Chapter 20.62 (Public Hearings) and Chapter 21.62 (Public Hearings) of the NBMC. Evidence, both written and oral, was presented to, and considered by, the Planning Commission at this hearing; WHEREAS, at the conclusion of the hearing, the Planning Commission adopted Resolution No. PC2023-037 by a majority vote (3 ayes, 1 nay) recommending approval of the Code Amendment and LCP Amendment to the City Council; WHEREAS, the City Council held a duly noticed public hearing on November 28, 2023, in the City Council Chambers located at 100 Civic Center Drive, Newport Beach, California. Notice of time, place and purpose of the public hearing was given in accordance with the Ralph M. Brown Act, Section 13515, Chapter 20.62 (Public Hearings), and Chapter 21.62 (Public Hearings) of the NBMC. Evidence, both written and oral, was presented to, and considered by, the City Council at this public hearing; WHEREAS, the City Council adopted Resolution No. 2023-83 on November 28, 2023, authorizing submittal of the LCP Amendment filed as PA2023-0116 to the Coastal Commission by a unanimous vote (6 ayes, 0 nays) amending Title 21 (Local Coastal Program Implementation Plan) of the NBMC related to short term lodging regulations for properties within the coastal zone; WHEREAS, the City Council also adopted Ordinance No. 2023-23 on December 12, 2023, adopting Code Amendment No. PA2023-0116 to amend Chapter 5.95 (Short Term Lodging Permit) and Title 20 (Planning and Zoning) of the NBMC; WHEREAS, the California Coastal Commission denied the LCP Amendment at its May 7, 2025, hearing, as submitted and approved it with suggested modifications (LCP-5-NPB-24-0004-1 Part A) as being consistent with the California Coastal Act; and 24-57 Ordinance No. 2025- 16 Page 3 of 5 WHEREAS, the City Council held a public hearing on July 22, 2025, in the City Council Chambers located at 100 Civic Center Drive, Newport Beach, California. Notice of time, place and purpose of the public hearing was given in accordance with the Ralph M. Brown Act, Section 13515, and Chapter 21.62 (Public Hearings) of the NBMC. Evidence, both written and oral, was presented to, and considered by, the City Council at this public hearing. NOW THEREFORE, the City Council of the City of Newport Beach ordains as follows.. Section 1: The City Council hereby approves Local Coastal Program Amendment No. PA2023-0116 and accepts the suggested modifications by the Coastal Commission to amend Title 21 (Local Coastal Program Implementation Plan) of the Newport Beach Municipal Code as set forth in Exhibit 'A," and based upon the Findings in Exhibit "B," both of which are attached hereto and incorporated herein by reference. Section 2: The Local Coastal Program Amendment No. PA2023-0116, will be carried out fully in conformity with the California Coastal Act. Section 3: The recitals provided in this ordinance are true and correct and are incorporated into the substantive portion of this ordinance. Section 4: The City Council hereby authorizes City staff to submit this ordinance for a determination by the Executive Director of the Coastal Commission that this action is legally adequate to satisfy the specific requirements of the Coastal Commission's May 7, 2025, action on LCP Amendment Request No. LCP-5-NPB-24- 0004-1 Part A (STRs in Mixed Use Zones). Section 5: This ordinance shall not become effective until thirty days after adoption and until the Executive Director of the Coastal Commission certifies that this ordinance complies with the Coastal Commission's May 7, 2025, action on LCP Amendment Request No. LCP-5-NPB-24-0004-1 Part A (STRs in Mixed Use Zones). Section 6: If any section, subsection, sentence, clause or phrase of this Ordinance is, for any reason, held to be invalid or unconstitutional such decision shall not affect the validity or constitutionality of the remaining portions of this Ordinance. The City Council hereby declares that it would have passed this Ordinance, and each section, subsection, clause or phrase hereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases may be declared invalid or unconstitutional. 24-58 Ordinance No. 2025- 16 Page 4 of 5 Section 7: The City Council of the City of Newport Beach finds the introduction and adoption of this ordinance is exempt from environmental review under the California Environmental Quality Act ("CEQK) pursuant to Section 15060(c)(2) of the CEQA Guidelines, California Code of Regulations, Title 14, Division 6, Chapter 3, which states that an activity is not subject to CEQA if "[t]he activity will not result in a direct or reasonably foreseeable indirect physical change in the environment". The Code Amendment would allow existing residential dwelling units in mixed -use zones to be used as short term lodging. The LCP Amendment would not authorize new development that would result in a physical change in the environment. Section 8: Except as expressly modified in this ordinance, all other sections, subsections, terms, clauses and phrases set forth in the Newport Beach Municipal Code shall remain unchanged and shall be in full force and effect. 24-59 Ordinance No. 2025- 16 Page 5 of 5 Section 9: The Mayor shall sign and the City Clerk shall attest to the passage of this ordinance. The City Clerk shall cause the ordinance, or a summary thereof, to be published pursuant to City Charter Section 414 and the same shall become final and effective as provided in Section 5 of this ordinance. This ordinance was introduced at a regular meeting of the City Council of the City of Newport Beach held on the 22nd day of July 2025, and adopted on the 26th day of August 2025, by the following vote, to -wit: M-A 0601 lUWAY0441 ABSENT: Joe Stapleton, Mayor ATTEST: Molly Perry, Interim City Clerk APPROVED AS TO FORM: CITY TTORNEY'S OFFICE Aaron C. Harp, Ci y Attorney Attachments: Exhibit A - Local Coastal Plan Amendment No. PA2023-0116 Exhibit B - Findings in Support of LCP Amendment No. PA2023-0116 24-60 EXHIBIT "A" LOCAL COSTAL PLAN AMENDMENT NO. PA2023-0116 Section 1: Rows entitled "Visitor Accommodations, Residential" and "Short Term Lodging" are hereby added to the "Residential Uses" section of Table 21.22-1 (Allowed Uses) of Section 21.22.020(C) of the Newport Beach Municipal Code to read as follows: TABLE 21.22-1 ALLOWED USES Mixed -Use Zoning Districts A — Allowed Not Allowed* Land Use See Part 7 of this Implementation Plan for land use definitions. See Chapter 21.12 for unlisted uses. MU-V (6) MU-MM (4) MU-CV/15th St. (5)(6) Specific Use Regulations Residential Uses Single -Unit Dwellings Located on 1st floor — — A (3) Located above 1st floor A (1) — A (3) Multi -Unit Dwellings Located on 1st floor — A (1)(2) A (3) Located above 1st floor A (1) A (1)(2) A (3) Two -Unit Dwellings Located on 1 st floor — — A (3) Located above 1st floor A (1) — A (3) Home Occupations A A (1) A Live -Work Units A A (1)(2) A (3) Accessory Dwelling Units and Junior Accessory Dwelling Units A A A Section 21.48.200 Visitor Accommodations, Residential Short Term Lodging — — A Chapter 5.95 and Section 21.48.115 24-61 Section 2: Rows entitled "Visitor Accommodations, Residential" and "Short Term Lodging" are hereby added to the "Residential Uses" section of Table 21.22-2 (Allowed Uses) of Section 21.22.020(C) of the Newport Beach Municipal Code to read as follows: TABLE 21.22-2 ALLOWED USES Mixed -Use Coastal Zoning Districts A Allowed Not Allowed Land Use See Part 7 of this Implementation Plan for land use definitions. See Chapter 21.12 for unlisted uses. MU-W1 (3) Ml (5) Specific Use Regulations Residential Uses Single -Unit Dwellings Located on 1 st floor — — Located above 1st floor A (1) A (2) Multi -Unit Dwellings Located on 1 st floor — — Located above 1 st floor A (1) A (2) Two -Unit Dwellings Located on 1 st floor — — Located above 1st floor A (1) A (2) Home Occupations A A (2) Accessory Dwelling Units and Junior Accessory Dwelling Units A A Section 21.48.200 Visitor Accommodations, Residential Short Term Lodging — A Chapter 5.95 and Section 21.48.115 Section 3: The title and content of Section 21.48.115 (Short -Term Lodging) of the Newport Beach Municipal Code are hereby amended to read as follows: 21.48.115 Short Term Lodging. A. Purpose. This section provides standards for the operation of short term lodging units to prevent overburdening City services and adverse impacts on residential neighborhoods, multi -use areas, and on coastal access and resources. 24-62 B. Permits within a Residential District. 1. No owner of a short term lodging unit shall advertise for rent, or rent a lodging unit located within a residential district for a short term, without a valid short term lodging permit for that unit, issued pursuant to Chapter 5.95. 2. An owner shall be permitted to renew, reinstate, or transfer a valid permit in accordance with the provisions of Chapter 5.95. 3. As set forth in Section 5.95.042 of Chapter 5.95, the maximum number of short term lodging permits shall be limited to one thousand four hundred seventy-five (1,475) permits within a residential district at any time. If there are more than one thousand four hundred seventy-five (1,475) valid permits that have been issued within a residential district as of the effective date of Ordinance No. 2025- , no new permit shall be issued to any person on the waiting list, as described in Section 5.95.042(G), until the total number of permits does not exceed the one thousand four hundred seventy-five (1,475) limit. To avoid wholesale conversion of existing and new housing complexes into short term lodgings, multi -unit developments within a residential district with five (5) or more units may permit a maximum of twenty (20) percent of the total number of units to be short term lodgings (rounded down to the nearest whole number). 4. No short term lodging unit shall be permitted on any lot in the R-1 (Single -Unit Residential) Coastal Zoning District or any lot designated for single -unit dwelling land use as part of a planned community development plan, unless the short term lodging unit was legally established on or before June 1, 2004. C. Permits within Mixed -Use Water Zoning District (MU-W2) and Mixed -Use Cannery Village and 15th Street Zoning District (MU-CV/15th St.). 1. No owner of a short term lodging unit shall advertise for rent, or rent a lodging unit located within the Mixed -Use Water (MU-W2) or Mixed -Use Cannery Village and 15th Street (MU-CV/15th St.) zoning districts for a short term, without a valid short term lodging permit for that unit, issued pursuant to Chapter 5.95. 2. An owner shall be permitted to renew, reinstate, or transfer a valid permit in accordance with the provisions of Chapter 5.95. 3. As set forth in Section 5.95.042 of Chapter 5.95, the maximum number of short- term lodging permits shall be limited to a total of seventy-five (75) permits within the Mixed -Use Water (MU-W2) and Mixed -Use Cannery Village and 15th Street (MU- CV/15th St.) districts at any time. No new permit shall be issued to anyone on the 24-63 waiting list, as described in Section 5.95.042(G), until the total number of permits is less than seventy-five (75). 4. Only a property owner that owns twenty (20) or more units under common ownership within the same Statistical Area as defined by the Land Use Element of the General Plan shall be eligible to obtain a short-term lodging permit(s) in the MU- W2 and/or MU-CV/15th St. districts. The eligible units may be located upon one (1) or more separate parcels or properties provided they cumulatively add up to twenty (20) or more units, and all units are located within the MU-W2 and/or MU-CV/15th St. districts. Common ownership means the same person, entity or managing partner holds legal and/or equitable title to no less than fifty percent (50%) of each property or entity. D. Permits in the Coastal Zone. At no point shall the total number of short-term lodging permits in the City's coastal zone exceed one -thousand five -hundred and fifty (1,550). E. Operational Standards. The owner, or any other person(s) or entity(ies) that hold(s) legal and/or equitable title to the lodging unit, shall comply with all federal, State, and local laws, rules, regulations and conditions of approval including, but not limited to, all short term lodging permit conditions, as set forth in Chapter 5.95. In addition, the owner, or any other person(s) or entity(ies) that hold(s) legal and/or equitable title to the lodging unit, shall: 1. By written agreement, limit overnight occupancy of the short term lodging unit to the maximum permitted by the Building Code and Fire Code. 2. Use best efforts to ensure that the transient user, occupants and/or guests of the short term lodging unit do not create unreasonable noise or disturbances, engage in disorderly conduct, or violate provisions of this Code or any State or federal law pertaining to noise, disorderly conduct, the consumption of alcohol, or the use of illegal drugs. 3. Upon notification that any transient user, occupant and/or guest of his or her short term lodging unit has created unreasonable noise or disturbances, engaged in disorderly conduct or committed violations of this Code or any State or federal law pertaining to noise, disorderly conduct, the consumption of alcohol or the use of illegal drugs, promptly use best efforts to prevent a recurrence of such conduct by any transient user, occupant or guest. 4. Use best efforts to ensure compliance with applicable health and sanitation regulations relating to waste disposal. 24-64 5. Post a copy of any applicable permits and conditions in a conspicuous place within the unit. 6. Not rent, let, advertise for rent, or enter into an agreement for the rental of any lodging unit, for less than two (2) consecutive nights. 7. The City Manager shall have the authority to impose additional standard conditions, applicable to all short term lodging units, as necessary to achieve the objectives of this section. F. Additional Requirements for Newport Island (Map A-16). To the extent there is any conflict between this subsection and other provisions of the Code related to short term rentals on Newport Island (Map A-16), this subsection shall govern and control. 1. In addition to the restriction set forth in Section 5.95.042 and subsection (13)(3) of this section, the maximum number of short term lodging permits issued for units located on Newport Island shall be limited to twenty (20) short term lodging permits at any one time. If there are more than twenty (20) valid short term lodging permits that have been issued as of January 13, 2022, an owner shall be permitted to renew, reinstate, or transfer a valid permit in accordance with the provisions of Chapter 5.95; however, no new permit shall be issued unless: (a) permits are available for issuance pursuant to Section 5.95.042 and subsection (13)(3) of this section; and (b) the total number of permits for units located on Newport Island does not exceed twenty (20). If the City has issued the maximum number of permits available for units on Newport Island, the City shall maintain a waiting list and follow the same procedures as set forth in Section 5.95.042(G). For purposes of this subsection, the maximum number of permits available will be calculated in the same manner as set forth in Chapter 5.95. 2. An owner, agent, or other person shall only be allowed to rent a dwelling unit on Newport Island for a short term if the dwelling unit is located on a lot with an owner - occupied dwelling unit that is managed by the owner of the owner -occupied dwelling unit. For purposes of this subsection, the term "owner -occupied" means the owner occupies and lives at the property and the property is used as the owner's primary residence no less than one hundred eighty-three (183) days of each year and provides at least two (2) of the following documentation: motor vehicle registration, driver's license, California State Identification card, voter registration, income tax return, property tax bill, or a utility bill showing the dwelling unit is the owner's primary residence. For purposes of this subsection, "managed by the owner" means that the owner is occupying and living at the property while it is being rented for a short term use. 24-65 3. The owner and/or agent shall limit the overnight occupancy of the short term lodging unit on Newport Island to the lesser of: (a) the number of occupants that can be accommodated consistent with the on -site parking requirement set forth in subsection (F)(4) of this section, or (b) two (2) persons per bedroom plus two (2) additional persons, up to a maximum of ten (10) persons. Additional daytime guests are allowed between the hours of 7:00 a.m. and 10:00 p.m. with the maximum daytime occupancy limited to a number equal to the maximum overnight occupancy plus six (6) additional persons. The occupancy restrictions set forth in this subsection shall be set forth in a written rental agreement. 4. Each short term lodging unit on Newport Island shall provide a minimum of one (1) parking space in an existing garage or carport. Occupancy shall be limited to a maximum of five overnight guests for a short term lodging unit providing only one (1) parking space. The parking required by this subsection shall be free of obstructions and available for use by the short term lodging user. 5. No owner, agent, or other person shall rent or let a short term lodging unit on Newport Island more than once in any seven -consecutive -day period. G. Additional Requirements for the Mixed -Use Water Zoning District (MU-W2) and Mixed -Use Cannery Village and 15th Street Zoning District (MU-CV/15th St.). To the extent there is any conflict between this subsection and other provisions of the Code related to short term lodging within the Mixed -Use Water (MU-W2) district or Mixed -Use Cannery Village and 15th Street (MU-CV/15th St.) district, this subsection shall govern and control. 1. Prior to issuance of a short term lodging permit, a management plan shall be submitted for review and approval by the Community Development Director. The management plan shall include the following: a. Acknowledgement and method of compliance with all operational standards identified in Subsection 21.48.115(E) for all short term lodging units on the property or properties; b. Identification of professional management responsible for administering the permit; c. Evidence of eligibility and compliance with ownership requirements of Subsection 21.48.115(C)(4) above; d. Demonstration that on -site amenities are provided to guests; and e. Parking management plan ensuring all available on -site parking remain free of obstructions and available for use by the short term lodging user. For 24-66 short term lodging units that are non -conforming due to number of parking spaces provided, there shall be sufficient data to indicate that parking demand will be satisfied by the provided number of spaces or that alternative modes of transportation are available (e.g., bicycles and e-bikes, bus and trolley routes, rideshare services, private offsite parking lots, greater than normal walk in trade, etc.) such that use or operation of the short term lodging permit will not rely on the City's stock of public on -street and off-street parking or reduce availability of parking in nearby residential neighborhoods. 2. No deed -restricted affordable housing units shall be used for short term lodging. Section 4: The definition of "Bed and breakfast inn" of Section 21.70.020 (Definitions of Specialized Terms and Phrases) of the Newport Beach Municipal Code is hereby amended to read as follows: "Bed and breakfast inn" means a dwelling unit that offers guest rooms or suites for a fee for thirty (30) days or less, with incidental eating and drinking service provided from a single kitchen for guests only. Section 5: The title and definition of "Short-term lodging" of Section 21.70.020 (Definitions of Specialized Terms and Phrases) of the Newport Beach Municipal Code is hereby amended to read as follows: "Short term lodging" means a dwelling unit that is rented or leased as a single housekeeping unit (see "Single housekeeping unit") for a period of thirty (30) days or less. 24-67 EXHIBIT "B" FINDINGS IN SUPPORT OF LOCAL COASTAL PLAN AMENDMENT NO. PA2023- 0116 1. The LCP Amendment (PA2023-0116) is consistent with the City's General Plan. It would serve to implement the following goals and policies of the General Plan: Land Use Element Policy LU 2.6 (Visitor Serving Uses), which states, "Provide uses that serve visitors to Newport Beach's ocean, harbor, open spaces, and other recreational assets, while integrating them to protect neighborhoods and residents." The proposed amendment would allocate and allow 75 short term lodging permits within the MU-W2 and MU-CV/15th St. coastal zoning districts, subject to specific regulations that would require the operation of short term lodging would be subject to a permit issued by the City, managed by professional management, and not impact parking in the neighborhood. The amendment would also maintain the existing Citywide maximum cap of 1,550 permits by establishing a maximum cap of 1,475 permit with residential coastal zoning districts and a maximum cap of 75 permit within the MU-W2 and MU-CV/15th St. coastal zoning districts. This would maintain the existing allowance for this type of visitor accommodations in the City without altering existing provisions and regulations on short term lodging previously adopted to protect residential neighborhoods. Land Use Element Goal LU 4, which states, "Management of growth and change to protect and enhance the livability of neighborhoods and achieve distinct and economically vital business and employment districts, which are correlated with supporting infrastructure and public services and sustain Newport Beach's natural setting." In specific mixed -use zones larger scale (twenty (20) or more units) permit holders would be permitted to operate. This provides additional opportunities for properties in the mixed -use zones to achieve and maintain economic viability and minimizes impacts on residential neighborhoods. 2. The LCP Amendment serves to implement Coastal Land Use Plan (CLUP) Table 2.1.1-1 (Land Use Plan Categories) of the LCP, which establishes the type, density, and intensity of land uses within the coastal zone. The amendment would allow the operation of short term lodging in certain mixed -use coastal zoning districts where the commercialization of existing residential dwellings as visitor accommodations is more appropriate. This is consistent with allowing visitor serving accommodations in the mixed -use zones while maintaining the adopted regulations to protect residential zones. 3. CLUP Policy 2.3.3-6 authorizes the short term rental of dwelling units as a means of providing lower -cost overnight visitor accommodations. The City currently limits the maximum number of short term rentals at a cap of 1,550 permits to prevent adverse impacts to residential areas and preserve housing stock within the coastal zone. To allow for the small expansion of short term lodging in the more appropriate mixed use coastal zoning districts, but maintain and protect existing maximum cap of 1,550 permits, this amendment establishes two separate caps: 1) a maximum cap of 1,475 permit with residential coastal zoning districts; and, 2) a maximum cap of 75 permit within the MU-W2 and MU-CV/15th St. coastal zoning districts. 24-69 Attachment C Ordinance No. 2023-23 24-70 ORDINANCE NO. 2023-23 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH, CALIFORNIA, APPROVING A CODE AMENDMENT TO CHAPTER 5.95 (SHORT TERM LODGING PERMIT) AND TITLE 20 (PLANNING AND ZONING) OF THE NEWPORT BEACH MUNICIPAL CODE RELATED TO SHORT TERM LODGING (PA2023-0116) WHEREAS, Section 200 of the City of Newport Beach ("City") Charter vests the City Council with the authority to make and enforce all laws, rules, and regulations with respect to municipal affairs subject only to the restrictions and limitations contained in the Charter and the State Constitution, and the power to exercise, or act pursuant to any and all rights, powers and privileges, or procedures granted or prescribed by any law of the State of California; WHEREAS, Section 20.66.020 (Initiation of Amendment) of the Newport Beach Municipal Code ("NBMC") provides that the Planning Commission or the City Council of the City of Newport Beach ("City Council") may initiate an amendment to Title 20 (Planning and Zoning) ("Title 20") of the Newport Beach Municipal Code ("NBMC"); WHEREAS, on May 23, 2023, the City Council directed the Planning Commission to identify opportunities to modify Titles 20 and 21 of the NBMC, effectively initiating amendments, to facilitate new visitor serving accommodation opportunities within the Mixed -Use Water (MU-W2) and Mixed -Use Cannery Village and 15th Street (MU-CV/15th St.) zoning districts ("Code Amendment"); WHEREAS, on June 22, 2023, the Planning Commission discussed amendments to Titles 20 and 21 to facilitate new visitor serving accommodations; WHEREAS, the Planning Commission held a public hearing on October 19, 2023, in the City Council Chambers, located at 100 Civic Center Drive, Newport Beach, California. A notice of time, place and purpose of the hearing was given in accordance with California Government Code Section 54950 et seq. ("Ralph M. Brown Act") and Chapter 20.62 (Public Hearings) of the NBMC. Evidence, both written and oral, was presented to, and considered by, the Planning Commission at this hearing; WHEREAS, at the conclusion of the hearing, the Planning Commission adopted Resolution No. PC2023-037 by a majority vote (3 ayes, 1 nay) recommending approval of the Code Amendment to the City Council; and ';itv of Newport Bear Z,_„ Ordinance No. 2023-23 Page 2 of 4 WHEREAS, the City Council held duly noticed public hearing on November 28, 2023, in the City Council Chambers located at 100 Civic Center Drive, Newport Beach, California. A notice of time, place and purpose of the public hearing was given in accordance with the Ralph M. Brown Act and Chapter 20.62 (Public Hearings) of the NBMC. Evidence, both written and oral, was presented to, and considered by, the City Council at this public hearing. NOW THEREFORE, the City Council of the City of Newport Beach ordains as follows: Section 1: The City Council of the City of Newport Beach does hereby approve Code Amendment No. PA2023-0116 to amend Chapter 5.95 (Short Term Lodging Permit) and Title 20 (Planning and Zoning) of the Newport Beach Municipal Code as set forth in Exhibit "A," and supported by the findings set forth in Exhibit "B," both of which are attached hereto and incorporated herein by reference. Section 2: The recitals provided in this ordinance are true and correct and are incorporated into the substantive portion 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 such decision shall not affect the validity or constitutionality of the remaining portions of this Ordinance. The City Council hereby declares that it would have passed this Ordinance, and each section, subsection, clause or phrase hereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases may be declared invalid or unconstitutional. Section 4: The City Council of the City of Newport Beach finds the introduction and adoption of this ordinance is exempt from environmental review under the California Environmental Quality Act ("CEQA") pursuant to Section 15060(c)(2) of the CEQA Guidelines, California Code of Regulations, Title 14, Division 6, Chapter 3, which states that an activity is not subject to CEQA if "[t]he activity will not result in a direct or reasonably foreseeable indirect physical change in the environment". The Code Amendment would allow existing residential dwelling units in mixed -use zones to be used as short term lodging. The Code Amendment would not authorize new development that would result in a physical change in the environment. itv of Newpoft Beat- ' 24_72 Ordinance No. 2023-23 Page 3 of 4 Section 5: Except as expressly modified in this ordinance, all other sections, subsections, terms, clauses and phrases set forth in the Newport Beach Municipal Code shall remain unchanged and shall be in full force and effect. Section 6: The Mayor shall sign and the City Clerk shall attest to the passage of this ordinance. This ordinance shall take effect upon certification of Local Coastal Program Amendment No. PA2023-0116 by California Coastal Commission. The City Clerk shall cause the ordinance, or a summary thereof, to be published pursuant to City Charter Section 414. City of Newport Beach ,,,, Ordinance No. 2023-23 Page 4 of 4 This ordinance was introduced at a regular meeting of the City Council of the City of Newport Beach held on the 28th day of November 2023, and adopted on the 12th day of December 2023, by the following vote, to -wit: AYES: Mayor Pro Tern O'Neill, Councilmember Avery, Councilmember Grant, Councilmember Kleiman, Councilmember Stapleton, and Councilmember Weigand NAYS: RECUSED: Mayor Blom NOAFf BLOM, MAYOR ATTEST: [&I);) ////11. - -- Tr , MY CLERK APPROVED AS TO FORM: CITY TTORNEY'S OFFICE AA ON C. HARP, CI ATTORNEY Attachments: Exhibit A — Code Amendment No. PA2023-0116 Exhibit B — Findings in Support of Code Amendment No. PA2023-0116 City of Newport Beach ,,,, EXHIBIT "A" CODE AMENDMENT NO. PA2023-0116 Section 1: The Table of Contents of Chapter 5.95 (Short Term Lodging Permit) of the Newport Beach Municipal Code is hereby amended to read as follows: Chapter 5.95 SHORT TERM LODGING PERMIT Sections: 5.95.005 Purpose and Findings. 5.95.010 Definitions. 5.95.015 Properties Eligible for Short Term Lodging Permits. 5.95.020 Permit Required. 5.95.025 Agency. 5.95.030 Application for Permit. 5.95.035 Denial of Permit. 5.95.040 Filing Fee. 5.95.042 Maximum Number of Permits. 5.95.043 Transfer of Permit. 5.95.045 Conditions. 5.95.047 Violations of Permit Conditions by Transient User, Occupant or Guest. 5.95.050 Agents and Hosting Platform Responsibilities. 5.95.055 Issuance of Administrative Subpoenas. 5.95.065 Suspensions and Revocations. 5.95.070 Permits and Fees Not Exclusive. 5.95.080 License and Permit Closure. "'i,l ® r)f Ni-awport Beach 24-75 Section 2: Subsection (B) of Section 5.95.005 (Purpose and Findings) of the Newport Beach Municipal Code is hereby amended to read as follows: B. Over a thousand dwelling units within residential zones near the City's beaches and harbor are rented for thirty (30) consecutive days or less with the vast majority of those rentals occurring during the summer when the demand for parking and City services is the greatest. Section 3: Subsection (C) of Section 5.95.005 (Purpose and Findings) of the Newport Beach Municipal Code is hereby amended to read as follows: C. Many of the occupants of short term lodging units are permanent residents of areas distant from Newport Beach and the City has no effective way to prevent occupants from continuing to violate provisions of this Code and the Cal. Pen. Code relating to noise, disturbances and disorderly conduct. The only effective way to minimize the problems associated with occupancy of short term lodging units is to impose responsibility on the owner of the property, either personally or through an agent, to control the conduct of guests and occupants. Section 4: Subsection (L) of Section 5.95.005 (Purpose and Findings) of the Newport Beach Municipal Code is hereby amended to read as follows: L. The restrictions of this chapter are necessary to preserve the City's housing stock, the quality and character of the City's residential neighborhoods and mixed -use areas as well as to prevent and address the impacts on residential neighborhoods posed by short term lodgings. Section 5: Subsection (M) of Section 5.95.005 (Purpose and Findings) of the Newport Beach Municipal Code is hereby added to read as follows: M. With appropriate restrictions, certain mixed -use zones present an opportunity to accommodate tourists while protecting the City's residential zones. Section 6: Section 5.95.010 (Definitions) of the Newport Beach Municipal Code is hereby amended to read as follows: 5.95.010 Definitions. For the purpose of this chapter, the following definitions shall apply: A. "Accessory dwelling unit" shall have the same definition as set forth in Chapter 20.70. B. "Agent" shall mean any person who is authorized in writing by the owner to represent and act for an owner. ,Citv of Newport Bear 24_76 C. "Booking transaction" shall mean any reservation or payment service provided by a person who facilitates a short term lodging rental transaction between a transient user and owner for the use of a unit for a period of thirty (30) consecutive days or less. D. "Gross floor area" shall mean the area of the lodging unit that includes the surrounding exterior walls and any interior finished portion of a structure that is accessible and that measures more than six (6) feet from finished floor to ceiling. Stairwells and elevator shafts above the first (1) level shall be excluded from the calculation of gross floor area. E. "Home -sharing" shall mean an activity whereby the owner hosts a transient user in the owner's lodging unit, for compensation, for periods of less than thirty (30) consecutive calendar days, during which time the owner of the unit lives on site, in the unit, throughout the transient user's stay and the owner, the transient user and any other occupants live together in the same unit as a single housekeeping unit. F. "Hosting platform" shall mean a person, other than an owner or agent, who participates in the short term lodging business by facilitating a booking transaction using any medium of facilitation. G. "Lodging unit" or "unit" shall mean a "dwelling unit" as that term is defined in Chapter 20.70. An accessory dwelling unit shall not be considered a lodging unit or unit for purposes of this chapter. H. "Multi -use area" shall mean those areas of the City designated by Title 20 and Title 21 as Mixed -Use Water (MU-W2) and Mixed -Use Cannery Village and 15th Street (MU- CV/15th St.). I. "Owner" shall mean the person(s) that hold(s) legal and/or equitable title to the lodging unit. K. "Residential district" shall mean those areas of the City so designated by Title 20 as well as any other area in the City designated for a residential use as part of a planned community development plan, specific area plan or planned residential district. J. "Short term" shall mean a lodging unit that is rented or leased as a single housekeeping unit for a period of thirty (30) consecutive days or less. This also includes home -sharing. L. "Short term lodging unit registry" shall mean the published registry maintained by the City that sets forth a list of all owners and the address of all units that have a valid short term lodging permit and business license with the City, a copy of which is available, without charge, to any person who requests a copy and which shall be accessible on the City's website. M. "Single housekeeping unit" shall have the same definition as set forth in Chapter 20.70. ';itv of Newport Bea(. 24_77 N. "Transient" or "transient user" shall mean any person or persons who, for any period of thirty (30) consecutive days or less either at his or her own expense, or at the expense of another, obtains lodging in a lodging unit or the use of any lodging space in any unit, for which lodging or use of lodging space a charge is made. Section 7: The title and contents of Section 5.95.015 (Residential Properties Eligible for Short Term Lodging Permits) of the Newport Beach Municipal Code are hereby amended to read as follows: 5.95.015 Properties Eligible for Short Term Lodging Permits. Only properties in a residential district or multi -use area that are authorized under Titles 20 and 21 and this chapter shall be eligible for a short term lodging permit. Subsequent to June 1, 2004, no annual permit shall be issued to or renewed for any dwelling unit on any parcel zoned for "Single -Unit Residential (R-1)" or that is designated for a single-family residential use as part of a planned community development plan, specific area plan or planned residential district, unless a permit has previously been issued for that lodging unit and the permit was not subsequently revoked. Section 8: Section 5.95.020 (Permit Required) of the Newport Beach Municipal Code is hereby amended to read as follows: 5.95.020 Permit Required. No owner of a lodging unit shall advertise for rent or rent a lodging unit located within a residential district or multi -use area for a short term without a valid short term lodging permit for that unit issued pursuant to this chapter. Section 9: Section 5.95.030 (Application for Permit) of the Newport Beach Municipal Code is hereby amended to read as follows: 5.95.030 Application for Permit. An application for an annual short term lodging permit, renewal of a short term lodging permit, reinstatement of a short term lodging permit or transfer of a short term lodging permit shall be filed with the Finance Director upon forms provided by the City. A. An application for a new permit, renewal permit, the reinstatement of a permit or the transfer of a permit shall contain the following information: 1. The name, address and telephone number of the owner of the unit for which the short term lodging permit is to be issued. 2. The name, address and telephone number of the agent, if any, of the owner of the unit. C itv of N e-wport Bear 24_7e 3. Evidence of a valid business license issued by the City for the separate business of operating a short term lodging unit or units. 4. The number of bedrooms in the lodging unit. 5. The gross floor area of the lodging unit. 6. The number of parking spaces available on site and a description indicating the location and size of each parking space. 7. A nuisance response plan, which sets forth the owner's plan for handling disruptive transient users. 8. A certification that the applicant has reviewed the covenants, conditions and restrictions, if any, and a short term use is permitted at the location pursuant to the terms of the covenants, conditions and restrictions, if any. 9. Acknowledgment of receipt and inspection of a copy of all regulations pertaining to the operation of a short term lodging unit. 10. Such other information as the Finance Director deems reasonably necessary to administer this chapter. B. An application for the renewal of a short term lodging permit shall be filed within thirty (30) days of the short term lodging permit's expiration, or the short term lodging permit shall be deemed abandoned. C. An application for the reinstatement of a short term lodging permit closed by the Finance Director pursuant to Section 5.95.080 shall be filed within thirty (30) days of the date the permit was closed by the Finance Director, or the short term lodging permit shall be deemed abandoned. D. An application for the reinstatement of a previously suspended short term lodging permit shall be filed within thirty (30) days of the end of the suspension period, or the short term lodging permit shall be deemed abandoned. E. If any application is deemed incomplete, which shall be determined in the sole discretion of the Finance Director, the application shall be completed within thirty (30) days of the service of notice that the application is incomplete, which shall be served in accordance with Section 1.08.080, or the application and any associated permit shall be deemed abandoned. F. If good causes exist, as determined in the sole discretion of the Finance Director, the Finance Director may extend the deadlines set forth in subsections (B) through (E) of this section. City of Newport Bea(- 24-79 Section 10: Section 5.95.035 (Denial of Permit) of the Newport Beach Municipal Code is amended to read as follows: 5.95.035 Denial of Permit. If permits are available for issuance, no timely application filed by an owner for an annual permit, renewal of a permit, reinstatement of a permit or transfer of a permit for a unit eligible to be used as a short term lodging unit, as provided for in Section 5.95.015 and this Code, shall be denied unless: the owner does not have a current valid business license; the owner has failed to pay transient occupancy tax, the visitor service fee, a penalty, a fine or inspection cost, due and owing to the City; the nuisance response plan is deemed inadequate by the Finance Director; the short term lodging permit for the same unit and issued to the same owner has been revoked, or the short term lodging permit is not eligible for reinstatement. Section 11: Section 5.95.042 (Maximum Number of Permits) of the Newport Beach Municipal Code is hereby amended to read as follows: 5.95.042 Maximum Number of Permits. A. Except as provided in subsection (B), the maximum number of short term lodging permits in a residential district shall be limited to one thousand four hundred seventy- five (1,475) permits at any time. If there are more than one thousand four hundred seventy-five (1,475) valid permits in residential districts as of January 13, 2022, an owner shall be permitted to renew, reinstate, or transfer a valid permit in accordance with the provisions of this chapter; however, no new permit shall be issued to any person on the waiting list, as described in subsection (F) of this section, until the total number of residential district permits does not exceed one thousand four hundred seventy-five (1,475). To avoid wholesale conversion of existing and new housing complexes into short term lodgings within the residential district, multi -unit developments with five (5) or more units may permit a maximum of twenty (20) percent of the total number of units to be short term lodgings (rounded down to the nearest whole number). B. The maximum number of short term lodging permits in the multi -use area shall be limited to seventy-five (75) permits. No new permit shall be issued to any person on the waiting list, as described in subsection (F) of this section, until the total number of multi -use area permits is less than seventy-five (75). Notwithstanding the foregoing, the seventy-five (75) permit maximum shall not apply to a short term lodging unit that was legally established as of November 25, 2010, on a lot within a Mixed -Use Coastal Zoning District provided the owner maintains a valid short term lodging permit that is not subsequently revoked or abandoned. C. For purposes of calculating the maximum number of short term lodging permits available as provided in subsection (A) or (B) of this section, a permit shall be deemed valid and unavailable unless abandoned in accordance with Sections 5.95.030(B) through (F), and/or Section 5.95.043(B) or, if the short term lodging permit has been revoked and the time has run to seek administrative or judicial review of the decision. Citv of Ne Poft Bear_ 24_80 D. An owner who has a short term lodging permit, or an owner seeking to reinstate a short term lodging permit that has not been abandoned in accordance with Sections 5.95.030(B) through (F), shall have priority to renew or reinstate the permit over anyone on the waiting list, as described in subsection (F) of this section. E. An owner seeking to transfer a valid short term lodging permit that files an application within the time frames set forth in Section 5.95.043(A) shall have priority to transfer the permit over anyone on the waiting list, as described in subsection (F) of this section. F. If the City has issued the maximum number of permits available, the City shall maintain a waiting list. An application for placement on the waiting list shall be submitted to the Finance Director, on a form approved by the Finance Director, and shall be accompanied by a fee established by resolution of the City Council. In the event a short term lodging permit becomes available, the Finance Director shall notify the person or persons next in order on the waiting list as provided for in Section 1.08.080. The notice shall specify that applications will be accepted for ten (10) days after the date of the notice, and that failure to apply within the ten (10) day period shall result in removal of the person or persons receiving notice from the waiting list. The City shall not be liable for a failure to notify any person or persons on the waiting list since placement on the list does not create any property right in any person or persons on the list nor any contractual obligation on the part of the City. Section 12: Subsections A(19) through A(22) of Section 5.95.045 (Conditions) of the Newport Beach Municipal Code are hereby amended to read as follows: 19. The owner shall allow the City to inspect the short term lodging unit to confirm the number of bedrooms, gross floor area, and number/availability of parking spaces, seven (7) days after the City serves the owner with a request for inspection in accordance with Section 1.08.080. If, based on the inspection, it is determined that the information submitted to the City in accordance with Section 5.95.030 was false, in addition to any other remedy set forth in this chapter, the owner agrees that the owner shall be liable for the cost of conducting the inspection. 20. The owner shall provide the City with a copy of any written rental agreement(s) and the good neighbor policy, within seven (7) days after the City serves the owner with a notice of request for written rental agreements and the good neighbor policy in accordance with Section 1.08.080. 21. Neither an owner nor the owner's agent shall rent, let, advertise for rent, or enter into an agreement for the rental of any lodging unit, for less than two (2) consecutive nights. 22. The owner shall: a. Require every transient user and guest of the transient user to comply with all State and local laws that regulate parking while staying at or visiting the short term lodging unit, Citv of Newpoft Bear 24_81 b. Require every transient user to provide the owner with the license plate number for all vehicles which are used by the transient user or the transient user's guest while staying at or visiting the short term lodging unit; and C. Provide the City with the vehicle license plate number(s) for every vehicle which was used by the transient user or the transient user's guest while staying at or visiting the short term lodging, within seven (7) days after the City serves the owner with a notice of request for the vehicle license plate number(s) in accordance with Section 1.08.080. Section 13: Section 5.95.055 (Issuance of Administrative Subpoenas) of the Newport Beach Municipal Code is hereby amended to read as follows: 5.95.055 Issuance of Administrative Subpoenas. The City Manager shall have the authority to issue and serve administrative subpoenas to the owner, agent or hosting platform, as necessary, to obtain specific information regarding short term 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 short term rental listing complies with this chapter. Any subpoena issued pursuant to this section shall not require the production of information sooner than thirty (30) days from the date of service. A person that has been served with an administrative subpoena may seek judicial review during that thirty (30) day period. Failure to respond to an administrative subpoena in accordance with the terms set forth therein shall be punishable in accordance with Section 5.95.060 and the City may file a judicial action to compel compliance with the subpoena. Section 14: Section 5.95.060 (Violations, Penalties and Enforcement) of the Newport Beach Municipal Code is hereby deleted in its entirety. Section 15: Subsection A(3) of Section 5.95.065 (Suspensions and Revocations) of the Newport Beach Municipal Code is hereby amended to read as follows: 3. If a lodging unit that is subject to a short term lodging permit has been the location of two (2) or more loud or unruly gatherings, as defined in Chapter 10.66, while the lodging unit was occupied on a short term basis, within any twenty-four (24) month period, the permit may be suspended for a period of one (1) year or revoked in accordance with subsection (B) of this section. A loud or unruly gathering that occurred prior to the passage of fourteen (14) days from the mailing of notice to the owner in compliance with Section 10.66.030(D) shall not be included within the calculation of the two (2) or more loud or unruly gatherings required to revoke a short term lodging permit. C itv of N e-wpoft Bea.- - 24_82 Section 16: Subsection (B) of Section 5.95.065 (Suspensions and Revocations) of the Newport Beach Municipal Code is hereby amended to read as follows: B. Permits shall be suspended or revoked, only in the manner provided in this section. 1. The Finance Director shall investigate whenever he or she has reason to believe that an owner has submitted an application that contains false information or committed a violation of a permit condition, this Code, state or federal law related to a permitted unit. Such investigation may include, but is not limited to, on -site property inspections. Should the investigation reveal substantial evidence to support a finding that warrants a suspension or revocation of the short term lodging permit, the Finance Director shall issue written notice of intention to suspend or revoke the short term lodging permit. The written notice shall be served on the owner in accordance with Section 1.08.080, and shall specify the facts which, in the opinion of the Finance Director constitute substantial evidence to establish grounds for imposition of the suspension and/or revocation, and specify the proposed time the short term lodging permit shall be suspended and/or that the short term lodging permit shall be revoked within thirty (30) days from the date the notice is given, unless the owner files with the Finance Director, before the suspension and/or revocation becomes effective, a request for hearing before a hearing officer, who shall be retained by the City, and pays the fee for the hearing established by resolution of the City Council. 2. If the owner requests a hearing and pays the hearing fee, established by resolution of the City Council, within the time specified in subsection (B)(1) of this section, the Finance Director shall serve written notice on the owner, pursuant to Section 1.08.080, setting forth the date, time and place for the hearing. The hearing shall be scheduled not less than fifteen (15) days, nor more than sixty (60) days, from the date on which notice of the hearing is served by the Finance Director. The hearing shall be conducted according to the rules normally applicable to administrative hearings. At the hearing, the hearing officer will preside over the hearing, take evidence and then submit proposed findings and recommendations to the City Manager. The City Manager shall suspend or revoke the short term lodging permit only upon a finding that a violation has been proven by a preponderance of the evidence, and that the suspension or revocation is consistent with the provisions of this section. The City Manager shall render a decision within thirty (30) days of the hearing and the decision shall be final as to the City but subject to judicial review pursuant to Cal. Code Civ. Proc. Section 1094.5. Section 17: Section 5.95.080 (License and Permit Closure) of the Newport Beach Municipal Code is hereby amended to read as follows: �itv of Ne'wpoft Bear 24_83 5.95.080 License and Permit Closure. A. Any owner that has ceased operating a short term lodging unit shall inform the Finance Director in writing of the date of the last rental, and having done such, the short term lodging permit shall be closed. The City will send a final transient occupancy tax and visitor service fee bill, which will be due and payable thirty (30) days from the date of the invoice. B. The Finance Director shall close any permit that has no short term lodging activity for a period of two (2) consecutive annual reporting periods as evidenced by the owner and/or agent remitting zero dollars ($0.00) on the required transient occupancy tax and visitor service fee forms or the owner/agent failing to return these forms. After any permit closure pursuant to this subsection, the owner may reapply one (1) time for reinstatement of the short term lodging permit which shall be processed in accordance with Section 5.95.030. Any subsequent closure of the short term lodging permit pursuant to this subsection shall not be eligible for reinstatement. Section 18: Rows entitled "Visitor Accommodations, Residential" and "Short Term Lodging" are hereby added to the "Residential Uses" section of Table 2-8 (Allowed Uses) of Section 20.22.020(C) (Mixed -Use Zoning Districts Land Uses and Permit Requirements) of the Newport Beach Municipal Code to read as follows: Mixed -Use Zoning Districts Permit Requirements P Permitted by Right TABLE 2-8 Conditional Use Permit (Section ALLOWED USES AND CUP 20.52.020) PERMIT REQUIREMENTS MUP Minor Use Permit (Section 20.52.020) LTP Limited Term Permit (Section 20.52.040) — Not Allowed Land Use See Part 7 of this title for MU-MM MU- Specific land use definitions. MU-V (6) MU-DW CV/15th Use See Chapter 20.12 for St. (7) Regulations unlisted uses. Residential Uses Accessory Dwelling Units and P P P P Section Junior Accessory Dwelling 20.48.200 Units Citv of Newport Bear " 24_84 Mixed -Use Zoning Districts Permit Requirements P Permitted by Right TABLE 2-8 Conditional Use Permit (Section ALLOWED USES AND CUP 20.52.020) PERMIT REQUIREMENTS MUP Minor Use Permit (Section 20.52.020) LTP Limited Term Permit (Section 20.52.040) — Not Allowed Land Use See Part 7 of this title for MU-MM MU- Specific land use definitions. MU-V (6) MU-DW CV/15th Use See Chapter 20.12 for St. (7) Regulations unlisted uses. Single -Unit Dwellings Located on 1 st floor — — — P (3) Section 20.48.130 Located above 1 st floor P (1) — — P (3) Section 20.48.130 Multi -Unit Dwellings Located on 1 st floor — P (1)(2) P (1) P (3) Section 20.48.130 Located above 1 st floor P (1) P (1)(2) P (1) P (3) Section 20.48.130 Two -Unit Dwellings Located on 1 st floor — — — P (3) Section 20.48.130 Located above 1 st floor P (1) — — P (3) Section 20.48.130 Home Occupations P P (1) P P Section 20.48.130 Live -Work Units P P (1)(2) P P (3) Visitor Accommodations, Residential Short Term Lodging — — — P Chapter 5.95 Section 19: Rows entitled "Visitor Accommodations, Residential" and "Short Term Lodging" are hereby added to the "Residential Uses" section of Table 2-9 Cf-itv of IVport Bea.- 24-85 (Allowed Uses) of Section 20.22.020(C) (Mixed -Use Zoning Districts Land Uses and Permit Requirements) of the Newport Beach Municipal Code to read as follows: Mixed -Use Zoning Districts Permit Requirements P Permitted by Right CUP Conditional Use Permit TABLE 2-9 (Section 20.52.020) ALLOWED USES AND PERMIT REQUIREMENTS Minor Use Permit (Section MUP 20.52.020) Limited Term Permit LTP (Section 20.52.040) — Not allowed Land Use See Part 7 of this title for land Specific Use use definitions. MU-W1 (5)(6) MU-W2 Regulations See Chapter 20.12 for unlisted uses. Residential Uses Accessory Dwelling Units and Junior P P Section Accessory Dwelling Units 20.48.200 Single -Unit Dwellings Located on 1 st floor — — Located above 1 st floor P (1) P (2) Section 20.48.130 Multi -Unit Dwellings Located on 1 st floor — — Located above 1 st floor P (1) P (2) Section 20.48.130 Two -Unit Dwellings Located on 1 st floor — — Located above 1 st floor P (1) P (2) Home Occupations P P (2) Section 20.48.110 Visitor Accommodations, Residential Short Term Lodging — P Chapter 5.95 ('-,itv of Newport Bear 24-86 Section 20: Subsection A(3)(f) of Section 20.38.060 (Nonconforming Parking) of the Newport Beach Municipal Code is hereby amended to read as follows: f. Outside the coastal zone, dwellings within the residential development shall not be rented for periods of thirty (30) days or less. Refer to subsection (A)(4)(f) of this section for short term lodging allowances for developments within the coastal zone; and Section 21: Subsection B(4)(h) of Section 20.48.205 (SB 9 Housing Developments and Urban Lot Splits in Single -Unit Residential Zoning Districts) of the Newport Beach Municipal Code is hereby amended to read as follows: h. Short Term Lodging. Any dwelling unit permitted pursuant to an SB 9 housing development or urban lot split shall not be rented for periods of thirty (30) days or less. Section 22: The definition of "Bed and breakfast inn" of Section 20.70.020 (Definitions of Specialized Terms and Phrases) of the Newport Beach Municipal Code is hereby amended to read as follows: "Bed and breakfast inn" means a dwelling unit that offers guest rooms or suites for a fee for thirty (30) days or less, with incidental eating and drinking service provided from a single kitchen for guests only. Section 23: The title and definition of "Short-term lodging" of Section 20.70.020 (Definitions of Specialized Terms and Phrases) of the Newport Beach Municipal Code is amended to read as follows: "Short term lodging" means a dwelling unit that is rented or leased as a single housekeeping unit (see "Single housekeeping unit") for a period of less (30) days or less, subject to the requirements of Chapter 5.95 (Short Term Lodging Permits) and any additional standards required by the City Manager. City of Newport Beach „a, EXHIBIT "B" FINDINGS IN SUPPORT OF CODE AMENDMENT NO. PA2023-0116 1. An amendment to Chapter 5.95 (Short Term Lodging Permit) and Title 20 (Planning and Zoning) of the NBMC is a legislative act. There are no required findings for either approval or denial of such amendments. Notwithstanding the foregoing, the Code Amendment is consistent with the following goals and policies of the City's General Plan: Land Use Element Policy LU 2.6 (Visitor Serving Uses), which states, "Provide uses that serve visitors to Newport Beach's ocean, harbor, open spaces, and other recreational assets, while integrating them to protect neighborhoods and residents." The Code Amendment would allocate and allow 75 short term lodging permits within the MU-W2 and MU-CV/15th St. zones, both of which are located in the Coastal Zone, subject to specific regulations that would require the operation of short-term lodging would be subject to a permit issued by the City, managed by professional management, and not impact parking in the neighborhood. The Code Amendment would also maintain the existing Citywide maximum cap of 1,550 permits by establishing a maximum cap of 1,475 permit with residential coastal zoning districts and a maximum cap of 75 permit within the MU-W2 and MU-CV/15th St. coastal zoning districts. This would maintain the existing allowance for this type of visitor accommodations in the additional visitor accommodations in the City without altering existing provisions and regulations on short term lodging previously adopted to protect residential neighborhoods. Land Use Element Goal LU 4 states, "Management of growth and change to protect and enhance the livability of neighborhoods and achieve distinct and economically vital business and employment districts, which are correlated with supporting infrastructure and public services and sustain Newport Beach's natural setting." In specific mixed use zones, permit holders would be permitted to operate short term lodging. This provides additional opportunities for properties in the mixed -use zones to achieve and maintain economic viability and avoids new impacts on residential neighborhoods. 2. A Local Coastal Program Amendment is also underway to ensure the regulations within the Coastal Zone are consistent with the Code Amendment. City of Newport Beach 2488 STATE OF CALIFORNIA } COUNTY OF ORANGE } ss. CITY OF NEWPORT BEACH } I, Leilani I. Brown, City Clerk of the City of Newport Beach, California, do hereby certify that the whole number of members of the City Council is seven; that the foregoing ordinance, being Ordinance No. 2023-23 was duly introduced on the 281h day of November, 2023, at a regular meeting, and adopted by the City Council at a regular meeting duly held on the 12th day of December, 2023, and that the same was so passed and adopted by the following vote, to wit: AYES: Mayor Pro Tern Will O'Neill, Councilmember Brad Avery, Councilmember Robyn Grant, Councilmember Lauren Kleiman, Councilmember Joe Stapleton, Councilmember Erik Weigand NAYS: None RECUSED: Mayor Noah Blom IN WITNESS WHEREOF, I have hereunto subscribed my name and affixed the official seal of said City this 13th day of December, 2023. ab�j,(�Ih ---" Leilani I. Brown, MMC City Clerk City of Newport Beach, California CERTIFICATE OF PUBLICATION STATE OF CALIFORNIA } COUNTY OF ORANGE } ss. CITY OF NEWPORT BEACH } I, Leilani I. Brown, City Clerk of the City of Newport Beach, California, do hereby certify that Ordinance No. 2023-23 has been duly and regularly published according to law and the order of the City Council of said City and that same was so published in The Daily Pilot, a newspaper of general circulation on the following dates: Introduced Ordinance: December 2, 2023 Adopted Ordinance: December 16, 2023 In witness whereof, I have hereunto subscribed my name this day of December, 2023. Leilani I. Brown, MMC City Clerk City of Newport Beach, California 24-89 Attachment D Resolution No. 2023-83 24-90 RESOLUTION NO. 2023-83 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH, CALIFORNIA, AUTHORIZING SUBMITTAL OF A LOCAL COASTAL PLAN AMENDMENT TO THE CALIFORNIA COASTAL COMMISSION AMENDING TITLE 21 (LOCAL COASTAL PROGRAM IMPLEMENTATION PLAN) OF THE NEWPORT BEACH MUNICIPAL CODE RELATED TO SHORT TERM LODGING (PA2023-0116) WHEREAS, Section 200 of the City of Newport Beach ("City") Charter vests the City Council with the authority to make and enforce all laws, rules and regulations with respect to municipal affairs subject only to the restrictions and limitations contained in the Charter and the State Constitution, and the power to exercise, or act pursuant to any and all rights, powers, and privileges, or procedures granted or prescribed by any law of the State of California; WHEREAS, Section 30500 of the California Public Resources Code requires each county and city to prepare a Local Coastal Program ("LCP") for that portion of the coastal zone within its jurisdiction; WHEREAS, in 2005, the City of Newport Beach adopted the City of Newport Beach Local Coastal Program Coastal Land Use Plan as amended from time to time; WHEREAS, the California Coastal Commission effectively certified the City's Local Coastal Program Implementation Plan on January 13, 2017, and the City added Title 21 (Local Coastal Program Implementation Plan) ("Title 21") to the City of Newport Beach Municipal Code ("NBMC") whereby the City assumed coastal development permit -issuing authority on January 30, 2017; WHEREAS, City Council Policy K-1 (General Plan and Local Coastal Program) of the NBMC requires amendments to the City of Newport Beach certified Local Coastal Program codified in Title 21 to be initiated by the City Council; WHEREAS, on May 23, 2023, the City Council directed the Planning Commission to identify opportunities to modify Titles 20 and 21 of the NBMC, effectively initiating amendments, to facilitate new visitor serving accommodation opportunities within the Mixed -Use Water (MU-W2) and Mixed -Use Cannery Village and 15t" Street (MU-CV/15th St.) zoning districts ("LCP Amendment"); t kv , rm t::vvport Bea 24-91 Resolution No. 2023-83 Page 2 of 4 WHEREAS, on June 22, 2023, the Planning Commission discussed the amendments to Titles 20 and 21 to facilitate new visitor serving accommodations; WHEREAS, pursuant to Section 13515 (Public Participation and Agency Coordination Procedures) of the California Code of Regulations Title 14, Division 5.5, Chapter 8, Subchapter 2, Article 5 (Public Participation) ("Section 13515"), drafts of LCP Amendment were made available and a Notice of Availability was distributed at least six weeks prior to the anticipated final action date; WHEREAS, the Planning Commission held a public hearing on October 19, 2023, in the City Council Chambers, located at 100 Civic Center Drive, Newport Beach, California. A notice of time, place and purpose of the hearing was given in accordance with California Government Code Section 54950 et seq. ("Ralph M. Brown Act") and Chapter 21.62 (Public Hearings) of the NBMC. Evidence, both written and oral, was presented to, and considered by, the Planning Commission at this hearing; WHEREAS, at the conclusion of the hearing, the Planning Commission adopted Resolution No. PC2023-038 by a majority vote (3 ayes,1 nay) recommending approval of the LCP Amendment to the City Council; and WHEREAS, the City Council held a public hearing on November 28, 2023, in the City Council Chambers located at 100 Civic Center Drive, Newport Beach, California. Notice of time, place and purpose of the public hearing was given in accordance with the Ralph M. Brown Act, Section 13515, and Chapter 21.62 (Public Hearings) of the NBMC. Evidence, both written and oral, was presented to, and considered by, the City Council at this public hearing. NOW, THEREFORE, the City Council of the City of Newport Beach resolves as follows: Section 1: The City Council of the City of Newport Beach does hereby authorize City staff to submit Local Coastal Program Amendment No. PA2023-0116 to the California Coastal Commission to amend Title 21 (Local Coastal Program Implementation Plan) of the Newport Beach Municipal Code as set forth in Exhibit "A," and supported by the findings set forth in Exhibit "B," both of which are attached hereto and incorporated herein by reference. Citvof Newpoft Bea(_- 24_92 Resolution No. 2023-83 Page 3 of 4 Section 2: Local Coastal Program Amendment No. PA2023-0116 shall not become effective until approval by the California Coastal Commission and adoption, including any modifications suggested by the California Coastal Commission, by resolution and/or ordinance of the City Council of the City of Newport Beach. Section 3: The LCP, including this Local Coastal Program Amendment No. PA2023-0116, will be carried out in full conformity with the California Coastal Act. Section 4: The recitals provided in this resolution are true and correct and are incorporated into the operative part of this resolution. Section 5: If any section, subsection, sentence, clause or phrase of this resolution is for any reason held to be invalid or unconstitutional, such decision shall not affect the validity or constitutionality of the remaining portions of this resolution. The City Council hereby declares that it would have passed this resolution, and each section, subsection, sentence, clause or phrase hereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases may be declared invalid or unconstitutional. Section 6: The City Council of the City of Newport Beach finds the Local Costal Program Amendment PA2023-0116 is exempt from environmental review under the California Environmental Quality Act ("CEQA") pursuant to Section 15060(c)(2) of the CEQA Guidelines, California Code of Regulations, Title 14, Division 6, Chapter 3, which states that an activity is not subject to CEQA if "[t]he activity will not result in a direct or reasonably foreseeable indirect physical change in the environment." The LCP Amendment would allow existing residential dwelling units in mixed use zones to be used as short term lodging. The LCP Amendment would not authorize new development that would result in a physical change in the environment. City of Newport Beach ,,,, Resolution No. 2023-83 Page 4 of 4 Section 7: This resolution shall take effect immediately upon its adoption by the City Council, and the City Clerk shall certify the vote adopting the resolution. ADOPTED this 28th day of November 2023. NOAH BLOM Mayor ATTEST: A4M, Leilani I. Brown City Clerk APPROVED AS TO FORM: CITY ATTORNEY'S OFFICE "_" C, w� Aaron C. Harp City Attorney Attachments: Exhibit A - Local Coastal Plan Amendment No. PA2023-0116 Exhibit B - Findings in Support of LCP Amendment No. PA2023-0116 City of Newport Beach 24.94 EXHIBIT "A" LOCAL COSTAL PLAN AMENDMENT NO. PA2023-0116 Section 1: Rows entitled "Visitor Accommodations, Residential" and "Short Term Lodging" are hereby added to the "Residential Uses" section of Table 21.22-1 (Allowed Uses) of Section 21.22.020(C) of the Newport Beach Municipal Code to read as follows: TABLE 21.22-1 ALLOWED USES Mixed -Use Zoning Districts A — Allowed Not Allowed Land Use See Part 7 of this Implementation Plan for land use definitions. See Chapter 21.12 for unlisted uses. MU-V (6) MU-MM (4) MU-CV/15th St. (5)(6) Specific Use Regulations Residential Uses Single -Unit Dwellings Located on 1 st floor — — A (3) Located above 1st floor A (1) — A (3) Multi -Unit Dwellings Located on 1 st floor — A (1)(2) A (3) Located above 1 st floor A (1) A (1)(2) A (3) Two -Unit Dwellings Located on 1 st floor — — A (3) Located above 1 st floor A (1) — A (3) Home Occupations A A (1) A Live -Work Units A A (1)(2) A (3) Accessory Dwelling Units and Junior Accessory Dwelling Units A A A Section 21.48.200 Visitor Accommodations, Residential Short Term Lodging — — A Chapter 5.95 and Section 21.48.115 City of Newport Beach =,y, Section 2: Rows entitled "Visitor Accommodations, Residential" and "Short Term Lodging" are hereby added to the "Residential Uses" section of Table 21.22-2 (Allowed Uses) of Section 21.22.020(C) of the Newport Beach Municipal Code to read as follows: TABLE 21.22-2 ALLOWED USES Mixed -Use Coastal Zoning Districts A Allowed Not Allowed Land Use See Part 7 of this Implementation Plan for land use definitions. See Chapter 21.12 for unlisted uses. MU-W1 (3) MU-W2 (5) Specific Use Regulations Residential Uses Single -Unit Dwellings Located on 1 st floor — — Located above 1st floor A (1) A (2) Multi -Unit Dwellings Located on 1 st floor — — Located above 1 st floor A (1) A (2) Two -Unit Dwellings Located on 1st floor — — Located above 1st floor A (1) A (2) Home Occupations A A (2) Accessory Dwelling Units and Junior Accessory Dwelling Units A A Section 21.48.200 Visitor Accommodations, Residential Short Term Lodging — A Chapter 5.95 and Section 21.48.115 Section 3: The title and content of Section 21.48.115 (Short -Term Lodging) of the Newport Beach Municipal Code are hereby amended to read as follows: 21.48.115 Short Term Lodging. A. Purpose. This section provides standards for the operation of short term lodging units to prevent overburdening City services and adverse impacts on residential neighborhoods, multi -use areas, and on coastal access and resources. Citv of Newport Beach 24_96 B. Permits within a Residential District. 1. No owner of a short term lodging unit shall advertise for rent, or rent a lodging unit located within a residential district for a short term, without a valid short term lodging permit for that unit, issued pursuant to Chapter 5.95. 2. An owner shall be permitted to renew, reinstate, or transfer a valid permit in accordance with the provisions of Chapter 5.95. 3. As set forth in Section 5.95.042 of Chapter 5.95, the maximum number of short term lodging permits shall be limited to one thousand four hundred seventy-five (1,475) permits within a residential district at any time. If there are more than one thousand four hundred seventy-five (1,475) valid permits that have been issued within a residential district as of the effective date of Ordinance No. 2023- , no new permit shall be issued to any person on the waiting list, as described in Section 5.95.042(D), until the total number of permits does not exceed the one thousand four hundred seventy-five (1,475) limit. To avoid wholesale conversion of existing and new housing complexes into short term lodgings, multi -unit developments within a residential district with five (5) or more units may permit a maximum of twenty (20) percent of the total number of units to be short term lodgings (rounded down to the nearest whole number). 4. No short term lodging unit shall be permitted on any lot in the R-1 (Single -Unit Residential) Coastal Zoning District or any lot designated for single -unit dwelling land use as part of a planned community development plan, unless the short term lodging unit was legally established on or before June 1, 2004. C. Permits within Mixed -Use Water Zoning District (MU-W2) and Mixed -Use Cannery Village and 15th Street Zoning District (MU-CV/15th St.). 1. No owner of a short term lodging unit shall advertise for rent, or rent a lodging unit located within the Mixed -Use Water (MU-W2) or Mixed -Use Cannery Village and 15th Street (MU-CV/15th St.) zoning districts for a short term, without a valid short term lodging permit for that unit, issued pursuant to Chapter 5.95. 2. An owner shall be permitted to renew, reinstate, or transfer a valid permit in accordance with the provisions of Chapter 5.95. 3. As set forth in Section 5.95.042 of Chapter 5.95, the maximum number of short- term lodging permits shall be limited to a total of seventy-five (75) permits within the Mixed -Use Water (MU-W2) and Mixed -Use Cannery Village and 15th Street (MU- CV/15th St.) districts at any time. No new permit shall be issued to anyone on the waiting list, as described in Section 5.95.042(F), until the total number of permits is Citv of Newport Bear_._ 24_97 less than seventy-five (75). Notwithstanding the foregoing, the seventy-five (75) permit maximum shall not apply to a short term lodging unit that was legally established as of November 25, 2010, on a lot within a Mixed -Use Coastal Zoning District provided the owner maintains a valid short term lodging permit that is not subsequently revoked or abandoned. 4. Only a property owner that owns twenty (20) or more units under common ownership within the same Statistical Area as defined by the Land Use Element of the General Plan shall be eligible to obtain a short term lodging permit(s) in the MU- W2 and/or MU-CV/15th St. districts. The eligible units may be located upon one (1) or more separate parcels or properties provided they cumulatively add up to twenty (20) or more units, and all units are located within the MU-W2 and/or MU-CV/15th St. districts. Common ownership means the same person, entity or managing partner holds legal and/or equitable title to no less than fifty percent (50%) of each property or entity. D. Operational Standards. The owner, or any other person(s) or entity(ies) that hold(s) legal and/or equitable title to the lodging unit, shall comply with all federal, State, and local laws, rules, regulations and conditions of approval including, but not limited to, all short term lodging permit conditions, as set forth in Chapter 5.95. In addition, the owner, or any other person(s) or entity(ies) that hold(s) legal and/or equitable title to the lodging unit, shall: 1. By written agreement, limit overnight occupancy of the short term lodging unit to the maximum permitted by the Building Code and Fire Code. 2. Use best efforts to ensure that the transient user, occupants and/or guests of the short term lodging unit do not create unreasonable noise or disturbances, engage in disorderly conduct, or violate provisions of this Code or any State or federal law pertaining to noise, disorderly conduct, the consumption of alcohol, or the use of illegal drugs. 3. Upon notification that any transient user, occupant and/or guest of his or her short term lodging unit has created unreasonable noise or disturbances, engaged in disorderly conduct or committed violations of this Code or any State or federal law pertaining to noise, disorderly conduct, the consumption of alcohol or the use of illegal drugs, promptly use best efforts to prevent a recurrence of such conduct by any transient user, occupant or guest. 4. Use best efforts to ensure compliance with applicable health and sanitation regulations relating to waste disposal. Citv of Newpoft Bear 24_98 5. Post a copy of any applicable permits and conditions in a conspicuous place within the unit. 6. Not rent, let, advertise for rent, or enter into an agreement for the rental of any lodging unit, for less than two (2) consecutive nights. 7. The City Manager shall have the authority to impose additional standard conditions, applicable to all short term lodging units, as necessary to achieve the objectives of this section. E. Additional Requirements for Newport Island (Map A-16). To the extent there is any conflict between this subsection and other provisions of the Code related to short term rentals on Newport Island (Map A-16), this subsection shall govern and control. 1. In addition to the restriction set forth in Section 5.95.042 and subsection (13)(3) of this section, the maximum number of short term lodging permits issued for units located on Newport Island shall be limited to twenty (20) short term lodging permits at any one time. If there are more than twenty (20) valid short term lodging permits that have been issued as of January 13, 2022, an owner shall be permitted to renew, reinstate, or transfer a valid permit in accordance with the provisions of Chapter 5.95; however, no new permit shall be issued unless: (a) permits are available for issuance pursuant to Section 5.95.042 and subsection (13)(3) of this section; and (b) the total number of permits for units located on Newport Island does not exceed twenty (20). If the City has issued the maximum number of permits available for units on Newport Island, the City shall maintain a waiting list and follow the same procedures as set forth in Section 5.95.042(D). For purposes of this subsection, the maximum number of permits available will be calculated in the same manner as set forth in Chapter 5.95. 2. An owner, agent, or other person shall only be allowed to rent a dwelling unit on Newport Island for a short term if the dwelling unit is located on a lot with an owner - occupied dwelling unit that is managed by the owner of the owner -occupied dwelling unit. For purposes of this subsection, the term "owner -occupied" means the owner occupies and lives at the property and the property is used as the owner's primary residence no less than one hundred eighty-three (183) days of each year and provides at least two (2) of the following documentation: motor vehicle registration, driver's license, California State Identification card, voter registration, income tax return, property tax bill, or a utility bill showing the dwelling unit is the owner's primary residence. For purposes of this subsection, "managed by the owner" means that the owner is occupying and living at the property while it is being rented for a short term use. Citv of Newport Bear 24_99 3. The owner and/or agent shall limit the overnight occupancy of the short term lodging unit on Newport Island to the lesser of: (a) the number of occupants that can be accommodated consistent with the on -site parking requirement set forth in subsection (E)(4) of this section, or (b) two (2) persons per bedroom plus two (2) additional persons, up to a maximum of ten (10) persons. Additional daytime guests are allowed between the hours of 7:00 a.m. and 10:00 p.m. with the maximum daytime occupancy limited to a number equal to the maximum overnight occupancy plus six (6) additional persons. The occupancy restrictions set forth in this subsection shall be set forth in a written rental agreement. 4. Each short term lodging unit on Newport Island shall provide a minimum of one (1) parking space in an existing garage or carport. Occupancy shall be limited to a maximum of five overnight guests for a short term lodging unit providing only one (1) parking space. The parking required by this subsection shall be free of obstructions and available for use by the short term lodging user. 5. No owner, agent, or other person shall rent or let a short term lodging unit on Newport Island more than once in any seven -consecutive -day period. F. Additional Requirements for the Mixed -Use Water Zoning District (MU-W2) and Mixed -Use Cannery Village and 15th Street Zoning District (MU-CV/15th St.). To the extent there is any conflict between this subsection and other provisions of the Code related to short term lodging within the Mixed -Use Water (MU-W2) district or Mixed -Use Cannery Village and 15th Street (MU-CV/15th St.) district, this subsection shall govern and control. 1. Prior to issuance of a short term lodging permit, a management plan shall be submitted for review and approval by the Community Development Director. The management plan shall include the following: a. Acknowledgement and method of compliance with all operational standards identified in Subsection 21.48.115(D) for all short term lodging units on the property or properties; b. Identification of professional management responsible for administering the permit; c. Evidence of eligibility and compliance with ownership requirements of Subsection 21.48.115(C)(4) above; d. Demonstration that on -site amenities are provided to guests; and e. Parking management plan ensuring all available on -site parking remain free of obstructions and available for use by the short term lodging user. For Citv of N e-wPort Bear 24_100 short term lodging units that are non -conforming due to number of parking spaces provided, sufficient data to indicate that parking demand will be less than the required number of spaces or that other parking is available (e.g., City parking lot located nearby, on -street parking available, greater than normal walk in trade, alternative transportation, etc.) such that use or operation of the short term lodging permit will not reduce availability of parking in nearby residential neighborhoods. 2. No deed -restricted affordable housing units shall be used for short term lodging. Section 4: The definition of "Bed and breakfast inn" of Section 21.70.020 (Definitions of Specialized Terms and Phrases) of the Newport Beach Municipal Code is hereby amended to read as follows: "Bed and breakfast inn" means a dwelling unit that offers guest rooms or suites for a fee for thirty (30) days or less, with incidental eating and drinking service provided from a single kitchen for guests only. Section 5: The title and definition of "Short-term lodging" of Section 21.70.020 (Definitions of Specialized Terms and Phrases) of the Newport Beach Municipal Code is hereby amended to read as follows: "Short term lodging" means a dwelling unit that is rented or leased as a single housekeeping unit (see "Single housekeeping unit") for a period of thirty (30) days or less. City of Newport Beach 24101 EXHIBIT "B" FINDINGS IN SUPPORT OF LOCAL COASTAL PLAN AMENDMENT NO. PA2023- 0116 1. The LCP Amendment (PA2023-0116) is consistent with the City's General Plan. It would serve to implement the following goals and policies of the General Plan: Land Use Element Policy LU 2.6 (Visitor Serving Uses), which states, "Provide uses that serve visitors to Newport Beach's ocean, harbor, open spaces, and other recreational assets, while integrating them to protect neighborhoods and residents." The proposed amendment would allocate and allow 75 short term lodging permits within the MU-W2 and MU-CV/15th St. coastal zoning districts, subject to specific regulations that would require the operation of short term lodging would be subject to a permit issued by the City, managed by professional management, and not impact parking in the neighborhood. The amendment would also maintain the existing Citywide maximum cap of 1,550 permits by establishing a maximum cap of 1,475 permit with residential coastal zoning districts and a maximum cap of 75 permit within the MU-W2 and MU-CV/15th St. coastal zoning districts. This would maintain the existing allowance for this type of visitor accommodations in the City without altering existing provisions and regulations on short term lodging previously adopted to protect residential neighborhoods. Land Use Element Goal LU 4, which states, "Management of growth and change to protect and enhance the livability of neighborhoods and achieve distinct and economically vital business and employment districts, which are correlated with supporting infrastructure and public services and sustain Newport Beach's natural setting." In specific mixed -use zones larger scale (twenty (20) or more units) permit holders would be permitted to operate. This provides additional opportunities for properties in the mixed -use zones to achieve and maintain economic viability and minimizes impacts on residential neighborhoods. 2. The LCP Amendment serves to implement Coastal Land Use Plan (CLUP) Table 2.1.1-1 (Land Use Plan Categories) of the LCP, which establishes the type, density, and intensity of land uses within the coastal zone. The amendment would allow the operation of short term lodging in certain mixed -use coastal zoning districts where the commercialization of existing residential dwellings as visitor accommodations is more appropriate. This is consistent with allowing visitor serving accommodations in the mixed -use zones while maintaining the adopted regulations to protect residential zones. 3. CLUP Policy 2.3.3-6 authorizes the short term rental of dwelling units as a means of providing lower -cost overnight visitor accommodations. The City currently limits the maximum number of short term rentals at a cap of 1,550 permits to prevent adverse impacts to residential areas and preserve housing stock within the coastal zone. To allow for the small expansion of short term lodging in the more appropriate mixed C_Jtv of N�wport Bear_._ 24_102 4. use coastal zoning districts, but maintain and protect existing maximum cap of 1,550 permits, this amendment establishes two separate caps: 1) a maximum cap of 1,475 permit with residential coastal zoning districts; and, 2) a maximum cap of 75 permit within the MU-W2 and MU-CV/15th St. coastal zoning districts. City of Newport Beach 24103 STATE OF CALIFORNIA } COUNTY OF ORANGE } ss. CITY OF NEWPORT BEACH If I, Leilani I. Brown, City Clerk of the City of Newport Beach, California, do hereby certify that the whole number of members of the City Council is seven; the foregoing resolution, being Resolution No. 2023-83 was duly introduced before and adopted by the City Council of said City at a regular meeting of said Council held on the 281h day of November, 2023; and the same was so passed and adopted by the following vote, to wit: AYES: Mayor Pro Tem Will O'Neill, Councilmember Brad Avery, Councilmember Robyn Grant, Councilmember Lauren Kleiman, Councilmember Joe Stapleton, Councilmember Erik Weigand NAYS: None RECUSED: Mayor Noah Blom IN WITNESS WHEREOF, I have hereunto subscribed my name and affixed the official seal of said City this 29th day of November, 2023. wi&vl4, �9� Leilani I. rown City Clerk Newport Beach, California City of Newport Beach 24104 Attachment E November 28, 2023, City Council Staff Report 24-105 POCITY OF NEWPORT BEACH <FORN,P City Council Staff Report November 28, 2023 Agenda Item No. 18 'L0If el:fAlQaaJy1:\'[ ] T_1►1�71•L��13 �Y�7; �:1��1>I>r�L�Z�1�1►L�il� FROM: Seimone Jurjis, Assistant City Manager/Community Development Director - 949-644-3232, sjurjis@newportbeachca.gov PREPARED BY: Jaime Murillo, Planning Manager, jmurillo@newportbeachca.gov 949-644-3209 TITLE: Ordinance No. 2023-23 and Resolution No. 2023-83: Newport Beach Municipal Code and Local Coastal Program Amendments Related to Short Term Lodging (PA2023-0116) ABSTRACT: For the City Council's consideration are amendments to Chapter 5.95 (Short Term Lodging Permit), Title 20 (Planning and Zoning) and Title 21 (Local Coastal Program Implementation Plan) of the Newport Beach Municipal Code (NBMC) related to short term lodging that include the following: • Establishing regulations permitting short term lodging within the MU-W2 (Mixed -Use Water) and MU-CV/15th Street (Mixed -Use Cannery Village and 15th Street) zoning districts; • Changing the maximum cap of short term lodging permits from 1,550 permits citywide to: 1) 1,475 permits in residential districts; and 2) 75 permits within the MU-W2 and MU-CV/15th Street zoning districts; • Correcting an inconsistency in the definition and use of short term lodging and bed and breakfast inn to mean a rental of 30 days or less; and • Revisions related to violations, suspensions, revocations, and permit closures. RECOMMENDATIONS: a) Conduct a public hearing; b) Find proposed amendments to the NBMC are not subject to the California Environmental Quality Act (CEQA) pursuant to Section 15060(c)(2) and 15061(b)(3) of the CEQA Guidelines, because it would not result in a direct or reasonably foreseeable indirect physical change in the environment and is covered by the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment; c) Waive full reading, direct the City Clerk to read by title only, introduce Ordinance No. 2023-23, An Ordinance of the City Council of the City of Newport Beach, California, Approving a Code Amendment to Chapter 5.95 (Short Term Lodging) and Title 20 (Planning and Zoning) of the Newport Beach Municipal Code Related to Short Term Lodging (P. 2023-01 )NewpUl d pass to second reading on December 12, 2023; - and VT l F 24-106 1$_1- Ordinance No. 2023-23 and Resolution No. 2023-83: Newport Beach Municipal Code and Local Coastal Program Amendments Related to Short Term Lodging November 28, 2023 Page 2 d) Adopt Resolution No. 2022-83, A Resolution of the City Council of the City of Newport Beach, California, Authorizing Submittal of a Local Coastal Program Amendment to the California Coastal Commission Amending Title 21 (Local Coastal Program Implementation Plan) of the Newport Beach Municipal Code Related to Short Term Lodging (PA2023-0116); or e) Adopt an alternative resolution that includes a 20-unit ownership requirement, Resolution No. 2022-83, A Resolution of the City Council of the City of Newport Beach, California, Authorizing Submittal of a Local Coastal Program Amendment to the California Coastal Commission Amending Title 21 (Local Coastal Program Implementation Plan) of the Newport Beach Municipal Code Related to Short Term Lodging (PA2023-0116). DISCUSSION: On May 23, 2023, the City Council initiated amendments and directed the Planning Commission to identify opportunities to modify Titles 20 and 21 of the Newport Beach Municipal Code to facilitate new visitor -serving accommodation opportunities within the MU-W2 (Mixed -Use Water) and MU-CV/15t" Street (Mixed -Use Cannery Village and 15tn Street) zoning districts. The direction also included several considerations: 1) applicability to multi -unit residential developments with 20 or more residential units under common ownership, 2) requirement for professional management, 3) requirement for project amenities, and 4) where there are no parking impacts that could reduce the availability of parking in residential neighborhoods. On June 22, 2023, the Planning Commission discussed the potential to amend the Municipal Code to facilitate new visitor -serving accommodations in the zones identified. It was discussed that the MU-W2 and MU-CV/151" Street zoning districts currently allow hotels, motels, and timeshares subject to a conditional use permit. Bed and breakfast operations are allowed in the MU-CV/15th Street zone with a conditional use permit, but they are not permitted in the MU-W2 zone. Short term rentals are not allowed in any mixed -use zones currently. The Planning Commission directed staff to return at a future date with a report and recommendations focused on the matter (Attachment C - meeting minutes). On October 19, 2023, the Planning Commission held a public hearing and reviewed the proposed amendments to allow short term rentals in specified mixed -use zones. Some Planning Commissioners were not supportive of a proposed permit criterion requiring a permit holder to own 20 or more eligible properties. The Planning Commission ultimately recommended approval of the proposed amendments with the removal of the ownership requirements. The Planning Commission resolutions are included as Attachments D and E and the meeting minutes are included as Attachment F. E Ar � -� 'I/ 1 I N "W P L ��t Bed 24_, o- Ordinance No. 2023-23 and Resolution No. 2023-83: Newport Beach Municipal Code and Local Coastal Program Amendments Related to Short Term Lodging November 28, 2023 Page 3 The proposed amendments to Title 20 and Title 21 of the NBMC would reinstate short term lodging as an allowable use within the MU-W2 and MU-CV/15t" Street zoning districts (Attachment G), subject to existing short term lodging regulations and additional eligibility criteria identified by the City Council from the May 23, 2023, meeting. Redline strikeouts illustrating the revised code provisions are included as Attachment H. Changes to Maximum Cap The existing maximum cap of short term lodging permits in the city is 1,550 permits. The amendment would not increase the total number of permits, but it would allow up to 75 permits in the MU-W2 and MU-CV/15th Street zoning districts and 1,475 permits in residential districts. This would maintain the total allowance for this type of visitor accommodations in the city without altering existing regulations on short term lodging previously adopted that protect residential neighborhoods. In fact, lowering the number of short term lodging permits in residential neighborhoods would enhance protection of residential neighborhoods. Changes to Waiting List There are currently 546 applicants on the citywide waiting list. With the proposed change to create two separate maximum caps, each maximum cap would maintain a separate waiting list. By creating separate waiting lists, transitioning of the 75 short term lodging permits to the allowed mixed -use zones can occur in the near -term while the permits in the residential zones will reduce to the new 1,475 residential cap through attrition. Eligibility To be eligible for a new short-term lodging permit in the MU-W2 and MU-CV/15th Street zoning districts the proposed amendment would require an applicant to: 1. Employ professional management to ensure code requirements are met and to increase accountability. 2. Create a management plan that ensures, among other things, that on -site amenities are provided to guests, and no parking impacts are created in surrounding residential zones. 3. [Criterion Recommended for Removal by Planning Commission] Pursuant to City Council direction from the May 23, 2023, meeting, the initial draft presented to the Planning Commission included an eligibility requirement that a permit holder would be required to own 20 or more units within the same Statistical Area (Attachment 1) located in the MU-W2 and/or MU-CV/15th St. zoning districts. Common ownership was defined as the same person, entity or managing partner holding legal and/or equitable title to no less than 50% of each property or entity. t '*m NN k/ i I4t mpurt Bett 24-108 144- Ordinance No. 2023-23 and Resolution No. 2023-83: Newport Beach Municipal Code and Local Coastal Program Amendments Related to Short Term Lodging November 28, 2023 Page 4 This location requirement and minimum ownership threshold was intended help with accountability and enforcement by ensuring that the City can have a stronger working relationship with fewer operators. Ultimately, the Planning Commission recommended removing this requirement for equity purposes and to provide all property owners in the mixed -use zones an opportunity for a permit. For reference, a redline strikeout draft of the NBMC Section 21.48.115 that includes this 20-unit ownership is included as Attachment J. Should the City Council choose to incorporate the 20-unit ownership requirements into the amendment, an alternative draft resolution has been provided as Attachment K that includes the associated changes. Definition Update Pursuant to NBMC Chapter 3.16 (Uniform Transient Occupancy Tax), a tax is required to be paid for the privilege of occupying certain visitor accommodations, including short term lodging units. The term "transient" means any individual who exercises occupancy or is entitled to occupancy by reason of concession, permit, right of access, license or other agreement for a period of 30 consecutive calendar days or less. The term short term and short term lodging as used in Chapter 5.95 and in Title 20 and Title 21 of the NBMC define short term as a lodging unit that is rented or leased as a single housekeeping unit for a period of less than 30 consecutive calendar days. To correct this inconsistency throughout the NBMC, the durations within references to short term or short term lodging are proposed to mean "a period of 30 consecutive calendar days or less." The duration within the definition of bed and breakfast inn is also proposed to be updated for consistency. Updates to Violations, Suspensions, Revocations and Permit Closures Due to the current maximum cap of short term lodging permits, the City has found that several permit holders are holding onto their permits, but not actually conducting short term lodging activities or paying transient occupancy taxes. While NBMC Section 5.95.080 (License and Permit Closure) authorizes the City to close any permit that has no short term lodging activity for a period of two consecutive annual reporting periods, an owner may reapply for reinstatement of the short term lodging permit an unlimited number of times. Therefore, to encourage permit holders to use their short term lodging privileges and to help those property owners on the waiting list obtain a short term lodging permit sooner, the amendment proposes a one-time allowance to reinstate a permit that has been closed for nonuse. Other minor clean-up and procedural updates are proposed throughout NBMC Chapter 5.95 primarily intended to eliminate ambiguities within the Code related to violations, suspensions, revocations and permit closures. E Ar � -� V I I N "Vv P o rt Bea t 24 09 8: 4- Ordinance No. 2023-23 and Resolution No. 2023-83: Newport Beach Municipal Code and Local Coastal Program Amendments Related to Short Term Lodging November 28, 2023 Page 5 History of Short Term Lodging in Mixed -Use Zones Short term lodging (STL) is a dwelling unit that is rented or leased for a period of 30 days or less (as proposed to be amended). The City initially regulated short term lodging by establishing NBMC Chapter 5.95 in 1992, which includes permitting requirements, standard operating conditions, and penalties. At that time, the short term rental of residential units was allowed in all zoning districts. As they proliferated over the years, Chapter 5.95 was amended in 2004 to prohibit the establishment of short term lodging in single-family zones. In 2010, the City's Planning and Zoning Code (Title 20) was comprehensively updated. As part of this update, short term lodging was added to the allowable uses table (Table 2-1) for residential zones and to reinforce the prohibition of STLs in the single-family zones and allowance in the two-family and multi -family zones. A reference to Chapter 5.95 for implementation was also added. Short term lodging was inadvertently not listed in the allowable uses table for mixed -use zones (Tables 2-8 and 2-9). Pursuant to NBMC Section 20.12.020(E)(1), uses not listed in a zoning district (e.g. mixed -use zones) but which are listed in another zoning district (e.g. residential zones) are considered prohibited. In 2017, the California Coastal Commission certified the City's Local Coastal Program Implementation Plan (Title 21), which incorporated similar allowable uses tables as Title 20 and thereby incorporating the same prohibition of STLs in mixed -use zoning districts. The proposed code revisions implement the City Council's direction and correct the inadvertent omission from 2010 that excluded short-term rentals from mixed -use areas. Affected Locations The MU-W2 zoning district primarily encompasses Lido Village and McFadden Square, but it also covers the Cannery Village waterfront and mixed -use commercial areas on Balboa Island (Agate and Marine Avenues), and a single property located at 2890 Bay Shore Drive. The MU-CV/15th Street zoning district encompasses the Cannery Village area and the mixed -use areas along the west side of 15th Street on the Balboa Peninsula. These two zoning districts are entirely within the coastal zone area of the city. See Attachment G for map of affected zoning districts. Current Status of Short Term Lodaina Permits in Mixed -Uses Zones Given that STLs were previously allowed in mixed -use zones prior to 2010, there is a current total of 24 nonconforming STL permits that remain active throughout the various mixed -use zoning districts. Of those 24 permits, 20 permits are located within the subject MU-W2 and MU-CV/15th Street zones and would remain legal nonconforming unless the proposed eligibility criteria are satisfied. The remaining four permits are located within MU-V zoning district, and they too would remain legal nonconforming. As proposed, all 24 legal nonconforming short term lodging permits would not count against the 75-permit limit for the MU-W2 and MU-CV/15th Street zoning districts. 24-110 Ordinance No. 2023-23 and Resolution No. 2023-83: Newport Beach Municipal Code and Local Coastal Program Amendments Related to Short Term Lodging November 28, 2023 Page 6 Appropriateness of STLs in Mixed -Use Zones A common complaint from residents regarding short term lodging is that it often results in the commercialization of residential neighborhoods, and it can create land use conflicts between established residents and STL users. Residents experience increased exposure to noise, trash and parking impacts. However, mixed -use zones offer an ideal location for short-term rentals because these zones apply to predominately mixed -use properties with general commercial and visitor -serving commercial, and residential dwelling units on the upper floors. Additionally, mixed -use zones are generally located in areas that do not impact or burden residential neighborhoods and the two zones that would be affected are located proximate to the beach and harbor, which are destinations for visitors. The attached revisions were carefully drafted to allow a very limited number of short-term rentals in the two mixed use areas, MU-W2 and MU-CV/15t" Street. The added requirements that will accompany each short-term rental permit issued in a mixed -use area will ensure that residential neighborhoods and the community as a whole benefit from, and are not impacted by, the issuance of the new short-term rental permits. General Plan Consistency The proposed amendments would serve to implement the following goals and policies of the General Plan: Land Use Element Policy LU 2.6 (Visitor Serving Uses) states, "Provide uses that serve visitors to Newport Beach's ocean, harbor, open spaces, and other recreational assets, while integrating them to protect neighborhoods and residents." The amendment would allow short term lodging within the MU-W2 and MU-CV/15th St. zoning districts, subject to specific regulations that would subject the operation of short-term lodging to a permit issued by the City. In addition, the unit(s) must be managed by professional management, and the short-term lodging must not impact parking in the neighborhood. The amendment would also maintain the existing citywide maximum cap of 1,550 permits by establishing a maximum cap of 1,475 permits within residential coastal zoning districts and a maximum cap of 75 permits within the MU-W2 and MU-CV/15th St. coastal zoning districts. This would maintain the existing allowance for this type of visitor accommodations in the city without altering existing provisions and regulations on short term lodging previously adopted to protect residential neighborhoods. Land Use Element Goal LU 4, which states, "Management of growth and change to protect and enhance the livability of neighborhoods and achieve distinct and economically vital business and employment districts, which are correlated with supporting infrastructure and public services and sustain Newport Beach's natural setting." In specific mixed -use zones, larger scale (20 or more units) would be permitted to operate. This provides additional opportunities for properties in the mixed -use zones to achieve and maintain economic viability and avoids new impacts on residential neighborhoods. � V 1 IN "VV P U 1_t Be Ard 24-111 r8-6- Ordinance No. 2023-23 and Resolution No. 2023-83: Newport Beach Municipal Code and Local Coastal Program Amendments Related to Short Term Lodging November 28, 2023 Page 7 Local Coastal Program Consistency The proposed Title 21 amendment serves to implement Coastal Land Use Plan (CLUP) Table 2.1.1-1 (Land Use Plan Categories) of the LCP, which establishes the type, density and intensity of land uses within the coastal zone. The amendment would allow the operation of short-term lodging within existing dwelling units in certain mixed -use coastal zoning districts. This is consistent with allowing visitor -serving accommodations in the mixed -use zones while maintaining the adopted regulations to protect residential zones. CLUP Policy 2.3.3-6 authorizes the short-term rental of dwelling units as a means of providing lower -cost overnight visitor accommodations. To allow for the small expansion of short term lodging in the more appropriate mixed use coastal zoning districts, but maintain and protect existing maximum cap of 1,550 permits, this amendment establishes two separate caps: 1) a maximum cap of 1,475 permit with residential coastal zoning districts; and, 2) a maximum cap of 75 permit within the MU-W2 and MU-CV/15th Street coastal zoning districts. Local Coastal Plan Amendment Process Any amendment to the LCP, including Title 21, must be reviewed and approved by the City Council, with a recommendation from the Planning Commission, prior to submitting the amendment request to the California Coastal Commission (Coastal Commission). The Coastal Commission is the final decision -making authority on amendments to the certified LCP; however, the City retains the ability to reject an LCP amendment in its entirety if the Coastal Commission includes suggested modifications. Upon approval of the proposed LCP Amendment by the Coastal Commission, staff will return to the City Council with an ordinance adopting the Title 21 amendment. FISCAL IMPACT: There is no fiscal impact related to this item. ENVIRONMENTAL REVIEW: This action is not subject to the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly. it cif Newport Bear 24-112 1-8-7- Ordinance No. 2023-23 and Resolution No. 2023-83: Newport Beach Municipal Code and Local Coastal Program Amendments Related to Short Term Lodging November 28, 2023 Page 8 NOTICING: Pursuant to Section 13515 of the California Code of Regulations, a review draft of the LCP Amendment was made available, and a Notice of Availability was distributed on October 13, 2023, to all persons and agencies on the Notice of Availability mailing list. In addition, notice of this amendment was published in the Daily Pilot as an eighth -page advertisement, consistent with the provisions of the Municipal Code and State law. The item also appeared on the agenda for this meeting, which was posted at City Hall and on the City website. ATTACHMENTS: Attachment A — Ordinance No. 2023-23 Attachment B — Resolution No. 2023-83 Attachment C — June 22,2023 Planning Commission Minutes Attachment D — Planning Commission Resolution No. PC2023-037 Attachment E — Planning Commission Resolution No. PC2023-038 Attachment F — October 19, 2023 Planning Commission Minutes Attachment G — MU-W2 and MU-CV/15t" Street Zoning Districts Map Attachment H — Redline Strikeouts of Proposed Amendments Attachment I — Statistical Area Map Attachment J — Redline Strikeout of Draft Section 21.48.115 Incorporating 20-unit Ownership Requirement Attachment K — Alternative Draft Resolution: LCP Amendment Incorporating 20-unit Ownership Requirement City of Newport Beach24-113 99_ Attachment F MU-W2 and MU-CV/15t" Street Zoning Districts Map 24-114 s OSPITAL Rp - ♦♦ , MU-W2 and MU-CV/15th Street Zoning wpm.,Zr4 LIDO PENINSULA �IUU BAY IJL/ ST Aw, ft � ISLE ISLAND -j-a% - _� ak ��� co �.` co 0.1 02 N E W PORT BEACH Miles E IIIIIIIIIII� BALBOA C yA lV /IEL l_VIbIISOilf�511��1u11E�PiF]G<]f]'ll(.L^1 �{.T. 24-115 Attachment G Coastal Commission Approval Letter and Suggested Modifications 24-116 May 28, 2025 City of Newport Beach City Council Newport Beach Civic Center 100 Civic Center Drive Newport Beach, CA 92660 Re: City of Newport Beach Local Coastal Program (LCP) Amendment Request No. LCP-5-NPB-24-0004-1, Parts A, B, and C Dear Councilpersons: You are hereby notified that, at its May 7, 2025 meeting in Half Moon Bay, the Coastal Commission approved with suggested modifications Parts A, B, and C of Implementation Plan (IP) Amendment Request No. LCP-5-NPB-24-0004-1. Part A of the subject request was submitted for Commission certification by City Council Resolution No. 2023-83 on February 8, 2024 and pertains to short-term rentals. Part B of the subject request was submitted for Commission certification by City Council Resolution No. 2023-71 on February 8, 2024 and pertains to the Newport Beach Country Club. Part C of the subject request was submitted for Commission certification by City Council Resolution No. 2023-76 and consisted of a general IP clean-up. Pursuant to the Commission's action on May 7, 2025, certification of Parts A, B, and C of the subject amendment request are subject to the attached suggested modifications (Attachment 1). Therefore, all three parts of IP Amendment No. LCP-5-NPB-24-0004-1 will not be effective for implementation in the City's coastal zone until: 1) The City Council adopts the Commission's suggested modifications, 2) The City Council forwards the adopted suggested modifications to the Commission by resolution, and 3) The Executive Director certifies that the City has complied with the Commission's May 7, 2025 action. The Coastal Act requires that the City's adoption of the suggested modifications be completed within six months of the Commission's action (i.e. by November 3, 2025). Thank you for your cooperation and we look forward to working with you and your staff in the future. Please contact Chloe Seifert at chloe.seifert(a)_coastal.ca.gov with questions regarding the modifications required for effective certification of Parts A, B, and C of IP Amendment No. LCP-5-NPB-24-0004-1. Sincerely, Chloe Seifert Coastal Program Analyst 24-117 Attachment 1—Suggested Modifications The City's proposed new text is shown in underlined text. The City's proposed deleted text is shown in�le striket"Trnvugh. The Commission's proposed new text is shown in bold underline. The Commission's proposed deleted text is shown in held strike through A. PART A (STRS IN MIXED -USE ZONES) Suggested Modification 1: Preserve the overall 1,550-permit cap on STRs throughout the coastal zone. 21.48.115 Short --Term Lodging. ...C. Permits within Mixed -Use Water Zoning District (MU-W2) and Mixed -Use Cannery Village and 15th Street Zoning District (MU-CV/15th St.). ...3. As set forth in Section 5.95.042 of Chapter 5.95, the maximum number of short term lodging permits shall be limited to a total of seventy-five (75) permits within the Mixed -Use Water (MU-W2) and Mixed -Use Cannery Village and 15th Street (MUCV/ 15th St.) districts at any time. No new permit shall be issued to any person on the waiting list, as described in Section 5.95.042(F), until the total number of permits is less than seventy-five (75). Notwithstandincv the oreneinn the seventy-five (75) w.rnit rv»virnurn shall net apply to a short term lodqanq unat that was leqally established as of November 2-, ---- a let wmthin a Mixed- Ice Coastal Zoninn District Provided the owner maintains a valad short term lodqanq Permit that ms not subse revoked or abandoned-. ...D. Permits in the Coastal Zone. At no point shall the total number of short- term lodging permits in the City's coastal zone exceed one -thousand five - hundred and fifty (1,550). Suggested Modification 2: Re -alphabetize the three subsections ("Operational Standards", "Additional Requirements for Newport Island...", and "Additional Requirements for the Mixed -Use..." following the new Subsection D of IP Section 21.48.115 to reflect the corrected alphabetical order. Suggested Modification 3: Specify unclear language and protect public parking used for coastal access. 21.48.115 Short --Term Lodging. ...-FG. Additional Requirements for the Mixed -Use Water Zoning District (MU- W2) and Mixed -Use Cannery Village and 15th Street Zoning District (MU- CV/15th St. 24-118 1. Prior to issuance of a short term lodging permit, a management plan shall be submitted for review and approval by the Community Development Director. The manaaement plan shall include the followin ...e. Parking management plan ensuring all available on -site parking remain free of obstructions and available for use by the short term lodging user. For short term lodging units that are non- conforming due to number of parking spaces provided, there shall be sufficient data to indicate that parking demand will be'e�R the required satisfied by the provided number of spaces or that ether parkiniv is alternate modes of transportation are available (e.g., COW parkiinn lot located „rearhvi on -street narking �, vrr-zcra, c�purrcrrrc� aa-ble; bicycles and e-bikes, bus and trolley routes, rideshare services, private offsite parking lots, greater than normal walk in trade, alternative transportation, etc.) such that use or operation of the short term lodging permit will not rely on the City's stock of public on -street and off-street parking or reduce availability of parking in nearby residential neighborhoods. B. PART B (1602 E. COAST HWY.) Suggested Modification 4: Protect public views from an LUP-designated coastal view road. Section 21.26.055, Planned Community Coastal Zoning District Development Standards. ...S. Newport Beach Country Club (PC-47). ...3. Residential. ...b. Attached Residential (Condominiums) ...iii. Height: forty-six (46) feet (to be located atop of the 2-story hotel buildings in a manner that does not obstruct blue -water coastal views from LUP- designated coastal view roads. C. PART C (IP CLEAN-UP) Suggested Modification 5: Reject the City's proposed new exemption criteria. 21.52.035.C. Coastal Act Exemptions. Developments not located within the Coastal Commission's permit jurisdiction determined to be exempt from the coastal development permit requirements pursuant to California Public Resources Code Section 30610. The following 24-119 types of projects shall be so exempted unless they involve a risk of adverse environmental effects: Suggested Modification 6: Retain certified IP language as previously amended. Table 21.18-4, Development Standards for Multi -Unit Residential Zoning Districts. ...(7) Density bonuses may be granted for the development of housing that is affordable to lower-, low-, and rnoderate-incorne households and senio citizens in corpliance with Governrnent Cal Gov Code Sections 65915 through 65917. Any housing developrnent approved pursuan Governrnent Cal rove Corte Section 65915 shall be consistent to the resources, with all otherwise applicable Local Coastal Program policies and development standards in compliance with Chapter 21.32 (Density Bonus). Table 21.22-3, Development Standards for Vertical and Horizontal Mixed -Use Zoning Districts. ...(6) Density bonuses may be granted for the development of housing that is affordable to lower-, low-, moderate-incomee� households and s� citizens On compliance with Government Cal. Gov. Code Sections 65915 through Any housingdevelopment improve I . 4 consistent,Government Cal. Gov. Code Sectaon 65915 shall be to the mavirr.,�rrntand in manner most protective of coastal rrr�crrrrpTrrfeasible,manner protec ive of coastal f resourceswath all otherwise applicable Local Coastal Program policies aniJ .t^„e. . cent staniJarrls in compliance with Chapter 21.32 (Density Bonus). Table 21.22-4, Development Standards for Waterfront Mixed -Use Zoning Districts. ...(7) Density bonuses may be granted for the development of housing that is affordable to lower-, low-, and moderate -income households and senio citizens in compliance with Government Cal Gov Code Sections 65915 through 65917.AAny housing development approvpursuaan��e Government Cal rove Corte Section 65915 shall be consistent to the extent feasn' a rnanner most protective of coastal resources, with all otherwise applicable Local Coastal Program policies and development standards in compliance with Chapter 21.32 (Density Bonus). 24-120 21.48.200 Accessory Dwelling Units. A. Purpose. The purpose of this section is to establish the procedures for the creation of accessory dwelling units and junior accessory dwelling units, as defined in Part 7 (Definitions) of this title and in Galifnrnia Government Cal. Gov. Code Sections 65852.2 and 65852.2 66310 through 66342, or any successor statute, in areas designated for residential use, including as part of a planned community development plan or specific plan, and to provide development standards to ensure the orderly development of these units in appropriate areas of the City. ...B. Effects of Conforming.... ...4. Required to correct a legally established nonconforming zoning conditions, building code violations, or unpermitted structures that do not present a threat to public health and safety and are not affected by the construction of the accessory dwelling unit or junior accessory dwelling unit. This does not prevent the City from enforcing compliance with applicable building standards in accordance with S,afifer Cal. Health -a -Rd & Safety_ Code Section 17980.12. ...JK. Historic Resources. Accessory dwelling units and/or junior accessory dwelling units proposed on residential or mixed -use properties that are determined to be historic shall be approved ministerially, in conformance with California Government Cal. Gov. Code Sections 65852.2 and 65852.22 66310 through 66342. However, any accessory dwelling unit or junior accessory dwelling unit that is listed on the California Register of Historic Resources shall meet all Secretary of the Interior standards, as applicable. 21.70.020 Definitions of Specialized Terms and Phrases. "Density bonus" means, as .definer! by Government Cal Gov. Code Sectoon 65915 et se , -eager the maV,m ,rn densky-othe.M.A.1im allowed by housing project who agrees to construct a prescribed percentage o dwelling units that are affordable to very low- and low-income househo See "Very low-income household" "L I household-.-' a density increase over the maximum allowable density under the applicable coastal zoning district and Coastal Land Use Plan as of the date of application. 24-121 Attachment H Underline/Strut Version of Amendments 24-122 PROPOSED CODE AND LOCAL COSTAL PLAN AMENDMENTS (PA2023-0116) Chapter 5.95 Revisions (Redline Strikeouts) Section 11: Section 5.95.042 (Maximum Number of Permits) of the Newport Beach Municipal Code is hereby amended to read as follows: 5.95.042 Maximum Number of Permits. A. F=XGE?pt as provided OR s b68GtieR (B , + The maximum number of short term lodging permits in a residential district shall be limited to one thousand four hundred seventy-five (1,475) permits at any time. If there are more than one thousand four hundred seventy- five (1,475) valid permits in residential districts as of the effective date of Ordinance No. 2025-_, an owner shall be permitted to renew, reinstate, or transfer a valid permit in accordance with the provisions of this chapter; however, no new permit shall be issued to any person on the waiting list, as described in subsection (G) of this section, until the total number of residential district permits does not exceed one thousand four hundred seventy-five (1,475). To avoid wholesale conversion of existing and new housing complexes into short term lodgings within the residential district, multi -unit developments with five (5) or more units may permit a maximum of twenty (20) percent of the total number of units to be short term lodgings (rounded down to the nearest whole number). B. The maximum number of short term lodging permits in the multi -use area shall be limited to seventy-five (75) permits. No new permit shall be issued to any person on the waiting list, as described in subsection (G) of this section, until the total number of multi- use area permits is less than seventy-five (75). ",tit" ding the feregOiRg, - - - - -- - - C. The total number of short-term lodging permits in the City shall not exceed one - thousand five -hundred and fiftv (1.550). SD. For purposes of calculating the maximum number of short term lodging permits available as provided in subsection (A), er (B) or C of this section, a permit shall be deemed valid and unavailable unless abandoned in accordance with Sections 5.95.030(B) through (F), and/or Section 5.95.043(B) or, if the short term lodging permit has been revoked and the time has run to seek administrative or judicial review of the decision. OE. An owner who has a short term lodging permit, or an owner seeking to reinstate a short term lodging permit that has not been abandoned in accordance with Sections 5.95.030(B) through (F), shall have priority to renew or reinstate the permit over anyone on the waiting list, as described in subsection (GF-) of this section. 24-123 F. An owner seeking to transfer a valid short term lodging permit that files an application within the time frames set forth in Section 5.95.043(A) shall have priority to transfer the permit over anyone on the waiting list, as described in subsection (G) of this section. G. If the City has issued the maximum number of permits available, the City shall maintain a separate waiting list for both the residential districts and the multi -use areas. An application for placement on the waiting list shall be submitted to the Finance Director, on a form approved by the Finance Director, and shall be accompanied by a fee established by resolution of the City Council. In the event a short term lodging permit becomes available, the Finance Director shall notify the person or persons next in order on the waiting list as provided for in Section 1.08.080. The notice shall specify that applications will be accepted for ten (10) days after the date of the notice, and that failure to apply within the ten (10) day period shall result in removal of the person or persons receiving notice from the waiting list. The Finance Director may extend the deadline to apply if the Finance Director determines that good cause has been shown to extend the deadline. Notice shall be deemed given when deposited in the United States mail, with the first-class postage prepaid, and addressed as specific by the person or persons on the waiting list. The City shall not be liable for a failure to notify any person or persons on the waiting list since placement on the list does not create any property right in any person or persons on the list nor any contractual obligation on the part of the City. Title 21 Revisions (Redline Strikeouts) and CCC Suggested Mods Section 1: Rows entitled "Visitor Accommodations, Residential" and "Short Term Lodging" are hereby added to the "Residential Uses" section of Table 21.22-1 (Allowed Uses) of Section 21.22.020(C) of the Newport Beach Municipal Code to read as follows: 21.22.020Mixed-Use Coastal Zoning Districts Land Uses and Permit Requirements. Mixed -Use Zoning Districts TABLE 21.22-1 ALLOWED USES A Allowed — Not Allowed Land Use See Part 7 of this Implementation Plan for MU-V (6) MU-MM (4) MU-CV/15th St. Specific Use land use definitions. (5)(6) Regulations See Chapter 21.12 for unlisted uses. Residential Uses Single -Unit Dwellings 24-124 TABLE 21.22-1 ALLOWED USES Mixed -Use Zoning Districts A — Allowed Not Allowed Land Use See Part 7 of this Implementation Plan for land use definitions. See Chapter 21.12 for unlisted uses. MU-V (6) MU-MM (4) MU-CV/15th St. (5)(6) Specific Use Regulations Located on 1st floor — — A (3) Located above 1st floor A (1) — A (3) Multi -Unit Dwellings Located on 1st floor — A (1)(2) A (3) Located above 1st floor A (1) A (1)(2) A (3) Two -Unit Dwellings Located on 1st floor — — A (3) Located above 1st floor A (1) — A (3) Home Occupations A A (1) A Live -Work Units A A (1)(2) A (3) Accessory Dwelling Units and Junior Accessory Dwelling Units A A A Section 21.48.200 Visitor Accommodations, Residential Short Term Lodging A Chapter 5.95 and Section 21.48.115 Section 2: Rows entitled "Visitor Accommodations, Residential" and "Short Term Lodging" are hereby added to the "Residential Uses" section of Table 21.22-2 (Allowed Uses) of Section 21.22.020(C) of the Newport Beach Municipal Code to read as follows - Mixed -Use Coastal Zoning Districts TABLE 21.22-2 ALLOWED USES Allowed Not Allowed Land Use See Part 7 of this Implementation Plan for land use MU-W1 (3) MU-W2 (5) Specific Use definitions. Regulations See Chapter 21.12 for unlisted uses. Residential Uses Single -Unit Dwellings Located on 1st floor Located above 1 st floor A (1) A (2) 24-125 TABLE 21.22-2 ALLOWED USES Mixed -Use Coastal Zoning Districts Allowed Not Allowed Land Use See Part 7 of this Implementation Plan for land use definitions. See Chapter 21.12 for unlisted uses. MU-W1 (3) MU-W2 (5) Specific Use Regulations Multi -Unit Dwellings Located on 1st floor Located above 1st floor A (1) A (2) Two -Unit Dwellings Located on 1st floor Located above 1 st floor A (1) A (2) Home Occupations A A (2) Accessory Dwelling Units and Junior Accessory Dwelling Units A A Section 21.48.200 Visitor Accommodations, Residential Short Term Lodging _ A_ Chapter 5.95 and Section 21.48.115 Section 3: The title and content of Section 21.48.115 (Short -Term Lodging) of the Newport Beach Municipal Code are hereby amended to read as follows: 21.48.115 Short - Term Lodging. A. Purpose. This section provides standards for the operation of short-term lodging units to prevent overburdening City services and adverse impacts on residential neighborhoods, multi -use areas, and on coastal access and resources. B. Permits within a Residential District. 1. No owner of a short term lodging unit shall advertise for rent, or rent a lodging unit located within a residential district for a short term, without a valid short term lodging permit for that unit, issued pursuant to Chapter 5.95. 2. An owner shall be permitted to renew, reinstate, or transfer a valid permit in accordance with the provisions of Chapter 5.95. 3. As set forth in Section 5.95.042 of Chapter 5.95, the maximum number of short term lodging permits shall be limited to oae thousand five h„Rdred fifty (1,55 )) one thousand four hundred seventy- five (1,475) permits within a residential district at any time. If there are more than one +c thousand fide hundred fifty (I one thousand four hundred seventy- five (1,475) valid permits that have been issued within a residential district as of the effective date of Ordinance No. 2023- januaFy 13, 2022, no new permit shall be issued to any person eee on the waiting list, as described in Section 24-126 5.95.042(9G), until the total number of permits does not exceed the one th 'd five yddrre.d fifty (1,5W one thousand four hundred seventy-five (11475) limit. To avoid wholesale conversion of existing and new housing complexes into short term lodgings, multi -unit developments within a residential district with five (5) or more units may permit a maximum of twenty (20) percent of the total number of units to be short term lodgings (rounded down to the nearest whole number). 4. No short term lodging unit shall be permitted on any lot in the R-1 (Single -Unit Residential) Coastal Zoning District or any lot designated for single -unit dwelling land use as part of a planned community development plan, unless the short term lodging unit was legally established on or before June 1, 2004. C. Permits within Mixed -Use Water Zoning District (MU-W2) and Mixed -Use Canne Village and 15th Street Zoning District (MU-CV/15th St.). 1. No owner of a short term lodginq unit shall advertise for rent, or rent a lodging unit located within the Mixed -Use Water (MU-W2) or Mixed -Use Cannery Village and 15th Street (MU-CV/15th St.) zoning districts for a short term, without a valid short term lodaina aermit for that unit. issued pursuant to Chaoter 5.95. 2. An owner shall be permitted to renew, reinstate, or transfer a valid permit in accordance with the provisions of Chapter 5.95. 3. As set forth in Section 5.95.042 of Chapter 5.95, the maximum number of short term lodging permits shall be limited to a total of seventy-five(75) permits within the Mixed -Use Water (MU-W2) and Mixed -Use Cannery Village and 15th Street (MU- CV/15th St.) districts at any time. No new permit shall be issued to any person on the waiting list, as described in Section 5.95.042(G), until the total number of permits is less than seventy-five (75). Netwothstandmnq the ' Permit maximum shall not apply to a short form le dgmno unit that was leoally eat lash as f November 25 2010, on a lot within a Moxed- Ice Coastal on Zen- istroGt prev 0ir�derd,the OWRer maintaiRs a valid short term leid`vinry permit that is not s-Wase'l— 41 Y . _,,eked er abandoned.. 4. Only a property owner that owns twenty (20) or more units under common ownership within the same Statistical Area as defined by the Land Use Element of the General Plan shall be eligible to obtain a short-term lodging permit(s) in the MU- W2 and/or MU-CV/15th St. districts. The eligible units may be located upon one (1) or more separate parcels or properties provided they cumulatively add up to twenty (20) or more units, and all units are located within the MU-W2 and/or MU-CV/15th St. districts. Common ownership means the same person, entity or managing partner holds legal and/or equitable title to no less than fifty percent (50%) of each property or entity. D. Permits in the Coastal Zone. At no point shall the total number of short- term lodging permits in the City's coastal zone exceed one -thousand five -hundred and fifty (1,550). 24-127 EDG. Operational Standards. The owner, or any other person(s) or entity(ies) that hold(s) legal and/or equitable title to the lodging unit, shall comply with all F-federal, State, and local laws, rules, regulations and conditions of approval including, but not limited to, all short term lodging permit conditions, as set forth in Chapter 5.95. In addition, the owner, or any other person(s) or entity(ies) that hold(s) legal and/or equitable title to the lodging unit, shall: 1. By written agreement, limit overnight occupancy of the short term lodging unit to the maximum permitted by the Building Code and Fire Code. 2. Use best efforts to ensure that the transient user, occupants and/or guests of the short term lodging unit do not create unreasonable noise or disturbances, engage in disorderly conduct, or violate provisions of this Code or any State or Federal law pertaining to noise, disorderly conduct, the consumption of alcohol, or the use of illegal drugs. 3. Upon notification that any transient user, occupant and/or guest of his or her short term lodging unit has created unreasonable noise or disturbances, engaged in disorderly conduct or committed violations of this Code or any State or Federal law pertaining to noise, disorderly conduct, the consumption of alcohol or the use of illegal drugs, promptly use best efforts to prevent a recurrence of such conduct by any transient user, occupant or guest. 4. Use best efforts to ensure compliance with applicable health and sanitation regulations relating to waste disposal. 5. Post a copy of any applicable permits and conditions in a conspicuous place within the unit. 6. Not rent, let, advertise for rent, or enter into an agreement for the rental of any lodging unit, for less than two (2) consecutive nights. 7. The City Manager shall have the authority to impose additional standard conditions, applicable to all short-term lodging units, as necessary to achieve the objectives of this section. FED. Additional Permit GenditiORs Requirements for Newport Island (Map A-16). To the extent there is any conflict between this subsection and other provisions of the Code related to short term rentals on Newport Island (Map A-16), this subsection shall govern and control. 1. In addition to the restriction set forth in Section 5.95.042 and subsection (B)(3) of this section, the maximum number of short term lodging permits issued for units located on Newport Island shall be limited to twenty (20) short term lodging permits at any one time. If there are more than twenty (20) valid short term lodging permits that have been issued as of January 13, 2022, an owner shall be permitted to renew, reinstate, or transfer a valid permit in accordance with the provisions of Chapter 5.95; however, no new permit shall be issued unless: (a) permits are available for issuance pursuant to Section 5.95.042 and subsection (B)(3) of this section; and (b) the total 24-128 number of permits for units located on Newport Island does not exceed twenty (20). If the City has issued the maximum number of permits available for units on Newport Island, the City shall maintain a waiting list and follow the same procedures as set forth in Section 5.95.042(DG). For purposes of this subsection, the maximum number of permits available will be calculated in the same manner as set forth in Chapter 5.95. 2. An owner, agent, or other person shall only be allowed to rent a dwelling unit on Newport Island for a short term if the dwelling unit is located on a lot with an owner - occupied dwelling unit that is managed by the owner of the owner -occupied dwelling unit. For purposes of this subsection, the term "owner -occupied" means the owner occupies and lives at the property and the property is used as the owner's primary residence no less than one hundred eighty-three (183) days of each year and provides at least two (2) of the following documentation: motor vehicle registration, driver's license, California State Identification card, voter registration, income tax return, property tax bill, or a utility bill. For purposes of this subsection, "managed by the owner" means that the owner is occupying and living at the property while it is being rented or a short term use. 3. The owner and/or agent shall limit the overnight occupancy of the short-term lodging unit on Newport Island to the lesser of: (a) the number of occupants that can be accommodated consistent with the on -site parking requirement set forth in subsection (F€D)(4) of this section, or (b) two (2) persons per bedroom plus two LQ additional persons, up to a maximum of ten (10) persons. Additional daytime guests are allowed between the hours of 7:00 a.m. and 10:00 p.m. with the maximum daytime occupancy limited to a number equal to maximum overnight occupancy plus six additional persons. The occupancy restrictions set forth in this subsection shall be set forth in a written rental agreement. 4. Each short term lodging unit on Newport Island shall provide a minimum of one parking space in an existing garage or carport. Occupancy shall be limited to a maximum of five overnight guests for a short term lodging unit providing only one parking space. The parking required by this subsection shall be free of obstructions and available for use by the short term lodging user. 5. Any existing Permit helder of a dwelling unit that is net lenated on an owner_ v eGGupi let persub sectienn (D)(2)--ef this �enc ien er does Rot meet the parmrtg 'ernents of subseGtien (D)(4) ef thus SeGtien will be permitted te retain their permit crrnrttF Ionia, 56. No owner, agent, or other person shall rent or let a short term lodging unit on Newport Island more than once in any seven -consecutive -day period. G. Additional Requirements for the Mixed -Use Water Zoning District (MU-W2) and Mixed -Use Cannery Village and 15th Street Zoning District (MU-CV/15th St.). To the extent there is any conflict between this subsection and other provisions of the Code related to short term lodging within the Mixed -Use Water (MU-W2) district or Mixed -Use Cannery Village and 15th Street (MU-CV/15th St.) district, this subsection shall govern and rnntrnl 24-129 1. Prior to issuance of a short term lodging permit, a management plan shall be submitted for review and approval by the Community Development Director. The management plan shall include the following: a. Acknowledgement and method of compliance with all operational standards identified in Subsection 21.48.115(ED) for all short term lodging units on the orooerty or properties: b. Identification of professional management responsible for administering the permit; c. Evidence of eligibility and compliance with ownership requirements of Subsection 21.48.115(C)(4) above: d. Demonstration that on -site amenities are provided to auests: and e. Parking management plan ensuring all available on -site parking remain free of obstructions and available for use by the short term lodging user. For short term lodging units that are non -conforming due to number of parking spaces provided, there shall be sufficient data to indicate that parking demand will be ',s than requored satisfied by the provided number of spaces or that alternative modes of transportation are ether parkinq is available (e.g., r»rkORQ 10t IOGated Rear y bicycles and e-bikes, bus and trolley routes, rideshare services, private offsite parking lots, on street parkoRq available greater than normal walk in trade, alterr„+i„e tr']r,Oper-tat!*!1r, etc.) such that use or operation of the short term lodging permit will not rely on the City's stock of public on -street and off-street parking or reduce availability of parking in nearby residential neighborhoods. 2. No deed -restricted affordable housing units shall be used for short term lodging. Section 4: The definition of "Bed and breakfast inn" of Section 21.70.020 (Definitions of Specialized Terms and Phrases) of the Newport Beach Municipal Code is hereby amended to read as follows: "Bed and breakfast inn" means a dwelling unit that offers guest rooms or suites for a fee for less thaR thirty (30) days or less, with incidental eating and drinking service provided from a single kitchen for guests only. Section 5: The title and definition of "Short-term lodging" of Section 21.70.020 (Definitions of Specialized Terms and Phrases) of the Newport Beach Municipal Code is hereby amended to read as follows: "Short term lodging" means a dwelling unit that is rented or leased as a single housekeeping unit (see "Single housekeeping unit") for a period of less thaR thirty (30) days or less. 24-130