HomeMy WebLinkAbout08 - NBMC Amendments Related to Short Term Lodging (PA2023-0116) - CorrespondenceReceived after 5pm Add. Mat. deadline
August 26, 2025
Item No. 8
6
BETTER NEIGHBORS LA
August 26, 2025
Newport Beach City Council
100 Civic Center Drive
Newport Beach, CA 92660
cityclerkknewportbeachca. gov
ria Electronic Mail
Re: Better Neighbors LA Comment Letter — Agenda Item S: Ordinances Related to Short -
Term Lodging — OPPOSE
Dear Honorable Mayor Stapleton, May Pro Tem Kleiman, and Councilmembers,
Better Neighbors LA respectfully submits this letter in strong opposition to the proposed
amendments to the Newport Beach Municipal Code regarding short-term rentals ("STRs"). As
communities across Southern California continue to grapple with a housing affordability and
homelessness crisis, it is imperative that governments take proactive steps to protect housing
stock for long-term residents. We urge the council to vote NO on these amendments.
Better Neighbors LA is a coalition of hosts, tenants, housing activists, hotel workers, and
community members working to curb illegal STR activity with the intent to protect housing and
neighborhoods impacted by the STR industry.' We conduct research on the impact STRs' have
on affordable housing.
The proposed ordinances promote the corporatization of STRs and threaten long-
term housing availability. Specifically, the ordinances limit the new STR permits in the MU -
CV, "Mixed Use Cannery Village and 15th Street," and MU-W2, "Mixed -Use Water" zones to
property owners with twenty or more units in the same statistical area.2 This threshold effectively
excludes small-scale operators and favors corporate landlords, incentivizing the conversion of
housing units into STRs.
While the Council suggests that this requirement will encourage professional STR
management and improve enforcement, our experience with the Los Angeles' Home -Sharing
Ordinance reveals the opposite. Commercial hosts are often tied to illegal STR schemes and
possess the resources to evade detection by code enforcement staff. The proposed ordinance
1 bgps://www.beftemeighborsla.org_/
2 City of Newport Beach 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), page 36:
hgps:Hecros.nenortbeachca. gov/WEB/DocView. aspx?id=2929979&dbid=0&repo=CNB
250 East 1st Street, Suite 1201; Los Angeles, California 90012
213.336.5900 • betterneighborsla.org
Better Neighbors Comment Letter
Agenda Item 8: Ordinances Related to Short -Term Lodging
Page 2 of 2
places no cap on the number of permits they can operate, paving the way for residential
neighborhoods to be transformed into de facto hotel zones.
In Newport Beach, the number of commercial hosts has already increased 32% between
January 2019 and July 2024. There are now 752 commercial hosts in Newport Beach, a majority
of whom have six or more listings each. The largest operator in Newport Beach boasts over
1,000 homes on their profile, compared to 2019's largest host with 73 homes on their profile.3
The ordinances will exacerbate the negative impacts of commercial STR ownership, including:
• Removal of housing stock from the long-term rental market
• Decreased housing affordability
• Erosion of community character
• Increased housing instability for renters
Moreover, STRs in Newport Beach do not meaningfully contribute to Lower Cost
Coastal Accommodations ("LCOAs"). As defined by the California Coastal Commission,
LCOAs are priced at approximately 25% below the statewide average daily room rate or less,
which was $187 in January 2025.4 Less than 5%, or 59 of the 1,249 Airbnb STR listings in
Newport Beach in January of 2025, are below the $140 threshold to be considered LCOAs.s
As of January 2025, the average cost of an unhosted short-term rental was $560.55 per night.6
These figures demonstrate that the proposed ordinances will not improve coastal access for low -
and moderate -income individuals but will instead further corporatize the STR market and drive
up nightly rates.
In conclusion, the proposed ordinances will not enhance enforcement or affordability.
They will instead accelerate the loss of housing stock, destabilize neighborhoods, and prioritize
corporate profit over community well-being. Better Neighbors LA urges the City Council to
reject these ordinances and pursue policies that protect long-term housing and preserve the
character and stability of Newport Beach neighborhoods. Should you have any questions, please
contact Maura O'Neill at maura&bettemeighborsla.org.
Sincerely,
/s/
Randy Renick
3 Data on file with BNLA from Inside Airbnb, bVs:Hinsideairbnb.com/.
4 h!Ws:Hindustry.visitcalifomia.com/research/report/monthly-travel-indicators-summary
5 Data on file with BNLA from Inside Airbnb, h!Ws:Hinsideairbnb.com/.
6 Data on file with BNLA from Inside Airbnb, htWs:Hinsideairbnb.com/.
250 East 1st Street, Suite 1201; Los Angeles, California 90012
213.336.5900 • betterneighborsla.org