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HomeMy WebLinkAboutSS3 - Short-Term Lodgings - PowerPointShort -Term Lodgings and Rentals COUNCIL STUDY SESSION AUGUST 9, 2o16 `&FLIPI<EY= by p o tripedvisor August 9, 2016 Item No. SS3 I I\V R B Cr from ('iomeAway Newport Beach has a long history of Vacation Rentals Balboa Island Balboa Peninsula Corona del Mar Short-term rentals: 0 _g. f Balboa Island — 195os 0 JL IIIIIIiiii Part of the culture of certain neighborhoods for decades. Provide lodging with kitchens that accommodates families and other larger groups Provides property owner with an annual overall rental income that is higher when compared to a long-term rental g p g Newport Beach Regulations In 1992 the City adopted Short-term lodging regulations (Title 5): Defined "short term" as an occupancy that is 30 consecutive days or less Required a Permit Prohibited Short-term lodgings in R-1 Single Family zones unless a permit was issued prior to June 1, 2004 and that permit has not been revoked. There are 212 "grandfathered" properties. 1 194 R-1; 17 Mixed -Use; 1 Single -Family in a Planned Community 0 93 Properties have an active STLP o 119 properties do not have an active STLP, but could get one. How to Get an STEP- Current Procedures ( ---- -------------- ------------------------ -------------- 0 ----- Must be in correct Residential Zone Obtain aShort-term Lodging Permit (STEP) and a Business License Pay Transient Occupancy Tax (TOT) Note: Some Homeowners Associations may prohibit short-term lodgings as part of the CC&Rs; property owners need to consult with their association. Short -Term Lodging Permitted -------- nn5 ---------------- Active Short -Term Lodging Permits Concentrated Areas s(")M u0 Active Short -Term Lodging Permits',J� Im (Concentrated Areas Account for: 044 qt&� 124 West Newport /Newport Shores 6% of 1,933 Housing Units in Area o� 736 Balboa Peninsula 12% of 5,877 Housing Units in Area 0000 O 0 244 Balboa Island 11% of 2,323 Housing Units in Area 77 Corona del Mar Village 2% of 3,298 Housing Units in Area 21 All other Areas 1202 Active Permits As of August 5, 2096 ❑.—n, Name. SrLP permit Concentra[lan a(b 00 O OC 0 0 �0 O 0 0 0 ®o O °� O a 00 O Balboa Island Active Permits (244) nn7 January 2016 City Council Study Session Council indicated interest in: Public outreach. Stakeholder discussions. Filling in gaps on the Peninsula for vacation rentals Adopting regulations for homesharing Adopting standard operational guidelines for vacation rentals Pursuing agreements with the online services to disclose rental information and submit TOT to City What Have We Been Doing? =------- 9 ---------. --- Multi-Department Approach: Police, Finance, City Manager's Office, City Attorneys Office, Code Enforcement, and Planning Conducted Public outreach. March 23rd and June 21st Community Meetings Newport Beach Association of Realtors Balboa Island Improvement Association Individual meetings with Residents and Realtors Evaluated of filling in gaps in some R-1 zones on the Peninsula Defined "homesharing" Expanded operational standards for vacation rentals based on input received Pursued Agreement with one online service to disclose rental information and submit TOT to City. What Have, We, Heard? __ E) --------- -------------------- x Additional Operational Standards More Code Enforcement Preserve Residential Character of Neighborhoods regardless if single- or multi -family Limit number of permits allowed • Eliminate STL permits Do not issue permits where CC&Rs do not allow Local contact and phone number 24/7 • The City has numerous responsible property management companies wanting to share their best practices Filling in the Gaps on the Peninsula and West ------------- Newport?? --------- • Should Single -Family Districts allow additional STL permits? R-1 Lot Analysis Area 1 --------------------------------------------------------- n(12) -------------------------------------- area 1 1 R-2 to R-1 Ordinance 99-34 1 V730999 R-1 Properties: 101 Number of DwellingUnits. 136 Number of Lots with 2 or more Units: 33 Typical Lot Size (s Lft)_ 1750 Grandfathered Properties, 26 Active STLP 25 P A C 1F I C O C E A N Area 2 T H E ,ga�r<o CHANNEL R H I N E eY% 1es M `5 ski b e�2 � � s otir sr / �O r "F Lr " PENIN: 4IR.3 to R-1 Ordinance 89.34 11113!1989 R-1 P.p.-ties _ 40 Number of Dwelling units: 60 Number of Lots with 2 or more Units. 19 Typical Lot Size (Sr]_FT): 1975 Grandfathered Properties. 15 Active STLP: 16 N, wr. 5 = NEWPORT HARBOR --- M Grandfathered Properties: 0 Active STLP STLP Lot Analysis Areas 1 & 2 R-1 Lot Analysis Area 3 - 6 13 -------------------------------------------------------- no --------------- --------- Area 5 ,SLE CLQ""�L R-1 Historically from 1950 R-1 Properties. 69 Number of Dwelling Unrs: 90 Number of Lacs with 2 or more Units: 10P O R T p B 6 R / Typioal Lot Size (aq_ft). 2100 Grandfathered Properties: 6 Active STLP 1 Hql Rpt .�Il R-1 Historically from 1943 —W R-1 Properties: 43 Number of Dwelling Units48 Numherof Lotswith 2 or mare Units: 2 Typical Lot Size (sq_ft) 3735 Grandfaflhered Properties'.. 8 Active STLP - 1 v P n c rr c r lYY'V. J c E n N -4 to R-1 Ordinance 8934 1111311989 R. Properties: 76 Number of Dwelling Unils: 119 Typical Lot Size (sq_ft)'. 2100 Number of Lotswith 2 or more Units- 38 Grandfathered Properties: 17 Active STLP 15 F R-1 Historically from 1943 R-1 Properties: 109 Number of Dwelling Units: 126 Number of Lote witll 2 or more Url 14 Typioal Lot Size (sq_8(: 2100 Grandfathered Properties 21 Active STLP 8 ..Lj ® Grandfathered Properties: © • Active STLP STLP Lot Analysis Areas 3, 4, 5, & 6 C040 Gf of Nwpm ®eacM1 Noy I yb R-1 Lot Analysis Area 7 -- 0 zJ % 2 2 2 2/ 2 2 1' 2 C 2 1 O/ 2 2 2 h"222 z / z t j 2 z 2 2 1 2 < 2 2/ Area 7 R-2 to R-1 Ordinance 89-34 1111311989 R-1 Properties. 36 Number of Dwetml Units: 52 Number of Lots with 2 or wore Undsc 12 Typical Lot Size (scL_H): 1800 GranCfatheretl Properties: 16 Active STLP : 12 P A C! F 7 C O C E A h! 011 W 2 2 2 2 a�' 2 2 1 1 1 1oQ4 O\ / t Aq n5 2 2 ? / /3 2 2 01 �6 2 2 3 n r� 2 2.2 NF 2 1 X51 i 2 p//-}�j O 11 Z SUPERIOR AVE ® Grandfathered Properties: 0 Active STLP STLP Lot Analysis Area 7 Qr GIS Phiinn Nq 19, ROr 5 Filling in the Gaps?? ---- ---------------------------------------- E) --------------- - Many of the R -i areas were created in 1989 because of small lots. Others were always R -i. Interest to preserve single-family character. RECOMMENDATIONS: No change to areas where STL is permitted Phase out on a specified period the 212 "grandfathered" units in the Single -Family zones Limitations on the # of Permits ---------------------------------- -------------------- E) ---- I --------- There are presently 1202 permits citywide Should the City place a limit on the number of permits allowed? Citywide? Smaller Communities? Such as Balboa Island? A Phase 2 recommendation Homesharing — What is that? Typical vacation rentals are for entire units, and the owners are not present. Homesharing means that the owner is present, who rents out a bedroom or even a couch on a short-term basis. _ An example of "Homer -sharing Hornesharing- continued E) ---- --------------------------- RECOMMENDATION: Create Definition "Short term" shall mean occupancy of a lodging unit for a period of thirty (ao) consecutive calendar days or less. This also includes a maximum of one written or oral rental agreement within a lodging unit for a period of thirty (30) consecutive calendar days or less, wherein the owner, tenant agent, or rental manager is the long-term occupant of the lodging unit and is residing at the lodging unit during the term of the rental agreement. New Operational Standards "A Interior Notification Exterior Notificatio Other Name of local contact person Shall display a notice on theMax. Occupancy: on a 24 hour basis. Local exterior that is legible and 2 adults (18 yrs or older) per bedroom contact must be within 10 visible to general public ID miles of the unit Number & location of on-site Local contact person phoneProvide City with local contact person parking number that is within 10 milI&L information of unit Trash pick up day and trash Short Term Lodging Permit "Short term lodging permit to be collection rules number displayed on all advertisements Street Sweeping Day City website address, Polic Unregistered/Non Compliant Units Department phone, Code will be required to vacate the guests Enforcement phone from the unit at the end of the agreement, and no further rentals ELk allowed. Notice that guests are No Commercial activities responsible for all activities Onsite parking must be made available violations will result in fines. to guests City's right to inspect 0 Other Regulations -- 0 ------ As part of application, Require HOA letter stating Vacation Rentals are allowed by CC&Rs Require a Minimum Stay — 4 nights Code Enforcement � -Enforcement is key 2015 — 23 Administrative Citations Issued June 2015 — seasonal employee hired to assist in enforcement Over 25o non-compliant on-line listings identified Of those, 131 obtained the required permits City collected $218,700 in fees and TOT as a result of the enforcement effort Increased Enforcement Summer 2016 — Seasonal employee to focus on on-line listings Proactive Enforcement Program Noise Abatement: DAC/LUGO Enforcement Use of Tier 2 Fines ($1,000, $2,000, $3,000) Weekly Communication with Police Department Proposed Proactive Code Enforcement Services ---------- - -------- -------------- -------------------- E) --------- ---------- ---------- -Contract with professional service that will provide a more robust list of unpermitted Short-term rentals Part-time Code Enforcement Officer focused solely on Short-term Rentals Part-time Revenue Position to provide Admin Support Additional Cost: $204,000 to $2ii,000 * Cost can be offset by the collection of unpaid TOT, business license and permit fees The Internet Effect Online companies such as VRBO, F1ipKey, and airbnb have created a whole new facet to vacation rentals. J-,FLIPKEY' by o frlpadvisor \VRBC II from HomeAw(, Difficult to regulate because online businesses do not have a physical presence here. The Internet Effect ---- --------- -------------- E) --------- - Online companies have said the City rules do not apply to them The City disagrees and is working to get them to follow the same rules everyone must follow • Working with airbnb to get agreement that they will: Only list rentals that have a valid City STLP Allow for auditing of TOT revenue Pay TOT on all rental income received I FLIPKEY by 9�tripadvisor Engaging the Community Interactive Map ---- -------------- E) ------------------------------ ---- Find out where STL is: permitted, not permitted and the status of existing permits. nteractive Map &Aodress Search The late ractive Map or Address Search tools can asslsl to you with the following inforrnation for a particular .. menVdeoanarnensslnn:. ._ Newport Reach._ P°i Newport Seaeh GI... Active Shad -Terni Lodging Permits --- Short Tam I net inq allowed suhjert to inning comlplianre • I'Toper'hes perp itled pri ur to June 2004 per M.C. 5.95.1320 +. aC &ZA1mo[maL. VNewpmt Beach GiS-Emp.. �/Gencorhex Yiewrerhir'Stiv,.. �" Login [211�ChlB-laserfiche wehlrnk .enactive Map & Address Search the Interactive Map or Address Search tools can assist Iv you with the follming inlonnahon for a parkUlar property • Acu- Shen -Term Lodging Permits • Shod -Team Lodging allowed subject to zoning compliance • Properties pemtitted prwr to June 2004 per M.C. 5.95.13211 LAck Interactive Map to view or Enter Address Below: _ - Enin'Address rk r j ry��a `..I� LT ocEarlRonrr w PERMITTED C.Iirk Interardeva Map to view or Enter Address Below: Enter Address Shur l-Iein1 Lodging is pi utnblted. .. _ 'A.•ti4�e M s Inn -Tenn Lndg ng allowed �p »nil in inning mmpla3nre, nut PROHIBITED here 35 not currently an aceva pernSA Interactive Map 8 Address Search The Interactive Map or Address Search tools can assist toyed with the following information for a particular prcpe,' . Active Shull -Terni Ludgnig F errTllt'S • Short -Term Lodgingal lowod subject tozoning compliance • Prnpen.— permitted prier 1n June ?004 per M C 5 85 020 Chrk interer:irve tMp Iii vies•. Enter Address Below: Eater Ad tiluirl- ciao Itollprrlt ti nlhmwit sulyc.:l to—ning—njAanrw �l1fFC1� 'Amir ntlV an ac.€Ive point[, SLP11161. PERMIT STATUS (D z —Phased Approach Expand the STL Operational Requirements Require permits to be renewed on an annual basis Require HOA verification letter as part of Application • Require a Minimum Stay — 4 nights or other appropriate # Include "Homesharing" in Municipal Code definition 2 -Phased Approach ------------------------------------------------------------------------ 0 ---------------------------------------- Phase out the 212 "grandfathered" Single family properties Continue to negotiate with online host platforms Increased Code Enforcement 2 -Phased ApproachE) ---------------------------------------- Return to City Council in Fall 2018 for evaluation. If necessary pursue additional regulations: Placing cap on total permits citywide or by geographical area Extending length of minimum stay Limiting the #of days/year or to a specified time period/year Increasing Vines and/or additional Code Enforcement Next Steps -- E)_ --------- Based on Council input Staff will return with proposed Municipal Code amendments and draft operational standards for review and consideration. Questions Provide Comments -- 0 ------ Kim Brandt, Community Development Director: kbrandtpne3yportbeachca.gov