HomeMy WebLinkAboutDirect Staff to Amend the Zoning Ordinance for Short Term ReFfiCITY
OF HUNTINGTON BEACH
City Council Interoffice Communication
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To:
Honorable Mayor and City Council Members
From:
Pam Houchen, City Council Member
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Date:
March 23, 2004
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Subject:
H-ITEM FOR APRIL 5, 2004, CITY COUNCIL MEETING —
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SHORT TERM RENTALS
STATEMENT OF ISSUE:
The Huntington Beach Municipal Code 3.28.032 provides that upon occupancy of any
hotel, a transient must pay a transient occupancy tax (TOT) as declared by Council.
Based on the definition of a "hotel," the proposed use of a home as a short-term
vacation rental would trigger this requirement. However, under the City's Zoning and
Subdivision Ordinance (Z 50) Code, the short-term rentals are allowed only if the
property is 10,000 square feet or greater.
As a practical matter, the ZSO permits the commercial use of Visitor Accommodations
in a residential district only in very limited circumstances, which are set forth in ZSO
Section 210.04. First, the property must be within a RMH-A sub district. Second, the lot
must be 10,000 square feet or greater. Third, a conditional use permit must be obtained
from the Planning Commission. Finally, ZSO Section 230.42 requires that the Planning
Commission make specific findings relating to, inter alia, design and development
standards, emergency access, and availability of utility service.
It is unlikely that any property in a residential district would actually meet these
qualifications for Visitor Accommodations. This use would be permitted if the lot is
10,000 square feet or bigger and a conditional use permit were obtained from the
Planning Commission following a public hearing and the adoption by the Planning
Commission of the required findings.
Another consideration is that the ZSO regulates a home occupation in a residential
district. A home occupation is defined as "business activity conducted in a dwelling unit
in a residential district that is incidental to the principal residential use of a lot or site"
(ZSO 203.06). Renting out of a home could be interpreted as a home occupation thus
triggering the ZSO provision applicable to home occupations. For instance a home
occupation permit would be required and the standards set forth in ZSO 230.12 would
have to be satisfied as a condition of the home occupation.
Thus, although the City has the authority to collect TOT for rental of this home for less
than 30 days, it is doubtful if any properties within the City satisfy the applicable land
use controls and therefore such use would be prohibited by the ZSO. Any collection of
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SHORT TERM RENTALS 3/23/2004 Page 2
TOT might be construed as tacit approval of a use of the property that is inconsistent
with the City's ZSO.
The City Treasurer's Department currently collects TOT for the City. They have been
contacted by both real estate agents and the Huntington Beach Conference and
Visitor's Bureau regarding this issue, who have also been contacted by people wanting
short-term rentals of property under 10,000 square feet in Huntington Beach.
Newport Beach allows for short-term rentals in their City. In 2001, their total TOT
collected was $8.1 million of which approximately $689,000 was from their 500 short-
term rentals. In 2002, their TOT collected was $7.7 million of which $1 million was from
their short-term rentals. Although Huntington Beach does not have the housing
situation that supports these rentals as much, it does appear that there is a demand for
it and would generate much needed revenue for the City.
RECOMMENDED ACTION:
Therefore, I am recommending that the City Council take two actions:
1. Direct the City Administrator and the Director of Planning to bring back an
amended zoning ordinance allowing such rentals.
2. Direct the City Treasurer to work with Planning, and the City Attorney to update
the current TOT ordinance and provide a procedure for collecting TOT similar to
other cities, such as Newport Beach.
xc: Ray Silver
Bill Workman
Connie Brockway
Shari Freidenrich
Jennifer McGrath
Howard Zelefsky
Council ! Item I
I Dept. Head
I Current
! Council/Staff I Item Description/Action Taken
Meeting/Memo i No. I
I Assi ned
Status
!3 !Sullivan !Re: H.Item _ Property Tax Refund Procedures
•-------------••------------------ ----------------------------------------------------------------------------------------
Silver
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;closed
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! ! :Action: Prepare preliminary outline of major steps in refund process and approximate date of completion - RCA
.
1 11 /3/03
1
11 /3/2003
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101_ 0 0 !Green Re: H-Item - Prop 50 Letter of Demand ------------------------------------------------- —,Mayor
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Closed
: Action: Cd Attorne to re are letter
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!2 �Coerper Re. H-Item -Purpose of Gun Range
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Action: Preparation of Feasibility Study - UPDATE schedule for 02/02/04 Study Session
--- - — --------- - - — y
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10l20/2003--------------1----- :Boardman :Re. H-Item -Sexual Harrassment Policy
Open
---------------- --:McGrath
I :Action: Prepare documentation
---•------------------------- ------------ ------------{-------------------------a----------------- ------------------------------------------------------------------------------------------------------------- ----------------------F-------------------------►--------------------
!Study Session Follow-up: Prepare H-item for Hardy re Amendments to Process for Approving Professional
!2 !Hardy !Services Contracts.Grant
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!Closed
--- -- -------------------------- -------------------------•------------------------------------ --------
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3 (Boardman 1Requested Information on the total number of affordable housing units in Huntington Beach__ Memo via Ray—�Bigqs/_Zelfefsky__�Closed
- -
11 /5/2003
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1113/2003 Memo Report Signage Sweeping
1 Council on for Street
---------------------------------------- {------------------------ +-------- —-----------------------------------------------------------------------------------------------------I-------------------------►-----12/21/200--
:Beardsley
:Closed
— - - — — -- —
11/17/2003 :1 :Council ;Follow-up report on number of employees taking advantage of the holiday closure of city hall. Item E-7
Martin
Closed
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!Gene Frederick requested assistance regarding landscape maintenance along a walkway at Peninsula Park Park
1/5/2004 %1 (Council land St. Augustine from Garfield to Summit.
Beardsley
Closed
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citizen
C 1 b Referred back to the Beautification Landscape & Tree Committee to incorporate recommendations from the
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Beardsley
Closed
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Action Action items taken to Council on 03/15/04
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3/15/2004
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Citizen requested help with parking citation - Councilwoman Boardman asked staff to follow up and provide
information to the council on whether we issue permits for parking on the street during street sweeping when there
415/2004 1 Boardman is construction activity at the residence
Small
OPEN
Refer to Comm. Sys. Comm policy for naming of parks and other city property and including gifts to the City for
2 Cook H-Item recommendations.
Engle
OPEN
MT=COUNCIL MEETING DATE MM=COUNCIL MEMBER MEMORANDUM
SS=STUDY SESSION DATE
4
6WO04 9:19 AM