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HomeMy WebLinkAboutCity Council Consideration of Directing Staff to Prepare an (3) s.s A6 a y&-,j City of Huntington Beach File #: 20-1837 MEETING DATE: 9/21/2020 REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO: Honorable Mayor and City Council Members SUBMITTED BY: Oliver Chi, City Manager PREPARED BY: Ursula Luna-Reynosa, Director of Community Development Subiect: City Council consideration of directing staff to prepare an Ordinance regulating Short-Term Rentals (STRs) Statement of Issue: As a follow up to the September 3, 2019, study session, staff is prepared to provide additional information regarding short-term vacation rentals (STRs), including three regulatory framework alternatives. STRs are not currently permitted within residential districts in the City. The purpose of this item is for the City Council to consider whether to direct staff to prepare an ordinance permitting and regulating STRs based on the information provided and attached to this report. If the City Council directs staff to prepare a short-term rental ordinance, staff will return with an ordinance for City Council consideration later this year. Financial Impact: Not applicable. Should the City Council direct staff to come back with a proposed ordinance to allow and regulate STRs, staff will identify the fiscal impact associated with such ordinance at that time. Recommended Action: Provide staff with direction on one of the following options which would require the City Council to consider if these proposed regulations apply to the entire City or only portions of town: 1. Direct staff to prepare an Ordinance regulating STRs with the Low Threshold Regulations; 2. Direct staff to prepare an Ordinance regulating STRs with the Medium Threshold Regulations; 3. Direct staff to prepare an Ordinance regulating STRs with the High Threshold Regulations. Alternative Action(s): Do not direct staff to prepare an Ordinance regulating STRs, preserving the current prohibition of STRs. Analysis: At the Strategic Planning Retreat in February 2019, the City Council directed staff to conduct a study session on the opportunities and challenges associated with STRs. The City engaged with Lisa Wise City of Huntington Beach Page 1 of 5 Printed on 9/16/2020 powere41.21 Legistar- File #: 20-1837 MEETING DATE: 9/21/2020 Consulting (LWC) and Host Compliance to provide an analysis and options for permitting and regulating STRs in Huntington Beach. At the September 3, 2019, City Council Study Session, an overview of the number of STRs in Huntington Beach was presented. In addition, case studies of four coastal cities (Carlsbad, Carpinteria, Newport Beach, and Pismo Beach) and the range of approaches in regulating STRs in the coastal zone were presented (see Attachment Nos. 1 and 2). The City Council inquired about the following topics and requested that staff return with more information: - hosted vs. unhosted STRs - primary resident requirements - potential revenues and costs - "grandfathering" of existing STRs - potential expansion in the number of STRs, if permitted - host compliance service - enforcement mechanisms - code enforcement companies - potential impacts (parking, noise from special events and parties) As a follow up to this request for information, additional research (see Attachment No. 3) and analysis will be presented to the City Council at the September 21st City Council meeting on the following topics: - definition of hosted vs. unhosted STRs - primary resident requirements - enforcement protocols - projections of short-term rentals market in Huntington Beach - code enforcement services available to an STR owner/operator - parking requirements for STRs - findings from community engagement efforts (stakeholder interviews, community survey) - potential revenues - regulatory alternatives (low threshold, medium threshold, high threshold) LWC and staff engaged in significant community outreach following the Study Session. The purpose of the outreach was to obtain constituent feedback from a broad group of stakeholders to gain better understanding of the community's tolerance and concerns related to STRs. Three options of regulatory framework for STRs have been created based on stakeholder feedback and case study research to tailor the potential regulations specifically for Huntington Beach. These options build upon themselves and increase the intensity of regulations with each threshold (see Attachment No. 4). In considering the tiered framework options, the City Council could select an option in its entirety or mix regulatory requirements from the three alternatives in providing direction to prepare an ordinance. 1. Low Threshold Regulations These regulations consist of moderate regulatory oversight from the City and transparency from STR property owners and include the following measures.- City of Huntington Beach Page 2 of 5 Printed on 9/16/2020 powere41A LegistarT°^ File #: 20-1837 MEETING DATE: 9/21/2020 • Code Enforcement (Existing Nuisance Ordinances) The City's enforcement would use existing nuisance laws, such as noise, safety, and property maintenance, as well as inspections and monitoring on-street parking. ■ Transient Occupancy Tax (TOT) The City would require STR owners to register their property with the City and to have them pay the Transient Occupancy Tax, commonly known as the hotel bed tax. ■ Local 24 Hour Hotline The City would establish a 24 hour hotline for STR-related complaints utilizing the revenue from the TOT. Complaints would be funneled to the Code Enforcement Division for investigation. ■ Notice to Neighbors STR owners would be required to send out a notice to all properties within 500 feet to let neighbors know that an STR is in operation at a certain address. The notice would include the STR owner's contact information and the 24 hour hotline number. ■ Owner Contact Information The STR owner would post their contact information in a high-visibility area along the primary frontage. Neighbors would be able to contact the owners directly if any issues arise. ■ STR Registration The City would require STR owners to register their units with the City and the City would have an internal database to know exactly how many STRs are operating and their locations. No fees or specific permits would be required to operate an STR in the City. 2. Medium Threshold Regulations These regulations build upon the `Low Threshold' category, but with increased regulatory oversight by the City, and include the following measures: ■ Exempt Status The City could allow for an exempt status for STRs already in operation to continue (or allow for an amortization period), but would require new ones to apply for a use permit and pay an associated business license fee prior to operation. ■ STR Permit & Business License Fee The City would require a STR operator's permit and business license and associated fees. ■ STR Permit Renewal (Annual) The City would require every permitted STR owner to renew their permit on an annual basis if the owner chooses to continue renting. City of Huntington Beach Page 3 of 5 Printed on 9/16/2020 powerAlA LegistarTM File #: 20-1837 MEETING DATE: 9/21/2020 ■ Tourism BID The City would require STR owners to pay into the Tourism BID. 3. High Threshold Regulations These regulations build upon the `Low Threshold' and 'Medium Threshold' sections with maximum regulatory oversight by the City and maximum transparency from the STR property owners and include the following measures: ■ On-Site Owner The City would require all STR owners to either live on the same property of their STR (hosted stay) or within a close distance (ex. 500 feet) to ensure that the STR has proper oversight and the owner is held accountable. Further, the City could impose a primary residency requirement, which would limit the number of days that the unit can be rented and would prevent investors from converting residential dwelling units into investment properties. ■ Minimum/Maximum Days of Stay Minimum and maximum number of days of stay would be enforced to ensure predictability for surrounding neighbors and the local STR market in general. ■ People per Bedroom Limit Limits would be placed on the number of people utilizing an STR at any one time to prevent potential overcrowding and other negative impacts. ■ Cap on Amount of STRs The City would establish a total number of STRs that are allowed and enforce that law through the official STR permitting process. ■ Conformance with Covenants, Conditions, and Restrictions (CC&Rs) While cities don't typically enforce CC&Rs, if the CC&Rs expressly prohibit STRs, the City will not issue a STR permit. ■ Neighborhood Zones (Geographic Limitations) Neighborhood Zones would be created to disburse the allowable amount of STRs in the City. In this case, there would be a maximum allowable amount of STRs per neighborhood. This represents the strictest possible measures; an overall cap on the number of STRs in the city and geographic limitations on how many units are allowed in certain neighborhoods. The City Council's direction tonight would result in staff preparing and bringing back short-term rental regulations via an ordinance for Council consideration. Environmental Status: This item involves the City Council direction to prepare an ordinance regulating short-term rentals and is exempt under Section 15061(b)(3) of the California Environmental Quality Act (CEQA), which City of Huntington Beach Page 4 of 5 Printed on 9/16/2020 powerE414 LegistarTI File #: 20-1837 MEETING DATE: 9/21/2020 exempts activities where it can be seen with certainty that there is no possibility that the activity may have a significant on the environment. The provision of the City Council direction in this case does not commit the City Council to adopting an ordinance. Upon direction from the City Council, staff will prepare an ordinance regulating short-term rentals and conduct environmental review in accordance with CEQA. Strategic Plan Goal: Non-Applicable - Administrative Item Attachment(s): 1. Case Study Summary Memo - September 3, 2019 2. PowerPoint Presentation - September 3, 2019 3. Research Summary Memo - September 21, 2020 4. Short-Term Rental Analysis - September 21, 2020 City of Huntington Beach Page 5 of 5 Printed on 9/16/2020 powered A,Legistar— CASE STUDIES SUMMARY MEMO SHORT-TERM RENTAL CASE STUDY ANALYSIS CITY Of HUNTINGTON BEACH To: City of Huntington Beach From: Lisa Wise Consulting, Inc. (LWC) Date: August 26, 2019 INTRODUCTION The recent rise of the sharing economy, particularly the significant growth in short-term rentals (STRs), presents opportunities and challenges for communities and lawmakers. While the rise of STRs presents some consistency in policy challenges across jurisdictions, a range of regulatory responses have been instituted to address specific local issues. This memo addresses responses in four California cities for the City of Huntington Beach (City)to consider. This memo describes STR regulations of four California cities: Carlsbad, Carpinteria, Newport Beach, and Pismo Beach. The four case studies were selected by the City in coordination with LWC as representative of a range of approaches in coastal jurisdictions. Various approaches have been implemented throughout California and nationally. SUMMARY Table 1 provides a summary comparison across the four STIR case studies. A detailed discussion of each case study's STIR regulations follows this Summary section. 983 OSOS STREET,SAN LUIS OBISPO,CA 93401 (805)595 1345 ' LISAWISECONSULTING.COM ; 1 417 Table 1 — Short-Term Rental Case Studies Summary Carlsbad,CA Carpinteria,CA Newport Beach,CA Pismo Beach,CA Year Regulations 2015 2017 2004 2019 Implemented Estimated Number 690 1451 215 with licenses,total 15 with permits,4 of Active STRs' unknown , pending,total unknown Not allowed in single- Only allowed in single Vacation rentals limited to family residential zones or Allowed in the Coastal family homes that are an overlay zone.Overlay single-family homes in Zone and La Costa Resort primary residences(owner Overview Zone sets vacation rental planned developments or Area.Banned outside of must reside at the home the Coastal Zone. naps by four sub-areas. specific plan areas.STRs as 183 days or more per Home stays are allowed. of June 1,2004 are grandfathered. year). Local 24-hr contact.Notify Vacation rentals:24-hr Local 24-hr contact. adjacent neighbors.Post contact within 30 miles, Provide guests with City Local 24-hr contact. Host Requirements Permit on exterior of unit. notify neighbors within rules and regulations.Best Provide guests with City Provide guests with City 100ft,and post contact info efforts to prevent nuisance rules and regulations. rules and regulations. on exterior of unit. activities. Special events prohibited. Vacation-rentals:special Max.2 ppl/bedroom plus Operational ` Number.ofoccupants Limitations Max.2 ppl/bedroom plus events prohibited;max.2 limited per Building Code. 2.Parking spaces required 1. ppl/bedroom plus 2. per bedroom. Short Term Vacation Rental Vacation Rental/Home Stay Short Term Lodging STR Permit Permit License Permit/TOT Registration Short Term Rental Permit STR Permit Fee No fee $315 $103 $399 STR Permit Annual renewal required Does not expire(business Renewal (no fee) Annual renewal($105 fee) Annual renewal(no fee) license must be renewed annually) TOT 10%effective rate 12% 10%effective rate 14% $25 plus$0.30 per each N/A(Vacation $30 plus tiered flat fee per Business License 00$1, 0 annual gross Rental/Home Stay License $174 for residentially annual gross receipts(e.g., Fee/TaxZ receipts serves as a business based businesses $20 for receipts up to license) $25,000) Not reviewed by Coastal California Coastal STRs allowed in Coastal Regulations approved by Commission(regulations Coastal Commission Commission Zone Coastal Commission not in Local Coastal approved July 2019 Program) Estimated Number of Active STRs includes all licensed and unlicensed STRs estimated within each city. z Fees identified exclude State fees. 983 OSOS STREET,SAN LUIS OBISPO,CA 93401 i (805)595 1345 i LISAWISECONSULTING.COM 2 418 Each City approaches STIR regulation differently based on unique circumstances and objectives, and some are continuing to explore methods to improve STIR-related procedures and enforcement. Clear and simple regulations are often most efficient to administer and enforce, but STIR regulation has proven to be complicated in the sharing economy era.The reliance on online hosting platforms to take a role in ensuring legality of STRs is apparent but brings significant challenges as well3. This memo provides insight on potential regulatory strategies the City may consider. CASE STUDIES Carlsbad, CA The City of Carlsbad adopted STR regulations in 2015.The City established its regulations to limit the negative impacts of STRs, which was generally seen as neighborhood compatibility, and ensure access to the coast, consistent with the California Coastal Commission. STRs in Carlsbad are only allowed in the Coastal Zone (see Figure 1). Figure 1: City of Carlsbad, Coastal Zone Map City of Carlsbad S l �(7 4 NEDN9N0 a pp GOBN B� PACIFIC - OCEAN �IIRIM 3 A ruling filed on March 13,2019 by the United States Court of Appeals for the Ninth Circuit affirmed the dismissal of a complaint brought by HomeAway.com and Airbnb Inc.against the City of Santa Monica for imposing various obligations on hosting platforms. Based on this ruling, increased participation may be seen from hosting platforms with both data-sharing and enforcement issues. 983 OSOS STREET,SAN LUIS OBISPO,CA 93401 (805)595 1345 LISAWISECONSULTING.COM 3 419 STRs are banned everywhere outside of the Coastal Zone, except for the La Costa Resort and Spa Master Plan area, within which two buildings are permitted to host STRs following an owner led petition'. While Staff notes that generally residents are content with the regulations, there have been negative responses from homeowners who purchased their home without understanding the City's STR limitations (i.e., STRs are prohibited outside of the Coastal Zone). The City's STR regulations are in Business License and Regulations,Title 5 of the Municipal Code (Chapter 5.60). Carlsbad's regulations make no distinction between home sharing(e.g., rental of a portion of a unit or when the host is on-site during rental activity) and the rental of an entire unit; both require the City's Short-Term Vacation Rental (STVR) Permit and a business license. STVR Permits must be renewed annually. As part of this Permit, the City requires a local 24-hour contact person for the purpose of responding within 45 minutes to complaints regarding the conditions, operation, or conduct of occupants of the STR. STR owners must acknowledge receipt of the City's"Good Neighbor Brochure" when applying for a STVR Permit.Additional standards include: • Provide the "Good Neighbor Brochure"to the renter. • The STVR Permit shall be posted on the exterior of the unit within plain view of the general public with the 24-hour contact's phone number(only required to be posted during rental activity). • Limit the number of occupants to two per bedroom or studio plus one per unit. • No amplified or reproduced sound shall be used or audible from the property line between 10:00 p.m. and 10:00 a.m5. • Trash shall not be left stored within public view except in proper containers for the purposes of collection. • To the greatest extent possible, occupants and guests shall utilize on-site parking and avoid parking on nearby residential streets. In July 2018, the City amended its Ordinance to include a requirement that STR owners prepare and distribute to adjacent neighbors an "Impact Response Plan". This plan must state the owner's intent to operate a STR,the number of bedrooms that will be rented, and the phone number for the owner or the owner's authorized agent. The plan is distributed to all residents and property owners abutting or across the street from the STR. The July 2018 amendment also included language that banned STRs in timeshares and recreational vehicles and prohibited commercial activities and special events(e.g., weddings) at STRs. 'The two condominium buildings in the La Costa Resort and Spa Master Plan require guests enter through the resort to access units and are subject to additional oversite and restrictions established by the resort. Further,these units were always intended to be vacation rentals.The exception for the La Costa Resort and Spa Master Plan was the first amendment to the City's STR regulations. s The City of Carlsbad does not have a noise ordinance. 983 OSOS STREET,SAN LUIS OBISPO,CA 93401 1 (805)595 1345 1 LISAWISECONSULTING.COM 4 420 The City's regulations require that "brokers" (i.e., hosting platforms such as Airbnb) ensure STRs listed on their sites are registered with the City; however, Staff said this is not enforced. Staff estimates that approximately 690 unique rental units are posted online within Carlsbad,with approximately 270 that are licensed. The City opens approximately 350 STVR compliance cases per year, and Staff estimates at least an 80% success rate for compliance cases. In general, Staff noted increased success in enforcement as fines increase. Fines are levied at$100, $200, and $500 per violation, and the City collects a 100% late fee (doubles the violation fine). Also, if three or more administrative citations, verifiable violations, or hearing officer determinations occur within a 24-month period, the STVR Permit may be revoked. In the event of Permit revocation, a STVR Permit may not be issued for that property for three years. To date, no STVR Permit has been revoked. Complaints have been limited, with Staff noting that most STRs are good neighbors, citing Carlsbad's family atmosphere and lack of party scene as contributing factors. Complaints are typically minor, such as kids playing in a pool at night, and the City may not receive a complaint for months at a time. However, City regulations include that the owner of an STIR may be billed for law enforcement services when a second or subsequent police response is required, and the police officer determines that continued activity is a threat to the peace, health, safety, or general welfare of the public. STIR hosts are required to maintain a record of renters for three years, consistent with the TOT audit process, and must make this information available to the City upon request.The City requires all STRs pay TOT including non-compliant and illegal STRs. Staff speculates that STRs are cannibalizing existing hotel business but noted that new hotels have been built in Carlsbad in recent years, obscuring effects STRs may be having on the local market. Staff estimates that approximately $1,000,000 is remitted in TOT annually from STRs, and the City spends less than $1,000,000 on the STIR program every year. TOT in Carlsbad is set at 10% plus $1 per bedroom per night collected for the Carlsbad Tourism Business Improvement District(TBID).The City entered into a TOT collection agreement with Airbnb in August 2018,which provides the City with a lump sum payment of TOT. No other hosting platform collects or remits TOT to the City. Staff noted limited enforcement of the $1 per bedroom TBID fee, which was originally designed for hotels and is challenging to enforce for STRs,which would generate little of this revenue regardless. The City employs two full time employee equivalents (FTEEs)who are responsible for enforcing regulations. Code enforcement employees dedicated to STIR enforcement were described as having a different skill set than conventional code enforcement staff, as the task of STIR enforcement requires technically savvy officers who are comfortable with analyzing data. Overall, Staff estimates between five and six FTEEs are allocated to the STIR program (Finance, Police, Attorney, Community and Economic Development). Staff reported that attorney time is needed to help with enforcement cases and process tax liens and other penalties. Staff estimates that the City is 6 to 12 weeks behind in processing STVR Permits (Staff stated that STVR permits should only take one week to process). STVR Permits are free, but Staff suggested that a fee would be appropriate. Additionally, Staff suggested that more services could be provided online, including the STVR Permit application and payment of TOT, which could help increase efficiency and compliance. The City uses outside contractors to provide data on STIR location, monitor compliance, provide Administrative Hearing Officers, and provide administrative citation billing and collection services. 983 OSOS STREET,SAN LUIS OBISPO,CA 93401 1 (805)595 1345 I LISAWISECONSULTING.COM 5 421 Carpinteria, CA Carpinteria's STR regulations went into effect on July 1, 2017. Staff describes the City's regulations as being adopted proactively, noting that City leaders saw problems arising in other communities where STRs were common, including STRs potential impact on the local housing market.The City's Zoning Code regulates two types of STRs - Home Stays and Vacation Rentals - each defined as follows: • "Home stay"-A type of short-term rental where the owner remains in the residential unit during the entire rental period.A home stay does not include the hosting of personal guests, home exchanges or vacation rentals. Tents,yurts and RVs are not allowed as a part of a home stay rental. • 'Vocation Rental"-A type of short-term rental where the owner of the residential unit does not remain in the residential unit during the entire rental period. Vacation rentals typically include the rental of an entire dwelling or premises. For the purposes of the Zoning Code, a vacation rental does not include time shares, home stays or home exchanges. Tents,yurts and RVs are not allowed as a part of a vacation rental. Home stays are allowed in residential zoning districts (R-1 single-family residential, planned unit development, and planned residential development zone districts). While the entire City is located within the Coastal Zone, Vacation Rentals are limited to the Vacation Rental Overlay District(VROD), which is generally bounded by the City's State Beach in the southwest, Fifth Street in the northeast, Ash Avenue in the northwest, and Linden Avenue in the southeast(see Figure 2:Vacation Rental Overlay Area Map). 983 OSOS STREET,SAN LUIS OBISPO,CA 93401 1 (805)595 1345 1 LISAWISECONSULTING.CGM i 6 422 Figure 2:Vacation Rental Overlay Area Map, Carpinteria' Areas (Max No. of Vacation Rentals) [�Area A (55 units) �"��;� 0 Area B (115 units) f, y' Q Area C (30 units) 0 Area D (18 units) \` ll an�c q., Area D� Area C Area B Area Vacation Rental Overlay Area Map The VROD is made up of four areas (Area A, B, C, and D), each with different caps on the number of Vacation Rentals allowed. These caps were established based on the estimated number of STRs located in each area at time of the VROD creation.A total of 218 Vacation Rentals may be allowed. If the cap in each area is reached, then 60%, 50%, 15%, and 15%of the total units in each area, respectively would be Vacation Rentals'(see Table 2: Maximum Allowed Vacation Rentals by VROD Area). Table 2: Maximum Allowed Vacation Rentals by VROD Area Area A B C D Max Vacation Rentals allowed 55 115 30 18 (Units) Max allowed Vacation Rentals as 60% 50% 15% 15% percent of housing units 'City of Carpinteria,Short-term Rental Administrative Policies and Procedures,August 2018. 'Sam Goldman,Carpinteria Prepares to Enact Short-Term Vacation Rental Rules, Noozhawk.com,June 24,2019. 983 OSOS STREET,SAN LUIS OBISPO,CA 93401 1 (805)595 1345 LISAWISECONSULTING.COM 7 423 Currently, two of the areas have reached their cap (Areas C and D), and Staff suggests that they would consider increasing the cap in these areas. The VROD Ordinance established a lottery system for assigning licenses; however, as the initial number of Vacation Rental applicants was below the cap established in each of the four areas, no lottery was held.The City has since switched to a waitlist system, and no more than three Vacation Rental applicants have been on the waitlist at any time$. The City has more requirements for Vacation Rentals compared to Home stays, including: • Vacation Rentals with no on-site manager shall require noticing that includes the contact information for the owner and person or property manager responsible for managing the Vacation Rental to properties within 100 feet. • The owner or property manager must live within 30 miles of the Vacation Rental. • The owner or property manager's contact information must be posted on the exterior of the unit, near the entrance. • The Vacation Rental must not be rented or used for events (e.g., weddings, commercial activities, etc.) • Maximum occupancy shall not exceed two occupants per unit plus two occupants per bedroom. Staff noted a few issues with these requirements.The requirement for exterior signage has resulted in some unsightly postings,with some owners printing the required information on paper, placing it in a plastic sleeve or bag, and stapling it to the STR's exterior.This requirement has also conflicted with some condominium rules that limit exterior postings.To avoid some of these issues, Staff suggested the City produce the signage for Vacation Rentals and charge a signage fee to cover the costs. Also, the 30-mile limit has not been as practical, given some property owners live in relatively nearby cities but must find another contact person that is within the 30-mile radius. The City requires a special business license for the operation of a Vacation Rental or a Home stay9. Currently, there are 215 active licenses for all STRs, but only two are for Home stays. Vacation Rentals listed outside of the VROD before the adoption of the City's current regulations were grandfathered (allowed to continue to operate, regardless of the current zoning prohibition) and allowed to apply for a license.The City has approximately 30 licensed grandfathered Vacation Rentals, which will expire no later than 202210 Licenses must be renewed every year, but the Vacation Rental or Home Stay license automatically renews upon payment of the business license tax renewal fee and all required Transient Occupancy Tax (TOT) remittance documents. First time applicants pay a fee of$315,with a $105 renewal fee. Staff suggested adding a change fee to cover Staff costs of making minor changes to licenses (e.g., owners changing STIR management companies). 8 Elise Dale,City of Carpinteria Short-Term Rental (STR) Program,teleconference,July 19,2019. 9 Licenses run with the applicant, not with the property. 'o ibid. 983 OSOS STREET,SAN LUIS OBISPO,CA 93401 1 (805)595 1345 1 LISAWISECONSULTING.COM i 8 424 TOT is collected quarterly, which has resulted in some compliance issues for STR operators who are unaware of quarterly reporting requirements. Failure to report TOT for over 12 months results in a license revocation. If an STIR fails to remit any TOT in over 24 months, the license expires. Staff noted that this policy has affected grandfathered STRs most notably and has had the effect of some grandfathered STRs losing their licenses unintentionally. Staff estimated that STRs in Carpinteria generate between $400,000 and $450,000 per year in TOT, collected from both legal and illegal STRs. Given landslides and fires, recent TOT totals may not reflect the normal values and obscure the effects that STRs are having on the local market for traditional lodging(e.g., hotel, motels, etc.). Collected TOT goes to the City's General Fund, while all licensing fees go to Community Developments budget. Staff noted overall, that the program is revenue positive. Community Development is responsible for enforcement of STR regulations; however, the regulations have not been aggressively enforced, and Staff patiently works with property owners to inform them of the requirements and achieve compliance. Staff estimated that approximately six notices have been mailed to noncompliant STRs, mostly as a result of complaints, and all violations have been corrected. However, Staff suggested that requiring the STR license number to appear as a watermark on photos in the STRs listing, would be helpful in identifying uncompliant STRs. The City hired a contractor to implement the regulations, including creating the required forms and "The Coastal Commission held that this processes, following its adoption. In addition to the was a model ordinance, especially for a City's STR regulations,the City has STR administrative city like Carpinteria,"said Community policies and procedures to implement the intent the STR Development Director Steve Goggia. regulations. (Sam Goldman, Carpinteria Prepares to Enact Short-Term Vacation Rental Rules, The City's STR regulations were approved by the Noozhawk.com,June 24, 2019) California Coastal Commission (CCC) in December 2016. Newport Beach, CA The City of Newport Beach regulates STRs to address concentrations of tourists that can cause neighborhood disturbance issues (e.g., parties, noise,trash, etc.).The Municipal Code prohibits short- term rentals in single-family zones (R-1) or on properties designated for single-family residential use (i.e., Planned Community Development Plan, Planned Residential District, or Specific Plan). STRs are allowed in higher intensity residential zones. The Coastal Zone in Newport Beach includes residential zones that allow and prohibit STRs; however,the City's STR regulations are in Municipal Code Title 5 (Business Licenses and Regulations Chapter 5.95), not in the City's Local Coastal Program (LCP)". However, STRs in existence as of June 1, 2004 and located in the R-1 Zone are"grandfathered", meaning they may continue to operate, regardless of the current zoning prohibition.The City has only revoked " While the Coastal Commission reviewed a few basic provisions in the City's LCP related to STRs,the Coastal Commission has not reviewed the City's STR regulations(Chapter 5.95)since they are not in the LCP aim Campbell, Deputy Community Development Director, City of Newport Beach,email correspondence,July 2019). 983 OSOS STREET,SAN LUIS OBISPO,CA 93401 1 (805)595 1345 1 LISAWISECONSULTING.COM 19 425 the right to operate one of these R-1 Zone STRs upon demolition of the structure in which a grandfathered STR was operating; however, Staff has discussed the possibility of revoking this right if STR operation is discontinued for a certain period.An estimated 200 grandfathered R-1 Zone STRs exist12. STR requirements include the provision of a 24-hour local contact who is available to respond to complaints, limiting the number of guests in accordance with the Building Code, and providing City rules and regulations to guests, including the number and location of on-site parking spaces and trash location and pick-up information. Hosts must use"best efforts"to ensure guests do not create unreasonable disturbances, including posting conditions of the STR Permit in a conspicuous place within the unit. STR hosts are required to register with a business license, and subsequently complete a Short-Term Lodging Permit Application and Transient Occupancy Tax Registration form (STR Permit/TOT registration). A$103 fee is required with the STR Permit/TOT registration, and the annual business license tax is $174 for residentially based businesses. If an STIR operator is different from the property owner, and that operator is collecting TOT on behalf of the owner,the operator's information must be provided on the application form. If the information is complete and accurate, processing will take only 5 to 10 minutes, although there is frequently further clarification needed13. Annual STR Permit/TOT registration renewal requires an up-to-date business license.The STR Permit/TOT registration is non- transferable (i.e., a new owner would need to reapply). In July 2019, the total number of licensed and permitted STRs in Newport Beach was 1,451, up from May 2018 total of 1,368, an increase of 6.1% in just over a year. STR operators or agents are required to submit TOT forms quarterly, and the property owner is required to sign the TOT form annually, even if no TOT is due to the City. According to Staff, this requirement seems to cause confusion to property owners, and Staff spends time each year enforcing this requirement.The City has no arrangement with any online hosting platform to collect and remit TOT. The TOT rate is 10%, and the City collects TOT from illegally operating STRs, including the payment of back taxes when an illegal or noncompliant STR is identified.The amount of back taxes is determined by the statement of rental history provided by the STR operator,which may be provided in response to City correspondence identifying that the STR operator can be audited by the City. If no TOT is collected for more than three years an STR Permit is revoked. Since STR regulations reside in Business License and Zoning titles of the Code, both the City's Revenue Division staff and Community Development Department Code Enforcement Staff are charged with enforcement. Currently, the City's Revenue Division has one part-time employee processing STR Permit/TOT registrations and issuing notices to comply with STR Permit and business license registration requirements. When the business license registration is submitted, the City cross references the address with the City's GIS (mapping system)to verify the STR is located within an allowed zone.Additionally, the City contracts with a third party to verify online STR listings are valid based on the business license and STR Permit/TOT registration numbers posted in the listing, or lack thereof(it is required to be included 12 Ellen Brenan, Revenue Department, City of Newport Beach,teleconference July 2019. 3 ibid. 983 OSOS STREET,SAN LUIS OBISPO,CA 93401 1 (805)595 1345 1 LISAWISECONSULTING.COM ; 10 426 in the advertisement)14. The Community Development Department's Code Enforcement Staff is tasked with issuing citations to STRs located in the R-1 Zone, where STRs are prohibited.There is no Community Development Department Code Enforcement Staff dedicated solely to STR compliance. According to the Revenue Division, STR revenues (permit fees,TOT,fines) have outpaced the cost of STR program staffing; however,these revenues are deposited into the General Fund, not set aside for specific purposes. The split of enforcement responsibilities was cited by the City as a source of confusion. Furthermore, Code Enforcement Staff cited residents' reluctance to report complaints as a challenge in enforcing regulations and that officers are typically not available when complaints are most likely to be reported (evenings and weekends). Staff also identified a need for clearer distinction between revocable offensives and minor violations to enable effective enforcement. Staff recommended establishing higher fines for illegal STRs15 and requiring the posting of 24-hour contact information on the outside of STRs as potential ways to improve compliance. Lastly, Code Enforcement Staff recommended the STR Permit/TOT registration should be valid for one-year to generate annual permit revenue that covers enforcement costs. It is estimated that a couple hundred STIR code enforcement cases are opened each year in Newport Beach. Pismo Beach, CA The City of Pismo Beach adopted STR regulations to balance a growing number of complaints from residents and direction from the California Coastal Commission (CCC). According to City Staff, complaints were concentrated in a small number of single-family neighborhoods where residents were experiencing incompatibility issues and nuisance behaviors associated with STRs. However,the CCC rejected an earlier City proposal that did not allow vacation rentals in single-family residential areas.To address these concerns, two types of STRs, "Short-term Rentals", and "Homestays", related to single- family zones were defined in the Zoning Code: • "Short-term rental"or "STR"- The rental of a detached single-family residence or accessory dwelling unit for less than 30 consecutive days where the primary residence is not being concurrently occupied by the owner. • "Homestay"-An owner-occupied, detached single-family residence where bedrooms are rented for compensation for less than 30 consecutive days. In cases where an accessory dwelling unit(ADU) is located onsite, rental of the ADU for less than 30 consecutive days shall qualify as a homestay contingent upon the single-family residence being concurrently occupied by the property owner during the short-term rental period, or if the single-family residence is rented, upon the ADU being concurrently occupied by the property owner. The key distinction between these two STR types is that Short-term Rentals are rentals without the owner present, and Homestays are rentals with the owner on-site. 14 Host Compliance provides the City with data on active listings. 15 Current fines range from $100 to $3,000 depending on the violation (City of Newport Beach,2019). 983 OSOS STREET,SAN LUIS OBISPO,CA 93401 I (805)595 1345 I LISAWISECONSULTING.COM 11 427 The STR regulations apply to Short-term Rentals and Homestays in the Single-Family Low Density Residential (RSL), Single-Family Medium Density Residential (RSM), and Open Space (OS) zones16. Figure 3 shows the zoning of the north area of the City,which is almost entirely within the Coastal Zone. Figure 3: Zoning Map(North), Pismo Beach (1998 Zoning Code) RSL .,. ,e 1 w.. •••�. � OS OS f �.I „aRSL f % f •�,• SL RSM ­T 6 •, � RSM � OS CRS 7 7 4 R RSL -RR R�7 # OS PAC ft OCEAN OS RSL S 0 RR•L RR-H OS _ CRS,�-.. OS [ + t RSM CRS RR-L CRS RSM CC CR a OS OS 0S RSM OS OS OCE4N PACIFIC T. PlSMO REACH 7,., PF i i FT Ji i f l i t l S T a u RSM ."• RSM - � "' � a o� OS > m .1• w+uir..•..�•• Vacation rentals, Short-term Rentals, or equivalent uses are allowed in the Downtown Core and other non-residential zones and are not the subject of the STR Ordinance17. STRs and Homestays are allowed only at single-family properties that are the primary residence of the property owner.A"primary residence" is defined as"the dwelling owned and occupied as the property owner's principal place of residence, where the owner lives more than 50% of the year(i.e., 183 days or more per year). Short-terms Rentals are limited to a maximum of 182 rental days per year(less than half t6 The corresponding zones in the 1983 Zoning Code(Coastal Zone)are single family residential(R-1), planned residential(P-R),and open space-natural resources protection(0-S-1).Single-family homes may be developed under limited circumstances in the O-S-1 Zone and may be allowed in the OS Zone with a Conditional Use Permit. 17 STR regulations are Chapter 17.09 of the 1998 Zoning Code(outside Coastal Zone)and Chapter 17.113 of the 1983 Zoning Code(Coastal Zone).Vacation Rentals are addressed in Chapter 5.22 of the Municipal Code. Short-term rentals, homestays,and vacation rentals are listed in the Zoning Code use tables. 983 OSOS STREET,SAN LUIS OBISPO,CA 93401 ( (805)595 1345 I LISAWISECONSULTING.COM 12 428 the year). There is no limit on rental days for Homestays, which include Accessory Dwelling Units (ADUs) when the owner occupies the main house concurrently(i.e., owner is on-site). The City's regulations require the acknowledgement of rules and good neighbor policy by the STR property owner and responsible party, and the placement of a good neighbor brochure within the rental unit. The regulations also limit the number of overnight occupants and visitors within Short-term Rentals and Homestays. The maximum number of overnight occupants is limited to two people per bedroom, plus two. The number of visitors to Short-term Rentals and Homestays cannot exceed the number of overnight occupants (i.e., a 2-bedroom Short-term Rental would allow up to six occupants and an additional six visitors).Visitors are not allowed between 11:00 p.m. and 7:00 a.m. Required parking is also based on the number of bedrooms provided for rent, at the following rates: • 1 bedroom - 1 space • 2 bedrooms - 2 spaces • 3 to 4 bedrooms - 3 spaces • 5 or more bedrooms -4 spaces Noise is limited to a level that may not"unreasonably interfere with the quiet use and enjoyment of any other residence or business in the area."Any noise contained after 10:00 p.m. and before 7 a.m. shall be contained within the unit. Trash is not allowed to be stored within public view, except in proper containers for the purposes of collection. Proof of primary residency status must be provided on a yearly basis (e.g., homeowner's income tax return or other documentation deemed acceptable by the City showing the dwelling is the owner's principal residence for tax purposes). A corporation, limited liability company, partnership, or other business or commercial entity is not allowed to claim a property as a primary residence. Each Short-term Rental or Homestay must obtain an STR Permit from the City. Applicants must submit a site plan showing the number of bedrooms and parking spaces as part of the license application. An on- site inspection will confirm the site plan and applicable safety standards. Staff noted that the City has had issues with applicants attempting to list converted garages as bedrooms, and that availability of parking often limits the number of bedrooms that may be listed. As part of the permitting process,the City requires that property owners within 300 feet be provided notice of the intent to operate with contact information for the property owner and responsible party(i.e., person responsible for compliance with the City's Code). Additionally, Short-term Rentals and Homestays are required to obtain a Business License and Transient Occupancy(TOT) Certificate. The STR Permit, Business License, and TOT Certificate are issued as a packet at the conclusion of City review, and overall processing time is approximately one month. The STR Permit fee is $399, and these Permits do not expire except when the property owner changes. Business Licenses carry a separate $30 fee and a $6 renewal fee (annual renewal is required). The City's TOT rate is 14%. Revenue from STR taxes, fees, and fines goes into the City's General Fund. Despite the STR program being new, Staff estimates the program will be revenue positive, since TOT is now being collected from STRs (the City did not collect TOT from illegal STRs).The City employs one part-time employee in Code 983 OSOS STREET,SAN LUIS OBISPO,CA 93401 1 (805)595 1345 I LISAWIS€CONSULTING.COM 113 429 Enforcement dedicated to STIR enforcement. Further, the City has an agreement with an outside contractor to provide data on STRs including location across several hosting platforms to facilitate the City's enforcement efforts. The City has approved approximately 15 STIR Permits and has approximately four under review. Staff estimates that there were previously over 100 illegal STRs in Pismo Beach, but that number is likely lower now that the STIR regulations are in effect. The Code includes a three strikes policy,where an STR Permit may be revoked following three instances of being non-responsive to complaints or significant violations in a 24-month period. The City issues fines to enforce its regulations, which may be levied at up to $2,000 per day". As part of its enforcement strategy the City does not collect TOT from any illegal STRs, with Staff stating they do not want to give unpermitted STRs de facto approval by collecting the tax. The California Coastal Commission (CCC) ratified the City's STIR regulations in July 2019. As previously mentioned,the CCC rejected the City's prior regulations that did not allow vacation rentals in single- family areas along the coast. After the current regulations were submitted to CCC, the CCC review and approval process was about three months. '$ Mike Gruver, City of Pismo Beach,teleconference,July 26,2019. 983 OSOS STREET,SAN LUIS OBISPO,CA 93401 1 (805)595 1345 1 LISAWISECONSULTING.COM 11 14 430 •t .,sx. a - r „ SHORT-TERM RENTAL STUDY SESSION City of Huntington Beach September 3, 2019 g . d► 46 fit„ � ✓M I AGENDA 1 Background 2 Huntington Beach Context 3 Short-Term Rentals in Huntington Beach 4 Case Studies 5 Discussion 432 The Sharing Economy • Peer-to-peer consumer market for goods and services • • Result of technological advancements, primarily the internet, that allow for easy transactions • Impacting the broader economy: transportation, ° HomeAway� financial services, lodging • Sharing economy profits estimated to grow from TaskRabbit $15 billion in 2014 to $335 billion by 2025 s; • Airbnb offers more rooms than the largest hotel t . companies . KI KSTANTER 433 3 What is a Short-Term Rental Potential Advantages Potential Disadvantages • Supplemental income Increased competition for housing • New lodging opportunities • Change in neighborhood • City revenue character • Increase utilization of un-used Enforcement challenges rooms or homes HUNTINGTON BEACH CONTEXT Huntington BeachContext Huntington Beach Housing Stock by Unit Type Housing Type by Units: 2018 NumberHousing Type Most units are single family homes Units Total Units or in complexes that contain five or Single Family Detached 39,126 47.9 % more units Single Family Attached 9,464 11.6 % • About a 60/40 split between Multi-family: 2 to 4 units 9,66S 11.8 % owner and renter-occupied units Multi-family: S units plus 20,314 24.9 % Mobile Home 3,087 3.8 % Source:California Department of Finance,E-S, 2018 SCAG Local Profiles Report 2019 436 Huntington BeachContext Units by Number of Bedrooms (2017) 100% • 59% are two- or three- bedroom units 90% 80% • 11% are one-bedroom units 70% 60% • Owner-occupied units typically have more bedrooms 50% 40% • Renter-occupied units are more 30% diverse, but have higher rates of one- 20% bedroom and studio units 10% 0% Owner Occupied Renter Occupied ■No bedroom ■ 1 bedroom ■2 or 3 bedrooms 4 or more bedrooms Source.U.S. Census Bureau,2012-2017.American Community Survey, 5-year Estimate. Table B25042 437 Huntington Beach Context Residential Vacancy Rates (2010-2018) 5.5% 5.4% • Huntington Beach has a lower vacancy rate 5.3% than Orange County 5.2% 5.1% • Vacancy rates have remained stable over 5.0% the past five years 4.9% 4.8% 4.7% 2010 2011 2012 2013 2014 2015 2016 2017 2018 0 Huntington Beach --*—Orange County Source;California Department of Finance, E-5,2018 438 8 Huntington BeachContext Vacancy Status by Type (2010 - 2017) 4,500 ■Otheruacant 4,000 • The number of vacant units ■For sale only 3,500 increased from 2010 to 2017 (up e2 3,000 12% or 473 units) ■Rented,not occupied c w 2,500 0 ■For rent E 2000 • "For seasonal, recreational, or Sold,not occasional use" increased 72% (857 occupied 1,500 units) n For seasonal, 1,000 recreational, or occasional use 500 0 2010 2017 Source.U.S. Census Bureau, 2013-2017,2006-2010,American Community Survey, 5-year Estimates, DP04, Table B25004 439 CC, SHORT-TERM RENTALS IN HUNTINGTON BEACH Short-Term Rentals in Huntington • C, re show Polyg f Stww Polygon+2wm 1�.=� c.��► +I.e m_ �zD Garden '*TripAdvisor-owned (e.g., FlipKey) 1YY.V� 9 " -'r WORi0 Priceline-owned 821 active rental units Westminster • Other [S NWS Seat Beach (1% of housing stock) 7 ►ousing Senrrcecen 1� � Expedia-owned (e.g., HomeAway) �dway city •Airbnb Fountain 5 ; Valley Ol}C#1 COAS7 METRO ss John ++wjr to , a Airport 1rvir + .. ., jrange Coast '`'�r College Costa Mesa University Santa Ana of California wrsrs�r,E Heights Irvin COSTA MESA 4 Q r 4 T Newport + Beach �wrwwOPT t J CENTER San In p.. PkI Gocgle NjIb,_,j:Mapdwst2ot4 2km■ TumsofUw Source:Host Compliance 441 11 Short-Term Rentals in Huntington Total Listings by Listing Site 700 641 600 500 400 300 200 163 100 100 . 45 28 13 2 1 1 0 rr■■� JQ' ��� � a a Source Host Compliance Airbnb % ' : O 6% 442 12 Short-Term Rentals in Huntington Beach Single-Family listings - 591 Listing Types Single-Family housing listings1 1 % 1f Multi-Family housing stock) 0 Single Family[72%] 0 Partial Home[27%] Multi Family[28%] 0 Entire Home[73%] 0 Unknown[0%] 0 Unknown[0%] Partial home listings - 222 Source,-Host Compliance Entire 1listings • • 443 13 Short-Term Rentals in Huntington Minimum Nights require minimum length • between - - n nights: 0 49% 1-2 nights • 1-7 nights[81%] 0 8-14 nights[1%1 0 17% • • 15-21 nights[1%1 nights • 22-29 nights[2%) • 30+ nights[14%] I % nights 4-7• Not specified by Host[0%] Source.Host Compliance 444 14 Short-Term Rentals in Huntin ton ow Nightly Rate 29% listed for no more than $100/night %. 24% listed for $100 - $200/night 61 t �� r� 39% listed for more than provided $200/night Short-Term Rentals in Huntin ton g Estimated Annual Rental 0% estimated to make no more Revenue to the Property Owner than $10,000/year in revenue 12% estimated to make $25,000+/year in revenue M . ' i ' 38% do not have adequate data to � S; STIestimate revenue* ■ listed in • past 12 months with no bookings Short-Term Rentals in Huntington Estimated Annual Nights Rented Active Rental Units 0 Active Entire Home Rental Units 309 1-90 Nights/Year 91-180 Nights/Year 300 293 Active Rental Units 152 Active Rental Units (206 Entire Home Rentals) (101 Entire Home Rentals) 210 200 129 � 100 84 70 66 71 67 47 44 � � 21 42 18 p in .0 0. M. 0. . 0 M 0 nights* 1-30 nights 31-60 nights 61-90 nights 91-120 nights 121-150 nights 151-180 nights 180 nights *STIR listed in the past 12 months with no bookings Source:Host Compliance 27% are estimated to 1 ' rented for more . days/year 17 Short-Term Rentals in Huntin ton g . - . 9 500 450 . ,0 350 300 250 00 150 00 76 so 25 Source. Host Compliance 19% of hosts have morethan one STR (this maybe understated) 18 CASE STUDIES 449 19 Case Studies Four case studies represent a range of STIR approaches in coastal areas • Carlsbad • Carpinteria • Newport Beach • Pismo Beach 450 Carlsbad , CA • Allowed in the Coastal Zone and La Costa Resort Area; banned outside of the Coastal Zone (cgy.r Carlsbad • Local 24-hr contact required �._ • Host must notify adjacent neighbors • Exterior sign/permit posted • Hosts must provide guests with City rules and regulations a • Special events prohibited • Max. 2 people per bedroom + 1 • Annual Permit required (no fee) 451 21 Carpinteria , CA • Vacation rentals only allowed in Overlay Zone • Home stays allowed everywhere Areas(Max No.of Vacation Rentals) Q Area A(55 units) • Vacation rentals capped within four Area B(115 units) AreaC(3°units' Overlay Zone sub-areas Q Q Area D(18 units) • Vacation rentals. ., • 24-hr contact within 30 miles °�r� Area � ,,vvv"vvv •:`Area C • Post contact info on exterior Area .:. • Notify neighbors within 100ft Vacation Rental Overlay • Special events prohibited Area Map • Max. 2 people per bedroom + 2 • Annual Permit required ($315, $ 105 renewal) 452 2� New ort Beach CA p , zonesNot allowed in single-family residential . single-family homes planned developments or specific plan areas STRs in • --family homes as of - 1 f�1r1tifill 111111 l 2004 grandfathered I I, ..�, St r Local 24-hr contact required Hosts must provide guests with City rules and f��♦��r ���� sr 1�t► p regulations ''ter r !7t1� 4'sri 'r 23 1 Annual Permit required ($ 103 fee, no 0) 1 trt� renewal fee) Pismo Beach , CA • Only allowed in single-family homes that are primary residences • Owner must reside at home 183 days or more per year • 24-hour contact person Must provide guests with City rules s. and regulations • Max. 2 people per bedroom + 2 • Parking parking spaces required per bedroom • Permit required ($399 fee) 454 24 EstimatedCase Studies Total Housing Total STRs as Percent Square Miles Population of Housing Units STRs Units Aii* Carlsbad 39 115,241 47,080 690 1.47% Carpinteria 9 13,680 5,602 Unknown Unknown Newport Beach 53 87,180 44,782 1,451 3.24% Pismo Beach 14 8,239 5,832 Unknown Unknown Huntington Beach 27 203,761 82,406 821 1.00% Source.California Department of Finance. E-5, 2019. Host Compliance, City of Carlsbad, City of Newport Beach. City of Huntington Beach 455 25 Revenue Projections • Projected Annualized Revenue - $8.2 M } • Projected TOT (at 10%) - $822K TAX • Projected TBID Revenue (at 4%) - $329K 456 ..+Cs STIR Hotel Costs VRBO.com VRBO.com Hotels.com Privalte Room Room Carlsbad $79 - $298 $46- $100 $113- $350 $95- $99 $116- $401 Carpinteria $126- $279 $91 -$207 $210-$572 Nothing listed $200- $450 Newport Beach $80- $309 $75- $143 $195- $614 Nothing listed $235- $540 Pismo Beach $174-$679 $50- $119 $122 - $399 Nothing listed $129 - $584 Huntington Beach $116- $369 $60- $150 $255- $305 $105-$178 $300- $1,000 Based on daily rates for 2 night stay between 9/6/19—9/8/19 for 2 guests 457 ,� F DISCUSSION RESEARCH SUMMARY MEMO SHORT-TERM RENTAL RESEARCH AND ANALYSIS CITY OF HUNTINGTON BEACH To: City of Huntington Beach From: Lisa Wise Consulting, Inc. (LWC) Date: February 10, 2020 INTRODUCTION On September 3, 2019, LWC presented short-term rental (STR)data and case studies to the Huntington Beach City Council at a Study Session. During this Study Session, City Council requested additional information on selected topics.This memo summarizes the additional research and analysis conducted by LWC as directed by City staff in response to the Study Session requests. RESEARCH SUMMARY 1. How the case study cities' (as applicable) or other coastal cities define a "hosted"stay. For example, is a 4-plex where the owner lives in one unit and rents the other three units on a short-term basis considered "hosted"?What about a 9-plex? Etc. Table 1:"Hosted"Stay Definition Case Studies • Not applicable; does not distinguish between hosted and un-hosted Carlsbad STRs. • "Home stay" is defined as a type of short-term rental where the owner remains in the residential unit during the entire rental period.A home stay does not include the hosting of personal guests, home exchanges or vacation rentals. Carpinteria . An accessory dwelling unit(ADU)would have to be occupied by the owner(or member of the owner's family)to be used as a home stay.An ADU that is attached and has a pass-through interior door to the main unit where the owner is residing may also be operated as a home stay. Case study cities: Carlsbad,Carpinteria, Newport Beach,and Pismo Beach. 983 OSOS STREET,SAN LUIS OBISPO,CA 93401 (805)5951345! LISAWISECONSULTING.COM 1 459 Table 1:"Hosted"Stay Definition • Requirements for apartment complexes (i.e., multi-unit complexes with a single Assessor Parcel Number(APN)): o For vacation rentals, each unit must have its own license. o For home stays, only the owner of the complex who lives on-site may rent out a portion of his/her personal apartment. • Not applicable; does not distinguish between hosted and un-hosted Newport Beach STRs. • "Homestay" is defined as an owner-occupied, detached single-family residence where bedrooms are rented for compensation for less than 30 consecutive days. In cases where an ADU is located on-site, rental of the ADU for less than 30 consecutive days shall qualify as a homestay contingent upon the single-family residence being concurrently occupied by the property owner during the short-term rental period, or if the Pismo Beach single-family residence is rented, upon the ADU being concurrently occupied by the property owner. • Vacation rentals are allowed in the downtown zoning districts in all housing types(e.g., single-family and multi-family), but STRs and homestays are not allowed in multi-family housing outside of the downtown zoning districts because of noise(i.e., shared walls)and parking concernsz. Other Jurisdictions • A"hosted stay'means a short-term rental activity whereby the host remains on-site and resides in a habitable dwelling unit or portion thereof throughout the guest's stay(except during daytime and/or work hours). Long Beach' . Does not regulate by hosted vs. un-hosted, but rather by primary residence vs. non-primary residence(see#4). o A STR operator may not operate more than 1 primary residence STIR and more than 2 non-primary residence STRs. z Mike Gruver, City of Pismo Beach, February 4,2020. 3 The City of Long Beach is in the process of adopting short-term rental regulations.A Council hearing was held on January 21,2020,and the draft ordinance is being revised based on Council direction at that hearing.This memo summarizes relevant points from the draft ordinance and Council direction. 983 OSOS STREET,SAN LUIS OBISPO,CA 93401 (805)595 1345 LISAWISECONSULTING.COM 2 460 Table 1:"Hosted"Stay Definition o For properties with 2 existing legally permitted dwelling units (e.g., single-family dwelling and ADU, or a duplex), "primary residence" refers to the parcel/both units on the parcel (i.e., if the STR operator resides in one unit, the other unit may be operated as a STR under the primary residence STR category). o Non-primary residence STRs in multi-family developments are limited based on a sliding scale: ■ 1 allowed in developments of 10 or fewer units ■ 10% of total units in developments of 11 to 50 units • 12% of total units in developments of 51 to 100 units ■ 15% of total units in developments of 101 units or more. 983 OSOS STREET,SAN LUIS OBISPO,CA 93401 (805)595 1345 LISAWISECONSULTING.COM 1 3 461 3. Provide the estimated annual mean and median estimated nights occupied for STRs in Huntington Beach. LWC will provide based on STR data collected by Host Compliance during Phase 1. Using data collected by Host Compliance, the mean estimated nights an STR in Huntington Beach was occupied between June 2018 and June 2019 was 48 nights, and the median estimated nights occupied was 13 nights. This negative skew reflects a substantial number of STR units listed in the past 12 months with no bookings (see"0 nights" in the chart below). Considering new STR listings during those 12 months, the estimated annualized nights occupied is a mean of 55 nights and median of 22 nights per year. Estimated Annual Nights Rented 4 Active Rental units Active Entire Home Rental units 400 309 300 220 200 3fl IDD % 30 66 47 11 49 � 67 m 27 m49 ■ 16 0 n9% 1-30 nights 31-60 nights 61-90 nights 91.120 nights 121.150 nights 151.180 nights 180 nights Source:Host Compliance 4. Provide additional details on STR enforcement protocols from the case study cities or other coastal cities, specifically on how after-hours calls are handled (e.g., 24-hour hotline, weekend/evening enforcement officer, etc.). Table 2:Enforcement Protocols Case Studies • A contact must be available 24 hours per day, 7 days a week to respond within 45 minutes to complaints regarding the conditions, operation, or conduct of occupants of the STR. • Permit must be posted on the exterior of the unit within plain view of the Carlsbad general public with the 24-hour contact's phone number(only required to be posted during rental activity). • STR owners must prepare and distribute to adjacent neighbors and STR renters an "Impact Response Plan", which includes the phone number for the owner or agent. 983 OSOS STREET,SAN LUIS OBISPO,CA 93401 (805)595 1345 LISAWISECONSULTING.COM 4 462 Table 2:Enforcement Protocols • A 24-hr contact must be within 30 miles of the vacation rental. • The owner or property manager's contact information must be posted on the exterior of the unit, near the entrance, during rental activity. • Vacation rentals with no on-site manager must provide notice with the owner/property manager's contact information to properties within 100 Carpinteria feet. • The City maintains an online list of licensed STIR properties with contact information. If issues are not resolved when the complainant contacts the owner/property manager,they are directed to contact the City (Community Development Staff). • A local 24-hr contact must be available 24 hours per day, 7 days a week to respond to complaints and use"best efforts"to ensure guests do not create unreasonable disturbances, including posting conditions of the STR Permit in a conspicuous place within the unit. Newport Beach • City staff recommended requiring the posting of 24-hour contact information on the outside of STRs as a potential way to improve compliance since Code Enforcement staff are typically not available when complaints are most likely to be reported (evenings and weekends);those calls are directed to the Police Department. • A 24-hr contact must be available via telephone 24 hours per day,7 days a week,to respond to complaints.The contact person/entity shall reside or maintain a physical business address within 25 miles of the vacation rental (a post office box or private mail drop address does not comply). Pismo Beach • The 24-hr contact's information must be provided to all short-term renters and neighbors within 300 feet of the STR or homestay. • One part-time Code Enforcement officer is dedicated to STR enforcement.An outside contractor provides STIR data to facilitate the City's enforcement efforts. Other Jurisdictions • A contact must be available 24 hours per day, 7 days a week for Long Beach4 responding within 1-hour to complaints regarding the condition, 4 Ibid. 983 OSOS STREET,SAN LUIS OBISPO,CA 93401 (805)595 1345 LISAWISECONSULTING.COM 5 463 Table 2:Enforcement Protocols operation, or conduct of the STR or its occupants and taking any remedial action necessary to resolve such complaints. • City anticipates working with a third-party compliance platform that offers a staffed 24-hour hotline to assist with nuisance management. 983 OSOS STREET,SAN LUIS OBISPO,CA 93401 1 (805)595 1345 1 LISAWISECONSULTING.COM 6 464 5. Describe how the case study cities (as applicable) or other coastal cities implement and enforce primary resident requirements(e.g., Pismo Beach's requirement to reside at the home at least 183 days per year). Table 3:Primary Resident Requirement Implementation Case Studies Carlsbad • Not applicable; does not regulate by primary resident. Carpinteria • Not applicable; does not regulate by primary resident. Newport Beach • Not applicable; does not regulate by primary resident. "Primary residence" means the dwelling owned and occupied as the property owner's principal place of residence,where the owner lives more than 50% of the year(183 days or more per year). A primary residence can't be rented un-hosted more than 182 days per year. • The City reviews the homeowner's income tax return or other documentation deemed acceptable by the City showing the dwelling is Pismo Beach the owner's principal residence for tax purposes. Proof of primary residence status must be provided to the City on a yearly basis. The property owner(s) must be an individual owner(s)or trustee(s), and not a corporation, limited liability company, partnership, or other business or commercial entity. Other Jurisdictions "Primary residence" means a person's permanent place of residence or usual place of return for housing.A person must reside in the primary residence for a minimum of 275 days per year.A primary residence can't be rented un-hosted more than 90 days per year. Proof of primary residence is documented by at least 2 of the following: Long Beach' o Tax documents showing the residential unit as the person's residence o Motor vehicle registration o Driver's license o Voter registration 5 Ibid. 983 OSOS STREET,SAN LUIS OBISPO,CA 93401 (805)595 1345 LISAWISECONSULTING.COM 7 465 Table 3:Primary Resident Requirement Implementation o Utility bill • The STR permit must be renewed annually. • The STR host must live in the unit for at least 275 days per year.A STR can't be rented un-hosted more than 90 days per year. • Proof of residency is required through the submittal of 2 of the following documents to the City(if the resident's current identification card shows the address of the STR unit, then only 1 of the following documents is required): o Vehicle Registration Card from the California DMV with the address of the STR unit. San Francisco o Proof of a Homeowner's Tax Exemption (accepted for property that is either a single-family dwelling or condominium). o Proof of car insurance with the address of the STR unit. o Original utility bill, issued from either: SFPUC(water), Recology (trash), or PG&E(electric/gas), including the payment stub showing the address of the STR unit. o Voter Registration Card or Certificate with the address of the STR unit. • The STR permit must be renewed every 2 years. 6. Provide projections of how the STR market in Huntington Beach might grow over time. Between March 2016 and March 2019,the short-term rental market in North American jurisdictions with 100 or more STR listings grew 58%6. Since STRs are currently banned in Huntington Beach, this rate of growth may or may not be appropriate to assume depending on how the City decides to regulate STRs. However, even with the current ban, 821 STRs exist in Huntington Beach as of June 2019. Considering the STR ban, a more modest three-year growth rate of 25%would result in approximately 1,030 STRs in 2022, adding an average of 70 STRs per year. During the development of framework alternatives for potential STR regulation, STR projections will be prepared to reflect each alternative, providing an understanding of how different regulations could affect the number of projected STRs in Huntington Beach. 6 Host Compliance proprietary data. 983 OSOS STREET,SAN LUIS OBISPO,CA 93401 (805)595 1345 LISAWISECONSULTING.COM 8 466 7. Determine existence/extent of code enforcement services available to an STR owner/operator, and if the City can require those"qualified"code enforcement services to be secured prior to STR operations. While research of various STR regulations did not yield any results of jurisdictions requiring "qualified"code enforcement services to be secured prior to STR operations,vacation rental management companies offer services to STR hosts that help ensure regulations are adhered to. Vacation rental companies can provide guest screening, liability protection, and a local property manager(e.g.,Vacasa7). Vacation rental companies typically offer availability 24 hours a day, 7 days a week,to answer phone calls and emails and address any issues. In addition, noise monitoring products and services can help detect parties, unruly guests, and other noise issues(e.g., NoiseAware8). A STR host can purchase sensors and will be alerted when noise issues arise at the property. Since most STR ordinances or municipal codes contain noise regulations, these devices can help a STR host remain in compliance with applicable noise limits. Furthermore, additional sensors can be installed that count the number of mobile devices within a home's detection range(e.g., Party Squasher9).This can alert a STR host if an unauthorized gathering/party may be occurring or if any applicable occupancy limits may be exceeded. [Note:The City may get input from City Attorney on whether these types of services can be required in an ordinance.Typically, it's up to STR owner/operator to decide exactly how to comply with City regulations(e.g., noise thresholds, etc.).] 8. Provide additional examples of parking requirements for STRs(Pismo Beach was the only case study jurisdiction that included parking ratios for STRs). Table 4:Parking Requirements Case Studies • To the greatest extent possible, occupants and guests shall utilize on- site parking and avoid parking on nearby residential streets. On-site Carlsbad parking is allowed in approved driveway,garage, and/or carport areas only. • For vacation rentals, the number of guest vehicles allowed is Carpinteria determined by the City at the time of application, taking into consideration the number of available parking spaces on the site. 7 https://www.vacasa.com/property-management 8 https://noiseaware.io/ 9 https://www.partysquasher.com/ 983 OSOS STREET,SAN LUIS OBISPO,CA 93401 (805)595 1345 LISAWISECONSULTING.COM 9 467 Table 4:Parking Requirements • For home stays,the number of guest vehicles is limited to no more than one. • The owner must provide the guests with the number and location of Newport Beach on-site parking spaces. No restriction on number of vehicles by the City. • The required minimum number of parking spaces is based on the number of bedrooms provided for rent: o 1 bedroom - 1 space Pismo Beach o 2 bedrooms-2 spaces o 3 to 4 bedrooms- 3 spaces 0 5 or more bedrooms-4 spaces Other jurisdictions • Relies on occupancy limits instead of parking ratios. Occupancy is Long Beach10 limited to 2 people per bedroom, plus 2 people,with a maximum of 10 people total. • Number of vehicles must not exceed the on-site parking spaces by Santa Cruz County more than two vehicles. • All parking associated shall be entirely on-site, in the garage, driveway San Luis Obispo County or otherwise out of the roadway. Guests shall not use on-street parking. 10 Ibid. 983 OSOS STREET,SAN LUIS OBISPO,CA 93401 ' (805)595 1345 1 LISAWISECONSULTING.COM 10 468 SHORT-TERM M. RENTAL ANALYSIS CITY OF HUNTINGTON BEACH JULY 1 , 2020 Revised September 15 ri . P y 4_ v 983 OSOS STREET,SAN LUIS OBISPO,CA 934011(805)59513451 LISAWISECONSULTING.COM 1 470 TABLE OF r CURRENT STATUS OFSHORT-TERM RENTALS IN HUNTIHGTON BEACH ......... 1 POTENTIAL f RAMEWORKSHORT-TERM RENTAL REGULATIONS ................. 9 POTENTIAL REVENUE FROM SHORT-TERM RENTAL REGULATIONS ............. 14 CURRENT STATUS OF S 1®TERM RENTALSI HUNTINGTON BEACH INTRODUCTION The recent rise of the sharing economy, particularly the significant growth in short-term rentals (STRs), presents opportunities and challenges for A "short-term rental"most commonly refers communities and lawmakers. While the rise of STRs to a furnished rental property rented for presents some consistency in policy challenges fewer than 30 consecutive days. across jurisdictions, a range of regulatory responses can be leveraged and instituted to address specific local issues within Huntington Beach.This report analysis provides an overview of the size and distribution of STR units in the City of Huntington Beach and lays out the groundwork to address the specific STR issues within the City.The intent of this assignment was to provide stakeholders with a range of options in the form of a framework analysis to evaluate possible approaches for managing STR units in Huntington Beach. The data in this analysis was provided by Host Compliance, an online service that tracks the STR industry by looking at unit advertisements and booking information across all of the major STR rental platforms such as Airbnb, VRBO, and Booking.com. This information allows for a better understanding of the size, extent and the levels of economic activity associated with the STR sector in Huntington Beach. This data is the basis for three recommended STR regulatory framework alternatives that the City may choose to implement in order to limit the potential disadvantages of a sharing economy. Each alternative includes the following: Overview of regulatory framework. Estimated number of existing STRs that would be regulated under the regulatory framework. Estimated number of STRs that would be permitted under the regulatory framework. Projected number of STRs under the regulatory framework and of which type (e.g., primary residence vs. vacation rental, hosted vs. un-hosted). Estimated City revenue from STRs (TOT and TBID) under the regulatory framework, which would be based on estimated average nightly stays per year and the type of STR (e.g., primary residence vs. vacation rental, hosted vs. un-hosted). Estimated City costs to implement/administer the STR regulatory framework. An overview analysis each framework alternative. The recommended STR regulatory framework alternatives described below are a result of case study analysis of four relevant STR programs, an analysis of compiled data on existing STR conditions in Huntington Beach, and stakeholder interviews to decipher high priority considerations of the community. Findings from this process can be uses to support the groundwork for a new STR Ordinance. The recommended STR regulatory framework alternatives described below are a result of case study analysis of four relevant STR programs, an analysis of compiled data on existing STR conditions in Huntington Beach, and stakeholder interviews to decipher high priority considerations of the community. Findings from this process can be uses to support the groundwork for a new STR Ordinance. 1 983 OSOS STREET,SAN LUIS OBISPO,CA 934011(805)595 1345 1 LISAWISECONSULTING.COM 472 UNITS & HOSTS Host Compliance defines a commercial listing as a listing that is estimated to be occupied at least 90 days each year (See Figure 3). Of the 867 Short-Term Rental listings in Huntington Beach, 224 listings are commercial and these represent units that are assumed to be operated as commercial enterprises by their owners. Howeever, of the 867 currently listed, 785 are considered unique active rental units weighted by the number of their listing room type, i.e., if a rental unit is listed as both Entire Home/apt and Private room, it counts as two. This leaves a difference of 82 listings which are considered not active. However, a vast majority of STRs are operated by hosts that only have one STR (See Figure 5). Meaning, at least 1/5 of hosts with one listing meets the criteria for a Commercial Listings. The data suggests the majority of STIR Owners are likely not property investors that have 3 or more properties with the sole purpose of short-term renting. Count of Units ■ Commercial Listings ■ Non-Commercial Listings Figure 1 - Count of the number of active and inactive unique Rental Listings that are commercial and non-commercial. Source:Host Compliance, LLC. Number Active Rental Units 16 3 ■ 1 ■ 2 or 3 ■ 4 to 5 more than five Figure 2- Count of Unique Active Hosts associated with number of listings. Source:Host Compliance, LLC. 983 OSOS STREET,SAN LUIS OBISPO,CA 934011(805)59513451 LISAWISECONSULTING.COM 1 2 473 OCCUPANCY Most active listings are rented for 1-30 nights, nearly double the figure for 31-60 nights. (See Figure 3 and 4). However, the data also shows that at least 108 combined units in the Downtown and Sunset Beach areas are not commercial units. The Downtown and Sunset Beach Areas see the highest rate of occupied nights, likely due to its geographical proximity to destinations. However, the Bolsa and Warner Corridors and Northeast corner of the City see a moderate-to-high rate of occupied nights (See Figure 4). This is most likely because of the lower average of nightly rate associated with these areas of the city (See section "Nightly Rates" and Figure 6). Nights Occupied 300 250 an 200 J 0 150 v E z 100 50 17 6 9 11 6 _6 13 0 22 24 22 16 ■ 12 22 0 nights 1-30 31-60 61-90 91-120 121-150 151-180 181 or more Range of Nights Occupied ■Listings in the Downtown ■Listings in Sunset Beach Neighborhood ■Remaining Listings Figure 3-Number of nights occupied by listings and listing areas.Source.Host Compliance, LLC. 3 983 OSOS STREET,SAN LUIS OBISPO,CA 934011(805)59513451 LISAWISECONSULTING.COM 1 474 s Z Westminster v%A '1.o ter Evd 4ticsim �.z,A.� �.Galr.n o •�•L..�..� ✓. .S� FAs mon+st m a tmm Pxk srA,I—Midway-C1ty - t 1 e�r>ur,Pk pF.,.,. —� Gotten E colhga w •.—. 50 Edty,, A:e • •� .—..—..— _ VO.1 Mi✓ sq." s" 40 %:• ..fy y FRS F'. H- •O • He ti Avc Mir.syu s. Regnnal P rd„ MW S9 e art Gi l Course W am er-A.e ty,•: wrilaln • - Valley '�• �• - p '�• t .�_• .•.. •� I 1a,e, n p cu reri � • O`- ;' 0 • ,ti —• P O O , O N .�. Sources:Esri,HERE,Garmin,Intermap,increment P Corp-IGEBCO, 0 0.75 1.5 3 Miles USGS,FAO,NPS,NRCAN,GeoBase,IGN,Kadaster NIL,Ordnance �I I 1 1 1 1 1 11 1 I I I I I Survey,Esri Japan,METI,Esri China(Hong Kong),(c)OpenStreetAilap contributors,and the GIS User Community Legend: Nights Occupied • 0 Nights Occupied • 121 -150 Ni hts Occupied 1. City Boundary 9 p —..—.....i p 1 -30 Nights Occupied 31 -60 Nights Occupied • 151 -180 Nights Occupied • 61 -90 Nights Occupied • 180 plus Nights Occupied 91 -120 Nights Occupied 0 Figure 4-Mop of Nights Occupied for Active Listings. Source:Host Compliance, LLC. 983 OSOS STREET,SAN LUIS OBISPO,CA 934011(805)595 1345 1 LISAWISECONSULTING.COM I 4 475 NIGHTLY RATES Most active units are priced at between $50-200 per night (See Figure 5). This range of nightly rates is most concentrated in the Downtown and Sunset Beach area (see Figure 6). Roughly 9% of the listings (92 listings) do not report their nightly rate and are listed as 'unknown'. In addition, the $200+ nightly rate ranges are also mostly concentrated in the same areas of the City (See Figure 6). Mostly likely due to its proximity to the Beach and other destinations, the Downtown and Sunset Beach areas also see the highest annual revenues. Nevertheless, the Bolsa and Warner Corridors and Northeast Corner of the City see a productive annual revenue most likely due to its lower nightly rate (See Figure 7). Nightly Rate 300 250 V) a-o 200 150 0 L 100 Z 50 �r 06 7 0 $0-$50 $50- $100 $100-$200 $200-$400 $400+ Unknown Range of Nightly Rate ■ Downtown ®Sunset Beach ■ Remaining Listings Figure 5-Range of Nightly Rates for Active Listings. Source:Host Compliance, LLC. 5 983OSOS STREET,SAN LUIS OBISPO,(A 934011(805)59513451 LISAWISECONSULTING.COM 1 476 z .. Nestm,-Ms Ave 'Ves'rmrns•,ptlrc SpNr WesWmter BWd '.Se s7m,ns ter Are West inster Nb l weapons m n Park �+ S"I •y •. Beach 'per• ° ° O - .Hazard Awe t •� y weshNrtp 5♦,In t;++� iAsmetiri �aalt�.rarh 0 tmorwi • v`'f :.e S.P. Are—Midway-City sr q. Q °1 r•y .gg) •81010p PI ,2 y O o• `Q Ak Fadden Are w •1....... ✓-i Ms O - b CP .P._.. �._.a�..�..a.o-.._.._. 90 Edmp • l ,,,c .� Q O a � a ° O '+.•�• -55 `P.• ' y Regeonal P. .. .._.. J 0 0 0 s 0 so 0 Z110 0— • • "`�'W--�. W�rAQdpr^^_—.-' Warner•Ar• O O _ a 00 8 1 ✓i r' Fguntain • 00 '- valley ` • I 2 •�. • • m of • �,% 0__` • l: °i i:�=Nr ri Ave % NO Q o�a0 n rg kt+W ai Baca • EIh1-lyre�M f`SM C f.3 • I o t-,a"rt s Id A. u•Q !..................... /' ® ® QS ° ° ° ._.° s.l# • HrR • C04 ._°..i Fce m 00 o,• - �� 2bo o• • ��•• 400 •i•' • _00 0 ' • 0 • • - O O m ° • F.,,., ! • re °A 9 _ *`• sc Park H:.�GCtn A %�� Sources:Esri,HERE,Garmin,Intermap,increment PGEBCO, 0 0.75 1.5 3 Miles USGS,FAO,NPS,NRCAN,GeoBase,IGN,Kadaster NL,Ordnance I I I I I I I I I Survey,Esri Japan,METI,Esri China(Hong Kong),(c)OpenStreetMap contributors,and the GIS User Community Legend: Nightly Rate Sunset Beach Downtown Rest of City City Boundary 1.......... i 0 0-$50 0 0-$50 0 0-$50 0 $51 -$100 0 $51 -$100 0 $51 -$100 • $101 -$200 • $101 -$200 • $101 -$200 • $201 -$400 • $201 -$400 • $201 -$400 • $401 + • $401 + • $401 + Figure 6-Map of Nightly Rates for Active Listings.Source:Host Compliance, LLC. 983 OSOS STREET,SAN LUIS OBISPO,CA 934011(805)595 1345 1 LISAWISECONSULTING.COM 6 477 'A't,'M A;� Ne9stnn, te,HL'C1 vVeStm InStet vW,%Immster Bf,d —stmimter Awe 000wvra'_".tet nn�nn @ L. • O p !O c Ha4wd A- t' ✓ Sk yla t>RC me11a1 .. m �lD—h saA, MIdway_Clty mre tart. -4 1 _ - p Atfaddcr,A- t ": 01—._ w. 0 A^a5r 4�a1Mgr _� ;�.....�..�•i�..O gip..._.._. (2gyp Ed,ngrf a,.,. O .. � y t3,e9nna1 f O p�p O - ,Ip.:� 00 p _. t4..r a.� brew Sq- eF. �O ° ° V w � O , O ..a w ar n erA,,-A— coo F 1 untaln % t� ° O c Palley •`• O O m O� n a .`• ,`•• O ��•.` �•• OI dtl,avr b 'v antr,l 0 0 00 6 o I • :r r,.carat ex a - EUIs-Ave—± ••` '� Pan ° ' t •��• f..1 O O'J f 80 c O � Ze° ° o •° Q - ° ° ° 00 = 00 O O O CD •'• a N '�••,, Sources:Esri,HERE,Garmin,Intermap,increment P Corp`.1,GEBCO, 0 0.75 1.5 3 Miles USGS,FAO,NPS,NRCAN,GeoBase,IGN,Kadaster NL,Ordnance I I I I I I I I Survey,Esri Japan,METI,Esri China(Hong Kong),(c)OpenStreetNFap contributors,and the GIS User Community Legend: Annual Revenue 0 0-$5,000 • r._.._.._.� City Boundary $50,001 -$75,000 1.......... I O $5,001 -$15,000 0 $15,001 -$30,000 0 $75,001 + • $30,001 -$50,000 Figure 7-Map of Annual Revenue for Active Listings.Source:Host Compliance, LLC. 7 983 OSOS STREET,SAN LUIS OBISPO,CA 934011(805)59513451 LISAWISECONSULTING.COM 1 478 SUMMARY AND CONCLUSION Above are three market indicators that give insight into the status of short-term rentals in Huntington Beach. In reviewing any of these three market indicators, there is a consensus that the most profitable and highest desired short-term rental listings in Huntington Beach are concentrated in the Downtown and Sunset Beach areas. The analysis above can be utilized to inform and apply potential short-term rental regulations. "• , ter.._ _-..-". t t w y� AL r y vT i x .r ter. Downtown Huntington Beach. Source:surfcityusa.com 983 OSOS STREET,SAN LUIS OBISPO,CA 934011(805)59513451 LISAWISECONSULTING.COM 8 479 POTENTIAL FRAMEWORK SHO T®TER E TAL REGULATIONS MTRODUCTION Utilizing local examples from Dana Point, Long Beach, and Newport Beach. and white papers from groups such as the National Association of Realtors, Belmont Law Review, and the League of California Cities, LWC developed a table of Short-Term Rental (STR) regulatory best practices and delineated them based on overall threshold. The table was created in concert with the stakeholder feedback and case study research to tailor the potential regulations specifically for Huntington Beach. Case study analysis of Carlsbad, Carpinteria, Newport Beach, and Pismo Beach STR programs found that each City approached STR regulation differently based on unique circumstances and objectives. Clear and simple regulations are often most efficient to administer and enforce and the reliance on online hosting platforms to take a role in ensuring legality of STRs is apparent. In a series of focus groups conducted by LWC for this project , stakeholders recognized that STRs are likely to LWC conducted interviews with 22 indi- persist in the market and the City of Huntington Beach viduals who collectively represent local would benefit from a customized approach to STR stakeholders'perspective on Short Term regulation like the case study cities did. Despite a robust Rentals in Huntington Beach set of competing perspectives and concerns amongst the interview participants several broad areas of consensus emerged. Key points of agreement included: Desire for a municipal ordinance that licenses STR operations and sets performance standards. Once licensed, a robust enforcement mechanism should be put in place and should be funded via cost recovery fees on STR license holders. STR should be subject to TOT and license fees and any enforcement program should be funded via fees. Features of any future program would need to balance competing interests in the community beyond these broad areas of agreement. As described below, the regulations build upon themselves and substantially increase the amount of regulations with each threshold. Depending on compromises the City of Huntington Beach is willing to make, the city can choose from a low- to-high threshold of regulation. 9 983 OSOS STREET,SAN LUIS OBISPO,(A 934011(805)59513451 LISAWISECONSULTING.COM 1 480 LOW THRESHOLD REGULATIONS The low threshold measures generally consist of moderate oversight from the City and transparency from Short-Term Rental (STR) property owners. Overall, these 'low threshold' measures put an equal responsibility on the City to enforce existing ordinances and collect data while the STR owner must be fully transparent in their operation. There would be no cap on allowable STR listings within the City and assuming all existing would comply with the following regulations there would be approximately 867 listings that would be regulated and permitted. Howeever, of the 867 currently listed, 785 are considered unique active rental units weighted by the number of their listing room type, i.e., if a rental unit is listed as both Entire Home/apt and Private room, it counts as two. This leaves a difference of 82 listings which are considered not active. • Code Enforcement (Existing Nuisance Ordinances) The City's main oversight role would be to enforce existing nuisance laws such as noise, safety, and property maintenance as well as inspections and monitor on-street parking. Most cities already have adopted nuisance laws that address many neighbors'concerns which are enforced via the Code Enforcement Division. Issues can arise with reporting and correcting afterhours and weekend infraction due to limited enforcement options during these times. • Transient Occupancy Tax (TOT) The City would require STR owners to register their property with the City and to have them pay the Transient Occupancy Tax (TOT). A portion of the revenue generated by the TOT could be used to fund the costs associated with increased code enforcement and management of a STR program. • Local 24hr Hotline Utilizing the revenue from the TOT, the City would establish a 24-hr hotline for STR-related complaints. Complaints would be funneled to the Code Enforcement Division for investigation. • Notice to Neighbors STR owners would be required to send out a notice to all properties within 500 ft to let neighbors know that an STR is in operation at a certain address. The notice would include the STR owner's contact information and the 24hr hotline number. • Owner Contact Info The STR owner would post their contact information in a high-visibility area along the primary frontage. Neighbors would be able to contact the owners directly if any issues arise. • STR Registration STR registration is different from permitting, the City would require STR owners to register their units with the City and the City would have an internal database to know exactly how many STR's are operating and their locations. No fees or official documents would be required to operate an STR in the City. 983 OSOS STREET,SAN LUIS OBISPO,CA 934011(805)59513451 LISAWISECONSULTING.COM 10 481 MEDIUM THRESHOLD REGULATIONS The medium threshold measures build upon the ones detailed in the 'low threshold' category but with increased oversight by the City. In general, these regulations would formalize the STRs as an operating business with more financial contributions being made by the property owners. Like the low threshold regulations, the medium threshold will include no cap on allowable STR listings within the City and assuming all existing would comply with the following regulations there would be approximately 867 listings that would be regulated and permitted. However, of the 867 currently listed, 785 are considered unique active rental units weighted by the number of their listing room type, i.e., if a rental unit is listed as both Entire Home/apt and Private room, it counts as two. This leaves a difference of 82 listings which are considered not active. • Exempt Status Like many cities that regulate STRs, the City would allow for an exempt status for STRs already in operation to continue but would require new ones to apply for a use permit and pay an associated business license fee. • STR Permit & Business License Fee The permit would require an annual renewal fee, albeit a lower fee that the initial permit fee. The fees would be direct cost-capture of associated regulatory programs like the 24-hr complaint hotline and increased Code Enforcement activity, among others. • STR Permit Renewal (Annual) The City would require every permitted STR owner to renew their permit on an annual basis if the owner chooses to continue renting. • Tourism BID The other new measure would require STR owners to pay into the Tourism BID. Most stakeholders felt a contribution to the Tourism BID was crucial given STRs are an important facet of the local tourism economy. Treating of STRs more like hotels and bed & breakfasts emerged as a common theme through the stakeholder interview process. Assessing a TBID payment would require that the units that were assessed received a direct benefit from the assessment. This could take the form of training, marketing or other programs to support STR owners. HIGH THRESHOLD REGULATIONS Similar to the 'medium threshold' measures, the high threshold measures build upon the ones described in the 'low' and 'medium' sections. These measures are characterized by maximum oversight of STRs by the City and maximum transparency from the STR property owners. • On-site Owner The City would require all STR owners to either live on the same property of their STR or within a close distance (ex. 500 ft.) to ensure that the STR has proper oversight and the owner is held accountable. • Min./Max. Days of Stay Minimum and Maximum number of days of stay would be enforced to ensure predictability for surrounding neighbors and the local STR market in general. In Pismo Beach, STR's are limited to a maximum of 182 rental days per year (less than half the year). 11 983 OSOS STREET,SAN LUIS OBISPO,CA 934011(805)59513451 LISAWISECONSULTING.COM 1 482 • People per Bedroom Limit In order to prevent potential overcrowding and the negative externalities associated with that, limits would be placed on the amount of people utilizing an STR at any one time. Specifically, the new regulations would limit the amount of people allowed per bedroom. In Carlsbad and Pismo Beach occupants are limited to two people per bedroom plus two people. In Carpinteria the limitation is similar, two people per bedroom plus one additional occupant. Newport Beach uses its building code to regulate number of occupancy by vacation rental. • Cap on amount of STRs The City would establish a total number of STRs that are allowed and enforce that law through the official STR permitting process. Carpenteria limits the number of vacation rentals to a total of 218. If the City of Huntington Beach chooses to limit STR's to the geographic locations of Sunset Beach and Downtown, then the approximate number of permitted STR listings would currently be 361. The remaining existing listings would be out of compliance, approximately 787 STR listings. • Neighborhood Zones (Geographic Limitations) Neighborhood Zones' would be created to disburse the allowable amount of STRs in the City, based off the cap established above. In this case, there would be a maximum allowable amount of STRs per neighborhood. This represents the strictest possible measures; an overall cap on the number of STRs in the city and geographic limitations on how many units are allowed in certain neighborhoods . Carpentaria limits the number of vacation rentals to an overlay zone. This overlay district is made up of four areas each with different caps on the number of STR's allowed. Carlsbad allows STR's only within its Coastal Zone and La Costa Resort Area, a major attraction in the community. In Newport Beach STR's are prohibited in single-family residential zones or single-family homes in planned developments or specific plan areas and STR's are grandfathered in. In Pismo Beach STR's are only allowed in single family homes that are the owners primary residences (owner must reside at the home 183 days or more per year). SUMMARY AND CONCLUSION Above are three potential pathways for a STR regulatory framework, based on regulations of neighboring cities, best practices, and stakeholder feedback. On any of the three levels, there is a broad consensus among stakeholders for many of the measures. Any application of these thresholds would result in a stronger regulatory environment for STRs in the City of Huntington Beach. 983 OSOS STREET,SAN LUIS OBISPO,CA 934011(805)595 1345 1 LISAWISECONSULTING.COM 12 483 Summary of Threshold Regulations Potential Measures Low Medium High Code Enforcement(Existing Nuisance Ord.) X X X Notice to Neighbors X X X Owner Contact Info. X X X Local 24-hr Hotline X X X STR Registration X X X Transient Occupancy Tax (TOT) X X X Tourism BID Assessment X X X Exempt Status X STR Permit& Business License Fee X X STR Permit Renewal (Annual) X X On-site Owner X Min./Max. days of stay X People per Bedroom Limit X Cap on # of STR X Neighborhood Zones (Geographic limits) X Table 1 -Summary of Thresholds. 13 983 OSOS STREET,SAN LIIIS OBISPO,CA 934011(805)59513451 LISAWISECONSULTING.COM 1 484 POTENTIAL REVENUE FROM SHORT-TERM RENTAL REGULATIONS INTRODUCTION The potential sources of revenue from the menu of options on page 9 revolve around the collection of fees via the Tourism Business Improvement District (TBID) Assessment and the Transient Occupancy Tax (TOT). The TBID Assessment is an additional 4% assessment fee for each occupied room per night. Currently, 24 local hotels are subject to this assessment which is paid by overnight visitors. The TBID Assessment is a main source of funding for Visit Huntington Beach's Surf City USA campaign. The City of Huntington Beach is allocated roughly 1% of all TBID assessment fees. The TOT is a 10% tax applied to all of Huntington Beach's overnight hotel guests. The City is allocated all TOT revenues. Utilizing the data from Host Compliance, all STIR units were mapped along with their requisite variables including unit type As opposed to a "Hosted"unit (ex. Entire unit,single room etc.). In general,single-and shared- listings, "Entire"unit listings allows rooms are "hosted", meaning the owner of the available rental a short-term renter to occupy the unit occupies the same living space during the length of stay of whole property without the primary the renter. Entire units are generally "non-hosted" in that the occupant present. primary occupant is not present within the unit during its use as an STIR. In order to assess the potential revenue from applying TBID assessments and TOT to Short Term Rentals, the total number of each unit type and their average annual revenue were calculated against the assessment and tax percentages to provide an indication of the potential revenue generated for the City. Implications of both sources of revenue are summarized in the table below. Entire City TBID & TOT Assements TBID TBID City Share Total Annual Assessment Rate Revenue per unit per unit #of Units Revenue (City Only) Entire Unit(Avg. Estimated Annual Revenue per Unit) $23,007.23 4% $920.29 $9.02 526 $4,840.72 Private Room (Avg. Estimated Annual Revenue per Unit) $6,761.28 4% $270.45 $2.70 254 $686.95 Shared Room (Avg. Estimated Annual Revenue) $876.24 4% $35.05 $.35 5 $1.75 TOTAL $6,670.70 983 OSOS STREET,SAN LUIS OBISPO,CA 934011(805)59513451 LISAWISECONSULTING.COM 14 485 • • T City Share Revenue per of Units Assessment Rate per Unit R Unit Entire Unit(Avg. Estimated Annual Revenue) $23,007.23 10% $2,300.72 $2,300.72 526 $1,210,180.82 Private Room (Avg. Estimated Annual Revenue) $6,761.28 10% $676.13 $676.13 254 $171,763.51 Shared Room (Avg. Estimated Annual Revenue) $876.24 10% $87.62 $87.62 5 $438.12 TOTAL $1,382,355.46 Table 2-Entire City TBID&TOT assesments. Source:Host Compliance, LLC. Downtown TBID & TOT Assements Only)Total Annual TBID TBID City Share Units Revenue Assessment Rate Revenue per unit per unit Entire Unit(Avg. Estimated Annual Revenue) $23,007.23 4% $920.29 $9.20 205 $1,886.60 Private Room(Avg. Estimated Annual Revenue) $6,761.28 4% $270.45 $2.70 52 $140.63 Shared Room (Avg. Estimated Annual Revenue) $876.24 4% $35.05 $.35 6 $2.10 TOTAL $2,029.33 • • T City Share Total Annual Revenue per Units Assessment Rate Unit per Unit Revenue Entire Unit(Avg. Estimated Annual Revenue) $23,007.23 10% $2,300.72 $2,300.72 205 $471,648.42 Private Room (Avg. Estimated Annual Revenue) $6,761.28 10% $676.13 $676.13 52 $35,158.66 Shared Room (Avg. Estimated Annual Revenue) $876.24 10% $87.62 $87.62 6 $525.74 TOTAL $507,332.82 Table 3-Downtown TBID&TOT assesments. Source:Host Compliance, LLC. 15 983 OSOS STREET,SAN LUIS OBISPO,CA 934011(805)595 1345 1 LISAWISECONSULTING.COM 1 486 Sunset Beach TBID & TOT Assements w Entire Unit(Avg. Estimated Annual Revenue) $23,007.23 4% $920.29 $9.20 81 $745.43 Private Room (Avg. Estimated Annual Revenue) $6,761.28 4% $270.45 $2.70 16 $18.70 Shared Room (Avg. Estimated Annual Revenue) $876.24 4% $35.05 $.35 1 $.35 TOTAL $764.49 • TotalTOT City Share Annual Assessment per per Unit # Units Revenue nj Entire Unit(Avg. Estimated Annual Revenue) $23,007.23 10% $2,300.72 $2,300.72 81 $186,358.64 Private Room (Avg. Estimated Annual Revenue) $6,761.28 10% $676.13 $676.13 16 $10,818.05 Shared Room (Avg. Estimated Annual Revenue) $876.24 10% $87.62 $87.62 1 $87.62 TOTAL $197,264.32 Table 4-Sunset Beach TBID&TOT assesments.Source:Host Compliance, LLC. 983 OSOS STREET,SAN LUIS OBISPO,CA 934011(805)5951345 I LISAWISECONSULTING.COM 1 16 487 LOW THRESHOLD REGULATIONS Tourism Business Improvement District (TBID) - 4% Assessment • 526 STRs operating as an "Entire Unit" ■ Average estimated annual revenue, per unit: $23,007.23 ■ Estimated total annual TBID (City Share 1%) revenue: $4,840.72 • 254 STRs operating as a "Private Room" ■ Average estimated annual revenue, per room: $6,761 .28 ■ Estimated total annual TBID (City Share 1%) revenue: $686.95 • 5 STRs operating as "Shared Room" ■ Average estimated annual revenue, per room: $876.24 ■ Estimated total annual TBID (City Share 1%) revenue: $1.75 • Total Annual City TBID (City Share I%) Revenue: $6,670.70 Transient Occupancy Tax (TOT) - 10% Tax • 526 STRs operating as an "Entire Unit" ■ Average estimated annual revenue, per unit: $23,007.23 ■ Estimated annual TOT revenue: $1,210,180.82 • 254 STRs operating as a "Private Room" ■ Average estimated annual revenue, per room: $6,761.28 ■ Estimated annual TOT revenue: $171,736.51 • 5 STRs operating as "Shared Room" ■ Average estimated annual revenue, per room: $876.24 ■ Estimated annual TOT revenue: $438.12 • Estimated Total Annual City Revenue: $1,382,355.46 Total City Revenue from TBID Assessment and TOT: $1,389,026.16 17 983 OSOS STREET,SAN LUIS OBISPO,CA 934011(805)59513451 LISAWISECONSULTING.COM 1 488 MEDIUM THRESHOLD REGULATIONS Theo ne, notable difference in terms of revenue generation between the Low and Medium Threshold Regulations is the inclusion of Permit and Business License fees. These fees should be based on the cost associated with administering the new regulations, heightened Code Enforcement activities, and a third-party contract to monitor the 24hr STIR hotline. While these are financial and policy decisions for the City to make, LWC has complied a brief list of examples of permit/license fees from adjacent municipalities to give the City as sense of how other similar programs are being managed. Tourism Business Improvement District JBID) — 4% Assessment • 526 STRs operating as an "Entire Unit" ■ Average estimated annual revenue, per unit: $23,007.23 ■ Estimated total annual TBID (City Share 1%) revenue: $4,840.72 • 254 STRs operating as a "Private Room" ■ Average estimated annual revenue, per room: $6,761 .28 • Estimated total annual TBID (City Share 1%) revenue: $686.95 • 5 STRs operating as "Shared Room" ■ Average estimated annual revenue, per room: $876.24 ■ Estimated total annual TBID (City Share 19,6) revenue: $1.75 • Total Annual City TBID (City Share 1%) Revenue: $6,670.70 983 OSOS STREET,SAN LUIS OBISPO,CA 934011(805)595 1345 1 uSAWISEcoNSULTiNG.coM I 18 489 Transient Occupancy Tax (TOT) - 10% Tax • 526 STRs operating as an "Entire Unit" ■ Average estimated annual revenue, per unit: $23,007.23 ■ Estimated annual TOT revenue: $1,210,180.82 • 254 STRs operating as a "Private Room" ■ Average estimated annual revenue, per room: $6,761 .28 ■ Estimated annual TOT revenue: $171,736.51 • 5 STRs operating as "Shared Room" • Average estimated annual revenue, per room: $876.24 ■ Estimated annual TOT revenue: $438.12 • Estimated Total Annual City Revenue: $1,382,355.46 Total City Revenue from TBID Assessment and TOT: $1,389,026.16 Local Municipality Fee Table Municipality Application Type Fee City of Newport Beach STIR Permit Application $103.00 Business License $174.00 (Residential Area) $61.00 (Processing Fee) City of San Clemente Zoning Permit $140.00 Operating License $105.00 City of Dana Point STIR Permit Application $150.00 Table 5-Summary of Local Municipality Fees. Source.City of Newport Beach, City of San Clemente, &Ciry of Dana Point. 19 983 OSOS STREET,SAN LUIS OBISPO,CA 934011(805)59513451 LISAWISECONSULTING.COM 1 490 HIGH THRESHOLD REGULATIONS The main distinguishing factor of the High Threshold Regulations is the geographic limitations of STR rentals. The data shows that the majority of rentals are concentrated in the downtown and Sunset Beach neighborhoods. Utilizing existing boundaries such as Specific Plans and the Coastal Zone, LWC created a potential "zone"for each area in which STRs can operate. These "zones" were created to get a sense of how many STRs are operating in these defined areas and how much revenue could be collected if STRs were allowed to operate in just these two areas. The potential revenue is broken down below: Tourism Business Improvement District JBID) - 4% Assessment • 286 STRs operating as an "Entire Unit" within Downtown and Sunset Beach zones • Estimated total annual City TBID (City Share 1%) revenue: $2,632.03 • 68 STRs operating as a "Private Room" within Downtown and Sunset Beach zones ■ Estimated total annual City TBID (City Share 1%) revenue: $159.34 • 7 STRs operating as a "Shared Room" within Downtown and Sunset Beach zones ■ Estimated total annual City TBID (City Share 1%) revenue: $2.45 • Estimated Total Annual City Revenue: $2,793.82 Transient Occupancy Tax (TOT) - 10% Tax 286 STRs operating as an "Entire Unit" within Downtown and Sunset Beach zones ■ Estimated total annual City TOT revenue: $658,007 • 68 STRs operating as a "Private Room" within Downtown and Sunset Beach zones ■ Estimated total annual City TOT revenue: $45,976 • 7 STRs operating as a "Shared Room" within Downtown and Sunset Beach zones • Estimated total annual City TOT revenue: $613.36 • Estimated Total Annual City Revenue: $704,596.36 Estimated Total City Revenue from STRs in Downtown and Sunset Beach: $707,390.96 Additional regulations that could be utilized includes limiting STR's to "hosted" unit types or caps on the total number of units, days of use, or persons per room. However, limiting STR's geographically has the benefit of being easily regulated and monitored whereas the internal use restrictions are possible to monitor but require a much more robust regulatory structure. 983 OSOS STREET,SAN LUIS OBISPO,CA 934011(805)59513451 LISAWISECONS€ LTING.COM 1 20 491 Westminster ♦Ycsim'nsier 6lvC WP.Sim,mler Ave .`.tvlo 2. •�•�..�.' N w amain ^ .� • � •_••� � i • iX� �' J'wc�mnst �A ,. _ R M.mon•� Pah -�riac o+fin •• �_.��. Bola•-Av•—mitlway-City .taw�a.n.7. • 3,... t. <a • I t••7 .94' '-8e.h6C Pi � • ,t ,i.,. . •I .._. q E w • i. .� • _• _w •• _ • • �o� idlA qua Ct • • • • • `�a' �' • • sego i a n set Bean Z• • • •• �'�"`"• i C-90. • • • •• a .,r. • ~• �►~ • • • w�n!`A•e ♦• + I •.. Warner/-Ave •••• •i�� ,r • -b• �I I FouMaln `• • • _ _'- Valley •� •� - _• • .j1-- • •_ • •i • • i• • %as ae:lot' •• - I-I Untip A = �•til. ! _ •• M•• • • 000 �• �'•n.. • •..• •y}� t •400 s, - •N • • • _ • • •• • • • • ! �• •:fit.,, , - •�•.`• • • t N • i„a.vn •..•� Sources:Esri,HERE,Garmin,Intermap,increment eCorp'`>.GEBCO, 0 0.75 1.5 3 Miles USGS,FAO,NPS,NRCAN,GeoBase,IGN,Kadaster NL,Ordnance I I I I I I I I I Survey,Esri Japan,METI,Esri China(Hong Kong),(c)OpenStreetMap contributors,and the GIS User Community Legend • Sunset Beach Downtown Rest of City City Boundary i.......... i Figure 8-Mop of Active Listings by Neighborhood.Source:Host Compliance, LLC. 21 983 OSOS STREET,SAN LUIS OBISPO,CA 934011(805)59513451 LISAWISECONSULTING.COM 1 492 SUMMARY AND CONCLUSION The City stands to collect substantial revenue from its share of TBID and TOT if applying the rates to STRs throughout the city or just Downtown and Sunset Beach. Based on the data above, policy decisions how to implement the rates and how the potential revenue would fund enforcement efforts must be considered. Overall, the data and analysis provide the platform for the City to move forward with decisions on how to properly regulate Short-Term Rentals in Huntington Beach. Nk y � a s l� r Sunset Beach. Source:Kevin Pellon(@socalsnopz)via surfcityuso.com 983 OSOS STREET,SAN IUIS OBISPO,CA 934011(805)59513451 IISAWISECONSULTING.COM 22 493 N U 0 i L U (t7 to N tll � U O QCL O Q QN � Z 'J C .t.. LLI 0 O .h 0 U Y ofLL. IZILZ � Z N M !r LLJ I Rv ,4q 3 0 z V! 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To:Semeta, Lyn <Lyn.Semeta@surfcity-hb.org> Cc: Fikes, Cathy<CFikes@surfcity-hb.org> Subject:STR Agenda Item 23/20-1837 Agenda IlWn No., -23` 02_ /FL 7z.1 Dear Mayor Semeta, This morning I met with Keith Bohr and we went over the threshold regulations for STR item 23- 20/1837 on the 9/21 agenda: Potential Measures Low Med High Comment Code Enforcement(Existing Nuisance Ord.) x x x Support Support-we propose 2 on each side, across and on both sides,back and on Notice to Neighbors x x x both sides(8 neighbors total) Owner Contact Info. x x x Support-(see above) Neutral-operator should be notified and Local 24-hr Hotline x x x respond Against-should have this information through permit/business license applications.Would lower compliance STR Registration x x x rates Transient Occupancy Tax(TOT) x x x Support-automated process Tourism BID Assessment x x x Support-automated process Exempt Status x Against-everyone should obtain permits Support-perhaps permit for hosted and STR Permit&Business License Fee x x business license for unhosted STR Permit Renewal(Annual) x x Support Against-not necessary if responsibly managed and with technology(security On-site Owner x cameras/decibel monitors) Support-we suggest 2 night minimum Min./Max.days of stay x stay Support-we suggest 2+2(2 per bedroom+2 additional,excluding People per Bedroom Limit x minors) Support-we suggest percentage of housing stock over number of current Cap on#of STR x active STR's Against-complicating and hard to Neighborhood Zones(Geographic limits) x enforce Additional thoughts: 1 Wording in ordinance to say that when applicable-STR that qualifies for permit will be issued one with approval of HOA STR's allowed only in permitted dwellings, including ADU's Owner signs off on STIR permit/license application Penalty of perjury box on STIR permit/license application Good neighbor rules brochure with TBID promo After reading the agenda packet, might you vote favorably for this agenda item? Please reach out to me anytime with questions or comments on how HBSTRA stands on any of these regulations. We'll be there giving telephonic public comments in support of this item and council members favorable votes. Sincerely, + Kathryn Levassiur Huntington Beach Short-Term Rental Alliance Cell: 714.343.7931 Email: info@hbstra.org l Website: https://www.hbstra.org/ 2 Switzer, Donna From: Fikes, Cathy Sent: Monday, September 21, 2020 10:06 AM To: Agenda Alerts Subject: FW: Opposition to STRs in residential tracts From:ALISON ANDREWS<amajpm@msn.com> Sent: Monday, September 21, 2020 9:57 AM To:CITY COUNCIL<city.council@surfcity-hb.org> Subject:Opposition to STRs in residential tracts Dear HB City Council members: I am writing to state my strong opposition to allowing short term rentals (STRs) in HB residential tracts. This is not what we signed up for when we purchased our home in SEHB four years ago. Please continue to ban them and have better enforcement. It is bad enough we have three sober living homes around the corner from our home, which is by a K-8 school. Now we face the prospect of further destruction of our quiet enjoyment of our home through potentially disruptive STRs. STRs may very well also increase the likelihood of sex offenders staying near homes with children and by schools and parks inside the residential tracts. Thank you. Alison Andrews Huntington Beach, 92646 SUPPLEMENTAL COMMUNICATION Meeft Date: Gl/.2�/.ZO20 Agenda Item No.: Switzer, Donna From: Alex Barton <werbarton@mac.com> Sent: Friday, September 18, 2020 6:31 PM To: supplementalcomm@surfcity-hb.org Subject: Short Term Rental Regulations/economic recovery lifeline Hello Huntington Beach City Council Members. My husband and I have been proud homeowners in Huntington Beach for seven years. We have a family business here near Marina High School, with 60 employees. Before COVID, we used to host business partners from all over the US at The Hyatt, Hilton, and Shorebreak. Everyone that attended the weekends here loved Huntington Beach. When we moved here, Pacific City was under construction, and it is one of the reasons we purchased our home in the downtown area. We attended many grand openings at Pacific City and continue to enjoy the center's many outdoor spaces. We enjoy walking to Main Street for the Tuesday market, eating at the restaurants, and walking the pier. Our property is an older non-conforming parcel that would be perfect for short term rentals and not suitable for a full- time renter. My husband and I want to share Huntington Beach with travelers from all over the world. We especially want to share Huntington Beach's incredible beach city vibe with groups and families. Many of these travelers can't pay for the high hotel room costs and need more space when they visit. We are experiencing a slow down at work due to the pandemic, and have had to make the hard decision to reduce pay for our entire team. This reduced pay worries us and has us wondering if we will continue to afford to stay in Huntington Beach. If the city allows short term rentals, our future here would be much more secure now and beyond. Alex B. SUPPLEMENTAL COMMUNICATION Meetlng Date: '? /16LLI D Agenda nem No., ?O- / Switzer, Donna From: TJ Brown <tbrown@socal.rr.com> Sent: Monday, September 21, 2020 9:27 AM To: supplementalcomm@surfcity-hb.org; CITY COUNCIL Subject: Item 23 I would like to voice my complete opposition to item 23 on this evening's agenda. Short Term Rentals will devalue property values, exacerbate the poor parking in the city move the partying from downtown into our neighborhoods. Homeowners wishing to rent their property should be held to the same standards of a commercial enterprise. Commercial cost for police and fire, insurance, and bed taxes should be paid by anyone who wants to run their home as an Inn or hotel. Steep fines should be imposed against anyone who does not register their house as a STR. While the STR folks would like some incremental income, the city should be charging AirBnB and the other online services used for this purpose to offset the cost of increased administrative and police overhead associated with this practice. How is the city prepared to enforce new STR rules in this time of budget pressures?This practice will have an impact on city resources, look at what happens in L.A.! Thomas Brown 19 year resident SUPPLEMENTAL COMMUNICATION Meeitir►g Date: ,genda item ado.: d 3( o219 37) 1 Switzer, Donna From: Claudine E. Burnett <claudineburnett@hotmail.com> Sent: Sunday, September 20, 2020 1:52 PM To: supplementalcomm@surfcity-hb.org Subject: Short term rentals Attachments: B&B signjpg Please listen to residents who live here. There is NOT increasing community support to approve short-term rentals...we have just been silent until now. We live downtown in the 200 block of 8th Street and have 2 rentals directly across the street, between the 2 rentals a single woman lives. She was awoken one night by someone trying to break down her door. It turned out to be a drunken fellow who thought her house was the rental. She has since posted the sign I am attaching. Last week a renter had two dogs that would not stop barking. These are just a few incidents. Also, we have counted as many as 15 people using a rental. The houses in downtown create a kind of canyon which amplifies noise. The people in the rentals congregate outside until all hours of the night with voices and music keeping us awake. A time for outside use should be established. I would propose: 1. Set time limits of outdoor activities. 10 p.m. should be the cutoff time. 2. Limit the number of people to use a rental. 3. Keep the 30 day limit in effect now. It permits only one rental a month...though I know the homeowners renting their homes across the street are not abiding by this 30 day rule. What form of enforcement does the city now have? Are we to set up cameras to monitor out neighbors??? 4. Homeowners should have the same fee structure as hotels with a hotel tax and business license. After all, they are competing with the city's hotels. Use the money to set up the proposed enforcement agency with heavy fines for homeowners not obeying the rules. I would be interested in learning more about how this enforcement agency will "enforce." Will they send out police? 5. If owners post their contact information out front as proposed isn't this for advertising rather than for neighbors to contact them? 6. If we have no choice, I like the high-threshold regulations placing a cap on short term rentals, as well as a maximum amount of rentals in each neighborhood. Paul & Claudine Burnett SUPPLEME11VYAL COMMUNICATION Meeftg Date: AgendaltemNo., 1113 -ZV- /8S Switzer, Donna From: dad2st@aol.com Sent: Monday, September 21, 2020 11:36 AM To: supplementalcomm@surfcity-hb.org Subject: Short term vacation rentals To all council members I urge ALL on the city council to OPPOSE short term vacation rentals. Thank you Chuck Burns Huntington Beach CA 714 369-7384 SUPPLEMENTAL COMMUNdCATION Meetlng Date: 2/211,20 20 Agenda Item No.* -23 (a 0 — Switzer, Donna From: dad2st@aol.com Sent: Saturday, September 19, 2020 4:49 AM To: supplementalcomm@surfcity-hb.org Subject: Short term rentals I urge ALL on the city council to OPPOSE. Chuck Burns Huntington Beach CA 714 369-7384 SUPPLEMENTAL. COMMUNICATION Meeting date: Agenda hem No.: Switzer, Donna From: Cathi Crouch <cathicrouch@gmail.com> Sent: Monday, September 21, 2020 9AS AM To: supplementalcomm@surfcity-hb.org Subject: HB Short term rentals Please keep our sense of community intact by either prohibiting short term rentals, or assuring that owners must be onsite or within 500 ft of the rental. This would allow neighbors to establish relationships with the owners,furthering a sense of community. Having owners onsite would also help to self-regulate the types of renters allowed on the property, adherence to max numbers allowed per unit, and afford neighbors easy access to those accountable for renters behavior. Thank you, Cathi Crouch SUPPLEMENTAL COMMUNICATION Mae"Date: Agenda ram No.. -/8 3 Switzer, Donna From: Michelle Burns <jacqulinemichelle@gmail.com> Sent: Saturday, September 19, 2020 12:50 PM To: supplementalcomm@surfcity-hb.org Subject: Comments for Short Term Rentals As a home owner in down town Hunting ton Beach I sit on the fence for short term rentals. I live two houses from a short term rental that has plagued our street with large parties all hours and days of the week, excessive amounts of trash in the alley and multiple cars blocking the alley to get in and out. We as neighbor's have filed multiple complaints with the city and police for the noise,trash and parking. Our frustration is with the home owner not taking responsibility and managing her guests and home. I am a former short term rental owner in another city where I was regulated to a specific amount of guests based on the rooms in the home, how many cars were allowed and having to have licensing and pay city and state taxes as a business. I would like to see strict regulations for short term rentals in Huntington Beach. They are a business and should be held to the same standards. Licensing,taxes, inspections and signage. Thank you for your time and consideration for a better and safer Huntington Beach. Michelle Burns SUPPLEMENTAL COMMUNICATION Mee Ing Date: F��-1 11"2 D'20 Agenda Stem Pao. J,5 1 Switzer, Donna From: glenn elliott <gelliottl @socal.rr.com> Sent: Saturday, September 19, 2020 1:58 PM To: supplementalcomm@surfcity-hb.org Subject: Agenda Item: Short Term Vacation Rentals I have been a homeowner in Huntington Beach since 1980. My home is zoned as "single family residential" and I trusted that my neighbors were residents, not transients. That trust was broken when my next-door neighbor began renting his home on a short-term basis as a VRBO listing. The resulting influx of strangers had all the charm of living next door to a de facto international hotel and party house. Even though the homeowner was receptive to complaints,addressing those complaints was after-the-fact and without regard for limiting future bookings. One of the selling points for his rental was its setting in a safe, family neighborhood. The question became, "Safe for whom"? Safe for me ala Neighborhood Watch? It was hard to imagine that as I watched stranger after stranger enter the house next door never knowing whether all the "guests" had arrived, how many more might show up in how many more vehicles, how long they would stay, and how late or how often they would party. The only familiar face was the housekeeper who showed up to clean the house and report it's condition to the owner between bookings which were often same day as one group checked out by 11am and the next group showed up as soon as 3pm...or as late as midnight honking horns and gathering on the front lawn. And so it went. Your proposed regulations include: A 24-hour hotline for complaints and notice to all property owners within 500 feet. What recourse does that "notice" offer to resident owners? Will the hotline response time be better or worse than the July 4th hotline? Who exactly will be responding and what will they do? Posting a high visibility sign with contact information in front of the property. Will that be a neon sign with Vacancy/No Vacancy info including abbreviated amenities such as number of bedrooms, WiFi, beach parking pass, etc.? There would be a limit on how many people were guests per bedroom. Who will monitor how many guests will invite guests of their own for holiday dinners, baby showers,graduation parties, etc.? How about that camper that's parked on the street overnight belonging to guests of the guests? Will permits be required? A cap on the number of short-term rentals in the city and a maximum per neighborhood will be established. So,the city will decide winners and losers in the profit potential of short-term rentals, i.e. who gets to use their home as a cash cow and who doesn't? I oppose using residential neighborhoods for short-term vacation rentals. For those who will claim they need the income to stay in their homes I ask what is preventing them from legally renting rooms on a month-to-month basis? For the Huntington Beach alliance of AirBNB hosts I ask why my quality of life should be jeopardized by their profiteering? We already have short-term vacat�j' I Beach called hotels and motels. I live in my home and would like an assurance from this G rnYn gbmw say the same. Cheryl Elliott 21652 Branta Circle MoDeting L)ate' Huntington Beach, CA 92646 Agenda Item No.,• Switzer, Donna( n From: Estanislau, Robin Sent: Monday, September 21, 2020 8:14 AM To: Paik, Julie Cc: Jun, Catherine; Switzer, Donna; Esparza, Patty Subject: Re:®MyHB-#390702 Housing [] Yes, it does ... thanks. Sent from my iPad On Sep 21, 2020, at 7:33 AM, Paik, Julie <Julie.Paik@surfcity-hb.org> wrote: Don't know if this qualifies as public comment. Julie S. Paik Housing Analyst City of Huntington Beach 2000 Main Street Huntington Beach, CA 92648 714.536.5470 ***To ensure the continued health and well-being of our customers and our employees, City Hall is closed to the public effective Monday,July 20"'and until further notice. You may wish to contact the Community Development Department (Planning, Building, Code Enforcement, Affordable Housing, Economic Development, and Real Estate) via telephone at 714-536-5271, via email at community.development@surfcity-hb.org or via the MyHB app on your mobile device and City website https://www.huntingtonbeachca.goylgovernment/departmentslcommunity- development/. Code Enforcement related matters may be reported at 714-375-5155. Building Inspection Requests may be called into 714-536-5241. The City of Huntington Beach offers Electronic Submittals, which allows applicants to submit plans and documents electronically as an alternative to submitting paper documents. Documents such as application forms, drawings, exhibits, and various reports can now be submitted electronically. For eProcess Portal, click here..*** From: MyHB<reply@mycivicapps.com> SUPPLEMENTAL Sent: Monday,September 21, 2020 7:24 AM COMMUNICATION To: Paik,Julie<Julie.Paik@surfcity-hb.org> Subject:®MyHB-#390702 Housing [] Date: Agenda Item NO.' 3 MyHB New Report Submitted -#390702 Status new Work Order #390702 Issue Type Housing Subtype Affordable Housing Notes How can we justify building apartments and dense housing when we have to many vacation rentals that were formerly family rentals. Hotels could be and should be filled. Keep short-term rentals out of residential neighborhood. Keep our residents housed. View the Report Reporter Name georgia guerrero Email geogpainter(a,gmail.com Phone 714-898-4560 Report Submitted SEP 21, 2020 -7:24 AM - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Please do not change subject line when responding. 2 Switzer, Donna From: Dave Guido <gdfthr2@msn.com> Sent: Sunday, September 20, 2020 7:05 PM To: supplementalcomm@surfcity-hb.org Subject: Vacation rentals Please do NOT allow short term vacation rentals in Huntington Beach! There isn't the infrastructure or the enforcement capability to make sure this doesn't become a blight in every neighborhood in the city. And,the city needs to enforce the current ban on vacation rentals which organizations such as Airbnb choose to ignore. If a vacation rental ordinance is in the future, it must be High-Threshold Regulation version. Anything less will be a disaster. Dave Guido 21241 Lochlea Lane HB, 92646 SUPPLEMENTAL COMMUNICATION Meeting Date: 1/-21 LO2D Agenda Item No.• c U -,-2D - /a 3 7T Switzer, Donna From: Chris Hart <chart@socal.rr.com> Sent: Monday, September 21, 2020 10:56 AM To: supplementalcomm@surfcity-hb.org Subject: Short Term Rentals - NO City Council Members, To be brief, I am against any short term rentals in the city of Huntington Beach. 419 6th Street chart@socal.rr.com SUPPLEMENTAL COMMUNICATION Date: I/,--- D.ZD Agenda Poem No.: Switzer, Donna From: Judy Hicks <judyca7@gmail.com> Sent: Sunday, September 20, 2020 3:48 PM To: supplementalcomm@surfcity-hb.org Subject: Short term rentals I own a condominium and am opposed to short term rentals and even our CCR's do not allow them. The unit below me has consistently been rented long and short term. Our management company refuses to do anything about it and I would like to see them banned permanently. Investors are buying up beach property for the purpose of turning them into rentals and that needs to be stopped. Thank you, Judy Hicks Pointe Surfside Condominiums 4682 Warner SUPPLEMENTAL COMMUNICATION Meelft Dale:--- /ozI/ZOz Agenda Item No., d3 Switzer, Donna From: Greta Hunold <gmhunold@gmail.com> Sent: Sunday, September 20, 2020 11:10 PM To: supplementalcomm@surfcity-hb.org Subject: Short Term Rental Ordinance I support agenda item #23 fair regulation of short term rentals in Huntington Beach. Short term rentals help seniors pay property taxes and invest in property upkeep. They help millennials afford their first home. The extra money gained through short term rentals is often the important difference which keeps residents in the homes and neighborhoods they love. They represent just 1% of housing stock, so they do not threaten the housing market. Short term rentals provide vacation opportunities to those who could not otherwise afford to visit the beach. The California Coastal Commission, in its Coastal Act, views STRs as a high-priority, visitor-serving use providing access to our oceanfront to all. Homesharing and vacation rentals is an important economic lifeline that can help get people back on their feet after the unemployment caused by the COVID pandemic. Please provide the Huntington Beach residents the opportunity to supplement their income, add revenue to city coffers, and allow guests to stay in non-traditional settings when they travel to Huntington Beach. Greta Hunold Airbnb Host SUPPLEMENTAL COMMUNICATION Ma"Date: Agenda Item No.• Switzer, Donna From: Kevin Hunold <kevin.hunold@KevinHunold.com> Sent: Sunday, September 20, 2020 11:20 PM To: supplementalcomm@surfcity-hb.org I support agenda item #23 fair regulation of short term rentals in Huntington Beach. Short term rentals help seniors pay property taxes and invest in property upkeep. They help millennials afford their first home. The extra money gained through short term rentals is often the important difference which keeps residents in the homes and neighborhoods they love. They represent just 1% of housing stock, so they do not threaten the housing market. Short term rentals provide vacation opportunities to those who could not otherwise afford to visit the beach. The California Coastal Commission, in its Coastal Act, views STRs as a high-priority, visitor-serving use providing access to our oceanfront to all. Homesharing and vacation rentals is an important economic lifeline that can help get people back on their feet after the unemployment caused by the COVID pandemic. Please provide the Huntington Beach residents the opportunity to supplement their income, add revenue to city coffers, and allow guests to stay in non-traditional settings when they travel to Huntington Beach. Kevin Hunold Airbnb Host Sent from my iPhone SUPPLEMENTAL COMMUNICATION MeWft Date: zr zazv Agenda ftwn No., -)3 020 Switzer, Donna From: Albert Leung <gnuel3@gmail.com> Sent: Monday, September 21, 2020 10:38 AM To: supplementalcomm@surfcity-hb.org Subject: Fwd: Support AirBnb Hi, I support fair regulations for Airbnb short term rentals in HB. I'm a resident of HB and believe Airbnb is a positive for our community as it allows hosts to gain additional income, which in turn we directly pour back to local HB businesses. If other cities allow AirBnb but not HB, guests may stay at other cities, resulting in lost revenue for the city. It also contributes to our city being a world class beach city, and drives tourism and diversity. Albert Leung SUPPLEMENTAL COMMUNICATION Mae"Date: 2/. 2v zc� Agenda Item No.: Switzer, Donna From: Shelly Love <lovehisgrace@gmail.com> Sent: Monday, September 21, 2020 9:28 AM To: supplementalcomm@surfcity-hb.org Subject: Re: HB City Council to draft short-term rental ordinance Monday To the City Council Of Huntington Beach and all those who of concern; Thank you for taking the time to consider moving forward with STR in Huntington Beach by developing the ordinances required for all short term rentals. As already discussed at prior council meetings the need for such regulations and ordinances must be made and adhered to by all who would be registered and operating short term rentals in the city of Huntington Beach. Suggestions for ordinances: • Short Term Rentals must be registered with the city and acquire a permit at a reasonable price • Short Term Hosts should install noise aware equipment to insure that noise levels would be considerate of neighbors and within the city quiet hours • Parking use should be comparable to the host/str homeowner parking use. • Short Term Rentals required to pay tot taxes comparable to hotels and motels within the immediate area • Any events at the location should be pre-arranged with the host and kept within city ordinances. • Short Term Rental owners/hosts must live in their home at least a minimum of 50%of the year Thank you so much for your considerations Pat and Shelly Love On Sat, Sep 19, 2020 at 4:11 PM Huntington Beach Short-Term Rental Alliance <info(a�hbstra.org> wrote: View this email in your browser SUPPLEMENTAL COMMUNICATION X49eenQ Date: gL,7112026 -- — l A9end8 Item No.* �0 03 Hello Alliance members and other STR stakeholders, HB City Council will consider directing staff in creating a short-term rental ordinance. Show you support by calling in or writing to the council. For those of you who may not received this email blast on 9/18 from Airbnb, here it is: "Thank you for being part of the short-term rental community in Huntington Beach. Next Monday, September 21 at 6:00 p.m, the Huntington Beach City Council will discuss and draft regulations for short-term rentals. The Council will be taking public comment as they deliberate. 2 It is important for the host community to submit public testimony to show your support for fair regulations and speak directly to your council members to ensure that your voice is heard. Hosts can submit public testimony to SupplementalComm(aD.Surfcity-hb.org. by 2:00 p.m Monday (9/21). Hosts can also call-in during the meeting at 6 PM to give public comment via the Zoom meeting link or call (669) 900-6833 (Webinar ID: 971 5413 0528). Home sharing is an important economic recovery lifeline. It is important for the host community to show support for fair regulations and ensure that council hears your voice. To learn more about potential regulations and the meeting, please visit the city's website and detailed agenda item site. Your voice can make a difference. To stay connected to your local host community, please visit hbstra.org. Thanks, The Airbnb Team" Note: The council chambers are closed to the public so only written comments received anytime between now 2pm PT Monday, or calling by phone or logging into Zoom within 15 minutes of start of meeting (the meeting may start late) will be accepted. Speaker names are encouraged but not required and comments are audio only, not video. Your comment can be a simple as "I'm calling in support of agenda item #23 for fair regulations of short-term rentals in HB". You can say why you host/operate/stay in STR's in HB and the benefits STIR visitors bring to the local economy". It's best to keep your comments friendly, personal and short. Plan on speaking no more than 1 -2 mins. According to a report that will be presented during the council meeting Monday, there are currently 785 unique active STR's in HB and Sunset, that would generate an estimated $1 .38 million/yr in TOT/TBID revenue, which at present the city is losing out on. 3 Your voice will be heard Monday night, if you speak up! When: Monday, 9/21/20 at 6pm PT for STR agenda item #23 Huntington Beach Short-Term Rental Alliance/hbstra.orq Why do you do short-term rental? Tell your story here. 0 Copyright©2020 Huntington Beach Short-Term Rental Alliance, All rights reserved. You are receiving this email because you opted in via our website, signed up at an HBSTRA event, or are part of the airbhb Google Group. Our mailing address is: Huntington Beach Short-Term Rental Alliance MEADOWLARK DR HUNTINGTON BEACH, CALIFORNIA 92649 Add us to your address book Want to change how you receive these emails? You can update your preferences or unsubscribe from this list. maillchimp Switzer, Donna From: Carlos Alan Martinez <alan.martinez@gmail.com> Sent: Monday, September 21, 2020 11:12 AM To: supplementalcomm@surfcity-hb.org Subject: Public testimony I am a resident of Huntington Beach and I write this in support of legalizing and regulating shorterm rentals in this city. I have a fulltime position at a local CVS as a store manager, and I also manage and clean a short term property near my home for the home owner. I see firsthand the financial benefits of the short-term businesses on its residents and the positive impacts on the neighborhood. Thankfully, the supplemental income as a cleaner and manager of the property has given me more financial freedom. With the extra income, which can be up to 1,000 a month, my goal of being a home owner is much closer than what it was before. Also, the home owner goes to great lengths to upkeep the property so it is visually pleasing to the guests—the property is always in great shape, which is beneficial for the surrounding property values. It is my hope that Huntington Beach legalizes short term rentals as it can benefit greatly from the extra revenue,just as I have. SUPPLEMENTAL COMMUNICATION Agenda(teen Flo.: Switzer, Donna From: H Meyers <hmeybsan@gmail.com> Sent: Monday, September 21, 2020 11:10 AM To: supplementalcomm@surfcity-hb.org Subject: City Council Agenda Item 23: Short-Term Rentals I urge you to continue the ban on short-term rentals in Huntington Beach. If short-term rentals are allowed, the residential area where we have lived for 24 years, near the beach, will become unliveable, bringing more noise and disrupting any sense of neighborhood. Investors will buy up houses to profit from rentals, and renters who are not tied to the neighborhood will have little concern for it. Please vote against short-term rentals. Thank you. Hildy Meyers Huntington Beach SUPPLEMENTAL COMMUNICATION Meeft Date:.m -21 T Agenda Item tom.: Switzer, Donna From: Fikes, Cathy Sent: Monday, September 21, 2020 9:40 AM To: Agenda Alerts Subject: MyHB-#390118 City Council [] MyHB New Report Submitted -#390118 Status new Work Order #390118 Issue Type City Council Subtype All Council Members Notes Forwarded Message----- From: Ellen Riley To: supplementalcomm(cDsurf-city-hb.org Sent: Saturday, September 19, 2020, 04:00:01 PM PDT Subject: Short-term Rentals for City Council meeting AirBnb has been attempting to take over privately owned property in HB and along our coast for years. It would be a gold mine for them, You have been hearing from greedy investors, not homeowners who live in our community.These investors prefer accommodating tourists and party goers because they can get paid more than the sufficiently high rents which they can charge with a lease.We owners--who spent our lifetime savings to live in condos or single-family homes in HB--do not want this devastation of our financial interests and peaceful enjoyment of our neighborhoods. Please say"no"and beef up code enforcement and complaint lines. I have sent this to address given in LA Times as supplementalcomm... but keeps getting sent back. View the Report Reporter Name ellen riley Email ellenlriley(&yahoo.com SUPPLEMENTAL Phone COMMUNICATION 714-377-9491 Data: '1/.21/,Z02V Report Submitted O? SEP 19, 2020 -4:53 PM Agenda Um No . c) - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Please do not change subject line when responding. 1 Switzer, Donna From: Lars Sahanaja <lars.saha@gmail.com> Sent: Monday, September 21, 2020 8:45 AM To: supplementalcomm@surfcity-hb.org Subject: Fair Regulation of Short Term Rentals To whom it may concern, I support agenda item #23 fair regulation of short term rentals in Huntington Beach. Short term rentals help seniors pay property taxes and invest in property upkeep. They help millennials afford their first home. The extra money gained through short term rentals is often the important difference which keeps residents in the homes and neighborhoods they love. They represent just 1% of housing stock, so they do not threaten the housing market. Short term rentals provide safe vacation opportunities to those who could not otherwise afford to visit the beach. They also provide contactless accommodations for visitors seeking means to visit while avoiding high-touch surfaces. The California Coastal Commission, in its Coastal Act, views STRs as a high-priority, visitor-serving use providing access to our oceanfront to all. Homesharing and vacation rentals is an important economic lifeline that can help get people back on their feet after the unemployment caused by the COVID pandemic. Please provide the Huntington Beach residents the opportunity to supplement their income, add revenue to city coffers, and allow guests to stay in non-traditional settings when they travel to Huntington Beach. Sincerely, Indra Lars Sahanaja Short term rental host SUPPLEMENTAL COMMUNICATION ,g Date: Agenda Rem No. Switzer, Donna From: Fikes, Cathy Sent: Monday, September 21, 2020 10:03 AM To: Agenda Alerts Subject: FW: Short-term Rentals From: rtaylor523@aol.com <rtaylor523@aol.com> Sent: Monday, September 21, 2020 8:11 AM To: CITY COUNCIL<city.council@surfcity-hb.org> Subject: Short-term Rentals As someone who has suffered with short-term rentals operating illegally in the proximity of our house, I am begging you to save our neighborhoods for residents. NO short-term rentals in Huntington Beach!!!! Please enforce the ordinance currently on the books. Not one of us who purchased our homes in R-zoned neighborhoods did so with the understanding that we would have hotels of any type, much less those without on-site management & security, operating within feet of our homes. Richard & Judy Taylor SUPPLeMENTAL COMMUNICATION Qate:..v Agenda tt�em�No.•% 83� 1 Switzer, Donna From: Orange City STRs <orangecitystr@gmail.com> Sent: Sunday, September 20, 2020 10:27 PM To: supplementalcomm@surfcity-hb.org Subject: 9/21/20 Agenda Item #23 Madam Mayor Semeta and Honorable City of Huntington Beach Councilmembers, My name is Susan Tillou and I represent a Short Term Rental(STR)homeowners group in the City of Orange. We are writing this evening in support of Agenda Item#23. At the end of 2019,the Orange City Council had a last-minute agenda entry calling for a vote to ban all STRs in our city. Two dozen Orange STR homeowners immediately organized and reached out to city councilmembers and staff requesting a reconsideration. We also closely aligned with other cities for ideas on setting best practice.This included collaboration with Kathryn Levassiur and HBSTRA. Following on the heels of a contemptuous battle in Anaheim,which we all drew lessons from,Orange City and its homeowners moved forward by focusing on 3 points of common ground: 1. the`shared economy'(Airbnb,Uber,Lyft,etc)is here to stay and we needed to find a way to responsibly incorporate this into city code 2. STR homeowners are only pursuing the American dream starting home-based businesses,welcoming visitors and boosting the local economy and city revenue(via TOT) 3. both have a desire to protect our homes and neighborhoods from`bad actors'(large scale parties,using homes for nefarious purposes,etc.) Throughout 2020,we worked with the Orange City Council,City Staff and,most recently,with the Planning Commission to progress an ordinance satisfactory to both sides. We're glad to say we are on the brink of a final vote,likely in the October/November timefi-ame. We wish the same for Huntington Beach and stand ready to help as you consider an ordinance to support STRs in your city. Thank you Susan Tillou City of Orange STR Homeowner Group Lead orangecitvstr(a gmail.com SUPPLEMENTAL "OMMUNICATION Mee&V Date: Agenda Item No.- OJ Switzer, Donna From: Georgina Troxell <ar@troxellusa.com> Sent: Sunday, September 20, 2020 5:35 PM To: supplementalcomm@surfcity-hb.org Subject: Against Short Term Rentals I'm against any short term rental less than 30 days!!!! Georgina Troxell SUPPLEMENTAL COMMUNICATION We: Agenda Item NO.. 07 ��• l 83� 1 Switzer, Donna From: Fikes, Cathy Sent: Monday, September 21, 2020 10:01 AM To: Agenda Alerts Subject: FW: STR-- against them. From: Lisa Casselman Wellman <hbmom310@gmail.com> Sent:Sunday, September 20, 2020 9:12 PM To:CITY COUNCIL<city.council@surfcity-hb.org> Subject:STR--against them. Dear City council I am a property owner living on 9th street in the 200 block. When we first moved in 10 years ago, we had very few issues with VRBO type STR's on our street. It was mostly owners. Now, we have 3 homes designated solely as short term rentals on 9th street. They are advertised on VRBO and the like. The one closest to us, just two doors down, is a constant merry-go-round of short term renters. Recently more renters, and larger crowds within the home and very loud. It's running the neighborhood. The owners of the STR don't care about the quality of the neighborhood - they use this home to simply generate (illegally) revenue. Its creating a motel- like rental atmosphere and it lowers our home value. I cannot install new tile in a remodeled bathroom without the city inspector walking through, getting a permit-- but these homeowners are able to advertise and rent out their properties illegally as hotels with no repercussion from the city. I vote NO on STR's in HB. Thank you. Lisa C. Wellman SUPPLEMENTAL COMMUNICATION Meetlng Date:-,_ T -16_"' 20 Agenda Item No., Switzer, Donna From: Fikes, Cathy Sent: Monday, September 21, 2020 10:02 AM To: Agenda Alerts Subject: FW: STR- NO vote -----Original Message----- From:Scott Wellman<swell man 10@gmail.com> Sent: Sunday,September 20, 2020 9:19 PM To: CITY COUNCIL<city.council@surfcity-hb.org> Subject: STR- NO vote Dear HB City council I am a homeowner in HB on the 200 block of 9th Street.There are 3 advertised VRBO STR's on my street. Since they began turning over SFR into VRBO homes,the noise and hotel like atmosphere has taken away from the neighborhood. It's sad that there is zero enforcement.They advertise freely on the web and have a revolving door of revenue.All at the expense of my expensive home now being downgraded to a hotel block. I am voting NO for STR's in HB. Please listen to the voters and enforce the law. Sincerely Scott Wellman Sent from my iPhone SUPPLEMENTAL COMMUNICATION Date: 1:9,112112 020 Agenda Item No.: 02 F3 1 Switzer, Donna From: Jean Young <visitbeautifuI long beach@gmail.com> Sent: Monday, September 21, 2020 8:59 AM To: supplementalcomm@surfcity-hb.org Subject: Huntington Beach Short Term Rentals Comment on Agenda Item#23 Dear Honorable Mayor Semeta and Huntington Beach City Council Members Hardy, Delgleize, Brenden, Carr, Peterson and Posey. I stand with Huntington Beach Short Term Rental Alliance in support Agenda Item #23 for fair regulation of short term rentals in Huntington Beach. Short term rentals help seniors pay property taxes and invest in property upkeep. They help millennials afford their first home. The extra money gained through short term rentals is often the important difference which keeps residents in the homes and neighborhoods they love. They represent just 1% of housing stock in Huntington Beach, so they do not threaten the housing market. Short term rentals provide vacation opportunities to those who could not otherwise afford to visit the beach. The California Coastal Commission, in its Coastal Act, views STRs as a high-priority, visitor-serving use providing access to our oceanfront to all. Homesharing and vacation rentals is an important economic lifeline that can help get people back on their feet after the unemployment caused by the COVID pandemic. • Allow short term rentals of less than 30 days. • Do not restrict the number of hosting days. • Keep any fees affordable. • Provide a grace period for education and outreach before permits, if any, are required. Please provide the Huntington Beach residents the opportunity to supplement their income, add revenue to city coffers, and allow guests to stay in non-traditional settings when they travel to Huntington Beach. Sincerely, SUPPLEMENTAL COMMUNICATION Mee"Date: A �►o.• �3 a ce - �3 Eugenie Young Long Beach Airbnb Hosts visitbeautifuI long beach(�-bgmail.com z Switzer, Donna From: Kreshnik Begolli <begkeka@gmail.com> Sent: Monday, September 21, 2020 12:27 PM To: supplementalcomm@surfcity-hb.org Subject: In support of short-term rental agenda item #23 Dear Council Members: I support agenda item #23 fair regulation of short term rentals in Huntington Beach. Short term rentals help seniors pay property taxes and invest in property upkeep. They help millennials afford their first home. The extra money gained through short term rentals is often the important difference which keeps residents in the homes and neighborhoods they love. They represent just 1% of housing stock, so they do not threaten the housing market. Personally, without Airbnb, I wouldn't be able to make ends meet since my teaching and research is insufficient to pay bills. Short term rentals provide vacation opportunities to those who could not otherwise afford to visit the beach. The California Coastal Commission, in its Coastal Act, views STRs as a high-priority, visitor-serving use providing access to our oceanfront to all. Homesharing and vacation rentals is an important economic lifeline that can help get people back on their feet after the unemployment caused by the COVID pandemic. Please provide the Huntington Beach residents the opportunity to supplement their income, add revenue to city coffers, and allow guests to stay in non-traditional settings when they travel to Huntington Beach. SUPPLEMENTAL COMMUNICATION Kreshnik Begolli . Meeting date: 2.121 620 Airbnb Host Agenda Item Na.: Kreshnik Begolli, Ph.D. Adjunct Professor Department of Psychology California State University, Long Beach California State University, Dominguez Hills 310.266.3266 Too brief? Here's why! 2 Switzer, Donna From: Pat Byers <bluegrasshb@icloud.com> Sent: Monday, September 21, 2020 11:48 AM To: supplementalcomm@surfcity-hb.org Subject: Agenda item #23 I'm a downtown resident of Huntington Beach and a 79 year old widow living on a very limited income. The supplemental income I get from renting a bedroom in my house through Airbnb allows me to maintain and stay in my home of 30 years. This rental also provides me with much appreciated social and mental stimulation. I'm writing in support of Agenda item #23 for fair regulation of short term rentals in Huntington Beach. I also urge that fair regulation includes that ALL short term rental operators be required to get permits. This will provide a way to monitor operators so that neighborhood harmony can be maintained and party houses prevented. Patricia Byers Sent from my iPad SUPPLEMENTAL. COMMUNICATION Meeting Date: �/12// 2(JZo Agenda rtem NO.: Switzer, Donna From: Eric Halsey <ehalsey@a-cto.com> Sent: Monday, September 21, 2020 1:55 PM To: supplementalcomm@surfcity-hb.org Subject: Short Term Rentals HB City Council - Please consider allowing short term rentals in Huntington Beach w/ minimal regulations. See how it goes for a year and then adjust as necessary. Thanks, Eric F.Halsey MCP,MCTSI ehalsey@a-cto.com I mobile(949)296-5389 A CTO,LLC 1 16292 Arlington Ln, Huntington Beach, CA 92649 IM ehalsey@a-cto.com Bridge 605-475-4350 Access Code:225-560 SUPPLEMENTAL COMMUNICATION MeMft Date: 012/J-?�62 � Aida (tern►o.* 1 Switzer, Donna From: Tennis Fan <jpauljew@hotmail.com> Sent: Monday, September 21, 2020 1:25 PM To: supplementalcomm@surfcity-hb.org Cc: Tennis Fan Subject: Short-term Rentals Huntington Beach Please consider approving legal short-term rentals. AZ, Colorado and Oregon currently allow short-term rentals. They charge occupancy fees. In Aspe,the city provides services for short-term rentals such as shuttles to concerts from various locations to avoid parking issues. It would be nice to have a mutually beneficial relationship with the city. I am an Airbnb user and an Airbnb host. I currently only rent for 30 days or more, but would like to rent short term. Respectfully, Judy Jew HB resident SUPPLEMENTAL COMMUNICATION Mae" Date: Agenda Item No..- ��_g i Switzer, Donna From: Richard de Sam Lazaro (ELCA) <rilazaro@expediagroup.com> Sent: Monday, September 21, 2020 1:09 PM To: Semeta, Lyn; Hardy,Jill; Brenden, Patrick; Carr, Kim; Delgleize, Barbara; Peterson, Erik; Posey, Mike; supplementalcomm@surfcity-hb.org Cc: Kris Murray Subject: Comments re: Short Term Rentals Attachments: 092120 - Expedia Group re STR.pdf Good afternoon, Please find comments regarding Huntington Beach's discussion around short-term rentals (STRs). On behalf of Expedia Group,a family of travel brands including vacation rental leader Vrbo, I'm grateful for the opportunity to provide input and look forward to providing any additional information that may assist as this conversation moves forward. Thank you for your consideration. Richard Richard de Sam lazaro Senior Manager, Government and Community 0 T+1 206 660 8227 Email:rilazaro@expediagroup.com oxpodia groupi expediagroup.com SUPPLEMENTAL COMMUNICATION Me0V Date:_ Agenda Item No.; o23 2 - 1 oxpodia group- September 21, 2020 City of Huntington Beach 2000 Main Street Huntington Beach, CA 92648 By Electronic Mail Mayor Semeta and Members of the Huntington Beach City Council, On behalf of Expedia Group, a family of travel brands including vacation rental leader Vrbo,thank you for the opportunity to take part in Huntington Beach's conversation around short-term rentals(STRs). STRs provide affordable and safe accomodations for traveling families and a critical piece of Huntington Beach's community and economy. Expedia Group is proud to support balanced, sustainable regulations that meet community needs. Clear expectations around occupancy, parking, noise, refuse, and other standards as part of a simple and accessible STIR licensing program are a great way to address community concerns while protecting property rights and this important part of Huntington Beach's lodging sector. As this conversation moves forward, we encourage you to consider ways in which platforms like Vrbo can be partners in driving a high rate of compliance with Huntington Beach's STIR program. For instance, requiring platforms to request city-issued license numbers numbers as part of the on-boarding process for property listings.Without a license number,a listing for a Huntington Beach property could not be on the platform.This would also result in certificate numbers being clearly displayed in a consistent place on each listing which makes it easier for regulatory staff to locate license numbers and monitor compliance more efficiently. In addition, we would welcome the opportunity to discuss regulatory options that would require platforms to remove listings flagged as non-compliant by Huntington Beach staff. As more and more travelers look to vacation rentals as a safe lodging option that minimizes shared space and allows guests to clean, cook, and control occupancy in their accomodations,transient occupancy tax (TOT) revenue from STIRS is a valuable asset to the city budget, as well.A voluntary collection agreement with Vrbo can help ensure full collection of TOT generated by STIR,and we would be grateful to connect with finance staff to open that conversation. Thank you again for your consideration of this issue and your work to craft a balanced,fair STIR program with a high rate of compliance. Please feel free to contact me at rilazaro@expediagroup.com or 206-660- 8227 with any questions or to discuss further. Sincerely, Richard de Sam Lazaro Senior Manager, Government and Community Expedia Group 111 1 1 Expedia Group Way West I Seattle WA 98119 1 United States Switzer, Donna From: Trudy J. Le Clair, Ed.D. <tjleclair@aol.com> Sent: Monday, September 21, 2020 1:22 PM To: supplementalcomm@surfcity-hb.org Subject: Short term rental agenda item Dear Council Members, My husband and I are opposed to short term rentals in neighborhoods in Huntington Beach. We have seen what short term rentals have done to neighborhoods in both Anaheim and Big Bear in terms of loud parties, trash, parking congestion and property damage! The quality of life concerns should be paramount for our city, not income for large corporations (aligned with a few homeowners) at our neighbors expense. We have many hotels and motels in Huntington Beach. Why would you try to take away their business? Of the three regulations presented in the Daily Pilot, ONLY the High Threshold should be considered if you are going to impact our lives. If home owners want this option, they need to be on the premise and be responsible for both their clients and to feel the impact on their neighbors. Thank you, Dr. Trudy Le Clair Mr. Raymond Bradley 17332 Canna Circle Huntington Beach, CA 92647 Le Clair and Bradley Enterprises 7171 Warner Avenue #B-307 Huntington Beach, CA 92647 Be mindful of what you toss away. Be careful what you push away, and think hard before you walk away. SUPPLEMENTAL COMMUNICATION Trudy J. Le Clair, Ed.D. Le Clair and Bradley Enterprises Mee" Date: ��zi��ozy 7171 Warner Avenue #B-307 Huntington Beach, CA 92647 Agenda item No.; a2,3 Be mindful of what you toss away. Be careful what you push away, and t hink hard before you walk away. z Switzer, Donna From: Wentzel, Linda Sent: Monday, September 21, 2020 2:03 PM To: supplementalcomm@surfcity-hb.org Subject: FW: Short-Term Rentals No for City Council meeting Kind Regards, L6nd,a,wevtz3,e , Department Services Aide Office of the City Clerk City of Huntington Beach 2000 Main Street, Huntington Beach, CA 92648 714.536.5227 Linda.wentzel@surfcity-hb.org From: Ellen Riley [ellenlriley@yahoo.com] Sent: Monday, September 21, 2020 2:01 PM To: Wentzel, Linda Subject: Fw: Short-Term Rentals No for City Council meeting -----Forwarded Message----- From: Ellen Riley<ellenlriley@yahoo.com> To: supplementalcomm@surf-city-hb.org<supplementalcomm@surf-city-hb.org> Sent: Monday, September 21,2020,01:48:29 PM PDT Subject: Short-Term Rentals No for City Council meeting Short-term Rentals at City Council meeting AirBnb has been attempting to take over privately owned property in HB and along our coast for years. It would be a gold mine for them, You have been hearing from greedy investors, not homeowners who live in our community. These investors prefer accommodating tourists and party goers because they can get paid more than the sufficiently high rents which they can charge with a lease. We owners--who spent our lifetime savings to live in condos or single-family homes in HB--do not want this devastation of our financial interests and peaceful enjoyment of our neighborhoods. Please say "no" and beef up code enforcement and complaint lines. I have tried to send this to LATimes address given you supplementalcom...but it keeps bouncing back. SUPPLEMENTAL COMMUNICATION Medng Date:/ �Zo.2y Agenda llem No.: .�31 Switzer, Donna From: Bev Sansone <drsansone001 @gmail.com> Sent: Monday, September 21, 2020 1:53 PM To: supplementalcomm@surfcity-hb.org Subject: Short-term rentals Regarding 20-1837 City Council consideration of directing staff to prepare an Ordinance regulating Short-Term Rentals (STRs): I would like to address the issue of short-term house rentals(AirBNB and VRBO and others) in Huntington Beach. I am against any proposal that would allow these short-term rentals in our city. Huntington Beach is a very desirable destination point for many world travelers. In theory,residents could make a lot money renting out their home and live somewhere else. This would turn Huntington Beach into a city of short-term rentals and all the problems associated with that: loud parties with too many people(this is already a problem in LA), late night noise,parking issues,possible drug and alcohol issues, and the typical"rental"attitudes of keeping up the home value. If it does come down for a possible vote to allow, I would insist that it were highly regulated, licensed and taxed with the ability to have neighbors complain if there is a problem which would lead to loss of license. I would also insist there there be limited numbers of these licenses per area(like 1-2%of housing areas). This would be recommended action C. Thank you, Beverly Sansone 201 20th St Huntington Beach, CA 92648 SUPPLEMENTAL COMMUNICATION Meedng oate: "-_7_0212a2 J Agenda ftem No.; c23 L6 -- /8 Switzer, Donna From: geneop4363@aol.com Sent: Monday, September 21, 2020 2:18 PM To: supplementalcomm@surfcity-hb.org Subject: short term rentals It is about time! Our city attracts families from all over the world, and up to this point, they have been at the mercy of the big hotels. Imagine you're a family of five or six, and you want to spend a week in our city. Two rooms in those fancy hotels at 400.00 plus, a night. That costs $5,600.00 plus tax, AND THEY CAN'T EVEN COOK FOR THEMSELVES TO SAVE A LITTLE. You must approve short term rentals for the city. SUPPLEMENTAL COMMUNICATION Agends hem No.- ��ZD- l 83 Switzer, Donna From: The Caterina's <ccaterina99@gmail.com> Sent: Monday, September 21, 2020 5:50 PM To: supplementalcomm@surfcity-hb.org; CITY COUNCIL Subject: Short Term Rentals Agenda Item 20-1837 9/21/20 SUPPLEMENTAL. COMMUNICATION MeOm Dom: IZOZ() Huntington Beach City Council Members \ A °�3 l�O - IFS_ 1 Re: Short Term Rentals 9� Itom No., The following comments relate to short term (S/T) rentals in the downtown neighborhood only. Please don't change our beach city into another party central Newport Beach where S/T summer rentals have been permitted forever, parking is non-existent, and homeowners can't enjoy their property during the summer. We have resided in downtown Huntington Beach since 1980. We saw the LA Times article regarding the proposed "rules" for S/T rentals and have several comments. There are many apartments, condos, and rental homes in our neighborhood, none of which create problems. S/T vacation renters are a different category of tenant, with no vested interest to respect their neighbors. A couple of summers back we had a S/T rental on our block. Some of the renters treated the house as a party house with frequent excess noise. They did not follow typical house rules about trash, quiet hours, moving cars on street sweeping days, illegal parking in the alley, parking in front of fire hydrants that are not marked with red curbs, etc. Their extra cars on the street filled the vacant spaces forcing residents who return late from work to park (and search for parking) sometimes blocks from their homes. Many S/T renters at the beach have zero respect for how their actions affect their neighbors. They are not compatible with existing zoning and the relative tranquility of the downtown neighborhood. Have you ever looked for parking in Balboa Peninsula/West Newport in the summer? We have. Looking for a space for 20 minutes is not uncommon. When one buys a downtown condo or house or rents an apartment, they know there is a non-monetary price for living here. This includes difficult parking year round, impossible parking on summer weekend days and the 10 days during the US Open of Surfing, and a circus adventure on the 41h of july. We all agreed to this by moving here. We did not agree to anything like the Balboa Peninsula/West Newport situation. S/T rentals have no place in downtown. If you want to accommodate more S/T visitors you should permit traditional hotel/all suite hotel buildings in the first half block on PCH with requirements for sufficient onsite (underground) parking. There are a couple of undeveloped blocks (DQ/TK Burger, Sancho's Tacos, old Taco Bell parcel at 9th St.) where this would be appropriate. i S/T rental platforms require that owners verify that they are aware of local regulations. Current owners who illegally rent S/T knew, or should have known, that S/T rentals are ILLEGAL. The City Council must show ZERO compassion for them. They are lawbreakers. You represent the current owners and residents of downtown. Act like it! You have no obligation to change our laws to permit S/T rentals. Don't do it! Now is the time to shut down all existing S/T rentals in the downtown area. We have no objection to owners renting one bedroom in their house when they are present. Please don't change our beach city into another party central Newport Beach, where summer rentals at the beach are the norm, parking is non-existent, and homeowners can't enjoy their property during the summer. Sincerely, Gerald & Colette Caterina 119 Fifteenth Street, Huntington Beach, CA 92648-4408 ccaterina99(d,)gmail.com 714-536-1608 home 714-642-0595 cell 2 Switzer, Donna From: Richard de Sam Lazaro (ELCA) <rilazaro@expediagroup.com> Sent: Friday, September 25, 2020 2:04 PM To: Semeta, Lyn; Hardy,Jill; Brenden, Patrick; Carr, Kim; Delgleize, Barbara; Peterson, Erik; Posey, Mike; supplementalcomm@surfcity-hb.org Cc: Kris Murray Subject: Comments and Framework re: Short Term Rentals Attachments: 092520 Huntington Beach.pdf,092520 Huntington Beach Attachment.pdf Good afternoon, Thank you for your continued discussion around short-term rental policy in Huntington Beach. On behalf of Expedia Group and its subsidiary Vrbo, I am grateful for your consideration of the attached comments and framework for balanced public policy in this space. Please feel free to contact me to discuss this effort further, and how Expedia Group's experiences and best practices in public policy around the country can help inform this process going forward. Thanks, Richard Richard de Sam Lazaro Senior Manager, Government and Community 0 T+1 206 660 8227 Email: rilazaro@expediagroup.com expediagroup.com He/Him/His 1 oxpodia group- September 25, 2020 City of Huntington Beach 2000 Main Street Huntington Beach, CA 92648 By Electronic Mail Mayor Semeta and Members of the Huntington Beach City Council, On behalf of Expedia Group, a family of travel brands including vacation rental leader Vrbo, thank you for the opportunity to take part in Huntington Beach's conversation around short-term rentals(STRs).STRs provide affordable and safe accomodations for traveling families and a critical piece of Huntington Beach's economy and community. Expedia Group is proud to support balanced, sustainable regulations that meet community needs. As travel becomes safe again,whole-home vacation rentals provide traveling families with a lodging option in Huntington Beach where they can cook, clean, and adhere to social distancing guidance safely and affordably.We encourage you to consider the important role vacation rentals can play in economic recovery, including the critical TOT revenue they can provide to a recovering city budget. By contrast, limiting STR activity to hosted stays only severely restricts the lodging options available to travelers, especially as hosted stays are currently prohibited by state public health guidance. With that in mind, Expedia Group strongly supports Council's efforts to enact clear expectations around occupancy, parking, noise, refuse,and other standards as part of a simple and accessible STR licensing program.These policies represent a forward-thinking and holistic way to address community concerns while protecting property rights and this important part of Huntington Beach's community fabric. Please find attached a high-level framework that describes model policies to address neighborhood and community needs in a manner that ensures a high rate of compliance and control for regulatory staff. In addition,we welcome the opportunity to discuss a voluntary collection agreement with Huntington Beach,which would allow us to collect applicable TOT and remit it to the City on behalf of STR operators. Thank you for your work to enact balanced, sustainable STR policy that keeps Huntington Beach's community,city budget, and tourism economy moving forward together. Please feel free to contact me with any questions or for additional discussion at 206-660-8227 or rilazaro@expediagroup.com. Sincerely, Richard de Sam Lazaro Senior Manager,Government and Community Expedia Group 111 11 Expedia Group Way West I Seattle WA 98119 1 United States Definitions. Excludes hotels, B&Bs, timeshares,hostels from definition of short-term rental. Defines short-term rental as stays of 30 consecutive nights or less. License Required Each short-term rental operator must obtain a license. A license may be revoked based on a clearly defined set of terms, e.g. a certain number of complaints, etc. We advise license fees should be kept to $100 or less. Renewed annually. Short-Term Rental Operator General Provisions Operators must: • include their license number on advertisements. • at time of licensing,provide City and neighbors with the name and contact information for a local contact who can and must respond to any on-site complaint during a rental period within 60 minutes. • adhere to residential building safety requirements (e.g. fire extinguishers, carbon monoxide detectors,etc.) • limit total occupancy to two occupants per bedroom + two, excluding children under 12 • adhere to clear guidelines around trash,parking, quiet hours, signage, lighting, and non- commercial use (e.g. no ticketed events) Short-Term Rental Platforms General Provisions Require platforms to collect and display a license number for each short-term rental listing. Require platforms to remove any listing flagged as non-compliant within ten days of notification by city enforcement agency. ALTERNATIVELY The city may create and maintain a license registry, as in Santa Monica,against which platforms must validate the operator-provided license number before completing any booking service. 1