The URL can be used to link to this page

Home My WebLink AboutShort Term Rental Study Session Y City of Huntington Beach File #: 20-2104 MEETING DATE: 12/21/2020 Short Term Rental Study Session City of Huntington Beach Page 1 of 1 Printed on 12/16/2020 powered t%Legistar— Short � Term Rentals ------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------ City of Huntington Beach CityCouncil D e c e mb e r vimNICATION M"ft DMe: Background -------------------------------------------------------------------------------------------------------- 111�j -------------------------------------------------------------------------------------------------------- September 3, 2019 Study Session - an overview of short-term rentals in Huntington Beach - case studies of four coastal cities (Carlsbad, Carpinteria, Newport ; Beach, Pismo Beach) - range of approaches in regulating short-term rentals September 21, 2020 Meeting - three regulatory framework alternatives fiscal impact analysis direction to prepare an Ordinance with high threshold regulations STR Regulations ------------------- ------------------------------------------------- o - Chapter 5 . 120 (Short-Term Rentals) : establish regulations, standards, and permitting processes affecting residential districts citywide protect character of residential neighborhoods maintain long-term rental housing stock ensure collection and payment of TOT Types of STR --------------------------------------------------------------------------------------------- ----------- 0 -------------------------------------------------------------------------------------------------------- Host Short-Term Rental (STR) a property owner who a residential dwelling unit offered to a occupies the property paying guest for 3o nights or fewer at the time and for the duration of the short term rental Hosted Stay a short term rental where the Host occupies the property and remains on- Operator site throughout the guest's stay a property owner in Sunset Beach who Un-Hosted Stay offers the unit for an a short term rental in Sunset Beach un-hosted short term rental where there is no Host and the Operator resides off-site during the guest's stay ermid tte Locations --------------------------------------------------------------------------------------------------------- 0 -------------------------------------------------------------------------------------------------------- Zone i and 2 hosted (owner-occupied) STRs allowed Zone i citywide, including properties in Sunset properties within Beach the City, excluding Sunset Beach Zone 2 un-hosted (owner un-occupied) STRs Zone 2 allowed in Sunset Beach only if a properties within permit is applied for within 6 months Sunset Beach of the effective date of the fee resolution STR Permit -------------------------------------------------------------------------------------------------------- 0 -------------------------------------------------------------------------------------------------------- STR Permit required for all hosted and un-hosted STR operations STR Host/Operator needs to apply for a STR Permit within 6 months of effective date of fee resolution permit valid for one year from date of issuance STR Permit may not be transferred and does not run with land annual renewal of STR Permit ri rla or eSTRs --------------------------------------------------------------------------- 0 -------------------------------------------------------------------------------------------------------- one STR per property (SFR, duplex, triplex, rental properties of any size) � f up to 3 STRs per property (on ownership properties �! with 4 or more units, i.e. condominiums and .s townhomes if allowed by CC&Rs) STR as a legally permitted dwelling unit (ADUs or junior ADUs if unit legally established prior to effective date of the Ordinance) STR unit must be primary residence of Host Local Contact Person available 24 hours/day, 7 days/week, to respond within 1 hour to complaints and take action to resolve complaints Host as the Local Contact Person for Hosted Stays Operator designates a Local Contact Person for Un-Hosted Stays STR Key _________________________ 'F t- --------------------------------- ---------------------- occupancy limit — maximum 2 persons per bedroom, plus 2 additional guests (including children); maximum to persons in any STR minimum age of STR tenant - 25 years old compliance with Noise ordinance events are prohibited (commercial parties, weddings, fundraisers, conferences) City-issued STR permit registration on all marketing/advertising materials if STRs become part of Huntington Beach TBID, they shall comply with all requirements, including the payment of the 4% of taxable revenues STR not operated as any other commercial home-based business STR Requirements ----------------- - --------------------------------------------------------- 0 -------------------------------------------------------------------------------------------------------- provide information to guests on maximum number of occupants, location of parking, noise regulations and quiet hours, trash and recycling disposal requirements maintain working fire and life safety items (e.g. fire extinguishers, smoke and carbon monoxide detectors) maintain and provide proof of liability insurance appropriate to cover the STR have the legal responsibility to collect and remit the TOT and TBID assessments i Pos tin ----------------------------------------------------------------------------------------- 0 -------------------------------------------------------------------------------------------------------- Interior Notice maximum number of occupants ouse location of parking utesRtrash and recycling pickup information emergency contact information evacuation plan Sign Outside Unit Local Contact Person name and phone number no posted sign outside to advertise the availability of the unit Hosting Platforms --------------------------------------------------------------------------------------------------------- 0 ---- _ _ ____________ ____--------------------------------------------- require STR Permit number and expiration date on all listings Ashall not process any booking transaction without � a valid current STR Permit issued by City airbnb provide the City with the monthly report for each listing: STR Permit number, address, name of person, number of days book, price paid remove any listings for STRs upon notification by City V R B Cr • inform Host/Operator of responsibility to collect from HomeAway , and remit all applicable taxes unless there is a Platform Agreement Enforcement _ _ __ _ _ ______ ___ __ __________ __ _____________ _ __ __ ___ _ ___ __ _ ___________ ______________________ __ o - Local Contact Person to respond to complaints within one hour after the complaint is received $i,000 fine each day for each violation of any provision 3 violations against a STR Host/Operator within a 12-month period may result in revocation of STR Permit • lscal Impac -------------------------------------------------------------------------------------------------------- f--% 1%111�� --------------------------------------------------------------------------------------------------------- Potential revenue projections — data collected from May 2019 through April 2020 to represent a snapshot of STR market in Huntington Beach Table 1 reflect potential revenues divided into three subareas Sunset Beach Downtown rest of Huntington Beach g Table 1: City STR Revenue by Subarea Total TOT TBID Expenditures (City Share) io% 1% of TBID Sunset Beach $1484,977 S148 498 $594 Downtown $3,615,687 $361,569 $1,446 Rest of City $037,630 $363,630 $1455 Total M7389294 $573,829 $39495 • lscal Impac ------------------------------------------------- - -------------------------------------------- -------------------------------------------------------------------------------------------------------- Table 2 reflect potential revenues divided by rental type: entire unit private room shared room Table 2: Cite STR Revenue by Rental Type Total TUT TEID Expenditures Y o% (CAN, Share) 1% of TBID Entire Unit S7a846;779 $78078 83J39 Friv-ate Room S8917345 $89,135 $357 Shared Room S 170 $17 $0 Total $8,7389294 $873,829 $39495 Fi* scal ---------------------------------------------------I---------------------------------- ---------------------------------------------------------------------------------------------------- Table 3 reflect potential revenues for allowing: all types of STRs (entire unit, private room, and shared room) in Sunset Beach hosted rentals (private rooms and shared rooms) in the rest of the City Table 3: STR Revenue fi-oin Council-Reeoniniended Prograin Total TOT TBID Expenditures (City Share) Yo% 1% of TBID City-wide: Private Roonls $8A510 $83,651 $335 City-wide: Shared Rooms $170 $17 So Sunset Beach: All Rental Types $1,484,977 $148,498 $594 Total $2,3219657 $2329166 $929 Recommendation _ __ ____ ________ _ _ _ _ ____ __ __ ___ ___ _______ o - Approve for introduction of Ordinance No. 4224 by adding Chapter 5.120, Regulating Short-Term Rentals provide regulations and permit processes to reduce operational impacts of short-term rental properties preserve residential neighborhood character