HomeMy WebLinkAboutApprove for Introduction Ordinance No. 4238 Amending Chapter f1P)WYZ-7) q -&
City of Huntington Beach
File #: 21-806 MEETING DATE: 11/2/2021
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
Subject:
Adopt Ordinance No. 4238 amending Chapter 5.120 of the Huntington Beach Municipal Code
regulating Short-Term Rentals (STR) - Approved for introduction 10/19/2021, Vote: 6-0-1
(Peterson-Absent)
Statement of Issue:
Ordinance No. 4238 approved for introduction October 19, 2021 , requires adoption.
Financial Impact:
There are no direct fiscal impacts associated with this action.
Recommended Action:
Adopt Ordinance No. 4238, "An Ordinance of the City Council of the City of Huntington Beach
Amending Chapter 5.120 of the Huntington Beach Municipal Code Regulating Short-Term Rentals."
Attachment No. 1 )
Alternative Action(s):
Do not approve the recommended action and direct staff accordingly.
Analysis:
The Short-Term Rental Ordinance was adopted on January 19, 2021 and became effective on
February 19, 2021. The Short-Term Rental Permit fee resolution was adopted on March 1, 2021.
The ordinance allows property owners in Sunset Beach to obtain an un-hosted short-term rental
permit within six months of the adoption date of the fee resolution.
After the adoption of the ordinance, the City Council created an Ad Hoc Short-Term Rental
Committee to solicit input from stakeholders and discuss whether changes were needed to the
ordinance. On September 21, 2021, staff shared the Ad Hoc Committee's recommendations with the
entire City Council. After some discussion, the City Council decided to allow property owners in
Sunset Beach to obtain an un-hosted short-term rental permit within one year of the adoption date of
the fee resolution (March 1, 2022). The City Council directed staff to prepare an amendment to the
City of Huntington Beach Page 1 of 2 Printed o.{n,�p10/27/2021
Po.eZ13%Le-,va,"'
File #: 21-806 MEETING DATE: 11/2/2021
Short-Term Rental Ordinance to implement the Council's direction.
The amendment to the Short-Term Rental Ordinance includes the following:
1. extending the date for property owners in Sunset Beach to obtain an un-hosted short-term
rental permit to March 1, 2022
2. clarifying the definition of"short-term rental operator'
3. clarifying the responsibility of collecting and remitting TOT and TBID assessments
The two other changes listed above are non-substantive clean up items that do not affect the STR
policies originally adopted by the City Council.
Environmental Status:
The amendment to the Huntington Beach Municipal Code is exempt from the California
Environmental Quality Act (CEQA) pursuant to Section 15061 (b)(3) (General Rule) of the CEQA
Guidelines, because there is no potential for the amendment to have a significant effect on the
environment.
Strategic Plan Goal:
Economic Development & Housing
Attachmen![§
1 . Ordinance No. 4238
2. Legislative Draft of HBMC Chapter 5.120
City of Huntington Beach Page 2 of 2 Printed on 10/27/2021
oowe2d:39 Lepse
ORDINANCE NO. 4235
AN ORDINANCE OF THE CITY COUNCIL, OF THE CITY OF FIUNTINGTON BEACH
AMENDING CHAPTER 5.120 OF THE HUNTINGTON BEACH i\MUNICIPAL CODE-
REGULATING SHORT-TERAM RENTALS
The City Council of the Cite of Huntington Beach ordains as follows:
SECTION 1. That Chapter 5.120.010 of the Huntington Beach Municipal Code is
hereby amended to read as follows:
5.120.010 Purpose.
The purpose of this Chapter is to establish regulations, standards, and a permitting
process governing the renting or leasing of privately owned visitor serving residential dwelling
units on a short-tern basis in order to maintain the long-term rental housing stock in the City:
ensure the collection and payment of Transient Occupancy Taxes ("TOT"), safeguard the
residents of the City of Huntington Beach by ensuring that Short-Tenn Rental activities do not
threaten the character of residential neighborhoods, and ensuring that such Short-Tenn Rental
activities do not become a nuisance, or threaten the public health, safety, or welfare of
neighboring properties. This Chapter will establish two Zones in the City where Short-Term
Rentals are permitted. Zone I will consist of all areas of the City excluding Sunset Beach. Zone
2 will consist of Sunset Beach. In Zone 1 and Zone 2, Short-Term Rentals are permitted in
owner occupied residential dwelling units as set forth herein. In Zone 2, Short-Tenn Rentals are
permitted for existing owner"un-occupied" residential dwelling units who obtain a permit by
March 1, 2022, After March 1, 2022, no new permits for owner un-occupied residential
dwelling units will be issued.
SECTION 2. That Chapter 5.120.020 of the Huntington Beach Municipal Code is
hereby amended to read as follows:
5.120.020 Definitions.
A. "Booking Transaction" means any reservation and/or payment service provided
by a person or entity who facilitates a Short-Term Rental transaction between a prospective guest
and a Short-Term Rental Llost or Operator.
B. "City" means City of Huntington Beach.
C. "Director' means the Director of Community Development or a designee.
D '`Guest ' means any person or persons renting a Short-Term Rental as a transient
occupant.
E. `Host" means a property owner who is an occupier of the property at the time of,
and for the duration of. the Short-Tenn Rental.
F. "Hosted Stay" means a Short-Tenn Rental at a Primary Residence whereby the
ORDINANCE NO. 4238
I-lost occupies the Short-Term Rental property and 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).
G. "Hosting Platform" means a person or entity that participates in the Short-Teri
Rental business in exchange for a fee or other compensation, directly or indirectly through an
agent or intermediary, by conducting a Booking Transaction for a Hosted or Un-l-losted Short-
Term Rental using any medium of facilitation.
1-1. "Local Contact Person' means the Operator or Host or person designated thereof
to respond to and take remedial action regarding Short-Term Rental issues or complaints.
1. "Platform Agreement" means a signed agreement between a Hosting Platform and
the City, which, among other things, provides that the Hosting Platform will collect and submit
Transient Occupancy Tax and any Improvement District Assessment established pursuant to
California Streets and Flighways Code sections 36500 and 36600 to the City on behalf of Short-
Term Rental Hosts or Operators.
J. "Primary Residence" means a person's permanent residence or usual place of
return for housing as documented by at least two (2) of the following: driver's license; voter
registration; tax documents showing the residential unit as the person's residence; or a utility bill.
K. "Prohibited Buildings List" means a list identifying the address(es) of all
buildings whose owner(s), including any applicable homeowners' association or board of
directors, have notified the City, pursuant to City procedures, that Short-Tenn Rentals are not
permitted to operate anywhere in such building, including deed restricted affordable housing
units.
L. "Short-Term Rental ("STR")" means a residential dwelling unit, or portion
thereof, that is offered or provided to a paying Guest(s) by a Short-Term Rental i-lost or Operator
for thirty (30) or fewer consecutive nights. The term "Short-Termm Rental" shall not include
hotels, motels, inns, or bed and breakfast inns.
1\11. "Short-Term Rental Advertisement" means any method of soliciting use of a
dwelling unit for Short-Term Rental purposes.
N. "Short-Tenn Rental Operator' or "Operator' means property owner or a property
manager of a dwelling unit in Sunset Beach, or portion thereof, who offers or provides that
dwelling unit, or portion thereof, for an Un-Flosted Short-Term Rental.
0. "short-Term Rental Permit" or "Permit' means a Permit, with a Permit number,
issued by the City to allow Hosted or Un-Flosted Short-Term Rentals.
P. "Short-Term Rental Tenant" means a person who has entered into a Short-Tenn
rental agreement for a dwelling unit in exchange for Short-Term occupancy of the dwelling unit.
Q. "Transient Occupancy Tax" ("TOT") means local Transient Occupancy Tax as set
forth in Chapter 3.28 of the Huntington Beach Municipal Code.
R. "Un-Hosted Short-Tenn Rental" means a Short-Tenn Rental in Sunset Beach,
),where there is no i lost and the Operator resides off-site during the Guest's stay.
S. "Zone 1" means the City of Huntington Beach excluding the property located
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ORDINANCE NO. 4238
within the Sunset Beach Specific Plan.
'I. "Zone 2" means property located within the Sunset Beach Specific Plan.
SECTION 3. That Chapter 5.120.030 of the Huntington Beach Municipal Code is
hereby amended to read as follows:
5.120.030 Permit Required.
A. No person or entity shall advertise, rent, or operate a Short-Term Rental (STR) in
the City unless a Permit has been issued by the City pursuant to this Chapter. An Operator or
Host of the STR shall apply with the City to obtain a Permit and shall be responsible for
complying with all requirements of this Chapter. Application for a STR Permit shall be in a
form prescribed by the Director and include all information determined by the Director to be
necessary to evaluate the eligibility of the Host or Operator, consistent with this Chapter.
B. An application for a STR Permit shall be accompanied by a fee established by
resolution of the City Council, provided, however. the fee shall be no greater than necessary to
defer the cost incurred by the City in administering the provisions of this Chapter.
C. STR Hosts or Operators shall apply for STR Permit pursuant to this Chapter.
Existing unpertnitted STR Hosts or Operators shall apply for a STR Permit within six months
after the effective date of resolution adopting the STR Permit fee. The Host or Operator shall
provide proof of property ownership and shall be the person that signs the application.
D. A STR Permit is valid for two (2) years from the date of issuance. The STR
Permit is personal and may not be transferred or assigned and does not run with the land. A STR
Permit may be renewed annually if STR Operator or I-lost: (1) pays the renewal fee; (2) provides
information concerning any changes to the previous application for, or renewal of, the STR
Permit; (3) submits records to demonstrate compliance with this Chapter as required by the
Director. Failure to submit a renewal application to the City at least thirty (30) days prior to the
expiration of the STR Pemtit shall render the STR Permit and permission to operate an STR null
and void.
E. STR Permits issued pursuant to this Chapter are subject to the following standard
STR permit conditions:
1. The Host or Operator shall, by written agreement with the Tenant. limit
overnight occupancy of the STR to a specific number of occupants, with the number of
occupants not to exceed that permitted by the provisions of this Section.
2. The Host or Operator shall insure that the occupants and/or guests of the
STR do not create unreasonable noise or disturbances, engage in disorderly conduct, or
violate provisions any Federal, State, or Local (including the Huntington Beach Nfunicipal
Code) law pertaining to noise, disorderly conduct; the consumption of alcohol, or the use
of illegal drugs.
3. The Host or Operator shall, upon notification that occupants and/or guests
of his or her STR have created unreasonable noise or disturbances. engaged in disorderly
conduct or committed violations of any Law, including those pertaining to noise.disorderly
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0RDiNAN'CE NO. 4238
conduct, the consumption of alcohol or the use of illegal drugs, promptly prevent a
recurrence of such conduct by those occupants or guests.
4. The 1-lost or Operator of the STR unit shall post a copy of the STR Permit
and the STR Pennit conditions in a conspicuous place within the STR.
5. The Host or Operator shall provide a Guest parking plan to the City for
approval prior to issuance of a STR Permit.
6. The maximum number of guests who may occupy the STR at one time is
two persons per bedroom, plus two additional guests (including children). Lofts that meet
California Building Code egress requirements are considered a bedroom for the purposes
of the occupancy calculation. in no event may the maximum occupancy exceed ten (10)
persons in any STR. Large-scale events (i.e., exceeding maximum allowed occupancy)
such as commercial parties, weddings, fundraisers, and conferences, are prohibited.
F. Eligibility requirements. In addition to any specific STR Permit requirements set
forth the by the Director, the following requirements must be met at the time of submitting a
STR Permit application:
1. The dwelling unit shall not be a deed restricted affordable housing unit, in
a special group residence, a Single Room Occupancy (as defined by the City "Zoning
Code). or included on the Prohibited Buildings List.
2. The Operator or Host shall not be granted a permit for more than one STR
within the City of Huntington Beach (including Sunset Beach).
3. There will only be one STR permit issued per property except in multi-
family single lot subdivisions (i.e. condominiums or townhomes) the nuniber of STR
Permits allowed shall be as follows:
\'umber of units per property Number of STR Permits
Up to 3 1
4 or more 3
4. The STR Operator shall identify, to the satisfaction of the City, a Local
Contact Person, who shall be available twenty-four (24) hours per day, seven (7) days a
week for: (1) responding within one (1) hour to complaints regarding the condition,
operation, or conduct of the STR or its occupants-, and (2) taking any remedial action
necessary to resolve such complaints. In the event the STR is "hosted", the Host shall be
the Local Contact Person.
5. The dwelling unit or property used as a STR shall not be the subject of any
active or pending code enforcement actions or violations pursuant to the City's N4unicipal
Code.
6. if the dwelling unit or property used as a STR is subject to the rules of a
homeowners' or condominium association, Short-Term Rental activity must comply with
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ORDINANCE NO. 4238
those rules and this Chapter shall not be inferred to grant any permission that invalidates
or supersedes any provisions of those homeowners' or condominium associations.
7. The Host or Operator shall sign an indemnification and hold harmless
agreement in a form approved by the City Attorney, agreeing to indemnify, save; protect,
hold harmless, and defend the City of Huntington Beach, the City Council of the City of
Huntington Beach, individually and collectively, and the City of Huntington Beach
representatives, officers, officials, employees, agents, and volunteers from any and all
claims, demands, damages, fines, obligations, suits,judgments, penalties, causes of
action, losses, liabilities, or costs at any time received, incurred, or accrued as a result of,
or arising out of the SCR I-lost or Operator's actions or inaction in the operation,
occupancy, use, and/or maintenance of the Short-Tenn Rental.
8. The STR shall be a legally permitted dwelling unit. Accessory Dwelling
Units or Junior Accessory Dwelling Units may be permitted as a STR only if the unit was
legally established prior to the effective date of this Ordinance and otherwise meets the
requirements of this Chapter.
G. The host/Operator shall provide proof that the STR is not prohibited by
the Homeowners' Association Conditions Covenants and Restrictions or any other conunumty
standards/guidelines, applicable to the proposed STR.
SECTION 4. That Chapter 5.120.040 of the Huntington Beach Nfunicipal Code is
hereby amended to read as follows:
5.120.040 ST1Z Regulations.
A. All marketing and advertising of a SIR, including any listing on a Hosting
Platform, shall clearly list the City-issued STR Permit number.
B. STR is prohibited in any part of the property not approved and permitted for
residential use including, but not limited to, vehicle(s) parked on the property, storage sheds,
trailer(s), garage(s), boat(s) or similar watercraft, tree house(s), or any temporary structure(s),
including, but not limited to, tent(s).
C. Un-l-losted STRs are prohibited in the City of Huntington Beach except in Zone 2.
Existing Un-Hosted SIRS in Sunset Beach have until March 1, 2022 to obtain a STR Permit.
D. Each STR shall have a notice posted within the unit in a location clearly marked
and accessible to the Guest (e.g., posted on the refrigerator, included within a binder with
additional in(ormation on the unit, etc.), containing the following information:
1. The maximum number of occupants permitted in the unit:
2. Location of parking spaces-,
3. Trash and recycling pickup information;
4. Emergency contact information for police, fire, or emergency medical
services: and
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ORDINANCE NO. 4238
5. Evacuation plan for the unit showing emergency exit routes. exits, and fire
extinguisher locations.
E. The name of the local contact and a telephone number at which that person may
be reached on a twenty-four (24) hour basis posted in a place that can be read by a member of the
public without entering the STR.
I.. No sign shall be posted on the exterior of the STR to advertise the availability of
the unit.
G. It is unlawful for any STR Operator, Host, occupant; renter, lessee, person present
upon, or person having charge or possession of the STR premises, to make or continue to cause
to be made or continued any loud, unnecessary or unusual noise which disturbs the peace and
quiet of any neighborhood, or which causes discomfort or annoyance to any reasonable person of
normal sensitivities residing in the area, or which violates any provision of Chapter 8.40 ("Noise
Control') of the Huntington Beach Municipal Code-
H. The minimum age of STR Tenants shall be 25 years old.
I. Following compliance with California Streets and Highways Code 36600 et al..
STRs will become part of the Huntington Beach Tourism Business Improvement District (BID)
and comply with all requirements including paynnent of legally established BID Assessments.
J. The City will post STR contact information on the City website for the public to
access.
K. An STR may not be operated as any other commercial home-based business.
SLCCION 5. That Chapter 5.120.060 of the Huntington Beach Municipal Code is
amended to read as follows:
5.120.060 Hosting Platform Responsibilities.
A. Hosting platforms shall not process or complete any Booking Transaction for any
STR, unless the STR has a valid current STR Permit issued by the City. Hosting platforms are
required to list the STR Pernnit number and expiration date.
B. Within forty-five (45) days of the effective date of this Ordinance, Hosting
Platforms with listings located in the City shall provide to the City contact information of the
Hosting Platform-
C. A Flostine Platform with listings located in the City shall provide to the City on a
monthly basis, in a format specified by the City, the STR Permit number of each listing, the
name of tine person responsible for each listing, the address of each such listing, and, for each
Booking Transaction that occurs within the reporting period, the number of days booked, and the
total price paid for each rental.
D. Hosting Platforms shall remove any listings for STRs, including those on the
City's Prohibited Buildings List, from the platform upon notification by the City.
E. STR Hosts or Operators shall be responsible for collecting all applicable TOT and
TBID assessments and remitting the same to the City.
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ORDINANCE NO. 4238
F. All Hosting Platforms operating in the City must comply with all Federal, State,
or Local (including the Huntington Beach Municipal Code) laws.
SECTION 6. This ordinance shall become effective 30 days after its adoption.
PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a
regular meeting thereof held on the �� day of IVJYeflnb� 20 .
Mayor
ATTEST: APPROVED AS T RM:
City Clerk ity torney
RE VED AND a 'PROVED: INITIATED AND APPROVED:
AlTa Gtp
City Manager 4' —
Development Director
7
21-10466/269289
Ord. No. 4238
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss:
CITY OF HUNTINGTON BEACH )
1, ROBIN ESTANISLAU, the duly elected; qualified City Clerk of the
City of Huntington Beach, and ex-officio Clerk of the City Council of said City, do
hereby certify that the whole number of members of the City Council of the City of
Huntington Beach is seven; that the foregoing ordinance was read to said City Council at
a Regular meeting thereof held on October 19, 2021, and was again read to said City
Council at a Regular meeting thereof held on November 2, 2021, and was passed and
adopted by the affirmative vote of at least a majority of all the members of said City
Council.
AYES: Peterson. Bolton. Delgleize, Carr, Posey, Nloser, Kalmick
NOES: None
ABSENT: None
ABSTAIN: None
1,Robin EStan1518n,CITY CLERK of the City of Huntington
Beach and ex-ot7cio Clerk of the City Council,do hereby
certify that a synopsis of this ordinance has been published in
the Huntington Beach Ware on November 11 ,2021. %�b'�'►�l� `�o'�`�
In accordance with the City Charter of said City.
Robin Estanislau. Citv Clerk City Clerk and ex-officio Clerk
Depury Citv Clerk of the City Council of the City
of Huntington Beach; California
song-A.s6W7)
City of Huntington Beach F-DP- MTPO&W-776A/
File #: 21-753 MEETING DATE: 10/19/2021
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:
Approve for Introduction Ordinance No. 4238 amending Chapter 5.120 of the Huntington
Beach Municipal Code regulating Short-Term Rentals (STR)
Statement of Issue:
On September 21, 2021, the City Council directed staff to amend the Short-Term Rental Ordinance to
allow property owners in Sunset Beach more time to apply for an un-hosted short-term rental permit.
The new deadline to obtain an un-hosted STR permit in Sunset Beach is March 1, 2022.
Financial Impact:
There are no direct fiscal impacts associated with this action.
Recommended Action:
Approve for introduction Ordinance No. 4238, "An Ordinance of the City Council of the City of
Huntington Beach Amending Chapter 5.120 of the Huntington Beach Municipal Code Regulating
Short-Term Rentals." (Attachment No. 1)
Alternative Action(s):
Do not approve the recommended action and direct staff accordingly.
Analysis:
The Short-Term Rental Ordinance was adopted on January 19, 2021 and became effective on
February 19, 2021. The Short-Term Rental Permit fee resolution was adopted on March 1, 2021.
The ordinance allows property owners in Sunset Beach to obtain an un-hosted short-term rental
permit within six months of the adoption date of the fee resolution.
After the adoption of the ordinance, the City Council created an Ad Hoc Short-Term Rental
Committee to solicit input from stakeholders and discuss whether changes were needed to the
ordinance. On September 21 , 2021, staff shared the Ad Hoc Committee's recommendations with the
entire City Council. After some discussion, the City Council decided to allow property owners in
Sunset Beach to obtain an un-hosted short-term rental permit within one year of the adoption date of
City of Huntington Beach Page 1 of 2 Pnnted on 10/13/2021
o ne-ea e, l eg star"'
File #: 21-753 MEETING DATE: 10/19/2021
the fee resolution (March 1, 2022). The City Council directed staff to prepare an amendment to the
Short-Term Rental Ordinance to implement the Council's direction.
The amendment to the Short-Term Rental Ordinance includes the following:
1. extending the date for property owners in Sunset Beach to obtain an un-hosted short-term
rental permit to March 1 , 2022
2. clarifying the definition of "short-term rental operator"
3. clarifying the responsibility of collecting and remitting TOT and TBID assessments
The two other changes listed above are non-substantive clean up items that do not affect the STR
policies originally adopted by the City Council.
Environmental Status:
The amendment to the Huntington Beach Municipal Code is exempt from the California
Environmental Quality Act (CEQA) pursuant to Section 15061 (b)(3) (General Rule) of the CEQA
Guidelines, because there is no potential for the amendment to have a significant effect on the
environment.
Strategic Plan Goal:
Economic Development & Housing
Attachment(s):
1 . Ordinance No. 4238
2. Legislative Draft of HBMC Chapter 5.120
City of Huntington Beach Page 2 of 2 Printed on 10/13/2021
powerea oy Legl5ar°
ORDINANCE NO. 4238
AN ORDINANCE OF THE CITY COUNCIL. OF THE CITY OF HUNTINGTON BEACH
AMENDING CHAPTER 5.120 OF THE HUNTINGTON BEACH MUNICIPAL CODE
REGULATING SHORT-TERM RENTALS
The City Council of the City of Huntington Beach ordains as follows:
SECTION 1. That Chapter 5.120.010 of the Huntington Beach Municipal Code is
hereby amended to read as follows:
5.120.010 Purpose.
The purpose of this Chapter is to establish regulations, standards, and a permitting
process governing the renting or leasing of privately owned visitor serving residential dwelling
units on a short-term basis in order to maintain the long-term rental housing stock in the City;
ensure the collection and payment of Transient Occupancy Taxes ("TOT"); safeguard the
residents of the City of Huntington Beach by ensuring that Short-Term Rental activities do not
threaten the character of residential neighborhoods; and ensuring that such Short-Term Rental
activities do not become a nuisance, or threaten the public health, safety, or welfare of
neighboring properties. This Chapter will establish two Zones in the City where Short-Term
Rentals are permitted. Zone 1 will consist of all areas of the City excluding Sunset Beach. Zone
2 will consist of Sunset Beach. In Zone 1 and Zone 2, Short-Term Rentals are permitted in
owner occupied residential dwelling units as set forth herein. In "Zone 2, Short-Term Rentals are
permitted for existing owner"un-occupied" residential dwelling units who obtain a permit by
March 1, 2022. After March 1, 2022, no new permits for owner tin-occupied residential
dwelling units will be issued.
SECTION 2. That Chapter 5,120.020 of the Huntington Beach Municipal Code is
hereby amended to read as follows:
5.120.020 Definitions.
A. "Booking Transaction' means any reservation and/or payment service provided
by a person or entity who facilitates a Short-Term Rental transaction between a prospective guest
and a Short-Term Rental Host or Operator.
B. "City" means City of Huntington Beach.
C. "Director" means the Director of Community Development or a designee.
D "Guest" means any person or persons renting a Short-Term Rental as a transient
occupant.
E. "Host" means a property owner who is an occupier of the property at the time of,
and for the duration of, the Short-Term Rental.
F. "Hosted Stay" means a Short-Term Rental at a Primary Residence whereby the
ORDINANCE NO. 4238
Host occupies the Short-Term Rental property and 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).
G. "Hosting Platform" means a person or entity that participates in the Short-Term
Rental business in exchange for a fee or other compensation, directly or indirectly through an
agent or intermediary, by conducting a Booking Transaction for a Hosted or Un-Hosted Short-
Term Rental using any medium of facilitation.
H. "Local Contact Person" means the Operator or Host or person designated thereof
to respond to and take remedial action regarding Short-Term Rental issues or complaints.
I. "Platform Agreement" means a signed agreement between a Hosting Platform and
the City, which, among other things, provides that the Hosting Platform will collect and submit
Transient Occupancy Tax and any Improvement District Assessment established pursuant to
California Streets and Highways Code sections 36500 and 36600 to the City on behalf of Short-
Term Rental Hosts or Operators.
J. "Primary Residence" means a person's permanent residence or usual place of
return for housing as documented by at least two (2) of the following: driver's license; voter
registration; tax documents showing the residential unit as the person's residence; or a utility bill.
K. "Prohibited Buildings List" means a list identifying the address(es) of all
buildings whose owner(s), including any applicable homeowners' association or board of
directors, have notified the City, pursuant to City procedures, that Short-Term Rentals are not
permitted to operate anywhere in such building, including deed restricted affordable housing
units.
L. "Short-Term Rental ("STR")" means a residential dwelling unit, or portion
thereof, that is offered or provided to a paying Guest(s) by a Short-Term Rental Host or Operator
for thirty (30) or fewer consecutive nights. The term "Short-Term Rental" shall not include
hotels, motels, inns, or bed and breakfast inns.
M. "Short-Term Rental Advertisement" means any method of soliciting use of a
dwelling unit for Short-Term Rental purposes.
N. "Short-Term Rental Operator" or "Operator" means property owner or a property
manager of a dwelling unit in Sunset Beach, or portion thereof, who offers or provides that
dwelling unit, or portion thereof, for an Un-Hosted Short-Term Rental.
O. "Short-Term Rental Permit" or "Permit" means a Permit, with a Permit number,
issued by the City to allow Hosted or Un-Hosted Short-Tenn Rentals.
P. "Short-Term Rental Tenant" means a person who has entered into a Short-Term
rental agreement for a dwelling unit in exchange for Short-Term occupancy of the dwelling unit.
Q. "Transient Occupancy Tax" ("TOT") means local Transient Occupancy Tax as set
forth in Chapter 3.28 of the Huntington Beach Municipal Code.
R. "Un-Hosted Short-Term Rental" means a Short-Term Rental in Sunset Beach,
where there is no Host and the Operator resides off-site during the Guest's stay.
S. "Zone 1" means the City of Huntington Beach excluding the property located
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ORDINANCE NO. 4238
within the Sunset Beach Specific Plan.
T. "Zone 2" means property located within the Sunset Beach Specific Platt.
SECTION 3. That Chapter 5.120.030 of the Huntington Beach Municipal Code is
hereby amended to read as follows:
5,120.030 Permit Required.
A. No person or entity shall advertise, rent, or operate a Short-Term Rental (STR) in
the City unless a Permit has been issued by the City pursuant to this Chapter. An Operator or
Host of the STR shall apply with the City to obtain a Permit and shall be responsible for
complying with all requirements of this Chapter. Application for a STR Permit shall be in a
form prescribed by the Director and include all information determined by the Director to be
necessary to evaluate the eligibility of the Host or Operator, consistent with this Chapter.
B. An application for a STR Permit shall be accompanied by a fee established by
resolution of the City Council, provided, however, the fee shall be no greater than necessary to
defer the cost incurred by the City in administering the provisions of this Chapter.
C. STR Hosts or Operators shall apply for STR Permit pursuant to this Chapter.
Existing unpermitted STR Hosts or Operators shall apply for a STR Permit within six months
after the effective date of resolution adopting the STR Permit fee. The Host or Operator shall
provide proof of property ownership and shall be the person that signs the application.
D. A STR Permit is valid for two (2) years from the date of issuance. The STR
Permit is personal and may not be transferred or assigned and does not run with the land. A STR
Permit may be renewed annually if STR Operator or Host: (1) pays the renewal fee; (2) provides
information concerning any changes to the previous application for, or renewal of, the STR
Permit; (3) submits records to demonstrate compliance with this Chapter as required by the
Director. Failure to submit a renewal application to the City at least thirty (30) days prior to the
expiration of the STR Permit shall render the STR Permit and permission to operate an STR null
and void.
E. STR Permits issued pursuant to this Chapter are subject to the following standard
STR permit conditions:
1. The I-lost or Operator shall, by written agreement with the Tenant, limit
overnight occupancy of the STR to a specific number of occupants, with the number of
occupants not to exceed that permitted by the provisions of this Section.
2. The Host or Operator shall insure that the occupants and/or guests of the
STR do not create unreasonable noise or disturbances, engage in disorderly conduct, or
violate provisions any Federal, State, or Local (including the Huntington Beach Municipal
Code) law pertaining to noise, disorderly conduct, the consumption of alcohol, or the use
of illegal drugs.
3. The Host or Operator shall, upon notification that occupants and/or guests
of his or her STR have created unreasonable noise or disturbances, engaged in disorderly
conduct or committed violations of any Law, including those pertaining to noise, disorderly
3
21-10466/269289
ORDINANCE NO. 4238
conduct, the consumption of alcohol or the use of illegal drugs, promptly prevent a
recurrence of such conduct by those occupants or guests.
4. The Host or Operator of the STR unit shall post a copy of the STR Permit
and the STR Permit conditions in a conspicuous place within the STR.
5. The Host or Operator shall provide a Guest parking plan to the City for
approval prior to issuance of a STR Permit.
6. The maximum number of guests who may occupy the SIR at one time is
two persons per bedroom, plus two additional guests (including children). Lofts that meet
California Building Code egress requirements are considered a bedroom for the purposes
of the occupancy calculation. In no event may the maximum occupancy exceed ten (10)
persons in any STR. Large-scale events (i.e., exceeding maximum allowed occupancy)
such as commercial parties, weddings, fundraisers, and conferences, are prohibited.
P. Eligibility requirements. In addition to any specific STR Permit requirements set
forth the by the Director, the following requirements must be met at the time of submitting a
STR Permit application:
1. The dwelling unit shall not be a deed restricted affordable housing unit, in
a special group residence, a Single Room Occupancy (as defined by the City Zoning
Code), or included on the Prohibited Buildings List.
2. The Operator or Host shall not be granted a permit for more than one STR
within the City of Huntington Beach (including Sunset Beach).
3. There will only be one STR permit issued per property except in multi-
family single lot subdivisions (i.e. condominiums or townhomes) the number of STR
Permits allowed shall be as follows:
Number of units per property Number of STR Permits
Upto3 1
4 or more 3
4. The STR Operator shall identify, to the satisfaction of the City, a Local
Contact Person, who shall be available twenty-four (24) hours per day, seven (7) days a
week for: (1) responding within one (1) hour to complaints regarding the condition,
operation, or conduct of the STR or its occupants; and (2) taking any remedial action
necessary to resolve such complaints. In the event the STR is "hosted", the Host shall be
the Local Contact Person.
5. The dwelling unit or property used as a STR shall not be the subject of any
active or pending code enforcement actions or violations pursuant to the City's Municipal
Code.
6. If the dwelling unit or property used as a STR is subject to the rules of a
homeowners' or condominium association, Short-Term Rental activity must comply with
4
21-10466/269289
ORDINANCE NO. 4238
those rules and this Chapter shall not be inferred to grant any permission that invalidates
or supersedes any provisions of those homeowners' or condominium associations.
7. The Host or Operator shall sign an indemnification and hold harmless
agreement in a form approved by the City Attorney, agreeing to indemnify, save, protect,
hold harmless, and defend the City of Huntington Beach, the City Council of the City of
Huntington Beach, individually and collectively, and the City of Huntington Beach
representatives, officers, officials, employees, agents, and volunteers from any and all
claims, demands, damages, fines, obligations, suits,judgments, penalties, causes of
action, losses, liabilities, or costs at any time received, incurred, or accrued as a result of,
or arising out of the STR Host or Operator's actions or inaction in the operation,
occupancy, use, and/or maintenance of the Short-Term Rental.
8. The STR shall be a legally permitted dwelling unit. Accessory Dwelling
Units or Junior Accessory Dwelling Units may be permitted as a STR only if the unit was
legally established prior to the effective date of this Ordinance and otherwise meets the
requirements of this Chapter.
G. The Host/Operator shall provide proof that the STR is not prohibited by
the Homeowners' Association Conditions Covenants and Restrictions or any other community
standards/guidelines, applicable to the proposed STR.
SECTION 4. That Chapter 5.120.040 of the Huntington Beach Municipal Code is
hereby amended to read as follows:
5.120.040 STR Regulations.
A. All marketing and advertising of a STR, including any listing on a Hosting
Platform, shall clearly list the City-issued STR Permit number.
B. STR is prohibited in any part of the property not approved and permitted for
residential use including, but not limited to, vehicle(s) parked on the property, storage sheds,
trailer(s), garage(s), boat(s) or similar watercraft, tree house(s), or any temporary structure(s),
including, but not limited to, tent(s).
C. Un-Hosted STRs are prohibited in the City of Huntington Beach except in Zone 2.
Existing Un-Hosted STRs in Sunset Beach have until March 1, 2022 to obtain a STR Permit.
D. Each STR shall have a notice posted within the unit in a location clearly marked
and accessible to the Guest (e.g., posted on the refrigerator, included within a binder with
additional information on the unit, etc.), containing the following information:
1. The maximum number of occupants permitted in the unit;
2. Location of parking spaces;
3. Trash and recycling pickup information;
4. Emergency contact information for police, fire, or emergency medical
services; and
5
21-10466/269289
ORDINANCE NO. 4238
5. Evacuation plan for the unit showing emergency exit routes, exits, and fire
extinguisher locations.
E. The name of the local contact and a telephone number at which that person may
be reached on a twenty-four(24) hour basis posted in a place that can be read by a member of the
public without entering the STR.
F. No sign shall be posted on the exterior of the STR to advertise the availability of
the unit.
G. It is unlawful for any STR Operator, Host, occupant, renter, lessee, person present
upon, or person having charge or possession of the STR premises, to make or continue to cause
to be made or continued any loud, unnecessary or unusual noise which disturbs the peace and
quiet of any neighborhood, or which causes discomfort or annoyance to any reasonable person of
normal sensitivities residing in the area, or which violates any provision of Chapter 8.40 ("Noise
Control") of the Huntington Beach Municipal Code.
H. The minimum age of STR Tenants shall be 25 years old.
I. Following compliance with California Streets and Highways Code 36600 et al.,
STRs will become part of the Huntington Beach Tourism Business Improvement District (BID)
and comply with all requirements including payment of legally established BID Assessments.
J. The City will post STR contact information on the City website for the public to
access.
K. An STR may not be operated as any other commercial home-based business.
SECTION 5. That Chapter 5.120.060 of the Huntington Beach Municipal Code is
amended to read as follows:
5.120.060 Hosting Platform Responsibilities.
A. Hosting platforms shall not process or complete any Booking Transaction for any
STR, unless the STR has a valid current STR Permit issued by the City. Hosting platforms are
required to list the STR Permit number and expiration date.
B. Within forty-five (45) days of the effective date of this Ordinance, Hosting
Platforms with listings located in the City shall provide to the City contact information of the
Hosting Platform.
C. A Hosting Platform with listings located in the City shall provide to the City on a
monthly basis, in a format specified by the City, the STR Permit number of each listing, the
name of the person responsible for each listing, the address of each such listing, and, for each
Booking Transaction that occurs within the reporting period; the number of days booked, and the
total price paid for each rental.
D. Hosting Platforms shall remove any listings for STRs, including those on the
City's Prohibited Buildings List, from the platform upon notification by the City.
E. STR Hosts or Operators shall be responsible for collecting all applicable TOT and
TBID assessments and remitting the same to the City.
6
21-10466/269289
ORDINANCE NO. 4238
F. All Hosting Platforms operating in the City must comply with all Federal, State,
or Local (including the Huntington Beach Municipal Code) laws.
SECTION 6. This ordinance shall become effective 30 days after its adoption.
PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a
regular meeting thereof held on the day of 20_
Mayor
ATTEST: APPROVED AS TO FORM:
City Clerk City Attorney "
REVIEWED AND APPROVED: INITIATED AND APPROVED:
City Manager Community Development Director
7
21-10466/269289
Attachment s2
LEGISLATIVE DRAFT - Ordinance No. 4238
HBMC CHAPTER 5.120
5.120.010 Purpose
The purpose of this Chapter is to establish regulations, standards; and a permitting process
governing the renting or leasing of privately owned visitor serving residential dwelling units on a
short-term basis in order to maintain the long-term rental housing stock in the City; ensure the
collection and payment of Transient Occupancy Taxes ("TOT"); safeguard the residents of the
City of 1-luntington Beach by ensuring that Short-Term Rental activities do not threaten the
character of residential neighborhoods; and ensuring that such Short-Term Rental activities do
not become a nuisance, or threaten the public health, safety, or welfare of neighboring properties.
['his Chapter will establish two Zones in the City where Short-Term Rentals are permitted. Zone
I will consist of all areas of the City excluding Sunset Beach. `Lone 2 will consist of Sunset
Beach. In "Lone I and "Lone 2, Short-Term Rentals are permitted in owner occupied residential
dwelling units as set forth herein. In Zone 2. Short-Term Rentals are permitted for existing
owner "un-occupied" residential dwelling units who obtain a permit by March 1. 2022 wiN�4n stx
(6) . nths of(lie efretive date f the _ ,el , est fee(s). After larch I
2p22 sit(Fr) n enths, no new permits for owner un-occupied residential dwelling units will be
issued.
5.120.020 Definitions
A. "Booking Transaction' means any reservation and/or payment service provided
by a person or entity who facilitates a Short-Term Rental transaction between a prospective guest
and a Short-Term Rental Host or Operator.
13. "City" means City of Huntington Beach.
C. "Director" means the Director of Community Development or a designee.
D "Guest' means any person or persons renting a Short-Term Rental as a transient
occupant.
L. "Host" means a property owner who is an occupier of the property at the time of,
and for the duration of. the Short-Term Rental.
1,-. "Hosted Stay" means a Short-Term Rental at a Primary Residence whereby the
Flost occupies the Short-Term Rental property and 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).
G. "Hosting Platform' means a person or entity that participates in the Short-Term
Rental business in exchange for a fee or other compensation, directly or indirectly through an
agent or intermediary, by conducting a Bookina Transaction for a Hosted or Un-Flosted Short-
Term Rental using any medium of facilitation.
FI. "Local Contact Person" means the Operator or Host or person designated thereof
to respond to and take remedial action regarding Short-Term Rental issues or complaints.
1. "Platforrtt Agreement' means a signed agreement between a Hosting Platform and
the City, which, among other things, provides that the Hosting Platform will collect and submit
1
Transient Occupancy Tax and any Improvement District Assessment established pursuant to
California Streets and Highways Code sections 36500 and 36600 to the City on behalf of Short-
Ternt Rental Hosts or Operators.
J. "Primary Residence" means a person's permanent residence or usual place of
return for housing as documented by at least two (2) of the following: driver's license; voter
registration; tax documents showing the residential unit as the person's residence; or a utility bill.
K. "Prohibited Buildings List' means a list identifying the address(es) of all
buildings whose owner(s), including any applicable homeowners' association or board of
directors, have notified the City, pursuant to City procedures. that Short-Term Rentals are not
permitted to operate anywhere in such building, including deed restricted affordable housing
units.
L. "Short-Term Rental ("STR")" means a residential dwelling unit, or portion
thereof, that is offered or provided to a paying GnCSI(s) by a Short Term Rental Host or Operator
for thirty (30) or fewer consecutive nights. The term "Short-Term Rental' shall not include
hotels, motels, inns, or bed and breakfast ions.
LM. "Short=Tenn Rental Advertisement' means any method of soliciting use of a
dwelling unit for Short-Term Rental purposes.
N. "Short-Term Rental Operator" or "Operator' means property owner or�ja2n
manager of a dwelting unit in Sunset Beach, or portion thereof, who offers or provides that
dwelling unit, or portion thereof, for an Un-Hosted Short-Term Rental.
0. "Short-Term Rental Permit" or "Permit" means a Permit, with a Permit number_
issued by the City to allow Hosted or Un-Hosted Short'Term Rentals.
P. "Short-Term Rental Tenant" means a person who has entered into a Short-Term
rental agreement for a dwelling unit in exchange for Short-Term occupancy of the dwelling unit.
Q. "Transient Occupancy Tax" ("TOT") means local Transient Occupancy Tax as set
forth in Chapter 3.23 of the Huntington Beach Nlunicipal Code.
R. "Un-1-Posted ShortTernh Rental" means a Short-Term Rental in Sunset Beach,
where there is no Host and the Operator resides oil' site during the Guest's stay.
S. "Zone 1" means the City of Huntington Beach excluding the properly located
within the Sunset Beach Specific Plan.
T. "Zone 2" means property located within the Sunset Beach Specific Plan.
5.120.030 Permit Required
A. No person or entity shall advertise, rent, or operate a Short-Term Rental (STR) in
the City unless a Permit has been issued by the City pursuant to this Chapter. An Operator or
Host of the STR shall apply with the City to obtain a Permit and shall be responsible for
complying with all requirements of this Chapter. Application for a STR Permit shalt be in a
form prescribed by the Director and include all information determined by the Director to be
necessary to evaluate the eligibility of the Host or Operator, consistent with this Chapter.
R. An application for a S'TR Permit shall be accompanied by a fee established by
resolution of the City Council, provided, however, the fee shalt be no greater than necessary to
2
defer the cost incurred by the City in administering the provisions of this Chapter.
C. STR Hosts or Operators shall apply for STR Permit pursuant to this Chapter.
Existing unpermitted STR Hosts or Operators shall apply for a STR Permit within six months
after the effective date of resolution adopting the SIR Permit fee. The Host or Operator shall
provide proof of property ownership and shalt be the person that signs the application.
D. A STR Permit is valid for one (1) byQ 21vea front the date of issuance. The
STR Permit is personal and may not be transferred or assigned and does not run with the land. A
STR Permit may be renewed annually if STR Operator or Host: (1) pays the renewal fee-, (2)
provides information concerning any changes to the previous application for, or renewal of, the
STR Permit (3) submits records to demonstrate compliance with this Chapter as required by the
Director. Failure to submit a renewal application to the City at least thirty (30) days prior to the
expiration of the STR Permit shall render the. STR Permit and permission to operate an STR null
and void.
E. STR Permits issued pursuant to this Chapter are subject to the following standard
STR permit conditions:
1. The Host or Operator shall, by written agreement with the Tenant, limit overnight
occupancy of the STR to a specific number of occupants, with the number of occupants not to
exceed that permitted by the provisions of this Section.
2. The Host or Operator shall insure that the occupants and/or guests of the STR do
not create unreasonable noise or disturbances, engage in disorderly conduct, or violate provisions
any Federal. State, or Local (including the Huntington Beach Municipal Code) law pertaining to
noise. disorderly conduct, the consumption of alcohol, or the use of illegal drugs.
3. The Host or Operator shall, upon notification that occupants and/or guests of his
or her STR have created unreasonable noise or disturbances, engaged in disorderly conduct or
committed violations of any Law, including those pertaining to noise, disorderly conduct, the
consumption of alcohol or the use of illegal drugs, promptly prevent a recurrence of such conduct
by those occupants or guests.
4. The I-lost or Operator of the STR unit shall post a copy of the STR Permit and the
STR Permit conditions in a conspicuous place within the STR.
5. The Host or Operator shall provide a Guest parking plan to the City for approval
prior to issuance of a STR Permit.
6. The maxinuun number of guests who may occupy the STR at one time is two
persons per bedroom, plus two additional guests (including children). Lofts that meet California
Building Code egress requirements are considered a bedroom for the purposes of the occupancy
calculation. In no event may the maxinnun occupancy exceed ten (10) persons in any STR. Large-
scale events (i.e., exceeding maximum allowed occupancy) such as commercial parties, weddings,
fundraisers, and conferences, are prohibited.
F. Eligibility requirements. In addition to any specific SIR Permit requirements set
forth the by the Director, the following requirements must be met at the time of submitting a
STR Permit application:
I. The dwelling unit shall not be a dced restricted affordable housing unit, in
a special group residence, a Single Room Occupancy (as defined by the Cite Zoning
3
Code), or included on the Prohibited Buildings List.
2. The Operator or I-lost shall not be granted a permit for more than one STR
within the City of Huntington Beach (including SnnSet Beach).
3. There will only be one STR permit issued per property except i❑ nndti-
family single lot subdivisions (i.e. condominiums or townhomcs) the number of STR
Permits allowed shall be as follows:
Number of units per property Number of STR Permits
Upto3 1
4 or more 3
4. The STR Operator shall identify, to the satisfaction of the City. a Local
Contact Person, who shall be available twenty-four (24) hours per day. seven (7) days a
week for: (1) responding within one (1) hour to complaints regarding the condition,
operation, or conduct of the STR or its occupants-, and (2) taking any remedial action
necessary to resolve such complaints. In the event the STR is "hosted", the Host shall be
the Local Contact Person.
d. The dwelling unit or property used as a STR shall not be the subject of any
active or pending code enforcement actions or violations pursuant to the City's i\•tunicipal
Code.
6. If the dwelling unit or property used as a STR is subject to the rules of a
homeowners' or condominium association, Short-Term Rental activity must comply with
those rules and this Chapter shall not be inferred to grant any permission that invalidates
or supersedes any provisions of those homeowners' or condominium associations.
7. The I-lost or Operator shall sign an indemnification and hold harmless
agreement in a form approved by the City Attorney; agreeing to indemnify, save, protect,
hold harmless. and defend the City of Huntington Beach. the City Council of the City of
Huntington Beach, individually and collectively, and the City of Huntington Beach
representatives, officers, officials, employees, agents, and volunteers from any and all
claims, demands, damages, fines, obligations, suits,judgments, penalties, causes of
action. losses; liabilities, or costs at any time received, incurred, or accrued as a result Of,
or arising out of the STR Host or Operatot''s actions or inaction in the operation,
occupancy, use, and/or maintenance of the Short-Tenn Rental.
8. The STR shall be a legally permitted dwejling unit. Accessory Dwelling
Units or Junior Accessory Dwelling Units may be permitted as a STR only if the unit was
legally established prior to the effective date of this Ordinance and otherwise meets the
requirements of this Chapter.
G. The Flost/Operator shall provide proof that the STR is not prohibited by the
Homeowners' Association Conditions Covenants and Restrictions or any other community
standards/guidelines, applicable to the proposed STR.
4
5.120.040 STR Regulations
A. All marketing and advertising of a S•TR, including any listing on a Hosting
Platform, shall clearly list the City-issued STR permit number.
B. STR is prohibited in any part of the properly not approved and permitted for
residential use including, but not limited to, vehicle(s) parked on the property, storage sheds,
trailer(s), garage(s), boat(s) or similar watercraft, tree house(s), or any temporary structure(s),
including, but not limited to, tent(s).
C. Un-Hosted STRs are prohibited in the City of Huntington Beach except in "Lone 2.
Existing Un-Hosted SIRS in Sunset Beach have until March_l 2Q22. 6 rmontis� ^^
date ^r�eption of l ee to obtain a STR Permit.
D. Each STR shall have a notice posted within the unit in a location clearly marked
and accessible to the Guest (e.g., posted on the refrigerator, included within a binder with
additional information on the unit, etc.), containing the following information:
1. The maximum number of occupants permitted in the unit;
2. Location of parking spaces;
3. Trash and recycling pickup information;
4. Fmergency contact information for police, fire, or emergency medical
services; and
5. Evacuation plan for the unit shoving emergency exit routes,exits, and fire
extinguisher locations.
F. The name of the local contact and a telephone number at which that person may
be reached on a twenty-four (24) hour basis posted in a place that can be read by a member of the
public without entering the STR.
1.. No sign shall be posted on the exterior of the STR to advertise the availability of
the unit.
G. It is unlawful for any STR Operator, Host, occupant, renter, lessee, person present
upon, or person having charge or possession of the STR premises. to make or continue to cause
to be made or continued any loud; unnecessary or unusual noise which disturbs the peace and
quiet of any neighborhood; or which causes discomfort or annoyance to any reasonable person of
normal sensitivities residing in the area, or which violates any provision of Chapter 3.40 ("Noise
Control") of the Huntington Beach Municipal Code.
H. The minimum age of STR Tenants shall be 25 vcars old.
1. Following compliance with California Streets and Highways Code 36600 et a/.,
STRs will become part of-the Huntington Beach Tourism Business Improvement District (BID)
and comply with all requirements including payment of legally established BID Assessments.
J. The City will post STR contact information on the City website for the public to
access.
K. An SCR may not be operated as any other commercial home-based business.
5
5.120.060 Hosting Platform Responsibilities
A. Hosting platforms shall not process or complete any Booking Transaction for any
STR, unless the S'fR has a valid current STR PCI'mit issued by the City. Hosting platforms are
required to list the STR Permit number and expiration date.
B. Within forty-live (45) days of the effective date of this Ordinance, Hosting
Platforms with listings located in the City shall provide to the City contact information of the
Hosting Platform.
C. A Flosting Platform with listings located in the City shall provide to the City on a
monthly basis, in a format specified by the City. the STR Permit number of each listing, the
name of the person responsible for each listing, the address of each such listing, and, for each
Booking Transaction that occurs within the reporting period, the number of days booked, and the
total price paid fix each rental.
D. Hosting Platforns shall remove any listings far STRs, including those on the
City's Prohibited Buildings List, from the platfarm upon notification by the City.
L. Wesi+r}g Natfarttas-S-T�IQst_S zt Q orators shall be responsible for collecting all
applicable TOT and TBiD assessments and remitting the same to the City. Should a 'R�,:ostin
Nitt4o)fm "'Ir fu Rv All fill its respon"iibilitieS URder thiS Sian t2-AFI,he 1c r eStiliig PliitibMi and (lie
eN%ner-enter ii4e-WI-agro,.. eRl FegaFElin . the a ,F n r t ' �.seetien the owner shall
m reain-res nsNe-t;,_ ealleetion and e di . •r
p0 amccm-R,�—i-9 r-arim�-.�,��-[=avcaaflieltts-t#3c-rxvs o
12lat€er*444e�' nrerillget-and!e:=-�et1?H-to-ihC�C
1 . All Hosting Platforms operating in the City must comply with all Federal, State, or Local
(including the Huntington Beach ,Municipal Code) laws.
6
Moore, Tania
From: Kathryn Levassiur <levassiurk@gmail.com>
Sent: Monday, October 18, 2021 6:52 AM
To: supplementalcomm@surfcity-hb.org
Subject: Support for Item 32-with revisions
Attachments: 211017 STR Alliance Submission.pdf
Attached, for consideration of the council:
Sincerely,
Kathryn Levassiur
Huntington Beach Short-Term Rental Alliance
Cell: 714.343.7931
Email: infoahbstra.org lWebsite: hftos:/Avww.hbstra.org/
SUPPLEMENTAL
COMMUNICATION
h4egOng Date:_.4 _4�
Agenda Nem No.`_321i2/- �S�L
1
SUBMITTAL TO THE CITY COUNCIL
HUNTINGTON BEACH, CALIFORNIA
Date: October 18, 2021
From: HB Short Term Rental Alliance (Active Vacation Rental Owners)
Subject: Revision and Adoption of Ordinances Regulating Short-Term Rentals
RECOMMENDED ACTION FOR THE CITY COUNCIL:
1. Allow the owner of a multi-family complex to obtain more than one (1) permit for operating
vacation rentals (5.120.040#C)
2. Allow owners to provide unhosted stays in their dwelling (5.120.030#F.3)
3. Grandfather in operators currently operating short-term vacation rentals
BACKGROUND:
On December 21, 2020, the Huntington Beach City Council voted to approve Ordinance No. 4224
amending the Huntington Beach Municipal Code (HBMC) by adding Chapter 5.120 Short-Term Rentals
(STRs).
The purpose of this ordinance was to establish regulations for the use of privately owned residential
dwellings as short-term rentals to minimize the negative secondary effects on surrounding properties
and to ensure the collection and payment of transient occupancy taxes.
The HB Short Term Rental Alliance urges revisions to Ordinance 4224.
The language in the current ordinance is far more restrictive compared to other municipalities and
consequently prevents a majority of property owners the opportunity to comply or obtain a valid permit.
The ordinance can be better structured and managed with balanced terms and conditions in place.
Thank you for your consideration and the opportunity to submit comments,
On behalf of the HB Short Term Rental Alliance
Representing 235 Members and Growing
https://www ho5tra org
BRIEF
The growth in the short-term rental market is being driven by ample supply and demand. Travelers are
increasingly opting to stay in private residences and properties while on business or vacation.
Homeowners have found a financial safety net to offer their homes and multi-unit properties—either in
part or in whole —for rent on a short-term basis at rates that rival traditional hotels.
In response to citizen concerns, the HB Short-Term Rental Alliance has strived to be in the forefront to
work with the City and help craft a regulatory framework to control the impact of short-term rentals. A
reasonable regulatory framework has a greater advantage than an outright ban or policies that stifles
competition with limits on ownership, permits, and burdensome hosting requirements. Discriminatory
permit laws merely promote the act of picking winners and losers. Whereas, equitable and consistent
policies promote the tourism industry, promotes economic activity, generates transient occupancy tax
(TOT) revenue that is beneficial for the city, supports our community businesses, and allows short-term
rental operators to legally benefit from their rental properties.
Collecting TOT is an important step in leveling the playing field between short-term rental operators and
traditional hotel and rental operators. Another important step in leveling the playing field is to eliminate
limitations on short-term rental ownerships and permits, as well as unduly restrictions on hosts that
infringe on guests' privacy expectations. The goal is to preserve peace and quiet for all residents, allow
these residents who desire to rent their properties on a short-term basis to do so and to create another
product for travelers to enjoy our city and support our economy.
Furthermore, there are short-term operators in the area that have been in business for the last 5+years
and have indicated that they have not had any issues or disturbances. Former HB Chief of Police, Rob
Handy, said at a public council study session in 2019, "STR's are not a problem". Therefore, keeping a
level playing field for all short-term rentals in the area, as well as in California, boasts economic growth
and development, promoting significant tourism to the area. Calculations indicate that Huntington
Beach can collect as much as, if not more than $8 million a year in TOT— another big boast to the city
(Based on 800+ rentals, $200/night average, 14% collection).
Overall, the feedback from guests supports a preference in booking short-term rental stays in private
dwellings. For many, this provides guests the opportunity to stay in a coastal property that is walking
distance to the Huntington Beach entertainment that they otherwise would not be able to afford. Guests
state that the occupancy rates, location, parking, accessibility (no elevators and privacy), personal
interaction (many hosts greet their guests),comfort(feels like home), kitchen,and intimate settings have
drawn them to the area, which otherwise they would not have visited because they didn't want to or
because they couldn't afford to stay in a hotel.
PROPOSED REVISIONS
The HB Short-Term Rental Alliance proposes to revise and make the following changes, along with some
minor wording and organizational adjustments, pursuant to Ordinance 422.
1. Eliminate Restrictive Short-Term Rental Ownership and Permit Limits (5.2120.040#Q
During the introduction of the ordinances, short-term rental owners relied on an equitable and
a consistent framework of regulations to compete in the short-term rental and tourism market
with hotels and other short-term rental type properties. Existing state and federal laws do not
restrict the number of income-producing residential homes or properties owned by a person.
Existing state and federal laws only place limits on residential occupancy. Operators will be
subject to these existing occupancy limits.
The revised proposal eliminates the restriction on short-term home ownership and permit limits
set forth in the current ordinance. The intent of this revision is to create a consistent policy and
eliminate an unduly and burdensome system of regulatory limitations. The revision also creates
a level playing field between operators of hotel, motel, and other residential type income-
producing properties. The removal of restrictions will equitably allow all owners and operators
to determine how many residential units and occupants they are willing and able to operate
within the existing laws.
Furthermore, the ordinance will not allow short-term rentals on properties where they are now
forbidden pursuant to an applicable deed restriction. Such deed restrictions may include private
covenants, conditions, and restrictions.
Notably, there is significantly more organization with one (1) owner obtaining more than one
permit per their property versus three (3) separate owners obtaining separate licensing on a
property. Also, there are no complexes in Huntington Beach (HOA) that allow STR. The current
ordinance can be reasonably perceived as discriminatory and unfairly written, since it makes it
impossible for a non-HOA restricted person to perform STR on their own property within a
complex or in more than one (1) of their privately-owned units. In addition, the ordinance
infringes on an owner's ability to earn an income from their properties.
There should not be issues with allowing an owner of multiple units the right of managing and
operating their property as they have deemed fit and in compliance with state and federal laws.
Amending the ordinance would allow current owners to continue to make decisions and to
continue to operate their properties as STR on one (1)or more of their units, as opposed to being
shut down and forced out of the competitive tourism market. There should not be a limit on how
many owners can obtain STR permits, since this creates an unlevel playing field compared to
other short-term vacation rentals such as hotels, motels, corporate houses, bed and breakfasts,
etc. If issues arise, as with any business, then the city shall take further action.
2. Eliminate Hosted vs. Unhosted Restrictions (5.120.030#F.3)
Just like Sunset Beach, Huntington Beach should be held to the same standard of luxuries for the
guests that visit the area. Currently, there are 34 valid permits out of 850+ listings, which
indicates that the current permit structure is nearly impossible (0.04%) to obtain with all the
requirements—the greatest issue being the disparity of"hosted vs. unhosted" requirements.
Hosted dwelling requirements deter guests from visiting the area as they desire and expect
privacy. With a balanced regulatory framework and prudent requirements in place, as seen by
current vacation rentals on the platforms, the city should repeal the hosted requirements to
eliminate the current privacy infringement issues. Such action would create a consistent policy
that benefits all operators and their guests, instead of a select few.
The action to repeal the hosted requirement would also eliminate the ambiguity of a short-term
rental host to live in the same space as the guest. A guest traveling to the Huntington Beach area
has the reasonable expectation not to be chaperoned, monitored, or their privacy infringed upon
in any manner. Just like in any hotel or motel, a guest does not want the operator sharing the
living space. This type of privacy intrusion is no different than if the owner of a hotel was required
to have a presence in a penthouse booking. Hotel penthouses do not require a 'host' for short-
term stays, and neither should privately-owned residential spaces.
Furthermore, the hosted ordinance requirements create disparity and an unlevel playing field
between unhosted rental properties, hotels, motels, penthouses, corporate housing, etc. If the
intent is to have a host reside in a residential short-term rental unit to minimize or prohibit
gatherings, parties or noise, then the same requirements should apply to all rental properties
including hotel rooms, penthouses, corporate rentals, apartments, etc. Otherwise, a uniform
policy that is consistent to manage and operate rental properties should apply equally to any and
all short-term vacation rental businesses and corporations.
For example, if a hotel or motel guest invites a large party into a room or penthouse, it is the
responsibility of the hotel to halt such an event as soon as its discovered or a guest complains.
The same granted authority for hotels to evict a guest in violation of occupancy or party policies
would be exercised by short-term rental operators. Hence, a 'host' living on the property is not
essential for the city to control short-term rentals. The sound policy of requiring an owner or
property manager to respond within 60-minutes to a disturbance is fundamental and justifiable
in controlling short-term rentals.
Note that most often, short-term vacation operators have cameras to monitor guests coming in
and out of the properties as a means of eliminating or reducing potential disturbances. A
majority of operators, if not all, prohibit parties on the property and guests are advised of eviction
if party or noise nuisance restrictions are violated.
3. Grandfather In Operators Currently Operating Short-term Vacation Rentals
At minimum, we urge the Mayor and City Council Members to grandfather in current short-term
rental operators that have been providing vacation stays for visitors and families. Vacationers
rely on these operators to provide a low-cost option to visit the coast that would otherwise be
uncomfortable or unaffordable for them. Short-term vacation rental operators look forward to
obtaining permits and to operate under a legal framework of responsible behavior that benefits
sustainable tourism to the City of Huntington Beach and its residents and businesses.
SUMMARY
Short-term rentals can actually make neighborhoods stronger and increase cultural experiences. Some
property owners do not have enough money to maintain a building, which can result in a deteriorated
or blighted property. These owners have no interest in being landlords to tenants in need of affordable
housing or to handle the costs of servicing tenants on a long-term basis. What these owners found was
that maintaining dwelling units for short-term rentals helped them with financial stability, keep up with
properties, attract vacationers, and provide the means for vacationers to experience various
neighborhoods in the city.
Short-term rentals allow people to travel at the drop of a hat, accommodate families, and can bring
individual or apartment communities an occupancy boost.Guests tend to fall into a few basic categories.
1. People traveling cross-county with dogs that are too large to stay in a hotel or that need a yard.
2. People working temporarily in a location near the short-term rental property or vacationers who want
to cook their own meals and relax in a private setting or want to social-distance.
3. People with families who want more privacy and space than traditional hotels.
4. People who would never stay in a hotel because they want to know the neighborhoods of the cities
they visit and prefer staying in places that offers rich entertainment or beach experiences. These guests
would otherwise never be able have such an experience since they cannot afford the cost of long-term
rental or the means to purchase a home near the beach or popular entertainment districts.
As operators of short-term rentals, we urge the City to amend the ordinances and remove the barriers
that make it functionally impossible to operate this neighborhood-friendly type business. When
ordinances create an unlevel playing field for landlords who furnish their residences and let people rent
them for a night rather than a year, it creates a system that infringes on private property rights, stifles
competition, arbitrarily picks winners and losers, and minimizes revenues for the city.
ORDINANCE PROVISIONS
STAY REQUIREMENTS: 2-night minimum
PERMIT REQUIRED: STR Permit for each owned property (REPEAL: unhosted & hosted follow same
guidelines) - STR permit number must be included on all listings
INSURANCE: Proof of STR insurance required
MAXIMUM NUMBER OF ROOMS/GUESTS: 2 people per bedroom + 2 additional people (includes kids) —
Occupants shall not exceed that permitted by Building and Fire Codes ]property inspection/code
enforcer visit required and forms submitted]
ALLOWED ZONES: Zone 1 & 2 in Huntington Beach/Sunset Beach
SIGNAGE: Posted on exterior, must be visible (contact, occupancy, permit number)
PROOF OF OWNERSHIP: Title, trust, LLC, deed, etc. (REPEAL: allowed to obtain multiple permits if own
multiple properties with no cap/limit)
DAYTIME GUESTS: Follows maximum number of rooms/guests suggestion above
PARKING REQUIREMENTS: Entirely on site
TRASH: Must provide trash disposing instructions, and trash pickup days
CODE REQUIREMENTS: Must comply with Fire, Building, and Health & Safety Codes
CONTACT INFORMATION: Must have 24hr contact number for property owner or designated
representative. Must respond within 60 minutes of contact
ENFORCEMENT: Initial complaints to contact person then Code Enforcement
NOTIFY NIEGHBORS: 2 neighbors on either side, plus 3 on front and back
TOT: Yes, 14%
FEES: $624 application fee for each property address
WARNINGS: 3 violations against STR Host/Operator within 12-month period results in revocation of STR
Permit
QUIET HOURS: 10pm to 7am daily
Estanislau, Robin
From: Israelrejedakid@icloud.com Tejeda <info@email.actionnetwork.org>
Sent: Thursday, October 14, 2021 6:10 PM
To: supplementalcomm@ surf city-hb.org; CITY COUNCIL; Chi. Oliver; Gates, Michael
Subject: Thank you for protecting neighborhoods from STRs
Huntington Beach City Council and Staff.
Thank you for standing up to protect residents from the impacts of unhosted short-term
rentals by passing strong regulations on January 19, 2021 Short term rentals take housing
units off the market, turning them into unregulated hotels that are rented out to tourists on a
nightly basis In addition to driving up housing costs. visitors often use short term rentals to
throw parties, bringing noise and other nuances to residential neighborhoods. The City
Council made the right decision by passing short term rental regulations. Now, it is time to
move forward with enforcing that decision
Israelrejedakid@icloud com Tejeda
israeltejedakid@icloud.com
11866
Norwalk . California 90650
SUPPLEMENTAL.
COMANLIwATION
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