HomeMy WebLinkAboutItem 3 - TA 17-04 Short Term Rentals
DATE: June 27, 2017
TO: Honorable Chairman and Planning Commission
FROM: Lisa L. Flores, Planning Services Manager
By: Jordan Chamberlin, Associate Planner
SUBJECT: ORDINANCE NO. 2348 - TEXT AMENDMENT NO. TA 17-04 AMENDING
VARIOUS SECTIONS OF ARTICLE IX, CHAPTER 1 OF THE
MUNICIPAL CODE (“THE DEVELOPMENT CODE”) WITH AN
EXEMPTION FROM THE CALIFORNIA ENVIRONMENTAL QUALITY
ACT (CEQA) TO PROHIBIT SHORT-TERM RENTALS, HOME SHARING,
AND THE ADVERTISEMENT OF THESE USES
Recommendation: Adopt Resolution No. 1995 and Recommend
Approval to the City Council
SUMMARY
The Development Services Department has prepared Text Amendment No. 17-04 to
amend various sections of the Development Code to prohibit short-term rentals, home
sharing, and the advertisement of these uses. The City of Arcadia’s Development Code
currently does not address short-term rentals and home sharing. Due to concerns
raised by residents regarding the negative impacts of these uses to surrounding
neighborhoods, at its May 2, 2017 Study Session, the City Council directed staff to
prepare an ordinance to prohibit short-term rentals in residentially zoned properties.
It is recommended that the Planning Commission adopt the attached Resolution No.
1995 (Attachment No. 1) to recommend approval of Text Amendment No. TA 17-04 to
the City Council, based on the findings listed in this staff report, including that the Text
Amendments are Exempt under the California Environmental Quality Act (CEQA), and
direct staff to proceed with an ordinance and convey the Commission’s comments to the
City Council.
BACKGROUND
A short-term rental is a residential unit that is available for rent for a brief period of time,
typically less than 30 consecutive days. Short-term rentals allow guests to have
exclusive use of the entire property. Home sharing is similar to a short-term rental
except that the accommodations are shared and either the property owner or resident
TA No. 17-04
Short-Term Rentals and Home Sharing
June 27, 2017
Page 2 of 9
lives on-site throughout the visitors’ stay. Short-term rentals and home sharing have
been around for many years, located predominantly in vacation communities such as
Palm Springs, Big Bear, and coastal communities. With the rise of the sharing economy
and over 100 hosting platforms found on the internet, such as Airbnb, Homeaway, and
VRBO, it is easier than ever for property owners and residents to advertise a property
as available for a short-term rental or home share. Short-term rentals and home sharing
appeals to property owners and residents because they provide additional income by
offering a room or a home for rent that might otherwise go unused. The additional
income can help cover the cost of the home or other expenses. Due to the financial
benefit and how easy it is to list a property for rent, the use has found its way into many
suburban communities like Arcadia. The use offers guests flexibility and access to more
amenities, often for a cheaper price, compared to hotels. Kitchens, multiple bedrooms
and bathrooms, and outdoor areas, appeal to many different types of travelers such as
families with children, large groups, those traveling with pets. Guests can enjoy feeling
like a “local” in a residential neighborhood rather than feeling like a tourist in a hotel in a
commercial area.
However, there are a growing number of issues that cities around the State and nation
are dealing with regarding this use. The main issue is the nuisance activity that can
occur from these uses. The guests of short-term rentals and home shares are often in
“vacation-mode”. Due to the transient nature of the use, guests have little incentive to
keep good neighborly relations or abide by local jurisdictions’ regulations – guests may
not even be aware of local rules. This can result in unruly neighbors, excessive parties
and trash, illegal parking, and other activities that are incompatible with residential
neighborhoods. Neighbors can be greatly impacted and often feel as if there has been
of a loss of community and that their neighborhoods are not as safe with the constant
turnover of unidentified guests. Because the city has received many of these types of
complaints, staff is recommended continuing to ban the use.
Another issue regarding short-term rentals and home sharing is the potential loss of
housing stock and the effect on affordable house. Conversion of permanent, long-term
housing units to short-term rentals and home sharing has been identified as a trend and
a concern in many popular cities such as New York, Los Angeles, and San Francisco
where housing supply is limited. Property owners may be motivated to offer units as a
short-term rental or home share rather than a long term rental because short-term and
home sharing guests are willing to pay more for the unit. When homes intended for
permanent housing are utilized as short-term rentals or home sharing they are no longer
a part of the housing stock and the number of permanent housing units is reduced. A
reduction in permanent housing units can put an upward pressure on rental prices and
negatively affect housing affordability.
For the Planning Commission’s background, other cities have taken different
approaches. To help mitigate the nuisance activity associated with short-term rentals
and home sharing, some cities require a short-term rental or home sharing permit
applications be submitted. The permit can incorporate requirements and operational
TA No. 17-04
Short-Term Rentals and Home Sharing
June 27, 2017
Page 3 of 9
standards that must be abided by the property owner and guests during the duration of
the stay. Short-term rental and home sharing permits will often require a business
license application, safety inspections, and proof of insurance from the property owner.
Often time’s operators of short-term rentals and home sharing are required to pay
Transient Occupancy Tax (TOT), just like a hotel. TOT can be an important revenue
source for jurisdictions with vacation-oriented communities. Many cities are pursuing
regulations to require TOT collection as part of their short-term rental or home sharing
regulation package.
Some cities also supply a “Good Neighbor Brochure” that outlines the specific quiet
hours, maximum daytime and night time occupancy, maximum number of vehicles on-
site, and many other operational standards designed to minimize impacts to the
surrounding neighborhood. The brochure is made available to guests to ensure they are
aware of these rules in the hope that the surrounding neighbors are not impacted. Local
cities that have pursued or are pursuing such regulations include Pasadena, Newport
Beach, and Palm Springs. Cities that are evaluating this issue are trying to find a
balance between private property rights and financial benefits, and regulations that
protect neighborhoods.
Whether a city decides to allow short-term rentals and home sharing or prohibit them,
regulating and bringing properties into compliance can be challenging. There are over
100 hosting platforms available to list short-term rentals and home sharing units.
Listings are added, changed, and removed daily. Most hosting platforms do not provide
the physical address of the short-term rental and home share until the unit is booked.
This makes it very difficult to locate the exact property and identify the owners.
Monitoring, tracking, and enforcing short-term rentals and home sharing can take up a
considerable amount of staff time. Depending on how popular short-term rentals are in
the community, some cities hire additional staff to focus solely on regulating these uses.
Other cities like Indio, Palm Springs, Palm Desert, and the County of Riverside, choose
to hire a consulting firm to take the burden off of staff and streamline enforcement. Staff
contacted three firms, Harmari, Host Compliance, and Vacation Rental Compliance,
who work with other cities to see the types of services that are available – refer to
Attachment No. 2 for Host Compliance’s Handout. These companies offer a full range of
services including ordinance creation, identifying and tracking short-term rental and
home sharing properties, sending notices to properties that do not comply with
regulations, creating the necessary handouts and applications for short-term rental and
home sharing permits, assist with TOT collection, and provide 24-hour non-emergency
hotlines for neighbors to file complaints. Services can cost as little as $2,000 to more
than $10,000 a year.
Regulating short term rentals was discussed by the City Council when the Development
Code was being updated in 2016. However due to pending litigation in a number of
cities around the same time, and a desire to see some of this case law settled, no
regulations were adopted at that time. Since the adoption of the Development Code,
short-term rentals and home sharing have become more prevalent in Arcadia and have
TA No. 17-04
Short-Term Rentals and Home Sharing
June 27, 2017
Page 4 of 9
begun to negatively impact residents. On May 2, 2017, the City Council held a Study
Session to discuss the possibility of regulating short-term rentals and home sharing or
whether the City had the ability to prohibit these uses – refer to Attachment No. 3 for the
Study Session PowerPoint. The City Attorney opined on the issue and stated that the
City can prohibit short-term rentals and home sharing in order to protect residential
areas. At the Study Session, a number of residents spoke about the negative impacts of
short-term rentals and home sharing properties in their neighborhoods. Nuisance
activities such as, excessive noise, increased vehicular traffic, and concerns regarding
security and public safety were common. In order to protect the character and quality of
Arcadia’s residential neighborhoods, the City Counc il directed staff to prepare an
ordinance to prohibit short-term rentals and home sharing.
DISCUSSION
The City of Arcadia’s Development Code is silent on short -term rentals and home
sharing. The Development Code is based on permissive zoning, whereby if a use of
land is not specifically listed, the use is not allowed. Despite the use not being allowed,
the number of homes available for short-term rental and home sharing has steadily
increased over the past four years. In 2013, according to AirDNA and Inside Airbnb,
sites that monitor Airbnb usage, there were no homes in Arcadia listed on Airbnb. As of
early June 2017, there were between 38 to 86 “entire home” rentals and 89 to 174
“single room rentals” in Arcadia. These numbers do not include homes listed on other
hosting platforms as well – refer to Attachment No. 4 for a Map of Short-term Rental and
Home Sharing Locations as of June 2017 from Inside Airbnb.
With the rise of short-term rentals and home sharing in the community, Code
Enforcement and the Police Department have also seen a rise in complaints fro m
neighbors regarding the use. The most common issues are excessive noise, increased
traffic, and parking problems. Some of the properties are being used for parties which
take place on the weekends and can extend into late hours of the night, disrupting t he
neighborhood and requiring the Police Department to respond. In the case of several
properties, homes are being rented commercially for a night or weekend for events such
as illegal filming, wedding receptions, and advertised parties with cover charges.
Residents located near unpermitted short-term rentals or home sharing properties have
expressed concerns that the use is changing the character and quality of the
neighborhood. With different guests constantly coming and going neighbors feel like
there has been of a loss of community and that the neighborhood is not as safe since
the guests are unidentified. Due to the transient nature of the use, guests may have no
connection with the neighborhood and have little incentive to invest time in the
community or be concerned about how certain activities may affect the neighbors. They
may not maintain the same quality of life standards as permanent residents or are
unaware of regulations that help maintain peaceful residential neighborhoods such are
noise limitations and parking.
TA No. 17-04
Short-Term Rentals and Home Sharing
June 27, 2017
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In order to eliminate ambiguity regarding this use and to protect the City’s residential
neighborhoods, staff recommends adding language to the Development Code
specifically prohibiting short-term rentals, home sharing, and the advertisement of
these uses. The proposed text amendment will protect Arcadia’s residentially zoned
neighborhoods by explicitly prohibiting a use that has the ability to negatively affect the
surrounding community – refer to Attachment No. 1, Exhibit A of Resolution No. 1995
for the Various Amended Development Code Sections Pertaining to Short-Term Rentals
and Home Sharing. The text amendment will prohibit not only short-term rental and
home sharing activities but the advertisement of them as well. Code Enforcement will
not be required to complete a physical inspection in order to verify that a violation of the
Development Code has occurred. This will save staff time, allow the City to take action
and begin enforcement proceedings, and bring properties into compliance sooner which
will help mitigate potential problems before they start. At this time, the Code
Enforcement Division and the Police Department should have sufficient tools to enforce
the proposed text amendment. However if in the future sho rt-term rentals become more
prevalent, disruptive or, more difficult to track, the City can consider contracting with a
private company to assist with enforcement.
It should be noted that the prohibition of short-term rentals and home sharing will not
impact a property owner’s ability to rent out one room or the entire home for a period of
28 consecutive days or more. The renting of two or more rooms under separate rental
agreements for any length of time will still be considered a boarding house and a
prohibited use in all zones in the City. The Text Amendment only applies to dwellings
and therefore does not impact hotels, motels, emergency shelter, or extended stay
locations, which may be allowed under other provisions of the Development Code. The
Text Amendment also does not apply to residential care facilities or dwellings operated
as a group home pursuant to the Community Care Facilities Act that are otherwise
exempt from local zoning regulations.
FINDINGS
Pursuant to Section 9108.03.060 of the Arcadia Municipal Code requires that for an
amendment to the Development Code to be granted, it must be found that all of the
following prerequisite conditions can be satisfied:
1. The amendment is internally consistent with all other provisions of the
General Plan.
Facts to Support this Finding: The proposed Development Code Text
Amendment to prohibit short-term rentals, home sharing, and the advertisement
thereof, does not amend the General Plan but is consistent with all provisions of
the General Plan to protect neighborhoods from nuisances and other adverse
effects resulting from improper operation of short-term rentals and home sharing.
TA No. 17-04
Short-Term Rentals and Home Sharing
June 27, 2017
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2. The proposed amendment will not be detrimental to the public interest,
health, safety, convenience, or general welfare of the City.
Facts to Support this Finding: The proposed Development Code Text
Amendment will be in the public interest and will not be detrimental to the health,
safety, or general welfare of the City. Short-term rentals and home sharing have
been around for many years located predominantly in vacation communities. It isn’t
until fairly recently with the rise of the sharing economy and hosting platforms like
Airbnb, Homeaway, and VRBO that these uses have found their way into many
suburban communities like Arcadia. The City of Arcadia’s Development Code is
silent on short-term rentals and home sharing. The Development Code is based on
permissive zoning, whereby if a use of land is not specifically listed, the use is not
allowed. Despite the use not being allowed, the number of homes available for
short-term rental and home sharing has steadily increased over the past four
years. The City has also seen a rise in complaints from neighbors regarding these
uses. The most common issues are excessive noise, increased traffic, and parking
problems. Properties are being used for parties which can extend into late hours of
the night or are being rented commercially for events such as illegal filming,
wedding receptions. These activities are very disruptive to the surrounding
neighborhood. Residents located near unpermitted short-term rentals and home
shares have expressed concerns that the use is changing the character and quality
of the neighborhood. With different guests constantly coming and going neighbors
feel like there has been of a loss of community and that the neighborhood is not as
safe since the guests are unidentified.
Prohibiting short-term rentals and home sharing in residentially zoned properties is
in the public’s interest in order to eliminate the negative impacts to residential
neighborhoods associated with the uses such as disorderly conduct, increased
vehicular traffic, parking problems, excessive noise, and security and public safety
concerns. Prohibiting short-term rentals and home sharing is necessary to ensure
that the allowed uses in residentially zoned properties are compatible with the
surrounding neighborhood and that residential communities remain safe and quiet.
3. The proposed amendment is consistent with the General Plan and any
applicable specific plan(s).
Facts to Support this Finding: The proposed Development Code Text
Amendment is consistent with the Arcadia General Plan Land Use and Community
Design Element and House Element goals and policies. The City’s experience with
short-term rentals and home sharing, and the experiences of other cities, indicates
that these uses are often associated with negative impacts to residential
neighborhoods such as increased vehicular traffic, parking problems, excessive
noise, security and public safety concerns from residents, and the loss of
residential character. Due to the transient nature of the use, visitors may have no
connection with the neighborhood and have little incentive to maintain the same
TA No. 17-04
Short-Term Rentals and Home Sharing
June 27, 2017
Page 7 of 9
standards and quality of life as permanent residents. Because the properties are
associated with temporary and vacation uses, they are often a source of late-night
parties and noise. The number of guests utilizing short-term and home sharing
properties also results in increased neighborhood parking demands. Short term
rental and home sharing using can change the character of a neighborhood from
residential to commercial because such properties have been used commercially
for events such as illegal filming, wedding receptions, and advertised parties wit h
cover charges. Prohibiting short-term rentals and home sharing will ensure that the
character and quality of Arcadia’s residential neighborhoods are preserved and a
high quality of life for the residents is maintained.
The Housing Element states that Arcadia is in good condition and provides
housing opportunities, so it is important to conserve that housing stock. If homes
are utilized for transient occupancy, they are no longer part of our housing stock.
Prohibiting home sharing is also a way to preserve affordable housing
opportunities as rooms and secondary units can be used for permanent housing
rather than transient stays. A reduction in permanent housing units can put an
upward pressure on rental prices and negatively affect housing affordability.
Prohibiting short term rental and home sharing is consistent with the following
General Plan goals and policies:
Land Use and Community Design Element
Goal LU-3: Preservation and enhancement of Arcadia’s single-family
neighborhoods, which are an essential part of the City’s code identity.
Policy LU-4-2: Encourage residential development that enhances the
visual character, quality, and uniqueness of the City’s neighborhoods and
districts.
Policy LU-4.4: Strictly enforce City codes, including building and safety,
zoning and land use regulations, and property maintenance codes, to
maintain safe, high-quality residential neighborhoods”. In addition, the
General Plan calls for the City to create a safe place for residents to live
and to minimize noise impacts as part of land use planning decisions.
Housing Element
Goal H-1: Conserve and improve the condition of the existing housing
stock.
Policy H-1.1: Continue to monitor and enforce building and property
maintenance codes in residential neighborhoods to prevent the physical
deterioration of existing sound housing within the City.
Policy H-1.2: Continue to provide code enforcement services designed to
maintain the quality of the housing stock and the neighborhoods.
TA No. 17-04
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4. For Development Code amendments only, the proposed amendment is
internally consistent with other applicable provisions of this Development
Code.
Facts to Support this Finding: The Development Code Text Amendment is
internally consistent with all other applicable provisions of the Development Code.
The proposed Development Code Text Amendment prohibits property owners from
utilizing residential units as short-term rentals or home sharing, in order to
eliminate negative impacts associated with said uses such disorderly conduct,
increased vehicular traffic, parking problems, excessive noise, security and public
safety concerns, and the loss of residential character. The Development Code is
based on permissive zoning, whereby if a use of land is not specifically listed, the
use is not allowed. There is no current provision of the Development Code
permitting short term rentals or home sharing as an allowed use in residential
zones. The Text Amendment only applies to dwellings and therefore does not
impact hotels, motels, emergency shelter, or extended stay locations, which may
be allowed under other provisions of the Development Code. The Text Amendment
also does not apply to residential care facilities or dwellings operated as a group
home pursuant to the Community Care Facilities Act that are otherwise exempt
from local zoning regulations.
ENVIRONMENTAL IMPACT
The proposed amendment to the Development Code to prohibit short term rentals,
home sharing, and the advertisement of short term rentals is exempt from review under
CEQA pursuant to Section 15061(b)(3) and Section 15321. Section 15061 states that
CEQA applies only to projects which have the potential for causing a significant effect
on the environment. Where it can be seen with certainty that there is no possibility that
the activity may have a significant effect on the environment, the activity is not is not
subject to CEQA. The Development Code Text Amendment is exempt under Section
15321 because it consists only of minor revisions and clarifications to an existing
Development Code and will not have the effect of deleting or substantially changing any
regulatory standards or findings. The proposed Ordinance is an action that does not
have the potential to cause significant effects on the environment, but rather will clarify
prohibited uses in residential and mixed-use zones in the City. A Preliminary Exemption
Assessment is included as Attachment No. 5.
PUBLIC COMMENTS/NOTICE
Pursuant to Development Code Section 9108.13.020.B.2, if the number of property
owners to whom notice would be mailed is more than 1,000, a notice may be published
in a general circulation news publication. Accordingly, a public hearing notice for Text
Amendment No. TA 17-04 was published in the Arcadia Weekly on June 15, 2017. As
of June 21, 2017, no comments were received in response to the notice.
TA No. 17-04
Short-Term Rentals and Home Sharing
June 27, 2017
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RECOMMENDATION
It is recommended that the Planning Commission adopt the attached Resolution No.
1995 (Attachment No. 1) to recommend approval of Text Amendments No. TA 17-04 to
the City Council, based on the findings listed in this staff report, including that the Text
Amendments are Exempt under the California Environmental Quality Act (CEQA), and
direct staff to proceed with an ordinance and convey the Commission’s comments to the
City Council.
If any Planning Commissioner or other interested parties have any questions or
comments regarding this matter prior to the June 27, 2017, hearing, please contact
Associate Planner, Jordan Chamberlin at 626-821-4334, or
JChamberlin@ArcadiaCA.gov.
Approved:
Attachment No. 1: Resolution No. 1995
Exhibit “A” – Various Amended Development Code Sections
Pertaining to Short-Term Rentals and Home Sharing
Exhibit “B” – Draft Ordinance No. 2348
Attachment No. 2: Host Compliance Handout
Attachment No. 3: May 2, 2017 City Council Study Session PowerPoint
Attachment No. 4: Map of Short-term Rental and Home Sharing Locations as of June
2017 from Inside Airbnb
Attachment No. 5: Preliminary Exemption Assessment
Attachment No. 1
Attachment No. 1
Resolution No. 1995
EXHIBIT “B”
ARCADIA PLANNING COMMISSION
EXHIBIT “B”
Draft Ordinance No. 2348
[ATTACHED BEHIND THIS PAGE]
-1- Draft – Ordinance No. 2348
ORDINANCE NO. 2348
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ARCADIA,
CALIFORNIA AMENDING VARIOUS SECTIONS OF ARTICLE IX,
CHAPTER 1 OF THE ARCADIA MUNICIPAL CODE (“THE
DEVELOPMENT CODE”) WITH AN EXEMPTION FROM THE
CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA), TO PROHIBIT
SHORT-TERM RENTALS, HOME SHARING, AND THE
ADVERTISEMENT OF THESE USES
WHEREAS, on May 2, 2016, the City Council held a public study session to
study concerns regarding the land use impacts of short-term rentals and home sharing,
namely that short-term rentals and home sharing could result in loss of residential
character of neighborhoods and diminish the quality of life for Arcadia residents; and
WHEREAS, on June 27, 2017, a duly noticed public hearing was held before the
Planning Commission on Development Code Text Amendment No. TA 17-04, at which
time all interested persons were given full opportunity to be heard and to present
evidence; and
WHEREAS, after considering the evidence presented, the Planning Commission
adopted Resolution No. 1995 by a _____ vote, to recommend approval of the
Development Code Text Amendment No. TA 17-04, and directed staff to proceed with
processing approval of this Ordinance; and
WHEREAS, on July 18, 2017, a duly noticed public hearing was held before the
City Council on this Ordinance, at which time all interested persons were given full
opportunity to be heard and to present evidence.
WHEREAS, pursuant to the provisions of the California Environmental Quality
Act (“CEQA”), Public Resources Code Sections 21000 et. seq., the State’s CEQA
Guidelines, California Code of Regulations, Title 14, Section 15000 et. seq., and the
-2- Draft – Ordinance No. 2348
City’s Local CEQA Guidelines, it has been determined that the proposed text
amendment is exempt from review under CEQA pursuant to Section 15061(b)(3) and
Section 15321. Section 15061 states that CEQA applies only to projects which have
the potential for causing a significant effect on the environment. Where it can be seen
with certainty that there is no possibility that the activity may have a significant effect on
the environment, the activity is not is not subject to CEQA. The Development Code Text
Amendment is exempt under Section 15321 because it consists only of minor revisions
and clarifications to an existing Development Code and will not have the effect of
deleting or substantially changing any regulatory standards or findings. The proposed
Ordinance is an action that does not have the potential to cause significant effects on
the environment, but rather will clarify prohibited uses in residential and mixed-use
zones in the City.
NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF ARCADIA,
CALIFORNIA, DOES ORDAIN AS FOLLOWS:
SECTION 1. The factual data set forth in the Recitals of this Ordinance and by
the Development Services Department in the staff report dated June 27, 2017 and July
18, 2017, are true and correct.
SECTION 2. Based upon the entire record, including without limitation, the staff
report and related documents presented to the City Council, the City Council finds as
follows:
1. The amendment is internally consistent with all other provisions of the General
Plan.
-3- Draft – Ordinance No. 2348
Facts to Support this Finding: The proposed Development Code Text
Amendment to prohibit short-term rentals, home sharing, and the advertisement thereof,
does not amend the General Plan but is consistent with all provisions of the General
Plan to protect neighborhoods from nuisances and other adverse effects resulting from
improper operation of short-term rentals and home sharing.
2. The proposed amendment will not be detrimental to the public interest, health,
safety, convenience, or general welfare of the City.
Facts to Support this Finding: The proposed Development Code Text
Amendment will be in the public interest and will not be detrimental to the health, safety,
or general welfare of the City. Short-term rentals and home sharing have been around
for many years located predominantly in vacation communities. It isn’t until fairly
recently with the rise of the sharing economy and hosting platforms like Airbnb,
Homeaway, and VRBO that these uses have found their way into many suburban
communities like Arcadia. The City of Arcadia’s Development Code is silent on short-
term rentals and home sharing. The Development Code is based on permissive zoning,
whereby if a use of land is not specifically listed, the use is not allowed. Despite the use
not being allowed, the number of homes available for short-term rental and home
sharing has steadily increased over the past four years. The City has also seen a rise in
complaints from neighbors regarding these uses. The most common issues are
excessive noise, increased traffic, and parking problems. Properties are being used for
parties which can extend into late hours of the night or are being rented commercially
for events such as illegal filming, wedding receptions. These activities are very
disruptive to the surrounding neighborhood. Residents located near unpermitted short-
-4- Draft – Ordinance No. 2348
term rentals and home shares have expressed concerns that the use is changing the
character and quality of the neighborhood. With different guests constantly coming and
going neighbors feel like there has been of a loss of community and that the
neighborhood is not as safe since the guests are unidentified.
Prohibiting short-term rentals and home sharing in residentially zoned properties
is in the public’s interest in order to eliminate the negative im pacts to residential
neighborhoods associated with the uses such as disorderly conduct, increased
vehicular traffic, parking problems, excessive noise, and security and public safety
concerns. Prohibiting short-term rentals and home sharing is necessary to ensure that
the allowed uses in residentially zoned properties are compatible with the surrounding
neighborhood and that residential communities remain safe and quiet.
3. The proposed amendment is consistent with the General Plan and any
applicable specific plan(s).
Facts to Support this Finding: The proposed Development Code Text
Amendment is consistent with the Arcadia General Plan Land Use and Community
Design Element and House Element goals and policies. The City’s experience with
short-term rentals and home sharing, and the experiences of other cities, indicates that
these uses are often associated with negative impacts to residential neighborhoods
such as increased vehicular traffic, parking problems, excessive noise, security and
public safety concerns from residents, and the loss of residential character. Due to the
transient nature of the use, visitors may have no connection with the neighborhood and
have little incentive to maintain the same standards and quality of life as permanent
residents. Because the properties are associated with temporary and vacation uses,
-5- Draft – Ordinance No. 2348
they are often a source of late-night parties and noise. The number of guests utilizing
short-term and home sharing properties also results in increased neighborhood parking
demands. Short term rental and home sharing using can change the character of a
neighborhood from residential to commercial because such properties have been used
commercially for events such as illegal filming, wedding receptions, and advertised
parties with cover charges. Prohibiting short-term rentals and home sharing will ensure
that the character and quality of Arcadia’s residential neighborhoods are preserved and
a high quality of life for the residents is maintained.
The Housing Element states that Arcadia is in good condition and provides
housing opportunities, so it is important to conserve that housing stock. If homes are
utilized for transient occupancy, they are no longer part of our housing stock.
Prohibiting home sharing is also a way to preserve affordable housing opportunities as
rooms and secondary units can be used for permanent housing rather than transient
stays. A reduction in permanent housing units can put an upward pressure on rental
prices and negatively affect housing affordability. Prohibiting short term rental and home
sharing is consistent with the following General Plan goals and policies:
Land Use and Community Design Element
Goal LU-3: Preservation and enhancement of Arcadia’s single -family
neighborhoods, which are an essential part of the City’s code identity.
Policy LU-4-2: Encourage residential development that enhances the
visual character, quality, and uniqueness of the City’s neighborhoods and districts.
Policy LU-4.4: Strictly enforce City codes, including building and safety,
zoning and land use regulations, and property maintenance codes, to maintain safe,
-6- Draft – Ordinance No. 2348
high-quality residential neighborhoods”. In addition, the General Plan calls for the City to
create a safe place for residents to live and to minimize noise impacts as part of land
use planning decisions.
Housing Element
Goal H-1: Conserve and improve the condition of the existing housing
stock.
Policy H-1.1: Continue to monitor and enforce building and property
maintenance codes in residential neighborhoods to prevent the physical deterioration of
existing sound housing within the City.
Policy H-1.2: Continue to provide code enforcement services designed to
maintain the quality of the housing stock and the neighborhoods.
4. For Development Code amendments only, the proposed amendment is
internally consistent with other applicable provisions of this Development Code.
Facts to Support this Finding: The Development Code Text Amendment is
internally consistent with all other applicable provisions of the Development Code. The
proposed Development Code Text Amendment prohibits property owners from utilizing
residential units as short-term rentals or home sharing, in order to eliminate negative
impacts associated with said uses such disorderly conduct, increased vehicular traffic,
parking problems, excessive noise, security and public safety concerns, and the loss of
residential character. The Development Code is based on permissive zoning, whereby if
a use of land is not specifically listed, the use is not allowed. There is no current
provision of the Development Code permitting short term rentals or home sharing as an
allowed use in residential zones. The Text Amendment only applies to dwellings and
-7- Draft – Ordinance No. 2348
therefore does not impact hotels, motels, emergency shelter, or extended sta y
locations, which may be allowed under other provisions of the Development Code. The
Text Amendment also does not apply to residential care facilities or dwellings operated
as a group home pursuant to the Community Care Facilities Act that are otherwise
exempt from local zoning regulations.
SECTION 3. Chapter 1, Division 2, Section 9102.01.020, Table 2-1of Article IX of
the Arcadia Municipal Code is amended to read as follows:
Table 2-1
Allowed Uses and Permit
Requirements for Residential Zones
P
A
M
C
--
Permitted
Permitted as an Accessory Use
Minor Use Permit Required
Conditional Use Permit Required
Not Allowed
Land Use R-M R-0 R-1 R-2 R-3 R-3-R Specific Use
Regulations
Residential Uses
Boarding House -- -- -- -- -- --
Dwellings
Single-Family Dwelling P P P P P --
See required minimum
density (Section
9102.01.090, Table 2-6
and) Subsection
9102.01.100.A
(Exceptions to Minimum
Density in R-2 and R-3)
Multifamily Dwelling -- -- -- P P P
Two-Family Dwelling -- -- -- P P P
Accessory Dwelling Unit A A A -- -- --
Minimum lot size of
15,000 square feet
required. See also
Subsection 9102.01.080
(Accessory Dwelling
Units)
Short-Term Rental -- -- -- -- -- --
No Person shall post,
publish, circulate,
broadcast, or maintain
any advertisement of a
Short-Term Rental in any
zone allowing residential
uses. See Section
9104.02.300
-8- Draft – Ordinance No. 2348
Table 2-1
Allowed Uses and Permit
Requirements for Residential Zones
P
A
M
C
--
Permitted
Permitted as an Accessory Use
Minor Use Permit Required
Conditional Use Permit Required
Not Allowed
Land Use R-M R-0 R-1 R-2 R-3 R-3-R Specific Use
Regulations
Home Sharing -- -- -- -- -- --
No Person shall post,
publish, circulate,
broadcast, or maintain
any advertisement for
Home Sharing in any
zone allowing residential
uses. See Section
9104.02.300
SECTION 4. Chapter 1, Division 2, Sections 9102.05.020, Table 2-10, of Article
IX of the Arcadia Municipal Code is amended to read as follows:
Table 2-10
Allowed Uses and Permit
Requirements for Downtown Zones
P
A
C
M
--
(UF)
Permitted by Right
Permitted as an Accessory Use
Conditional Use Permit
Minor Use Permit
Not Allowed
Upper Floor Permitted, Not Allowed on Ground Floor
Land Use CBD MU DMU CM Specific Use Regulations
Health/Fitness Facilities, Small M M M M
Health/Fitness Facilities, Large M (UF) M (UF) CUP C
Indoor Entertainment C C C M
Studios – Art and Music M M M P
Residential Uses
Live/Work Unit -- M (UF) M (UF) -- See Subsection 9104.02.210
(Live/Work Units)
Multifamily Dwelling M (UF) M (UF) M (UF) -- Permitted only in conjunction with a
ground-floor commercial use. See
Subsection 9102.05.040.A
(Commercial Uses along Street
Frontages).
Supportive Housing – Housing Type M (UF) M (UF) M (UF) --
Transitional Housing – Housing Type M (UF) M (UF) M (UF) --
Short-Term Rental -- -- -- --
No Person shall post, publish, circulate,
broadcast, or maintain any
advertisement of a Short-Term Rental
in any zone allowing residential uses.
See Section 9104.02.300
-9- Draft – Ordinance No. 2348
Table 2-10
Allowed Uses and Permit
Requirements for Downtown Zones
P
A
C
M
--
(UF)
Permitted by Right
Permitted as an Accessory Use
Conditional Use Permit
Minor Use Permit
Not Allowed
Upper Floor Permitted, Not Allowed on Ground Floor
Land Use CBD MU DMU CM Specific Use Regulations
Home Sharing -- -- -- --
No Person shall post, publish, circulate,
broadcast, or maintain any
advertisement for Home Sharing in any
zone allowing residential uses. See
Section 9104.02.300
SECTION 5. Chapter 1, Division 4, Section 9104.02.300, of Article IX, Chapter 1
of the Arcadia Municipal Code is hereby amended read as follows:
9104.02.300 Advertisement of Short Term Rentals and Home Sharing
A. Legislative Findings
1. Short term rentals of dwelling units and home sharing are not permitted in
the city, but nonetheless, the city has seen increased complaints related to short term
rentals and home sharing due to nuisance conditions such as noise, excessive trash,
increased parking and traffic, and commercial uses of residential property. Properties
available for short term rental or home sharing are often advertised using online hosting
platforms, as well as traditional methods, and such platforms have resulted in the
increase of illegal short term rentals and home sharing in the city.
2. The City Council takes notice of the United States Supreme Court’s
opinion in the case of Central Hudson Gas & Electric Corp. v. Public Service
Commission (1980) 447 U.S. 557, which held that public agencies may ban commercial
speech related to illegal activity or forms of communication that are more likely to
deceive the public than inform it.
-10- Draft – Ordinance No. 2348
3. The City has a substantial interest in banning the advertisement of uses
and activities that are unlawful in the city. Without regulating advertisements, nuisance
conditions resulting from short term rentals and home sharing are likely to persist, and
visitors and guests may be deceived into believing that short term rentals are unlawful.
This chapter is no more extensive than necessary because it only regulates thos e
persons who have an interest in the property from placing advertisements for uses that
are unlawful. The restriction on advertisements only applies to the particular unlawful
uses that are regularly advertised to members of the public, including guests a nd
visitors to the city, who may be unaware that the use is unlawful. This chapter does not
infringe on any speech related to lawful commercial activities.
B. Prohibition on Advertising.
It shall be unlawful for an owner, tenant, property manager, agent or any other
person with possession or control of residential property to cause to be posted,
published, circulated, or broadcasted any advertisement for a short-term rental or home
sharing of the residential property if short-term rental or home sharing is not a lawful use
of the residence. “Short-term rental” and “home sharing” shall have the definitions
contained in sections 9109.01.200 and 9109.01.090, respectively, of the San Jacinto
Development Code.
C. Enforcement.
A violation of this Subsection shall be deemed an infraction and shall also be
subject to an administrative citation pursuant to chapter 4A of the Arcadia Municipal
Code. The record owner of any property that is advertised as a short-term rental or
home sharing in violation of this Subsection shall be strictly liable for the offense,
-11- Draft – Ordinance No. 2348
regardless of intent. Any other person who owns, rents, manages, or otherwise has
possession or control residential property and who advertises a short-term rental or
home sharing in violation of Subsection 9104.02.300 shall be liable for the offense.
SECTION 6. Chapter 1, Division 9 (Definitions), Section 9109.01.030, of Article
IX, Chapter 1 of the Arcadia Municipal Code is hereby amended to revise the following
definition:
9109.01.030 – “B” Definitions
Boarding House. A boarding house is a residence or dwelling, other than a motel
or hotel, wherein two or more rooms, with or without cooking facilities in the rooms
and/or for groups, are rented to individuals, persons or groups under separate rental
agreements or leases, either written or oral, whether or not an owner, agent or rental
manager is in residence. Notwithstanding this definition, no single-family residence
operated as a group home pursuant to the Community Care Facilities Act, that is
otherwise exempt from local zoning regulations, shall be considered a boarding house.
SECTION 7. Chapter 1, Division 9 (Definitions), Section 9109.01.090, of Article
IX, Chapter 1 of the Arcadia Municipal Code is hereby amended to include the following
definition:
9109.01.090 – “H” Definitions
Home Sharing. A use in which a dwelling, or portion thereof, is rented for tourist
or transient purposes for compensation for a period of less than twenty-eight (28)
consecutive calendar days, and the primary resident of the dwelling continues to reside
on-site, in the dwelling, during the rental period. The definition shall include any
arrangement in which the rental period is less than twenty-eight consecutive days or
-12- Draft – Ordinance No. 2348
can be reduced below 28 consecutive days, or in which the dwelling is rented multiple
times within 28 consecutive days. This definition does not apply to residential care
facilities or dwellings operated as a group home pursuant to the Community Care
Facilities Act that are otherwise exempt from local zoning regulations.
SECTION 8. Chapter 1, Division 9 (Definitions), Section 9109.01.200, of Article
IX, Chapter 1 of the Arcadia Municipal Code is hereby amended to include the following
definition:
9109.01.200 – “S” Definitions
Short-Term Rental. A use in which a dwelling, or portion thereof, is rented for
tourist or transient purposes for compensation for a period of less than twenty-eight
(28) consecutive calendar days, and the renter is given exclusive use of the dwelling.
The definition shall include any arrangement in which the rental period is less than
twenty-eight consecutive days or can be reduced below 28 consecutive days, or in
which the dwelling is rented multiple times within 28 consecutive days . This definition
does not apply to residential care facilities or dwellings operated as a group home
pursuant to the Community Care Facilities Act that are otherwise exempt from local
zoning regulations.
SECTION 9. If any section, subsection, subdivision, paragraph, sentence,
clause, or phrase of this Ordinance or any part thereof is for any reason held to be
unconstitutional, such decision shall not affect the validity of the remaining portions of
this Ordinance or any part thereof. The City Council of the City of Arcadia hereby
declares that it would have passed each section subsection, subdivision, paragraph,
sentence, clause, or phrase thereof, irrespective of the fact that any one or more
-13- Draft – Ordinance No. 2348
section, subsection, subdivision, paragraph, sentence, clause, or phrase be declared
unconstitutional.
Section 10. The documents and materials that constitute the record of
proceedings on which this Ordinance is based are located at the City Clerk’s Office
located at 240 West Huntington Drive, Arcadia, CA 91007. The custodian of these
records is the City Clerk.
Section 11. The City Clerk shall certify to the adoption of this Ordinance and
shall cause a copy of same to be published in the official newspaper of said City within
fifteen (15) days after its adoption. This Ordinance shall take effect on the thirty-first
(31st) day after its adoption.
Passed, approved and adopted this day of , 2017.
_______________________
Mayor of the City of Arcadia
ATTEST:
_______________________
City Clerk
APPROVED AS TO FORM:
_______________________
Stephen P. Deitsch
City Attorney
Attachment No. 2
Attachment No. 2
Host Compliance Handout
Cost-effective solutions to Arcadia’s short-term rental
1April, 2016
monitoring and compliance problems
Agenda
•Introductions
•U.S. and Arcadia Specific Market Context
•The Host Compliance Solution
•Discussion and Next Steps
2
Only provider of short-term rental
compliance monitoring technology for
local governments
•Silicon Valley based start-up company
•Brings ‘Big City’ and "Big Data"
technology to any sized municipal
government
•Team of seasoned local government
technology executives and data-
scientists
3
Helping Local Government improve
efficiency for over 17 years
•Customer base of over 500 cities and
public agencies across the United
States and Canada.
•100% focused on Local Government
•Solutions designed and constantly
improved by Local Governments.
Partnership combines latest Silicon Valley data -science with 17 years of local government software expertise
Introductions
Ulrik Binzer
Founder & CEO
•Prior COO of 2 Venture Capital backed
companies
•Former military officer and graduate of
Harvard Business School
•Launched Host Compliance when asked
by my local town council to study
possible ways to address the issues with
short-term rentals in our community
Paul Hetherington
Chief Revenue Officer
•Working with Local Government for over
20 years
•Love of technology and efficiency
•Focused on solutions with dramatic
impact.
•Dad, Triathlete and graduate of British
Columbia Institute of Technology
4
Broad set of stand -alone and integrated solutions for local governments
5
Agendas and
Minutes
Records
Management
Public Records
and Permitting
Video
Streaming
for Meetings
Short-Term
Rental
Compliance
Today’s
Focus
Tell us a bit about you , Arcadia, and where you are in terms of regulating short -term rentals?
6
city
My
What are Arcadia’s most important goals as it relates to short-term rentals?
Reduce noise, parking and trash-problems
Eliminate party houses
Reduce STR’s impact on neighborhood character
Ensure building safety
Improve city’s responsiveness to neighbor complaints
Stem STR’s negative impact on affordable housing availability
Improve permit and tax compliance to increase tax revenue
Ensure a level playing field between law abiding traditional lodging
providers and illegal short-term rentals
Reduce tension between short-term rental property owners and their
neighbors
Send a clear message to citizens that the city takes the STR problems
seriously
Other?
7
How big of a problem are short-term rentals in Arcadia?
Debate TemperatureComplaintsMany
Hot
Few
Cold
Crisis
Concern
Problem
Issue
8
Agenda
9
•Introductions
•U.S. and Arcadia Specific Market Context
•The Host Compliance Solution
•Discussion and Next Steps
Market Context: AirBnb, VRBO and 100’s of other vacation rental websites have turned vacation rentals into a booming underground economy…
Sources: AirBnB, HomeAway, VRBO and Flipkey
+ 100s of other
web platforms
10
….and in Arcadia we have identified 140 listings and 124 unique short-term rental properties
Sources: Host Compliance proprietary data
Unique short-term rentals in Arcadia as of April, 2016
11
Increased tourist traffic from short-term renters has the potential to alter Arcadia’s character while introducing new safety risks, noise issues, trash and parking problems…
Increased tourism can change
neighborhood character
Visitors don't always know (or follow) local rules
Short-term renters may want to party and have
less incentives to keep good neighborly relations
Increased occupancy and short-term renters’ “vacation mode”
can have negative side-effects
12
… resulting in disgruntled neighbors…
“It is loud,and there is live music and karaoke stuff,and
it’s all done outside because of the pool.They’re out in
front at 4 in the afternoon waiting for their Uber to come,
drunk on the front lawn.”
“Sometimes, when they are outside, they’re
playing beer pong just wearing their underwear”
“We did not buy our house to be living next to
a hotel. Would you buy a home if you knew a
hotel like this was operating next door, if you
wanted to set your life up and raise a family?”
Jessica C. Neufeld
Hazel Old, age 11
Emmy Jodoin
Source: New York Times article: “New Worry for Home
Buyers: A Party House Next Door”, October 10, 201513
…while negatively impacting Arcadia’s economy and regular citizens’ impression of the city’s ability to effectively protect their interests
Arcadia loses out on tax revenue that could have been
invested in improving the quality of life for its residents
Conversion of residential units into tourist accommodations
results in a tighter housing market, less affordable housing
and higher rents
Jobs are lost and wages are lowered in the local hospitality
industry as unfair competition from unregulated vacation
rentals lower demand for traditional tax-paying lodging
providers
Lack of proper regulation or limited or non-existing
enforcement of existing ordinances, leads to tension
between neighbors and the disillusionment with local
government
*Source: Zervas, George et al. “The Rise of the Sharing Economy: Estimating the Impact of AirBnB on the Hotel Industry”. Boston University School of Management. Jan 2014
14
Unfortunately manual compliance monitoring and enforcement is ineffective and prohibitively expensive
Rental property listings are spread across 100s of different
websites, with new sites popping up all the time
Manually monitoring 100s of properties is practically impossible
as listings are constantly added, changed or removed
Address data is hidden from listings making it time-consuming or
impossible to locate the exact properties and identify owners
It is practically impossible to collect taxes as there is no easy way
to find out how often the individual properties are rented and for
how much
The vacation rental platforms refuse to exchange data or
collaborate with local governments*
Law enforcement and local government staff have no legal basis
to evict problematic short-term renters even if several ordinances
are violated
*except for in a few major cities such as New York, San Francisco and Chicago where one of the 100s of rental platforms (AirBnB) helps collect TOT
15
Agenda
16
•Introductions
•U.S. and Arcadia Specific Market Context
•The Host Compliance Solution
•Discussion and Next Steps
17
•Address Identification: Monthly report with complete address
information and screenshots of all identifiable STRs in Arcadia’s
jurisdiction
•Compliance Monitoring: Ongoing monitoring of STRs for zoning and
permit compliance coupled with systematic outreach to illegal short-
term rental operators (using Arcadia’s form letters)
•Tax Collection Support: Ongoing monitoring of Arcadia’s STR listings
for tax compliance. Pro-active, systematic and data-informed
outreach regarding tax remittance obligations
•Dedicated Hotline: 24/7 staffed telephone and email hotline for
neighbors to report non-emergency problems related to STR
properties.
•Trend Monitoring: Monthly report with aggregate statistics on the
short-term rental activity in Arcadia
Ways we can help
18
Affordable pricing tailored to Arcadia’s needs
Address Identification
(PLUS all services above)$4,200 /yr
$6,300 /yr
$9,100 /yr
$10,780 /yr
Note: Above pricing assumes 140 short-term rental listings. Host Compliance would be happy to discuss
alternative contract terms, contract durations and pricing structures if that would be of interest.
Compliance Monitoring
(PLUS all services above)
Tax Collection Support
(PLUS all services above)
24/7 Dedicated Hotline
(PLUS all services above)
STR Trend Monitoring $380/yr
Benefits to using Host Compliance’s services
19
Ensures fair, continuous and consistent compliance monitoring and
enforcement
Frees up valuable staff time that can be focused on higher-value added
activities
Minimizes noise, parking and trash violations
Minimizes the impact on local law and code enforcement agencies as
complaints are first handled by our 24/7 hotline and routed to the
appropriate property owner before further enforcement actions are
triggered
Maximizes Arcadia’s tax and permit fee collections
REVENUE POSITIVE –in most cases, the additional permitting fees
alone pays for Host Compliance’s services several times
Requires NO up-front investment or complicated IT integration
-> we can be up and running in a couple of weeks
6 MONTH UNCONDITIONAL MONEY BACK GUARANTEE!
Agenda
20
•Introductions
•U.S. and Arcadia Specific Market Context
•The Host Compliance Solution
•Discussion and Next Steps
Feedback
21
Working backwards to a solution to Arcadia’s STR problems
22
Next Steps
Send you this presentation
Schedule all team meeting?
Set timeline to decide on best solution for
Arcadia’s needs
Confirm timing of possible rollout (needed to
secure Arcadia’s place in the queue)
23
Contact info
Please feel free to contact us anytime if you have any questions
about short-term rental regulation and how to best address the
associated monitoring and enforcement challenges.
24
Ulrik Binzer
binzer@hostcompliance.com
857.928.0955
Paul Hetherington
paulh@hostcompliance.com
604.763.7285
www.hostcompliance.com
Attachment No. 3
Attachment No. 3
May 2, 2017 City Council Study Session
PowerPoint
SHORT TERM RENTALS
City Council Study Session
May 2, 2017
1
2
Market Context: Short Term or Vacation Rental sites such as Air BnB, VRBO, Flipkey, and many others have exploded in popularity around the country. All forms of residential units being utilized in different ways in every community.
Cities handling this Increase in many ways...some are embracing this rise in home sharing and/or rentals as great for the economy, others are filing lawsuits against the various platforms and rejecting these uses outright.
SHORT TERM RENTALS – GENERAL
3
In vacation communities like Palm Springs, Newport Beach, Big Bear, etc., these uses are common and integrated into the community.
Impacts much more noticeable and shocking in traditional, residential communities such as Arcadia. Especially noticeable given recent regional trend of houses being treated as investments, and not permanent residences.
SHORT TERM RENTALS – GENERAL
4
SHORT TERM RENTALS – PROS AND CONS
POSITIVES NEGATIVES
Private income generation Creation of “transient”
communities
Transient Occupancy Taxes (TOT)
can be payable to cities
Impacts to neighborhoods (noise,
trash, disturbances)
Economic boost to region Safety concerns
Use of homes in a non-residential
fashion (parties, weddings, filming,
etc.)
5
Sites that track AirBnB (Air DNA, Inside Air BnB) list between 38 and 62 “entire place” rentals, and 89 to 174 “single rooms” in Arcadia.
Despite the numbers, most of these sites are used in a residential manner and few complaints are received. Also, 85% of rentals available listed as “high availability” – so not used much.
However, several problem sites around the City cause great consternation and generate numerous complaints.
SHORT TERM RENTALS – WHAT IS THE
SITUATION IN ARCADIA?
6
Many cities are not doing much...the use is “prohibited” based on definition of hotel, but no enforcement.
Some cities are adopting regulatory Ordinances. Many layers and steps to regulation and enforcement. Recent examples that appear comprehensive include Beverly Hills, Palm Springs, Pacific Grove, & Emeryville.
Other cities are adopting Ordinances to specifically prohibit such uses (some grandfather existing uses, some do not). Examples are Rancho Palos Verdes, Cerritos, and Anaheim.
SHORT TERM RENTALS – WHAT ARE
OTHER CITIES DOING?
7
1. Regulate these uses by drafting an Ordinance
detailing the allowable time, place, and manner for
short term rentals. Require TOT to be paid, business
license, etc.
2. Prohibit these uses by drafting an Ordinance not
allowing them in residential zones.
3. Leave as is, enforce as needed.
REGULATORY OPTIONS
8
REGULATING SHORT TERM RENTALS
Potential Ordinance Contents
Limitation on number of rentals/number of days
in calendar year
Establish a permitting process
Limitations on occupancy and use (i.e. only
residential)
Limitations on parking
Clear violation/citation provisions
Clear enforcement regulations and neighbor
“rights”, local contacts
Process of registration and collection of TOT
9
REGULATING SHORT TERM RENTALS –
PROPOSED CITY ORDINANCE
Highlights of Potential Ordinance
10
Regulations should be tailored City’s overall goal.
A strong approach will severely limit rentals by regulating room counts, enforcing quiet hours, requiring a 24/7 contact, installing separation requirements, and limiting stays severely.
A more permissive approach will focus on those uses that are clearly commercializing the neighborhood (e.g. acting like hotels, creating party houses). This approach would allow true residential rentals without many constraints.
OPTIONS FOR REGULATORY ORDINANCE
11
City can prohibit such uses, has broad police powers to do so to “protect” residential areas.
City does not allow primarily commercial uses in residential zones.
Many cities regulate by simply enforcing these uses on a complaint basis by citing them as commercial. An Ordinance is a direct way of prohibition.
PROHIBITING SHORT TERM RENTALS
12
Very challenging enforcement environment. Staff-intensive to follow up on complaints, collect TOT, issue business licenses, correspondence and citiations, and ensure compliance with regulations.
Third-party consultants are available to track listings, engage in correspondence, collect TOT, and keep consistent pressure on the providers.
ENFORCEMENT
13
Threshold Question: Should the City regulate or
prohibit Short Term Rentals?
If a Regulatory Ordinance is desired, what are the key
components?
Questions and Discussion
DISCUSSION AND NEXT STEPS
Attachment No. 4
Attachment No. 4
Map of Short-term Rental and Home
Sharing Locations as of June 2017 from
Inside Airbnb
Attachment No. 4
Attachment No. 4
Map of Short-term Rental and Home
Sharing Locations as of June 2017 from
Inside Airbnb
Map of short-term rental and home sharing locations as of June 2017 from Inside Airbnb.
The red dots represent short-term rental locations. The green and blue dots represent home
sharing location.
Attachment No. 4
Attachment No. 5
Preliminary Exemption Assessment
Preliminary Exemption Assessment FORM “A”
PRELIMINARY EXEMPTION ASSESSMENT
(Certificate of Determination
When Attached to Notice of Exemption)
1. Name or description of project: Draft Ordinance No. 2348, is a Text Amendment to amend various
sections of Article IX, Chapter 1 of the Arcadia Municipal Code
(Development Code) to prohibit short-term rentals, home sharing,
and the advertisement of these uses.
2. Project Location – Identify street
address and cross streets or attach
a map showing project site
(preferably a USGS 15’ or 7 1/2’
topographical map identified by
quadrangle name):
Citywide
3. Entity or person undertaking project:
A. City of Arcadia
Development Services Department
B. Other (Private)
(1) Name
(2) Address
4. Staff Determination:
The Lead Agency’s Staff, having undertaken and completed a preliminary review of this project in
accordance with the Lead Agency's "Local Guidelines for Implementing the California Environmental
Quality Act (CEQA)" has concluded that this project does not require further environmental assessment
because:
a. The proposed action does not constitute a project under CEQA.
b. The project is a Ministerial Project.
c. The project is an Emergency Project.
d. The project constitutes a feasibility or planning study.
e. The project is categorically exempt.
Applicable Exemption Class: The text amendment is exempt under Section 15321
as it consists of minor revisions and clarifications to an
existing Development Code and will not have the effect
of deleting or substantially changing and regulatory
standards or findings.
f. The project is statutorily exempt.
Applicable Exemption:
g. The project is otherwise exempt
on the following basis:
Section 15061(b)(3) of the CEQA Guidelines that it can
be seen with certainty that there is no possibility that
the text amendments may have a significant effect on
the environment.
h. The project involves another public agency which constitutes the Lead Agency.
Name of Lead Agency:
Date: June 1, 2017 Staff: Jordan Chamberlin, Associate Planner