1. Zoning Code Amendment: Short-Term Rental Regulations
City Council
October 2, 2017

2. DATE
DESCRIPTION
September 15, 2016
Ed Tech meeting regarding STRs – background, scale, and scope of STR activity
December 1, 2016
Community meeting to receive input from residents and businesses on STRs
December 3, 2016
January 17, 2017
Ed Tech given summary of STR regulations in other cities and input from community meetings
February 16, 2017
3rd community meeting held to introduce draft regulations
April 12, 2017
Planning Commission considered new regulations for STRs
June 14, 2017
Planning Commission approved revised regulations for STRs
June 20, 2017
Ed Tech provided additional policy direction on short-term rentals

3. Introduction What is a short-term rental?
The renting out of a furnished dwelling on a temporary basis (30 consecutive days or less) to guests as an alternative to a hotel or other traditional temporary accommodations, e.g. Airbnb
Considered an accessory use to a home

4. Introduction
What’s the difference between home-sharing and a vacation rental?
Home-sharing:
Dwelling is the primary residence of the host
Unit is “shared” in whole or part (e.g. bedroom, guest house)
Can be “hosted” where the owner/resident remains on-site during the guest stay or “un-hosted” where the owner/resident remains off-site during the stay
Vacation Rental:
Owner does not reside on-site
Used almost exclusively for guests as a way of generating income

5. Growth of Short-Term Rentals
Rise in popularity of short-term rentals has led to a 13-fold increase in STR activity over the past 5+ years
Number of STR listings in Pasadena 2010 – 2017 (Q3)

6. Map of Listings – Sept. 2017

7. Public Outreach & Engagement
December 1 & 3, 2016
2 community meetings held to receive initial input from residents and businesses on STRs; approx. 40 people attended each meeting
February 16, 2017
3rd community meeting held to introduce draft regulations; approx. 100 people attended
Numerous comments from those in favor and those with concerns about STRs
* As well, staff has received 100s of comments via mail and

8. Pros and Cons of STRs Support of short-term rentals:
Affordable and flexible accommodation option for visitors
Extra income for hosts; efficient use of spare bedrooms, guest houses; enables owners to stay in home as it relates to rising costs of housing
Economic spin-off through increased tourism
Collection of transient occupancy tax or TOT
Estimate of $600 – $700K annually based on current STR activity

9. Pros and Cons of STRs Concerns with short-term rentals:
Effect on neighborhood character
Long-term neighbors replaced by short-term guests
Potential for nuisance activities
e.g. noise, inadequate parking, excessive coming and going
Impact on housing stock
Rental units removed from long-term housing market

10. Regulatory Approach
Cities are increasingly allowing and regulating STRs
Lessons learned from efforts in other cities
San Francisco, Santa Monica, Anaheim, Los Angeles
No one-size fits all approach
Tailored to nuances of the community

11. Proposed Regulations Types of short-term rentals – Hosted Stays:
Dwelling must be the primary residence of the host
Note: Renters of residential units would need the landlord’s permission to sublease as STRs
Permitted in SFRs, condominiums, townhomes, multi-family
Allowed in ADUs and accessory structures legally permitted and constructed before January 1, 2017, which are considered subordinate to the main structure or primary residence on-site
Note: No new ADUs or accessory structures would be permitted to be built for STR purposes

12. Proposed Regulations Types of short-term rentals – Un-Hosted Stays:
Dwelling must be the primary residence of the host
Permitted in SFRs, condominiums, and townhomes
Allowed in ADUs and accessory structures legally permitted and constructed before January 1, 2017, which are considered subordinate to the main structure or primary residence on-site
Limit bookings to a maximum of 90 days/year
Must retain a local contact person or property management company that is available 24 hours/day

13. Proposed Regulations Key provisions:
Occupancy limit based on size of home: 2 guests per bedroom plus 2 additional guests
Cannot be used for any commercial parties or events (Note: This would not prevent a guest from using the short-term rental to entertain during their stay, but is only intended to prevent an STR from becoming a “party house”)
Parking for all guests to be provided on-site
No signs can be posted on the exterior of the home advertising the short-term rental use
Must adhere to the City’s Noise Ordinance and Litter Ordinance

14. Proposed Regulations Short-term rental permit requirements:
Must be obtained and renewed annually
Permit may be combined w/ City business license as a package
Self-certification that abutting neighbors will be notified of STR activity
May have only one STR property in the City (i.e. primary residence)
Must reside at the residence for 9 months out of the year
Required to remit Transient Occupancy Tax (TOT) to the City
Contact person or property mgmt. company must be available 24 hrs/day
Self-certification or third-party inspection for fire and life safety items (e.g. smoke detectors); accessory structures must be habitable
Permit number must be included in any listing for the STR

15. Proposed Regulations Host requirements:
Must keep records necessary to determine the amount of TOT liable for payment to the City

16. Proposed Regulations Enforcement:
Code Compliance will respond to complaints related to STRs
3 violations against the same property being used for short- term rental will result in the revocation of the home-sharing permit
Listing without a permit will be considered a violation
After-hours complaints related to noise, etc. will be handled by the Police Department; Code Compliance will use documented incidents as violations

17. Proposed Regulations Enforcement:
At the discretion of the Police or Fire Chief, or his/her designee, the revocation process could begin immediately based upon a threat to public safety, e.g. unsafe living conditions
Municipal Code allows for full cost recovery for egregious violations

18. Key Issues Vacation Rentals:
A dwelling unit that is not a primary residence and which is available for temporary lodging, for compensation
Differs significantly from home-sharing
Concerns about the impacts of vacation rentals on the City’s long-term rental housing stock
ED Tech recommended creating a pilot program to allow vacation rentals as STRs for a trial period

19. Key Issues Vacation Rental pilot program:
Pilot program be reviewed by the City within one year
Permitted to a maximum of 0.1% of the total housing stock
Dwelling must be the primary residence of the host
Permitted in SFRs, condominiums, and townhomes
Allowed in ADUs and accessory structures legally permitted and constructed before January 1, 2017, which are considered subordinate to the main structure or primary residence on-site
Must retain a local contact person or property management company that is available 24 hours/day

20. Key Issues Properties with two or more units:
PC concluded that “home-sharing” as a way of short-term renting should explicitly mean sharing one’s primary residence
Some interest that a host be allowed to short-term rent more than just their primary residence if they own and reside on a property developed as a duplex, triplex, etc.
Concerns over the erosion of the long-term rental housing stock
If allowed, it is recommended that the threshold not exceed the primary residence + one additional unit

21. Key Issues Curbing overconcentration:
Preserving the residential character of single-family neighborhoods remains a priority
Considering long-range potential for nuisance issues
Certain areas or districts within the City are anticipated to experience greater STR demand pressure, e.g. Rose Bowl
A 5% cap on STRs in the Rose Bowl area would allow 126 STRs
Alternatively, a 5% cap on STRs per census tract could be applied citywide

22. Key Issues

23. Recommendation
Find that the proposed Zoning Code Amendment is not a project subject to the California Environmental Quality Act (CEQA) in accordance with Section of CEQA and State CEQA Guidelines Sections (c)(2), (c)(3), and 15378; and is exempt from CEQA pursuant to State CEQA Guidelines Section 15061(b)(3) (general rule) and “Existing Facilities” (Class 1);
Adopt the Findings of Consistency with the General Plan in Attachment A;
Approve the proposed Zoning Code Amendment as contained in this report; and
Direct the City Attorney to prepare an ordinance within 60 days amending Title 17 of the Pasadena Municipal Code (Zoning Code) as presented in this report.

24. End of Presentation
City Council
October 2, 2017

25. Census Tracts

26. Council Districts