Laguna Beach officials have crafted rules allowing for new short-term rental lodgings in this seaside town, but only in its commercial and mixed-use areas.
The new law – which got initial support from the Laguna Beach City Council this week, but needs a second positive vote Dec. 1 to be finalized – caps the city’s total short-term lodging stock at 300 units.
Presently, there are 117 units already permitted, including 79 in residential zones and 38 in commercial zones.
The city’s commercial and mixed use zones downtown, along Coast Highway and Laguna Canyon, have about 772 housing units – under a recent agreement with the Coastal Commission, 20% of those may be converted to vacation rentals.
In recent months, city leaders have struck compromises with the Coastal Commission to balance visitors’ access to the coast with impacts to the residents’ quality of life. After the City Council finalizes its approval of the new regulations, the Coastal Commission will sign off.
Additionally, the ordinance would also allow for 165 units in the commercial and industrial zones to be used for home-sharing – a likely lower-cost option for visitors, making a coastal vacation affordable to a broader range. In these instances, residents making rooms or parts of their homes available must be on the premises when their properties are used. City officials also agreed to waive the $347 permit fee to promote the home-sharing concept.
The cap of 20% on new short-term rentals downtown is a modifications made by the Coastal Commission to minimize the opportunity for entire apartment complexes to be converted into short-term vacation rentals, said Marc Wiener, the city’s director of community development.
And, in light of recent state mandates declaring an affordable housing crisis, he said it would help protect the local stock.
The city agreed to report back to the Coastal Commission in three years on its inventory of affordable housing and hotels and how many short-term rentals receive permits.
“If it looks like we’re losing affordable housing or hotels, we may make modifications in the new short-term rental permits that are only valid for three years,” Wiener said.
The 117 grandfathered properties would be exempt and could only be revoked if there is a violation in the terms of their permit.
The city is also working with Host Compliance, a company that has developed software that tracks rentals. That system should be up and running in the next month.
Only a handful of residents spoke during the meeting offering input. Most were pleased with the city’s compromise, though one man said he’s had problems for seven years with a short-term rental located in a neighborhood and saw no protection for him in the new regulations.
“I’m encouraging you to support this,” resident John Thomas said. “The proposed ordinance reflects years of work. It’s fair, balanced, equitable and reasonable. It protects residential neighborhoods and allows access to the beach for visitors.”
The city started cracking down on illegal short-term rental units in 2014 and a code enforcement person was hired in 2015 to monitor listings posted for Laguna Beach. Between August 2016 and May 2019, 500 illegal units were identified and fined or shutdown. The topic has been part of community group discussions, City Council meetings and meetings with commission staff since then.
“The length of time has benefited us in the long run,” Mayor Bob Whalen said. “It’s a good outcome for us. I’m pleased that we’re here after four-plus years. A good result that’s good for our residents.”
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November 21, 2020 at 11:23PM
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Laguna Beach caps short term rentals at 300, bans new ones in neighborhoods - OCRegister
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