Attachment 3TOWN OF LOS GATOS MEETING DATE: 11/15/2018
TOWN COUNCIL POLICY COMMITTEE ITEM NO: 2
DATE: November 7, 2018
TO: COUNCIL POLICY COMMITTEE
FROM: LAUREL PREVETTI, TOWN MANAGER
SUBJECT: REVIEW AND PROVIDE DIRECTION ON POTENTIAL SHORT-TERM RENTAL
(STR) REGULATIONS.
RECOMMENDATION:
Review and provide direction on potential short-term rental (STR) regulations.
BACKGROUND:
On October 2, 2018, a staff report regarding short-term rentals (STRs) was brought to the Town
Council for initial discussion and direction. Council voted unanimously to refer the item to the
Policy Committee for further discussion with input from Council members. A copy of the
Council Staff Report is available as Attachment 1.
STRs were discussed at the October 18, 2018 Town Council Policy Committee meeting. A copy
of the Policy Committee Staff Report is available as Attachment 2.
After discussion, the Policy Committee's direction was for staff to return to the Committee with
options for allowing and regulating STRs. The Committee asked that staff consider a goal of not
denying homeowners the right to do what they wish with their homes while protecting.
neighbors from nuisance situations. The Committee requested an over-the-counter permitting
process that is not too complicated or expensive. The Committee asked staff to consider
allowing the Community Development Director the ability to revoke an STR permit, look at
options for limiting the number of nights in un-hosted rentals versus unlimited nights in hosted
rentals, look at limiting STRs to one per owner and one per parcel, and also to address the
concerns of investment properties being purchased for the sole purpose of use as an STR and
losing affordable housing within the Town.
PREPARED BY: HOLLY ZAPPALA
Management Analyst
Reviewed by: Town Manager, Assistant Town Manager, and Community Development Director
110 E. Main Street Los Gatos, CA 95030 • 408-354-6832
www.losgatosca.gov
Attachment 3
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SUBJECT: SHORT-TERM RENTAL DISCUSSION
NOVEMBER 15, 2018
BACKGROUND (continued)
Current regulatory environments for STRs adopted by other municipalities run the gamut from
highly regulated to lightly regulated. A good example of a highly regulated environment can be
found in the "Short -Term Rental Operating License" section of the Hood River, Oregon
Municipal Code (Attachment 3). In contrast to regulatory environment adopted by Hood River,
the Town of Los Altos Hills has adopted Tess stringent requirements to their Municipal Code for
STRs (Attachment 4).
The "DISCUSSION" section of the staff report lays out the primary areas of consideration for the
regulation of STRs. The first issue is to consider is whether to allow hosted and/or un-hosted
rentals. Additionally, there are a variety of options regarding issues of regulating zones,
accessory dwelling units, parking, the permitting process, revocation of permits, enforcement,
and miscellaneous regulations to conserve the Los Gatos housing stock and mitigate
neighborhood impact. The report provides a range of options for each area of discussion
reflective of the varying degrees of regulation which could be adopted.
DISCUSSION:
Hosted vs Un-Hosted Rentals
In a hosted rental, a permanent resident must reside at the property while it is being rented.
Hosted STRs may present fewer code compliance issues since the host is present to oversee the
rental. Having a resident host may also increase the comfort of neighbors who may otherwise
be unsure about the guests. Un-hosted rentals are normally for an entire house/property as
opposed to a room or accessory dwelling unit. Un-hosted rentals may have more
neighborhood compatibility issues and enforcement issues, such as noise complaints.
Option 1: Allow hosted rentals and prohibit un-hosted rentals. Requiring the host to reside on -
site would limit hosts to renting a portion of their primary dwelling or an accessory dwelling
unit on the property and require them to be present to handle any code compliance violations
that may arise.
Option 2: Allow un-hosted rentals with a limited number of rental days (i.e. 60 or 90 days per
year), while allowing an unlimited number of days per year for hosted rentals.
Option 3: Allow a limited number of rental days per year for both hosted and un-hosted rentals.
Hosted rentals could have a greater limit (i.e. 180 days) than un-hosted rentals.
Option 4: Do not regulate hosted vs. un-hosted rentals.
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SUBJECT: SHORT-TERM RENTAL DISCUSSION
NOVEMBER 15, 2018
DISCUSSION (continued):
It is important to note that should the Town limit the number of rental days for hosted or un-
hosted rentals, the Town would need to rely on hosts to self -report the number of rental days
per year, as Airbnb does not provide specific data for each property when remitting transient
occupancy tax (TOT) on behalf of its hosts. Enforcement of the number of rental days allowed
per year is challenging to enforce for this reason.
Regulation by Zone
STRs may be confined to certain zones within the Town, or the number of STRs within these
zones could be limited, as a way to mitigate neighborhood impact and conserve housing stock.
Option 1: Allow a maximum number of permits (with a lottery and/or first -come, first -serve
wait list) in certain zones. For example, in the Residential Downtown zone (R-1D), a maximum
of 15 STR permits could be allowed. In other zones, such as Hillside Residential (HR), permits
could be unlimited.
Option 2: Allow a maximum number of permits (with a lottery and/or first -come, first -serve
wait list) in each residential zone. For example, 15 permits could be allowed in the R-1D zone,
25 in the HR zone, etc.
Option 3: STRs could be prohibited in certain zones where there are a higher concentration of
properties and residents, while allowed in other zones.
Option 4: No regulations on the number of STR permits allowed in each zone.
Accessory Dwelling Units
Per Town Code Sec. 29.10.320 (b) (14), shown in Attachment 3, currently rentals for durations
of less than 30 days are prohibited in new accessory dwelling units, approved after February 6,
2018, when the ordinance went into effect.
Option 1: Allow STRs in accessory dwelling units approved before February 6, 2018 only.
Maintain the current prohibition on STRs in accessory dwelling units approved after February 6,
2018.
Option 2: Amend the Town Code to remove Sec 29.10.320 (b) (14) and allow STRs in all
accessory dwelling units provided they adhere to all other regulations.
Option 3: Prohibit STRs in all accessory dwelling units in Town.
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SUBJECT: SHORT-TERM RENTAL DISCUSSION
NOVEMBER 15, 2018
DISCUSSION (continued):
To note: During staff review of Airbnb's website, the majority of listings in Los Gatos (almost
half) were for accessory dwelling units.
Parking
In an effort to decrease neighborhood impact and mitigate existing parking concerns, parking
for registered STRs can be regulated.
Option 1: Require all STR parking to remain on -site in areas where parking is not permitted.
Require STR parking to be limited to using the two guest parking passes purchased per
house/property through the Police Department in areas where parking is permitted.
Option 2: Limit the number of vehicles allowed per STR guest. For example, a maximum of one
or two vehicles could be allowed per rental.
Option 3: Do not regulate parking for STRs.
Permitting Process
A potential process for registering an STR with the Town would include the following steps and
could potentially be completed over-the-counter:
• Obtain a business license. This would be required as business is being conducted in
Town. The current annual fee for a business license for a hotel is $7.50 per room being
rented plus the Senate Bill 1186 state -mandated fee, which is currently $4.
• Submit a one -page STR registration form with the fee to be determined. A sample can
be drafted as the regulations are developed. The current fee for a Home Occupation
permit is around $180.00.
• Submit a TOT registration form. All hosts should self -report their TOT data. Hosts using
platforms other than Airbnb would also need to self -remit TOT directly to the Town,
unless the Town were to enter into voluntary TOT collection agreements with other
platforms in the future.
• Provide a copy of the Certificate of Occupancy for the property to ensure the space is
habitable and in compliance with all permit conditions, laws and codes. If no Certificate
of Occupancy can be produced, the host must obtain and pass a Health and Safety
inspection from the Community Development Department. The current fee for this
inspection is around $300.00.
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SUBJECT: SHORT-TERM RENTAL DISCUSSION
NOVEMBER 15, 2018
DISCUSSION (continued):
Revocation of STR Permits
In an effort to mitigate neighborhood impact, the Town can reserve the right to revoke STR
permits.
Option 1: Allow the Community Development Director the ability to revoke STR permits at
his/her discretion.
Option 2: Automatically revoke STR permits after a certain number of code compliance
violations (i.e. three confirmed violations within a 12-month period) or failure to remit TOT
after a certain period of time.
Option 1A. Revocation of an STR permit lasts for a defined period of time (i.e. one or two years)
Option 1B. Revocation of an STR permit is permanent for that host at that property.
Enforcement
At first, staff recommends that enforcement continue on a complaint -driven basis. The Town
currently receives a small number (between one and three a year) of STR related complaints.
Should the need arise, there are third party firms that provide services such as identifying all
STR rentals in Town for registration and providing a 24/7 rental hotline for complaints.
Additional enforcement options may also be considered such as:
Option 1: Creating a penalty for failing to register an STR within 90 days of operation in order to
encourage compliance.
Option 2: Creating an online map/directory of registered STRs in Town by address with the
ability click on a property and file an online complaint.
Miscellaneous Regulations to Conserve Housing Stock
A number of additional regulations may be adopted in order to help conserve the housing stock
in Los Gatos:
Option 1: Prohibit STRs in Senior Housing units (the Town currently expressly prohibits them in
Below Market Price units).
Option 2: Require a property owner approval letter for all STRs in which the host is not the
owner.
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SUBJECT: SHORT-TERM RENTAL DISCUSSION
NOVEMBER 15, 2018
DISCUSSION (continued):
Option 3: Limit STR registration to one per owner.
Option 4: Limit STR registration to one per parcel. Apartment complexes may require a lottery
and/or a wait list on a first -come, first -serve basis.
Miscellaneous Regulations to Mitigate Neighborhood impact
Additional regulations may be put in place in order to protect neighbors from nuisance
situations:
Option 1: Prohibit commercial or assembly uses such as weddings and special events.
Option 2: Require a homeowners' association (HOA) approval letter for all STR properties that
are part of an HOA.
Option 3: Require hosts to provide guests with local rules regarding occupancy, parking noise,
trash collection schedules, etc. to follow during their stay.
Option 4: Limit the maximum number of overnight lodgers (not including minor children).
Limits can be imposed per number of rooms (i.e. two guests for each room rented) or can be
imposed as a standard number (i.e. maximum of four guests per rental). The limits can be
different for hosted and un-hosted rentals.
Option 5: Prohibit renting to unaccompanied minors.
Option 6: Require STR hosts (or an appointed site manager) to be on call 24/7 to manage the
STR unit and respond to reported issues, contact the tenants regarding complaints received,
and/or be physically present at the STR unit to address reported concerns within a certain
amount of time (i.e. 30 minutes) from the time of notification.
CONCLUSION AND NEXT STEPS:
Staff looks forward to the direction of the Committee regarding the best policy options for
regulating STRs in Los Gatos. Depending on the level of policy regulation the Committee wishes
to pursue, staff will then craft the appropriate administrative regime to effectuate the policy
objectives.
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SUBJECT: SHORT-TERM RENTAL DISCUSSION
NOVEMBER 15, 2018
FISCAL IMPACT:
Based on preliminary data received from Airbnb, the Town may receive estimated annual
transient occupancy tax revenue of $226,800 if the Town were to enter into a voluntary TOT
collection agreement with Airbnb.
Attachments:
1. October 2, 2018 Los Gatos Council Report
2. October 18, 2018 Policy Committee Report
3. City of Hood River Short -Term Rental Policy
4. Town of Los Altos Hills Short -Term Rental Policy
5. Town Code Sec. 29.10.320
6. Public Comment Received November 2, 2018
7. Public Comment Received November 6, 2018
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Hood River, Oregon
CHAPTER 5.10 SHORT-TERM RENTAL OPERATING LICENSE
Legislative History: Ord. 2028 (2016)
SECTIONS:
5.10.010
5.10.020
5.10.030
5.10.040
5.10.050
5.10.060
5.10.070
5.10.080
5.10.090
5.10.100
5.10.110
5.10.120
5.10.130
5.10.140
Title.
Purpose and Scope.
Definitions.
Annual Short-term Rental Operating License Required.
Application and Fee.
Term of Annual License and Transferability.
Operating License and License Renewal.
Criteria for Approval of an Operating License and Operating License Renewal.
Additional Operational Requirements.
Violations.
Penalties.
Appeals of Short-term Rental Operating License Determinations.
Discontinuance of Short-term Rental Occupancy.
Remedies Not Exclusive.
5.10.010 Title. The provisions of this chapter are intended to authorize and regulate
the short-term rental of residential dwelling units on all property within the City of Hood
River. To that purpose, there is added to the Hood River Municipal Code Chapter 5.10
entitled "Short -Term Rental Operating License," and those sections and subsections set
forth below.
5.10.020 Purpose and Scope.
A. This ordinance provides reasonable and necessary regulations for the licensing of
short-term rental of residential dwelling units in order to:
1. Ensure the safety, welfare and convenience of renters, owners and neighboring
property owners throughout Hood River.
2. Balance the legitimate livability concerns with the rights of property owners to
use their property as they choose.
3. Recognize the need to limit short-term rental options within the neighborhoods to
ensure compatibility, while recognizing the benefits of short-term rentals in in
providing recreation and employment opportunities, as well as transitional housing
and business or hospital related short stays.
4. Help maintain the City's needed housing supply for residential use:
5. Protect the character of the City's neighborhoods by limiting the number and
concentration of full-time short-term rentals in residential zones. In the adoption of
these regulations, the City finds that the transient rental of dwelling units has the
potential to be incompatible with surrounding residential uses. Therefore, special
regulation of dwellings listed for transient occupancy is necessary to ensure that
these uses will be compatible with surrounding residential uses and will not
materially alter the neighborhoods in which they are located.
Page 1
Attachment 3
Updated 12-19-17
B. A short-term rental license is a permission to operate a short-term rental in
accordance with this chapter. An operating license may be terminated or revoked if the
standards of this chapter are not met or the dwelling is sold or otherwise transferred as
defined in this chapter. This chapter provides an administrative framework for licensing
the annual operation of a short-term rental.
C. The regulations of this code are not intended to permit any violation of the provisions
of any other law or regulation.
D. Exemption of a use from the provisions of this chapter shall not exempt the use from
other applicable provisions of this Code.
5.07.030 Definitions.
A. Applicant(s) means an owner(s) of a dwelling unit who applies to the City for a
short-term rental operating license.
B. Authorized agent is a property management company or other entity or person who
has been designated by the applicant or licensee, in writing, to act on their behalf. The
authorized agent may or may not be the designated representative for purposes of
contact for complaints.
C. City Manager means the City Manager or his or her designee.
D. Hosted homeshare means the transient rental of a portion of a dwelling while the
homeowner is present. For the purposes of this Title, "present" means the
homeowner is staying in the dwelling overnight.
E. Licensee means the owner(s) of a dwelling unit who holds a short-term rental
operating license.
F. Non -transient rental means to rent a dwelling unit or room(s) for compensation on
a month -to -month basis, or for a longer period.
G. Owner(s) means the natural person(s) or legal entity that owns and holds legal or
equitable title to the property. If the owner is a business entity such as a partnership,
corporation, limited liability company, limited partnership, limited liability
partnership or similar entity, all persons who own an interest in that business entity
may be considered an owner.
H. Short-term rental means a Hosted Homeshare or Vacation Home Rental.
I. Short-term rental operating license means the regulatory license required by HRMC
5.10.030 and described in this chapter. It will be referenced as an "operating license."
J. Transfer means the addition or substitution of owners not included on the original
license application, whether or not there is consideration. If multiple owners exist on
a license, individual owners may be removed from the license without constituting a
transfer.
K. Transient rental means to rent a dwelling unit or room(s) for compensation on less
than a month -to -month basis.
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L. Vacation home rental means the transient rental of an entire dwelling unit.
M. Daytime means between the hours of 7:00am to 10:00pm
N. Overnight means between the hours of 10:00 pm to 7:00 am the following day
5.10.040 Annual Short -Term Rental Operating License Required. No owner of
property within the Hood River City limits may advertise, offer, operate, rent, or
otherwise make available or allow any other person to make available for occupancy or
use a short-term rental without a short-term rental operating license. Advertise or offer
includes through any media, whether written, electronic, web -based, digital, mobile or
otherwise.
5.10.050 Application and Fee.
A. Application Required. Applications for an operating license shall be on forms
provided by the City, demonstrating the application meets the standards required by
this chapter. The applicant or authorized agent shall certify the following information
to be true and correct:
1. Owner/Applicant Information. Applicant's name, permanent residence address,
telephone number, and the short-term rental address and telephone number.
2. Proof of Residential Use (for conforming short-term rentals within the R-1, R-2
or R-3 zones only). The residential use of a dwelling unit shall be established
through its continued use as the primary residence of the property owner. The
applicant shall provide at least two of the following items as evidence that the
dwelling is the primary residence of the owner:
• A copy of the voter registration.
• A copy of an Oregon Driver's License or Identification Card.
• A copy of federal income tax return from last tax year (page 1 only
financial data should be redacted).
3. Representative Information. The applicant shall provide the name, telephone
number, address and email of a local representative (which can be a person or
company) who can be contacted concerning use of the property or complaints
related to the short-term rental, as set forth in HRMC 5.10.080. For the purposes
of this requirement, local means the representative's address is within a 30 minute
travel time of the subject property.
4. Parking. Statement that required parking spaces are available, with a dated
photo(s) submitted of interior and exterior parking spaces. A site plan including a
parking diagram of these parking spaces shall also be submitted.
5. Occupancy. Occupancy limits and number of bedrooms.
6. Good Neighbor Guidelines. Acknowledgment of receipt and review of a copy
of the City's good neighbor guidelines. In addition, evidence that the City's good
neighbor guidelines has been effectively relayed to short-term rental tenants, by
incorporating it into the rental contract, including it in the rental booklet, posting
it online, providing it in a conspicuous place in the dwelling unit, or a similar
method.
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7. Listing Number. If they advertise, the listing numbers or website addresses of
where the short-term rental advertises (such as the VRBO/Airbnb/rental website
number, account number, URL, etc.).
8. A completed checklist for fire safety as required by HRMC 5.10.080.C.2.
9. Proof of garbage service as required by HRMC 5.10.080.C.3.
10. Such other information as the City Manager or designee deems reasonably
necessary to administer this chapter.
B. Incomplete Application. If a license application does not include all required
materials, the application will be considered incomplete and the City will notify the
applicant, in writing, explaining the information required. If the applicant provides
the missing required information within 30 calendar days of the date of the notice, the
application will be reviewed. If the applicant does not provide the required
information, the application will be deemed withdrawn and the City may refund all or
a portion of the application fee.
C. License Fee. The fee for application for a short-term rental operating license or
license renewal shall be as established by resolution of the City Council.
5.10.060 Term of Annual License and Transferability.
A. Term. A short-term rental operating license shall be renewable annually on or before
January 15th, the license may be renewed annually for up to four years by the licensee
or authorized agent provided all applicable standards of this chapter are met. If an
authorized agent changes during the operating license period, the licensee shall timely
notify the City in writing of the change.
B. Transferability. The operating license shall be issued in the name of the licensee(s)
and is not transferable.
5.10.070 Operating License and License Renewal.
A. License Must Be Obtained.
1. An operating license shall be obtained and renewed as required ..in this section.
The permission to operate a short-term rental in the City of Hood River shall be
revoked for failure to obtain or renew a license to operate as provided in this chapter.
2. The maximum number of nights per year which a short-term rental may be
operated shall be in accordance with HRMC 17.04.115 and as specified below. The
license shall specify whether the short-term rental will be operated as a hosted
homeshare or a vacation home rental; however, the number of nights allowed is the
maximum number for all short-term rental use of the subject property. The
maximum number of nights shall be indicated on the license and shall not be
exceeded.
Short-term rentals in C-1 and C-2 zones:
365 nights /year
Conforming short-term rentals in R-1, R-2 and R-3
zones:
90 nights /year
Existing non -conforming short-term rentals in R-1, R-2
and R-3 zones:
See HRMC
5.10.070.A.3
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Updated 12-19-17
3. Existing Nonconforming Short-term Rentals within the R-1, R-2 and R-3 zones.
For the purposes of this section, an existing non -conforming short-term rental is one
which meets all of the standards and criteria in HRMC 17.04.115.D. The extent of
the non -conformity shall be limited to the maximum number of nights of transient
rental which previously occurred in any one calendar year, 2013 through October
13th, 2016. The applicant has the burden of proving by a preponderance of credible
evidence all of the elements of a nonconforming hosted homeshare or vacation home
rental.
B. Application and Renewal Application Process.
1. Existing Short-term Rentals. Existing short-term rentals may continue to operate
until such time as the City has approved or denied the application. If approved, the
license may be renewed annually thereafter in accordance with subsection C, below.
If denied, operation of the short-term rental must cease within 30 days. Failure to
submit an application as required by this section shall result in the loss of all non-
conforming use status.
2. New Short-term Rentals. A license shall be obtained before beginning operations.
A completed operating license application and fee may be submitted and issued at
any time. The license may be renewed annually thereafter in accordance with
subsection C, below.
C. Renewal Standards.
1. Operating licenses may be renewed by the licensee annually for up to four years
after the year of issuance.
2. The City will review an application for operating license renewal and issue a
renewal provided all the standards in this chapter continue to be met. If not met, the
City will not renew the operating license and the property shall not be used as a
short-term rental.
D. A decision on an operating license application or renewal may be appealed as
provided in HRMC 5.10.120.
5.10.080 Criteria for Approval of an Operating; License and Operatinu License
Renewal.
A. The applicant has the burden of proof to demonstrate compliance with each
applicable criterion for approval or renewal of the operating license. The approval
criteria also operate as continuing code compliance obligations of the owner. Staff may
verify evidence submitted and the applicant shall cooperate fully in any investigation.
B. To receive approval, an applicant must demonstrate that all approval criteria listed
below has been satisfied:
1. Zoning. The property is in compliance with requirements of HRMC Title 17
(Zoning).
2. Contact Information. The applicant or authorized agent has provided information
sufficient to verify a qualified person will be available to be contacted about use of
the short-term rental during and after business hours. The licensee or representative
shall be available to be contacted by telephone to ensure a response to the short-term
rental address at all hours (24 hours a day, seven days a week) while the dwelling
unit is occupied for rent. Response must be within 30 minutes. The designated
Page 5 Updated 12-19-17
representative may be changed from time to time throughout the term of the license.
To do so, the license information shall be revised with the City at least 14 days prior
to the date the change takes effect, except when the failure to do so is beyond the
licensee's control. In an emergency or absence, contact forwarding information to a
qualified person may be provided for the licensee or representative. In the case of
Hosted Homeshares, the contact person shall be the permanent resident who will be
hosting the transient accommodations.
3. Notice to Neighbors. For Vacation Home Rentals, the licensee or authorized agent
shall either: (a) provide an annual mailing or otherwise distribute by hand, a flier to
neighbors within a 250-foot radius of the short-term rental property address
containing the operating license number and owner or representative contact
information, or (b) post a small placard or sign as specified by the City on the
property in proximity to the adjacent street advising neighbors and tenants of the
same information where it can be seen from the public right-of-way.
The purpose of this notice is so that adjacent property owners and residents can
contact a responsible person to report and request resolution of problems associated
with the operation of the short-term rental. If the permanent contact information
changes during the license period, the new information must be mailed or distributed
again, or changed on the placard or sign.
C. Health and Safety.
1. Responsibility. It is the licensee's responsibility to assure that the short-term rental
is and remains in substantial compliance with all applicable codes regarding fire,
building and safety, health and safety, and other relevant laws.
2. Fire and Emergency Safety. A completed checklist for fire safety (fire
extinguishers, smoke alarms, carbon monoxide detectors, etc.) shall be required with
each annual operating license application and renewal. The licensee shall be
responsible for completing the fire safety checklist and ensuring continued
compliance. Verification by the City shall be required prior to issuance of a license
and may be required for each renewal at the City Manager's discretion.
3. Solid Waste Collection — minimum service requirements. During all months that
the dwelling is available for transient accommodation, Vacation Home Rentals shall
have weekly solid waste collection service with assisted pick-up provided by the
solid waste provider, if available. For the purposes of this section, assisted pick-up
means the collection driver retrieves the cart from the driveway, rolls it out for
service, and then places it back in its original location.
D. Mandatory Postings. The short-term rental license issued by the City (or a copy
thereof) shall be displayed in a prominent location within the interior of the dwelling
adjacent to the front door. The license will contain the following information:
1. A number or other identifying mark unique to the short-term rental operating
license which indicates the license is issued by the City of Hood River, with the date
of expiration;
2. The name of the licensee or representative and a telephone number where the
licensee or representative may be contacted;
3. The number of approved parking spaces;
4. The maximum occupancy permitted for the short-term rental;
5. Any required information and conditions specific to the operating license;
6. Day of week of trash pickup;
7. The property address; and
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8. The City of Hood River official logo.
E. The licensee shall be in compliance with the Hotel Tax Code pursuant to HRMC
Chapter 5.09, and subject to the Tax Administrator's authority under that chapter.
F. Parking.
1. One (1) hard surfaced off-street parking space shall be provided for every two
bedrooms. In calculating the number of spaces required, the total shall be rounded
up. Parking areas shall not be located in the front yard. If the garage is to be
utilized to meet the parking requirement, a photo of the interior of the garage shall be
submitted to show the garage is available for parking. Required parking may be
permitted on another lot within 250 feet of the subject property with a shared
parking agreement or proof of legal parking access.
2. A parking diagram of the approved parking spaces shall be provided to tenants
and be available in a prominent location within the short-term rental dwelling.
5.10.090 Additional Operational Requirements.
A. Advertising and License Number. The licensee or authorized agent shall put
the annual operating license number on all advertisements for the specific
property, if legally possible.
B. Complaints.
1. Response to Complaints. The licensee or representative shall respond to
neighborhood questions, concerns, or complaints in a reasonably timely manner
depending on the circumstances.
2. Record of Response. The licensee or representative shall maintain a record of
complaints and the actions taken in response to the complaint, if relevant, in an
electronic or written manner deemed reasonable to document the interaction. If
kept, this record can then be made available for City inspection upon request to
investigate a complaint.
C. Inspection. Upon application for an operating license all short-term rentals shall be
subject to inspection by the City for compliance with this section.
1. The City Manager may conduct a site visit upon an application for a short-term
rental to . confirm the number of bedrooms (as defined by the International
Building Code) stated on the application and the number, location and availability
of on -site parking spaces. The site visit will be coordinated with the applicant and
be conducted during the City's normal business hours, and with reasonable notice.
2. The City Manager may visit and inspect the site of a short-term rental to ensure
compliance with all applicable regulations, during the City's normal business
hours, and with reasonable notice and other procedural safeguards as necessary.
Code violations shall be processed in accordance with HRMC Title 1.
D. Specific Prohibitions. The following activities are prohibited on the premises of a
Short-term Rental during periods of transient rental:
1. Events. Examples of events include, but are not limited to, company retreats,
weddings, rehearsal dinners, etc.
Page 7 Updated 12-19-17
2. Unattended barking dogs.
3. Activities that exceed noise limitations set by HRMC Title 8.09.
E. The maximum overnight occupancy for the dwelling shall be limited to two
persons per bedroom (as defined by the International Building Code) and two
additional persons (e.g., a two -bedroom dwelling is permitted a maximum overnight
occupancy of six persons). The maximum daytime occupancy shall be limited to the
overnight occupancy plus six additional persons (e.g., a two -bedroom dwelling is
permitted a maximum daytime occupancy of twelve).
F. Administrative Rules. The City Manager shall have the authority to establish
administrative rules and regulations consistent with the provisions of this chapter for
the purpose of interpreting, clarifying, carrying out, furthering, and enforcing the
provisions of this chapter. A copy of such administrative rules and regulations shall
be on file in the Office of the City Recorder and be posted on the City website.
5.10.100 Violations.
In addition to complaints related to nuisance and noise and other violations of the
HRMC, the following conduct also constitutes a violation of this chapter and is a civil
infraction:
A. The discovery of material misstatements or providing of false information in the
application or renewal process.
B. Representing a dwelling as available for occupancy or rent as a short-term rental
where the owner does not hold a valid operating license issued under this chapter, or
making a short-term rental available for use, occupancy or rent without first obtaining
a valid operating license.
C. Advertising or renting a short-term rental in a manner that does not comply with
the standards of this chapter.
D. Failure to comply with the substantive standards of HRMC 5.10.080 and HRMC
5.10.090.
5.10.110 Penalties.
A. In addition to the fines and revocation procedures described below, any person or
owner who uses, or allows the use of, or advertises, property in violation of this
chapter is subject to the enforcement authority of HRMC Title 1.
B. Each twenty-four hour period in which a dwelling is used, or advertised, in
violation of this chapter or any other chapter of the HRMC shall be considered an
occurrence for calculation of the following fines:
1. The first occurrence of one or more violation(s) will incur a warning or other
fine amount otherwise specified in HRMC, whichever is greater.
Page 8 Updated 12-19-17
2. A second occurrence of one or more violation(s) within a 12-month period is
subject to a $250 fine or other fine amount otherwise specified in HRMC,
whichever is greater.
3. A third occurrence and all subsequent occurrences of violation(s) within a 12-
month period is subject to a $500 fine or other fine amount otherwise specified in
HRMC, whichever is greater.
C. Revocation. The following actions are grounds for immediate revocation of an
operating license:
1. Failure to renew an operating license as set forth in HRMC 5.10.070 while
continuing to operate a short-term rental.
2. The occurrence of three or more violations within a 12-month period resulting
in fines pursuant to 5.10.110.B3.
3. The discovery of material misstatements or providing of false information in
the application or renewal process is grounds for immediate revocation of the
operating license.
4. Such other violations of this chapter of sufficient severity in the reasonable
judgment of the City Manager, so as to provide reasonable grounds for immediate
revocation of the operating license.
D. Notice of Decision/Appeal/Stay. If the operating license is revoked as provided in
this section, the City Manager shall send written notice of revocation to the licensee
stating the basis for the decision. The notice shall include information about the right
to appeal the decision and the procedure for filing an appeal. The licensee may appeal
the City Manager's decision to revoke the operating license under the procedures set
forth in HRMC 5.10.120. Upon receipt of an appeal, the City Manager shall stay the
revocation decision until the appeal has been finally determined by the Hearing
Officer.
5.10.120 Appeals of Short-term Rental Operating License Determinations.
A. Filing Requirements —Notice. The licensee or authorized agent may appeal a short-
term rental operating license decision to deny or revoke an operating license under HRMC
5.10.100.
B. Authority to Decide Appeal. The Hearings Officer shall be responsible for determining
an appeal of a decision approving or denying an application or renewal application for an
operating license, or revoking or suspending an operating license, in any zone.
Page 9 Updated 12-19-17
C. Time for Filing. An appellant is required to file a written notice of appeal including the
basis for the appeal within 14 calendar days of the license determination being appealed.
This requirement is jurisdictional and late filings shall not be allowed.
D. Fee for Appeal. The City Council may establish by resolution a fee for filing an appeal,
which shall be jurisdictional.
E. Procedures. The City Manager may establish administrative procedures to implement
the appeal procedures provided in this section, including any required forms. The Council
may adopt procedures for hearings not in conflict with this section, including but not
limited to time limits on oral testimony and limitations on written argument.
F. Hearing. Within 35 days of receiving the notice of appeal, the City Manager shall
schedule a hearing on the appeal before the Hearings Officer. At the hearing, the appellant
shall have the opportunity to present evidence and arguments as may be relevant. The
Hearings Officer may direct the City Attorney to draft findings of fact and interpretations
of code or law to be considered at a later meeting.
G. Standard of Review and Decision. The Hearings Officer shall determine whether the
City's decision was based on a preponderance of the evidence. A decision of the Hearings
Officer shall be based on the evidence received, in writing and signed by the chair, no later
than 30 days after the close of the hearing. The Hearings Officer may determine not to
suspend or revoke the license, or to revoke or suspend the license. If the Hearings Officer
upholds the decision to revoke the operating license, the Hearings Officer shall order the
licensee to discontinue use as a short-term rental. If the Hearings Officer reverses the
decision to revoke the operating license, the operating license shall be continued.
H. Finality. The Hearings Officer's decision shall be final on the date of mailing the
decision to the appellant. The Hearings Officer's decision is the final decision of the City
and is appealable only by writ of review to Circuit Court.
5.10.130 Discontinuance of Short-term Renal Occupancy.
A. After Revocation. After a short-term rental operating license has been revoked, the
dwelling unit may not be used or occupied as a short-term rental unless a subsequent
license is granted, and the licensee whose license has been revoked shall not be
eligible to reapply for a short-term rental license for short-term rental occupancy of
the same property for a period of two years.
B. After Expiration. If a short-term rental operating license expires, the dwelling unit
may not be used or occupied as a short-term rental until such time as a subsequent
license has been granted for that property.
Page 10 Updated 12-19-17
5.10.140 Remedies Not Exclusive.
The remedies provided in this chapter are in addition to, and not in lieu of, all other legal
remedies, criminal and civil, which may be pursued by the City to address any violation
of this code, the Development Code, or other public nuisance.
Page 11 Updated 12-19-17
ORDINANCE 575
AN ORDINANCE OF THE TOWN OF LOS ALTOS HILLS AMENDING
SECTION 10-1.702 AND ADDING SECTIONS 10-1.1202 THROUGH 10-
1.1208 TO THE LOS ALTOS HILLS MUNICIPAL CODE PERTAINING TO
SHORT-TERM RENTAL REGULATIONS WITHIN RESIDENTIAL ZONES
WHEREAS, the City Council of the Town of Los Altos Hills ("Town") wishes to amend
the Municipal Code with regard to regulation of short-term rentals in Town and establish
regulatory and enforcement guidelines.
NOW, THEREFORE, the City Council of the Town of Los Altos Hills does ORDAIN
as follows:
Section 1. AMENDMENTS
The following sections are hereby added to Title 10, Chapter 1 ("Zoning") of the Los
Altos Hills Municipal Code to read as follows. Sections and subsections that are not amended by
this ordinance are not included below, and shall remain in full force and effect.
Article 7. Accessory uses and structures permitted (R-A). is hereby amended:
10-1.702 Accessory uses and structures permitted (R-A).
(r) One short-term rental unit operated pursuant to the requirements of Article 12 of
this chapter.
Article 12. Short-term Rental of Residential Property is hereby added:
10-1.1201 Purpose and intent.
The purpose of this chapter is to establish regulations governing the short-term rental of
residential property within the Town of Los Altos Hills. The establishment of these regulations
will provide for additional residential options while ensuring that short-term rental activities do
not become a nuisance or a threat to public health, safety, or welfare due to excessive noise,
disorderly conduct, overcrowding, traffic congestion, illegal parking,. refuse accumulation, and
other effects related to short-term rentals.
Attachment 4
10-1.1202 Definitions.
For purposes of this chapter, the following definitions apply:
(a) "Primary residence" means the residence must be used as the owner/applicant's
primary residence for a minimum of 270 days per year and must be listed as the mailing address
with the Santa Clara County Assessor.
(b) "Short-term rental" means to provide transient lodging use in exchange for
compensation in any dwelling unit, in whole or in part, on residential property for a period of
thirty (30) consecutive calendar days or less.
(c) "Validated nuisance" means a prohibited use or impact associated with a short-term
rental including those listed within the Short-term Rental Policy and which sufficient
documentation is provided to confirm the occurrence and extent of the violation.
10-1.1203 Short-term rentals prohibited.
No person shall use or maintain, nor shall any person authorize, aid, facilitate or advertise
the use of, any residential property on any parcel for short-term rental without registering and
obtaining a short-term rental license from the Town of Los Altos Hills.
10-1.1204 General requirements.
Short-term rentals permitted on residential property shall be subject to following
restrictions and requirements:
(a) A maximum of one (1) short term rental unit is permitted per residential property.
(b) The short-term rental property shall contain the property owner's primary residence.
(c) The short-term rental shall comply with all applicable local, state, and federal laws,
including but not limited to state and local health, safety, fire, and building codes.
(d) The host must provide all renters with facilities for sleeping, bathing, and toileting
within a permanent dwelling that is suitable for human occupancy. Rental of sleeping space in or
on balconies, porches, tents, sheds, vehicles, garages or outdoor areas is prohibited.
(e) Short-term rental uses are permitted solely for residential purposes only. No events or
commercial uses are permitted. This includes site rentals for weddings, corporate
meetings/events/trainings, photo or video shoots, birthday parties, etc.
(f) All short-term rental parking must be provided on -site in approved parking areas. No
overnight street parking is permitted pursuant to Municipal Code section 4-3.1006.
(g) The host is responsible for ensuring the property does not become a nuisance due to
any short-term rental occupant activities. Any short-term rental with three (3) validated nuisance
violations will result in revocation of the short-term rental license.
10-1.1205 Conditional Short -Term Rental Permit Approval required.
An applicant may apply for a Conditional Short -Term Rental Permit if an exception to the
general requirements is requested or if a previously approved short-term rental license has been
revoked. A noticed public hearing before the Site Development Committee is required for
consideration of a Conditional Short -Term Rental permit.
(a) Additional limitations and restrictions may be imposed to ensure any nuisance
concerns or site -specific limitations are adequately addressed to ensure that the short-term rental
use would be compatible with the general intent of this Ordinance and the policies of the Town
of Los Altos Hills. Additional limitations or restriction may include but are not limited to:
i. limitation on number of rental rooms or occupants
ii. additional off-street parking provisions
iii. modification of quiet hours for occupants
iv. neighborhood notification and or ongoing communication requirements
(b) Pursuant to 10-1.1002 of the Municipal Code, the decision of the Site Development
Committee may be appealed to the Planning Commission.
10-1.1206 Fees.
The City Council may establish and set by resolution all fees and charges as may be
necessary to effectuate the purpose of this chapter.
10-1.1207 Violations a public nuisance —Penalties, nuisance abatement, and other
remedies.
Any short-term rental operated, conducted, or maintained contrary to the provisions of
this chapter shall be, and the same is hereby declared to be, unlawful and a public nuisance
which the City may seek to abate, remove, and enjoin in any manner provided by law. Such
remedies shall be in addition to any other remedies available to the City under this chapter or
applicable local or state law.
SECTION II. SEVERABILITY.
If any provision of this ordinance or the application thereof to any person or circumstance
is held invalid or unconstitutional, the remainder of this ordinance, including the application of
such part or provision to other persons or circumstances shall not be affected thereby and shall
continue in full force and effect. To this end, provisions of this ordinance are severable. The City
Council of the Town of Los Altos Hills hereby declares that it would have passed each section,
subsection, subdivision, paragraph, sentence, clause, or phrase hereof irrespective of the fact that
any one or more sections, subsections, subdivisions, paragraphs, sentences, clauses, or phrases be
held unconstitutional, invalid, or unenforceable.
SECTION III. EFFECTIVE DATE AND PUBLICATION.
This ordinance shall take effect thirty (30) days after adoption. Within fifteen days after
the passage of this ordinance the City Clerk shall cause this ordinance or a summary thereof to
be published once, with the names of those City Councilmembers voting for or against it in a
newspaper of general circulation in the Town of Los Altos Hills, as required by law.
INTRODUCED:
PASSED:
AYES:
NOES:
ABSTENTIONS:
ABSENT:
BY:
ATTEST:
City Clerk
APPROVED AS TO FORM:
City Attorney
2840788.1
Mayor
Created with a trial version of Syncfusion Essential DoclO.
Sec. 29.10.320. - New accessory dwelling units.
(a) Incentive program . Any accessory dwelling unit developed under an Incentive Program which may
be established by Resolution of the Town Council shall be made affordable to eligible applicants
pursuant to the requirements of the Incentive Program. A deed restriction shall be recorded
specifying that the accessory dwelling unit shall be offered at a reduced rent that is affordable to a
lower income renter (less than 80 percent AMI) provided that the unit is occupied by someone other
than a member of the household occupying the primary unit.
(b) Design and development standards .
(1) Number . Only one (1) accessory dwelling unit may be permitted on a lot. No additional
accessory dwelling unit is allowed upon a lot with an existing accessory dwelling unit.
(2) Permitted zones . Accessory dwelling units are allowed on lots in the R-1, R-D, R-M, R-1 D, HR,
and RC zones.
(3)
Setbacks . Attached accessory dwelling units shall comply with the setbacks of the zone for a
primary dwelling unit.
No detached accessory dwelling unit may be placed in front of the primary dwelling unit in the
R-1, R-D, R-M, and R-1 D zones.
Detached accessory dwelling units shall comply with the following minimum setbacks:
a. Front and side setbacks abutting a street of the zone for a primary dwelling unit.
b. Rear and side setbacks of five (5) feet in the R-1, R-D, R-M, and R-1 D zones.
c. Setbacks from any other structure located on the same lot of five (5) feet.
d. Setbacks for a primary dwelling unit, and located within the Least Restrictive Development
Area (LRDA), in the HR and RC zones.
An accessory dwelling unit with existing side and rear setbacks sufficient for fire safety shall be
permitted if the accessory dwelling unit is contained within the existing space of a primary
dwelling unit or accessory structure.
(4) Height . Accessory dwelling units shall not exceed one (1) story in height, and shall not exceed
fifteen (15) feet in height, unless the accessory dwelling unit is contained within the existing two-
story space of a primary dwelling unit or accessory structure; added to an existing two-story
primary dwelling unit; or added above an existing one-story accessory structure on a property
with an existing two-story primary dwelling unit in the R-1, R-D, R-M, and R-1 D zones.
Maximum unit size and maximum number of bedrooms . The maximum floor area of an
accessory dwelling unit is 1,200 square feet. The maximum number of bedrooms is two (2).
Detached accessory dwelling units exceeding a combined square footage of 450 square feet in
the R-1, R-D, R-M and R-1D zones shall not be subject to the Administrative Procedure for
Minor Residential Projects. Detached accessory dwelling units exceeding a combined square
footage of 600 or 1,000 square feet in the HR and RC zones shall not be subject to
Development Review Committee or Planning Commission approval.
(6) Floor area ratio (FAR) standards . All accessory dwelling units (attached or detached) are
allowed a ten (10) percent increase in the floor area ratio standards for all structures, excluding
garages.
Lot coverage . Accessory dwelling units must comply with lot coverage maximums for the zone
except with regard to the addition of a single efficiency unit.
(8) Parking . In addition to parking otherwise required for units as set forth in section 29.10.150 of
the Town Code, the number of off-street parking spaces required by this chapter for the primary
(5)
(7)
Attachment 5
Created with a trial version of Syncfusion Essential DocIO.
(9)
dwelling unit shall be provided prior to the issuance of a building permit or final inspection, for a
new accessory dwelling unit. When a garage is demolished in conjunction with the construction
of an accessory dwelling unit, or converted to an accessory dwelling unit, any lost off-street
parking spaces required for the primary dwelling unit may be located in any configuration on the
same lot as the accessory dwelling unit, including as tandem spaces, or by the use of
mechanical automobile parking lifts.
a. Exceptions . No parking spaces shall be required if the accessory dwelling unit meets any
of the following criteria:
1. The accessory dwelling unit is located within one-half mile of a public transit stop.
2. The accessory dwelling unit is located within an architecturally and historically
significant historic district.
3. The accessory dwelling unit is within the existing space of a primary dwelling unit or
an existing accessory structure.
4. When on -street parking permits are required but not offered to the occupant of the
accessory dwelling unit.
5. When there is a car share vehicle (as defined by the California Vehicle Code) located
within one block of the accessory dwelling unit.
6. When the Director finds that the lot does not have adequate area to provide parking.
Design, form, materials, and color . The design, form, roof pitch, materials, and color of a new
accessory dwelling unit shall be compatible with the primary dwelling unit and the
neighborhood. Entrances serving the accessory dwelling unit shall not be constructed on any
elevation facing a public street. Accessory dwelling units shall retain the single-family
appearance of the property.
(10) Town codes and ordinances . All accessory dwelling units shall comply with all the provisions
of this chapter and other applicable Town codes.
(11) Building codes . The accessory dwelling unit shall comply with applicable building, health and
fire codes. The accessory dwelling unit shall not be required to provide fire sprinklers if they are
not required for the primary dwelling unit.
(12) Denial . An application may be denied if it does not meet the design and development
standards. An application may also be denied if the following findings are made:
a. Adverse impacts on health, safety, and/or welfare of the public.
(13) Conversion of existing floor area . An accessory dwelling unit shall be permitted if the
accessory dwelling unit is contained within the existing space of a primary dwelling unit or
accessory structure. The following provisions shall apply:
a. The accessory dwelling unit shall be located within a zone for a single-family use.
b. The accessory dwelling unit shall have separate entrance from the primary dwelling unit.
c. The accessory dwelling unit shall have existing side and rear setbacks sufficient for fire
safety.
d. No parking spaces shall be required for the accessory dwelling unit.
(14) Rentals longer than 30 days . Rentals for durations of less than thirty (30) days, including
short-term rentals (as defined by the California Government Code), are prohibited.
(15) Maximum number of dogs, cats, or litters . All accessory dwelling units shall comply with
Section 4.40.010 of the Town code.
( Ord. No. 2270. i I. 2-6-18 )
Attachment 5
HoIF Za-ala
From: Kathy Kroesche <kathy.kroesche111@gmail.com>
Sent: Friday, November 02, 2018 1:45 PM
To: Holly Zappala
Subject: short term rentals
Dear Holly,
Regarding the Town of Los Gatos plans to address short term rentals, I would like to share my story. My
parents were both teachers in Portoia Valley and we would rent out our home in Menlo Park during the
summer starting in the 70s, decades before Airbnb. Now I am married to a Los Gatos High School teacher,
and we, out of necessity, have rented out our home for the past 9 summers in order to pay for repairs,
travel, and college for our daughters.
This next summer we are traveling to Uganda to work in an orphanage and teach teachers. We cannot
afford this travel without renting out our home. Ideally, we'd like to rent it for more than 30 days, but due
to the prevalence of Airbnb and other sites, we are finding longer terms longer than a week or two hard to
achieve. I hope the Town will consider the great expense of housing in our area and the need for people to
make ends meet using their own assets. Renting out one's own personal home is not easy. We would not do
it if it wasn't necessary.
Thank you for your consideration. The Town meeting on this issue is on my birthday so it will be a challenge
to slip away from family.
Take Care,
Kathy Kroesche
Cell 408-438-0103
1
Attachment 6
21.•
:
:
-
, a
:
Holly Zappala
From: Jennifer E Liebthal <jliebthal@gmail.com>
Sent: Tuesday, November 06, 2018 4:39 PM
To: Holly Zappala
Subject: Short Term Vacation Rentals
Hi Holly,
I support vacation rentals in Los Gatos. I am unable to make the November 15th meeting regarding short term rental
regulations as I will be out of town however I did want to provide some input for consideration. I think that having short
term rentals in Los Gatos can help bring more vacationers into Los Gatos and help promote and increase much needed
revenue for our local businesses. I think it may also help those in Los Gatos who have lived here for generations but are
finding it hard to make ends meet to subsidize their income by renting out a room, etc.
It may be nice to impose a short term rental tax and some laws saying that if any rental has multiple infractions (noise,
etc) then there is some consequence.. maybe being suspended from renting for some certain amount of time.
Thanks for your time,
Jennifer
J.
Attachment 7