HomeMy WebLinkAbout2021-17 - Prohibiting Short Term RentalsORDINANCE NO. 2021-17
AN URGENCY ORDINANCE OF THE CITY COUNCIL OF THE CITY OF COSTA MESA,
CALIFORNIA, PROHIBITING THE OPERATION OF SHORT TERM RENTALS IN ALL
AREAS OF THE CITY OF COSTA MESA
THE CITY COUNCIL OF THE CITY OF COSTA MESA DOES HEREBY FIND AND
RESOLVE AS FOLLOWS:
WHEREAS, the City of Costa Mesa, pursuant to its police power, may adopt
regulations to protect the health, safety and welfare of the public, Cal. Const. art. XI, § 7,
Cal. Govt. Code § 37100, and may declare what uses and conditions constitutes a public
nuisance; and
WHEREAS, Government Code Section 38771 authorizes the City, through its
legislative body, to declare actions and activities that constitute a public nuisance; and
WHEREAS, STRs are not specifically defined in the Costa Mesa Municipal Code,
actively regulated or expressly prohibited by the City, but are considered a commercial
operation in a residential zone which is not permitted; and
WHEREAS, there is currently a housing crisis state-wide; and
WHEREAS, the use of common online marketplaces for short-term rental listings
including but not limited to AirBnB, VRBO, HomeAway, FlipKey, Craigslist, smaller online
marketplaces focused on specific destinations, and individual on-line listings by owners
has facilitated the conversion of residential units to short term uses throughout California
in general and Costa Mesa in particular; and
WHEREAS, the marketing of housing units otherwise available for long term
occupancy for transient uses, which has been facilitated by these online marketplaces,
further reduces and threatens the availability of housing, including affordable housing,
within the City during the state housing crises; and
WHEREAS, STRs are currently operating in the City, such that the City has also
begun experiencing an increase in the number of complaints related to these operations,
which complaints have included noise, vandalism, gun -related incidents including a drive -
by shooting, parking violations, and disturbing the peace, and have negatively impacted
local neighborhoods from these nuisance activities; and
WHEREAS, there is currently a state of emergency due to the COVID-19
pandemic. This pandemic, which poses a continuing threat of infection to residents, has
an incubation period of up 14 days; research demonstrates that some persons who carry
the disease may be asymptomatic and pass it on to other individuals. Individuals who
travel without the proper social distancing and adherence to health and safety measures
can contribute to the spread of the disease, such that the un-regulated use of short-term
rentals without specific health and safety safeguards will serve as a vector of the
pandemic; and
Ordinance No. 2021-17 Page 1 of 6
WHEREAS, on September 24, 2021, Senate Bill 60, Residential short-term rental
ordinances: health or safety infractions: maximum fines, was filed with the Secretary of
State, as an urgency statute necessary for the immediate preservation of the public
peace, health, or safety within the meaning of Article IV of the California Constitution and
went into immediate effect. The facts constituting the necessity were found to be that due
to the severe strain on public resources as restrictions related to COVID-19 are lifted
statewide, it is necessary that this act take effect immediately. SB 60 amends
Government Code sections 25132 and 26900 to raise the maximum fines for violation of
an ordinance relating to a residential short-term rental, that is an infraction and poses a
threat to health or safety, to $1,500 for a first violation, $3,000 for a 2nd violation of the
same ordinance within one year, and $5,000 for each additional violation of the same
ordinance within one year of the first violation. SB 60 also makes these violations subject
to the process for granting a hardship waiver.
WHEREAS, by exempting home -sharing, as defined, it is the express intent and
purpose of this Ordinance: 1) that any and all such existing or future home sharing use
or uses shall not be considered legally non -conforming within the meaning of Chapter X
of the Zoning Code or any other law providing that they would be exempt from future law
or regulation; 2) that such uses be subject to any and all other applicable provisions of
the Costa Mesa Municipal Code and/or other law; 3) that this exemption be construed
narrowly; 4) to maintain the status quo of no affirmative regulation for home -sharing STRs
in existence as of December 1, 2020 only; and 5) it is not the intent of this Ordinance to
otherwise make home -sharing a legal and/or a permitted use; and
WHEREAS, the City Council finds that the provisions of this Ordinance are
consistent with the City of Costa Mesa's General Plan; and
WHEREAS, this Ordinance has been reviewed for compliance with the California
Environmental Quality Act (CEQA), the CEQA Guidelines, and the City's environmental
procedures, and has been found to be exempt pursuant to Section 15061 (b)(3) (General
Rule) of the CEQA Guidelines, in that the City Council hereby finds that it can be seen
with certainty that there is no possibility that the passage of this Ordinance will have a
significant effect on the environment; and
WHEREAS, the City Council recognizes that there is a need to enact the
restrictions contained in this Ordinance immediately as an urgency ordinance to protect
the public health, safety and welfare; and
WHEREAS, all legal prerequisites prior to the adoption of this Ordinance have
occurred.
Now, therefore, THE COSTA MESA CITY COUNCIL DOES HEREBY ORDAIN AS
FOLLOWS:
Section 1: Recitals. The City Council finds that all the recitals, facts, findings, and
conclusions set forth above in the preamble of this Ordinance are true and correct.
Ordinance No. 2021-17 Page 2 of 6
Section 2: Findings. The City Council makes and adopts as findings the facts and
conclusions set forth above in the preamble of this Ordinance and for the reasons stated
in the recitals, finds that the operation of Short Term Rentals in the City constitutes a
current and immediate threat to the public health, safety and welfare. The Council further
finds that the approval of use permits, variances, interpretations, building permits, and/or
or any other applicable entitlement for use which is required in order to comply with the
City's Zoning Code, codified at Title 13 of the Costa Mesa Municipal Code, would result
in these threats to public health, safety, or welfare.
Section 3: Definitions. Unless defined otherwise in this section, the definitions of the
Zoning Code, as may be amended, shall apply to this Ordinance; if not defined in this
section or the Zoning Code, the definitions set forth elsewhere in the Costa Mesa
Municipal Code, as may be amended, shall apply.
Advertise means the publication or dissemination of an advertisement.
Advertisement means and includes any written or verbal statement, illustration, or
depiction which is calculated to induce, including any written, printed, digital, graphic, or
other material, billboard, sign, or other outdoor display, public transit card, other periodical
literature, publication, or in a radio or television broadcast, or in any other media.
Compensation means and includes, but is not limited to, for any form of monetary or non —
monetary consideration, including but not limited to money, goods, or services, as well as
in -kind exchanges of goods, services, or premises.
Existing means in existence as of December 1, 2020.
Home -sharing means a rental by a natural person of that person's primary residence or
a lawfully existing accessory dwelling unit or junior accessory dwelling unit (where short-
term rentals are not otherwise prohibited) on the property thereof as a short-term rental
while that person is residing, occupying and physically present on the property, provided
that the natural person had already commenced home -sharing for compensation of their
existing primary residence and/or lawfully existing accessory dwelling unit or junior
accessory dwelling unit no later than December 1, 2020; home -sharing does not include:
acts by other than natural persons; and/or a boardinghouse.
Primary residence a natural person's residence in which that person holds a legal interest
in the property and resides therein for more than nine (9) continuous months of the
calendar year.
Rental, rent, rented, or renting means and includes, but is not limited to, any form of
monetary or non —monetary compensation, including but not limited to money, goods, or
services, as well as in -kind exchanges of goods, services, or premises, for the use or
occupancy of any portion of a single family dwelling, multi -family unit, bedroom of a
primary residence, accessory dwelling unit or junior accessory dwelling unit.
Short Term Rental or STR means a single family dwelling, multi -family unit, bedroom of
a primary residence, accessory dwelling unit or junior accessory dwelling unit within all
Ordinance No. 2021-17 Page 3 of 6
zones that support or include residential uses, whether as a permitted use or conditionally
permitted use, which is rented to one or more persons for compensation for the purpose
of dwelling, lodging, occupying, and/or hosting of an event or events, for a period of thirty
(30) or fewer consecutive days. "Short-term rental' encompasses such dwelling units
regardless of whether the owner, permanent occupant or other person in possession
and/or control of such unit is present during the rental period except as otherwise set forth
herein. Short Term Rental or STR does not include a hotel, motel, single room occupancy
hotel, group home including a sober living home, a state -licensed residential care facility,
or a boardinghouse unless that boardinghouse rents one or more rooms for compensation
for a period of thirty (30) days or less.
Section 4: Short Term Rentals Prohibited. The operation of any and all types of short
term rentals other than while home -sharing is prohibited, and no person shall, for
compensation, rent, lease, offer to rent or lease, or whether or not compensated,
advertise the availability of, a short term rental in any area and/or zoning district within
the City of Costa Mesa other than a natural person engaged in home -sharing.
Section 5: Penalties. A violation of this Ordinance is a misdemeanor that may
alternatively be enforced as an infraction, and shall constitute a public nuisance. A
violation of this Ordinance may be enforced pursuant to the provisions of Section 13-16,
Chapter II of Title I and/or Chapter III of Title 20 of the Costa Mesa Municipal Code.
Section 6. Emergency Declaration. The City Council declares this Ordinance to be an
emergency measure, to take effect immediately upon adoption pursuant to California
Government Code section 36934. The facts constituting the emergency are as follows:
There is currently a state-wide housing crisis. The use of common online marketplaces
for short-term rental listings including but not limited to AirBnB, VRBO, HomeAway,
FlipKey, Craigslist, smaller online marketplaces focused on specific destinations, and
individual on-line listings by owners has facilitated the conversion of residential units to
short term rental uses throughout California in general and Costa Mesa in particular. The
marketing of housing units otherwise available for long term occupancy for transient uses,
which has been facilitated by these online marketplaces, further reduces and threatens
the availability of housing, including affordable housing, within the City. In addition, STRs
are currently operating in the City, such that the City has also begun experiencing an
increase in the number of complaints related to these operations, which complaints have
included noise, vandalism, gun -related incidents including a drive -by shooting, parking
violations, and disturbing the peace, and have negatively impacted local neighborhoods
from these nuisance activities. Further, there is currently a state of emergency due to
the COVID-19 pandemic. This pandemic, which poses a continuing threat of infection to
residents, has an incubation period of up 14 days; research demonstrates that some
persons who carry the disease may be asymptomatic and pass it on to other individuals.
Individuals who travel without the proper social distancing and adherence to health and
safety measures can contribute to the spread of the disease, such that the un-regulated
use of short-term rentals without specific health and safety safeguards will serve as a
vector of the pandemic.
Section 7: Compliance with CEQA. Adoption of this Ordinance is exempt from the
California Environmental Quality Act (CEQA) pursuant to Section 15061 (b)(3) (General
Ordinance No. 2021-17 Page 4 of 6
Rule) of the CEQA Guidelines because it can be seen with certainty that there is no
possibility that the passage of this interim Ordinance will have a significant effect on the
environment.
Section 8: Inconsistencies. Any provision of the Costa Mesa Municipal Code or
appendices thereto inconsistent with the provisions of this Ordinance, to the extent of
such inconsistencies and no further, is hereby repealed or modified to that extent
necessary to affect the provisions of this Ordinance.
Section 9: Severability. If any chapter, article, section, subsection, subdivision,
sentence, clause, phrase, word, or portion of this Ordinance, or the application thereof to
any person, is for any reason held to be invalid or unconstitutional by the decision of any
court of competent jurisdiction, such decision shall not affect the validity of the remaining
portion of this Ordinance or its application to other persons. The City Council hereby
declares that it would have adopted this Ordinance and each chapter, article, section,
subsection, subdivision, sentence, clause, phrase, word, or portion thereof, irrespective
of the fact that any one or more subsections, subdivisions, sentences, clauses, phrases,
or portions of the application thereof to any person, be declared invalid or unconstitutional.
No portion of this Ordinance shall supersede any local, state, or federal law, regulation,
or codes dealing with life safety factors.
Section 10: Uncodified Ordinance. This Ordinance shall not be codified in the Costa
Mesa Municipal Code unless and until the City Council so ordains.
Section 11: Effective Date. This Ordinance shall become effective immediately upon
adoption.
Section 12: The City Clerk shall certify the adoption of this Ordinance and shall cause
the same to be posted or published in the manner as required by law.
Ordinance No. 2021-17 Page 5 of 6
PASSED, APPROVED AND ADOPTED on this 2nd day of November, 2021.
John Stephens, Mayor
ATTEST:
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Brenda Green, ity Clerk
STATE OF CALIFORNIA )
COUNTY OF ORANGE )
CITY OF COSTA MESA )
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APPROVED AS TO FORM:
Kimberly H II Barlow, City Attorney
I, BRENDA GREEN, City Clerk of the City of Costa Mesa, California, DO HEREBY
CERTIFY that the foregoing Urgency Ordinance No. 2021-17 was regularly introduced
and adopted by the City Council of the City of Costa Mesa, California, at a regular meeting
thereof held on the 2"d day of November, 2021, by the following vote of the City Council:
AYES: COUNCILMEMBERS: CHAVEZ, GAMEROS, HARLAN, HARPER, REYNOLDS,
MARR, AND STEPHENS
NOES: COUNCILMEMBERS: NONE
ABSENT: COUNCILMEMBERS: NONE
IN WITNESS WHEREOF, I have hereby set my hand and affixed the seal of the
City of Costa Mesa this 3rd day of November, 2021.
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Brenda Green, ity Clerk
Ordinance No. 2021-17 Page 6 of 6