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HomeMy WebLinkAboutCD Short-Term Rental Ordinance and Policy Resolution PPTShort Term Rental Program Ordinance and Policy Resolution San Rafael City Council November 4th, 2019 SAN RAFAEL THE CITY WITH A M ISS ION Background Short Term Rental Program Ordinance and Policy Resolution November 4th, 2019 Background Jan. 4, 2016-Council ask Staff to begin monitoring STR activity as part of JDU ordinance review June 10, 2016-Staff enters into contract with Host Compliance to provide the following STR monitoring services: Trend Monitoring; Address Identification Aug. 20, 2018-Staff provides Housing Report to City Council. Council directs staff to return with informational report on STRs. March-June, 2019: Staff conducts Community Survey, Stakeholder Interviews, and Community Meetings Feb. 19, 2019-Staff provides STR first Informational Report to City Council. August 5, 2019-Staff presents draft STR ordinance outlining minimum enforcement program model based on findings from Community Outreach and Best Practices. RA!="..q ~ 0 ' «' .,., ('"?-'-"' >-w,n-1 P. August 5th City Council Meeting •Staff directed to return with an Ordinance for City Council consideration that creates a Short Term Rental program with the minimal and moderate enforcement recommendations presented by Staff. •City Council also directed staff to consider the following additional elements: •Potential regulations for STRs on properties with shared driveways; •Regulations allowing travel trailers under certain specific conditions like those presented in the staff report; •Regulations aimed at restricting “party houses”; •Program guidelines outlining a three-strike system or other system to address so that problem locations could lose their right to act as a STR. Short Term Rental Program Ordinance and Policy Resolution November 4th, 2019 RA!="..q ~ 0 ' «' .,., ('"?-'-"' >-w,n-1 P. Follow-up Analysis Properties with Shared Vehicle Access Shared Entrance Shared Vehicle Maneuvering Area Y-Shaped: 2 listings Comb-Shape: 8 listings Shared Driveway & Parking Area: 2 listings Parking lots for Multifamily Properties: 29 listings Short Term Rental Program Ordinance and Policy Resolution November 4th, 2019 I I I I I Properties with Shared Vehicle Access •Staff found no other jurisdictions specifically regulating properties with shared vehicle access. •Staff reviewed existing agreements and easements in place on properties with shared vehicle access. In nearly all cases there were existing recorded easements, approved maneuvering diagrams, or agreements to address use of these shared access areas. Staff Recommendation: Requirement hosts to provide a “Parking Plan” at time of short-term rental registration. “Parking Plan” would provide documentation showing: •Existing agreements or easements, •Instructions for guests outlining the location of designated off-street parking, •Instructions for guests for maintain clear access of shared maneuvering areas. Blocked access of the shared maneuvering areas or guests parking outside of the design off-street spaces may be considered program violations subject to the three-strikes policy. Short Term Rental Program Ordinance and Policy Resolution November 4th, 2019 RA!="..q ~ 0 ' «' .,., ('"?-'-"' >-w,n-1 P. Travel Trailers •California laws and regulations establish minimum design and construction standards for manufactured homes to ensure life and fire safety comparable to a permanent structure. •These standards do not apply to Recreational Vehicles, including non-motorized travel trailers. Staff Recommendation: Since RVs and non-motorize travel trailers are not manufactured to the same egress, electrical, or sewage standards necessary for permanent use, staff recommends not allowing Travel Trailer’s to be used for Short-Term Rentals. Short Term Rental Program Ordinance and Policy Resolution November 4th, 2019 RA!="..q ~ 0 ' «' .,., ('"?-'-"' >-w,n-1 P. Party Houses •Staff has developed communication channels with Airbnb to promptly report and address potential STR listings being operated as “Party Houses.” •As a response to the shooting in Orinda, Airbnb is banning properties deemed high-risk of being a property house and is increasing their proactive response to addressing Party Houses. •Staff has also included enforcement procedures in the proposed policy resolution, including: •24-Hour Complaint Hotline •Required Local Contact •Three-Strikes Ban Short Term Rental Program Ordinance and Policy Resolution November 4th, 2019 RA!="..q ~ 0 ' «' .,., ('"?-'-"' >-w,n-1 P. Ordinance versus Policy Resolution Ordinance: Amends SRMC and creates Program Short Term Rental Program Ordinance and Policy Resolution November 4th, 2019 Resolution: Outlines Program Policies and Procedures Proposed Ordinance Zoning Code Amendments (SRMC 14.03.030) Add a definition for “Short Term Rentals”: “Short-term rental” means the rental of all or a portion of a dwelling unit for less than 30 days of consecutive tenancy. Amend the definition of “Hotel” by removing “multiple guest rooms”: "Hotel" means any building or portion thereof containing multiple guest rooms designed for compensation, primarily for the accommodation of transient travelers, with eating, drinking, banquet and recreational facilities related to the hotel use, but not including those facilities defined as residential care facilities. Amend the definition of “Home Occupation” to explicitly not apply to short-term rentals: "Home occupation" means an accessory use of a dwelling unit, conducted entirely within the dwelling unit, carried on by one (1) or more persons, all of whom reside within the dwelling unit, as further defined in Section 14.16.220, Home occupations, but not including those facilities defined as short-term rentals in Section 14.03.030 of this Code. Short Term Rental Program Ordinance and Policy Resolution November 4th, 2019 TOT Definition Amendments (SRMC 3.20.020) Add “Short Term Rentals” to definition of “Hotel” : “Hotel” means any structure, or any portion of any structure, which is occupied or intended or designed for occupancy by transients for dwelling, lodging or sleeping purposes, and includes any hotel, inn, tourist home or house, motel, studio hotel, bachelor hotel, lodging house, rooming house, apartment house, dormitory, public or private club, mobile home or house trailer at a fixed location, short-term rental or other similar structure or portion thereof. Short Term Rental Program Ordinance and Policy Resolution November 4th, 2019 Add new: Chapter 10.110-Short Term Rental Program New Chapter (10.110-Short Term Rental Program)- •Creates new program, and references policy resolution for program polcies and procedures; Short Term Rental Program Ordinance and Policy Resolution November 4th, 2019 Short-Term Rental Program Policy Resolution Eligible Properties Properties must meet the following four criteria: 1.Unit must be offered by the Permanent Resident;2.Unit must be the primary residence of the Permanent Resident;3.Permanent Resident must be a person, and cannot be a business or organization;4.Unit must be registered and in good standing with the City of San Rafael. Short Term Rental Program Ordinance and Policy Resolution November 4th, 2019 Ineligible Properties The following properties are ineligible from being used as a STR: 1.Income-restricted affordable housing, including Below-Market-Rate (BMR) units and public housing;2.Student housing, dormitories and Single-Room-Occupancy (SRO) building;3.Commercial or industrial zoned lots;4.Non-residential areas within buildings, such as storage areas, and living/sleeping quarters added in garages;5.Motorized Recreation Vehicles (RVs), including non-motorized Travel Trailers;6.Boats/House Boats;7.Teepees, Yurts, Tents, and Treehouses;8.Sleeping Quarters in Vans or Cars. Short Term Rental Program Ordinance and Policy Resolution November 4th, 2019 Properties with Multiple Residential Units •Short-Term Rental would be allowed in multi-family properties as well as lots with single family homes and an accessory structure, second unit, or junior second unit. •Units must still meet primary residency requirements. •Hosts cannot offer both an accessory structure and the entire main home for rent at the same time. But Host can offer an accessory structure and a room in the main home at the same time. Short Term Rental Program Ordinance and Policy Resolution November 4th, 2019 Program Requirements Resolution Policy Element Description Occupancy Limits Occupancy is restricted to two people per bedroom plus two additional individuals. Properties must also be able to provide the appropriate off-street parking spaces for the occupancy they are providing. Ex. a studio could allow 2 or less people, a 1-bedroom could allow 4 or less people, a 3-Bedroom house would be 6 or less people. However, a 3-Bedroom house with only one (1) off-street parking space could only allow four (4) guests. Parking Requirements Listings must provide one (1) off-street parking space for every four (4) guests. A minimum of one (1) off-street parking space is required per listing. For properties with multiple residentialunits used as short-term rentals, each rental listing must have its own designated off-streetparking. Properties with Shared Vehicle Access must also provide a “Parking Plan” Registration & Fees Short-Term Rental hosts will be required to submit an initial registration and annual renewal. Hosts will need to pay the following registrations fees: •Initial Registration Fee: $170 •Annual Renewal Fee: $135Hosts will also be required to collect and remit TOT (10% City, 2% County) for all rentals. Short Term Rental Program Ordinance and Policy Resolution November 4th, 2019 Program Requirements Resolution Policy Element Description Quarterly Reporting Requirements for Hosts Reporting each quarter on the number of days the SRT has been rented since the initial registration or the last report. Hosting Platform Requirements •Noticing of City Regulations to Hosts, •Confirmation of Listing Registration with City, •Reporting and Record Keeping Measures. Administrative Enforcement Procedures and fines would be conducted in accordance with SRMC Chapter 1.44 and Chapter 1.46. Revocation of Registration. CDD can revoke a program registration at any time for the following reasons:1.The property has not collected or remitted their TOT;2.The property has received three verified violations over a two-year period, also known as a three-strikes policy;3.The property registration included misrepresented or omitted information;4.The registration was transferred or attempted to be transferred to another individual. Short Term Rental Program Ordinance and Policy Resolution November 4th, 2019 Registration STR hosts would be required to register through the Host Compliance software, by providing the following: •Property Information including documentation of the above requirements, property details, and a 24-hour local contact Business License Registration; •Proof of a self-certified property inspection, and from properties in a Wildland-Urban Interface, the registration must also include a vegetation inspection; •Documentation of interior signage providing local contact information, parking and occupancy requirements, garbage disposal and Noise Ordinance requirements, and Emergency Information. Short Term Rental Program Ordinance and Policy Resolution November 4th, 2019 Fiscal Impact Compliance Monitoring Software Majority of administrative services provided through an expanded contract with Host Compliance: STR Address Identification: an online dashboard with address and rental information for all identifiable STRs Compliance Monitoring: outreach and monitoring of STR listings for compliance with a jurisdiction’s zoning and regulations Permitting and Registration: online and mobile registration or permitting including collection of payments, signatures, and required documents Rental Activity Monitoring and Tax Collection: monitoring of STR listing rental activity and support for TOT collection Complaint Hotline: 24/7 staffed hotline for neighbors to report non-emergency STR problems Short Term Rental Program Ordinance and Policy Resolution November 4th, 2019 Staffing & Program Costs Staff will be able to limit hours needed for administrative tasks by utilizing the Host Compliance software. The increase in hours associated with a new program is anticipated to be covered by existing staffing levels. One Time New Existing New Host Compliance Services Address Identification $8,487 Mobile Registration $5,000 Compliance Monitoring $3,339 Rental Activity Monitoring $4,452 24/7 Dedicated Hotline $2,671 Host Compliance Sub-total Implementation Staffing (One-Time) Program Management $48.32 80 $3,866 City Attorney $114.84 10 $1,148 STR Workshop $67.76 8 $542 Technology development $67.76 20 $1,355 Permit Processing $57.56 20 $1,151 Community Development Staffing (On-going) Program Management $48.32 80 $3,866 Code Enforcement $48.32 20 $966 Annual Audit $48.32 20 $966 Finance Staffing (On-going) Business License & TOT Processing $60.24 20 $1,205 $1,205 Business License & TOT Review $89.63 20 $1,793 $1,793 One-Time Staffing Subtotal $8,062 On-Going Staffing Subtotal Year One Total $40,807 On-GoingTotal Est. Annual On-GoingEst. Hourly $23,949 $8,796 $32,745 Short Term Rental Program Ordinance and Policy Resolution November 4th, 2019 Estimated Annual STR Program Balance Year 1- Fees Ongoing- Fees TOT Year 1 Ongoing Year 1 Ongoing Low-End $40,807 $32,745 $18,051 $40,807 $32,745 $18,051 $18,051 Mean $40,807 $32,745 $39,738 $40,807 $32,745 $39,738 $39,738 High-End $40,807 $32,745 $105,183 $40,807 $32,745 $105,183 $105,183 Annual Balance * Program fees are calculated as cost-recovering for program expenses. If fees are collected, Year 1 and Ongoing program balances would be the same as they reflect the TOT Revenue collected that year. Projection Revenue Expenditures Short Term Rental Program Ordinance and Policy Resolution November 4th, 2019 City Council Options City Council Options The City Council has the following options to consider on the matter: •Introduce and pass the ordinance to print and adopt the resolution creating a “Short-Term Rental Program”. •Introduce and pass to print as amended an ordinance and/or resolution and direct staff to return with the amended ordinance and/or resolution at a date certain for vote •Direct staff to return with more information. •Take no action. Short Term Rental Program Ordinance and Policy Resolution November 4th, 2019