Loading...
HomeMy WebLinkAboutPPT Short-term Rental Ban PC 04 15 26Short-Term and Vacation Rentals Gabriel Elliott, Director of Community Development & Housing April 15, 2026 Background •On December 12, 2023, the Planning Commission, by a unanimous vote, adopted Resolution No. 2023-043PC forwarding a recommendation that the Mayor and City Council approve Development Code Amendment 23-01, amending Section 19.02.050 (Basic Provisions – Definitions) and Chapter 19.04 (Residential Zones) of the City of San Bernardino Development Code (SBMC Title 19) in order to establish a Short Term and Vacation Rental Program in the City of San Bernardino. •On February 21, 2024, staff took forward a recommendation to the Mayor and City Council for the adoption of a regulatory scheme for Short-Term Rentals. •At the meeting, the City Council directed staff to conduct additional analysis on enforcement measures and the effects of a Short-Term Rental Program on the City’s housing market. •On June 5, 2024, when the item was brought back to the City Council as directed, the Council, a narrow majority, banned short-term vacation rentals in the city, and requested staff bring back an enforcement plan. Background The City of San Bernardino does not currently have an ordinance that expressly regulates STRs and has experienced the negative effects of excessive noise, parking problems and discarded trash on surrounding properties, resulting in numerous complaints, creating a threat to the public interest, health, safety, convenience, and welfare of the community. San Bernardino has received numerous complaints about residents leasing their residential properties to travelers and for weekend retreats as short-term vacation rentals. Common complaints assert that the rentals cause conditions that degrade the quality of residential neighborhoods. Background The City’s Municipal Code (SBMC) does not specifically address short-term and vacation rentals. However, a commercial use is generally prohibited in residential zones, unless specifically permitted. Because the SBMC does not expressly prohibit short-term vacation rentals, the issue of the SBMC’s intent is disputed by residential property owners who wish to lease to tourists and/or retreatants for short stays. SHORT TERM RENTAL PROGRAM A Short-Term Rental program will ensure that the use will be recognized as a bona fide land use in the development code with a definition and accompanying development standards. The City will adopt and implement specific revisions to the SBMC that would regulate the land use. SHORT TERM RENTAL BAN With a ban in place, the City would no longer need to rely on various interrelated code provisions that together proscribe vacation rentals. The City will adopt and implement specific revisions to the SBMC that would ban short-term vacation rentals outright in residential zones. SHORT TERM RENTAL BAN A clear prohibition may deter violations because it would create less confusion among homeowners. The proposed ban in the city will prohibit STRs in the fire prone areas of the city which will include properties zoned RE (Residential Estate and RL (Residential Low). SHORT TERM RENTAL BAN To effectively ban short term rentals, the city would first need to identify those properties that are currently engaged in the short-term rental activities and officially notify them of the ban. WHERE ARE THEY ? WHERE ARE THEY ? ASSOCIATED COSTS •The city has engaged the services of Deckard Technologies, a company that utilizes data science expertise to assist local governments with managing compliance activity and enforcement, such as short-term rental (STR) properties. •Deckard Technologies will use Rentalscape platform to accurately track activity within the City of San Bernardino, to identify the exact addresses of the STR listings within the City limits. •There are cost implications depending on the level of service required by the city. The contract for Rentalscape only, for the identification, monitoring, and compliance letters is $7,500, annually. Contract for Rentalscape, Online Registration and TOT for the above along with registration and TOT collection is $16,500 annually. ASSOCIATED COSTS •The maps identified in slides 10 and 11 are products of Deckard Technology. For $7,500, Deckard Technology will identify properties registered on the various platforms, determine how many days their ads are up, and match addresses to properties in the city. •For the $16,500, Deckard Technologies will track, collect TOT, and remit to the city. Deckard will be available via phone should the Mayor and City Council have questions or comments about their services. TRANSIENT ORIENTED TAXES •Per Section 3.55.020(A), each transient is subject to and shall pay a transient lodging tax in the amount of 10% of the room rental charged by the operator. •Based on the definitions in Section 3.55.020(a), staff believes that the existing TOT language applies to short term rentals. GENERAL PLAN GOALS & POLICIES •The City of San Bernardino General Plan includes goals and policies to guide future housing development, as follows: •Land Use Goal 2.1: Preserve and enhance San Bernardino’s unique Neighborhoods. •and Use Goal 2.2: Promote development that integrates with and minimizes impacts on surrounding land uses. KEY STRATEGIC TARGETS & GOALS An Ordinance regulating or banning Short Term and vacation rentals aligns with Key Target Goal No. 3: Improved Quality of Life and, more specifically, 3a: Improve the City’s appearance, cleanliness, and attractiveness. KEY STRATEGIC TARGETS & GOALS •Regulation will update the Development Code to allow short term and vacation rentals in all residential zones. The amendment to the Development Code will ensure consistency with the City’s land use designations as required by the City’s General Plan. •A ban will also update the Development Code banning short term and vacation rentals in the RE and RL residential zones. The amendment to the Development Code will ensure consistency with the City’s land use designations as required by the City’s General Plan. FISCAL IMPACTS Transit Occupancy Tax associated with this program has the potential to contribute up to $324,000, annually. At same time, there is a potential cost of up to $16,500 for a program to monitor the locations of short term and vacation rentals in the city. WHAT OTHER CITIES ARE DOING •For violations, the City had proposed a fine of $1000.00/day with no renewals after 3 violations. This fee is consistent with what other agencies are assessing for violations. •Outdoor noise disrupting the peace is generally prohibited between 10 pm and 7 am. •All the agencies require an annual license fee ranging from $100.00 in Santa Monica to $1000.00 in Palm Springs. A fee of $500 to $600 had been proposed for San Bernardino. •All the cities also restrict the number of STR licenses to no more than two. •In response to Council concerns regarding process and procedure for regulation and enforcement, staff contacted the following cities, and the County of San Bernardino: •Big Bear; Los Angeles; Palm Springs; Santa Monica, and San Bernardino County. WHAT OTHER CITIES ARE DOING •Most agencies prohibit street parking or parking on neighboring properties. Parking must be on designated driveways. •Per State Law, ADUs are prohibited from being utilized as ADUs. •Some jurisdictions require an initial inspection followed by annual inspections. •All jurisdictions contacted require payment of TOT. •All agencies limit the number of occupants per bedroom. •Length of stay is not regulated by most jurisdictions. •Code Enforcement is used by most jurisdictions for enforcing STR regulations. •The City of Rancho Cucamonga utilizes two part-time code officers to regulate their STR program. The equivalent cost for one code enforcement officer (I) in San Bernardino is $107,000, which includes salary and benefits. SCOPE City records indicate five (5) CRMs over the last four years for STRs. There were CRMs at the 400 block of S D Street; 1 CRM at the 500 block of Edgerton Dr. 1 CRM at the 400 block of Edgerton Dr. Several complaints at the 600 block of Ashton Str. SCOPE & CEQA •The Planning Division conducted an environmental evaluation in connection with proposed Ordinances and concluded that it is exempt from CEQA under Section 15061(b)(3) (Common Sense Exemption) of the CEQA Guidelines because the proposed Ordinance to regulate or ban short term and vacation rental will not create significant effects on the environment as it regulates or prohibits short term rentals in all residential zones. • As necessary, the city will dedicate one code enforcement officer specifically for this task but will rely on the resources of the entire department. RECOMMENDATION It is recommended that the Mayor and City Council take the following action: 1.Adopt Ordinance No. MC-XX-X, establishing a regulatory program for short term and vacation rentals in residential zones in the City of San Bernardino; or 2.Adopt Ordinance No. MC–XX-X banning short-term rentals in residential zones in the City of San Bernardino). 3.That the Council take no action. Questions?