Updated October 4, 2016 Home Sharing City Council Workshop - October 18
As discussed at the February 23, 2016 City Council workshop, staff intends to prepare a separate, subsequent ordinance for Council consideration that would create a new type of STR permit allowing “home sharing” in residential neighborhoods. Under the home sharing model, a homeowner resides on the property and rents out a portion of his/her/their home. The Short-Term Rental Advisory Committee was generally in favor of allowing home sharing in single family neighborhoods as staff’s research confirmed this STR model typically generates few, if any, complaints in Anaheim and other communities. Staff will seek input from home sharing operators during ordinance preparation. City staff will present recommendations and options for a potential home sharing ordinance in Anaheim. Depending on the results of the workshop, an ordinance could be presented for consideration by the City Council in November 2016.
Updated August 11, 2016 The renewal application is now available. Click here to download.
Updated July 14, 2016 On July 12, 2016, the City Council approved the seconding reading of two new ordinances affecting short-term rentals. The background, staff report and ordinances are available for viewing by clicking on this link.
The ordinance referred to as the “STR Regulations and Ban on New STRs Ordinance” has been updated to incorporate a number of changes recommended by the Acting City Attorney and discussed at the June 29th City Council special meeting. Click here to view the ordinance.
The ordinance referred to as the “STR Amortization Ordinance” reflects an 18-month (“phase-out”) amortization period. Click here to view the ordinance. The “Amortization Ordinance” includes a “wind down” period of 18-months. The 18-month amortization period begins on August 11, 2016, which would be the effective date of the ordinances. That means a licensed STR could continue to operate until February 11, 2018.
City Council consideration of an updated fee program associated with the approved ordinances is tentatively scheduled for the August 9 Council meeting. Click here to view an outline of the proposed STR fees that were part of the June 29th City Council special meeting staff report.
Updated July 27, 2016 Home Sharing Pilot Program Description Available for Public Comment; Comment Period Extended Until August 12th
At the February 23 STR City Council Workshop, staff proposed that the City establish a new type of permit to allow home sharing STRs in residential zones. This model is one where the legal owner of the property resides in the home as his/her primary residence and rents or “shares” a portion of the home with guests for periods of less than 30 days. This type of permit is commonly referred to as an “owner–occupied” or “hosted” STR.
As shared at the June 29th City Council special meeting, as a preliminary step in preparing an ordinance for the City Council’s consideration, staff prepared a Frequently Asked Questions (“FAQ”) document for a proposed Home Sharing Pilot Program (also attached as a PDF to this email). The answers to the questions posed in the FAQ provide an overview of what it would mean to be a “home sharer”. In addition, the FAQ outlines proposed operational conditions and provides a general overview of how such a permit program would work. For example, permits would only be issued to the legal owner of the home who must reside in the home as his/her primary place of residence. No person or family trust would be allowed to apply for or hold more than one home sharing STR permit. In addition, staff proposes that no more half the number of bedrooms in the home be used for “home sharing” purposes. Staff proposes the “home sharing” STR permit program be established as a pilot program with an initial limit of 50 permits. This would allow the City to monitor the effectiveness of the ordinance during the first year of its implementation to ensure that “Home Sharing” STRs are being operated as intended and are not causing negative impacts in residential neighborhoods. Prior to conclusion of the pilot program’s first year, staff would report back to the City Council with recommendations on whether to continue, expand or modify the program.
Please submit your comments on the proposed home sharing pilot program to: STRComments@anaheim.net with the subject line “home-sharing by Friday, August 12th, 2016. Click on this link to read an overview of the proposed home sharing pilot program. Comments received will be considered as the FAQ document is formulated into an ordinance that would be presented to the City Council for its consideration in September 2016.
Short-Term Rental Moratorium Update Background
The moratorium for short term rentals, was first adopted by the City Council on September 15, 2015 and subsequently extended on October 20, 2015 until May 3, 2016. On April 12, 2016, the City Council unanimously voted to extend the moratorium until May 3, 2017. Click here to view the April 12, 2016 City Council Agenda and staff report. No new Short-Term Rental Permit applications will be accepted during the moratorium.
Although significant progress has been made towards identifying strategies that may address the conditions that led to the current moratorium, it is clear that the drafting of the two ordinances cannot be completed and, in the case of the adoption of one of the proposed ordinances, become effective, before the expiration of the current moratorium period, which is May 3, 2016.
Consequently, on April 12, 2016, staff recommended to City Council that the moratorium be extended and the City unanimously voted to extend the moratorium. The adopted moratorium extension is the third and final allowed under State law. Staff made it clear at the April 12th meeting, that staff intends to present the ordinances for Council consideration within the next few months; however, in an abundance of caution should there be unanticipated delays, staff and the City Attorney recommended the moratorium be extended by the maximum one-year period allowed by law (expiring on May 3, 2017).
As directed by Council at the February 23 workshop, staff is currently working on two ordinances for future consideration. Clickhere to view the February 23, 2016 City Council Workshop. One ordinance would ban any new STRs in single and multi-family neighborhoods and strengthen current operational and enforcement standards to address the most common complaints. The ordinance would ensure the City can take immediate enforcement action on operators that commit “major” violations of the ordinance and make it easier for the City to revoke permits when circumstances warrant. While this ordinance would ban new STRs, existing licensed STRs would be allowed to continue as long as they were operating in a lawful manner and continue to renew their permit annually. The second ordinance would include the same enhanced operational and enforcement standards but would also amortize, or phase out, existing STRs. Staff is working with the City Attorney to evaluate various legal and practical issues associated with amortizing or phasing out existing STRs. Once adopted, staff would evaluate the effectiveness of either ordinance for a 12-month period and report back to the Council. The 12-month “test” period would allow the City to assess if the new ordinance was successful in addressing community concerns. Staff anticipates that both ordinances would be presented to Council in late June or early July 2016, if not sooner.
Future Home Sharing Ordinance Background
As discussed at the February 23 workshop,staff also intends to prepare a separate, subsequent ordinance for Council consideration that would create a new type of STR permit allowing “home sharing” in residential neighborhoods. Under the home sharing model, a homeowner resides on the property and rents out a portion of his/her/their home. The Advisory Committee was generally in favor of allowing home sharing in single family neighborhoods as staff’s research confirmed this STR model typically generates few, if any, complaints in Anaheim and other communities. Staff will seek input from home sharing operators during ordinance preparation. The “home sharing” ordinance will be presented for Council consideration on Tuesday October 18, 2016.
Explore Possibility of Allowing Short Term Rentals in Mixed Zones
Staff also intends to explore the possibility of allowing STRs in the City’s mixed-use zones. Mixed-use zoned properties are generally located on major roadways within the Downtown and Platinum Triangle areas. Mixed use properties often contain a blend of commercial and multi-family residential uses and are not located immediately adjacent to single-family neighborhoods. Therefore, these properties may be suitable for STR use subject to the same operational and enforcement standards being developed during the moratorium.
February 23, 2016 City Council Workshop
On February 23rd, the City Council held a “Short-Term Rentals” (STRs) workshop. The workshop was the first step in the Council’s evaluation of new and more stringent regulations for short-term rental in Anaheim’s neighborhoods (beyond those contained in the City’s existing STR ordinance). At the workshop, staff presented its recommendations, including the recommendation to prepare an amendment to the existing STR ordinance to establish additional operational and enforcement criteria. The video of the workshop can be viewed by opening this link. Staff received direction to prepare two ordinances for City Council consideration.