Item 21 - Approve Urgency Ordinance Regarding Short Term Rentals

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Short-Term Rentals Ordinances April 2, 2024 Page 2 4 1 6 5 GOVERNMENT CODE §84308 APPLIES: No DISCUSSION The proliferation of online vacation rental websites such as Airbnb.com and vrbo.com have encouraged and enabled property owners, tenants, and occupants to rent their local, residential properties on a short-term basis to travelers or transients. These STRs, generally numbering less than 30 days, are often associated with excessive noise, parking problems, trash, and degradation of a neighborhood’s residential character. Data collected from various STR platforms reveals that there are more than 1,100 active STR units across Santa Ana. Areas like Downtown and its nearby neighborhoods, along with the Hutton Center area, have a higher concentration of these rentals. To put this in perspective, the City's Regional Housing Needs Allocation (RHNA) for 2021-2029 is 3,137 permanent housing units. The 1,100 short-term rental units represent about 35% of the City's housing needs, diverting a significant portion of available housing away from permanent residents. As a result of the reduction in available housing for permanent residents, the negative secondary effects including, but not limited to, excessive noise, parking problems, and trash, the urgency ordinance is necessary as an emergency measure to preserve the public peace, health, safety, and welfare. The adoption of the urgency ordinance will require two-thirds (2/3) approval by the City Council. Presently, there are 112 confirmed active cases of STRs that have received enforcement notices and citations. Among these cases, 36 involve owners residing at the same address, while 84 involve properties owned by an LLC, managed by a property management company, or owned by absentee owners. Enforcement efforts in the City have primarily relied on complaints and proactive notifications to major STR platforms. STRs are not, and have never been, a permitted use under the City’s zoning code. Therefore, STRs have always been prohibited by the City and this urgency ordinance and first reading of an ordinance are reaffirming existing law. However, in response to recent legal developments, this urgency ordinance and first reading of ordinance seek to amend the Santa Ana Municipal Code (SAMC) to expressly prohibit short-term rentals in alignment with the City’s current practice. FISCAL IMPACT There is no fiscal impact associated with the proposed action. ENVIRONMENTAL IMPACT The proposed ordinances are not subject to the requirements of the California Environmental Quality Act, pursuant to Guidelines Section 15060(c)(2) because the activity will not result in a direct or reasonably foreseeable indirect physical change in the