Item 21 - Approve Urgency Ordinance Regarding Short Term Rentals

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Urgency Ordinance No. NS-XXX Page 1 of 6 URGENCY ORDINANCE NO. NS-XXX AN URGENCY ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA ANA PURSUANT TO CHARTER SECTIONS 415 AND 417 ADDING ARTICLE XXI TO CHAPTER 8 OF THE SANTA ANA MUNICIPAL CODE PROHIBITING SHORT-TERM RENTALS WHEREAS, the proliferation of online vacation rental websites such as Airbnb.com and vrbo.com have encouraged and enabled City of Santa Ana (“City”) property owners, tenants, and occupants to rent their local, residential properties on a short-term rental (“STR”) basis to travelers or transients; and, WHEREAS, these short-term rentals, generally numbering less than 30 days, are often associated with excessive noise, parking problems, trash, and degradation of a neighborhood’s residential character; and, WHEREAS, the City has received numerous complaints from residents about the negative secondary effects of short-term rental uses in their residential neighborhoods; and, WHEREAS, Short-term rentals also remove housing stock that could otherwise be available for long-term rental or for sale. Data collected from various STR platforms reveals that there are more than 1,100 active STR units across Santa Ana. The City’s Regional Housing Needs Allocation (RHNA) for 2021-2029 is 3,137 permanent housing units. The 1,100 STRs represent about 35% of the City’s housing needs, diverting a significant portion of available housing away from permanent residents; and, WHEREAS, pursuant to Santa Ana Municipal Code (SAMC) Section 41-190(a), the Zoning Code (Chapter 41 of the SAMC) is a permissive ordinance, meaning that those uses expressly listed in the Zoning Code are permissible, and those not listed are prohibited. WHEREAS, at present, the SAMC does not list STRs as an approved use in any zoning district, making them prohibited and unauthorized under the current enforcement practice afforded by Section 41-190(a). WHEREAS, recent court rulings have brought into question the City’s ability to rely on the aforementioned section of the Zoning Code in specifically addressing STRs through the Code Enforcement process. WHEREAS, the Santa Ana Municipal Code (“SAMC”) does not expressly address short- term rentals in residential zoning districts. However, because short-term rentals are not expressly permitted in residential zoning districts under the SAMC, such transient uses are prohibited; and, WHEREAS, the City Council desires to amend the SAMC to expressly prohibit short- term rentals within the City, to reaffirm existing law, and to preserve the residential character of City neighborhoods and stem the negative, secondary effects caused by those uses; and,