Item 10 - Receive and File - Orange County Grand Jury’s Investigative Report, Findings, and Recommendations Regarding Long-Term Solutions to Short-Term Rentals

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Long-Term Solutions to Short-Term Rentals short-term housing, which includes STRs. It is therefore unrealistic to expect that coastal STRs would be converted to long-term affordable housing in any sizeable number. Table 4: STR permit limits and affordable housing needed (Housing Element) Housing Element 6th Series Unit Goals Limit on Very Low Low VLI+LI Unit STR Permits Income Income Goal Inland Cities (VLI) (LI) Anaheim 277 3,767 2,397 6,164 Buena Park 11 2,119 1,343 3,462 Fullerton 100 3,198 1,989 5,187 Orange 125 1,067 604 1,671 Coastal Cities* Dana Point 115 147 84 231 Laguna Beach 300 118 80 198 Newport Beach 1,550 1,456 930 2,386 San Clemente 225 282 164 446 Seal Beach 33 258 201 459 *Subject to CCC legal requirements Equally important is the fact that there is rarely a one-to-one relationship between STRs and long-term housing. In many areas of the County, STRs are luxury or large-scale homes. It is extremely unlikely that such homes could or would be easily converted into affordable housing or demolished to create multiple affordable dwellings. Aside from the complications of such an endeavor, the likelihood that neighbors would acquiesce to these changes is negligible. Based on the above factors, the Grand Jury concludes that, contrary to widely held belief, STRs should not be considered a significant factor in the availability of affordable housing in Orange County cities with STRs. STRs Can be Good Neighbors The burden of getting STR operators to function in a community friendly way should be on the operator and government, not the neighborhood residents. Best practices include the following: • Updated ordinances that limit how STRs can advertise and specifically exclude STRs from banned cities • Concise city permitting guidance 2024-2025 Orange County Grand Jury Page 14