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Long-Term Solutions to Short-Term Rentals <br /> F5: Proactive home inspections of new and renewing STRs, which have been implemented in <br /> some Orange County cities, improve code enforcement and STR compliance with city <br /> ordinances. <br /> F6: Direct remittance of taxes by OBAs does not capture all TOT for an STR because of direct <br /> booking practices. <br /> F7: Some cities in Orange County have outdated systems for tracking short-term rental TOT <br /> making the process less effective and more difficult for staff. <br /> F8: In some cases, STRs are improperly recharacterized as long-term rentals to circumvent the <br /> collection of TOT and any applicable penalties. <br /> F9: Online Booking Agencies in foreign languages are outside the current capabilities of Code <br /> Enforcement to monitor and track unpermitted STRs. <br /> F10: Cities that fail to routinely review their STR waiting lists potentially lose TOT revenue and <br /> contribute to a greater prevalence of unpei-mitted STRs. <br /> F11: Locations that have hosted major events have reported an outsized increase in demand and <br /> pricing of STRs, a situation Orange County is likely to experience with the upcoming 2026 Los <br /> Angeles World Cup and 2028 Los Angeles Olympics. <br /> F12: City leaders have no regular communication with each other concerning STR issues, <br /> limiting opportunities to develop strategies and expertise to improve service. <br /> RECOMMENDATIONS <br /> In accordance with California Penal Code Sections 933 and 933.05, the 2024-2025 Grand Jury <br /> requires (or, as indicated, requests)responses from each agency affected by the <br /> recommendations presented in this section. The responses are to be submitted to the Presiding <br /> Judge of the Superior Court. <br /> Based on its investigation described herein, the 2024-2025 Orange County Grand Jury makes the <br /> following nine recommendations: <br /> Rl: Cities should review and begin to update ordinances to keep up with the rapidly changing <br /> nature of court findings and legislation related to STRs, by December 31, 2025, and no less <br /> frequently than every three years thereafter. (F4, F12) <br /> R2: Cities should consider developing a plan for upcoming major events that are expected to <br /> create a surge in demand for STRs and its associated Transient Occupancy Tax, by December <br /> 31, 2025, and no less frequently than every two years thereafter. (Fll) <br /> 2024-2025 Orange County Grand Jury Page 16 <br />