This chapter contains requirements for overlay zones that primarily apply to residential uses and residential areas. Overlay zones establish additional standards and regulations to specific areas, in addition to the requirements of the underlying base zoning district. (Ord. 1043 § 2 (Att. 2), 2020)

(Ord. 1066 § 2 (Att. 1), 2024; Ord. 1043 § 2 (Att. 2), 2020)

A. Purpose. The -VRU overlay zone identifies locations within residential areas where the short-term rental of dwelling units is permitted.

B. Applicability. Locations where the -VRU overlay zone applies is shown on the zoning map.

C. Land Use Regulations. Permitted uses in the -VRU overlay zone are the same as in the base zoning district, except that vacation rental uses are permitted with an administrative permit.

D. Required Permit. Each vacation rental unit is required to obtain a vacation rental permit, as an administrative permit, in addition to registering each unit with the city as a business. This includes obtaining a business license, renewable annually, and transient occupancy tax registration.

E. Development and Operations Standards.

1. Vacation rentals in Capitola are prohibited outside of the -VRU overlay zone.

2. Transient occupation registration is required for each vacation rental unit. A business license and transient occupancy tax registration must be obtained from the city. The business license shall be renewed annually.

3. Permit holders must submit monthly to the city a completed transient occupancy tax report and payment of all tax owing.

4. One parking space is required per vacation rental unit. Parking may be on site or within the Beach and Village Parking Lot 1 or 2 with proof of permit, if eligible. The on-site parking space must be maintained for exclusive use by guests during their stay.

5. The property owner must designate a person who has the authority to control the property and represent the owner. This responsible person must be available at all reasonable times to receive and act on complaints about the activities of the tenants.

6. A maximum of one sign per structure, not to exceed twelve inches by twelve inches in size, is permitted to advertise the vacation rental.

7. Each unit must post the vacation rental permit in a visible location within the unit. The vacation rental permit will include a permit number, the development and operations standards of this section (this subsection E), and space to write the contact information for the responsible party.

8. If the unit is advertised on the internet, the first line of the posting must include the vacation rental permit number for city reference.

9. No permit holder shall have a vested right to a renewed permit. If there is a history of the permit holder or tenants violating the permit’s conditions, the permit may be revoked consistent with Section 17.156.110 (Permit revocation). After a permit is revoked, the permit holder may reapply for a new permit one year after the revocation. The community development director may deny an application based on previous code enforcement issues. A decision by the community development director is appealable to the planning commission.

10. All vacation rental units shall have smoke detectors and carbon monoxide detectors.

11. Accessory dwelling units may not be used for vacation rentals.

F. Enforcement. It is prohibited for any person (including but not limited to property owners, property managers or real estate agents) to do any of the following without a vacation rental permit:

1. Rent, sublet, lease, sublease or otherwise for remuneration allow any person or persons to carry on a vacation rental use; or

2. To advertise for a vacation rental use; or

3. For compensation, to arrange, or help to arrange vacation rental uses. (Ord. 1043 § 2 (Att. 2), 2020)

A. Purpose. The purpose of the -VR overlay zone is to limit certain areas within the Village to exclusive residential use, including vacation rentals.

B. Land Use Regulations.

1. Residential Uses Only. Within the -VR overlay zone, only residential land uses (including vacation rentals) are permitted. Nonresidential land uses, including but not limited to restaurants, retail, offices, and personal services, are not permitted in the -VR overlay zone.

2. Existing Hotels and Motels. Alterations and modifications to existing hotels and motels shall occur in a manner consistent with Chapter 17.92 (Nonconforming Uses).

C. Development Standards. Development standards in the -VR overlay zone are the same as the mixed use village (MU-V) zoning district. (Ord. 1043 § 2 (Att. 2), 2020)