Laguna Beach City Zoning Code
CHAPTER 25
23 SHORT-TERM LODGING
§ 25.23.010 Purpose and findings.
The City Council of the City of Laguna Beach finds and declares as follows:
(A)
Visitors, who rent short-term lodging units, can escalate the demand for City services and create adverse impacts in zoning districts that allow residential uses.
(B)
Short-term lodging units are considered a commercial use, which are not permitted in residentially-zoned properties.
(C)
Short-term lodging units can be associated with the depletion of the City's limited supply of multiple-family residential units.
(D)
Incidents involving excessive noise, disorderly conduct, vandalism, overcrowding, traffic congestion, illegal vehicle parking and accumulation of refuse can be associated with short-term lodging units, which require response from police, fire, paramedic and other City services and can escalate the demand for such services.
(E)
Agents and/or absentee owners operate many short-term lodgings.
(F)
The restrictions of this Chapter are necessary to prevent the burden on City services and adverse impacts on residential neighborhoods posed by short-term lodgings and to preserve the City's existing rental housing stock consistent with the adopted General Plan.
(Ord. 1353 § 1, 1999; Ord. 1651 § 5, 2020)
§ 25.23.020 Definitions.
For the purpose of this Chapter, the following definitions shall apply:
means any reservation or payment service provided by a person who facilitates a short-term rental transaction between a prospective transient user and an owner or operator.
means the zones of the City designated by this Title.
means a document prepared by the City that summarizes the general rules of conduct, consideration, and respect including but not limited to the provisions of the City of Laguna Beach Municipal Code and other applicable laws, rules or regulations pertaining to the use and occupancy of the short-term lodging units.
means the simultaneous exchange of homes by one owner with another owner in a different city for short periods of time, for not less than one week and not more than two times in total per calendar year, by written agreement between both parties to exchange homes without any exchange of compensation or other consideration.
is a form of short-term lodging subject to the provisions of this Chapter and means a rental in a residential unit for 30 consecutive days or less during which the host lives on-site for the entirety of the visitor's stay and the visitor enjoys the non-exclusive shared use of the host's home in exchange for compensation, including any type of in-kind trade or exchange agreement between the property owner or designated resident host and the boarder, lodger or visitor.
means a person who participates in the short-term lodging rental business by collecting or receiving a fee, directly or indirectly through an agent or intermediary, for conducting a booking transaction using any medium of facilitation.
means a gathering of persons for social occasion that results in a public nuisance or threat to the public health, safety or general welfare or quiet enjoyment of residential property or nearby public property.
means the person designated by the owner or the owner's authorized agent or representative who shall be available twenty-four hours per day, seven days per week for the purpose of: (1) responding within sixty minutes to complaints regarding the condition, operation, or conduct of occupants of the short-term lodging unit; and (2) taking remedial action to resolve any such complaints.
means the same as a "dwelling unit," which is a room or suite of rooms with a single kitchen used for the residential use and occupancy of one family, including a single-family residence, an apartment or other leased premises, a residential condominium unit or any other residential real estate improvement that is located in a zoning district within which short-term lodging is allowed pursuant to this chapter and which is rented to person(s) other than the owner. "Lodging unit" does not include individual guest rooms in a hotel, motel or similar transient lodging establishment operated by an innkeeper, as defined in subdivision (a) of Section 1865 of the California Civil Code.
means the owner or the designated agent or representative of the owner who is responsible for compliance with this chapter with respect to the short-term rental unit.
means the person(s) or entity(ies) that hold(s) legal and/or equitable title to the lodging unit.
means any natural person, joint venture, joint stock company, partnership, association, club, company, corporation, business trust, or organization of any kind.
means an occupant of a short-term lodging unit who is at least 21 years of age and who is legally responsible for ensuring that all occupants and/or guests of the short-term rental unit comply with all applicable laws, rules and regulations pertaining to the use and occupancy of the subject short-term rental unit.
means compensation, money, rent, or other bargained for consideration given in return for occupancy, possession, or use of real property.
means occupancy of a lodging unit for a period of thirty consecutive calendar days or less. "Short-term" shall include the rental of a lodging unit for a period of more than thirty consecutive days to an entity, person or group of persons and said entity, person or group of persons sublets or otherwise makes available the unit to another entity, person or group of persons whereby separate occupancy durations are established for the other entity, person or group of persons for a period of thirty calendar days or less.
(Ord. 1353 § 1, 1999; Ord. 1651 § 5, 2020)
§ 25.23.030 Permit required.
(A)
Short-term lodging units shall only be allowed within the LB/P, C-N, C-1 and CH-M Zoning Districts, and within the CBD-1, CBD-2, CBD Central Bluffs, CBD Office and CBD Visitor Commercial Districts of the Downtown Specific Plan, subject to the approval of an Administrative Use Permit as provided for in Section 25.05.020 of this title and SLV zoning district subject to approval of a Conditional Use Permit as provided in Section 25.05.030. No owner of a dwelling unit or units located outside of those zoning districts shall rent that unit or units for a short term (30 consecutive days or less).
(B)
To protect the long-term rental housing stock, no more than 20% of the total number of allowable rental units located in the permitted zoning districts may be converted to short-term lodgings, with a maximum number of 300 total short-term lodgings (not including home share units) allowed city-wide, including those short-term lodgings units approved prior to October 2020. To promote home share units as another type of short-term lodging, an additional 165 home share units may be authorized in single-family, duplex, and triplex dwellings located in the permitted zoning districts. The Use Permit fees are waived for home share units.
(C)
To avoid wholesale conversion of existing and new housing complexes into short-term lodgings, properties with five or fewer units may only convert a maximum of one unit into a short-term lodging. Properties with more than five units may only convert a maximum of 20% of the total number of units into short-term lodgings (rounded down to the nearest whole number).
(D)
No owner or tenant of a lodging unit that is restricted by covenant or similar instrument for the purpose of providing affordable housing, senior housing, or housing for the disabled shall rent such unit for the purpose of providing short-term lodging.
(E)
A home exchange as defined in Section 25.23.020(D) shall not constitute short-term lodging for the purposes of this Chapter.
(F)
Existing residential units that are currently non-conforming to any density or development standard within the underlying zoning district of the subject property shall be permitted to convert to short-term lodging subject to the approval of an Administrative Use Permit or Conditional Use Permit.
(G)
The following information shall be included with the completed application form:
(1)
The name, address and telephone number of the owner of the subject short-term lodging unit;
(2)
The name, address and telephone number of the operator;
(3)
The name, address and telephone number (available 24/7) of the local contact person that will be available to physically be able, if necessary, to respond within 60 minutes of notification of a problem resulting from the short-term lodging unit;
(4)
The address of the proposed short-term lodging unit;
(5)
The days of the week, weeks of the month and/or months of the year that the proposed short-term lodging unit will be available for rent on a short-term basis, and the minimum length of stay that the short-term rental will be advertised;
(6)
The number of bedrooms and the applicable overnight and daytime occupancy of the proposed short-term lodging unit;
(7)
The number of parking spaces located on site;
(8)
A site plan and floor plan, drawn to scale depicting the site layout, trash storage area that must be concealed from public view, parking area and a floor plan of the entire unit/rooms to be rented for short-term lodging purposes;
(9)
Acknowledgement of receipt and inspection of the Good Neighbor brochure;
(10)
Evidence that the residence/premises passed a safety inspection conducted by the Laguna Beach Fire Department;
(11)
Evidence that the use of the property is eligible for liability insurance (homeowners or rental property insurance) in the amount of not less than $500,000.00 to cover injuries, damages, losses and other claims associated with the short-term lodging;
(12)
An estimate of the daily rental fee that will be charged for occupancy of the unit(s);
(13)
An application fee established by resolution of the City Council, except for Use Permit applications for home share units. The Use Permit fees are waived for home shared units;
(14)
One set of public notification materials prepared by a qualified and independent vendor as instructed more fully in the "City of Laguna Beach Community Development Department Public Notice Package Requirements."
(Ord. 1353 § 1, 1999; Ord. 1651 § 5, 2020)
§ 25.23.040 Conditions.
All Administrative Use Permits or Conditional Use Permits (if located in the SLV Zoning District) issued pursuant to this Chapter shall be subject to the following standard conditions. As a result of issues identified during the Administrative Use Permit or Conditional Use Permit review process, other conditions may be imposed to ensure that the proposed use does not adversely affect the health, safety and general welfare of the occupants of adjacent property and the neighborhood. Failure to comply with any of the imposed conditions may be grounds for possible revocation of the Administrative Use Permit or Conditional Use Permit for short-term lodging as provided for in Section 25.05.075.
(A)
Overnight occupancy of short-term lodging unit(s) shall be limited to a maximum of two persons per bedroom. Additional daytime guests are allowed between the hours of 7:00 a.m. and 10:00 p.m. with the maximum daytime guests not to exceed two persons per bedroom with a maximum of 20 guests allowed for five bedrooms or more. The following table illustrates the maximum number of occupants:
Number of Bedrooms | Total Overnight Occupants | Total Daytime Occupants (Including Number of Overnight Occupants) |
|---|---|---|
0-Studio | 2 | 4 |
1 | 2 | 4 |
2 | 4 | 8 |
3 | 6 | 12 |
4 | 8 | 16 |
5 | 10 | 20 |
6 | 12 | 20 |
7 | 14 | 20 |
(B)
Each newly constructed short-term lodging unit must provide the minimum off-street parking spaces per the applicable use of "Dwelling, single-family or two-family", or "Dwelling, multi-family" as set forth in Section 25.52.012(G). Existing residential units that are proposed to be converted to short-term lodging units and are currently non-conforming in regard to the number of required off-street parking spaces shall be permitted to convert to short-term lodging provided the same number of non-conforming off-street parking spaces continues to be provided. Existing residential units that are proposed to be converted to short-term lodging units but currently have no existing off-street parking shall be considered non-conforming and may be converted to short-term lodging units without providing additional parking. The maximum number of vehicles permitted to park at the short-term lodging unit is limited to the number of on-site parking spaces provided for the short-term lodging unit. No vehicles of overnight or daytime occupants shall be parked on a street serving residential homes.
(C)
Occupants and/or guests of short-term lodging unit(s) shall not create unreasonable noise or disturbances and shall comply with the standards and regulations of the Laguna Beach Noise Ordinance, shall not engage in disorderly conduct or violate provisions of the Laguna Beach Municipal Code or any State law pertaining to noise, collection and disposal of refuse, disorderly conduct, the consumption of alcohol or the use of illegal drugs.
(D)
No radio receiver, musical instrument, phonograph, compact disk player, loudspeaker, karaoke machine, sound amplifier or any machine, device or equipment that produces or reproduces any sound shall be played outside of any short-term lodging unit or be audible from the usable area of any adjacent residences between the hours of 10:00 p.m. and 10:00 a.m.
(E)
While the short-term lodging unit is rented, the operator shall designate a local contact person that will be available twenty-four hours per day, seven days per week for the purpose of responding within 60 minutes to any issues received from either the neighbors of the short-term lodging unit or the responsible person renting the short-term lodging unit.
(F)
The operator shall provide the City with the name, address and telephone number of the local contact person. If the local contact person changes or the contact information changes, the operator shall notify the City of the information of the new local contact person within 24 hours.
(G)
Trash and refuse shall not be stored within public view, except in proper containers for the purpose of collection by the City's authorized waste hauler on scheduled trash collection days. The containers shall be placed out for collection by seven a.m. and taken in by six p.m. to minimize interference with public rights-of-way on the scheduled trash collection days. The operator shall use reasonable prudent business practices to ensure compliance with all of the provisions of Chapter 7.16 (Solid Waste Collection and Disposal) of the Laguna Beach Municipal Code and must provide an appropriate number of and type of receptacles.
(H)
Onsite advertising signs for the purpose of leasing the short-term lodging unit as a vacation rental are prohibited.
(I)
All advertising (print, online, etc.) must include the City business license and Administrative Use Permit or Conditional Use Permit numbers.
(J)
Commercial activities and events such as weddings, receptions and/or large parties are prohibited.
(K)
Three or more confirmed violations of large or unruly gatherings, as defined in this chapter, will result in an automatic hearing for revocation of the Administrative Use Permit or Conditional Use Permit.
(L)
Each approved short-term lodging unit shall display a valid Administrative Use Permit or Conditional Use Permit Resolution in a visible location near the main entrance within the rental unit and the conditions of the permit shall be posted on the exterior of the rental unit, or property if the unit is set back from the street, in plain view of the public. The permit and conditions shall be on 8.5 x 11 inch paper, protected in plastic, with the print no smaller than a 12 font size.
(M)
A valid business license issued by the City for the separate business of operating short-term lodging unit(s) shall be obtained prior to renting short-term lodging.
(N)
A valid Transient Occupancy Registration Certificate issued by the City for the lodging unit(s) per Chapter 5.05 (Hotel-Motel Room Tax) shall be obtained prior to renting short-term lodging, and the transient occupancy tax shall be paid as required by that chapter. Every Administrative Use Permit or Conditional Use Permit holder for short-term lodging must submit a quarterly return, whether or not the short-term lodging unit was rented during the quarter and/or Transient Occupancy Tax was collected.
(O)
Each owner and/or operator of any short-term lodging unit shall keep and provide any records related to the use and occupancy (dates of stay, rent paid, etc.) of the short-term lodging unit to the Director of Finance or his/her designee, at the time that quarterly Transient Occupancy Tax payments are remitted to the City.
(P)
The property owner must maintain liability insurance (homeowners or rental property insurance) in the amount of not less than $500,000.00 to cover injuries, damages, losses and other claims associated with the short-term lodging.
(Q)
Notwithstanding any provision of this title to the contrary, and unless otherwise specifically authorized by an Administrative Use Permit or Conditional Use Permit approved pursuant to this chapter, an Administrative Use Permit or Conditional Use Permit for short-term lodging is valid for a maximum of three (3) years from the date of approval of the permit, at which time the permit shall expire and be of no further force and effect unless renewed pursuant to this section.
(R)
Upon a change in ownership of a short-term lodging unit, or a change of the agent/operator or any material facts set forth in the application for a short-term lodging unit, including an application for renewal of the Administrative Use Permit or Conditional Use Permit as described herein, a new Administrative Use Permit or Conditional Use Permit shall be required to continue operation of the short-term rental property, which the owner shall submit to the City within fourteen days of said change.
(S)
An approved Administrative Use Permit or Conditional Use Permit for short-term lodging shall be subject to review if written complaints are received. These reviews may result in a noticed public hearing before the Planning Commission. Following the public hearing on the matter, the Planning Commission may require immediate compliance with conditions of approval, amendment of the conditions of approval or the commencement of proceedings to revoke the Administrative Use Permit or Conditional Use Permit as provided in Section 25.05.075.
(Ord. 1353 § 1, 1999; Ord. 1651 § 5, 2020)
§ 25.23.050 Permit does not run with the land.
(A)
Notwithstanding any provision of this Title to the contrary and unless expressly provided otherwise by this chapter, an administrative use permit or conditional use permit approved pursuant to this chapter shall not run with the land. The permission to operate short-term lodging shall be personal and limited to the owner of the property to whom the administrative use permit or conditional use permit is issued.
(B)
No person shall convey or transfer or attempt to convey or transfer an administrative use permit or conditional use permit for short-term lodging to any other person. Any conveyance or transfer, or attempt to convey or transfer, an administrative use permit in violation of this section shall be void and shall constitute a violation of this code.
(C)
No person shall convey or transfer or attempt to convey or transfer an administrative use permit or conditional use permit for short-term lodging from one property to another property. Any conveyance or transfer, or attempt to convey or transfer, an administrative use permit in violation of this section shall be void and shall constitute a violation of this code.
(Ord. 1651 § 5, 2020)
§ 25.23.060 Continuation of legal short-term lodging units in residential zones.
(A)
The operation of any legal short-term lodging unit permitted prior to October 2020 and located within the R-1, R-2, R-3 or VC zoning districts may continue as a legal nonconforming use subject to (1) the requirements set forth below, (2) continuously maintaining a business license for the short-term lodging unit, (3) fully and timely complying with applicable requirements for record-keeping and the collection and remittance of transient occupancy taxes, and (4) complying with all other conditions of the previously approved permit. No new short-term lodging may be established within the R-1, R-2, R-3 or VC zoning districts.
(B)
The right to continue the operation of a preexisting legal short-term lodging unit pursuant to the provision of subsection (A) shall run with the land.
(C)
The right to continue the operation of a preexisting legal short-term lodging unit under this section shall lapse in the event that the use of the unit for short-term lodging is abandoned or ceases for a period of twelve or more consecutive months.
(Ord. 1353 § 1, 1999; Ord. 1651 § 5, 2020)
§ 25.23.065 Continuation of legal short-term lodging units in commercial zones.
(A)
The operation of any legal short-term lodging unit permitted prior to October 2020 and located within the LB/P, C-N, C-1 or CH-M zoning districts or within the CBD-1, CBD-2, CBD Central Bluffs, CBD Office or CBD Commercial districts of the Downtown Specific Plan may continue as a legal conforming use subject to (1) the requirements set forth below, (2) continuously maintaining a business license for the short-term lodging unit, (3) fully and timely complying with applicable requirements for record-keeping and the collection and remittance of transient occupancy taxes, and (4) complying with all other conditions of the previously approved permit. The establishment of new short-term lodging units within those zoning districts shall conform to the provisions of this chapter.
(B)
The right to continue the operation of a preexisting legal short-term lodging unit pursuant to the provisions of subsection (A) shall run with the land.
(C)
The right to continue the operation of a preexisting legal short-term lodging unit under this section shall lapse in the event that the use of the unit for short-term lodging is abandoned or ceases for a period of twelve or more consecutive months, and the unit shall not thereafter be reestablished except as provided by this chapter.
(Ord. 1353 § 1, 1999; Ord. 1651 § 5, 2020)
§ 25.23.070 Responsibilities of short-term lodging hosting platforms.
(A)
Hosting platforms shall be responsible for collecting all applicable transient occupancy taxes and remitting the same to the City. The hosting platform shall be considered an agent of the host for purposes of transient occupancy tax collections and remittance responsibilities.
(B)
Subject to applicable laws, hosting platforms shall disclose to the City on a regular basis each short-term lodging rental listing located in the City, the names of the persons responsible for each such listing, the address of each such listing, the length of stay for each such listing, and the price paid for each stay.
(C)
Hosting platforms shall not complete any booking transaction for any short-term rental unless it is listed on the City's registry of approved short-term lodging units at the time the hosting platform receives a fee for the booking transaction.
(Ord. 1651 § 5, 2020)
§ 25.23.080 Violations.
(A)
Additional conditions. In the event a violation of any provision of this chapter by any occupant, owner, hosting platform or operator of a short-term lodging unit, the Director of Community Development or his or her designee may impose additional conditions on the use of the subject short-term lodging unit to ensure that future such violations are avoided. If a second violation occurs, then the Director of Community Development may proceed with the commencement of revocation procedures provided in Section 25.05.075.
(B)
Administrative use permit modification, suspension and revocation. A violation of any provision of this chapter by any occupant, owner, hosting platform or operator of a short-term lodging unit shall constitute grounds for modification, suspension or revocation of the subject short-term lodging unit administrative use permit or conditional use permit pursuant to Section 25.05.075 of this code.
(C)
Administrative citation. In addition or as an alternative to any other remedy provided by state law or this code, the City may issue an administrative citation to the owner, hosting platform or operator pursuant to chapter 1.15 of this code if there is any violation of this chapter committed, caused or maintained by such person for each day of such violation. In such case, the City shall issue said citation for the first and any additional violations in the amount of $1,000 per violation.
(D)
Any person, including without limitation owners, hosting platforms or operators, violating any of the provisions of this chapter shall be guilty of a misdemeanor. Each day that such a violation occurs shall constitute a separate offense.
(E)
Public nuisance. It shall be a public nuisance for any person to commit, cause or maintain a violation of this chapter.
(F)
If a permit to operate a short-term lodging unit is revoked, then the owner of the subject property to whom the permit issued must wait a minimum of three (3) years before applying for a new permit to operate short-term lodging.
(G)
It shall be a violation of this chapter if any person, including without limitation, owners, hosting platforms or operators, advertises a short-term rental without an approved permit to operate short-term lodging.
(Ord. 1651 § 5, 2020)
§ 25.23.090 Reporting to the California Coastal Commission.
(A)
Three years after the date of certification of this LCP amendment No. LCP-5-LGB-19-0074-1 or three years after October 2020, whichever occurs first, the City shall provide the California Coastal Commission with a report to include the following:
(1)
An update on new housing and hotel units added within the City including lower and higher cost hotels and affordable and higher cost housing;
(2)
Total number of dwelling units in the permitted districts as well as the total number of short-term lodging permits that have been issued;
(3)
Identification of the housing types and locations of the short-term lodging permits issued, including home share units.
(B)
If the report identifies evidence that short-term lodging is contributing to a loss of lower cost hotel room stock or affordable housing stock, the City shall submit an amendment to the short-term lodging ordinance and/or other provisions of the Local Coastal Program to address the identified trend.
(Ord. 1651 § 5, 2020)