A.   The use of single-family homes as short-term rentals (for a period of less than 30 consecutive days) has become increasingly more common in the decade preceding the adoption of this regulation. Negative impacts associated with this unregulated proliferation of short-term rentals include, but are not limited to increased traffic, noise and trash; parking impacts; loss of residential character, including vacancies in neighborhoods; reduction in long-term housing stock and opportunities for low and moderate income housing; a competitive disadvantage for legal short-term rental operators and hoteliers; and loss of transient occupancy taxes (TOT).

   B.   The purpose of this chapter is to establish a permitting process and appropriate standards to regulate the short-term rental of single family homes in the city in order to minimize the potential negative impacts of such rentals on neighborhoods; preserve the character of residential neighborhoods; minimize impacts to coastal resources; provide for the reasonable use of property; and ensure that short-term rentals are consistent with the general plan, zoning code, and other applicable sections of the municipal code.

   C.   This chapter addresses applicability, residency requirements, frequency, penalties, registration, maximum occupancy, good neighbor policy, on-site parking requirements, inspection requirements, and compliance with occupancy tax and assessment requirements. (Ord. O-2018-006 § 1 (part), 2018)

   For the purposes of this chapter, certain terms are hereby defined. The words "shall" and "will" are mandatory; the word "may" is discretionary.

   A.   "Bedroom" shall mean a room that is primarily used for sleeping. A bedroom shall be no less than seventy (70) square feet in size, with a minimum horizontal dimension of no less than seven (7) feet on any side. A bedroom offered for rent within a short-term rental or homestay shall meet all applicable California Building Code life safety requirements.

   B.   "Homestay" shall mean an owner-occupied, detached single-family residence where bedrooms are rented for compensation for less than thirty (30) consecutive days.

   E.    "Responsible party" shall mean a person, over the age of eighteen, who shall be legally responsible for compliance of all renters and visitors of the STR or homestay with all applicable provisions of the Pismo Beach municipal code. The responsible party shall sign the good neighbor policy and is designated as the point of contact for the short-term rental or homestay.

   The responsible party shall assure the maintenance of the licensed property in compliance with this and other applicable regulations, and shall be responsible for the conduct and acts of said renters and visitors to the extent provided herein. The responsible party's contact information shall be provided to all short-term renters and neighbors within three hundred (300) feet of the STR or homestay in the manner prescribed in Chapter 5.22.

   F.    "Short-term rental" or "STR" shall mean the rental of a detached single-family residence or accessory dwelling unit for less than thirty (30) consecutive days where the primary residence is not being concurrently occupied by the owner.

   G.   "Long-term rental" shall mean a rental for thirty (30) consecutive days or more. Any rental agreement that allows a sublet or sublease to multiple parties for any terms less than thirty (30) days, or early cancellation that allows multiple rentals within a thirty (30) day period shall be considered a short-term rental and subject to the terms of a short-term license as provided in this code. (Ord. O-2021-001 § 2, 2021: Ord. O-2019-004 § 8, 2019: Ord. O-2018-006 § 1 (part), 2018)

   This chapter shall be applicable only in the following zoning designations: single family residential (R-1), two and three-family residential (R-2), multi-family residential (R-3), planned residential (P-R), and open space-natural resources protection (O-S-1). STRs and homestays are prohibited in all other residential zones. To the extent that vacation rentals, or equivalent uses are permitted in the downtown core, as defined by planning area K of the general plan, or other non-residential zones, such rentals shall not be subject to this chapter. (Ord. O-2019-004 § 9, 2019: Ord. O-2018-006 § 1 (part), 2018)

   Each STR or homestay shall procure a short-term rental (STR) license from the City of Pismo Beach. The STR or homestay shall be registered by the property owner, not a property management company. The licensing process and other administrative provisions shall be established in Chapter 5.22. As part of the licensing process, property owners within three hundred (300) feet of the subject licensed property shall be notified about the intent to operate said property as an STR or homestay and shall be provided contact information for the property owner and responsible party. (Ord. O-2018-006 § 1 (part), 2018)

   Homestays shall be regulated in the same manner as short-term rentals with the exception of allowed frequency. For homestays, there is no limit to the number of rental days allowed per year, subject to the property owner being concurrently on-site during the homestay. (Ord. O-2018-006 § 1 (part), 2018)

   A.   STRs and homestays shall be permitted only at single-family properties that are the primary residence of the property owner. For purposes of short-term rental or homestay licensing, a property owner shall only have one primary residence at any time. Legally permitted accessory dwelling units occupied by the property owner may be deemed to be the property owner's primary residence.

   B.   The property owner shall be required to provide proof of primary residence on a yearly basis. The property owner(s) shall be required to be individual owner(s) or trustee(s), and not a corporation, limited liability company, partnership, or other business or commercial entity. (Ord. O- 2018-006 § 1 (part), 2018)

   A.   Initial inspection. Prior to issuance of an STR or homestay license, the city shall conduct an inspection of subject property to confirm bedroom count, on-site parking, and applicable safety standards. If complaints are received about STR or homestay operations, the city shall have the right to re-inspect the property. In the event such re-inspection requires access to the interior of a dwelling unit, the property owner shall provide the city access to the premises upon forty-eight (48) hours' advance notice.

   B.   Transmittal of rules and good neighbor policy. Prior to rental of an STR or homestay, the property owner and responsible party shall be provided with a good neighbor policy, consisting of a list of rules and responsibilities, in a form approved by the city manager. The property owner and responsible party shall initial each rule indicating that they have read the policy and sign an acknowledgment that in the event applicable municipal code sections and/or administrative rules are violated, renters and/or visitors and/or the property owner may be fined by the city. A good neighbor brochure, summarizing the good neighbor policy shall be placed or posted in a clearly visible location within the STR or homestay.

   C.   Maximum occupancy. Maximum overnight occupancy of an STR or homestay shall be limited to two people per bedroom, plus two additional people. For example, a two-bedroom STR may have up to and including six occupants overnight. This calculation shall be inclusive of children. Bedroom count shall be confirmed via inspection by the city prior to the issuance of an STR or homestay license.

   D.   Visitors. The number of visitors to an STR or homestay shall not exceed a number equal to the allowable occupancy of the STR or homestay at any time. For example, if the maximum overnight occupancy is 6, then no more than six additional visitors are allowed. Visitors are not allowed in the STR or homestay between 11:00 p.m. and 7:00 a.m. and shall not stay overnight on the premises.

   E.   Frequency. Consistent with the definition of primary residence, a qualifying STR property shall be limited to a maximum of 182 rental days per year (less than half the year) without the property owner concurrently on site. There shall be no limit to the number of rental days per year for homestays, during which the property owner is concurrently on site.

   F.   On-site parking. On-site parking shall be required for the operation of an STR or homestay.

   1.   Required parking is based on the number of bedrooms provided for rent, as follows:

      1 bedroom: Minimum of 1 on-site parking space

      2 bedrooms: Minimum of 2 on-site parking spaces

      3-4 bedrooms: Minimum of 3 on-site parking spaces

      5 or more bedrooms: Minimum of 4 on-site parking spaces

   2.   Required parking shall be provided in a garage or on a driveway. Tandem parking configurations shall be acceptable. Street parking shall not be counted toward required parking.

   G.   Noise. Renters and visitors of STR and homestay properties shall not generate noise to an extent that unreasonably interferes with the quiet use and enjoyment of any other residence or business in the area. Any noise occurring after 10:00 p.m. and before 7:00 a.m. shall be contained within the STR or homestay. What is reasonable in terms of noise generated shall be determined under existing legal standards applicable to evaluating alleged nuisances, including Chapter 9.24 any other city noise standards.

   H.   Trash. Trash and refuse shall not be left stored within public view, except in proper containers for the purposes of collection. There shall be no accumulation or storage of trash and/or debris on the site or within the STR or homestay.

   I.   Traffic. Vehicles used and traffic generated by the STR or homestay shall not exceed normal residential levels or unreasonably interfere with the quiet use and enjoyment of any other residences or businesses in the area. What is reasonable in terms of traffic generated shall be determined under existing legal standards applicable to evaluating alleged nuisances. (Ord. O-2018- 006 § 1 (part), 2018)

   The property owner shall be required to submit a business license application to the City of Pismo Beach identifying the property as a short-term rental/homestay. Once it is determined that the property is eligible to be licensed, the property owner shall apply for a transient occupancy tax/lodging business improvement district/tourism marketing district (TOT/LBID/TMD) certificate. This certificate shall require the property owner to collect and remit TOT/LBID/TMD payments to the city on a monthly basis, in full compliance with the city's TOT and LBID ordinances, including but not limited to Chapter 3.20 and Chapter 3.26, as well as the county's tourism marketing district assessment. (Ord. O-2018-006 § 1 (part), 2018)

   The City Manager, or designee, shall have the authority to establish administrative rules and regulations consistent with the provisions of this chapter for the purpose of interpreting, clarifying, carrying out, furthering, and enforcing the requirements and the provisions of this chapter. In particular, the city manager, or designee, will establish administrative procedures for complaints. A copy of such administrative rules and regulations shall be on file in the office of the city clerk and posted on the city's website. (Ord. O-2018-006 § 1 (part), 2018)

   A.   Penalty. It is unlawful to violate the provisions of this chapter. Violations of this chapter are punishable as misdemeanors, except as otherwise provided in Section 1.20.010. Violations of this chapter may alternatively be punished as administrative violations as provided in Chapter 1.24. Notwithstanding anything to the contrary in Section 1.24.080, the initial fine shall be, at a minimum, seven hundred and fifty dollars ($750) for an administrative violation of this chapter and shall be, at a minimum, one thousand dollars ($1,000) for each subsequent violation. Each separate day or rental night in which a violation exists may be considered a separate violation. Any attempt to rent an unlicensed residence as an STR or homestay by advertising said property for short-term rental purposes shall be deemed a violation of this chapter.

   B.   Revocation. If the property owner or responsible party is deemed by the city manager to be non-responsive to a complaint more than three (3) times in a twenty-four (24)-month period, or if more than three (3) significant violations, as defined below, occur in any twenty-four (24)-month period, or if the property owner or responsible party is cited three (3) or more times in a twenty-four (24) month period, the STR license may be revoked. Appeals shall be conducted pursuant to Section 1.24.110.

   C.   Significant violations. "Complaint" as used in this subsection means the need or requirement to contact the property owner or responsible party to rectify a situation that is disturbing to a neighbor or resident.

   As used in this subsection, a "significant violation" means a situation where the property owner or responsible party is either unable or unwilling to rectify the situation within thirty (30) minutes, and/or when public safety personnel must be called to assist in resolving the situation, and/or a situation that causes substantial disturbance to the neighbors or neighborhood.

   Examples of significant violations include, but are not limited to:

   1.   Failure of the property owner or responsible party to take action to respond to a complaint within thirty (30) minutes after the city contacts the property owner or responsible party.

   2.   The inability of city staff or the Pismo Beach police dispatch to reach the property owner or responsible party.

   3.   Violation of the STR or homestay maximum overnight occupancy, number of visitors, parking, noise, trash, or other requirements as set forth in this chapter.

   4.   Failure to notify city staff when responsible party or property owner contact information changes.

   5.   Failure to pay fees or make TOT/LBID/TMD payments in accordance with this chapter or Chapters 3.20 or 3.26.

   6.   Providing false or misleading information on an STR/homestay license application or other documentation as required by this chapter.

   7.   Violations of state, county, or city health regulations.

   The city manager, or designee, shall have the authority to determine what other violations of this chapter constitute a significant violation, as necessary, to achieve the objectives of this chapter. (Ord. O-2018-006 § 1 (part), 2018)

   Application and licensing fees associated with STRs and homestays shall be established from time to time by resolution of the city council. (Ord. O-2018-006 § 1 (part), 2018)