Chapter 4.38
SHORT-TERM RENTALS

Sections:

4.38.010    Definitions.

4.38.020    Requirement for short-term rental license.

4.38.030    Application procedure.

4.38.040    Issuance and renewal of license.

4.38.050    Display of license.

4.38.060    License fee.

4.38.070    License nontransferable.

4.38.080    Operating standards and conditions.

4.38.090    Suspension or revocation of license.

4.38.100    Denial, suspension, and revocation – Appeals.

4.38.110    Enforcement.

4.38.010 Definitions.

As used in this chapter, the following words and phrases shall have the meanings given them in this section, unless the context clearly requires otherwise:

A. “Bed and breakfast inn” has the same meaning as defined in EGMC Chapter 23.26.

B. “City Manager” means the City Manager of the City of Elk Grove or his or her designees.

C. “Guest” means the person renting the short-term rental through any website facilitating short-term rentals via the internet, or the person directly negotiating lodging with the licensee and any individuals accompanying the guest.

D. “Licensee” means any owner holding a license issued by the City pursuant to this chapter.

E. “Long-term rental” has the same meaning as defined in EGMC Chapter 23.26.

F. “Person” means any individual, firm, partnership, joint venture, limited liability company, association, social club, fraternal organization, corporation, estate, trust, business trust, receiver, trustee, syndicate, or any other group or combination acting as a unit.

G. “Owner” means a person and/or applicant with an ownership or possessory interest in real property within the City for which a license is issued under this chapter.

H. “Short-term rental” has the same meaning as defined in EGMC Chapter 23.26.

I. “Short-term rental license” means a short-term rental special business license issued by the City pursuant to this chapter. [Ord. 13-2020 §2, eff. 8-21-2020]

4.38.020 Requirement for short-term rental license.

A. It shall be unlawful for any person to operate a short-term rental within the City without a previously issued and effective short-term rental license for each separate address at which a short-term rental would occur. A short-term rental license may only be issued for a residential structure at a fixed location and address.

B. Nothing in this chapter shall be construed to grant any person obtaining a short-term rental license any status or right other than the right to operate a short-term rental at the location in the City identified on the face of the short-term rental license, all subject to compliance with all other applicable laws, regulations, and ordinances. Nothing in this chapter shall be construed to render inapplicable, supersede, or apply in lieu of any other provision of applicable law. [Ord. 13-2020 §2, eff. 8-21-2020]

4.38.030 Application procedure.

All applications for a short-term rental license shall be submitted to the City Manager in the name of each owner proposing to operate a short-term rental and shall be signed by each owner or an authorized agent thereof. An owner proposing to operate a short-term rental at more than one (1) location shall submit a separate application for each location. Each application shall be submitted on a form supplied by the City Manager and shall contain, at a minimum, the following information:

A. The name, address, email address, if any, and telephone number of each owner.

B. Any business name, address, and telephone number of the fixed location for which a short-term rental license is sought.

C. Whether or not any owner has previously been issued a short-term rental license pursuant to this chapter that is, or was at any time, suspended or revoked and, if so, the dates of the suspension period or the date of revocation.

D. Such other information as the City Manager deems necessary for the administration or enforcement of this chapter. [Ord. 13-2020 §2, eff. 8-21-2020]

4.38.040 Issuance and renewal of license.

A. Upon the receipt of an application for a short-term rental license and the applicable license fee, the City Manager may issue a short-term rental license or its renewal unless:

1. The application is incomplete or inaccurate;

2. The application seeks authorization for short-term rental operation at an address that appears on a short-term rental license that is suspended, has been revoked, or is subject to suspension or revocation proceedings for violation of any of the provisions of this chapter, except this subsection shall not constitute a basis for denial of a short-term rental license if either or both of the following apply:

a. The applicant provides the City with documentation demonstrating that the applicant has acquired or is acquiring the premises or business in an arm’s length transaction. For the purposes of this subsection, an “arm’s length transaction” is defined as a sale in good faith and for valuable consideration that reflects the fair market value in the open market between two (2) informed and willing parties, neither under any compulsion to participate in the transaction. A sale between relatives, related companies or partners, or a sale for the primary purpose of avoiding the effect of the violations of this chapter that occurred at the location is presumed not to be an “arm’s length transaction”;

b. It has been more than five (5) years since the most recent short-term rental license for that location was revoked; or

3. The City Manager has information that the applicant or his or her agents or employees has violated any local, State or Federal law for which the short-term rental license or renewal of the short-term rental license is sought within the preceding one (1) year period.

B. Unless revoked on an earlier date, all short-term rental licenses shall expire three (3) years after the date of issuance. Licensees are responsible for submitting a short-term rental license renewal application with the license fee at least thirty (30) days, but not more than sixty (60) days, prior to the expiration of the current valid short-term rental license. The application submitted for renewal shall be in such form and include such information as is prescribed and required by the City Manager but shall include a renewal form provided by the City, the required fee, and a copy of the short-term rental license to be renewed. A short-term rental license that is suspended, has been revoked, or is subject to suspension or revocation proceedings, shall not be renewed. The renewal applicant shall follow all of the procedures and provide all of the information required in EGMC Section 4.38.030. The City Manager shall process the application according to the provisions of this section.

C. Where the City Manager does not approve a short-term rental license or renewal of a short-term rental license, the City Manager will notify the applicant of the specific grounds for the denial in writing. The notice of denial will be served personally or by first class certified mail, return receipt requested, not later than ten (10) days after the date of the denial. If by mail, the notice will be placed in a sealed envelope, with postage paid, addressed to the applicant at the address as it appears on the application. The giving of notice shall be deemed complete at the time of deposit of the notice in the mail without extension of time for any reason. In lieu of mailing, the notice may be served personally by delivering to the person to be served and service shall be deemed complete at the time of such delivery. Personal service to a corporation may be made by delivery of the notice to any person designated in the Code of Civil Procedure to be served for the corporation with summons and complaint in a civil action. [Ord. 13-2020 §2, eff. 8-21-2020]

4.38.050 Display of license.

Each short-term rental license, or copy thereof, shall be prominently displayed in a publicly visible location at the licensed property. [Ord. 13-2020 §2, eff. 8-21-2020]

4.38.060 License fee.

The fee for issuance and renewal of a short-term rental license shall be established by resolution of the City Council and shall be in addition to the fees associated with any other license, permit and/or entitlement fee imposed by this code upon the applicant. The short-term rental license fee shall be paid to the City at the time the short-term rental license application is submitted. [Ord. 13-2020 §2, eff. 8-21-2020]

4.38.070 License nontransferable.

A short-term rental license is nontransferable. If a property at which a short-term rental license was issued to operate a short-term rental is sold or transferred to any other person, the new owner must obtain a new short-term rental license, pursuant to EGMC Section 4.38.030, if the new owner chooses to operate a short-term rental at that property location. [Ord. 13-2020 §2, eff. 8-21-2020]

4.38.080 Operating standards and conditions.

A violation of any of the following conditions shall subject a licensee to enforcement action against the licensee, up to and including revocation:

A. Licensee and/or any guest of the licensee shall comply with all applicable local, State, or Federal laws;

B. Rental stays shall be a minimum of two (2) nights, but not more than thirty (30) days;

C. Rental of individual rooms to separate guests at a single short-term rental property shall be prohibited;

D. Open-invitation parties are prohibited during any and all short-term rental stays;

E. Licensee shall be responsible for ensuring payment of transient occupancy tax (TOT) for all short-term rental activity as required by EGMC Chapter 3.08. [Ord. 13-2020 §2, eff. 8-21-2020]

4.38.090 Suspension or revocation of license.

A. In addition to any other remedy authorized by law, a short-term rental license may be suspended or revoked as provided in this section if the City Manager finds that the licensee or the licensee’s guest(s) have violated any of the conditions or provisions of the short-term rental license or this chapter; provided, however, that violations by a licensee at one (1) location may not be accumulated against other locations of that same licensee, nor may violations accumulated against a prior licensee at a licensed location be accumulated against a new licensee at the same licensed location.

1. Upon a finding by the City Manager of a first (1st) short-term rental license violation within any one (1) year period, the licensee shall be subject to enforcement action pursuant to EGMC Section 4.38.110, including, without limitation, imposition of a fine, penalty, and/or costs, and abatement of the violation.

2. Upon a finding by the City Manager of a second (2nd) short-term rental license violation within any one (1) year period, the short-term rental license shall be suspended for one hundred and eighty (180) days.

3. Upon a finding by the City Manager of a third (3rd) short-term rental license violation within any one (1) year period, the short-term rental license shall be revoked.

B. Notwithstanding subsection (A) of this section, or any other provision of this chapter, a short-term rental license may be revoked if the City Manager finds that either one (1) or both of the following conditions exists:

1. One (1) or more of the bases for denial of a short-term rental license under EGMC Section 4.38.040(A) existed at the time application was made or at any time before the short-term rental license was issued.

2. The information contained in the short-term rental license application, including supplemental information, if any, is found to be false in any material respect.

C. Notwithstanding subsections (A) and (B) of this section, or any other provision of this chapter, the City Manager may immediately revoke a short-term rental license, without imposition of a prior fine, suspension, or other penalty, where the City Manager finds that activity at the short-term rental property has posed, or will pose, an imminent threat to public health, safety, and welfare, including, without limitation, activity at the short-term rental property that would constitute a crime of moral turpitude and/or a felony under State or Federal law.

D. In the event the City Manager suspends or revokes a short-term rental license, written notice of the suspension or revocation will be served upon the licensee within ten (10) days of the suspension or revocation in the manner prescribed in EGMC Section 4.38.040(C). The notice will contain:

1. A brief statement of the specific grounds for such suspension or revocation;

2. A statement that the licensee may appeal the suspension or revocation by submitting an appeal, in writing, in accordance with the provisions of EGMC Section 4.38.100, to the City Manager, within ten (10) days of the date of service of the notice; and

3. A statement that the failure to appeal the notice of suspension or revocation will constitute a waiver of all right to an administrative appeal hearing, and the suspension or revocation will be final.

E. A short-term rental licensee for whom a short-term rental license suspension is in effect shall cease all short-term rental operations and advertising at the address that appears on the suspended short-term rental license.

F. Should a short-term rental license be revoked, all short-term rental operations and advertising at the address that appears on the revoked license shall cease. Short-term rental activity at such address may only resume if a minor conditional use permit (MUP) is approved in accordance with EGMC Section 23.16.070. A MUP application may be filed with the City no earlier than one (1) year from the date of revocation. [Ord. 13-2020 §2, eff. 8-21-2020]

4.38.100 Denial, suspension, and revocation – Appeals.

A. Any applicant or licensee aggrieved by the decision of the City Manager in denying, suspending, or revoking a short-term rental license may appeal the decision by submitting a written appeal pursuant to EGMC Chapters 1.11 and 4.10 following notice of denial, suspension, or revocation. The written appeal shall contain:

1. A brief statement in ordinary and concise language of the specific action appealed, together with any material facts claimed to support the contentions of the appellant;

2. A brief statement in ordinary and concise language of the relief sought, and the reasons why it is claimed the appealed action should be reversed, set aside, and/or modified;

3. The signatures of all parties named as appellants and their mailing addresses; and

4. The verification (by declaration under penalty of perjury) of at least one (1) appellant as to the truth of the facts stated in the appeal.

B. Except for a revocation of a short-term rental license pursuant to EGMC Section 4.38.090(C) (revocation for imminent threat to public health, safety, and welfare), any suspension or revocation of a short-term rental license shall be stayed during the pendency of the appeal that is properly and timely filed pursuant to this section. [Ord. 13-2020 §2, eff. 8-21-2020]

4.38.110 Enforcement.

A. In addition to any other remedy, any person violating any provision of this chapter shall be guilty of an infraction for each day such violation continues.

B. Any violation of this chapter may be remedied by a civil action brought by the City Attorney. The City may recover reasonable attorneys’ fees and costs of suit in any civil action brought by the City Attorney to remedy any violation of this chapter.

C. Any person violating the provisions of this chapter shall also be liable for civil penalties of no more than Two Hundred Fifty and no/100ths ($250.00) Dollars for each day the violation continues.

D. Violations of this chapter are hereby declared to be public nuisances subject to abatement by the City.

E. In addition to criminal sanctions, civil penalties as provided in this section, and other remedies set forth in this chapter, administrative penalties of up to Five Hundred and no/100ths ($500.00) Dollars for each violation of this chapter may be imposed against any person violating any provision of this chapter pursuant to the procedures specified in EGMC Chapters 1.12 and 16.18, or pursuant to any generally applicable provisions of the Elk Grove Municipal Code concerning administrative fines and penalties. [Ord. 13-2020 §2, eff. 8-21-2020]