Chapter 5.76
HOME SHARING RENTALS
Sections:
5.76.030 License, permits and taxes required.
5.76.050 Home sharing permit – Application and renewal procedures.
5.76.060 Regulatory requirements.
5.76.080 Ban, termination, and revocation.
5.76.100 Administrative guidelines.
5.76.110 Hosting platform responsibilities.
5.76.130 Enforcement – Penalties.
5.76.140 Remedies not exclusive.
5.76.010 Purpose.
The purpose of this chapter is to alleviate nuisances, protect the character of the city’s residential communities and stabilize the housing market by protecting the city’s housing supply while at the same time allowing owners and residents to supplement their income, providing potentially more affordable accommodations, and providing the opportunity for companionship. (Ord. 1854 § 15, 2023)
5.76.020 Definitions.
For the purpose of this chapter, the following definitions apply:
“Administrative guidelines” means regulations approved by the city manager that may include, but are not limited to, application requirements, interpretations, conditions, reporting requirements, hosting platform safe harbor requirements, enforcement procedures, and disclosure requirements to implement the provisions of this chapter.
“Bedroom” means any habitable space in a dwelling unit other than a kitchen, bathroom or living room that is intended for or capable of being used for sleeping, is at least seventy square feet in area with no dimension less than seven feet, has a window to the outside, is separated from other rooms by a door, and is accessible to a bathroom without crossing another bedroom.
“Booking” means a reservation for home sharing.
“Booking transaction” means any reservation or payment service provided by a person who facilitates a transaction for home sharing, between a prospective transient user and a host.
“Director” means the director of community development or his/her designee.
“Dwelling unit” means any building or portion thereof that is used as a complete, independent living facility for one or more persons containing permanent provisions for living, sleeping, eating, cooking, and sanitation, as required by the California Building Code.
“Guest” means a natural person who rents a home sharing rental.
“Home sharing” means renting, for a period of thirty consecutive days or less, of one or more bedrooms in a dwelling unit that is the primary residence of the host, while the host lives on site, in the dwelling unit, throughout the guest’s stay.
“Home sharing permit (HSP)” means a permit issued in accordance with this chapter.
“Home sharing rental” means a dwelling unit which is a permanent structure that is made available for home sharing. A home sharing rental is included in the definition of “hotel” for purposes of Chapter 3.16.
“Host” means any natural person who is an owner or a qualifying tenant of a residential dwelling unit offered for use as home sharing rental.
“Hosting platform” means a person or entity that participates in the home sharing rental business by providing booking services through which a host may offer a home sharing rental. Hosting platforms usually, though not necessarily, provide booking services through an online platform that allows a host to advertise the home sharing rental through a website provided by the hosting platform and the hosting platform conducts a transaction by which potential renters arrange use and payment, whether the renter pays rent directly to the operator or to the hosting platform.
“Listing” means a webpage or advertisement (online or otherwise) for a home sharing rental or other overnight rented stays located on a hosting platform or other online platform(s), including the web URL, metadata and other attributes.
“Lives on site” means maintains a physical presence in the home sharing rental including, without limitation, all of the following: the storing of one’s clothes and other personal effects, sleeping overnight, preparing and eating meals, and engaging in other activities of the type typically engaged in by a person residing in a dwelling unit.
“Owner” means any person who, alone or with others, has legal or equitable title to a dwelling unit and has held such interest for a minimum of one year. A person whose interest in the property is solely that of a tenant, subtenant, lessee, or sublessee under an oral or written rental housing agreement shall not be considered an owner.
“Permit period” means a five-year period of time commencing on April 15, 2024, and ending on April 14, 2029, and every five years thereafter commencing on April 15th of that year.
“Person” means a natural person or any legal entity.
“Primary residence” means the residential unit where the host resides for at least one hundred eighty-three nights per year. A host can have only one primary residence.
“Qualifying tenant” means a tenant who has lived at the home sharing rental for a minimum of one year.
“Short-term rental” means any rental of a dwelling unit or any portion thereof for occupancy, dwelling, lodging or sleeping purposes for a period of thirty consecutive calendar days or less which does not qualify as a home sharing rental. (Ord. 1854 § 15, 2023)
5.76.030 License, permits and taxes required.
A. No person may rent, offer to rent, or advertise a home sharing rental to another person without a valid business license. The business license must be renewed on a yearly basis.
B. No person may rent, offer to rent, or advertise a home sharing rental to another person without a valid home sharing permit approved and issued in the manner set forth in this chapter.
C. All home sharing hosts shall be subject to the provisions of Title 5 (Business Licenses and Regulations) and Chapter 3.16, including the requirement to pay the city’s transient occupancy tax (TOT) and the requirement to have a transient occupancy registration certificate. Unless the applicant has the hosting platform they use collect and remit all TOT on their behalf, the applicant must be registered to pay TOT with the city’s business license division. Regardless of whether a host utilizes a hosting platform that offers to collect and remit TOT on their behalf, the host is ultimately responsible for the collection and monthly remittance of TOT to the city. (Ord. 1854 § 15, 2023)
5.76.040 Home sharing permit.
The following persons are qualified to be a host of a home sharing rental:
A. Home sharing permits shall only be granted to applicants who are the owners or qualifying tenants of the proposed home sharing rental as specified in this chapter. A host may be issued only one home sharing permit within the city.
B. The following persons are qualified to be a host of a home sharing rental:
1. An owner who lives on the premises and has owned the residence for a minimum of one year prior to the date of the application.
2. An owner who has owned the residence for a minimum of one year prior to the date of the application and who does not live on the premises but has a qualifying tenant and whose lease with the tenant specifies that the owner may use a designated bedroom or bedrooms for home sharing.
3. A qualifying tenant whose lease with the owner specifies that the tenant may use a designated bedroom or bedrooms for home sharing and the owner has owned the residence for a minimum of one year prior to the date of the application.
4. Ownership, including the length of ownership, shall be established by providing a copy of at least one document that identifies the full name or names of the applicant as owner and the address of the property. Examples of acceptable documents include recent copies of: a property tax bill, mortgage statement, and title report.
5. Primary residency for a host or qualifying tenant shall be established by providing two documents which associate the property as the place which is the base of their personal life activities. Examples of acceptable documents include the following when the name and address match that of the application and there is a date on at least one document establishing residency of one year: valid federal or state-issued photo identification card; passport or alien registration card; valid California voter registration card or status document; vehicle registration certificate; health insurance or vehicle insurance bills; pay stubs with name and address; original utility bills for water, gas or electric service.
C. Home sharing permits shall be valid for a five-year period commencing April 15th of one year and ending on April 14th, five years later.
D. The city shall issue a maximum of one hundred home sharing permits per five-year period. The application period shall be January 1st through February 15th, commencing in calendar year 2024 and then every five years thereafter.
1. If there are more than one hundred qualified applications submitted during this time, the city shall issue home sharing permits by way of a lottery.
2. If there are less than one hundred qualified applicants submitted during this time and additional home sharing permits are available, such permits may be issued on a first-come, first-served basis through the end rental permit period until one hundred permits have been issued. Regardless of when a permit is issued during this time, it shall only be valid until the remainder of the rental permit period.
3. If a lottery is conducted and a qualified applicant is not selected, then the applicant’s permit fee shall be refunded.
E. No home sharing permit shall be issued to a host who has previously had a home sharing permit revoked.
F. No home sharing permit shall be issued for a dwelling unit with a pending enforcement action by the city for violations of this chapter or any provision of the municipal code, unless the approval is required to resolve the enforcement action. (Ord. 1854 § 15, 2023)
5.76.050 Home sharing permit – Application and renewal procedures.
A. Only a proposed host may apply for a home sharing permit.
B. An application for a home sharing permit must meet the following requirements, be made on a form approved by the city, and must contain the following information:
1. The name, address, and telephone number of the host of the residence for which the permit is to be issued.
2. Whether the applicant is an owner or qualifying tenant.
3. Proof that the proposed home sharing rental is the primary residence of the owner, and if applicable, the qualifying tenant.
4. Proof that the owner has owned the proposed home share for at least a year and if applicable, that the qualifying tenant has resided in the proposed home share for at least a year.
5. An acknowledgment that the home sharing permit is only valid for the permit period of five years and subject to renewals which may be through a lottery system if there are more than the allowed number of users which apply.
6. An acknowledgment that the home sharing permit does not create a vested right, is nontransferable, does not run with the land and may not necessarily be renewed for successive five-year periods.
7. If the applicant is a property owner who will reside on site:
a. Proof that the proposed home share is the owner’s primary residence;
b. Proof that the owner has owned the house for a minimum of three hundred sixty-five days prior to the date of the application.
8. If the applicant is an owner who will not reside on site but has a qualifying tenant:
a. Proof that the owner has owned the house for a minimum of three hundred sixty-five days prior to the date of the application;
b. Proof, other than a rental agreement, that the proposed home share is the qualifying tenant’s primary residence;
c. Proof that the qualifying tenant has resided at the residence for a minimum of three hundred sixty-five days;
d. A copy of the lease naming the qualifying tenant and specifying that the owner can use the residence for a home share rental and designating which rooms can be used for such purposes.
9. If the applicant is a qualified tenant:
a. Proof that the owner has owned the house for a minimum of three hundred sixty-five days prior to the date of the application;
b. Proof, other than a rental agreement, that the proposed home share is the qualifying tenant’s primary residence;
c. Proof that the qualifying tenant has resided at the residence for a minimum of three hundred sixty-five days;
d. A copy of the lease naming the qualifying tenant and specifying that the tenant can use the residence for a home share rental and designating which rooms can be used for such purposes.
10. An identification of the number of bedrooms to be home shared.
11. Such other information as required by the administrative guidelines or as the city manager or his/her designee deems reasonably necessary to administer this chapter.
12. All applications must be signed and notarized by the property owner and, if applicable, by the qualifying tenant.
C. An application for a home sharing permit and for each renewal must be accompanied by a fee established by resolution of the city council.
D. Once an applicant has been notified that they will receive a home sharing permit for the following period, the applicant shall have forty-five days to provide the city with the information listed below. Once the information is provided, the home sharing permit shall be issued.
1. Evidence that the host has applied for or obtained a business license for operating a home sharing rental.
2. Evidence that the host has applied for or obtained a transient occupancy registration certificate for the home sharing rental.
3. Proof of general liability insurance in the amount of one million dollars combined single limit. Insurance must be kept up to date on a yearly basis and a copy of the policy must be provided to the city upon request in subsequent years of the rental period. The insurance requirement may be satisfied if the host lists only on hosting platforms that provide the host with this level of insurance. In such a case, the host must provide the city with a copy of the agreement between the host and the hosting platform that evidences the requisite insurance coverage.
E. Renewal applications shall be processed in the same manner as the original application and shall contain the same information.
F. It shall be the obligation of the host to notify the community development department of any changes to the information provided in the application within fifteen business days of such change. (Ord. 1854 § 15, 2023)
5.76.060 Regulatory requirements.
Home sharing permits are subject to the following regulations and conditions:
A. The host must reside on site in a bedroom, within the home sharing rental, during the time in which guests are present.
B. Home sharing is only allowed in the single-family (R-1) and low-density multiple-family (R-2) zones as further set forth in Title 18 and may not be located on any property on which there is an accessory dwelling unit.
C. At all times the home sharing rental must be used solely for residential purposes.
D. Only bedrooms may be rented and occupancy shall be limited to a maximum of four people per bedroom.
E. The host must take responsibility for and actively prevent any nuisance activities that may take place as a result of home sharing.
F. There must be a minimum of two parking spaces on site per unit, which need not be in an enclosed garage. Parking must meet the requirements of Chapter 18.40. At least one parking space per reservation must be made available to guests and such parking may include the required parking as well as driveway spaces. Tandem parking spaces are acceptable provided each tandem space measures at least nine feet by twenty feet and does not extend into any sidewalk or other public right-of-way. If any of the required parking is provided in a garage, each garage space must be kept clear of debris and able to accommodate a vehicle at all times.
G. The host shall keep records of the vehicle license plate numbers of guests, which shall be provided to the city upon request.
H. The host shall notify all residents within seventy-five feet of the property on which the home sharing rental is located that the host is operating a home sharing rental from that location.
I. The host shall post contact information on the property on a place that is visible and accessible to the public that provides the following information for the host: name, phone number, email address. The notice shall also include the home sharing permit number. The notice shall be in a minimum one-inch size font.
J. The home share must at all times have operable basic health and safety features, including fire extinguishers, smoke detectors, and carbon monoxide detectors.
K. The property shall be maintained in a clean and sanitary condition. Trash and refuse shall not be left outdoors and shall not be left stored within public view, except in proper containers for the purpose of collection by the trash collectors.
L. The host must maintain a transient occupancy registration certificate and must ensure the timely remittance of all transient occupancy taxes due in accordance with Chapter 3.16.
M. A home share is for overnight lodging accommodations only and may not be used for, or advertised for use for, weddings, parties of any kind, conferences, or similar events.
N. The host must provide a good neighbor policy notice to all guests that advises, at a minimum, the following:
1. The expectation that guests are expected to be respectful of neighbors and maintain the residential character of the neighborhood;
2. Parking requirements;
3. Rules for trash and recycling;
4. That the city noise provisions require noise levels to be reduced from ten p.m. to seven a.m.;
5. That upon a failure to vacate by the expiration of the occupancy term, guests may be deemed trespassers and may be subject to removal by relevant authorities;
6. That pursuant to Chapter 9.68, if the police are called to address public peace, health, safety, or general welfare issues, guests may be responsible for the cost of the police response; and
7. That the rental may only be used for residential purposes and may not be used for weddings, parties of any kind, conferences, or similar events.
O. If there is a change to the information provided in the application which qualified the dwelling unit to be a home sharing rental, such change must be reported to the community development department in accordance with Section 5.76.050(F); the host must also remove all listings within fifteen business days and cease operations of the home sharing rental.
P. The host shall keep and preserve, for a minimum period of three years, all records regarding each home sharing stay, including the length of stay for each booking and the corresponding rate charged, which shall be provided to the city upon request. (Ord. 1854 § 15, 2023)
5.76.070 Advertising.
A. The host is responsible for the content of all advertising with respect to the home sharing rental.
B. All advertising shall contain the following information:
1. The city-issued registration number;
2. The applicable maximum occupancy per bedroom;
3. That the host will be present at all times during the rental.
C. In the event a home sharing permit is revoked, the host must remove all listings within forty-eight hours.
D. The director may request a hosting platform to remove a listing for any unpermitted home sharing or short-term rental unit or for any home share unit that had its home sharing permit revoked pursuant to this chapter. (Ord. 1854 § 15, 2023)
5.76.080 Ban, termination, and revocation.
A. Ban.
1. If the director determines that there is fraud on any application, the applicant shall be permanently banned from operating a home sharing rental within the city.
2. If there are three sustained complaints, whether criminal, civil, or administrative, within a twelve-month period against a host, the host shall be permanently banned from operating a home sharing rental within the city.
B. Automatic Termination. A home sharing permit shall automatically terminate upon a change of circumstances that would have led to a denial of the home sharing permit in the first instance.
C. Revocation. A home sharing permit may be revoked for noncompliance with any provision of a home sharing permit or this code after receiving a written notice of violation which has become final or for violations of this code at the location of the home sharing rental. A written notice of violation is not required in cases where the violation causes an immediate threat to the health and safety of the guests or other occupants of the home sharing rental or to any surrounding neighbors.
D. Any regulatory actions taken hereunder shall be in writing and issued by the community development director. Such actions shall be appealable pursuant to Chapter 1.12. This shall not apply to any administrative citation issued pursuant to Chapter 1.20. (Ord. 1854 § 15, 2023)
5.76.090 Registry.
All hosts and their respective property permitted for home sharing pursuant to this chapter shall be listed on a registry created by the city, which list shall be periodically updated. This registry shall be a public record and made available to any person upon request. (Ord. 1854 § 15, 2023)
5.76.100 Administrative guidelines.
The city manager or his/her designee may promulgate administrative guidelines, which may include, but are not limited to, application requirements, permit conditions, reporting requirements, inspection frequencies, enforcement procedures, advertising restrictions, and disclosure requirements, to implement the provisions of this chapter. No person shall fail to comply with any such regulation once it is incorporated into the administrative guidelines. (Ord. 1854 § 15, 2023)
5.76.110 Hosting platform responsibilities.
A. Unless an alternative arrangement is authorized by the administrative guidelines, a hosting platform shall be responsible for collecting all transient occupancy taxes applicable to bookings completed through the hosting platform and for remitting the same to the city. The hosting platform shall be considered an agent of the host for purposes of such transient occupancy tax collections and remittance responsibilities as set forth in Chapter 3.16.
B. The hosting platform shall require the host to input the home share unit’s corresponding short-term home sharing permit number, consistent with the city’s alphanumeric format, before the listing can be displayed. Any short-term rental unit listing that predates this chapter and that does not have a corresponding short-term home sharing permit number shall be removed by the hosting platform consistent with this section.
C. A hosting platform shall not complete any booking transaction for any residential property or unit unless it is listed on the city’s registry created under Section 5.76.090 at the time the hosting platform receives a fee for booking the transaction. Upon request from the director made in a manner specified in the administrative guidelines, the hosting platform must remove a home share or short-term rental listing or take other action consistent with the administrative guidelines.
D. On a quarterly basis, the hosting platform shall provide the city with a report detailing the total number of nights all home sharing rentals were rented through the platform during the applicable reporting period.
E. A hosting platform shall not collect or receive a fee or other financial benefit, directly or indirectly through an agent or intermediary, for facilitating or providing services ancillary to an unregistered home sharing rental, including, but not limited to, insurance, concierge services, catering, restaurant bookings, tours, guide services, entertainment, cleaning, property management, or maintenance of the residential property or unit.
F. Safe Harbor. A hosting platform shall be presumed to be in compliance with this chapter if it does either of the following:
1. Operates in compliance with subsections A through E of this section; or
2. Complies with the administrative guidelines approved by the city manager or his/her designee that describe how the hosting platform must satisfy the hosting platform responsibilities in this chapter.
G. The provisions of this section shall be interpreted in accordance with otherwise applicable state and federal laws and will not apply if determined by the city to be in violation of, or preempted by, any such laws. (Ord. 1854 § 15, 2023)
5.76.120 Prohibitions.
A. It is unlawful to offer, operate, maintain, authorize, aid, facilitate or advertise the home sharing of any portion of any residential dwelling unit in the city without a valid home sharing rental permit.
B. It is unlawful to offer, operate, maintain, authorize, aid, facilitate or advertise the home sharing rental of any portion of any residential dwelling unit in the city, other than for home sharing.
C. It is unlawful to operate or maintain a home sharing unit in violation of the provisions of this chapter.
D. Only a qualifying residential dwelling unit or portion thereof may be made available for home sharing subject to this chapter and Title 18.
E. It is unlawful to offer, operate, maintain, authorize, aid, facilitate or advertise the short-term rental of any place or vehicle, other than a permitted home sharing rental, for purposes of overnight lodging. Rentals of recreational vehicles, trailers, and campers are specifically prohibited. (Ord. 1854 § 15, 2023)
5.76.130 Enforcement – Penalties.
A. Any person, including a guest, who violates any provision of this chapter, or hosting platform that violates its obligations under this chapter, shall be subject to administrative citations and penalties pursuant to Chapter 1.20 as well as criminal citations.
B. If the property upon which a home share unit is located is the subject or the site of three final violations of any of the provisions of this chapter, or of Chapter 8.36 (Noise), 8.64 (Abatement of Real Property Nuisances), or 9.68 (Emergency Personnel Response Fee for Unruly Gatherings), Title 15 relating to violation of building codes, or any combination thereof, the home sharing permit for the unit shall be automatically revoked. For purposes of this section, the automatic revocation shall become effective as of the date the third citation becomes final (i.e., the time for administrative and/or judicial review has passed or final judgment of a court has been entered upholding the citation).
C. The remedies provided in this section are not exclusive, and nothing in this section shall preclude the city’s use or application of any other remedies, penalties or procedures established by law. (Ord. 1854 § 15, 2023)
5.76.140 Remedies not exclusive.
The remedies listed in this chapter are not exclusive of any other remedies available to the city under any applicable federal, state or local law and it is within the discretion of the city to seek cumulative remedies. (Ord. 1854 § 15, 2023)