Chapter 7.30
SHORT-TERM RESIDENTIAL RENTAL PERMITS
Sections:
7.30.010 Scope, purpose and findings.
7.30.030 Short-term residential rental permit required.
7.30.040 Applications for short-term residential rental permits.
7.30.070 Short-term residential rental permits.
7.30.010 Scope, purpose and findings.
A. The purposes of this chapter (which may be referred to as the “Short-Term Residential Rental Ordinance”) are to document the procedures and regulations that govern the application for, and the issuance and implementation of, permits for the operation of any short-term residential rental use within the city.
B. The city council hereby finds that unregulated transient occupancy uses in residential and nonresidential districts present a threat to the public welfare relating to compatibility with residential uses and preservation of the character of the neighborhoods in which they are located, and to the availability of housing stock in compliance with the housing element of the general plan.
C. The city council hereby finds that the adoption of a comprehensive ordinance regulating the issuance of and operating conditions attached to short-term residential rental permits is necessary to protect the public health, safety and welfare. The purpose of this chapter is to provide a permit system and to impose operational requirements to minimize the potential adverse impacts of transient uses in residential neighborhoods and zoning districts on traffic, noise and density, to ensure the health, safety and welfare of renters and guests patronizing short-term residential rentals, as well as the adjacent occupants, and to impose limitations on the permits issued in order to ensure the long-term availability of housing stock in compliance with the housing element of the city of Millbrae general plan.
D. The city council hereby finds that the provisions of this chapter which impose restrictions on commercial speech, pursuant to the restrictions on advertisements, are necessary in order to advance the city’s legitimate interest in preventing rental activity that violates this code, and in regulating fraudulent, misleading, or deceptive advertising. These restrictions on advertising are necessary in order to prevent advertisers from engaging in unlawful rental activity and from misleading the general public to think that a particular property in the city of Millbrae is available for transient occupancy if, in fact, the advertised property is not authorized to be used for transient occupancy purposes in accordance with this chapter.
E. The city council hereby finds that the city’s regulation of short-term residential rental uses in accordance with this chapter is a valid exercise of the city’s police power in furtherance of the legitimate governmental interests documented in this chapter. (Ord. 771, § 3(A)).
7.30.020 Definitions.
As used in this chapter:
“Authorized agent” means the person specifically authorized by a permittee of a nonhosted unit to represent and act on behalf of the permittee and to act as an operator, manager and contact person of a nonhosted unit, and to provide and receive any notices identified in this chapter on behalf of the permittee. The authority to operate and manage the short-term residential rental unit must include the authority to enter the unit at any time while rented for the purposes of verifying compliance with applicable laws. The authorized agent may include the permittee, or persons other than the permittee.
“Director” means the director of the community development, or a designee of the director of community development.
“Enforcement officer” means the director, chief building official, fire marshall, city code enforcement officer, city department manager (to the extent responsible for enforcing provisions of this code), peace officer, or any other city employee designated by the director, city manager, or MMC 1.05.020 to enforce this chapter.
“Guest” means an invitee of a renter or other person visiting a renter of a short-term residential rental unit who does not rent the unit.
“Hosted unit” means a short-term residential rental at which the permittee sleeps while it is being rented, and at which no more than two bedrooms are rented for transient occupancy at a given time pursuant to this chapter.
“Nighttime hours” means 9:00 p.m. to 7:00 a.m., Sunday through Thursday evenings, and 10:00 p.m. to 7:00 a.m., Friday and Saturday evenings.
“Nonhosted unit” means a short-term residential rental that is not a hosted unit.
“Permittee” means the person to whom a short-term residential rental permit is issued pursuant to this chapter.
“Primary residence” means a dwelling unit where a person is domiciled, and resides for at least two hundred sixty-five nights per year. A person may only have one primary residence at any given time. If a property has multiple dwelling units, including duplexes, triplexes, and properties with accessory dwelling units, each unit is considered a separate residence subject to the primary residence requirement.
“Renter” means a person, other than a permittee, renting or occupying a short-term residential rental unit for compensation of any kind in accordance with the terms of this chapter.
“Short-term residential rental” is defined in MMC 10.05.0200. “Short-term residential rental” includes all hosted units, and all nonhosted units.
“Short-term residential rental unit” means the structure in which a short-term residential rental use is operating. (Ord. 771, § 3(A)).
7.30.030 Short-term residential rental permit required.
Operating a short-term residential rental unit without a short-term residential rental permit, including, without limitation, advertising, booking guests, and accepting monetary compensation for lodging, is prohibited. (Ord. 771, § 3(A)).
7.30.040 Applications for short-term residential rental permits.
A complete application for a short-term residential rental permit must contain all of the following:
A. The following information documented in a form acceptable to the director:
1. The name of the applicant and contact information for the applicant.
2. The address of the proposed short-term residential rental unit.
3. Proof of ownership of the proposed short-term residential rental unit, or proof of the property owner’s consent to the property’s use as a short-term residential rental.
4. Documentation that establishes the proposed short-term residential rental unit is the applicant’s primary residence.
a. If the applicant seeks to rent the short-term residential rental as a nonhosted unit, identify at least two authorized agents (include the name, mailing address, e-mail address, and telephone number) and adequate documentation to establish that the authorized agents have the authority to operate and manage the unit.
5. The number of bedrooms and approximate square footage in the short-term residential rental unit, and the maximum number of overnight occupants under the limitations imposed under MMC 7.30.070.
6. Documentation establishing that all designated bedrooms meet all applicable local building and safety code requirements.
7. The number and location of designated on-site parking spaces, and the maximum number of vehicles allowed for overnight occupants.
8. A proposed notification to neighbors, conforming with the requirements of MMC 7.30.060.
9. A copy of the applicant’s transient occupancy tax registration certificate.
10. Agreement to hold harmless, indemnify and defend the city against claims and litigation arising from the operation of the short-term residential rental.
11. Agreement to comply with all applicable laws and permit conditions, including the short-term residential rental operating restrictions set forth in MMC 7.30.070.
12. Certification of the information submitted.
13. Any other information the director deems necessary to process the application.
B. A permit fee to cover the costs of the application and the administration of the city’s regulatory program, in an amount determined by the council. The fee may be prorated for applications submitted for a partial year.
C. For tenants and applicants to rent nonhosted units, a refundable deposit of one thousand dollars to cover recoverable costs and penalties, including citations, cleanup and emergency response costs, incurred by the city relating to the short-term residential rental. If the city draws on the deposit, the permittee must replenish the deposit within thirty days following a written request. The director may require a larger or smaller deposit for good cause as a condition of approval.
D. The director may develop a process for renewal of short-term residential rental permits that allows the city to verify the applicant’s continued compliance with this chapter. At the director’s discretion, a permit renewal may require less information than the initial application. (Ord. 771, § 3(A)).
7.30.050 Permit processing.
Upon receipt of an application, the director will determine whether the application is complete. if the application is incomplete, the director will notify the applicant. If the applicant fails to submit the required information or fees necessary to complete the application in a timely manner, the director may deem the application withdrawn and return all submittals to the applicant.
The director will approve a complete application where the applicant demonstrates: (1) the ability to meet the requirements of this chapter; (2) the short-term residential rental use will not be detrimental to the public health, safety, or welfare; (3) the applicant has not had a short-term residential rental permit revoked in the prior twenty-four-month period; (4) no more than three violations of applicable federal, state, or local law, regulation, or permits relating to a short-term residential rental operated by the applicant, including, without limitation, violations of this chapter, have occurred in the past twenty-four-month period; and (5) the applicant has no delinquent transient occupancy tax payments, fees, or penalties relating to the short-term residential rental unit. For the purposes of this chapter, all violations by renters, guests, and the permittee of the same provision at the same time on the same day constitute a single violation.
Notwithstanding the foregoing, the director may impose reasonable conditions on a permit where the director determines that the condition will enhance the public health, safety, or welfare of the permittee, renters, or neighbors. The director must provide a written statement explaining any decision to deny or conditionally approve an application. (Ord. 771, § 3(A)).
7.30.060 Notice to neighbors.
Within thirty days of approving a short-term residential rental permit, the director must provide to all property owners within five hundred feet of the permit:
A. A concise summary of the terms of the permit, including: (1) the maximum number of daytime and nighttime hours occupants permitted in the short-term residential rental unit; (2) the maximum number of vehicles which are allowed to be parked on the property; (3) any conditions applied to the short-term residential rental permit; and (4) how to obtain a complete copy of the permit and this chapter.
B. The name and contact information, including telephone numbers and e-mails where the permittee (for a hosted unit) or the authorized agents (where the permit includes operation of a nonhosted unit) of the short-term residential rental may be reached at all times, twenty-four hours per day while the short-term residential rental unit is rented, and the location of the city’s registry of short-term residential rental registry for permittees and authorized agents.
C. The city of Millbrae code enforcement telephone number and the sheriff's nonemergency number where members of the public may report violations of the short-term residential rental permit. (Ord. 771, § 3(A)).
7.30.070 Short-term residential rental permits.
A. A short-term residential rental permit allows the permittee to rent the short-term residential rental unit for an unlimited number of nights as a hosted unit, and if approved by the director, up to one hundred nights as a nonhosted unit during the duration of the permit.
B. Renters must comply, and permittees must ensure compliance of their renters, with the following rules:
1. Nighttime hours occupancy of the short-term residential rental may not exceed two persons per bedroom, plus two additional persons per short-term residential rental unit. For the purposes of this chapter, a studio is considered to have zero bedrooms.
2. Daytime occupancy is limited to twice the nighttime occupancy of the short-term residential rental.
3. No additional parking is required for short-term residential rental units. The number of vehicles of renters and guests is limited to the number of on-site parking spots. Permittees must make existing on-site parking spaces available to renters and guests.
4. The permittee must provide appropriate refuse and recycling service for the short-term residential rental unit. The property must be free of debris both on site and in the street. Trash cans must not be placed on the street prior to twenty-four hours before the scheduled pick-up day and must be promptly removed from the street following service.
5. Renters and/or guests of the short-term residential rental unit may not create unreasonable noise or disturbances, engage in disorderly conduct, or violate provisions of this code or any state law pertaining to noise or disorderly conduct; provided, however, that the city does not intend to authorize, and the city does not authorize, the permittee to act as a peace officer or place himself or herself in harm’s way.
6. Weddings, corporate events, commercial functions, and any other similar events which have the potential to cause traffic, parking, noise or other problems in the neighborhood are prohibited from occurring at the short-term residential rental unit as a component of short-term residential rental activities.
7. Smoking, including, without limitation, smoking of tobacco or cannabis, is not allowed inside short-term residential rental units.
8. Renters and guests must comply with all applicable federal, state, and local laws, regulations, ordinances, and permit conditions.
C. As part of the application for rental, the permittees must require prospective renters to sign an agreement acknowledging the rules set forth in this chapter and promising to comply with them. The permittee must post the rules in a prominent location inside the short-term residential rental unit.
D. Each written advertisement (whether paper or electronic form) for a short-term residential rental use must include the permittee’s “City of Millbrae Certified Short-Term Residential Rental” permit number and business license number as part of the rental offering.
E. Violation of any operating restriction by a renter or guest, and failure to prevent the violation by the permittee are separate offenses. Permittees are strictly liable for failing to prevent violations by their renters and guests of their renters.
F. The permittee must comply with all applicable laws, including, without limitation, all requirements of the business license ordinance (Chapter 7.05 MMC) and the transient occupancy tax ordinance (Chapter 3.30 MMC) for the short-term residential rental use.
G. Effectiveness of each short-term residential rental permit is conditioned upon the applicant obtaining a city business license.
H. Each short-term residential rental permit expires at the end of the fiscal year in which it is issued. The city’s fiscal year currently runs from July 1st to June 30th.
I. A permittee whose permit does not include the authority to rent as a nonhosted unit may request to operate the hosted unit as a nonhosted unit by providing the director by complying with the requirements of MMC 7.30.040(A)(4)(a) and (C). The director may impose conditions that will enhance the public health, safety, or welfare of the permittee, renters, or neighbors, and may alter the amount of the deposit for good cause.
J. Each short-term residential rental permit is personal to the permittee to whom it is issued. Short-term residential rental permits are nontransferrable.
K. The director may promulgate further regulations necessary or convenient to further the purposes of this chapter. (Ord. 771, § 3(A)).
7.30.080 Authorized agents.
A. When the short-term residential rental unit is rented, the permittee (for a hosted unit) or at least one authorized agent (for a nonhosted unit) must respond to all telephone and e-mail messages relating to issues of permit compliance or the health, safety, or welfare of the public or the renter at the short-term residential rental unit within thirty minutes at all times, twenty-four hours per day.
B. The permittee (for a hosted unit) or at least one authorized agent (for a nonhosted unit) must be on the premises of the short-term residential rental unit within one hour of being notified by a renter, the director, or an enforcement officer that there is a need to address an issue relating to permit compliance or the health, safety, or welfare of the public or the renter.
C. A permittee for a nonhosted unit may change any authorized agent listed on the permit with at least forty-eight hours’ written notice to the director. The notice must include sufficient documentation to establish that the proposed authorized agent has the authority to manage and operate the unit.
D. The city will maintain a public registry of permittees (for hosted units), authorized agents (for nonhosted units), and their contact information. (Ord. 771, § 3(A)).
7.30.090 Permit revocation.
At any time during the term of a short-term residential rental permit, the director is authorized to initiate proceedings to revoke or modify the permit, if the director determines in his or her discretion that: (A) the short-term residential rental use is detrimental to the public health, safety, or welfare; (B) the permittee has provided materially false or misleading information in any submittal required under this chapter; (C) the permittee has failed to make any payments of taxes, penalties, or costs owed to the city within thirty days of when such payment is due; (D) three or more violations of any applicable federal, state, or local law, regulation, or permit, including, without limitation, this chapter, relating to a short-term residential rental operated by the permittee have occurred within the previous twenty-four-month period; (E) the short-term residential rental unit is no longer the permittee’s primary residence.
For the purposes of this chapter all violations by permittees, renters, and guests of the same provision at the same time on the same day constitute a single violation.
The director must give the permittee written notice of the proposed revocation, the grounds for the proposed revocation, and the time and place at which the permittee will be given a reasonable opportunity to show cause why the permit should not be revoked. The notice may be served personally upon the permittee or may be mailed to the permittee at the address of the short-term residential rental at least ten days prior to the date of the hearing. Upon conclusion of the hearing the director may revoke the permit for the grounds stated above or modify the permit to include conditions the director deems sufficient to remedy the grounds for the revocation. (Ord. 771, § 3(A)).
7.30.100 Enforcement.
Violations of this chapter are subject to penalties as stated in MMC 1.05.010, except that violations of MMC 7.30.030 are subject to a fine of up to one thousand dollars per violation. Each day, or portion thereof, in which a violation continues is a new violation.
Nothing herein prevents the city from enforcing violations of this chapter by any other means authorized by law. (Ord. 771, § 3(A)).
7.30.110 Appeal.
Any decision by the director made pursuant to this chapter, including on an application or in a permit revocation hearing, is appealable pursuant to MMC 10.05.2700 et seq. (Ord. 771, § 3(A)).