Half Moon Bay approves short-term rental ordinance

Under the ordinance, only eight people maximum would be allowed per night in a short-term vacation rental property, or an STR, which are properties where people use a room, home or apartment for vacation stays for up to a month. Approximately 50 short-term rentals are operating in Half Moon Bay now. Unhosted rental nights, defined as nights when the owner is not there, would only be allowed for a maximum of 60 nights at each property, as requested by the council. Rarback noted people objecting to the 60-day limit were not aware the California Coastal Commission would likely not approve the ordinance unless it included a limit.

“Staff did a great job recording all the changes we requested that were done,” Councilmember Joaquin Jimenez said. “Thank you for making those changes, and it looks like 60 days is a good number for short-term rentals.”

The City Council also asked that long-term tenants who want to qualify to be STR operators must be primary residents in the unit for at least two years. A draft ordinance had previously suggested one year. City staff said that residents would also have to reside at the property for half or more of the year. It will also include annual registration and maintaining parking standards. The city has the power to revoke registrations after two citations, which are issued if complaints are warranted, or issue fines.

The council passed the first reading at its Sept. 7 meeting, and a second reading will take place Sept. 21. If adopted Sept. 21, the city will submit it to the California Coastal Commission as an application for an amendment to the city’s certified local coastal program, Community Development Director Jill Ekas said. City staff wanted a stricter ordinance on the books to update vague city laws.

The City Council also discussed grandfathering in current owners in good standing after Vice Mayor Debbie Ruddock proposed it. However, it decided not to after city staff suggested not doing it, and multiple councilmembers stated their opposition.

The vice mayor and Councilmember Deborah Penrose were concerned about allowing long-term residents to have short-term rental permits. Penrose was against allowing long-term primary residents who are not owners have short-term rentals, saying it undermined the primary purpose of housing.

“What you are doing is making money off of the existing property, housing stock that could otherwise be used for long-term residences. So, anything that promotes the idea that the owner of a home is not going to be living in that home while he rents it out in the short-term basis, I’m against,” Penrose said. “Housing is for residential use, and that undermines it.”

However, staff did not include that in the ordinance over equity concerns about providing long-term tenants the same rights as owners.

A staff report noted that the ordinance could decrease STRs, potentially reducing transient occupancy tax revenue. In 2020, the city took about $158,000 in TOT revenue from STRs, with the city averaging about $200,000 per year.

curtis@smdailyjournal.com

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