12A.pdfNO. 2 PORTUGUESE BEND ROAD
ROLLING HILLS, CA 90274
(310) 377-1521
FAX (310) 377-7288
Agenda Item No.: 12A
Mtg. Date: 03/17/15
TO: HONORABLE MEMBERS OF THE PLANNING COMMISSION
FROM: SHAHIEDAH COATES, ASSISTANT CITY ATTORNEY
YOLANTA SCHWARTZ, PLANNING DIRECTOR
SUBJECT: DISCUSSION REGARDING A ZONING CODE AMENDMENT TO
PROHIBIT SHORT-TERM RENTAL OF PRIVATE RESIDENCES
DATE: March 17, 2015
ATTACHMENTS:
Section 17.12.040 Dwelling unit -definition
Section 17.16.020 Permitted Uses
Section 17.08.050 - Zoning compliance required
Recent (3/11/15) LA Times Article
DISCUSSION
Members of the City Council have requested that the Planning Commission discuss the
issue to clarify that private residences in the City of Rolling Hills may not be used as
short-term transient occupancies. If the Planning Commission finds an amendment to
prohibit such uses necessary, such ordinance would amend the Zoning Ordinance and
therefore requires a recommendation of the Planning Commission.
Rolling Hills Municipal Code ("RHMC") Section 17.08.050 provides that uses not
specifically permitted in the RHMC are prohibited. The RHMC does not specifically
permit commercial uses; therefore, they are prohibited. However, due to the recent
developments in the hospitality industry it could be desirable to clarify whether single-
family residences in the City of Rolling Hills may be marketed and/or rented to
transients as vacation rentals.
In recent years, private residences have become popular alternatives to hotels, motels,
and bed and breakfasts. In this market, private homeowners typically list their
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property as available for short-term stays on a travel website, such as Airbnb, which in
turn serves as a broker through which travelers reserve the homes for short-term stays.
Cities throughout the country have responded to the growing market for residential
short-term rentals in different ways. In some cities, the practice is strictly prohibited. In
others, private residences may be offered as short-term rentals if the units are registered
with the city and transient occupancy tax ("TOT") is paid to the city. In some cities that
allow private short-term rentals, regulations have been adopted to address potential
negative impacts such as increased noise and traffic. Such regulations range from a
limit on the number of days in each calendar year that a property may be occupied as a
short-term rental to a minimum age requirement for transients.
FISCAL IMPACT
Prohibition of Short -Term Rentals
Because marketing and renting private property for transient occupancy constitutes a
commercial use not permitted under the Zoning Ordinance, an ordinance amendment
would clarify existing law and would have no direct fiscal impact. However, a fiscal
impact will result from code enforcement and prosecutorial activities. It can be difficult
to identify with certainty homes that are marketed and rented as short-term rentals. For
instance, Airbnb provides the general location of available properties within a specified
city, but not addresses. Some cities have found that the only way to obtain specific
addresses of private short-term rental properties is by issuing subpoenas to the travel
companies. The City of Rolling Hills has limited resources to conduct the kinds of
investigations necessary to accurately identify private short-term rental properties in
the City.
Regulation of Short -Term Rentals
An alternative to prohibiting short-term rentals would be to allow the practice, but
require rental properties to register with the City and pay TOT. Allowing short-term
rentals could increase the number of transients and visitors in the City and negatively
impact traffic, noise, and security. However, permissive regulation could provide new
revenue streams for the City.
RHCA GATE POLICY
The RHCA current gate policy does not separate entry privileges for long-term guests
from short-term guests. As long as a property owner places the guest on their list as
allowed visitor, that visitor stays on the list until the resident removes him/her from it.
There is no limit on how many guests one can have on a list and for how long nor is
there a Iimitation on how many different guests one may have in any one year. Also, the
RHCA is not informed if any income is generated from any activities in the City.
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CONCLUSION
It is recommended that the Planning Commission discuss this issue and decide if a
zoning code amendment is necessary to clarify prohibition against private residential
short-term rentals and make a recommendation to the City Council.
Should the Planning Commission determine that such an amendment is necessary, a
public hearing before the Planning Commission would be scheduled for the April
meeting and staff would bring a Resolution recommending that the City Council adopt
an ordinance amending the Rolling Hills Municipal Code to clarify that private
residences in the City of Rolling Hills may not be used as short-term transient
occupancies.
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RHMC REGULATIONS
17.12.040 "D" Words
Dwelling, Single -Family. "Single-family dwelling" means a detached
building which, regardless of form of ownership, is designed and/or used to
house not more than one family, including all domestic employees of such
family. A single-family dwelling also includes a manufactured home certiflied
under the National Mobile Home Construction and Safety Standard Act of 1974,
provided that all development standards applicable to single-family dwellings
are adhered to as described in this title.
17.16.020 Permitted uses.
Uses permitted in the RA -S zone as primary uses include:
A. Single-family residences;
B. Tree, bush or field crops provided there is no retail sale from the premises
and provided the activity does not cause undue traffic, which would normally be
associated with residential use.
17.08.050 Zoning compliance required.
Except as provided in this title, no building shall be erected, reconstructed or
structurally altered, nor shall any building or land be used for any purpose
except as specifically provided for and allowed by this title. Any use or structure
not specifically permitted by this title shall be prohibited.
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Airbnb and other short-term rentals worsen housing shortage, critics say - LA Times
Airbnb and other short-term rentals worsen
housing shortage, critics say
By TIM LOGAN, EMILY ALPERT REYES AND BEN POSTON
MARCH 11, 2015, 3:00 AM
he last time he advertised one of his apartments, longtime Los Feliz landlord Andre
LaFlamme got a request he'd never seen before.
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3/11/15, 7:31 At
A man wanted to rent UFlamme's 245 -square -foot bachelor unit with hardwood floors for $875 a
month, then list it himself on Airbnb.
"Thanks but no thanks," LaFlamme told the prospective tenant. "You've got to be kidding me.
But he understood why: More money might be made renting to tourists a few days at a time than to a
local for 12 months or more.
As short-term rental websites such as Airbnb explode in popularity in Southern California, a growing
number of homeowners and landlords are caving to the economics. A study released Wednesday from
Los Angeles Alliance for a New Economy, a labor -backed advocacy group, estimates that more than
7,000 houses and apartments have been taken off the rental market in metro Los Angeles for use as
short-term rentals. In parts of tourist -friendly neighborhoods such as Venice and Hollywood, Airbnb
listings account for 4% or more of all housing units, according to a Times analysis of data from Airbnb's
website.
That's worsening a housing shortage that already makes Los Angeles one of the least affordable places
to rent in the country.
"In places where vacancy is already limited and rents are already squeezing people out, this is
exacerbating the problem," said Roy Samaan, a policy analyst who wrote the alliance's report. "There
aren't 1,000 units to give in Venice or Hollywood."
Fast-growing Airbnb and others like it say they help cash-strapped Angelenos earn a little extra money.
Airbnb estimates that 82% of its 4,50o L.A. hosts are "primary residents" of the homes they list, and
that nearly half use the proceeds to help pay their rent or mortgage. And the effect on the broader
housing market is so small that it's all but irrelevant, said Tom Davidoff, a housing economist at the
http:/ /www.fati mes_com/ business/realestate/la-fi-arbnb-housing-market-20150311-story.html#page-2
Airbnb anal other short-term rentals worsen housing shortage, critics say - LA Times
University of British Columbia whom Airbnb hired to study its impact.
3/11/15, 7:31 AM
"Over the lifetime of a lease, rents maybe go up 1.5%," he said. "That's peanuts relative to the increases
we've seen in housing costs in a lot of places."
But there are growing signs of professionalization of the short-term rental world, from property -
manager middlemen like the one who e-mailed LaFlamme to Airbnb "hosts" who list dozens of
properties on the site. The Los Angeles Alliance study estimates that 35% of Airbnb revenue in
Southern California comes from people who list more than one unit.
" t don't think anyone would begrudge someone renting out a spare bedroom," Samaan said. "But
there's a whole cottage industry that's springing up around this."
City Council member Mike Bonin, whose coastal district includes Venice, and Council President Herb
Wesson want to study how these rentals have affected the city. No regulations have been drafted, and
Bonin said the council would seek extensive community input. Current rules bar short-term rentals in
many residential areas of the city, but critics say they're rarely enforced.
As city officials craft new ones, they'll certainly be hearing from Airbnb and its allies. Last year, the
company spent more than $100,000 lobbying City Hall and released a study touting its economic
impact in L.A. — more than $200 million in spending by guests, supporting an estimated 2,60o jobs. A
group representing short-term rental hosts has made the rounds of City Council offices as well.
This industry "needs to be regulated and regulated the right way," said Sebastian de Kleer, co-founder
of the Los Angeles Short Term Rental Alliance and owner of a Venice -based vacation rental company.
"For a lot of people, this is a very new issue."
Neighborhood groups are sure to weigh in too, especially in Venice.
The beach neighborhood has the highest concentration of Airbnb listings in all of metro Los Angeles.
Data collected by Teyond Pricing,; a San Francisco -based start-up that helps short-term rental hosts
optimize pricing, show that in census tracts along Venice Beach and Abbott -Kinney Boulevard, Airbnb
listings accounted for 6% to 7% of all housing units — about 10 times the countywide average.
A letter last fall from the Venice Neighborhood Council to city officials estimated that the number of
short-term rental listings in the area had tripled in a year, citing a "Gold Rush mentality" among
investors looking for a piece of the action. That's hurting local renters, said Steve Clare, executive
director of Venice Community Housing.
"Short-term rentals are really taking over a significant portion of the rental housing market in our
http://www.lati mes.com/business/realestate/ia-fl-ai rbnb-housing-mar&et-2015031I-story.html#page-2
Airbnb and other short-term rentals worsen housing shortage, critics say - LA Times
3/11/15, 7:31 AM
community," Clare said. "It's going to further escalate rents, and take affordable housing out of
Venice."
Along the Venice boardwalk, a number of apartment buildings now advertise short-term rentals, and
houses on the city's famed "walk streets" routinely show up in searches on Airbnb. Even several blocks
inland, at Lincoln Place Apartments — a 696 -unit, newly renovated complex that includes a pool, gym
and other tourist -friendly amenities — Roman Barrett recently counted more than 40 listings on
Airbnb and other sites. Barrett, who moved out over the issue, said Airbnb effectively drives up the
rent. He paid $2,7oo a month for a one -bedroom; now he's looking farther east for something he can
afford.
"It's making places like Santa Monica and Venice totally priced out. Silver Lake is impossible. I'm
looking in Koreatown right now," Barrett said. "They need to make a law about this."
A new law of some sort is the goal at City Hall. New York, San Francisco and Portland, Ore., have
crafted regulations to govern taxes, zoning and length of stay in short-term rentals, and Airbnb says it's
glad to help in that process here.
"It's time for all of us to work together on some sensible solutions that let people share the home in
which they live and contribute to their community," spokesman Christopher Nulty said in a statement
Tuesday.
Will Youngblood, the man who e-mailed LaFlamme about managing his apartment in Los Feliz, says
he'd also appreciate clearer rules and an easier way to pay occupancy taxes.
Youngblood runs five Airbnb apartments, mostly in Hollywood. A former celebrity assistant, he's been
doing this for two years; it's a full-time job. Most of Youngblood's clients own their homes but travel a
lot or live elsewhere. One, he rents and lists full time. He's been looking around for another.
"I'm honest about what I do," he said. "Some [landlords] are like, 'That's insane. No way.' Other people
say, 'We'd love that."'
If the city decides it doesn't like what he's doing, Youngblood said, he'll go do something else. But for
now, he said, it's a good way to make some cash and meet interesting people.
But he won't meet LaFlamme. The longtime landlord concedes he "might be old-fashioned," but he just
doesn't like the idea of strangers traipsing through his apartments. He prefers good, long-term tenants,
and in L.A.'s red-hot rental market he has no problem finding them.
"I almost find it painful to rent things these daysn," he said. "There's so much demand and so many
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http://www.latimes.com/business/ realestate/la-fl-airbnb-housing-market-20150311-story.html#page=2
Airbnb and other short-term rentals worsen housing shortage, critics say - LA Times
people who are qualified and nice people who I have to turn away."
For that apartment in Los Feliz, LaFlamme said, he found a tenant in less than 24 hours.
tirn.logan @Iatimes.conx
emily.alpert@latimes.corn
ben.poston@latimcs.com
Times staff writer Sandra Poindexter contributed to this report.
Copyright i4 ) �'O 15, 1. os Angei,xs 11me5
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