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Comments From Supervisor Adams
Concerning our New
Short-Term Rental Ordinance
I want to express my gratitude to the County Housing and Community Development (HCD) staff—Craig, Melanie, Taylor, and County Counsel Kelly Donlon—and the Planning Commission, particularly Chair Martha Diehl and Supervisor-elect Kate Daniels, for their dedication to this issue.
After countless hours of work, we now have an ordinance that clearly outlines and enforces regulations for Vacation Rentals.
With a 3-2 vote, my colleagues and I supported updating the Vacation Rental Ordinance, which involves revisions to three ordinances: Title 7 for Business Licenses, Title 20 for Coastal areas, and Title 21 for Inland areas.
This update only applies to unincorporated areas of the County; cities will continue to regulate STRs within their own limits.
The updated ordinance defines three types of Vacation Rentals: Commercial Vacation Rentals, which are unhosted and rented more than three times a year; Limited Vacation Rentals, which are unhosted but rented three or fewer times per year; and Homestays, where the owner remains on-site during the rental period.
The new rules will require a discretionary permit for Commercial Vacation Rentals, while Limited Vacation Rentals and Homestays will be allowed without discretionary review.
All three types will require an annual Vacation Rental Operator License. Notably, Commercial Rentals are now prohibited in Big Sur, Carmel Highlands, Carmel Valley, and Moss Landing due to existing issues and housing limitations in these areas.
I understand this change may be challenging for those who have operated STRs under previous conditions. While some have complied with regulations, others have benefited from an unregulated market.
Moving forward, all operators must apply for the appropriate permits and licenses to continue legally. Those who wish to operate a Short term rental will need to apply for the necessary permits and licenses, and those who do not have these requirements in place will face enforcement action beginning April 25, 2025. This date allows those operating to wind down and gives neighbors who have been negatively impacted by STRs a date to look forward to and allows the County enough time to staff up its enforcement program.
While this ordinance isn't perfect, the County is committed to monitoring the ordinance’s impact and making adjustments as needed. We are working on an amendment to address the areas in the County that we were not able to specifically carve out to prohibit Commercial STRs. I remain committed to addressing your concerns related to Commercial STRs and would appreciate your support and suggestions on how to regulate your area. I hope to have an amendment in place before December 31, 2024.
This effort, a decade in the making, represents a balanced compromise that supports income opportunities, preserves residential housing, and limits neighborhood impacts. Key elements include a 4% cap on Commercial STRs per planning area, a focus on limiting neighborhood disruptions, and protections for our hospitality industry. The licensing requirements and advertising restrictions are crucial for enforcement.
I appreciate all the hard work that went into developing this ordinance and look forward to its effective implementation and enforcement.
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Editor's Note: In last week's bulletin, we stated that a motion by Supervisor Church failed for lack of a second. In fact, it was seconded by Supervisor Adams.
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