Santa Cruz County Vacation Rental Ordinance Being Proposed

At their June meeting, the Santa Cruz County Board of Supervisors, at the request of a memorandum from John Leopold, directed the Planning Department to draft an ordinance regulating vacation rentals in residential areas. According to Leopold's memorandum, vacation rentals have "caused growing problems for residential neighborhoods in coastal communities. Increased numbers of vacation homes/rentals have stirred discussion about the preservation of neighborhood integrity, decreases in rental housing for local residents, public safety, and increased rents. The more universal complaints include loud, late-night parties, traffic, and garbage."

The vacation rental ordinance would regulate: a) the location of new vacation rentals; i.e. no new vacation rentals can be within 200 feet of an existing vacation rental. b) the number of rentals an owner can have during a given time frame, including minimum stay. c) the maximum number of tenants. d) the size of gatherings and types of venue. e) parking; on site only, no street parking. f) how the vacation rental can be advertised & marketed.

In addition, all vacation rental owners will be required to pay a transit occupancy tax (TOT). The Housing Advisory Commission (HAC) presented the comments of opposition are summarized below.

1) Infringement of property rights, property rights, and property rights.

2) Financial impact to the owner.

(a) forced to sell home if the rental income is lost or decreased, especially in this economic turndown. b) special districts have proven to decrease property values

3) Economic impact to the community:

(a) visitors contribute to the health of small business, especially in off-season by eating at restaurants, shopping at grocery stores, buying souvenirs, recreational activities, (b) lost sales tax revenue to the County, (b) service people such as house cleaners, handymen, painters, gardeners, etc. would lose business

4) Data needed to support ordinance:

(a) data must be provided to show the number of police complaints that have been made. (b) data must be provided showing why the cur-County Vacation Rental Ordinance Being Proposed

Candie Noel, Local Government Relations Chair @ Bailey Properties, Inc. 831- 688-7434 draft proposal for public comment at their September 21 meeting where approximately 130 people packed the Green Acres School multi-purpose Room. A strong majority of the approximately 40 citizens who spoke were opposed to the vacation rental ordinance, with a mere handful supporting it.

The speakers were a diverse group. The expected vacation rental owners were there. Surprisingly, many who spoke in opposition to the ordinance were residents who lived next door to a vacation rental, and in areas with a large number of vacation rentals.

Many of the vacation rental owners were not new to Santa Cruz, but had inherited the vacation rental from a parent or grandparent. A few vacation rental owners from Boulder Creek also spoke about the negative impact the ordinance would have for their personal financial condition. Also speaking were representatives from the Santa Cruz Business Council, The Senior Coalition, and the Santa Cruz Republican Party; all opposed.

Those supporting the ordinance argued they were living in a business district not a residential area, and the necessity to balance the neighborhood with families.

The speakers opposed to the ordinance asked for positive guidance from the County rather than a negative ordinance. Their rent laws on the books can't be used to enforce any problems caused by vacation renters.

5) Integrity of the neighborhood:

(a) this has been a vacation based community since the late 1800's.

Some vacation rentals are third generation owned. (b) owners screen tenants prior to renting (c) neighborhood "watchdogs", don't we all have one.

To some degree we will all be affected by this ordinance.

To learn more please plan to attend the planned meetings. October 6 The Housing Advisory Commission will hold a special meeting to review the draft and the public comments from the September 21 meeting. The Planning Commission will hold a public hearing October 27 and review the HAC recommendation. November 6 The Board of Supervisors will hold a public hearing to review the Planning Department recommendations. The final ordinance will then go to the California Coastal Commission for approval.