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Home My WebLink About _ 9.4(a)--Update Relating to Short Term Rentals � � �' � � � � � � ' � �' � � ' � ` CITY OF REDDING REPORT TO THE CITY COUNCIL MEETING DATE: May 7,2024 FROM: Jeremy Pagan, Development ITElVI NO. 9.4(a) Services Director/Bldg Official ***APPROVED BY*** ��`� � _. . r�, � � �� _,,�„�� ,w� � ��r��A Ryuy.y aF3d � � . 1�„r,�i��a��+:tzw� �^nt��r�i� C)zr�ctcxrf3lci�t)[ticz�I �w •�:>°+,?tl�� `' tp�ti2,��I ��2 t' ��f��t��{}7 �www�'� > jpagan@cityofredding.org btippin@cityofredding.org SUBJECT: 9.4(a)--Consider report and status update regarding implementation of short-term rental re ulations in the Cit of Reddin . Recommendation Accept report and provide direction to staff regarding implementation of the City of Redding Short-Term Rental Program as we11 as potential revisions to the City of Redding Short-Term Rental Ordinance. Fiscal Impact Acceptance of the report will not result in any fiscal impact. Background/Analysis In response to community concerns regarding the increasing number of short-term rental units operating within the City of Redding (City), City Council (Council) approved amendments to the short-term rental ordinance on June 20, 2023. The amendments primarily included the addition of density and buffer restrictions, inspection requirements for vacation rentals, affidavit renewals for hosted homestays, and more robust provisions for enforcement and/or revocation of short- term rental permits. Along with adopting the amendments to the short-term rental ordinance, Council authorized the hiring of an additional Assistant Planner to help better organize short-term rental compliance, implement the new regulations, streamline permit processing, and coordinate with the Code Enforcement Division to increase enforcement efforts on non-compliant properties. Shortly after the amendments to the short-term rental ordinance became effective on J�uly 21, 2023, the Development Services Department hired a new Assistant Planner who began working in earnest to achieve these goals. To date, staff has done the following: Report to Redding City Council May 1, 2024 Re: 9.4(a)--Update Relating to Short Term Rentals Page 2 l. Procedures and Processes: A variety of City Departments continue working together to update and streamline the permit application and review process, as we11 as working with potential applicants to clarify eligibility requirements and help them understand the different stages of the application process. Significant effort has been spent developing the option for an online permit that would allow the applicant to initiate the permit application through the online permit center. Some additional development work is needed, but this online option should be available in the near future. 2. Permit Data and Accuracy: In August 2023, staff audited a11 short-term rental data within the permitting system for accuracy. Information including expiration dates, timely renewal of permits, and business license account details were cross-referenced to determine which permits in the system were still in good standing. Now that staff resources are available and dedicated to short-tenn rental permitting and compliance, the data is consistently audited on a quarterly basis to ensure accuracy of permit information. Prior to the cleanup, the permitting system indicated an estimated 335 approved short- term rental permits. As of April 9, 2024 ("Q2 2024" in the chart below), there are 258 approved short-term rental permits, broken down into short-term rental types (e.g. vacation rental or hosted homestay). ��1��" �� t� ��:�� :�� , ��. �� :� T ��.��.��.?�� §4��`�C:�� €..��T��°�� ,�.��{�� `��i;�s� ��>€�� •��.i ��.�ra�� :�� `� ��?� `�� #�� .sl�u�� '��A; �;�w�� 3. Compliance Review and Violation Enforcement: The permit application review process has been updated to include compliance with planning, building, and fire codes, basic research of building permit and code violation history, and for new vacation rental applications, a site inspection. Because site inspections are only reguired for new vacation rental permit applications, staff also began requesting a current site plan of the property and floor plan of the residence to be submitted for all short-term rental applications —both new and renewal. This allows staff to identify unpermitted structures and room conversions on existing approved short-term rentals without a site visit, ensuring violations are resolved prior to renewing the permit. Report to Redding City Council May 1, 2024 Re: 9.4(a)--Update Relating to Short Term Rentals Page 3 In order to determine if shart-term rental properties being advertised online have a valid permit, staff provides a daily exported spreadsheet of approved short-term rental permits to a contracted compliance vendor (currently Granicus Host Compliance). The vendor uses the permit data provided by the City to scan various online advertising platforms to determine whether a property advertising a short-term rental in fact has a permit to do so. Staff can then export data from the vendor to determine compliance status and move forward with the enforcement process as necessary. In September 2023, staff sent courtesy notices to 125 properties believed to be operating a short-term rental without a permit. After fielding responses from property owners, staff followed up with a second round of notices to 25 properties. In December 2023, staff referred eight properties who did not respond to either the first or second notice to Code Enforcement. Staff conducted another round of enforcement in March 2024, sending out courtesy notices to 63 properties that range from brand new listings to those that previously violated, came into compliance, but are now violating again. Staff recently followed up with a second round of notices to 23 properties who have yet to respond. If no responses are reeeived, staff will refer these properties to Code Enforcement in the near future. The chart below illustrates that enforcement efforts are working. The "Courtesy Notice" is the first notice, while the "Violation Notice" eomes second if no response is received from the first notice. Most properties come into compliance after the Courtesy Notice is sent. Additionally, the amount of non-compliant properties receiving Courtesy Notices was significantly reduced from Q4 2023 to Q1 2024 (see blue and orange bars in the chart below). ��r��"�� r�t �€� �� °�t., ;t3 �:=:r��rtc.,�,��r�ti�� t��=rs��it �C.c.,��i�:sy�+,�,��x t:��f��v'K�,��tt�t,,rz/�u�Ai��! �:� . . � ��1��.�.�t�<>r��J=;:,t�c� P��i�"�er�,��: �t;? �=:k��,??4�:�rt�J�at�c�. • x5n��€z;4�t��,=�s�k=xr��re�c1 ��l��c";fii.�1i 3e:,l...N":1r'¢.:9'1�Y.�3.,<wdt"4f,s6tT, � �� t�(�) ... ... . ... .... � � ; �4� �� . ... .. .. ... f n � 3 ' � ... ._.. �xfi'�� ..... ...... ..... ...... ,"'�,.4,sfi ... .... �;.�r�c'�`t�?3 t,�1.`?'�3��4 Report to Redding City Council May 1, 2024 Re: 9.4(a)--Update Relating to Short Term Rentals Page 4 Issues Staff is seeking direction from the Council on the following topics: 1. Future Council Updates: As part of these status updates, is there additional short-term rental information the Council would like to see? At what frequency should these updates be provided? 2. Residential units within the Downtown Specific Plan Area: There has always been public interest in using apartment units within the Downtown Specific Plan Area as short- term rentals due to the proximity of businesses, restaurants, and other amenities that are within walking distance. Prior to the current ordinance, short-term rentals were permitted within apartment units within the entire Downtown Specific Plan Area. Of eurrently approved vacation rentals within the Downtown Specific Plan Area, there are nine (9) permitted within the Mixed-Use District and two (2) permitted within the Core District. The latest amendments to the short-term rental ordinance limits apartment unit vacation rentals to the Downtown Core District only. Within the Downtown Specific Plan Area, 301 residential units (58%) of the total 522 downtown residential units are within the boundaries of the Mixed-Use District as delineated in the below table. Of these 301 residential units in the Downtown Mixed-U�se District, 275 of those units are multiple-family (e.g. apartment units). The current short- term rental ordinance does not allow for any of these 275 apartment units to be permitted as a vacation rental. If Council allowed apartment units within the Mixed-Use District to be used as vacation rentals, it may impact available long-term rentals within the downtown area and the availability of services including, but not limited to, social services, medical intuitions, and varying modes of public transportation to individ�uals and families without access to personal vehicles. Downtc�wn S ecific Pian #of Unit� Downtown Core District 221 Sin le-Famil 4 Multi le-Famil 86 Mixed-Use 131 Downtown Mixed-Use District 301 Sin le-Famil 25 Multi le-Famil 275 Mixed-Use 1 ; Tot��Residential ilnits 522 The question for Council to consider is: Should ttpa�tment units located within the Downtown Mixed-Use District be eligible for use as a short-te�m rental? Report to Redding City Council May 1, 2024 Re: 9.4(a)--Update Relating to Short Term Rentals Page 5 3. Vacation Rental Permit Cap: As of April 9, 2024, there are roughly 156 permitted vacation rentals, representing 39 percent of the approved 400-unit cap. Of the vacation rentals approved under the "o1d rules," 75 percent, equating to 117 vacation rentals, are within 600 feet of an existing vacation rental as depicted in attached map labeled "Legal Non-Conforming STRs." The 600-foot buffer rule, in addition to some neighborhood CC&Rs that do not allow for vacation rentals, seems to be slowing down the growth rate of new short-term rentals throughout the City. Therefore, the question for Council to consider is: Does the 400-unit cap need to be rnaintained, or are the number of short-term rental units adequately controlled by the buffer� rule, neighboNhood CC&Rs, and the maNket mo�e generally? Envi�^onmental Review This is not a project defined under the California Environmental Quality Act, and no further action is required. Council Pr�ioNity/City Manage� Goals • Public Safety — "Work to improve a11 aspects of public safety to help people feel secure and safe where they live, work, and play in the City of Redding." • Communication and Transparency — "Improve the quality of communication with the public and City employees to enhance knowledge and increase transparency to improve public trust." • Government of the 21St Century — "Be relevant and proactive to the opportunities and challenges of today's residents and workforce. Anticipate the future to make better decisions today." Attachmen�s ^Legal NonConforming STR Map ^Downtown Specific Plan - Zoning Map t�. � �� }L.e al �Ion�Confc�rmin ��T��s ��g-�� x � � �� ,, �� :�;�, � �� "�,w, ,�`' �„ � � � '� �z�It��#ilI If � t�i' � Shasta 7�harna �, Tr�nity�crir�� Cr�rr�rn��nity ��, �, " College ��. �if `�v r''S� .��"�^ �'�i � Cj � �-' � ,1�f .,�:.�c' r* c� �, � r, �? 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