Recently, the Board of Supervisors took steps to update the County’s vacation rental ordinance. Last year, at an update on the number of vacation rental permits issued, I requested a set of potential revisions the Board could consider that would address some of the concerns coming from residents.
Specifically, growing concerns over the loss of housing and the commercialization of neighborhoods led some community groups and neighborhood associations to ask for more tools to restrict the number of vacation rentals in the county.
How many vacation rentals exist?
Since adoption of the first vacation rental ordinance in 2011, the number vacation rentals have increased each year. As of mid-December, there were 740 vacation rental permits (whole home rentals) and 250 Hosted Rental Permits (where the homeowner is present during the rental) in effect in the unincorporated area of the county, for a total of 990 vacation and hosted rental permits.
Of the 740 vacation rental permits, most are presently issued in one of the three designated areas (Live Oak/Seacliff/Rio Del Mar/Davenport), with 648 permits in the three areas. There are currently 271 vacation rental permits in the greater Live Oak area, 370 in the Seacliff/Rio Del Mar area, and seven in the Davenport area.
What changes are being considered?
In early January, the Board of Supervisors unanimously approved a set of guidelines for new restrictions that County staff will bring to the Planning Commission and back to the Board for approval. First, the changes primarily apply to the areas that are most impacted (the coastal areas).
Currently, vacation rentals within specific designated zones near the coast require rental every five years. This would add the renewal requirement on to all areas in the unincorporated county. Other than that, the changes below apply just to the designated areas (coastal). Included in the new proposed changes are:
- Freezing vacation/hosted rentals at current rates in the Seacliff/Aptos Designated Area (SADA) and other designated areas in the County. This would mean that new permits wouldn’t be issued unless a permit became available through non-renewal, revocation, transfer of ownership etc. This provides a stable current level of supply but limits additional negative impacts on long-term housing and neighborhoods
- Adding in the residential area of La Selva into the restrictions as currently there are no restrictions in La Selva
- Creating new parking requirements to new rentals (to minimize on-street and neighborhood impacts)
- Increasing the level of review for new permits so neighborhoods could have a public process to express concerns and receive mitigations (or even denial of an application)
- Create more formal revocation procedures for rentals that are creating impacts
- Establish a waiting list program for those looking to apply for permits as they become available and much more.
These proposed changes still have a significant public process at the Planning Commission, Board of Supervisors and Coastal Commission before taking effect, so you will have opportunities to get involved if this issue interests you.
While updating the vacation rental ordinance won’t solve the housing crisis, nearly all of the homes that have converted to vacation rentals were previously single family primary homes and losing that housing stock is difficult in this housing environment. Additionally, limiting the commercialization of neighborhoods, when there are areas zoned specifically for visitor serving accommodations, is worthy of exploration.
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Story by By Zach Friend, County Supervisor, 2nd District • As always, I appreciate hearing your thoughts on this. Please stop by my office hours in Aptos, Watsonville, Corralitos or Seascape or call me at 454-2200.