El Segundo Municipal Code Ch. 16 Home Sharing Permit Program

The purpose of this Chapter is to require the owner of a residentially-zoned dwelling unit that is used for home sharing to apply for and secure a permit authorizing such use in the manner provided for in this Chapter. (Ord. 1614, 7-21-2020; amd. Ord. 1653, 12-5-2023)

For the purpose of this Chapter, the following definitions apply:

ADMINISTRATIVE GUIDELINES: Regulations promulgated by the Director and approved by the City Council that may include, but are not limited to, application requirements, interpretations, conditions, reporting requirements, hosting platform safe harbor requirements, enforcement procedures, and disclosure requirements to implement the provisions of this Chapter.

BOOKING: A reservation for home sharing.

BOOKING TRANSACTION: Any reservation or payment service provided by a person who facilitates a transaction for home sharing, between a prospective transient user and a host.

CHILD or CHILDREN: A person or persons under the age of 13.

DWELLING UNIT: Any building or portion thereof that is used as a complete, independent living facility for one or more persons containing permanent provisions for living, sleeping, eating, cooking, and sanitation, as required by the California Building Code.

HOME SHARING: Renting, for a period of 30 consecutive days or less, of one or more bedrooms in a dwelling unit that is the primary residence of the host, while the host lives on site, in the dwelling unit, throughout the transient user’s stay. Home sharing is also considered to be a short-term rental.

HOME SHARING UNIT: A dwelling unit that is made available for home sharing. A home sharing unit has historically been, and continues to be, included in the definition of “hotel” for purposes of Title 3, Chapter 4 of this Code.

HOST: Any person who is an owner of a residential dwelling unit offered for use as home sharing.

HOSTING PLATFORM: A person or entity that participates in the short-term rental business by providing booking services through which an operator may offer a short-term rental unit. Hosting platforms usually, though not necessarily, provide booking services through an online platform that allows an operator to advertise the short-term rental unit through a website provided by the hosting platform and the hosting platform conducts a transaction by which potential renters arrange use and payment, whether the renter pays rent directly to the operator or to the hosting platform.

LIVES ON-SITE: Maintains a physical presence in the dwelling unit including, without limitation, all of the following: the storing of one’s clothes and other personal effects, sleeping overnight, preparing and eating meals, and engaging in other activities of the type typically engaged in by a person residing in a dwelling unit.

OWNER: The person, persons, or a trustee of a family trust, which holds legal or equitable title to a property used for home sharing.

PERSON: A natural person.

PRIMARY RESIDENCE: The residential unit where an owner resides for at least 183 nights per year. A host can only have one primary residence.

SHORT-TERM RENTAL: The rental of any portion of any structure for occupancy, dwelling, lodging or sleeping purposes for a period of 30 consecutive calendar days or less. (Ord. 1614, 7-21-2020)

A. No person may rent, offer to rent, or advertise short-term home sharing rental of a dwelling unit to another person without a valid Short-term Home Sharing Rental Permit approved and issued in the manner provided for in this Chapter.

B. Any type of short-term rental within the city that does not constitute home sharing as defined by Section 4-16-2 is not eligible for a permit under this program. (Ord. 1614, 7-21-2020)

An application for a Short-term Home Sharing Rental Permit must be made on a form approved by the Director and must contain the following information:

A. The name, address and telephone number of the owner of the unit for which the permit is to be issued.

B. Evidence that a City business license has been applied for or obtained for operating a short-term home sharing business.

C. Evidence that a valid Transient Occupancy Registration Certificate has been issued by the City for the home sharing unit.

D. Proof of general liability insurance in the amount of one million dollars ($1,000,000.00) combined single limit and an executed agreement to indemnify, defend, and hold the City harmless from any and all claims and liabilities of any kind whatsoever resulting from or arising out of the short-term home sharing rental activity.

E. An affidavit signed by the property owner attesting that the property to be used for short-term home sharing rental is the owner's primary residence as defined in Section 4-16-2.

F. Such other information as required by the Administrative Guidelines or as the Director deems reasonably necessary to administer this Chapter.

G. The Short-term Home Sharing Permit Application must be signed by the property owner and notarized.

H. An application for a Short-term Home Sharing Rental Permit must be accompanied by a fee established by resolution of the City Council.

Upon a change of property ownership, the Short-term Home Sharing Rental Permit will automatically expire. For purposes of this Chapter, a change of ownership has the definition set forth in Revenue and Taxation Code section 60 et seq. (Ord. 1614, 7-21-2020; amd. Ord. 1642, 12-6-2022; Ord. 1653, 12-5-2023)

An application for a Short-term Home Sharing Rental Permit that meets the conditions of permit issuance described in Section 4-16-7 must be approved. An application for a Short-term Home Sharing Rental Permit must be denied if any information submitted by the applicant in connection with the application is materially false. Further, a permit may not be issued for any dwelling that is delinquent in the payment for its associated water service. (Ord. 1614, 7-21-2020)

A. All Short-term Home Sharing Rental Permits are subject to the following standard conditions:

1. No Short-term Home Sharing Rental Permit may be issued for a dwelling unit that does not serve as the property owner’s primary residence. A host can only have one primary residence.

2. Parking must be provided on-site at a ratio of not less than one parking space per bedroom in the main residence/unit on the parcel and must be available for use by the short term rental guest(s). Parking spaces may include garage or driveway spaces. Tandem parking spaces are acceptable provided each tandem space measures at least 9 feet by 20 feet and does not extend into any sidewalk or other public right-of-way. If any of the required parking is provided in a garage, each garage space must be kept clear of debris and able to accommodate a vehicle at all times.

3. The home sharing unit must at all times provide operable basic health and safety features, including fire extinguishers, smoke detectors, and carbon monoxide detectors.

4. The property of the home sharing unit shall be maintained in a clean and sanitary condition. Trash and refuse shall not be left outdoors and shall not be left stored within public view, except in proper containers for the purpose of collection by the trash collectors.

5. No signs or displays advertising a home sharing unit are allowed on the subject property.

6. The owner must maintain a transient occupancy registration certificate and must ensure the timely remittance of all transient occupancy taxes due in accordance with Title 3, Chapter 4 of this Code.

7. A home sharing unit is for overnight lodging accommodations only and may not be used for, or advertised for use for weddings, parties, bachelor or bachelorette parties, conferences, or similar events. The owner is responsible for the content of all advertising with respect to the home sharing unit. At no time during a home sharing stay may the total number of rental guests and invitees of such guests on the subject parcel exceed 6, excluding children.

8. The total occupancy of each home sharing unit may not exceed two adult guests for each bedroom available for home sharing. The applicable maximum occupancy must be included in every advertisement, posting, and listing for a home sharing unit.

9. The Short-term Home Sharing Rental Permit number must be included in every advertisement, posting, and listing for a home sharing unit.

10. An accessory dwelling unit may not be used for short-term rental.

11. The short-term rental of space within any dwelling unit or garage for the purpose of storing personal property for compensation is prohibited in all residential zones.

B. Home sharing is permitted in the residential unit that is the primary residence of the property owner within the R-1, R-2, or R-3 Zones, pursuant to section 15-4A-1 of this Code.

C. Reserved.

D. A Short-term Home Sharing Rental Permit may not be issued if a Short-term Home Sharing Rental Permit for the unit was previously revoked pursuant to section 4-16-11(C) or (D) within the previous 12 months.

E. The City Manager and the Director have the authority to impose additional standard conditions, applicable to all home sharing units, as necessary to achieve the objectives of this Chapter.

F. The City Manager and the Director have the authority to impose additional conditions on any permit in the event of any violation of the conditions of the permit or the provisions of this Chapter.

G. The Director may direct a hosting platform to remove a listing for any unpermitted home sharing or short-term rental unit or for any home share unit that had its permit revoked or suspended pursuant to this chapter. (Ord. 1614, 7-21-2020; amd. Ord. 1642, 12-6-2022; Ord. 1653, 12-5-2023)

All owners and their respective property permitted for home sharing pursuant to this Chapter will be listed on a registry created by the City and updated periodically. The City shall make a copy of the registry available electronically to any person upon request. (Ord. 1614, 7-21-2020)

A. Unless an alternative arrangement is authorized by the Administrative Guidelines, a hosting platform shall be responsible for collecting all transient occupancy taxes applicable to bookings completed through the hosting platform and for remitting the same to the City. The hosting platform shall be considered an agent of the owner for purposes of such transient occupancy tax collections and remittance responsibilities as set forth in Title 3, Chapter 4 of this Code.

B. The hosting platform shall require the host to input the home share unit’s corresponding Short-term Home Sharing Rental Permit number, consistent with the City’s alphanumeric format, before the listing can be displayed. Any short-term rental unit listing that predates this ordinance and that does not have a corresponding Short-term Home Sharing Rental Permit number shall be removed by the hosting platform consistent with this Section.

C. A hosting platform shall not complete any booking transaction for any residential property or unit unless it is listed on the City’s registry created under Section 4-16-8 at the time the hosting platform receives a fee for booking the transaction. Upon request from the Director made in a manner specified in the Administrative Guidelines, the hosting platform must remove a home share or short-term rental listing or take other action consistent with the Administrative Guidelines.

D. On a quarterly basis, the hosting platform shall provide the City with a report detailing the total number of nights all home sharing units were rented through the platform during the applicable reporting period.

E. A hosting platform shall not collect or receive a fee or other financial benefit, directly or indirectly through an agent or intermediary, for facilitating or providing services ancillary to an unregistered home sharing unit, including, but not limited to, insurance, concierge services, catering, restaurant bookings, tours, guide services, entertainment, cleaning, property management, or maintenance of the residential property or unit.

F. Safe Harbor. A hosting platform shall be presumed to be in compliance with this Chapter if it does either of the following:

1. Operates in compliance with subsections (A), (B), (C), (D), and (E) above, or

2. Complies with the Administrative Guidelines issued by the Director and approved by the City Council that describe how the hosting platform must satisfy the hosting platform responsibilities in this Chapter.

G. The provisions of this Section shall be interpreted in accordance with otherwise applicable State and Federal laws and will not apply if determined by the City to be in violation of, or preempted by, any such laws. (Ord. 1614, 7-21-2020)

A. It is unlawful to offer, operate, maintain, authorize, aid, facilitate or advertise the home sharing of any portion of any residential dwelling unit in the city without a valid Short-term Home Sharing Rental Permit.

B. It is unlawful to offer, operate, maintain, authorize, aid, facilitate or advertise the short-term rental of any portion of any residential dwelling unit in the city, other than for home sharing.

C. It is unlawful to operate or maintain a home sharing unit in violation of Section 4-16-7.

D. Only a qualifying residential dwelling unit or portion thereof may be made available for home sharing subject to this Chapter and Title 15.

E. It is unlawful to offer, operate, maintain, authorize, aid, facilitate or advertise the short-term rental of any place or vehicle, other than a permitted home sharing unit, for purposes of overnight lodging (for example, a tree house, recreational vehicle, tent, etc.) (Ord. 1614, 7-21-2020)

A. Any person who violates any provision of this Chapter, or any hosting platform that fails to meet its obligations under Section 4-16-9, is guilty of either (i) an infraction which shall be punishable by a fine not exceeding $2,500 for the first violation and $5,000 for each additional violation within a twelve-month period, or (ii) a misdemeanor which shall be punishable by a fine not exceeding $1,000 or by imprisonment in the county jail for not more than six months, or by both.

B. Any person who violates any provision of this Chapter, or hosting platform that violates its obligations under Section 4-16-9, shall be subject to administrative citations and penalties pursuant to Title 1, Chapter 2A of this Code.

C. If the property upon which a short-term home sharing rental unit is located is the subject or the site of two violations of any of the provisions of this Chapter, or of Chapters 1, 2, or 13 of Title 7 of this Code, the Short-term Home Sharing Rental Permit for the unit shall be automatically revoked. In such a case, no new Short-term Home Sharing Rental Permit may be issued for the unit for the earlier of either three months from the effective date of revocation; or a change of the ownership of the unit to a new person.

D. In addition to the penalties set forth herein, if the short-term home sharing rental property is the site of a loud or unruly gathering in violation of Section 7-12-3 that results in the issuance of an administrative citation or criminal charge, the Short-term Home Sharing Rental Permit will be automatically revoked if and when the administrative citation becomes final (i.e., the time for administrative or judicial review has passed or a final court judgment has been entered upholding the citation) or a criminal conviction is obtained. In such a case, no new Short-term Home Sharing Rental Permit may be issued for the unit for the earlier of either three months from the effective date of revocation; or a change of the ownership of the unit to a new person.

E. The City may issue and serve administrative subpoena, pursuant to Government Code §§ 34104 et seq., as necessary to obtain specific information regarding short-term home sharing rental listings located in the City, including, without limitation, the names of the persons responsible for each such listing, the address of each such listing, the length of stay for each such listing, the listing price, and any other information necessary for the City to determine compliance with this Chapter.

F. The remedies provided in this Section are not exclusive, and nothing in this Section shall preclude the City’s use or application of any other remedies, penalties or procedures established by law. (Ord. 1614, 7-21-2020; amd. Ord. 1642, 12-6-2022; Ord. 1653, 12-5-2023)

The remedies listed in this Chapter are not exclusive of any other remedies available to the City under any applicable federal, state or local law and it is within the discretion of the city to seek cumulative remedies. (Ord. 1614, 7-21-2020)