Ojai Municipal Code Ch. 24 Prohibition on Unlawful Short-Term, Transient, and Vacation Rentals And…

The purpose of this chapter is to reduce the proliferation of the illegal land use of unlawful short-term, transient, and vacation rentals, and operation of a fractional vacation property, and the associated negative effects caused by this illegal land use on the City's residents, businesses, and visitors, including excessive traffic, reductions in available parking, unlawful conversions of residential property, unlawful conversions of existing affordable and reasonably priced housing units into illegal short term vacation rentals, and inundation of the City's low-density, quiet residential neighborhoods with commercial visitors and activity that adds traffic, noise, and destroys their quiet, low-density residential character. The City intends this prohibition on, and for advertisements for, unlawful short-term, transient, and vacation rentals, and operation of a fractional vacation property, will apply to the extent of, but not beyond, the limit of the City's power, consistent with the First Amendment to the United States Constitution and Article I, Section 2 of the California Constitution, and any preemptive State or Federal laws.

This prohibition on short-term, transient, and vacation rentals, and operation of a fractional vacation property, and advertising ban applies to advertisements and operations of short-term, transient, and vacation rentals, and operation of a fractional vacation property, which are prohibited under Section 4-24.04 and Section 10-2.1715 of this Code, and under the following additional sections of the Ojai Municipal Code:

(a) The Ojai Municipal Code provides that any short-term, transient, fractional vacation property, or vacation rentals of property or a portion thereof for less than 30 days in exchange for any form of compensation is prohibited in all residential zones as this land use is prohibited by Section 4-24.04 and Section 10-2.1715 and not provided for in Ojai Municipal Code Section 10-2.402, Table 2-2 which lists all allowable land uses in residential zones. Ojai Municipal Code Section 10-2.302, subdivision (a) requires that any proposed land use be expressly identified as allowed in the applicable requirements for a zone. Under the principle of permissive zoning, any land use not expressly allowed or permitted via a determination of substantially similar use under Ojai Municipal Code Section 10-2.303 is prohibited. Ojai Municipal Code Section 10-2.303 provides for the City to approve a land use that is substantially similar to a listed land use, but only after finding that the land use is consistent with the General Plan, would not adversely affect the City's public health, safety, and general welfare, and that the proposed use meets all other requirements of Ojai Municipal Code Section 10-2.303. Short-term, transient, fractional vacation property, or vacation rentals are not consistent with the General Plan's designated land uses for residential zones.

(b) The Ojai Municipal Code provides that any short-term, transient or vacation rentals, or operation of a fractional vacation property, of property or a portion thereof for less than 30 days in exchange for any form of compensation is prohibited in all commercial and manufacturing zones as this land use is prohibited by Section 4-24.04 and Section 10-2.1715 and is not provided for in Ojai Municipal Code Section 10-2.503, Table 2-4, with the following exceptions:

(1) Lawfully approved hotels, motels, and timeshare facilities operated in full compliance with all applicable Federal, State, and local rules and regulations including all required permits from the City, which are a permitted use in the Commercial-1, Business-Professional, and Village Mixed Use zones as stated in Ojai Municipal Code Section 10-2.503, Table 2-4; and

(2) Lawfully approved bed and breakfasts operated in full compliance with all applicable Federal, State, and local rules and regulations including all required permits from the City, which are a permitted use in the Business-Professional zone and are a conditionally permitted use subject to the approval of a conditional use permit in the Commercial-1 and Village Mixed Use zones as stated in Ojai Municipal Code Section 10-2.503, Table 2-4. A bed and breakfast is not permitted in any single-family or residential zoning district under Ojai Municipal Code Section 10-2.1703, subdivision (a). A lawfully operated bed and breakfast must conform to the standards of Ojai Municipal Code Section 10-2.1703, the definition of bed and breakfast in Ojai Municipal Code Section 10-2.3602, the parking requirements of Ojai Municipal Code Section 10-2.1405, Table 3-5, which requires one parking space for each guest room, plus two parking spaces for the resident family, and all other applicable rules and regulations.

(c) The Ojai Municipal Code provides that any short-term, transient, or vacation rentals, or operation of a fractional vacation property, of property or a portion thereof for less than 30 days in exchange for any form of compensation is prohibited in all special purpose zoning districts as this land use is prohibited by Section 4-24.04 and Section 10-2.1715 and is not provided for in Ojai Municipal Code Section 10-2.603, Table 2-6, with the following exception:

(1) Lawfully approved hotels and motels operated in full compliance with all applicable Federal, State, and local rules and regulations including all required permits from the City, which are permitted in the Institutional-Recreational-3 zone as stated in Ojai Municipal Code Section 10-2.603, Table 2-6.

(§ 2, Ord. 862, eff. September 23, 2016, as amended by § 2, Ord. 943, eff. November 10, 2023; Ord. 952, eff. 5/23/2024)

For purposes of this chapter the following definitions apply:

(a) "Advertisement" means any writing, picture, video, or other communication in fixed form shown, made available, or presented to the public for the purpose of soliciting a buyer or user of a service, to help sell a product, or to announce the availability of a product or service for purchase or rental by the public.

(b) "Broker or property manager" means person, firm, partnership, association, corporation, company, syndicate, estate, trust, business trust, or organization of any kind who offers to rent or arranges for persons to rent an unlawful short-term rental or otherwise oversees and facilitates the operation of an unlawful short-term rental.

(c) "Fractional vacation property" means any property in which ownership is divided among multiple persons or legal entities and each person or legal entity with an ownership interest has a legal right to occupy and/or rent the home for any fraction of the year that is less than 30 days.

(d) "Person" shall mean any person, individual, firm, partnership, association, corporation, company, syndicate, estate, trust, business trust, or organization of any kind.

(e) "Property owner" means any person, firm, partnership, association, corporation, company, syndicate, estate, trust, business trust, or organization of any kind with a beneficial ownership interest in a property.

(f) "Tenant" means any person, firm, partnership, association, corporation, company, syndicate, estate, trust, business trust, or organization of any kind with a leasehold interest in a property.

(g) "Unlawful short-term rental" means any short-term, transient, or vacation rental, or any operation of a fractional vacation property, of property or a portion thereof, including any accessory dwelling unit, structure, or recreational vehicle or trailer thereon, located in the City of Ojai for less than 30 days in exchange for any form of compensation except for lawfully approved hotels, motels, bed and breakfasts, and timeshare facilities operated in full compliance with all applicable Federal, State, and local rules and regulations including any and all required permits from the City. Unlawful short-term rental includes any advertisement, contract, lease, or agreement that initially defined the rental term to be 30 days or greater and which was subsequently amended, either verbally or in writing, to permit the occupant(s) of the owners' or lessees' short-term rental to surrender the subject property, or portion thereof, before the expiration of the initial rental term that results in an actual rental term of less than 30 days.

(§ 2, Ord. 862, eff. September 23, 2016, as amended by § 2, Ord. 943, eff. November 10, 2023; Ord. 952, eff. 5/23/2024)

(a) All persons, including property owners, tenants, and broker or property managers, are prohibited from displaying, transmitting, sending, or posting anywhere, whether online, in a newspaper, or in any other writing, any advertisement or commercial solicitation for an unlawful short-term rental.

(b) This prohibition does not apply to any advertisement or commercial solicitation for lawfully approved hotels, motels, bed and breakfasts, and timeshare facilities located in the City and operated in full compliance with all applicable Federal, State, and local rules and regulations including any and all required permits from the City.

(§ 2, Ord. 862, eff. September 23, 2016, as amended by § 2, Ord. 943, eff. November 10, 2023)

Short-term, transient, or vacation rental of property or a portion thereof, or any operation of a fractional vacation property, or any other unlawful short-term rental, located in the City of Ojai for less than 30 days in exchange for any form of compensation is prohibited except for lawfully approved hotels, motels, bed and breakfasts, and timeshare facilities operated in full compliance with all applicable Federal, State, and local rules and regulations including any and all required permits from the City.

(§ 2, Ord. 943, eff. November 10, 2023; Ord. 952, eff. 5/23/2024)

(a) Any person, including property owners, tenants, broker or property managers, whether as principal, agent, employee or otherwise, violating any provision of this chapter shall be guilty of an infraction or a misdemeanor as provided in Title 1, Chapter 2, Section 1-2.03 of this Code and, upon conviction thereof, shall be subject to the penalties provided therein. Such person shall be deemed guilty of a separate offense for each and every day during any portion of which any violation of this chapter is committed, continued or permitted by such person and shall be punishable as provided in this section.

(b) In addition to the remedies provided in this section, the City shall have the power to enforce violations of any provision of this chapter by any lawful means permitted by this Code or by applicable law, including, but not limited to, by imposing administrative remedies under Chapter 6 of Title 1 of this Code and by seeking a civil injunction from a court of competent jurisdiction against any unlawful advertisement maintained in violation of any provision of this chapter.

(c) Any person, including property owners, tenants, brokers or property managers, whether as principal, agent, employee or otherwise, violating any provision of Title 4, Chapter 24 of the Ojai Municipal Code shall be subject to a fine of $1,500 for a first violation of this chapter, a fine of $3,000 for a second violation of this chapter within one year of the first violation of this chapter, and a fine of $5,000 for each additional violation of this chapter within one year of the first violation of this chapter, in addition to administrative costs and interest; and forfeiture and disgorgement of all rents and other gross revenue unlawfully received during the period of violation of this chapter; with interest at the highest rate allowed by law. Such person shall be subject to administrative remedies, including fines, for each and every day during which any portion of which any violation of this chapter is committed, continued or permitted by such person and shall be liable as provided in this section.

(d) The remedies specified in this chapter shall be cumulative and the City may resort to any other remedy available at law or in equity and resort to any one remedy shall not cause an election precluding the use of any other remedy with respect to a violation. The City may additionally recover all costs of investigation and enforcement as allowed by applicable law, including by the remedies allowed by Section 1-2.05 of this Code.

(e) The city attorney may seek injunctive, legal, or other equitable relief to enforce this chapter.

(f) Whenever the amount of any penalty, forfeiture, or administrative fine, penalty, or cost imposed under this chapter has not been satisfied in full within 90 days or has not been successfully challenged by a timely writ of mandate, this obligation, with interest at the highest rate allowed by law, shall constitute a debt against the real property on which the violation occurred, and be subject to the processes set forth in Chapter 6 of Title 1 of the Ojai Municipal Code for liens and Section 1-2.05 of this Code for special assessments, in addition to any other lawful remedy.

(g) Any aggrieved person or entity may bring a civil suit in an appropriate State or Federal court to enforce any violation of this chapter. Whoever is found to have violated this chapter shall be subject to appropriate injunctive relief and shall be liable for penalties per this section, damages, costs, and reasonable attorney fees, as well as the costs of investigation and enforcement. Interested persons or entities are not required to exhaust administrative remedies under this chapter prior to filing suit. Should defendants in suit prevail, they may not recover attorneys' fees or costs, unless a reviewing court of competent jurisdiction finds the suit was frivolous and lacked any merit.

(h) A person who is acting as an agent for a transferor of real property that is located within the City of Ojai, or the transferor if acting without an agent, shall disclose to any prospective transferee or purchaser the fact that unlawful short-term, transient, and vacation rentals, and fractional vacation property operation are not allowed anywhere in the City of Ojai. The City Manager shall make a form for this disclosure available to all persons. The specification of items for disclosure in this section does not limit or abridge any obligation for disclosure created by any other provision of law or that may exist in order to avoid fraud, misrepresentation, or deceit in the transfer transaction.

(§ 2, Ord. 862, eff. September 23, 2016, as renumbered and amended by § 2, Ord. 943, eff. November 10, 2023; Ord. 952, eff. 5/23/2024)