Pismo Beach Municipal Code Art. II Short-Term Rental Regulation

No owner or owners of a property shall rent, offer to rent, or advertise for rent the property as a short-term rental or homestay to another person without a license approved and issued in the manner provided for by this chapter.

(Ord. O-2023-006 § 3 (part)Ø, 2023)

A. A property owner wishing to use a detached single-family residence as a short-term rental or homestay shall do all of the following:

1. Complete a short-term rental application. Submit the following information at the time of application. Applications will not be deemed complete nor processed until all required information is provided and the short-term rental application fee, set by council resolution, is paid to the city:

a. The name, address and telephone number of the property owner, or authorized responsible party, that can be reached via telephone twenty-four (24) hours a day, seven (7) days a week, to respond to complaints regarding the use of the STR or homestay. Any change in the contact information for either the property owner or responsible party shall be promptly furnished to the city within 48 hours of such change.

b. A site and floor plan including unit square footage, bedroom and bathroom locations and dimensions, and parking locations and dimensions, and photographs showing the interior of each bedroom and showing each parking location.

c. Notification materials containing information that allows the city to produce mailing labels, including both owner and occupant lists. The information should be provided in Microsoft Excel format or equivalent. The information should include the following fields for all properties within afive hundred (500) foot radius of any point on the property containing the short-term rental: assessor parcel number, property address, first and last name of owner, owner mailing address, owner city, owner state, and owner zip code. A receipt or letter from the title company or person who completes notification labels, certifying that the labels are correct, to the best ability of the preparer, must also be included.

d. Proof of property ownership for two (2) consecutive years prior to license application and issuance.

e. Such other information as the community development director or designee deems reasonably necessary to administer this chapter, including but not limited to: a government issued driver's license or identification, voter registration, vehicle registration, property tax bill, tax return, and utility bills.

f. Acknowledgment that the owner andresponsible party, if any, have read this chapter, and acknowledgment of their responsibility to assist in enforcement for payment of transient occupancy taxes.

g. Submit a signed affidavit under penalty of perjury by the property owner stating that the home is their primary residence. Failure to sign the affidavit shall be grounds for denial of an STR or homestay license.

h. For properties located as part of a Homeowners Association (HOA), written authorization from the HOA Board of Directors to use the property as an STR or homestay shall be required prior to action on the license by the city

2. Submit to an inspection of the rental by city staff prior to issuance of the license. Prior to issuance of an STR or homestay license, the city shall conduct an inspection of subject property to confirm bedroom count, on-site parking, and applicable safety standards. If complaints are received about STR or homestay operations, the city shall have the right to re-inspect the property. In the event such re-inspection requires access to the interior of a dwelling unit, the property owner shall provide the city access to the premises upon forty-eight (48) hours' advance notice.

3. Review and acknowledge responsibility for enforcement of the city's good neighbor policy.

a. Should the city's good neighbor policy be amended by the community development director, a copy shall be provided to all licensed STR operators via certified mail.

b. Should the certified mail not be accepted or otherwise returned to the city as undelivered, the city shall post the amended copy of the good neighbor policy at the subject property on the front door of the residence. such posting shall constitute receipt of the amended good neighbor policy.

c. STR operators shall sign, acknowledge, and return a signed copy of the amended good neighbor policy to the community development director within ten (10) days of receipt.

d. Failure of an STR operator to sign, acknowledge, and return a signed copy of the amended good neighbor policy to the community development director within ten (10) days of receipt shall be grounds for revocation as outlined in Subsection 5.22.140.C. of this Code.

4. Obtain a valid business license for a short term rental property.

B. Once the short-term rental license is issued by the community development department and a valid business license is on file for the short-term rental or homestay, the tax administrator will issue a valid transient occupancy registration certificate for the short-term rental or homestay pursuant to Section 3.20.060 of this code.

C. Short-term rental and homestay licenses shall be personal property of the property owner and shall not run with the land. Upon sale of a property operated as a short-term rental or homestay, the license shall be deemed void without further action by the city.

(Ord. O-2023-0006 § 3 (part), 2023: Ord. O- 2020-007 § 4, 2020: Ord. O-2018-013 § 4 (part), 2018)

A. The STR or homestay shall be operated consistent with the standards and regulations contained within the zoning codes of the Pismo Beach Municipal Code, including but not limited to Chapters 17.09 and 17.113 of this code.

B. Each short-term rental/homestay shall have the minimum number of off-street parking spaces as required by subsection 17.113.070 F. and subsection 17.09.070 F. of this Code, as applicable, available at all times. Renters of the property shall use the off-street parking provided.

C. Each STR or homestay shall provide for garbage removal as required by Chapter 8.12 of this code. Garbage bins shall be put out for collection no earlier than 5:00 p.m. the day before collection day and brought in no later than 8:00 p.m. on collection day.

D. A written notice shall be conspicuously posted inside each STR or homestay setting forth the name, address, and telephone number of the responsible party required in section 5.22.110 A.1.a. of this code. The notice shall also set forth the maximum number of occupants permitted to stay overnight in the unit, the maximum number of vehicles allowed to be parked on-site, and the day(s) established for garbage collection. The notice shall also provide the non-emergency telephone number of the city police department.

E. Any advertising of the STR or homestay shall include the STR or homestay license number provided by the city and the approved number of bedrooms and required on-site parking spaces.

(Ord. O-2023-006 § 3 (part), 2023: Ord. O-2018- 013 § 4 (part), 2018)

A. As of the date of adoption of the ordinance revising this Chapter 5.22, there are twenty-eight (28) properties authorized for short-term rental or homestay use. There shall be no more than twenty-eight (28) short-term/homestay licenses in effect at any given time under this chapter. No applications for short-term/homestay licenses shall be accepted after December 5, 2023 for properties without an existing short-term/homestay license in effect as of December 5, 2023. In the event a short-term/homestay license is either revoked or is not renewed, or the property transfers ownership, no additional short-term/homestay licenses shall be issued to replace the license on the property. It is the express intention of the city council in adopting this provision to reduce the number of short-term/homestay licenses to zero through attrition over time.

B. Regardless of the date of issuance, short-term rental licenses expire on September 30 of each year. Licensed operators are required to obtain renewal of the license each year prior to September 30. Proof of primary residence shall be submitted each year prior to issuance of annual STR license and business license renewal. As a condition of renewal, the operator shall provide the city a listing of each rental night during the preceding twelve (12) months, a list of the rental charges imposed for each rental night during the preceding twelve (12) months, and proof of payment of transient occupancy tax for the prior twelve (12) months.

C. The licensed operator shall notify the city in writing of responsible party and appropriate contact information. In the event the responsible party changes, the licensed operator shall notify the city in writing of such change not later than forty-eight (48) hours after the change.

D. For the first two (2) years after obtaining an STR license, the property shall be inspected annually during the renewal period for life safety purposes to ensure proper safety and operation of the STR. Following the first two (2) years after an STR license is issued, annual inspections shall not be required as part of the license renewal process, unless one or more violations of this chapter or other provisions of this code are sustained within the previous twelve (12) month period. In such a case, annual inspections may be reinstated for twelve (12) months following each sustained violation.

E. The property owner shall apply for a business license renewal annually.

(Ord. O-2023-006 § 3 (part), 2023)

A. It shall be unlawful and a misdemeanor for any person to construct for short-term rental or homestay use, to convert to short-term rental or homestay use, to offer to another for short-term rental or homestay use, to advertise for short-term rental or homestay use, or to occupy as a short-term rental or homestay use any portion of any structure or facility without full compliance with this chapter.

B. In lieu of the sanctions set forth in subsection 5.22.140 A. of this chapter, violation of this chapter may be prosecuted as an infraction, subject to the following:

1. The penalties for violations specified in subsection 5.22.140 B. of this chapter shall be as follows:

a. Pursuant to Government Code Section 36900(d), for infractions that pose a threat to public health or safety, the fine shall be, at a minimum, one thousand five hundred dollars ($1,500.00) for an initial violation of this chapter, three thousand dollars ($3,000.00) for a second violation of the same provision within one (1) year, and five thousand dollars ($5,000.00) for each subsequent violation of the same provision within one (1) year. Operation of a short-term rental or homestay without a license, and violations of the city's good neighbor policy, shall be deemed to pose a threat to public health or safety.

b. For an initial violation, the community development director may grant a hardship waiver to reduce the amount of the fine upon a showing by the licensee that the licensee has made a bona fide effort to comply after the first violation and that payment of the full amount of the fine would impose an undue financial burden on the responsible party. No such waiver shall be granted for subsequent violations. The fines set forth in this subsection shall not apply to a first time offense of failure to register or pay a business license fee.

c. In addition to the penalties imposed under subsection a., upon a third violation of the same provision within a rolling one (1) year period, the community development director shall revoke the short-term rental license.

C. In lieu of, or in addition to the sanctions set forth in subsection 5.22.140 A. of this code, violation of this chapter may be prosecuted as administrative violations in the manner provided in this subsection 5.22.140 C.

1. The community development director or designee shall cause an investigation to be conducted whenever there is reason to believe that an owner has failed to comply with the provisions of this chapter. Should the investigation reveal that a violation occurred, the Community Development Director or designee shall issue written notice of the violation and intention to impose a penalty and/or revoke the license. The written notice shall be served on the owner and operator or agent and shall specify the facts which, in the opinion of the community development director, constitute grounds for imposition of the penalties and/or revocation, and specify that the penalties will be imposed and/or that the license will be revoked within fifteen (15) days from the date the notice is given unless the owner and/or operator files with the city clerk the fine amount and a request for a hearing.

a. The fine amount for each violation shall be one thousand dollars ($1,000.00).

b. Each separate day or rental night in which a violation exists may be considered a separate violation.

c. Should it be determined by the community development director or designee that the residence is not the property owner's primary residence, the license shall be revoked.

d. Should it be determined by the administrative services director that a licensee has failed to submit, or has been late in submitting two (2) or more transient occupancy taxes (TOT) submittals in a twelve (12) month period, the license shall be revoked.

2. If the owner requests a hearing within the time specified in subsection 5.22.140 C.1. of this code, the city clerk shall serve written notice on the owner and operator, by mail, of the date, time and place for the hearing which shall be scheduled not less than fifteen (15) days, nor more than forty-five (45) days after receipt of request for a hearing. The community development director may preside over the hearing or may designate a hearing officer to take evidence and submit proposed findings and recommendations to the community development director. the community development director shall impose the penalties or revoke the license only upon a finding that a violation has been proven by a preponderance of the evidence, and that the penalty or revocation is consistent with the provisions of this chapter. The community development director shall render a decision within thirty (30) days of the hearing and the decision shall be final.

D. The community development director or designee shall have the authority to impose additional conditions on any license in the event of any violation of the conditions of the license or the provisions of this chapter.

(Ord. O-2023-006 § 3 (part), 2023: Ord. O-2018- 013 § 4 (part), 2018)

Where the owner of property licensed as a short-term rental or homestay pursuant to this chapter ceases such use, the property owner shall promptly inform the tax administrator of the cessation of use of the property as a short-term rental or homestay and shall surrender the STR or homestay license. As set forth in section 5.22.130 of this code, no STR or homestay license shall thereafter be issued for the property.

(Ord. O-2023-006 § 3 (part), 2023: Ord. O-2018- 013 § 4 (part), 2018)

In addition to any other remedy provided by this chapter, a license issued pursuant to this chapter may be suspended, modified or revoked for violations of this chapter, for violation of any other law on the premises of the short-term rental or homestay, or for the maintenance of such other conditions as may be shown to be injurious to the public health and safety. Revocation proceedings may be initiated by the community development director and shall be conducted pursuant to the procedures set forth in section 5.22.140B.

(Ord. O-2023-006 § 3 (part), 2023: Ord. O-2018- 013 § 4 (part), 2018)

Notwithstanding anything to the contrary elsewhere in this code, no license shall be issued under this chapter for any time-share plan.

(Ord. O-2023-006 § 3 (part), 2023)