San Clemente Municipal Code Art. III Short-term Lodging Units

Footnotes:

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Editor's note— Ord. No. 1617, § 4, adopted Feb. 16, 2016, amended Art. III, §§ 3.24.170—3.24.290, in effect repealing and reenacting said article as set out herein. Former Art. III pertained to Vacation Rental Properties and derived from Ord. No. 1508, § 1, adopted July 20, 2010.

Editor's note— Ord. No. 1622, § 3, adopted May 17, 2016, repealed § 3.24.169, which pertained to purpose and findings for short-term lodging units, and derived from Ord. No. 1617, § 4, adopted Feb. 16, 2016.

An owner may retain an agent to comply with the requirements of this chapter and Title 17 of this code including, without limitation the filing of all reports and remittance of transient occupancy taxes, the filing of an application for any applicable operating license or zoning permit the management of a hotel or STLU and the compliance with the conditions of the any applicable operating license or zoning permit (except for those conditions that the owner alone must satisfy such as the residency requirement for STARs specified in Section 17.28.292). Required operating licenses and zoning permits shall only be issued to the property owner. The owner is ultimately responsible for compliance with the provisions of this chapter and Title 17 of this code, the failure of an agent including an operator to comply with this chapter and this code is non-compliance by the owner.

(Ord. No. 1617, § 4, 2-16-2016; Ord. No. 1622, § 3, 5-17-2016)

A. .....No STLU as defined in this chapter shall be advertised rented or operated without an STLU operating license. No STLU as defined in Chapter 17.88 shall be advertised rented or operated without an STLU zoning permit.

B. .....For purposes of this section, advertising includes announcing or portraying in any medium including electronic medium, that a residential property is available or can be made available for occupancy by a renter on a short-term basis.

C. .....An STLU operating license is owner-specific and does not run with the land. Any change of ownership terminates an existing STLU operating license and requires a new STLU operating license to be issued to the new owner for continued operation of the STLU.

D. .....No STLU operating license shall be issued for an STLU unless (1) the STLU is permitted under the requirements of Title 17 of this code or (2) the STLU is a legally established nonconforming use under Subsection 17.72.060(F).

(Ord. No. 1617, § 4, 2-16-2016; Ord. No. 1622, § 3, 5-17-2016)

Editor's note— Ord. No. 1622, § 3, adopted May 17, 2016, amended § 3.24.180 and in so doing changed the title of said section from "Permit Required" to "Operating License and Zoning Permit Required," as set out herein.

The owner or owner's agent shall file an application for an STLU operating license with the Community Development Director on forms provided by the City. The application shall contain the following information:

1. The name, address, telephone number, and email address of the STLU owner.

2. The name, address, telephone number, and email address of the operator for the STLU.

3. The street address and telephone number for the STLU itself.

4. The approximate square footage, the number of bedrooms or rooms in the STLU, and the maximum numbers of overnight renters in the STLU.

5. A diagram or photograph of the property showing the number and location of designated legal on-site parking spaces and the maximum number of vehicles allowed for overnight guests in the STLU.

6. A site plan of the property showing all buildings and structures on-site, the location of the STLU, and locations of any development requirements, such as trash facilities as identified in Section 17.28.292, Short-term lodging units, of the Zoning Ordinance.

7. A sketch or diagram showing the complete interior configuration of the STLU, including, without limitation, the location of all bedrooms, kitchen, and locations of any operational requirements, such as where the operating license will be posted within the STLU as identified in Section 17.28.292, Short-term lodging units, of the Zoning Ordinance.

8. If an STLU has already previously operated as such, a transient occupancy registration certificate demonstrating that the STLU operator has complied with all its TOT obligations under Chapter 3.24 of the code.

9. If the proposed STLU is governed by an owner's, or homeowners' association (HOA), express written approval of the proposed STLU use by the HOA's governing body.

10. A copy of the STLU's standard rental agreement, which shall include the following language or language substantially similar thereto: "The owner or the owner's agent has the right to immediately terminate the rental agreement and evict the occupants upon: (1) a violation of the rental agreement, or (2) a violation, as determined by the Orange County Sheriff's Department or City Code Compliance Division personnel, of Section 17.28.292, Chapter 8.48, or Chapter 9.16 of the San Clemente Municipal Code." All rental contracts for the STLU shall include this language.

11. Proof that the STLU is (1) permitted under the requirements of Title 17 of this Code or (2) a legally established nonconforming use under subsection 17.72.060(F).

12. Such other information as the Finance and Administrative Services Director and Community Development Director deem reasonably necessary to administer this chapter.

(Ord. No. 1617, § 4, 2-16-2016; Ord. No. 1622, § 3, 5-17-2016; Ord. No. 1694, § 4, 5-5-2020)

Editor's note— Ord. No. 1622, § 3, adopted May 17, 2016 amended § 3.24.190 and in so doing changed the title of said section from "Application for an STLU Permit" to "Application for STLU Operating License," as set out herein.

The Community Development Director shall issue an STLU operating license if he or she finds that

1. The owner has fully complied with the provisions of this chapter;

2. The STLU property has not previously been the subject of a license or permit that was revoked under Section 3.24.067 within the previous 24 months;

3. The STLU owner has not previously held a license, or permits, that was later revoked under Section 3.24.067; and

4. The STLU is permitted under the provisions of Title 17 of this code, including issuance of an STLU zoning permit if required.

(Ord. No. 1617, § 4, 2-16-2016; Ord. No. 1622, § 3, 5-17-2016)

Editor's note— Ord. No. 1622, § 3, adopted May 17, 2016 amended § 3.24.200 and in so doing changed the title of said section from "Denial of STLU Permit" to "STLU Operating License Issuance," as set out herein.

An application for a STLU operating license must be accompanied by payment of the required fee, the amount of which is established by resolution of the City Council.

(Ord. No. 1617, § 4, 2-16-2016; Ord. No. 1622, § 3, 5-17-2016)

The following conditions shall apply to all STLU operating licenses:

1. STLUs must comply with all provisions of Title 17 of the code and with all STLU zoning permit conditions.

2. An STLU operating license is valid for 12 months from the date issued. A new STLU operating license must be applied for and secured each year to continue to operate. The requirements in Subsections 17.28.292C.4. [Insurance] and 10. [Notice] of the Zoning Ordinance must be satisfied each year with each new permit issuance or change.

3. Applications for new STLU operating licenses are considered on a first-come-first-served basis, except that if the STLU owner already holds a valid STLU operating license when he or she applies for a new license for that same STLU (i.e. if the owner applies for a new license before the existing license expires) then the application will be considered a renewal application. A renewal must comply with all the requirements of a new license, but the application is considered when it is deemed complete instead of on a first-come-first-served basis.

4. The STLU owner shall timely comply with Section 3.24.070. Owner shall timely submit the filing whether or not the STLU was rented during the reporting period and transient occupancy tax was collected.

5. The Finance and Administrative Services Director, or designee, may request access to an STLU or to records related to the use and occupancy of the unit for the purpose of inspection or audit to determine that the objectives and conditions of this chapter are being fulfilled. On such request, the STLU owner shall provide access to the Director, or designee, during normal business hours within five business days, unless the request is related to health and safety concerns at the STLU, in which case immediate entry shall be provided.

6. Before occupancy by a renter, the STLU owner or operator must enter into a rental agreement with the renter containing the provision approved by the Community Development Director pursuant to Section 3.24.190(10) of this Code.

7. If the STLU owner or operator immediately terminates the rental agreement and evicts the occupants per the agreement provision required pursuant to Section 3.24.190(10) of this Code, then the STLU owner or operator shall, upon request, provide a copy of the signed rental agreement to the Orange County Sheriff's Department or City Code Compliance Division within five (5) business days.

(Ord. No. 1617, § 4, 2-16-2016; Ord. No. 1622, § 3, 5-17-2016; Ord. No. 1694, § 4, 5-5-2020)

A. Original Delinquency. .....An operator who fails to remit any tax imposed by this chapter within the time required shall pay a penalty of the 10 percent of the amount of tax.

B. Continued Delinquency. .....An operator who fails to remit any delinquent remittance on or before a period of 30 days following the date on which the remittance first became delinquent shall pay a second delinquency penalty of 10 percent of the amount of tax in addition to the amount of the tax and the 10 percent penalty first imposed.

C. Fraud. .....If the Finance and Administrative Services Director determines the nonpayment of any remittance due under this chapter is due to fraud, a penalty of 25 percent of the amount of the tax shall be added thereto in addition to the penalties stated in Subparagraphs 3.24.240A. and B. of this section.

D. Interest. .....In addition to the penalties imposed, any owner or agency who fails to remit any tax imposed by this chapter shall pay interest at the rate of one and one-half percent a month on the amount of the tax, exclusive of penalties, from the date on which the remittance first became delinquent until paid.

E. Penalties Merged with Tax. .....Every penalty imposed and such interest as accrues under the provisions of this section becomes a part of the tax required to be paid by this chapter.

(Ord. No. 1617, § 4, 2-16-2016; Ord. No. 1622, § 3, 5-17-2016)

Permits and fees required by this chapter are in addition to any other license permit or fee required by another chapter of this code. The issuance of any permit pursuant to this chapter does not relieve the owner and operator of the obligation to comply with all other provisions of this code pertaining to the use and occupancy of the hotel or STLU or the property on which it is located.

(Ord. No. 1617, § 4, 2-16-2016; Ord. No. 1622, § 3, 5-17-2016)

A. .....Any person violating the provisions of this chapter by operating or maintaining an STLU without a valid STLU operating license permit is guilty of a misdemeanor.

B. .....Any person advertising an STLU for which currently there is not a valid STLU license is guilty of a misdemeanor.

(Ord. No. 1617, § 4, 2-16-2016; Ord. No. 1622, § 3, 5-17-2016; Ord. No. 1664, § 5, 9-18-2018)

Editor's note— Ord. No. 1622, § 3, adopted May 17, 2016, repealed § 3.24.280, which pertained to an amnesty period and derived from Ord. No. 1617, § 4, adopted Feb. 16, 2016.

If any amount required to be remitted or paid to the City under this chapter is not remitted or paid when due, the Finance and Administrative Services Director may within four years after the amount is due, file for and record in the office of the county recorder a notice of lien specifying the amount of tax, penalties and interest due, the name and address as it appears on the records of the Finance and Administrative Services Director, of the owner or agent liable for the same, and the fact that the Finance and Administrative Services Director has complied with all provisions of the chapter in the determination of the amount required to be remitted and paid. From the time of the filing, the amount required to be remitted, together with penalties and interest, constitutes a lien upon all real property in the county owned by the owner and agent or afterwards and before the lien expires acquired by him. The lien has the force, effect and priority of a judgment lien and shall continue for 10 years from the time of filing of the notice of lien unless sooner released or otherwise discharged.

(Ord. No. 1617, § 4, 2-16-2016; Ord. No. 1622, § 3, 5-17-2016)