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HomeMy WebLinkAbout11-12-2013 ac johnson & davidson ss1NO\/ 12 2013 ü CÏTY HRK R councrl memopânòu DATE:November 12,2013 City Council Michael Codron. Assistant City AGENDA CORRESPONDENCE tutunug"r0 TO 1 VIA FROM:Derek Johnson, Community Development Director Doug Davidson, Community Development Deputy Director SUBJECT: Vacation Rentals Study Session - Council Meeting November 12,2013 (SS-l) The following questions have been raised in advance of tonight's vacation rental study session Does our current general plan - Land Use or Housing Element - contain policies that specifically call for the City to encourage owner-occupied housing? If so, could you provide a reference to those policies? Staff Response The Land Use Element contains the following goals and policies encourage owner occupancy in neighborhoods: Housing Element Goal #7 Neighborhood Qualify Maintain, preserve, and enhance the quality of neighborhoods, encourage stability and owner occupancy, and improve neighborhood appearance, function, and sense of community. Land Use Element Program 2.15 Neighborhood Wellness Action Plans To help residents preserve and enhance their neighborhoods, the City will: A. Identify neighborhoods, and work with residents to prepare neighborhood plans that empower them to shape their neighborhoods; B. Help devise strategies to help stabilize the rental/owner ratio, to maintain neighborhood character, safety, and stability; C. Help identify neighborhood problems, and undertake a wide range of focused development- review, capital-improvement, and code-enforcement efforts; D. Encourage the formation of voluntary neighborhood groups, so residents can become involved early in the development review process; E. Involve residents early in reviewing proposed public and private projects that could have neighborhood impacts, by notifying residents and property owners and holding meetings at convenient times and places within the neighborhoods. F. Provide appropriate staff support, possibly including a single staff person for neighborhood issues, and train all staff to be sensitive to issues of neighborhood protection and enhancement. 2. What effect, if any, do you think that changes to our Zoning ordinance to permit residential homestays would have on our rate of owner-occupancy? J Council Memorandum Vacation Rentals Study Session Page2 Staff Response The City's rate of owner occupancy could be affected if the ordinance is amended to allow vacation rentals. If the Ordinance requires to owner to reside on the premises there may not be a significant impact on the percentage of owner-occupied housing. That would require some more analysis to develop a more comprehensive picture of any shift the owner/rental makeup of the City. The room rental rate is $ 120 a night; on page SS 1-28, the room rental rate is $ 150 a night. Which is to be used? Staff Response Attachment 4 was prepared by the SLO Hosts group. They will be available at the study session to further explain their proposal. Staff took a conservative estimate and average of TOT revenues for vacation rentals. TOT revenues vary with different factors for the number, occupancy, and room rates. Other issues to consider are an offset to the optimal TOT revenues by the number of people who don't pay the tax and/or do not obtain the necessary approvals. 4. How many secondary units are there in the city? Staff Response The City has issued permits for 31 secondary dwelling units (SDUs) And, related to this, on Attachment 3, the rough sketch of an ordinance amendment provided by SLO Hosts, page SSI-20 in Part l, the definition of "Primary Residence"-- are secondary units included within this definition? In other words, if a homeowner were to rent the secondary unit on his/her property short-term, would this qualify as allowed under this dehnition or one similar to it? What about the vice versa, if a homeowner were to rent out the home short-term and live in the secondary unit? Staff Response The draft ordinance and definitions in'Attachment 3 were prepared by SLO Hosts. However, SDUs are not intended for short-term rental purposes. SDUs are pennanent, independent housing intended for low-income, moderaté-income, and elderly household on a long-term basis (Municipal Code 17.21.010). They are intended to provide livable housing at lower cost while providing greater security, companionship, and family support for the occupants. Either the primary dwelling or the SDU must be owner-occupied as the owner's primary residence. The owner could live in the SDU and rent out the primary home on a short-term basis if the Ordinance is changed to allow such. Further related, if a primary homeowner could rent short-term a secondary unit while living in the primary home under a homestay-type ordinance, do you have a ballpark estimate about what would be the average rental price? 5 6. Council Memorandum Vacation Rentals Study Session Page 3 Staff Response The owner could not rent out a secondary dwelling unit for short-term rentals. SDUs are permanent, independent housing intended for low-income, moderate-income, and elderly household on a long-term basis (Municipal Code 17.21.010). Please call Doug Davidson at extension#7177 (781-7177) if you have any questions.