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HomeMy WebLinkAbout10/19/2016 - STAFF REPORTS - 1.C.DATE: October 19, 2016 City Council Staff Report CONSENT CALENDAR SUBJECT: SECOND READING AND ADOPTION OF ORDINANCE NO. 1902 AMENDING THE PALM SPRINGS MUNICIPAL CODE PROHIBITING THE RENTAL OF APARTMENTS AS VACATION RENTALS FROM: David H. Ready, City Manager BY: Office of the City Clerk SUMMARY: The City Council will consider adoption of Ordinance No. 1902. RECOMMENDATION: Waive the second reading of the ordinance text in its entirety and adopt Ordinance No. 1902, "AN ORDINANCE OF THE CITY OF PALM SPRINGS, CALIFORNIA, AMENDING SECTIONS 5.25.020 AND 5.25.030 OF, AND ADDING SECTION 5.25.075 TO, THE PALM SPRINGS MUNICIPAL CODE PROHIBITING THE RENTAL OF APARTMENTS AS VACATION RENTALS." STAFF ANALYSIS: On October 5, 2016, Ordinance No. 1902 was introduced for first reading, as noted below: 3.B. PROPOSED ORDINANCE PROHIBITING THE RENTAL OF APARTMENTS AS VACATION RENTALS AND AMENDING THE PALM SPRINGS MUNICIPAL CODE: ACTION: 1) Waive the reading of the ordinance text in its entirety and read by title only. 2) Introduce on first reading Ordinance No. 1902, "AN ORDINANCE OF THE CITY OF PALM SPRINGS, CALIFORNIA, AMENDING SECTIONS 5.25.020 AND 5.25.030 OF, AND ADDING SECTION 5.25.075 TO, THE PALM SPRINGS MUNICIPAL CODE ITEM NO. 1L ADOPTION OF ORDINANCE NO. 1902 October 19, 2016 Page 2 of 2 PROHIBITING THE RENTAL OF APARTMENTS AS VACATION RENTALS," amending the ordinance as follows: a) modify "affordable housing" to "housing that is affordable, " b) amending the definition of apartment to allow the rental of a duplex insofar as the owner resides in the duplex, c) adding a Section to the ordinance regarding life safety requirements for existing properties; and d) amending the sunset date to January 1, 2019. Motion Councilmember Kors, seconded by Councilmember Roberts and unanimously carried 4-0 on a roll call vote. AYES: Councilmember Foat, Councilmember Kors, Councilmember Roberts, and Mayor Moon. NOES: None. ABSENT: Mayor Pro Tem Mills. This report provides for the City Council to waive further reading and adopt the ordinance. The ordinance shall be effective 30-days from adoption. /J es Thompson David H. Ready, Esq., P City Clerk City Manager /kdh Attachments: Ordinance No. 1902 02 ORDINANCE NO. 1902 AN ORDINANCE OF THE CITY OF PALM SPRINGS, CALIFORNIA, AMENDING SECTIONS 5.25.020 AND 5.25.030 OF, AND ADDING SECTION 5.25.075 TO, THE PALM SPRINGS MUNICIPAL CODE PROHIBITING THE RENTAL OF APARTMENTS AS VACATION RENTALS City Attorney Summary This Ordinance amends the City's Vacation Rental ordinance to prohibit the conversion of apartments (as defined) to vacation rentals in the City. Any vacation rental certificate issued prior to April 15, 2016 shall remain in effect and may be extended through January 1, 2018 2019 and such certificate shall terminate and any vacation rental use of any apartment unit covered by such certificate shall cease. The City Council of the City of Palm Springs finds: A. The City Council of the City of Palm Springs has adopted a Land Use Element and a Housing Element of its General Plan. The Land Use Element sets forth policies and goals toward the protection of land use planning that is protective of the social impacts of land uses and the Housing Element sets forth the City's policies and goals towards providing a supply and range of housing opportunities throughout the City. B. The City Council has expressed concern regarding the potentially adverse impacts that the conversion of rental apartment units to vacation rental uses may have on the City's rental housing stock and resident socio-economic population mix. C. There is a current and immediate threat to the public health, safety, and welfare because conversions of apartment units to vacation rentals could displace apartment residents and drive these residents out of Palm Springs, eroding the City's resident socio-economic population mix but also adversely impact City business that rely on residents in that mix as a valuable employee pool. D. The City Council specifically finds there is -a reasonable relationship between the conversion of apartment units to vacation rentals and the diminution in the supply of affordi;Wn housina that is affordable and thereby creating undue hardships for residents displaced by the conversion to vacation rentals and will otherwise adversely affect the availability and cost of a#eFdable housing throughout the City. E. The purpose of this ordinance is to (1) ensure a reasonable balance in the availability of rental and ownership housing in the City and to maintain opportunities for individual choice in the tenure, type, cost, and location of housing; (2) maintain an adequate supply of housing; and (3) avoid displacement of and undue hardship to residents of the City who may be required to move from the community due to a 03 Ordinance No. Page 2 shortage of housing caused in part by conversions of apartment units to vacation rentals. F. This Ordinance supersedes and succeeds an interim moratorium ordinance that prohibited the conversion of apartments to vacation rental units and prevented the short term rental of apartments during the period of time the interim moratorium ordinance was in effect; however, any apartment unit included in a vacation rental certificate issued prior to April 15, 2016 was exempted from the interim moratorium. The Council finds that maintaining and continuing this exemption of apartment units subject to vacation rental certificates issued prior to April 15, 2016 until January 1, 2018 will provide a reasonable amortization period to owners of such apartment units within which they may recoup the costs they reasonably invested in each such apartment unit for use as a vacation rental. The City Council of the City of Palm Springs, California, ordains: SECTION 1. Section 5.25.020 of the Palm Springs Municipal Code is amended to read: 5.25.020 Findings. The City Council finds and determines as follows: (a) The use of single-family dwelling units for Vacation Rental lodging purposes provides alternate visitor serving lodging opportunities in the City; however, such uses in certain single-family neighborhoods may have effects that can best be addressed through an appropriate city regulatory program. (b) The establishment of a regulatory program for Vacation Rental lodging will provide an administrative procedure to preserve existing visitor serving opportunities and increase and enhance public access to areas of the City and other visitor destinations. (c) Limiting Vacation Rental lodging to single-family dwelling units and prohibiting Vacation Rental lodging in apartments will preserve and protect residential housing stock in the City. (d) The purpose of this Chapter is to establish regulations for Vacation Rental lodging within single-family residential neighborhoods and the related use of residential property thereby enabling the City to preserve the public health, safety, and welfare. (e) This Chapter is not intended to regulate hotels, motels, inns, time-share units, or non -vacation type rental arrangements including, but not limited to, lodging houses, rooming houses, convalescent homes, rest homes, halfway homes, or rehabilitation homes. 04 Ordinance No. _ Page 3 SECTION 2. Section 5.25.030 of the Palm Springs Municipal Code is amended to add the following definitions and amend the definition of "Vacation Rental:" "Apartment" means (tea residential unit in a multi -family development of two (2) dwellino units where both or more dwelling units where eRe or more wnit6 isare rented or leased for occupancy as a residence for one individual or —families, and (b) a residential unit in a multi -family development of three (3) or more dwellina units.y "Single-family dwelling" means a detached building designed primarily for the use of a single family and no portion which is to be rented out separately. "Vacation Rental" means a single-family dwelling, or any portion thereof, rented for occupancy for dwelling, lodging, or sleeping purposes for a period of twenty-eight consecutive days or less, other than ongoing month -to -month tenancy granted to the same renter for the same unit, occupancy of a time-share basis, or a condominium hotel as defined in Section 91.00.10 of this Code. SECTION 3. Section 5.25.075 is added to the Palm Springs Municipal Code to read: 5.25.075 Specific Prohibitions. (a) No person or entity shall offer or provide an Apartment, or any portion thereof, for rent for 28 consecutive days or less to any person. (b) No person or entity shall maintain any advertisement of a rental that is in violation of any provision of Chapter 5.25 of this Code. (c) No person, including without limitation, an apartment owner, an apartment manager, or a representative of the apartment owner or manager, shall evict any tenant or otherwise terminate a lease for the purpose of converting an apartment to a vacation rental or in anticipation of converting an apartment to a vacation rental. In addition to any other remedy provided under the Palm Springs Municipal Code, failure to comply with this provision may be asserted as an affirmative defense in an action brought by or on behalf of the apartment owner, apartment manager, or representative to recover possession of the unit. Any attempt to recover possession of a unit in violation of this Ordinance shall render the apartment owner, apartment manager, or representative liable to the tenant for actual or punitive damages, including damages for emotional distress, in a civil action for wrongful eviction. The tenant may seek injunctive relief and money damages for wrongful eviction and the prevailing party in an action for wrongful eviction shall recover costs and reasonable attorneys' fees. (d) The provisions of subsection (a) of this Section shall not apply to or be enforced against any person or entity who rents an apartment or portion thereof pursuant to a valid vacation rental certificate issued prior to April 15, 2016 for the period of time between April 15, 2016 through January 1, 20139. The purpose of this deferral of the enforcement of the provisions of this Section for persons or entities issued valid vacation rental certificates prior to April 15, 2016. 05 Ordinance No Page 4 (e) The provisions of subsection (a) of this Section shall also not aDDly to anv building in which an aoartment is located that meets all requirements of an R-1 occuDancv under the Citv's building and fire code. SECTION 4. Subsection (d) of Section 5.25.075 shall be deemed repealed and no longer in effect as of 12:01 am on January 2, 2018 and all persons and entities shall fully comply with the provisions of Subsection (a) of Section 5.25.075 of this Code. SECTION 5. In the event any term or provision of this Ordinance is to any extent invalid or incapable of being enforced, such term or provision shall be excluded to the extent such invalidity, illegality, or unenforceability and all other terms and provisions shall remain in full force and effect. SECTION 6. The Mayor shall sign and the City Clerk shall certify to the passage and adoption of this Ordinance and shall cause the same, or the summary thereof, to be published and posted pursuant to the provisions of law and this Ordinance shall take effect thirty (30) days after passage. PASSED, APPROVED, AND ADOPTED BY THE PALM SPRINGS CITY COUNCIL THIS DAY OF 2016. ROBERT MOON, MAYOR ATTEST: JAMES THOMPSON, CITY CLERK 06 Ordinance No. _ Page 5 CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss. CITY OF PALM SPRINGS) I, JAMES THOMPSON, City Clerk of the City of Palm Springs, hereby certify that Ordinance No. is a full, true and correct copy, and was introduced at a regular meeting of the Palm Springs City Council on the _ day of , 2016, and adopted at a regular meeting of the City Council held on the day of , 2016, by the following vote: AYES: NOES: ABSENT: ABSTAIN: JAMES THOMPSON, CITY CLERK City of Palm Springs, California 07 Cindy Berardi From: Alan Billingsley <alanbill@pacbell.net> Sent: Thursday, October 13, 2016 1:26 PM To: JR Roberts; Chris Mills; Ginny Foat; Robert Moon; CityClerk Subject: Vacation Rentals The restrictions on short term rental of multi family units seems to be a solution in search of a problem. My partner and I own 4 condo units in PS which are already prohibited from short term rentals by HOA restrictions. These nice but older units rent at very reasonable prices ($1200 for large 2 Bdrm) and it usually takes a few months to rent on turnover. PS always has a large inventory of apartments on the market. Apartment leases almost always have a no sublease clause. So the only short term rentals are likely to be a found in a handful of buildings where the owners place a few units on the short term market. They should be allowed to do so given the excess inventory of long term rentals. Alan Billingsley alanbill(c pacbell.net 93 ORDINANCE NO. 1902— - -- AN ORDINANCE OF THE CITY OF PALM SPRINGS, CALIFORNIA, AMENDING SECTIONS 5.25.020 AND 5.25.030 OF, AND ADDING SECTION 5.25.075 TO, THE PALM SPRINGS MUNICIPAL CODE PROHIBITING THE RENTAL OF APARTMENTS AS VACATION RENTALS City Attomey Summary This Ordinance amends the City's Vacation Rental ordinance to prohibit the conversion of apartments (as defined) to vacation rentals in the City. Any vacation rental certificate issued prior to April 15, 2016 shall remain in effect and may be extended through January 1, 2018 2019 and such certificate shall terminate and any vacation rental use of any apartment unit covered by such certificate shall cease. The City Council of the City of Palm Springs finds: A. The City Council of the City of Palm Springs has adopted a Land Use Element and a Housing Element of its General Plan. The Land Use Element sets forth policies and goals toward the protection of land use planning that is protective of the social impacts of land uses and the Housing Element sets forth the City's policies and goals towards providing a supply and range of housing opportunities throughout the City. B. The City Council has expressed concern regarding the potentially adverse impacts that the conversion of rental apartment units to vacation rental uses may have on the City's rental housing stock and resident socio-economic population mix. C. There is a current and immediate threat to the public health, safety, and welfare because conversions of apartment units to vacation rentals could displace apartment residents and drive these residents out of Palm Springs, eroding the City's resident socio-economic population mix but also adversely impact City business that rely on residents in that mix as a valuable employee pool. D. The City Council specifically finds there is -a reasonable relationship between the conversion of apartment units to vacation rentals and the diminution in the supply of afferdable housing that is affordable and thereby creating undue hardships for residents displaced by the conversion to vacation rentals and will otherwise adversely affect the availability and cost of affordable housing throughout the City. E. The purpose of this ordinance is to (1) ensure a reasonable balance in the availability of rental and ownership housing in the City and to maintain opportunities for individual choice in the tenure, type, cost, and location of housing; (2) maintain an adequate supply of housing; and (3) avoid displacement of and undue hardship to residents of the City who may be required to move from the community due to a Ordinance No. _ Page 2 shortage of housing caused in part by conversions of apartment units to vacation rentals. F. This Ordinance supersedes and succeeds an interim moratorium ordinance that prohibited the conversion of apartments to vacation rental units and prevented the short term rental of apartments during the period of time the interim moratorium ordinance was in effect; however, any apartment unit included in a vacation rental certificate issued prior to April 15, 2016 was exempted from the interim moratorium. The Council finds that maintaining and continuing this exemption of apartment units subject to vacation rental certificates issued prior to April 15, 2016 until January 1, 2019 2019 will provide a reasonable amortization period to owners of such apartment units within which they may recoup the costs they reasonably invested in each such apartment unit for use as a vacation rental. The City Council of the City of Palm Springs, California, ordains: SECTION 1. Section 5.25.020 of the Palm Springs Municipal Code is amended to read 5.25.020 Findings. The City Council finds and determines as follows: (a) The use of single-family dwelling units for Vacation Rental lodging purposes provides alternate visitor serving lodging opportunities in the City; however, such uses in certain single-family neighborhoods may have effects that can best be addressed through an appropriate city regulatory program. (b) The establishment of a regulatory program for Vacation Rental lodging will provide an administrative procedure to preserve existing visitor serving opportunities and increase and enhance public access to areas of the City and other visitor destinations. (c) Limiting Vacation Rental lodging to single-family dwelling units and prohibiting Vacation Rental lodging in apartments will preserve and protect residential housing stock in the City. (d) The purpose of this Chapter is to establish regulations for Vacation Rental lodging within single-family residential neighborhoods and the related use of residential property thereby enabling the City to preserve the public health, safety, and welfare. (e) This Chapter is not intended to regulate hotels, motels, inns, time-share units, or non -vacation type rental arrangements including, but not limited to, lodging houses, rooming houses, convalescent homes, rest homes, halfway homes, or rehabilitation homes. Ordinance No. _ Page 3 SECTION 2. Section 5.25.030 of the Palm Springs Municipal Code is amended to add the following definitions and amend the definition of "Vacation Rental:" "Apartment" means (a) a residential unit in a multi -family development of two (2) dwelling units where both OF more dwelling units where one or rnore units 'bare rented or leased for occupancy as a residence for Ore individual or —families, and (b) a residential unit in a multi-familv development of three (3) or more dwelling units.v- "Single-family dwelling" means a detached building designed primarily for the use of a single family and no portion which is to be rented out separately. "Vacation Rental" means a single-family dwelling, or any portion thereof, rented for occupancy for dwelling, lodging, or sleeping purposes for a period of twenty-eight consecutive days or less, other than ongoing month -to -month tenancy granted to the same renter for the same unit, occupancy of a time-share basis, or a condominium hotel as defined in Section 91.00.10 of this Code. SECTION 3. Section 5.25.075 is added to the Palm Springs Municipal Code to read: 5.25.075 Specific Prohibitions. (a) No person or entity shall offer or provide an Apartment, or any portion thereof, for rent for 28 consecutive days or less to any person. (b) No person or entity shall maintain any advertisement of a rental that is in violation of any provision of Chapter 5.25 of this Code. (c) No person, including without limitation, an apartment owner, an apartment manager, or a representative of the apartment owner or manager, shall evict any tenant or otherwise terminate a lease for the purpose of converting an apartment to a vacation rental or in anticipation of converting an apartment to a vacation rental. In addition to any other remedy provided under the Palm Springs Municipal Code, failure to comply with this provision may be asserted as an affirmative defense in an action brought by or on behalf of the apartment owner, apartment manager, or representative to recover possession of the unit. Any attempt to recover possession of a unit in violation of this Ordinance shall render the apartment owner, apartment manager, or representative liable to the tenant for actual or punitive damages, including damages for emotional distress, in a civil action for wrongful eviction. The tenant may seek injunctive relief and money damages for wrongful eviction and the prevailing party in an action for wrongful eviction shall recover costs and reasonable attorneys' fees. (d) The provisions of subsection (a) of this Section shall not apply to or be enforced against any person or entity who rents an apartment or portion thereof pursuant to a valid vacation rental certificate issued prior to April 15, 2016 for the period of time between April 15, 2016 through January 1, 20189. The purpose of this deferral of the enforcement of the provisions of this Section is for persons or entities issued valid vacation rental certificates prior to April 15. 2016. Ordinance No. _ Page 4 (e) The provisions of subsection (a) of this Section shall also not aooly to anv buildina in which an apartment is located that meets all reauirements of an R-1 occuDancv under the Citv's buildina and fire code and for which such apartment has a valid vacation rental permit issued prior to April 15, 2016. SECTION 4. Subsection (d) of Section 5.25.075 shall be deemed repealed and no longer in effect as of 12:01 am on January 2, 2018 and all persons and entities shall fully comply with the provisions of Subsection (a) of Section 5.25.075 of this Code. SECTION 5. In the event any term or provision of this Ordinance is to any extent invalid or incapable of being enforced, such term or provision shall be excluded to the extent such invalidity, illegality, or unenforceability and all other terms and provisions shall remain in full force and effect. SECTION 6. The Mayor shall sign and the City Clerk shall certify to the passage and adoption of this Ordinance and shall cause the same, or the summary thereof, to be published and posted pursuant to the provisions of law and this Ordinance shall take effect thirty (30) days after passage. PASSED, APPROVED, AND ADOPTED BY THE PALM SPRINGS CITY COUNCIL THIS DAY OF 2016. ROBERT MOON, MAYOR ATTEST: JAMES THOMPSON, CITY CLERK Ordinance No. _ Page 5 CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss. CITY OF PALM SPRINGS) I, JAMES THOMPSON, City Clerk of the City of Palm Springs, hereby certify that Ordinance No. is a full, true and correct copy, and was introduced at a regular meeting of the Palm Springs City Council on the _ day of , 2016, and adopted at a regular meeting of the City Council held on the day of , 2016, by the following vote: AYES: NOES: ABSENT: ABSTAIN: JAMES THOMPSON, CITY CLERK City of Palm Springs, California T H E D E S E R T C O L L E C T I V E The Desert Collective 1101 North Palm Canyon Dr Palm Springs CA 92262 October 19th, 2016 Mr. Jay Thompson, City Clerk City of Palm Springs 3200 E Tahquitz Canyon Way Palm Springs CA 92262 To the Mayor, Members of the City Council and City Staff, Item 1: We would like to suggestthat the City place a hold on this ordinance and have staff review our suggested solution which is to apply an R3 overlay to those properties currently permitted and operating short term vacation rentals of apartments. R3 is multiple family residential and hotel zone. This will take care of a number of everyone's concerns and fulfill the intentions you announced at your last hearing. Item 2: If you choose to proceed with the ordinance, Councilperson Kors was very clear that the existing apartment complexes would not have to go through the hurdles of actual conversion to a hotel, i.e., a CUP, no change in title, permits, costs to "convert" to a hotel, but rather would have to comply with health, safety and fire codes, like small hotels, by January 1, 2019. To us, that means exactly that: and if we, the existing permitted short term rental apartment complexes, "comply" with such codes by Jan. 2019, then we may continue to operate PAST the January 2019 sunset date, i.e., we are essentially grandfathered in. We request that you confirm this tonight during your discussion and direct staff to amend the ordinance to include express provisions that these properties will be considered "grandfathered" if they I ., 6. 4 comply with the same Codes as small hotels, and that upon sale, the buyer may continue to operate in the same manner. As we all know, people interpret documents differently, and we want future councils and/or future staff taking a different read on the ordinance. Item 3: As amended, the Ordinance will not allow us to operate after January 1, 2019. In Section 5.25.075 (d), it states that the restrictions as to apartments shall not apply to or be enforced against us for the period of time from April 15, 2016 through January 1, 2019. Meaning, what happens after January 1, 2019? Items 4: Subsection (e) states that the apartment restriction shall not apply to any building in which an apartment is located that meets all requirements of an R-1 occupancy under the city's building and fire code. Is this the subsection you intend to ensure we are excluded us from the ban against apartments? Meaning if we comply with certain code requirements for R-1 occupancy, then the apartment ban does not apply to us at all, regardless of the time frame? If so, is it correct that we comply with R-1 codes or codes like small hotels have to comply with? We believe this is ambiguous and request clarification and direction as to exactly which codes we must comply with. Municipal Code section 92.04.01 which governs the uses of R-1 zoned properties, does not allow the use of a hotel even with a CUP. So how does us complying with R-1 codes effectuate your goal that we comply with codes like the small hotels have to? Small hotels are not allowed in R1 zones. Item 5: If any of us do wish to convertto a hotel, and such a hotel use is allowed within our zone (be it R2, R3, C1, etc.), the Municipal Code expressly states that we can use our property as a hotel in those zones "provided that no more than ten (10) percent of the guest rooms contain kitchen facilities." I spoke to this issue at your last meeting and it was assured that it was NOT your intention to require us to have to remove kitchens. The ordinance is silent on the issue and so again, we seek clarification and an express provision in the ordinance addressing this issue. In closing, we believe that the ordinance should be rewritten and expressly address all of these issues, rather than be silent on them, thus leaving room for different and varying interpretations in the future by staff, council and property owners. Thank you. Si Jaime Kowal CITY OF PALM SPRINGS NOTIFICATION a City Council Meeting Date: October 19, 2016 Subject: Ordinance No. 1902 AFFIDAVIT OF PUBLICATION I, Kathleen D. Hart, Chief Deputy City Clerk, of the City of Palm Springs, California, do hereby certify that a copy of the attached Ordinance Summary was published in the Desert Sun on October 29, 2016. I declare under penalty of perjury that the foregoing is true and correct. Kathleen D. Hart, MMC Chief Deputy City Clerk AFFIDAVIT OF POSTING I, Kathleen D. Hart, Chief Deputy City Clerk, of the City of Palm Springs, California, do hereby certify that a copy of the attached Ordinance Summary and Ordinance was posted at City Hall, 3200 E. Tahquitz Canyon Drive, on the exterior legal notice posting board and in the Office of the City Clerk on October 26, 2016. I declare under penalty of perjury that the foregoing is true and correct. Kathleen D. Hart, MMC Chief Deputy City Clerk The Desert sun 750 N Gene Autry Trail Palm Springs, CA 92262 760-778-4578 / Fax 760-778-4731 State Of California ss: County of Riverside Certificate of Publication Advertiser: CITY OF PALM SPRINGS/LEGALS PO BOX 2743 PALM SPRINGS CA 92263 Order# 0001694539 I am over the age of 18 years old, a citizen of the United States and not a party to, or have interest in this matter. I hereby certify that the attached advertisement appeared in said newspaper (set in type not smaller than non panel) in each and entire issue of said newspaper and not in any supplement thereof on the following dates, to wit: Newspaper' The Desert Sun 10/29/2016 I acknowledge that I am a principal clerk of the printer of The Desert Sun, printed and published weekly in the City of Palm Springs, County of Riverside, State of California. The Desert Sun was adjudicated a Newspaper of general circulation on March 24, 1988 by the Superior Court of the County of Riverside, State of California Case No. 191236. I declare under penalty of perjury that the foregoing is true and correct. Executed on this 29th day TOBER, 2016 in Palm Springs, Cal' mia./, U RECEIVED -ITY OF PALM SPRIN"' 2116 NOV -7 AM 9: 29 JAMES THOMFSCi, CITY CLERK 1v *V6 � L. ORDINANCE NO. 1902 AN ORDINANCE OF THE CITY OF PALM SPRINGS, CALIFORNIA, AMENDING SECTIONS 5.25.020 AND 5.25.030 OF, AND ADDING SECTION 5.25.075 TO, THE PALM SPRINGS MUNICIPAL CODE PROHIBITING THE RENTAL OF APARTMENTS AS VACATION RENTALS. City Attorney Summary This Ordinance amends the City's Vacation Rental ordinance to prohibit the conversion of apartments (as defined) to vacation rentals in the City. Any vacation rental certificate issued prior to April 15, 2016, shall remain in effect and may be extended through January 1, 2019, and such certificate shall terminate and any vacation rental use of any apartment unit covered by such certificate shall cease. CERTIFICATION I, JAMES THOMPSON, City Clerk of the City of Palm Springs, hereby certify that Ordinance No. 1902 is a full, true and correct coy, and was introduced at a regular meeting of the Palm Springs City Council on the 5 " day of October, 2016, and adopted at a regular meeting of the City Council held on the 19T" day of October, 2016, by the following vote: AYES: Councilmember Foat, Councilmember Kors, Councilmember Roberts, and Mayor Moon. NOES: None. ABSENT: None. ABSTAIN: Mayor Pro Tern Mills. /l�1vlES THOMPSON, CITY CLERK (/City of Palm Springs, California ORDINANCE NO. 1902 AN ORDINANCE OF THE CITY OF PALM SPRINGS, CALIFORNIA, AMENDING SECTIONS 5.25.020 AND 5.25.030 OF, AND ADDING SECTION 5.25.075 TO, THE PALM SPRINGS MUNICIPAL CODE PROHIBITING THE RENTAL OF APARTMENTS AS VACATION RENTALS. City Attorney Summary This Ordinance amends the City's Vacation Rental ordinance to prohibit the conversion of apartments (as defined) to vacation rentals in the City. Any vacation rental certificate issued prior to April 15, 2016 shall remain in effect and may be extended through January 1, 2019 and such certificate shall terminate and any vacation rental use of any apartment unit covered by such certificate shall cease. THE CITY COUNCIL OF THE CITY OF PALM SPRINGS FINDS: A. The City Council of the City of Palm Springs has adopted a Land Use Element and a Housing Element of its General Plan. The Land Use Element sets forth policies and goals toward the protection of land use planning that is protective of the social impacts of land uses and the Housing Element sets forth the City's policies and goals towards providing a supply and range of housing opportunities throughout the City. B. The City Council has expressed concern regarding the potentially adverse impacts that the conversion of rental apartment units to vacation rental uses may have on the City's rental housing stock and resident socio-economic population mix. C. There is a current and immediate threat to the public health, safety, and welfare because conversions of apartment units to vacation rentals could displace apartment residents and drive these residents out of Palm Springs, eroding the City's resident socio-economic population mix but also adversely impact City business that rely on residents in that mix as a valuable employee pool. D. The City Council specifically finds there is a reasonable relationship between the conversion of apartment units to vacation rentals and the diminution in the supply of housing that is affordable and thereby creating undue hardships for residents displaced by the conversion to vacation rentals and will otherwise adversely affect the availability and cost of housing throughout the City. E. The purpose of this ordinance is to (1) ensure a reasonable balance in the availability of rental and ownership housing in the City and to maintain opportunities for individual choice in the tenure, type, cost, and location of housing; (2) maintain an adequate supply of housing; and (3) avoid displacement of and undue hardship to residents of the City who may be required to move from the community due to a shortage of housing caused in part by conversions of apartment units to vacation rentals. Ordinance No. 1902 Page 2 F. This Ordinance supersedes and succeeds an interim moratorium ordinance that prohibited the conversion of apartments to vacation rental units and prevented the short term rental of apartments during the period of time the interim moratorium ordinance was in effect; however, any apartment unit included in a vacation rental certificate issued prior to April 15, 2016 was exempted from the interim moratorium. The Council finds that maintaining and continuing this exemption of apartment units subject to vacation rental certificates issued prior to April 15, 2016 until January 1, 2019 will provide a reasonable amortization period to owners of such apartment units within which they may recoup the costs they reasonably invested in each such apartment unit for use as a vacation rental. THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, ORDAINS: SECTION 1. Section 5.25.020 of the Palm Springs Municipal Code is amended to read: 5.25.020 Findings. THE CITY COUNCIL FINDS AND DETERMINES AS FOLLOWS: (a) The use of single-family dwelling units for Vacation Rental lodging purposes provides alternate visitor serving lodging opportunities in the City; however, such uses in certain single-family neighborhoods may have effects that can best be addressed through an appropriate city regulatory program. (b) The establishment of a regulatory program for Vacation Rental lodging will provide an administrative procedure to preserve existing visitor serving opportunities and increase and enhance public access to areas of the City and other visitor destinations. (c) Limiting Vacation Rental lodging to single-family dwelling units and prohibiting Vacation Rental lodging in apartments will preserve and protect residential housing stock in the City. (d) The purpose of this Chapter is to establish regulations for Vacation Rental lodging within single-family residential neighborhoods and the related use of residential property thereby enabling the City to preserve the public health, safety, and welfare. (e) This Chapter is not intended to regulate hotels, motels, inns, time-share units, or non -vacation type rental arrangements including, but not limited to, lodging houses, rooming houses, convalescent homes, rest homes, halfway homes, or rehabilitation homes. SECTION 2. Section 5.25.030 of the Palm Springs Municipal Code is amended to add the following definitions and amend the definition of "Vacation Rental:" Ordinance No. 1902 Page 3 "Apartment" means (a) a residential unit in a multi -family development of two (2) dwelling units where both dwelling units are rented or leased for occupancy as a residence for individual families, and (b) a residential unit in a multi -family development of three (3) or more dwelling units. "Single-family dwelling" means a detached building designed primarily for the use of a single family and no portion which is to be rented out separately. "Vacation Rental" means a single-family dwelling, or any portion thereof, rented for occupancy for dwelling, lodging, or sleeping purposes for a period of twenty-eight consecutive days or less, other than ongoing month -to -month tenancy granted to the same renter for the same unit, occupancy of a time-share basis, or a condominium hotel as defined in Section 91.00.10 of this Code. SECTION 3. Section 5.25.075 is added to the Palm Springs Municipal Code to read: 5.25.075 Specific Prohibitions. (a) No person or entity shall offer or provide an Apartment, or any portion thereof, for rent for 28 consecutive days or less to any person. (b) No person or entity shall maintain any advertisement of a rental that is in violation of any provision of Chapter 5.25 of this Code. (c) No person, including without limitation, an apartment owner, an apartment manager, or a representative of the apartment owner or manager, shall evict any tenant or otherwise terminate a lease for the purpose of converting an apartment to a vacation rental or in anticipation of converting an apartment to a vacation rental. In addition to any other remedy provided under the Palm Springs Municipal Code, failure to comply with this provision may be asserted as an affirmative defense in an action brought by or on behalf of the apartment owner, apartment manager, or representative to recover possession of the unit. Any attempt to recover possession of a unit in violation of this Ordinance shall render the apartment owner, apartment manager, or representative liable to the tenant for actual or punitive damages, including damages for emotional distress, in a civil action for wrongful eviction. The tenant may seek injunctive relief and money damages for wrongful eviction and the prevailing party in an action for wrongful eviction shall recover costs and reasonable attorneys' fees. (d) The provisions of subsection (a) of this Section shall not apply to or be enforced against any person or entity who rents an apartment or portion thereof pursuant to a valid vacation rental certificate issued prior to April 15, 2016 for the period of time between April 15, 2016 through January 1, 2019. The purpose of this deferral of the enforcement of the provisions of this Section is for persons or entities issued valid vacation rental certificates prior to April 15, 2016. (e) The provisions of subsection (a) of this Section shall also not apply to any building in which an apartment is located that meets all requirements of an R-1 occupancy under the City's building and fire code and for which such apartment has a valid vacation rental permit issued prior to April 15, 2016. Ordinance No. 1902 Page 4 SECTION 4. Subsection (d) of Section 5.25.075 shall be deemed repealed and no longer in effect as of 12:01 am on January 2, 2018 and all persons and entities shall fully comply with the provisions of Subsection (a) of Section 5.25.075 of this Code. SECTION 5. In the event any term or provision of this Ordinance is to any extent invalid or incapable of being enforced, such term or provision shall be excluded to the extent such invalidity, illegality, or unenforceability and all other terms and provisions shall remain in full force and effect. SECTION 6. The Mayor shall sign and the City Clerk shall certify to the passage and adoption of this Ordinance and shall cause the same, or the summary thereof, to be published and posted pursuant to the provisions of law and this Ordinance shall take effect thirty (30) days after passage. PASSED, APPROVED, AND ADOPTED BY THE PALM SPRINGS CITY COUNCIL THIS 1gth DAY OF OCTOBER, 2016. ROBERT MOON, MAYOR ATTEST: JAMES THOMPSON, CITY CLERK Ordinance No. 1902 Page 5 CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss. CITY OF PALM SPRINGS) I, JAMES THOMPSON, City Clerk of the City of Palm Springs, hereby certify that Ordinance No. 1902 is a full, true and correct coy, and was introduced at a regular meeting of the Palm Springs City Council on the 5 " day of October, 2016, and adopted at a regular meeting of the City Council held on the 19T" day of October, 2016, by the following vote: AYES: Councilmember Foat, Councilmember Kors, Councilmember Roberts, and Mayor Moon. NOES: None. ABSENT: None. ABSTAIN: Mayor Pro Tern Mills. JAMES THOMPSON, CITY CLERK City of Palm Springs, California