TITLE
Recommendation to request City Manager to work with City Attorney to review the regulation of short term rentals in other municipalities and report back to the City Council with a review of next steps required to create an ordinance, along with zoning code changes, and a timeline for these next steps in 30-60 days.
The findings in the report would explore options for an ordinance that would include, but are not limited to:
• Estimated total number of STR's and Transient Occupancy
Tax revenue potential.
• The requirements set forth in LBMC 21.51.270, including
the requirement that the owner must live in the unit, and
explore other types of residencies such as back yard
homes.
• The entire unit/home may be rented for a total of
90 nonconsecutive days per year.
• A cost-recovery fee structure for an annual inspection
of the rental unit and the administration of the regulation
program.
• Transient Occupancy Tax collection on all room rentals
under 30 days.
• Report on how cities have allocated tax revenue from
short-term residential rentals to address the housing crisis.
DISCUSSION
Currently, short-term rentals (STRs) of entire units such as Airbnb, HomeAway, and VRBO are prohibited in Long Beach. There are approximately 1,200 units of this type regularly available in the City of Long Beach, with the majority of units located in the Second Council District. In Long Beach, these range from the occasional rental of a spare bedroom to the permanent rental of multiple units in an apartment building or freestanding homes that can turn into party houses.
The high number of STRs in Long Beach puts pressure on our City's already tight housing market, which currently has a 2% vacancy rate. In some cases, entire rnultifamily units have been completely converted to short-term rentals, which removes vital housing from the market, drives up rent, and pushes families out of Long Beach. Neighborhoods are also negatively impacted as lo...
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