§ 18.60.250 — Short-Term Rentals of Residential Property

A. Purpose. The purpose of this Section is to allow limited short-term rental of residential property, which are rentals of 30 days or less in length while preserving housing stock and the residential character of neighborhoods, through the use of registration, regulations, and standards, in order to reduce potential impacts on adjacent properties and to ensure the collection of Transient Occupancy Taxes under SCCC Chapter 3.25. B. Violation of Section. No person shall host or rent any residence in violation of the provisions of this Section. C. Operating Standards for Short-Term Rentals. The following operating standards shall apply to all short-term rentals: 1. Legal Dwelling. Short-term rentals are allowed only within legal conforming and legal nonconforming residential dwelling units. 2. Annual Limit. a. Where the host is present within the unit, the dwelling unit may be occupied as a short-term rental for an unlimited number of days per calendar year. b. Where a host is not present (unhosted), the dwelling unit may be occupied as a short-term rental no more than 90 days per calendar year in the aggregate. c. For purposes of this section, Accessory Dwelling Units are considered hosted if the primary unit is owner-occupied. 3. Local Contact Person. For short-term rentals, hosts shall provide the City, all short-term renters and all occupants of adjacent properties, the name and contact information of a local individual who shall be available 24 hours per day, seven days per week, during the term of the stay. The host or designated local contact person shall: a. Respond on-site within 60 minutes to complaints regarding a condition or operation of the short-term rental or the conduct of the short-term renters; and b. Take remedial action to resolve any and all complaints. 4. Parking. Parking shall comply with residential parking standards specified in Chapter 18.38 (Off-Street Parking Regulations and Design Standards), but no designated parking is required beyond other City Code requirements. 5. Trash and Recycling. The appropriate level of trash and recycling services shall be maintained so there is no overflow of trash and recycling on the property. 6. Special Events. Weddings, corporate events, commercial functions, large parties, and other similar events which have the potential to cause traffic, parking, noise, or other impacts to the neighborhood are prohibited on the property during short-term rentals. D. Occupancy Limits for Short-Term Rentals. 1. Individual Rooms or Studio Units: Two people 2. One-bedroom Units: Three people 3. All Other Dwelling Units: Two people per bedroom for each bedroom in excess of one bedroom, but not to exceed eight short-term rental occupants, total. E. Registration Application Requirements. Notwithstanding SCCC Section 3.25.080, the following registration requirements shall apply for short-term rentals: 1. Initial Application. Before advertising or use of a short-term rental, the host shall obtain an Administrative Permit for Short-term Rentals from the City and obtain a valid City Business License. 2. Requirements for Application. The registration shall be submitted on a City-approved form. The applicant shall provide the property owner’s signature for the unit to be rented; the name and contact information of the host; the address of the dwelling unit to be used as a short-term rental; a valid City Business License; the anticipated frequency of the short-term rental; contact information for the local contact person; an acknowledgement of compliance with the requirements of the City Code; and other information as requested. Failure to submit all information required on the application will result in denial of the registration. 3. Fee. The host shall pay a registration fee in an amount established by resolution of the Council, and as updated from time to time. Failure to submit the full amount of the required fee will result in the application not being processed. F. Citation, Compliance Order, Denial, Revocation. For a property that is the subject of an active compliance order or civil, criminal, or administrative citation from the City, or denial or revocation of a short-term rental application in the preceding 12 months, registration of the short-term rental on the property will be denied. G. Term of Registration. Registration of a short-term rental shall be on a calendar-year basis. Fees shall be prorated for any approved registration on a quarterly basis. Approved registrations shall be personal to the host, are not assignable or transferable, and shall automatically expire upon sale or transfer of the property on which the short-term rental is located. H. Annual Renewal. 1. A short-term rental registration shall be renewed annually upon payment of registration renewal fees, remittance of all required Transient Occupancy Taxassociated with the short-term rental, proof of a current City Business License, and all registration application requirements specified above. 2. The host shall also submit such information as may be required to enable the Tax Collector to verify the amount of tax paid. 3. Failure to submit for renewal before December 15 of each calendar year will result in expiration of the registration. I. Requirements Not Exclusive. The approval of a short-term rental registration shall not relieve any host of the obligation to comply with all other provisions of the City Code applicable to the use and occupancy of the property. J. Administrative Regulations and Standards. The City Manager or designee is hereby authorized to promulgate administrative rules, regulations, and interpretations to implement this Section. The rules and regulations may include, but are not limited to, revisions to the application process, requirements of operations, etc. K. Transient Occupancy Tax (TOT). 1. Except as otherwise provided in this Subsection, Transient Occupancy Taxesshall be collected for short-term rentals and paid to the City in compliance with SCCC Section 3.25.090. 2. Collection is the responsibility of the host. 3. Notwithstanding SCCC Section 3.25.090, if a hosting platform is used, and the City has a voluntary collection agreement, or equivalent, with that hosting platform, TOT may be collected and remitted directly to the City by the hosting platform. L. Enforcement. 1. Revocation of Registration. A short-term rental registration approved in compliance with this Section may be revoked for any of the following reasons: fraud, misrepresentation, or false statement contained in the application for, or in the operation of, the short-term rental. 2. Other Remedies. In addition to remedies provided in the City Code, a short-term rental registration may be revoked for any violation of any provision of this Section, the City Code or any State or Federal law. M. Applicability to Existing Short-term Rentals. Short-term rentals already operating prior to the effective date of this Section shall fully comply with this Section, including the registration requirements, no later than six months following the effective date of this ordinance. N. Short-term Rentals (Lease-up) of Units in Newly Constructed Multi-family buildings. Notwithstanding Section 18.60.250.C.2.b, Short-term rentals are permitted in up to thirty-five percent (35%) of the units within a multi-family building for up to two years from the issuance of the first Temporary Certificate of Occupancy, subject to a Minor Use Permit. Short-term rentals permitted under this sub-section are considered hosted units, if a property manager is available within the multi-family building. O. Short-term Rentals not Meeting the Requirements of this Section. Short-term rentals not meeting the requirements of this section may be permitted through a Minor Use Permit, approved by the Director.