HomeMy WebLinkAbout969 - Ordinance ORDINANCE NO. 969
AN ORDINANCE OF THE CITY OF RANCHO CUCAMONGA,
STATE OF CALIFORNIA, ADDING CHAPTER 8.34 TO THE
RANCHO CUCAMONGA MUNICIPAL CODE TO ESTABLISH
REGULATIONS FOR SHORT-TERM RENTALS AND AMENDING
THE LAND USE TABLE IN TITLE 17 ACCORDINGLY, MAKING
FINDINGS IN SUPPORT THEREOF, AND MAKING A
DETERMINATION THAT THE ORDINANCE IS EXEMPT FROM
THE CALIFORNIA ENVIRONMENTAL QUALITY ACT
I. Recitals.
A. The City of Rancho Cucamonga ("City") has experienced a significant increase in
the number of residential properties available for short-term rental on internet hosting services,
with approximately 270-320 properties available to rent at any one time.
B. Under the City's permissive zoning ordinance, this type of short-term rental of
residential property is not currently a permitted land use and, with few exceptions, is therefore a
prohibited use in all zoning districts.
C. As a result, many short-term rentals are operated illegally within the City and
advertised on internet hosting services as available for lawful rental, avoiding appropriate
regulation to protect surrounding communities and sometimes avoiding the payment of transient
occupancy tax ("TOT").
D. The City's TOT Ordinance, codified in Chapter 3.40 of the Rancho Cucamonga
Municipal Code, requires payment of transient occupancy taxes by operators of dwellings and
lodgings such as hotels, recreational vehicles, apartment houses, among other structures, which
are occupied for a period of 30 consecutive calendar days or less by transients; and
E. The City has recently experienced a number of legitimate problems caused by
illegally operated short-term rentals, often involving large parties that disrupt surrounding
communities, noise caused by such parties and other late-night activity, and the loss of
neighborhood parking and illegally parked vehicles.
F. In addition, the financial incentive for a property owner to rent out portions of their
homes has caused some property owners to engage in unpermitted construction to create
additional bedrooms. Such construction often goes without review by the City's Building and
Safety Department, violates local codes, and creates safety issues for residents and renters.
G. Nevertheless, the City Council recognizes that short-term rentals are an affordable
way to visit the City,while also providing supplemental income to property owners. When properly
regulated, short-term rentals also provide a source of revenue to the City in the form of TOT.
H. The City Council desires to adopt this Ordinance in order to verify that short-term
rentals are permitted and vetted, made subject to reasonable regulations to prevent secondary
impacts to the surrounding community, and ensure that short-term rentals pay their fair share of
TOT.
Ordinance No. 969— Page 1 of 10
I. On June 10, 2020, the Planning Commission of the City of Rancho Cucamonga
conducted a noticed public hearing with respect to this Ordinance and, following the conclusion
thereof, adopted Resolution No. 20-28, recommending that the City Council of the City of Rancho
Cucamonga adopt this Ordinance.
J. On July 15, 2020, the City Council of the City of Rancho Cucamonga conducted a
noticed public hearing on the Amendment and concluded said hearing on that date.
K. All legal prerequisites prior to the adoption of this Ordinance have occurred.
II. Findings.
A. Based upon all of the evidence presented to the City Council during the above-
referenced public hearing, this City Council hereby finds and concludes that the changes
proposed to Title 8 (Health and Safety) and Title 17 (Development Code) of the Rancho
Cucamonga Municipal Code by this Ordinance are consistent with the General Plan goals,
policies, and implementation programs. General Plan Land Use Policy LU-1.1 encourages the
protection of neighborhoods from the encroachment of incompatible activities or land uses that
may have a negative impact on the residential living environment. Permitting and regulating the
residential short-term rentals within established residential neighborhoods will reduce potential
secondary impacts created by such short-term rentals. General Plan Public Safety Goals PS-4
encourages a high-level of public safety services throughout the City, which can be relied upon
to work with short-term rental hosts to promote safety and reduce nuisance activity in residential
neighborhoods.
B. The Planning Department staff has determined that this Ordinance is exempt from
the requirements of the California Environmental Quality Act (CEQA) and the City's CEQA
Guidelines. The project qualifies under the general rule that CEQA applies only to projects, which
have the potential for causing significant effects on the environment. Pursuant to State CEQA
Guidelines Section 15061(B)(3), where it can be seen with certainty that there is no possibility
that the activity in question may have significant effect on the environment, the activity is not
subject to CEQA. The Ordinance does not propose any physical change to the environment itself.
The Ordinance establishes the permitted zoning districts where an existing single-family dwelling
unit, designed for overnight occupancy, can be used as a short-term rental with the approval of a
short-term rental permit. The Ordinance does not eliminate the need for future entitlements for
development that may have an environmental impact under CEQA. Based on this evidence and
all of the evidence in the record, the City Council concurs with the Planning Department staff's
determination that the Ordinance will not have a significant effect on the environment and is
therefore exempt from further environmental review under CEQA.
III. Ordinance.
The City Council of the City of Rancho Cucamonga does ordain as follows:
SECTION 1. A new land use entitled "Short-Term Rental" in Table 17.30.030-
1 (Allowed Land Uses and Permit Requirements) of Chapter 17.30 (Allowed Land Use
by Base Zoning District) shall be modified as follows:
Ordinance No. 969— Page 2 of 10
Land
Use/Zoning VL L LM M MH H MU OP NC GC CC SC RRC CO IP GI MI/HI' HI OS HR FC UC
District
Short-Term P P P P P P P P P N N P P P P N P N P P P P
Rental(16)
(16) A short-term rental must be a single family residence in zoning districts other than VL,L,and LM. See additional regulations for short-term rentals
in Chapter 8.34.
SECTION 2. A new land use definition for "Short-Term Rental" shall be added to
Section 17.32.020.A of Chapter 17.32 (Allowed Use Descriptions), at an appropriate alphabetical
location, to read as follows:
"Short-Term Rental. A short-term rental is a dwelling unit, or any portion thereof, that is rented by
the host to another party for a period of not more than thirty (30) consecutive days in exchange
for any form of monetary or non-monetary consideration, including trade, fee, swap or any other
consideration in lieu of cash payment. Hosted stays, Un-hosted stays, and vacation rentals are
types of short-term rental. Related definitions are available in section 8.34.010."
SECTION 3. A new Chapter 8.34(Short-Term Rentals)of Title 8 (Health and Safety)
of the Rancho Cucamonga Municipal Code is hereby added to read as follows:
"CHAPTER 8.34 SHORT-TERM RENTALS
Section 8.34.010 Definitions.
Section 8.34.020 Permit Required for Authorized Short-Term Rental.
Section 8.34.030 Permit Application.
Section 8.34.040 Application Investigation and Criteria for Approval or Denial of
Permit.
Section 8.34.050 Permit Expiration and Renewal.
Section 8.34.060 Permit Revocation.
Section 8.34.070 Appeals.
Section 8.34.080 Permits Nontransferable.
Section 8.34.090 Operating Requirements.
Section 8.34.100 Hosting Platform Requirements.
Section 8.34.110 Enforcement and Penalties.
8.34.010 Definitions.
The following words and phrases, whenever used in this Chapter, shall mean as follows:
BOOKING TRANSACTION means any reservation or payment service provided by a person who
facilitates a short-term rental, home sharing, or similar transaction between a prospective guest
and a host.
DIRECTOR means the Finance Director of the City of Rancho Cucamonga.
Ordinance No. 969— Page 3 of 10
DWELLING UNIT means a structure or portion thereof which is used for human habitation, as
more particularly described in Section 17.126.020.
GUEST means a person who rents a short-term rental for a period of less than 30 days.
GROUP means a single guest or any number of guests who are occupying a short-term rental on
a single rental agreement.
HOST means a person engaged in providing short-term rental at their primary residence.
HOSTED STAY means short-term rental activity whereby the host remains on the site of his or
her primary residence throughout the duration of the guest's stay, expect during daytime and/or
workhours.
HOSTING PLATFORM means a marketplace in whatever form or format which facilitates the
short-term rental activity, through advertising, match-making, or any other means, using any
medium of facilitation, and from which the operator of the hosting platform derives revenues,
including booking fees or advertising revenues, from providing or maintaining the marketplace.
PRIMARY RESIDENCE means the dwelling unit used as the permanent residence or usual place
of return for housing by the host. A person may have only one primary residence.
SHORT-TERM RENTAL means a dwelling unit, or any portion thereof, that is rented by the host
to another party for a period of not more than thirty (30) consecutive days in exchange for any
form of monetary or non-monetary consideration, including trade, fee, swap or any other
consideration in lieu of cash payment. Hosted stays, Un-hosted stays, and vacation rentals are
types of short-term rental.
TRANSIENT OCCUPANCY TAX or"TOT" means the tax imposed on occupancies of thirty (30)
consecutive calendar days or less under Chapter 3.40.
UN-HOSTED STAY means a short-term rental activity whereby the host remains off the site of
his or her primary residence-site for some or all of the duration of the guest's stay.
VACATION RENTAL means a dwelling unit that is not a primary residence, and which is available
for temporary lodging, for compensation or any form of consideration. The term "vacation rental"
shall not include: single-room occupancy buildings, bed and breakfast inns, hotels, a dwelling unit
for which a tenant has a month-to-month rental agreement and the rental payments are made on
a monthly basis, or corporate housing.
8.34.020 Permit Required for Authorized Short-Term Rental.
No person, either for themselves or any other person, shall cause, allow, conduct, permit,
maintain, or facilitate short-term rental at any dwelling unit within the City without first obtaining a
Short-Term Rental Permit pursuant to this Chapter, and complying with all other applicable
provisions of this Code.A Short-Term Rental Permit shall only be issued to authorize hosted stays
and un-hosted stays. Vacation rentals are prohibited.
Ordinance No. 969 — Page 4 of 10
8.34.030 Permit Application.
To apply for a Short-Term Rental Permit, a person seeking to become a host must file an
application with the Director, accompanied by a nonrefundable processing fee in an amount
established by resolution of the City Council. The application shall be in a form prescribed by the
Director and shall contain, at a minimum, the following:
A. The legal name, current address and telephone number of the applicant;
B. Address of the short-term rental property, and if applicable, location telephone number;
C. An index of all residents of the property with name and date of birth, juveniles may be
listed by title and age only;
D. A diagram of the property indicating areas intended for use as short-term rental;
E. Documentation indicating the number of bedrooms within the dwelling unit, such as a
record from the County Assessor's Office;
F. A parking plan indicating sufficient lawful parking on the property for all vehicles belonging
to residents and one additional space for each bedroom of the house to be used for short-
term rental;
G. A copy of a valid business license issued pursuant to Chapter 5.04 of the Rancho
Cucamonga Municipal Code;
H. A copy of a valid transit occupancy registration certificate pursuant to Chapter 3.4 of this
code;
I. A Home Occupation Permit pursuant to Title 17 of this code is not required;
J. Emergency contact information for 24-hour response within 30 minutes;
K. Certification by the applicant that the information contained in the application is true to his
or her knowledge and belief;
L. Documentation establishing that the dwelling unit proposed to be used as a short-term
rental is the host's primary residence. Such documentation shall include at least two of
the following and be in the name of the host: Motor vehicle registration, driver's license,
voter registration, or tax documents showing the residential unit as the residence of the
host;
M. Two passport size photographs of the applicant; and,
N. Any other information required by regulations promulgated pursuant to this Chapter or
deemed necessary by the Director.
8.34.040 Application Investigation and Criteria for Approval or Denial of
Permit.
Upon receipt of a completed application, the Director, or his or her designee, shall cause an
investigation of the applicant and the application as submitted. The investigation shall be
Ordinance No. 969— Page 5 of 10
completed in a timely manner as follows and the applicant shall be notified of the result in writing
in a timely manner:
A. The applicant shall be required to pay the established fees for such service in addition to
the permit fee.
B. Inspection of the property by city staff shall be scheduled within thirty (30) days of
application.
C. If, as a result of this investigation, the applicant is found to satisfy all of the requirements
of Section 8.34.030 and no grounds for denial exist, the application shall be approved,
and a Short-Term Rental Permit shall be issued to the applicant. The permit shall contain
the name, address of the permittee, a description of the short-term rental to be offered,
the date of issuance and term of the permit, photograph of the permittee, and the signature
of the Director or his or her designee.
D. A Short-Term Rental Permit application may be denied for any of the following reasons:
1. Information contained in the application, or supplemental information requested
from the applicant, is false or misleading in any material detail;
2. The applicant failed to provide a complete application, after having been notified
of the requirement to produce additional information or documents;
3. The applicant is delinquent in payment of any city or county taxes, fines, or
penalties in relation to short-term rental.
4. The applicant has previously held a Short-Term Rental Permit which was revoked
by the City during the year prior to the application;
5. The applicant has failed to pay any previous administrative fines, remediate any
other violations, and/or complete any other alternative disposition associated with
a previous violation of this Chapter; or
6. The applicant has failed to demonstrate an ability to conform to the operating
standards set forth in Section 8.34.090.
If the permit application is denied, written notice of such denial and the reasons therefore shall be
provided to the applicant.
8.34.050 Permit Expiration and Renewal.
A Short-Term Rental Permit shall be valid for twelve (12) months from the date of issuance, and
shall expire and become null and void on the anniversary date of its issuance. A person may apply
for a permit renewal on a form provided by the City prior to the expiration of his or her active Short-
Term Rental Permit and upon successfully completing an inspection by city staff. The applicant
shall be required to pay the administrative fee for the permit renewal in the amount established
by City Council resolution at the time the renewal application is filed. Failure of the applicant to
submit a complete application prior to the expiration date of the existing Short-Term Rental Permit
shall be a basis for denial of the renewal.
Ordinance No. 969— Page 6 of 10
8.34.060 Permit Revocation.
The Director may revoke a Short-Term Rental Permit issued to a short-term rental host for a third
or subsequent violation of this Chapter within any period of time or for any violation of Chapter
3.40 relating to transient occupancy tax. A short-term rental host whose permit is revoked may
apply for a new Short-Term Rental Permit one year after the revocation of the permit.
8.34.070 Appeals.
Any person whose Short-Term Rental Permit is denied or revoked may appeal the decision in
writing with the City Clerk within fifteen (15) days following the date of the Director's decision
stating the grounds for said appeal. The appellant shall pay a non-refundable fee in an amount
established by resolution of the City Council for such appeal. The City Clerk shall schedule an
appeal hearing with the City Manager or his or her designee within fifteen (15) days of an appeal
being filed. The decision of the City Manager or the designee shall be final.
8.34.080 Permits Nontransferable.
A Short-Term Rental Permit granted pursuant to this Chapter shall not be transferable to another
person, parcel number, or to another property owner. Said permit shall not run with the land or
property to which it applies.
8.34.090 Operating Requirements.
Short-term rental hosts shall comply with the following:
A. The host shall be:
1. The property owner or the spouse, parent or adult child of the property owner.
2. A tenant of the property who has occupied the property as his or her primary
residence prior to making application for a Short-Term Rental Permit and who has
submitted written authorization from the property owner to operate short-term
rental at the residence.
B. The dwelling unit shall be the primary residence of the host.
C. The dwelling unit must be located within zones VL, L, LM, or is a single-family residence
in any other zone except zones GI, HI, GC, or CC. A short-term rental shall not be
permitted in zones GI, HI, GC, or CC.
D. All advertising for the dwelling unit as a short-term rental that is displayed on a hosting
platform or other media shall display the number of the current and valid permit as
issued by the City, a street-view photo of the front of the house and the maximum
number of guests based on the occupancy limit set forth in Subsection E.
E. The dwelling unit's occupancy, including the host, other residents of the dwelling unit,
and guests, during a short-term rental shall not exceed two times the number of
bedrooms of the dwelling unit.
Ordinance No. 969— Page 7 of 10
F. The Short-Term Rental Permit shall be conspicuously displayed in each area of the
dwelling unit available for occupancy.
G. Any accessory dwelling unit subject to a covenant that specifically prohibits rentals of thirty
(30) days or less may not be used as a short-term rental.
H. A single dwelling unit shall be limited to two (2) groups of any number concurrently or two
concurrent booking transactions.
I. The short-term rental shall comply with all applicable provisions of this Code and State
law.
J. Conditions that cause a public nuisance, as defined by this Code or State law, are
prohibited at the dwelling unit during a short-term rental.
K. Un-hosted stays shall be limited to a total of 90 days within a calendar year at the same
dwelling unit. Hosted stays shall not be limited.
8.34.100 Hosting Platform Requirements
A. Hosting platforms shall be responsible for collecting all applicable TOTs and remitting the
same to the City. The hosting platform shall be considered a managing agent of the host
for purpose of TOT collections and remittance responsibilities as set forth in Chapter 3.40
of this code.
B. Subject to applicable laws, hosting platforms shall disclose to the City on a regular basis
each short-term rental listing located in the City, the names of the persons responsible for
each such listing, the address of each such listing, the length of stay for each such listing
and the price paid for each stay.
C. Hosting platforms shall require hosts to include the City-issued registration number in their
listing(s), in a format designated by the City. Upon notice from the City that a listing is non-
compliant, hosting platforms shall cease any short-term rental booking transactions for
said listing(s) within five (5) business days. A hosting platform shall not complete any
booking transaction for a residential property or unit subject to a City notice until notified
by the City that the residential property or unit is in compliance with the local registration
requirement.
D. Hosting platforms shall not collect or receive a fee, directly or indirectly through an agent
or intermediary, for facilitating or providing services ancillary to a vacation rental or
unregistered short-term rental, including but not limited to, insurance, concierge services,
catering, restaurant bookings, tours, guide services, entertainment, cleaning, property
management, or maintenance of the dwelling unit.
E. A hosting platform operating exclusively on the internet, which operates in compliance
with subsections A., B., C., and D. above, shall be presumed to be in compliance with this
Chapter.
F. The provisions of this Section shall be interpreted in accordance with otherwise applicable
State and Federal law(s) and will not apply if determined by the City to be in violation of,
or preempted by, any such law(s).
Ordinance No. 969— Page 8 of 10
8.34.110 Enforcement and penalties.
A. Operating a short-term rental without a valid Short-Term Rental Permit, business license,
and valid transit occupancy registration certificate is prohibited. Advertising shall be
considered prima facie evidence of operation. Additional evidence of operation may
include, but shall not be limited to, guest testimony, online reviews, rental agreements,
receipts, or any other information deemed relevant by the City.
B. A violation of this Chapter shall constitute a public nuisance, which may be abated by any
means provided by law, including but not limited to injunctive relief, issuance of
administrative fines pursuant to Chapter 1.12, and shall also constitute a misdemeanor
punishable pursuant to Chapter 1.12.
C. Each and every day, or portion thereof, a violation of this Chapter exists shall constitute a
separate and distinct violation.
D. The remedies provided herein are intended to be cumulative and may be used in lieu of
or in addition to any other remedy provided by this Chapter or other law."
SECTION 4. The City Council declares that, should any section, subsection,
subdivision, sentence, clause, phrase, or portion of this Ordinance for any reason be held invalid
or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not
affect the validity of the remaining portions of this Ordinance. The City Council hereby declares
that it would have adopted this Ordinance and each section, subsection, subdivision, sentence,
clause, phrase, or portion thereof, irrespective of the fact that any one or more sections,
subsections, subdivisions, sentences, clauses, phrases, or portions thereof be declared invalid or
unconstitutional.
SECTION 5. Neither the adoption of this Ordinance nor the repeal of any other
Ordinance of this City shall in any manner affect the prosecution for violations of ordinances,
which violations were committed prior to the effective date hereof, nor be construed as a waiver
of any penalty or the penal provisions applicable to any violation thereof.
SECTION 6. The City Clerk shall certify to the adoption of this Ordinance and shall
cause it to be published in the manner required by law.
Ordinance No. 969 — Page 9 of 10
PASSED, APPROVED, AND ADOPTED this 5 1h day of August, 2020.
Dennis Michael, Kbyor
ATTEST:
-t,,TJ4an,.' Reynolds, Clerk
STATE OF CALIFORNIA
COUNTY OF SAN BERNARDINO ss
CITY OF RANCHO CUCAMONGA )
1, JANICE C. REYNOLDS, City Clerk of the City of Rancho Cucamonga,
California, do hereby certify that the foregoing Ordinance was introduced at a Regular Meeting of
the City Council of the City of Rancho Cucamonga held on the 15 th day of July 2020, and was
passed at a Regular Meeting of the City Council of the City of Rancho Cucamonga held on the
5 1h day of August 2020.
AYES: Hutchison, Kennedy, Michael, Scott, Spagnolo
NOES: None
ABSENT: None
ABSTAINED: None
Executed this 6 th day of August 2020, at Rancho Cucamonga, California.
C6 - Reynolds, erk -
Ordinance No. 969 — Page 10 of 10