It is time for a compromise

For 13 years, San Diego has been struggling with how to regulate vacation rentals. Now, a compromise is coming together. Councilmember Jen Campbell has taken ideas put forward by vacation rental platform Expedia and labor union Unite Here to create a foundation for a compromise. We believe it is a good start, but critical improvements are needed for effective enforcement and better protection of our neighborhoods. Please see ENFORCEMENT and PROTECTIONS below for our ideas.

What does a compromise need to be effective?

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1. Provide rapid, effective relief for neighbors impacted by disturbances, other violations.

Through funding provided by permits and fines, a high-tech public-private enforcement system is proposed for enforcement and compliance. Details can be found under ENFORCEMENT below.

2. Protect neighborhood character and residential livability.

As part of Campbell’s compromise, caps are proposed to limit the number of whole-home vacation rentals (STRs) that will be permitted in San Diego. We believe a further step – distance separation of STRs – is needed to prevent tourist-attractive areas and even single blocks from having so many STRs that it negatively impacts residential character. Details can be found under PROTECTIONS below.

3. Preserve San Diego’s scarce housing stock for home owners and long-term renters.

We support the caps in Campbell’s compromise plan. We believe these caps will stop future STR investments that will deplete housing stock for home owners and long-term renters. Without regulations, STR investment growth will simply continue unchecked, as it has for years. A further bonus is that caps proposed in Campbell’s compromise will significantly reduce the already high number of STRs currently in San Diego.

 

What are the next steps?

On December 3, the San Diego Planning Commission voted 7-0 to recommend sending Councilmember Campbell's to the City Council with its approval.

None of the commissioners suggested that an "enforce the code" strategy should be considered. Several commissioner comments were directed to those who still cling to that as a possibility. "We have to consider the reality of the situation," was the gist of those comments.

A distance separation provision was briefly considered and mentioned by several commissioners as a possible additional protection for neighborhood character, however, it appeared they couldn't imagine how a distance separation could be implemented. They fell back on the idea that a lottery system would somehow reduce concentrations of STRs. If neighborhood character is going to protected and not allow or even increase concentrations in OB, PB and La Jolla, we will need to emphasize the need for distance separations. Otherwise, beach communities will continue to be zones of concentrations for STRs.

The Planning Commission asked that seven amendments/changes be considered by the City Council:

  • The cap should be raised from .075 to .1 of San Diego's approximately 530,000 housing units for STRs (Tier 3 in Campbell's proposal).

  • City Council should consider distributing STR permits by Council district so the permits would be more equalized across the city. In addition to a lottery for permits if the regulations pass, this would protect any one neighborhood from being overrun by large numbers of STRs, the Planning Commission argued.

  • Permit applicants would need to verify their permanent home address through a driver's license and/or other means.

  • Noise and other restrictions in mixed commercial/residential zones would be included to reduce the impact on quality of life.

  • The proposal going forward would be subject to legal review.

  • The proposal will add language to prevent abuses in the 20-day maximum rental period allowed for Tier 1 vacation rentals.

  • If passed, the vacation rental ordinance would be subject to an automatic annual review from both the Planning Commission and City Council. During its first year, the ordinance also should be the focus of increased outreach for input from community councils and citizens, the Planning Commission said.

With five of the nine City Council seats welcoming new councilmembers on Dec. 10, and new mayor Todd Gloria also coming into office at that time, no schedule was given for when this ordinance might go to City Council. The City Council also is considering the naming of a new president. The next likely venue for an official city consideration for this issue could be at a Land Use and Housing City Council Sub Committee.