By Breeana Greenberg
The California Coastal Commission (CCC) will hold a public hearing next week to discuss Dana Point’s proposed short-term rental (STR) program, which agency staff is recommending for approval with some modifications.
In early September, the Commission ruled that there were “substantial issues” with the City of Dana Point’s short-term rental program approved in July. Commissioners found that the issue merited further discussion after voicing concerns with the proposed short-term rental program’s potential effect on affordable housing stock.
According to the latest staff report, CCC staff found that the city’s proposed vacation rental program “is currently structured in a manner that does not adequately balance coastal public access and long-term residential opportunities.”
Previously, the city had proposed a maximum of 115 permits in the coastal zone for non-primary STRs—when a property owner rents out homes other than their primary residence to visitors.
To encourage more homestay, multi-family homestay, and primary residence STRs—a variation of rentals in which the owner either lives on-site or is traveling for a short time during a guest’s stay—the city did not issue a cap for such permits.
Ahead of the upcoming meeting scheduled for Nov. 16, CCC staff proposed modifications to the city’s STR program, including a cap of 115 non-primary, multi-family home stay, and mixed-use parcel non-primary short-term rentals within the coastal zone.
Additionally, staff proposed no cap on primary or home stay short-term rentals.
The staff report explained that “while primary STRs are not proposed to have a cap, and they may grow in popularity over time, it is anticipated that the Program’s required registration process, enforcement mechanisms, and five-year reassessment period would help prevent adverse impacts on community character resulting from this type of STRs.”
Unhosted primary STRs, such as when a homeowner rents out their primary residence while traveling, is limited to a maximum of 60 days per year.
To prevent an oversaturation of STRs in the mixed-use zone, the CCC added that no more than 20% of residential units in a mixed-use district may be converted into STRs.
Properties with six or more units may convert a maximum of 20% of the total units into STRs, and properties with five or fewer units may convert only one unit into an STR.
Any changes to the STR program would have to go through the CCC’s executive director, who will determine whether a coastal development permit (CDP) amendment or new CDP is necessary.
If the commission votes to approve the program at the upcoming hearing, the program would not go into effect until the city accepts it with the CCC’s changes.
The CCC is also requiring the city reimburse the commission for any costs and attorneys’ fees that may be required “in connection with the defense of any challenges of the approval, issuance, or implementation of this CDP,” according to the staff report.
The city would also be required to establish a study including metrics and criteria to track the STR program’s performance.
The study would assess whether permit caps are adequate or need to be changed, whether the program adequately addresses nuisance complaints and violations, and if the city’s enforcement should be changed.
The study would also assess whether the program was having an adverse impact on housing stock or visitor use of non-STR accommodations.
By Nov. 16, 2031, the City of Dana Point would be required to apply for a new CDP amendment or local coastal plan (LCP) amendment to reauthorize the STR Program and simultaneously submit the results of the program’s study.
Bridget McConaughy, of Unite Here Local 11, and Dana Point residents Mark Zanides and Kim Tarantino appealed the proposed STR program to the Coastal Commission in July on the basis that the City Council approved it through an incorrect avenue. They also claimed that the proposed program will decrease affordable housing stock in the city.
In late October, the appellants requested that the hearing be postponed, filing a motion for continuance. The appellants argued that the staff’s proposed vacation rental program be published 60 days before the hearing for public review and that commission staff should meet with community members ahead of the hearing and “conduct the investigation necessary to make a fully informed decision.”
In response, CCC staff stated that “the appellants’ request to formally confer with Commission staff and the Commissioners and/or establish a 60-day public review period of the de novo CDP, in order to influence the final details of the STR Program, is outside of the protocols established by the Coastal Act and its implementing regulations.”
With appellants’ claiming that the CCC staff have drafted an STR program without “information necessary to make an informed decision,” the staff report noted that the special condition requiring a study on the effectiveness of the program will ensure that Dana Point’s vacation rental program is “data-driven” and conforms with the Coastal Act.
If approved, the program would last for 10 years, expiring on Nov. 16, 2032, unless the CCC’s executive director extends the deadline.
Breeana Greenberg
Breeana Greenberg is the city reporter for the Dana Point Times. She graduated from Chapman University with a bachelor of arts degree in English. Before joining Picket Fence Media, she worked as a freelance reporter with the Laguna Beach Independent. Breeana can be reached by email at bgreenberg@picketfencemedia.com
Discussion about this post