TITLE:
title
RESPONSE TO ORANGE COUNTY GRAND JURY REPORT- LONG TERM SOLUTIONS TO SHORT-TERM RENTALS
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DEPARTMENT: CITY MANAGER'S OFFICE
PRESENTED BY: JAY BARKMAN, GOVERNMENT AFFAIRS MANAGER
CONTACT INFORMATION: JAY BARKMAN, GOVERNMENT AFFAIRS MANAGER, 714-754-5347
RECOMMENDATION:
recommendation
Staff recommends the City Council approve the draft letter to the Presiding Judge of the Superior Court (Attachment 1) with responses to Findings 1, 2, 3, and 12, and Recommendations 1, 2, and 9 in the Orange County Grand Jury Report titled, "Long Term Solutions to Short-Term Rentals."
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BACKGROUND:
On May 16, 2025, the City received a copy of the 2024-2025 OC Grand Jury Report titled "Long Term Solutions to Short-Term Rentals" (Attachment 2). The report outlines the status and obstacles for Cities in responding to the growth in Short-Term Rentals (STRs) and seeks to identify best practices that City Councils and Planning Departments may implement to manage STRs with Findings and Recommendations. The Grand Jury report was released to the public on May 22, 2025 and a response is due by the August 20, 2025 to the Presiding Judge of the Orange County Superior Court.
The Grand Jury report provides an overview of strategies used by cities to permit STRs, collect fees, and code enforcement tools. Of the 34 cities in Orange County, the report states that 19 cities have a policy to ban STRs, including Costa Mesa, and 15 have a policy to allow them in some form. In fact, Costa Mesa allows "home-sharing," which requires the owner of the residence to be on site during the term of the rental. It is unclear how the grand jury defined a policy as banning STRs.
The City of Costa Mesa adopted an interim ordinance on November 10, 2020, to address the impacts of STRs on housing availability that worsened during the COVID-19 pandemic. A permanent ordinance was adopted on November 2, 2021, with a minor revision to allow for home-sharing.
ANALYSIS:
City staff have pr...
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