Short-Term Rental Background

BACKGROUND

The creation of new STR regulations is a City Council priority special project. This project initially began in 2016 and has involved several California Coastal Commission (CCC) actions, legal challenges, and enforcement considerations as well as processing delays due to the timing of court decisions rendered during the COVID-19 pandemic. Work on this special project resumed in January 2023 with the following actions having occurred to date:

  • On July 10, 2023, the City Council requested the desire to establish guiding principles and objectives to develop STR regulations and receive information regarding the City’s current zoning and Local Coastal Program (LCP) regulations that relate to STRs at the July 24, 2023, Council meeting.
  • On July 24, 2023, the City Council determined the initial eleven guiding principles and objectives for development of new STR regulations and added a 12th guiding principle during the City Council meeting on September 5, 2023.
  • On September 5, 2023, the City Council received a presentation of past Coastal Commission actions, court decisions, and legal parameters to help guide community discussions relating to new STR regulations.
  • On October 2, 2023, the City Council discussed regulatory framework examples and provided policy direction for new STR regulations. Staff will return to City Council for additional policy direction prior to processing of a draft ordinance in early 2024. 
  • On January 22, 2024, the City Council reviewed a draft regulatory framework of short-term rental regulations. Council directed staff to develop STR regulations that allow existing STRs to exist until the property changes ownership, the STR permit is not renewed, or the permit is revoked due to non-compliance. 
  • On May 20, 2024, the City Council reviewed the revised regulatory framework and provided direction for additional revisions to be incorporated into a draft ordinance for presentation to the Planning Commission and City Council in 2024. The changes generally included revising the purpose statement and definition of STR, incorporating a hold harmless/indemnity agreement requirement in the permit section, adding disclosure of the recycling/organics regulations with the trash regulations together with other STR rental regulations that must be disclosed to tenants together with the Good Neighbor Policy. 
  • On August 13, 2024, the Planning Commission unanimously recommended approval to the City Council of the Short-Term Rental (STR) regulations with a recommendation to modify the definition of "Short-Term Rental" to define STRs as less than one month and define what the means. 
  • On September 9, 2024, the City Council unanimously voted to introduce the STR Regulations ordinance. 
  • On September 23, 2024, the City Council voted to adopt the STR Regulations ordinance. The ordinance is now pending Coastal Commission certification. 

COUNCIL GUIDING PRINCIPLES & OBJECTIVES FOR NEW STR REGULATIONS

  1. Honor the existing policies in the Del Mar Community Plan.
  2. Maintain the residential character of neighborhoods in residential zones.
  3. Honor the tradition of vacation rentals during the summers, holidays, and horse-racing season. 
  4. Ensure the protection of the public health, safety, and general welfare.
  5. Ensure the City’s natural resources will be preserved and protected. 
  6. Ensure STRs will not overburden public improvements, facilities, and services.
  7. Minimize adverse impacts to adjacent private properties and the surrounding neighborhood.
  8. Consider distribution and concentration of STRs throughout the community.
  9. Craft regulations that are easy to understand and implement. 
  10. Communicate expectations for civil conduct in line with “good neighbor” policies.
  11. Establish enforcement protocols, and ensure regulation of short-term rentals is, at a minimum, revenue neutral to the City.
  12. Work towards a solution for STRs that works for Del Mar and will pass muster with the Coastal Commission.

EXISTING REGULATIONS FOR SHORT TERM RENTALS (STRs)

Currently, short term rental operations are only permitted in the Residential-Commercial (RC) zone and the Visitor Commercial (VC) zone and where otherwise provided for by development entitlement (i.e. Wave Crest Time Shares, Hotel Specific Plan, and the 941 Camino del Mar Specific Plan). STRs are not permitted in residential zones. 

Title 30 of the Del Mar Municipal Code sets forth the City’s zoning code requirements. The Title 30 regulations and associated maps applicable to base zones, overlay zones, permit types, public access, and coastal resources comprise the City’s certified LCP implementing ordinances. Until new STR regulations are adopted and become effective, new STRs are only an allowed use in commercial zones including the Residential Commercial (RC), Central Commercial (CC), North Commercial (NC), Professional Commercial (PC), Visitor Commercial (VC), Hotel Specific Plan, and 941 Camino del Mar Specific Plan zones; and as provided for by development entitlement (i.e., Wave Crest Resort Time Shares and L’Auberge Vacation Villas). STRs are currently not an allowed use in any residential zones.