Ordinance:
On May 12th, 2015 the Santa Monica City Council adopted the “Home-Sharing Ordinance,” adding chapter 6.20 to the Santa Monica Municipal Code clarifying prohibitions against short-term Vacation Rentals and imposing regulations on Home-Sharing. This law becomes effective by June 12th, 2015. It allows eligible Residents (owners and tenants) to apply for a business license through the City’s Business License program.
This Home-Sharing Ordinance provides for regulations of two types of Short-Term Rentals:
“Home-Sharing” – The new law authorizes Home-Sharing, which is an activity whereby a resident hosts visitors in their home, for periods of 30 consecutive days or less, while at least one of the primary residents lives on-site throughout the visitor’s stay. The guest enjoys the non-exclusive shared use of the unit with at least one of the persons who is domiciled at the location.
“Vacation Rental” – The new law continues the City’s longstanding prohibition against Vacation Rentals. A Vacation Rental is a rental of any dwelling unit, in whole or in part, to any persons for exclusive transient use of 30 consecutive days or less, whereby the unit is only approved for permanent residential occupancy and not approved for transient occupancy. The guest enjoys the exclusive private use of the unit.
On September 2, 2016, Airbnb and HomeAway filed a lawsuit against the City of Santa Monica, arguing that the city violated federal laws protecting privacy and online speech. In its 22-page suit filed in U.S. District Court in Los Angeles, the company alleges that an ordinance Santa Monica officials passed in May 2015 violates the 1st and 4th Amendments of the U.S. Constitution with a series of onerous requirements for property owners who offer short-term rentals.
Overview of the Home Sharing Ordinance – City of Santa Monica
Lawsuits:
09/02/2016: Airbnb Inc. v. City of Santa Monica (Complaint)
09/02/2016: HomeAway Inc. v. City of Santa Monica (Complaint)
Reports:
04/28/2015: Vacation Rentals and Home-Sharing Staff Report (City of Santa Monica)
News:
03/12/2018: City of Santa Monica Prevails Against Airbnb and HomeAway (City of Santa Monica)
09/05/2016: Airbnb sues Santa Monica, saying laws unfairly punishes ‘hosts’ (Los Angeles Business Journal)
09/03/2016: Surprise! Airbnb Sues Santa Monica Over Short Term Rental Laws (LAist)
09/02/2016: Airbnb is taking Santa Monica and its short-term rental restrictions to court (Curbed Los Angeles)
09/02/2016: Airbnb sues Santa Monica over short-term rental ban (Los Angeles Times)
07/13/2016: Santa Monica convicts its first Airbnb host under tough home-sharing laws (Los Angeles Times)
07/13/2016: Santa Monica Wins First Conviction in Battle to Stop Illegal Short-Term Vacation Rentals (Santa Monica Lookout)
07/12/2016: Lawsuit Claims Santa Monica’s Short-Term Rental Ban Unconstitutional (Santa Monica Lookout)
02/23/2016: In bid to stop illegal rentals, Santa Monica slaps Airbnb, VRBO with $500 fines (89.3 KPPC)
06/15/2015: Short-term rental hosts, who use sites like Airbnb, on borrowed time in Santa Monica (Southern California Public Radio)
06/15/2015: New Regulations To Wipe Out 80% Of Airbnb Rentals In California’s Santa Monica (Forbes)
05/18/2015: How Santa Monica will enforce its Airbnb ban (Southern California Public Radio)
05/15/2015: Ordinance regulating Airbnb in Santa Monica approved (Santa Monica Daily Press)
05/13/2015: Santa Monica Cracks Down On Airbnb, Bans ‘Vacation Rentals’ Under A Month (National Public Radio)
05/13/2015: Q&A: How new Santa Monica law affects rentals, Airbnb (Los Angeles Times)
04/28/2015: Santa Monica City Council takes first step to rein in short-term rentals (Los Angeles Times)
04/28/2015: Santa Monica debates tough restrictions for AirBnb, VRBO (89.3 KPPC)
04/27/2015: Santa Monica considering tough new restrictions on short-term rentals (Los Angeles Times)
Resources: