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Time running out on short-term housing moratorium

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Short-term housing has turned into long-term debate in Laguna Beach, and Councilman Bob Whalen captured the tone quite well at the conclusion of another discussion on the subject July 14.

“It seems like we made no one happy,” Whalen said in front of a standing-room only crowd gathered at the Laguna Beach Community & Susi Q Center for the second City Council subcommittee meeting regarding short-term rentals in less than a month.

The subcommittee, made up of Whalen, Mayor Steve Dicterow and city staff, listened to nearly 90 minutes of familiar refrains from opponents and supporters of a policy allowing Laguna Beach residents to rent out space in their house or apartment.

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The city had allowed residents to do so — for 30 days or less at a time for unlimited times a year, so long as they obtained a permit. But complaints about the casual visitors bringing in noise, parking problems and other annoyances prompted the city to put a moratorium on the policy.

The clock is ticking — the moratorium ends Oct. 1. So the subcommittee is working on a revised ordinance that would allow the practice but with greater limits to appease neighbors.

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Indeed, the issue of short-term lodging appears to have polarized Laguna in much the way that the Village Entrance Project, a plan to beautify a main entrance into the city, did three years ago. With that project, the inclusion, since rejected, of a multi-story parking structure near City Hall was met with vehement opposition in the community.

In this case, opponents of short-term housing have claimed a lack of responsibility on the part of renters, leading to loud parties, street congestion and ramifications for housing overall, they allege.

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Supporters of short-term rentals, on the other hand, argue that it’s a legitimate way for people to bring in a little extra money and that the city could open itself up to legal challenges from property owners or the California Coastal Commission if it banned the practice, which has blossomed in recent years with online listings of available rooms. The Coastal Commission’s mission is to protect and enhance the coast for the enjoyment of generations.

“It makes me sad that people, friends, would be at such divisive ends of this,” resident Jennifer Zeiter said at the meeting.

A revised ordinance being considered would allow rentals in all residential zones, but a property owner would be allowed to rent out a room in a house, apartment or condominium only twice a year for a maximum of 14 days each, Community Development Director Greg Pfost confirmed Wednesday.

In addition, the rental would have to be the property owner’s primary residence, though the owner would not be required to be there during the tenant’s stay.

Earlier this year, the council backed away from an outright ban on short-term rentals in residential zones, rejecting a recommendation from the Planning Commission.

But Coastal Commission staff members have “serious concerns” with ordinance revisions, Charles Posner, the commission’s planning supervisor, wrote in a letter to the City Council last week, referring to the two 14-day rental periods.

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“The proposed restrictions impose limits staff would likely find inconsistent with Coastal Act sections 30213 and 30222,” Posner wrote, alluding to the commission’s goal of providing overnight accommodations at the coast as well as coastal access.

“We strongly encourage regulation over prohibition,” Posner wrote, adding commission staff understands concerns with neighborhood impacts of the practice.

South Laguna resident Debbie Naudé said she considered renting out space in her two-bedroom rental home before the moratorium but decided against doing so.

“The fabric [of the neighborhood] changes so drastically when the summer comes,” Naudé said. “It’s not something I think is beneficial.”

Naudé said she knows of a woman who had twice been evicted because the owners were converting properties into short-term rentals.

“I felt for her,” Naudé said in a phone interview.

“It’s a ban in many ways,” resident Sandy Leger told the subcommittee, referring to the proposal for two 14-day rental periods a year.

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“Regulations are not perfect,” Leger added. “It’s like saying because we know people will speed and run red lights, no one should have a driver’s license.”

The council is scheduled to discuss, and possibly vote on, the draft ordinance Aug. 9.

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Bryce Alderton, bryce.alderton@latimes.com

Twitter: @AldertonBryce

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