Laguna Beach group sues over city’s ban on new short-term rentals
A group of Laguna Beach residents is asking an Orange County court to overturn the city’s ban on new short-term rentals in residential neighborhoods.
BEACH Vacation Coalition, whose acronym stands for Backing Everyone’s Access to Coastal Housing, filed a Superior Court lawsuit Nov. 14 against the city of Laguna Beach and the California Coastal Commission, alleging they are violating land-use laws by prohibiting new short-term lodging permits in residential areas. Short-term lodging is defined as a rental lasting 30 days or less.
The Coastal Commission, which oversees development and land use in coastal areas, has not yet weighed in on the city’s action. The commission is scheduled to take a first look at the ordinance in December.
Commission staff plans to ask the panel for up to a one-year extension to allow it to coordinate with city staff and prepare a recommendation. The item could be scheduled for a commission meeting in Southern California in the spring.
“This lawsuit seems premature since the commission has not taken any recent action on the situation in Laguna Beach,” said Coastal Commission spokeswoman Noaki Schwartz.
The lawsuit claims the city violated the California Environmental Quality Act, which requires all public agencies to prepare an environmental impact report whenever a project may have significant adverse effects on the environment.
The City Council voted in August to prohibit additional short-term rentals in residential neighborhoods, limiting the practice to commercial zones. An EIR was not conducted before the vote.
Laguna Beach City Attorney Phil Kohn said Wednesday that the city had not been served with the lawsuit but is aware of the complaints regarding CEQA because they were brought up during the council hearing when the issue was discussed.
“The city is confident that the requirements of CEQA were followed, but ultimately it will be up to a judge to decide,” Kohn said.
Laguna has not issued any new short-term lodging permits since May 2015 amid mounting complaints of loud parties and littered sidewalks and streets, problems that some residents have attributed to the renters.
Thirty-six permits issued before the ban would be “grandfathered” in under the new ordinance.
The coalition’s lawsuit alleges the city’s action violates one of the main goals of the state’s Coastal Act, which aims to protect and encourage low-cost visitor and recreational facilities near the beach.
The group stated in court papers that property owners for decades have been able to rent their units to provide low- and moderate-income people who couldn’t otherwise afford to vacation in Laguna Beach an opportunity to visit.
“However, a few outspoken Laguna residents do not want to share their city with visiting and vacationing persons and families of very low, low and moderate income and began prodding the city to ban the short-term rental units these persons and families can afford,” the lawsuit states.
Beach communities and other vacation destinations across the country have been trying to get a handle on short-term rentals, which have exploded in popularity in recent years, partly because of the convenience of online listing platforms such as Airbnb and VRBO (Vacation Rental by Owner).
Twitter: @HannahFryTCN
