The City Council voted Monday to schedule a study session and public hearings in October on a proposal to crack down on suspected illegal rentals.
The Planning Commission has proposed that the city require homeowners to obtain conditional-use permits for construction of second units and that city inspectors make annual inspections to ensure code compliance.
The proposal is designed to prevent so-called "granny flats," separate living quarters with kitchens, from being used as ordinary rentals. State law permits second units to be built in single-family areas as quarters for elderly, handicapped or young family members, as long as at least one unit is occupied by the property owner.
City officials believe there is growing abuse of the "granny flat" law.
"There are some significant problems with the (existing) codes," said city planner Marsha Harris. "They are not easy to enforce."
The new rules will be considered at the council's Oct. 7 and 28 meetings.