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Chapter 23.314 SHORT-TERM RENTALS

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This chapter establishes short-term rental standards that:

A. Prevent long-term rental units from being replaced with short-term rentals and protect affordable housing units from conversion;

B. Preserve and protect neighborhood character and livability from nuisances that are often associated with short-term rentals;

C. Generate City revenue to share infrastructure cost and other public expenditures by operation of short-term rentals under established standards; and

D. Provide alternative forms of lodging. (Ord. 7787-NS § 2 (Exh. A), 2021)

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A. Terms Defined. Terms used in this chapter are defined as follows:

1. Adjacent Properties. The dwelling units abutting and confronting, as well as above and below, a dwelling unit within which a short-term rental is located.

2. Host. Any owner or tenant host. An owner host is a person who is the owner of record of residential real property, as documented by a deed or other such evidence of ownership, who offers their host residence, or a portion thereof, as a short-term rental. A tenant host is a lessee of residential real property, as documented by a lease or other such evidence, who offers their host residence, or portion thereof, as a short-term rental.

3. Host Present or Host Presence. The host is living in the host residence during the short-term rental period. In the case of a parcel comprised of a single primary unit and one or more authorized accessory dwelling units and/or accessory buildings, the host is considered present if he or she is present in any unit on such parcel.

4. Hosting Platform. A business or person that provides a means through which a host may offer a dwelling unit, or portion thereof, for short-term rentals. A hosting platform is usually, though not necessarily, provided through an internet-based platform. It generally allows a property owner or tenant to advertise the dwelling unit through a website provided by the hosting platform and provides a means for potential short-term rental transients to arrange short-term rentals, whether the short-term rental transient pays rent directly to the host or to the hosting platform.

5. Host Residence. A host’s principal place of residence, as defined by whether the host carries on basic living activities at the dwelling place and, whether such dwelling place is the host’s usual place of return. Motor vehicle registration, driver’s license, voter registration or other evidence as may be required by the City shall be indicia of principal residency.

6. Local Contact. A person designated by the host who shall be available during the term of any short-term rental for the purpose of

(a) Responding within sixty minutes to complaints regarding the condition or operation of the dwelling unit or portion thereof used for Short-Term Rental, or the conduct of Short-Term Rental Transients; and

(b) Taking appropriate remedial action on behalf of the Host, up to and including termination of the short-term rental, if allowed by and pursuant to the short-term rental agreement, to resolve such complaints.

7. No Fault Eviction. An eviction pursuant to the Ellis Act or Sections 13.76.130.A.9 or 10 of the Municipal Code.

8. Short-Term Rental. The use of any dwelling unit, authorized accessory dwelling unit or accessory building, or portions thereof for dwelling, sleeping or lodging purposes by short-term rental transients. Excludes tourist hotels and residential hotels.

9. Short-Term Rental Transient or STR Transient. Any person who rents a dwelling unit, authorized accessory dwelling unit or accessory building, or portion thereof, for less than 14 consecutive days.

B. Terms Not Defined. Terms not defined in this section shall be interpreted to give this chapter its most reasonable meaning and application, consistent with applicable state and federal law. (Ord. 7787-NS § 2 (Exh. A), 2021)

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This chapter applies to the rental of a dwelling unit, accessory dwelling unit or accessory building for a period of less than 14 consecutive days. (Ord. 7787-NS § 2 (Exh. A), 2021)

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A. Host Residence. Short-term rentals are permitted only in the host residence.

B. BMR Units. Short-term rentals are not permitted in below market rate (BMR) units. BMR units for short-term rental purposes refer to dwelling units whose rents are listed as a result of deed restrictions or agreements with public agencies, and whose tenants must be income qualified.

C. No-Fault Evictions. A property containing a unit with a no-fault eviction may not operate a short-term rental for five years from the date of the eviction unless it is a single-family home that has been vacated for purposes of owner occupancy in compliance with the Rent Stabilization Ordinance in Municipal Code Chapter 13.76 (Rent Stabilization and Eviction for Good Cause Ordinance).

D. Accessory Buildings.

1. Short-term rentals are allowed in:

(a) Accessory buildings; and

(b) Accessory dwelling units permitted before April 3, 2017 unless the accessory dwelling unit is used for long-term rentals, as defined in Municipal Code Chapter 13.76 (Rent Stabilization and Eviction for Good Cause Ordinance) or has been used for long-term rentals at any time before April 3, 2017.

2. A short-term rental is not allowed in an accessory dwelling unit permitted after April 3, 2017. (Ord. 7787-NS § 2 (Exh. A), 2021)

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A short-term rental must conform to all of the operating standards and requirements in this section.

A. Proof of Host Residency.

1. Owner-Host. An owner-host of a short-term rental must provide the Planning and Development Department documentation of owner-host and host residence status and, if applicable, host presence.

2. Tenant-Host. A tenant-host must provide the Planning and Development Department documentation of lessee status, host residence and host presence, if applicable. In addition, a tenant-host must present written authorization allowing for a short-term rental in the host residence from the building owner or authorized agent of the owner.

B. Allowed Duration and Required Residency Timeframes.

1. When the host is present, a short-term rental is allowed for an unlimited number of days during the calendar year.

2. When the host is not present, a unit may be used as a short-term rental for no more than 90 days per calendar year.

C. Number of Occupants. The maximum number of short-term rental transients allowed for a short-term rental unit is as provided in Municipal Code Chapter 19.40 (Uniform Housing Code).

D. Notification.

1. After the City approvers a Zoning Certificate and Business License for a short-term rental, a host shall notify residents of all adjacent properties that a short-term rental has been established. Notification shall include host and local contact information.

2. A host shall notify residents of all adjacent properties of updated host, local contact, or other information within one week of changes to such information.

E. Enforcement Fees.

1. For the initial enforcement period, while enforcement costs are being determined, the host shall pay an additional enforcement fee in an amount equal to 2 percent of the rents charged by that host, not to exceed the cost of the regulatory program established by this chapter over time.

2. Enforcement fees may be paid by the hosting platform on behalf of the host. After the initial enforcement period, the City Council may revise the enforcement fee by resolution.

F. Liability Insurance. Liability insurance is required of the host, or hosting platform on behalf of the host, in the amount of at least $1 million.

G. Documents Provided to Short-Term Rental Transients. The host or hosting platform must provide to short-term rental transients upon booking and arrival electronic or paper copies of:

1. The Community Noise Ordinance in Municipal Code Chapter 13.40 (Community Noise); and

2. The Smoke-Free Multi-Unit Housing Ordinance in Municipal Code Chapter 12.70 (Smoking Pollution Control).

H. Transient Occupancy Tax. Either the host or hosting platform must pay the transient occupancy tax.

I. Housing Code Compliance. Any building or portion of a building used for short-term rentals shall comply with Municipal Code Section 19.40 (Uniform Housing Code).

J. Payment of Taxes. The host shall pay all City taxes and fees owed in a timely manner.

K. Host Responsibilities.

1. The host shall list on any rental advertisement the Zoning Certificate number.

2. Upon request, the host must provide both the Business License number, if required by Municipal Code Chapter 9.04 (Business Licenses), and Zoning Certificate for the short-term rental to the City and/or a vendor hired by the City to administer this chapter. (Ord. 7787-NS § 2 (Exh. A), 2021)

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A. Compliance with Second-Response Ordinance. The host shall comply with the Second Response Ordinance in Municipal Code Section 13.48 (Civil Penalties for Multiple Responses to Loud or Unruly Parties, Gatherings or Other Similar Events). The host is prohibited from operating short-term rentals for one year after issuance of a third violation affidavit.

B. Violations and Remedies of this Chapter.

1. Violation of this chapter is punishable as set forth in Municipal Code Sections 1.20 (General Penalty) and 1.28 (Administrative Citations).

2. Violation of this chapter is a public nuisance subject to abatement under Municipal Code Sections 1.24 (Abatement of Nuisances), 1.26 (Violations Declared Public Nuisance), and 23.414 (Nuisance Abatement).

3. In any enforcement action, the prevailing party is entitled to recover reasonable attorneys’ fees and costs; provided that, pursuant to Government Code Section 38773.5, attorneys’ fees are only available in an action or proceeding in which the City has elected, at the beginning of such action or proceeding, to seek recovery of its own attorneys’ fees. An award of attorneys’ fees to a prevailing party may not exceed the amount of reasonable attorneys’ fees incurred by the City in the action or proceeding.

4. Any Berkeley resident may bring a private action for injunctive relief to prevent or remedy a public nuisance. No action may be brought under this subsection unless and until the prospective plaintiff has given the City and the prospective defendant(s) at least 30 days written notice of the alleged public nuisance and the City has failed to initiate proceedings within that period, or after initiation, has failed to diligently prosecute.

5. The following constitute a public nuisance:

(a) Any occurrence at a short-term rental unit that creates a substantial disturbance of the quiet enjoyment of private or public property in a significant segment of a neighborhood, such as excessive noise or traffic, obstruction of public streets by crowds or vehicles, public intoxication, the service to or consumption of alcohol by minors, fights, disturbances of the peace, litter or other similar conditions.

(b) Any short-term rental transient of a short-term rental unit where an event is taking place refusing access to, or interfering with access by, Fire Department or other City personnel responding to an emergency call or investigating a situation.

6. Notwithstanding any provision of Municipal Code Chapter 13.48 (Civil Penalties for Multiple Responses to Loud or Unruly Parties, Gatherings or Other Similar Events) to the contrary, a public nuisance as defined in this section is subject to remedies in this subsection. (Ord. 7787-NS § 2 (Exh. A), 2021)