Short-Term Vacation Rentals - Law & Leg June 24, 2024
Discussion Calendar, Agenda Item #5

First, I commend Jackie Rice, Revenue Manager; Peter Coletto, Director of Finance; and Bryan Howard, Program Manager, Department of Finance; for their research and efforts to bring this item forward. I am in support of this proposed ordinance amendment.

I have become increasingly dismayed over the years at the number of short-term rentals - that are not primary residences - cropping up in my neighborhood due to its proximity to the UC Davis Health Campus in Sacramento. Out-of-town landlords are using potential housing as hotels, as a cash cow, at the detriment of available neighborhood housing. ADUs are built behind non-primary residences and they also become STRs.

Enforcement is problematic. Although non-primary residences (including ADUs built on the lot) are subject to a 90-calendar day limit for use as short-term rentals, according to my neighborhood’s discussions with city staff and our councilmember, the 90-calendar day limit cannot be enforced. Thus, non-primary residences operate at STRs virtually 365 days per year. Yet non-primary residences operating as STRs have generated 61% of the 311 complaints year-to-date.

An additional problem with non-primary residence use as STRs is finding the property manager if there is a problem. Often property managers change, and neighbors can find it next to impossible to communicate with someone responsible for the property.

Neighbors within proximity to an STR receive notice of the initial issuance of a permit after its issuance, with the property manager listed. When the permit is renewed, nearby neighbors do not receive an updated notice, with the current property manager listed. This would put an additional cost burden on the STR program, and would be inefficient - there is nothing stopping the owner from changing property managers during the term of the permit. If the property manager changes, especially over several permit-years, it is hard to find out who neighbors can call. Having the property owner on-site would alleviate this issue.

Although I would rather have ADUs used as conventional long-term rentals, this proposal makes sense. Given the current cost of construction, it is understandable that some property owners may seek to use their ADUs as STRs in order to recoup the initial cost. Hopefully many of the ADUs built today will convert to long-term rentals over time, and provide more affordable housing, in support of our city's Housing Element.

I am in favor of the proposal to only allow one STR permit per property owner/primary resident. Owners can build more than one ADU, if the lot permits it. I am also in favor of the proposal regarding multi-unit dwellings, with the property ownership and primary residence requirements outlined in this proposal. Excluding rental apartments from use as STRs would further the Housing Element goals and policies to provide affordable housing opportunities. The city does not need multi-unit buildings and apartment buildings turned into virtual hotels.

Best,

Francesca Reitano, speaking on behalf of myself
Elmhurst Neighborhood Association
Trees4Sacramento
City of Sacramento Housing Policy Working Group

Please do not go to Sun Spa, located at 6804 Fruitridge Rd #A
Sacramento, CA, 95820, They will claim that they are too busy for you.