RECOMMENDED ACTIONS:
- Open and conduct a public hearing;
- Adopt Resolution 2024-13P (Attachment 1):
A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF ARTESIA, CALIFORNIA RECOMMENDING THAT THE CITY COUNCIL OF THE CITY OF ARTESIA APPROVE AN ORDINANCE ADDING ARTICLE 46 TO THE ARTESIA MUNICIPAL CODE TO PROHIBIT SHORT-TERM RENTALS THROUGHOUT THE CITY AND FINDING THE ACTION EXEMPT FROM CEQA PURSUANT TO STATE CEQA GUIDELINES SECTIONS 15060(c)(2) AND 15060(c)(3) AND ALTERNATIVELY CATEGORICALLY EXEMPT PURSUANT TO SECTION 15301.
BACKGROUND:
The City of Artesia (“City”) has continuously sought to deter nuisance activities throughout the community. Since the emergence of short-term rentals, the City has received complaints about residents leasing their properties to travelers for short-term vacation rentals. Among other things, residents assert that the rentals degrade the quality of their neighborhoods by generating excessive noise, parking problems, and trash.
Because short-term rentals are not expressly permitted in any zone under the Artesia Municipal Code (“AMC”), such uses are prohibited throughout the City. To provide clarity on this restriction, the proposed ordinance provides an express prohibition on short-term rentals. Attached to this staff report is the following Planning Commission Resolution and proposed Ordinance:
- Planning Commission Resolution No. 2024-13P Code Amendment Regarding Short-Term Rentals (Attachment 1)
- Draft Ordinance No. 24-960 Regarding Short-Term Rentals (Attachment 2)
ANALYSIS:
Short-Term Rental Prohibition
The proliferation of online vacation rental websites has encouraged and enabled City property owners, tenants, and occupants to rent their local properties on a short-term basis to travelers and transients. These short-term rentals, generally numbering less than 30 days, are often associated with excessive noise, parking problems, trash, and degradation of a neighborhood’s residential character. Because of those nuisance issues, the City has received a number of complaints regarding residents renting their properties out as short-term vacation rentals. Such rentals commercialize residential areas and detrimentally change a neighborhood’s residential character.
The AMC does not expressly address short-term rentals throughout the City, therefore, such uses are prohibited throughout the City. Is the City’s current practice to investigate complaints of, and enforce against short-term rental uses. To affirm this existing prohibition and expressly memorialize this restriction the City proposes to add Article 46 to the AMC to expressly prohibit short-term rentals throughout the City.
This express prohibition aligns with the growing trend among California municipalities of banning short-term rentals due to similar disruptions to neighborhoods. It also helps address the current housing shortage in California by increasing the availability of housing stock for long-term residents.
Staff Findings for Short-Term Rental Ordinance
Based on the evidence for the Zoning Ordinance Amendment and all other applicable information presented, staff finds that the proposed Code Amendment is appropriate for the following reasons:
- Consistency with City’s General Plan: The proposed Zoning Code Amendment is consistent with the following goals and principles of the City’s General Plan 2030: Community Goal LU 2 of the Land Use Element aims to preserve stable, well-maintained residential neighborhoods within the City. Short-term rentals often bring transient occupants who may not have a vested interest in the community, leading to issues such as excessive noise. The Amendment enhances stability of the City’s communities by preserving neighborhoods for long-term occupancy, particularly in light of the current housing crisis in California. Eliminating short-term rentals specifically within residential zones also implements Policy LU 2.1 regarding the protection of residential areas from effects of potentially incompatible uses. Through the elimination of short-term rentals throughout the City, the Amendment prevents conflicts in uses between long-term residents and transient occupants, particularly in residential neighborhoods, in furtherance of this Policy.
- Adoption of Zoning Code Amendment Will Not Have Adverse Effect on Health, Safety, and Welfare: The proposed Zoning Code Amendment will not be detrimental to the public health, safety, or welfare because it maintains the current zoning framework without introducing new uses or conditions that could pose risks. Indeed, the prohibition on short-term rentals preserves the established residential character and avoids the introduction of transient activities in residential neighborhoods that could disrupt the existing community standards.
- Adoption of Zoning Code Amendment Will Not Adversely Affect or be Detrimental to Properties Within Residential Zones: The proposed Zoning Code Amendment will not adversely affect or be detrimental to properties because it retains the current residential zoning regulations and does not introduce new or incompatible uses that could negatively impact properties throughout the City. By prohibiting short-term rentals, the Amendment ensures that properties within applicable zones continue to experience consistent residential use without the disruptions that short-term occupancy might cause.
- Consistency with Zoning Code: The Amendment is internally consistent with other provisions of the Zoning Code, as it reinforces existing regulations that prohibit incompatible uses in certain zones. By explicitly prohibiting short-term rentals throughout the City, the amendment supports the Zoning Code’s overall objective to maintain residential neighborhoods’ character, stability, and quality throughout the City.
ENVIRONMENTAL:
The proposed action is not subject to the California Environmental Quality Act (“Public Resources Code section 21000 et seq.) (“CEQA”) because it does not qualify as a “project” under CEQA. The State CEQA Guidelines provide that “[a]n activity is not subject to CEQA if … the activity is not a project as defined in Section 15378.” (State CEQA Guidelines, § 15060(c).) Here, the Zoning Code Amendment (“ZCA”) does not qualify as a “project” as defined in State CEQA Guidelines section 15378 for at least two different reasons: First, Section 15378 defines a project as an activity that “has a potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment.” (State CEQA Guidelines, § 15378(a).) Here, the ZCA clarifies that short-term rentals are prohibited in all zones. This prohibition will help address the current housing shortage in California by increasing the availability of housing stock for long-term residents. Such actions will not result in a direct or reasonably foreseeable indirect physical change in the environment. Accordingly, the ZCA is not a “project” subject to CEQA. (State CEQA Guidelines, § 15060(c).) Second, Section 15378 explicitly excludes from its definition of “project” the following: “organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment.” (State CEQA Guidelines, § 15378(b)(5).) The ZCA constitutes an organizational or administrative activity that will not result in a physical change in the environment, and it therefore is not subject to CEQA
Even if the ZCA is considered a “project” subject to CEQA, it is categorically exempt pursuant to State CEQA Guidelines Section 15301 because it involves restrictions on short-term or vacation rental within existing private structures, with no expansion of existing or former use. In addition, the proposed Zoning Code Amendment is exempt from CEQA pursuant to the “common sense” exemption under CEQA Guidelines section 15061(b)(3), because there is no possibility that the ZCA might have a significant effect on the environment. The amendments prohibit short-term rentals in all zones within the City to help address the current housing shortage in California by increasing the availability of housing stock for long-term residents.
Lastly, none of the exceptions to the use of categorical exemptions identified in State CEQA Guidelines section 15300.2 apply: there is no potential for cumulative impacts; there are no unusual circumstances that would have a significant impact on the environment due to the adoption of the amendments; the ZCA would not negatively impact scenic resources within a duly designated scenic highway; there is no record of hazardous waste and the ZCA has no potential to impact historic resources.
PUBLIC NOTICE:
Notice of the public hearing was published in the Los Cerritos Community News on October 4, 2024 in accordance with Government Code sections 65854 and 65090. Notice of the public hearing was also posted at three public locations.