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PC - Item 3C - Municipal Code Amendment 18-02 Short Term Rental of Residential Homes and Boarding HousesROSEMEAD PLANNING COMMISSION STAFF REPORT TO: THE HONORABLE CHAIR AND PLANNING COMMISSION FROM: PLANNING DIVISION DATE: JUNE 4, 2018 SUBJECT: MUNICIPAL CODE AMENDMENT 18-02 SHORT TERM RENTAL OF RESIDENTIAL HOMES AND BOARDING HOUSES — ROSEMEAD ZONING CODE (TITLE 17) SUMMARY The Rosemead Zoning Code (Title 17) of the Rosemead Municipal Code carries out the policies of the Rosemead General Plan by classifying and regulating uses of land and structures within the City. The Zoning Code, however, is silent on short-term rental of residential homes, and boarding houses, and as such the uses are not currently regulated for land use. The proposed Municipal Code.Amendment would amend the Rosemead Zoning Code by adding definitions for `Boarding house or rooming house" and "Short-term rental," and prohibit boarding/rooming house and short-term rental of residential homes in the residential zones (R-1, R-2, and R-3). The proposed Code Amendment would not affect residential rental (e.g., single-family dwellings, two-family dwellings (duplex), multiple -family dwellings (three or more units) with a lease or rental agreement that is not short-term. ENVIRONMENTAL DETERMINATION This Ordinance is exempt from additional environmental review under the California Environmental Quality Act (California Public Resources Code §§ 21000, et seq., "CEQA") and CEQA regulations (14 California Code of Regulations §§ 15000. Et seq.) because it establishes rules and procedures to permit operation of existing facilities; consists only of minor revisions and clarifications to existing regulations and specification of procedures related thereto; and consists of actions taken to assure the maintenance, protection and enhancement of the environment. This Ordinance, therefore, does not have the potential to cause significant effects on the environment.. (14 California Code of Regulations §§ 15060(c)(2), 15061(b)(3).) Furthermore, this Ordinance is categorically exempt from further CEQA review under 14 Cal. Code Regs. §§ 15301, 15305, and 15308. STAFF RECOMMENDATION That the Planning Commission: Planning Commission Meeting June 4, 2018 Page 2 of 7 1. Conduct a public hearing and receive public testimony; and 2. Adopt Planning Commission Resolution No. 18-10 with findings (Exhibit "A"), a resolution recommending that the City Council adopt Ordinance No. 980 (Exhibit "B") for the approval of MCA 18-02. Background The recent increase in the number of short-term rental units in Rosemead and their potential effects on residential neighborhoods has led to discussion on whether or not the use should be regulated. Short-term rentals consist of either home -sharing (e.g., homeowner renting a room), and vacation rentals where the entire unit is used exclusively for guests as a way of generating income for the property owner. Although many short-term rentals have negligible effect to the surrounding residential neighborhood, certain short-term uses have created problems, including excessive noise, glare (lights at night), high traffic volume, lack of street parking, trash & debris, and others. An example is a short-term rental use in a single family residential neighborhood where approximately 30 beds were individually rented at $20 per night. The neighborhood saw an increase in traffic, street parking shortage, public disturbance, and general concerns for safety. The use also placed a strain on the City's resources with Code Enforcement violations and calls for law enforcement services. City Council Workshop On March 27, 2018, the City Council held a duly noticed workshop to discuss short-term rental of residential homes (among other upcoming Code Amendments). The following is a summary of the City Council input for the Planning Commission's consideration: • The Council discussed three potential options: o Prohibit entirely short-term rental of homes and boarding houses in residential zones. o Allow short-term rentals with licensing (e.g., Conditional Use Permit and business license) and TOT (Transient Occupancy Tax) assessment. o Allow room rental with owner residing on the property. Entire home rental not allowed. • Boarding house or rooming house (rented to two or more separate rental agreements or leases) is not an appropriate use in residential zones. Potential problem when a renter converts the home into a boarding/rooming house. • Measures for how the City would enforce short-term rental uses. Planning commission Meeting June 4, 2018 Page 3 of 7 Zoning Code Sections The following Zoning Code Sections would be amended with the approval of MCA 18- 02: Rosemead Municipal Code Section 17.04.050 (Definitions) New definition for "boarding house or rooming house" would be added to the Zoning Code. In general, boarding house or rooming house is defined as a dwelling unit where sleeping rooms are rented to multiple transients (two or more) regardless if the owner, agent or manager resides on the property. "Short- term rental" definition is added to state that short-term rental is occupancy of thirty (30) days or less. Rosemead Municipal Code Section 17.12.020 (Residential District Land Uses and Permit Requirements) Table 17.12.020.1 (Uses in Residential Districts) is amended to identify that "boarding house or rooming house," and "short-term rental" is not permitted in R- 1, R-2, and R-3 zones. The effect of the above language would prohibit all short-term rental (as defined) of less than 30 -days in the R-1, R-2, and R-3 zones. Boarding house or rooming house where sleeping rooms are rented to individuals with two or more separate rental agreements or leases, either written or oral or implied, would be prohibited regardless of occupancy period. The proposed Code Amendment, however, would not have an effect on the following uses and activity: • "Supportive Housing," "Transitional Housing," or "Residential Care Facilities which are already defined and permitted in the residential zones and subject to State status. • Residential rental (home, duplex, triplex, apartments, etc.) that is longer than 30 - days, as rental period in excess of 30 -days is not defined as "short-term." MUNICIPAL CODE REQUIREMENTS Per Rosemead Municipal Code Section 17.152.060, amendments to the Zoning Code maybe approved only if all of the following findings are first made: 1. The proposed amendment is consistent with the General Plan and any applicable specific plan; The proposed amendment is consistent with the General Plan Land Use Element Goal 1 to, "Maintain stable and attractive single-family residential Planning Commission Meeting June 4, 2018 Paoe 4 of 7 neighborhoods." Short-term rental and residential homes and boardinghouses adversely affect the characteristics of a residential neighborhood with increase in traffic, noise and glare. Transient short-term occupancy use, therefore, does not promote stable character to residential neighborhoods. 2. The proposed amendment will not be detrimental to the public interest, health, safety, convenience, or welfare of the City; and The proposed amendment will not be detrimental to the public interest, health, safety, convenience, or welfare of the City, as its goal is to protect and maintain the residential characteristics of neighborhoods. 3. The proposed amendment is internally consistent with other applicable provisions of the Zoning Code. The proposed amendment is internally consistent with the Zoning Code in that the Ordinance defines and establishes guidelines for short-term rental of residential homes, and boarding and rooming houses which were silent and undefined. The amendment ensures that short-term transient uses are prohibited in residential zones in order to protect the residential characteristics of established neighborhoods. PUBLIC NOTICE PROCESS This item has been noticed through the regular agenda notification process, which includes publication in the Rosemead Reader and postings of the notice at six public locations. Prepared and SyKmi�ted by: Ben of Community Development EXHIBITS: A. Planning Commission Resolution No. 18-10 B. Draft Ordinance No. 080 Planning Commission Meeting June 4, 2018 Page 5 of 7 EXHIBIT "A" PC RESOLUTION 18-10 A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF ROSEMEAD, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, RECOMMENDING THAT THE CITY COUNCIL ADOPT ORDINANCE NO. 980 FOR THE APPROVAL OF MCA 18-02, AMENDING TITLE 17 (ZONING) OF THE ROSEMEAD MUNICIPAL CODE TO ADOPT NEW REGULATIONS FOR SHORT TERM RENTAL OF RESIDENTIAL HOMES AND BOARDING HOUSES WHEREAS, Section 17.152.060 of the Rosemead Municipal Code provides the criteria for a Zoning Code Amendment; WHEREAS, Sections 65854 and 65855 of the California Government Code and Section 17.152.040 of the Rosemead Municipal Code authorizes the Planning Commission to review and make recommendations to the City Council regarding amendments to the City's Zoning Code; WHEREAS, on May 24, 2018, a notice was published in the Rosemead Reader and notices were posted in six public locations, specifying the availability of the proposal, and the date, time; and location of the public hearing for Municipal Code Amendment 18-02; WHEREAS, on June 4, 2018, the Planning Commission held a duly noticed and advertised public hearing to receive oral and written testimony relative to Municipal Code Amendment 18-02; and WHEREAS, the Rosemead Planning Commission has sufficiently considered all testimony presented to them in order to make the following determination. NOW, THEREFORE, BE IT RESOLVED by the Planning Commission of the City of Rosemead as follows: SECTION 1. This Ordinance is exempt from additional environmental review under the California Environmental. Quality Act (California Public Resources Code §§ 21000, et seq., "CEQA") and CEQA regulations (14 California Code of Regulations §§ 15000. Et seq.) because it establishes rules and procedures to permit operation of existing facilities; consists only of minor revisions and clarifications to existing regulations and specification of procedures related thereto; and consists of actions taken to assure the maintenance, protection and enhancement of the environment. This Ordinance, therefore, does not have the potential to cause significant effects on the environment. (14 California Code of Regulations §§ 15060(c)(2), 15061(b)(3).) Planning Commission Meeting June 4, 2018 Page 6 of 7 Furthermore, this Ordinance is categorically exempt from further CEQA review under 14 Cal. Code Regs. §§ 15301, 15305, and 15308. SECTION 2. The Planning Commission HEREBY FINDS AND DETERMINES that facts do exist to justify approving Municipal Code Amendment 18-02, in accordance with Section 17.152.060 of the Rosemead Municipal Code as follows: A. The proposed amendment is consistent with the General Plan and any applicable specific plan; FINDING: The proposed amendment is consistent with the General Plan Land Use Element Goal 1 to, "Maintain stable and attractive single-family residential neighborhoods." Short-term rental and residential homes and boarding houses adversely affect the characteristics of a residential neighborhood with increase in traffic, noise and glare. Transient short-term occupancy use, therefore, does not promote stable character to residential neighborhoods. B. The proposed amendment will not be detrimental to the public interest, health, safety, convenience, or welfare of the City; and FINDING: The proposed amendment will not be detrimental to the public interest, health, safety, convenience, or welfare of the City, its goal is to protect and maintain the residential characteristics of neighborhoods. C. The proposed amendment is internally consistent with other applicable provisions of the Zoning Code. FINDING: The proposed amendment is internally consistent with the Zoning Code in that the Ordinance defines and establishes guidelines for short-term rental of residential homes, and boarding and rooming houses which were silent and undefined. The amendment ensures that short-term transient uses are prohibited in residential zones in order to protect the residential characteristics of established neighborhoods. SECTION 3. The Planning Commission HEREBY RECOMMENDS City Council adoption of Ordinance No. 980 for the approval of Municipal Code Amendment 18-02, for the amendment of Title 17 (Zoning) of the Rosemead. Municipal Code regarding short-term rental of residential homes and hoarding houses. SECTION 4. This resolution is the result of an action taken by the Planning Commission on June 4, 2018, by the following vote: AYES: NOES: ABSTAIN: ABSENT: Planning Commission Meeting June 4, 2018 Page 7 of 7 SECTION 5. The Secretary shall certify to the adoption of this resolution and shall transmit copies of same to the Rosemead City Clerk. PASSED, APPROVED, and ADOPTED this 4th day of June 2018. Sean Dang, Chair CERTIFICATION I hereby certify that the foregoing is a true copy of a resolution adopted by the Planning Commission of the City of Rosemead at its regular meeting, held on the 16th day of April 2018, by the following vote: AYES: NOES: ABSTAIN: ABSENT: Ben Kim, Secretary APPROVED AS TO FORM: Kane Thuyen, Planning Commission Attorney Burke, Williams & Sorensenj LLP EXHIBIT B ORDINANCE NO. 980 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ROSEMEAD, CALIFORNIA AMENDING TITLE 17 (ZONING) OF THE ROSEMEAD MUNICIPAL CODE REGARDING SHORT TERM RENTAL OF RESIDENTIAL HOMES AND BOARDING HOUSES THE CITY COUNCIL OF THE CITY OF ROSEMEAD DOES ORDAIN AS FOLLOWS: Section 1. Findings. The City Council HEREBY FINDS AND DETERMINES that facts do exist to justify approving Municipal Code Amendmentl8-02, in accordance with Section 17.152.060 of the Rosemead Municipal Code ("RMC") as follows: A. The proposed amendment is consistent with the General Plan and any applicable specific plan; FINDING: The proposed amendment is consistent with the goals, policies, and objectives of the General Plan. It is a goal of the Land Use Element of the General Plan to enhance and maintain the quality and character of Rosemead's residential neighborhoods. To ensure that the residential character is maintained, a General Plan policy is that the City should actively promote the maintenance of properties and building through code enforcement. The proposed code amendments will provide the City with additional tools for ensuring safe and decent housing while working to enhance the visual quality of residential neighborhoods and ensure safe and decent housing for all City residents. This ordinance is tailored to preserve the residential character of a neighborhood by prohibiting commercial enterprises such as short-term rental and boarding house businesses in the residential zones and while respecting the rights to privacy and association that the California Supreme Court recognized in City of Santa Barbara v. Adamson (1980) 27 Cal.3d 123 and related cases. B. The proposed amendment will not be detrimental to the public interest, health, safety, convenience, or welfare of the City; and FINDING: Adopting this Ordinance is in the public interest because it is designed to protect public health and safety while also promoting public welfare. The City has in recent years experienced a great number of short-term rental of residential homes and boarding houses that house temporary residents in residential housing, often in unsafe conditions. Short -tern tenants that stay only for one night, a week, or even a few months in its residential area have little interest in public agencies or the welfare of its citizenry as they do not participate in local government and community organizations that strengthen a City and its residents. This Ordinance promotes public health, safety, and general welfare and serves the goals and purposes of the RMC. C. The proposed amendment is internally consistent with other applicable provisions of [the] Zoning Code. FINDING: The City's ability to exercise its powers in accordance with Article XI, § 7 of the California Constitution to regulate land use is well-established. This ordinance is intended to regulate aesthetics, traffic, parking, public peace, and other, similar, matters related to public health, safety, and welfare. Similar regulations that prohibit or regulate transient commercial uses of residential property have been upheld in cases such as Ewing v. City of Carnzel-By-The-Sea (1991) 234 Cal.App.3d 1579 because such regulations are rationally related to preservation and enhancement of the residential character of the neighborhood and stability of the community. Section 2. RMC § 17.04.050 [Definitions — General] is amended as follows: A. Addition of New Definitions. RMC § 17.04.050 is amended to add new definitions for "boarding house or rooming house" and "short-term rental, as follows: "Boarding house or rooming house" means a dwelling unit where sleeping rooms are rented to individuals with two or more separate rental agreements or leases either written or oral or implied, whether or not au owner, agent or rental manager is in residence. Meals may be provided to boarders in connection with the renting of sleoing rooms or common kitchen facilities may be provided. This definition does not include household' convalescent facility' residential care facility; group home; emergency shelter; supportive housing' transitional housing: hotel• motel: or other extended lodging facility as these terms are defined in this code." "Short-term rental" means any dwelling that is occupied or intended or designed to be occupied on a short- term basis for occupancy duration of thirty (30) calendar days or less." B. Amendment to Existing Definition. The existing definition of "family" contained in RMC § 17.04.050 is amended as follows: "Family" means any group of individuals living together as the functional equivalent of a family where the residents may share living expenses, chore$, eat meals together and are a close group with social, economic, and psychological commitments to each other. A family includes, for example, the residents of residential care facilities and group homes for people with disabilities. A family does not include larger institutional group living situations such as dormitories, fraternities, sororities, monasteries, er--nunneries, or boarding houses. Section 3. RMC § 17.12.020 is amended to read as follows: Table 17.12.020.1, Uses in Residential Districts, identifies the uses of land allowed in each residential zoning district, and the land use permit required, if any, to establish each use. Where the last column in the tables (Specific Use Regulations) includes a section reference number, the regulations in the referenced section apply to the use in addition to those shown in the table. Table 17.12.020.1: USES IN RESIDENTIAL DISTRICTS Land Use Requirements by District Specific Use Regulations R 2 ! R-3 Residential Uses Single-family Dwellings See section 17.12,030 for district specific requirements. See Chapter 17.42 for Manufactured Homes. Two-family Dwellings (Duplex) ----- P P See section 17.12.030 for district specific requirements._ Multiple -family Dwellings ----- ----- DR See section 17.12.030 for district specific requirements. Second Dwelling Unit, Single -story p p P See Article 3, Chapter 17.30, Section 17.30.190 (Second Dwelling. Units) Second Ravelling Unit, Two-story CUP CUP CUP See Article 3, Chapter 17.30, Section 17.30.190 (Second Dwelling Units) . Section 4. Environmental Review. This Ordinance is exempt from additional environmental review under the California Environmental Quality Act (California Public Resources Code §§ 21000, et seq., "CEQA") and CEQA regulations (14 California Code of Regulations §§ 15000. Et seq.) because it establishes rules and procedures to permit operation of existing facilities; consists only of minor revisions and clarifications to existing regulations and specification of procedures related thereto; and consists of actions taken to assure the maintenance, protection and enhancement of the environment. This Ordinance, therefore, does not have the potential to cause significant effects on the environment. (14 3 See Article 3, Chapter 17.46 (Mobile Home Parks and Park Mobile Home Parks CUP CUP .CUP - Conversions) - Boarding house or rooming house -_ -� -_ Not permitted Short-term rental ----- ----- --- - Not permitted - Care Uses Child Care Home, Small Family See Article 3, Chapter 17.30, Section 17.30.160 (Large and (eight or fewer) - P P P Small Family Child Day Care Home Facilities). Child Care Home, Large Family See Article 3, Chapter 17.30, Section 17.30.160 (Large and (nine to 14) AUP AUP Small Family Child Day Care Home Facilities) Residential Care Facilities (six or fewer) P P P Residential Care Facilities (7 or more) ----- CUP CUP Supportive Housing P P P - Transitional Housing P P P - Agriculture and Animal Related Uses Animal Keeping A A A See Title 6 (Animals) ofthe Municipal Code Horticulture - Private A A A Other Uses See Section 17.12.030 and Article 3 Chapter 17.32 (Accessory Accessory Structures A A A Structures) Educational Institution - Private CUP CUP CUP - Educational Institution - Public P P P Home Occupations, including A A A See Title 5, Chapter S.41 (Home Occupations) Cottage Food Operations. Lighted outdoor sporting field or CUP CUP CUP See Article 4, Section 17.68.060 court (tennis, basketball, etc.) Places of Religious Assembly CUP CUP CUP Public Buildings and Facilities AUP AUP AUP - PublicUtilityFacilities P P P - Telecommunication Facilities, not including Wireless CUP CUP CUP Telecommunication Facilities Temporary Uses and Special See Article 5, Chapter 17.124 (Temporary Use Permits and Special Events) Events Notes: P .Permitted Use A Permitted Accessory Use - AUP Administrative Use Permit Required CUP Conditional Use Permit Required ----- Use Not Allowed Section 4. Environmental Review. This Ordinance is exempt from additional environmental review under the California Environmental Quality Act (California Public Resources Code §§ 21000, et seq., "CEQA") and CEQA regulations (14 California Code of Regulations §§ 15000. Et seq.) because it establishes rules and procedures to permit operation of existing facilities; consists only of minor revisions and clarifications to existing regulations and specification of procedures related thereto; and consists of actions taken to assure the maintenance, protection and enhancement of the environment. This Ordinance, therefore, does not have the potential to cause significant effects on the environment. (14 3 California Code of Regulations §§ 15060(c)(2), 15061(b)(3).) Furthermore, this Ordinance is categorically exempt from further CEQA review under 14 Cal. Code Regs. §§ 15301, 15305, and 15308. Section 5. Construction. This Ordinance must be broadly constructed in order to achieve the purposes stated in this Ordinance. It is the City Council's intent that the provisions of this Ordinance be interpreted or implemented by the City and others in a manner that facilitates the purposes set forth in this Ordinance. Section 6. Enforceability. Repeal of any provision of the RMC does not affect any penalty, forfeiture, or liability incurred before, or preclude prosecution and imposition of penalties for any violation occurring before this Ordinance's effective date. Any such repealed part will remain in full force and effect for sustaining action or prosecuting violations occurring before the effective date of this Ordinance. Section 7. Severability. If any part of this Ordinance or its application is deemed invalid by a court of competent jurisdiction, the City Council intends that such invalidity will not affect the effectiveness of the remaining provisions or applications and, to this end, the provisions of this Ordinance are severable. Section 8. Effective Date. This Ordinance shall take effect thirty (30) days after its adoption. Section 9. Publication. The City Clerk shall certify to the adoption of this Ordinance and shall publish a summary of this Ordinance and post a certified copy of the full Ordinance in the office of the City Clerk at least five days prior to the adoption and within 15 days after adoption of the Ordinance, the City Clerk shall publish a summary of the Ordinance with the names of the Council Members voting, for and against the Ordinance. This Ordinance shall take effect thirty (30) days after the date of its adoption. PASSED, APPROVED, AND ADOPTED by the City Council of the City of Rosemead, County of Los Angeles of the State of California on ATTEST: Ericka Hernandez, City Clerk APPROVED AS TO FORM: Rachel H. Richman, City Attorney Burke, Williams, & Sorensen, LLP C! Steven Ly, Mayor