The Santa Ana City Council approved a ban on short-term rentals operating in the city, effective immediately Tuesday night, April 3.
Companies such as Airbnb and Vrbo have enabled property owners to rent all or part of their homes on a short-term basis, but city officials said those stays can result in excessive noise, parking problems and trash. Officials also argued in a staff report to the City Council that the estimated 1,100 active short term rentals across Santa Ana take possible housing opportunities away from permanent residents.
There are 112 short term rentals that have received enforcement notices and citations, 84 of which involve properties owned or managed by a company or an absentee owners, city officials said. Others are run by owners who still live in the residence.
Short term rentals have never been addressed in Santa Ana’s municipal code. City Attorney Sonia Carvalho said Tuesday night the status quo therefore has been to treat the rentals as illegal.
City staff recommended the council adopt the ordinances prohibiting their operation.
“The proposal tonight is for council to adopt urgency ordinance to affirm current code as it’s written, as well as ensuring that we are legally defensible on the existing regulatory framework,” Minh Thai, executive director of planning and building, said.
Identifying the properties in the city has primarily relied on residents’ complaints and listing found on websites, officials said.
“In the five years that I’ve been an elected official in the city, this is one of the No. 1 concerns that I’ve heard from our neighborhoods and our residents in this city,” said Councilmember David Penaloza.
“I feel for the few that live on the property and are trying to make some extra income,” Penaloza said, “but the majority of the ones that are proliferating our city are causing problems in our neighborhoods.”
The council unanimously approved an urgency ordinance, which put the ban in place immediately, but was divided 4-3 on a permanent ordinance that will require a second vote for implementation. Penaloza supported that first reading along with colleagues Johnathan Hernandez, Jessie Lopez and Benjamin Vazquez.
“An urgent ordinance banning short term rentals would not be an effective or appropriate response to what the people of Santa Ana want/need,” one operator, who has run a short term rental in the city for the past seven years, said in a letter to the council. “A citywide ban would also be a huge loss for potential revenue for the city.”
Councilmember Phil Bacerra suggested having staff come back in July with information on how the city might allow a limited number of rentals in limited zones and also start charging the tax on a night’s stay that is already charged at local hotels as a revenue source.
His idea failed to garner enough support from the council.
“I do think while these things can be nuisances, I also see the fact that we can allow them in a limited capacity,” Bacerra said.
In supporting the urgency ordinance, Councilmember Thai Viet Phan said, “Staff has pending enforcement and for them to go forward with the most clarification possible, I want them to be able to do that because there are 84 illegal, short term rentals owned by LLCs and absentee property owners who are creating massive damage to our neighborhoods.”
Running a short-term rental could lead to a fine of up to $5,000, up to 6 months in jail, or both. City spokesperson Paul Eakins said he could not immediately answer how the city will address existing short term rentals operating in the city.
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