6393ORDINANCE NO. 6 3 9 3
AN ORDINANCE OF THE CITY OF ANAHEIM AMENDING
SECTIONS 4.05.100, 4.05.110, 4.05.140 AND 4.05.180 OF
CHAPTER 4.05 (SHORT-TERM RENTALS) OF TITLE 4
(BUSINESS REGULATION) OF THE ANAHEIM MUNICIPAL
CODE RELATING TO SHORT-TERM RENTALS, AND
FINDING AND DETERMINING THAT THIS ORDINANCE IS
NOT SUBJECT TO THE CALIFORNIA ENVIRONMENTAL
QUALITY ACT (CEQA) PURSUANT TO SECTIONS
15060(C)(2) AND 15060(C)(3) OF THE STATE CEQA
GUIDELINES, BECAUSE IT WILL NOT RESULT IN A DIRECT
OR REASONABLY FORESEEABLE INDIRECT PHYSICAL
CHANGE IN THE ENVIRONMENT AND IS NOT A PROJECT,
AS DEFINED IN SECTION 15378 OF THE CEQA GUIDELINES.
WHEREAS, pursuant to the City's police power, as granted broadly under Article XI,
Section 7 of the California Constitution, this City Council has the authority to enact and enforce
ordinances and regulations for the public peace, health, safety and/or welfare of the City and its
residents; and
WHEREAS, pursuant to the California Environmental Quality Act (Public Resources Code
Section 21000 et seq.; herein referred to as "CEQA") and the State of California Guidelines for
Implementation of the California Environmental Quality Act (commencing with Section 15000 of
Title 14 of the California Code of Regulations; herein referred to as the "State CEQA Guidelines"),
the City is the "lead agency" for the preparation and consideration of environmental documents
for this ordinance; and
WHEREAS, the City Council finds and determines that this ordinance is not subject to
CEQA pursuant to Sections 15060(c)(2) and 15060(c)(3) of the State CEQA Guidelines, because
it will not result in a direct or reasonably foreseeable indirect physical change in the environment
and is not a "project," as that term is defined in Section 15378 of the State CEQA Guidelines; and
WHEREAS, the City Council finds and determines that this ordinance is a matter of City-
wide importance and necessary for the preservation and protection of the public peace, health,
safety and/or welfare of the community and is a valid exercise of the local police power and in
accord with the public purposes and provisions of applicable State and local laws and
requirements.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ANAHEIM DOES
ORDAIN AS FOLLOWS:
SECTION 1. That paragraph .0115 of subsection .010 of Section 4.05. 100 (Conditions of
Permit Issuance and Renewal; Operational Requirements) of Chapter 4.05 (Short -Term Rentals)
of Title 4 of the Anaheim Municipal Code be, and the same is, hereby amended to read in full as
follows:
.0 115 If an enforcement officer has received a complaint concerning a
suspected violation of this chapter or of the code or any applicable law, rule, or
regulation pertaining to the use or occupancy of a short-term rental unit, or if the
enforcement officer has reason to believe that such a violation has occurred, the
enforcement officer may notify the owner, the owner's agent and/or the local
contact person of the complaint or suspected violation and the notified person shall
cooperate in facilitating the investigation and the correction of the suspected
violation. Failure of the owner, the owner's agent and/or the local contact person
to affirmatively respond to the officer's request within 45 minutes by reasonably
cooperating in facilitating the investigation and the correction of the suspected
violation shall be deemed to be a major violation of this chapter. Notwithstanding
the foregoing, it is not intended that an owner, the owner's agent or the local contact
person act as a peace officer or place himself or herself in an at -risk situation.
SECTION 2. That paragraph .0120 of subsection .010 of Section 4.05. 100 (Conditions of
Permit Issuance and Renewal; Operational Requirements) of Chapter 4.05 (Short -Term Rentals)
of Title 4 of the Anaheim Municipal Code be, and the same is, hereby amended to read in full as
follows:
.0120 Prior to occupancy pursuant to each separate occasion of rental of a
short-term rental unit, the owner or the owner's agent shall enter into a written rental
agreement with a responsible person which establishes and sets out the terms and
conditions of the rental agreement and requires the responsible person to (1)
provide his or her name, age, address, and driver's license number or passport
number and agree to be accessible to the owner, the owner's agent and the local
contact person (if any) by telephone at all times, and (2) acknowledge his or her
understanding of all City of Anaheim short-term rental rules and agree that he or
she is liable for any fines incurred by occupants and legally responsible for
compliance by all occupants of the short-term rental unit with all provisions of this
chapter and this code. Said written rental agreement shall also include the
following terms, notifications and disclosures, a copy of which rental agreement
shall be given to each occupant and shall also be posted in a conspicuous location
inside the short-term rental unit and shall be readily available for inspection upon
request of any enforcement officer or the city's Police Department:
(a) The maximum number of occupants that are permitted and
notification that failure to conform to the maximum occupancy is a violation of this
chapter.
(b) The number of off-street parking spaces provided on the short-
term rental property and the maximum number of vehicles that are permitted, along
with a summary of all applicable parking rules.
(c) The trash pick-up day(s) and applicable rules and regulations
pertaining to leaving or storing trash on the exterior of the short-term rental
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property.
(d) Notification that occupants may be cited or fined by the city
and/or that the owner or the owner's agent has the right to immediately terminate
the rental agreement and immediately evict the responsible person and all occupants
upon any violation of this chapter or the code by any occupant.
(e) The name of the owner's agent and the name of the local contact
person (if any) and a telephone number at which those persons may be reached at
all times and 9-1-1 Emergency information.
(f) Notification of the city's Loud and Unreasonable Noise
Ordinance (Chapter 6.73 of the code), which restricts excessive noise between the
hours of 10 p.m. and 7 a.m.
(g) A clear and conspicuous statement that occupants must obey the
requirements set forth in this chapter even if these requirements are more strict than
the applicable covenants, conditions and restrictions or other rules or regulations of
the governing body of any homeowners' association or maintenance organization
having jurisdiction over the short-term rental property.
(h) A summary of any applicable covenants, conditions and
restrictions and rules and regulations, including pool location and hours, of the
governing body of any homeowners' or maintenance association having jurisdiction
over the short-term rental property. It is the responsibility of the owner and not the
city to investigate, verify with the relevant homeowners' association or
maintenance organization, and determine that the use of a dwelling as a short-term
rental does not violate any applicable covenants, conditions and restrictions or any
of the regulations or rules of the homeowners' association or maintenance
organization having jurisdiction in connection with the short-term rental property.
Notwithstanding the city's issuance of a short-term rental permit, the city shall not
have any obligation or be responsible for making a determination regarding whether
or not the issuance of a short-term rental permit or the use of a dwelling as a short-
term rental is permitted under any covenants, conditions and restrictions or any of
the regulations or rules of the homeowners' association or maintenance
organization having jurisdiction in connection with the short-term rental property,
and the city shall have no enforcement obligations in connection with such
covenants, conditions and restrictions or such regulations or rules.
(i) A copy of this chapter of the code, as the same may be amended
from time to time.
0) Notification that no musical instrument, loudspeaker, amplified
or reproduced sound, or any machine or device for the production or reproduction
of any sound shall be used outside or be audible from the outside of a short-term
rental unit between the hours of 10:00 p.m. and 9:00 a.m.
3
(k) Notification that occupants shall comply with "quiet time,"
meaning that they may not engage in activities outside of a short-term rental unit
between the hours of 10:00 p.m. and 9:00 a.m. that involve the use of swimming
pools, hot tubs, spas, tennis and paddleboard courts, play equipment or other similar
and related improvements or equipment and other activities that might be expected
to cause discomfort or annoyance to any reasonable person of normal sensitivity
residing in the area.
(1) Notification that if an enforcement officer investigates a
suspected violation pertaining to the use or occupancy of a short-term rental unit,
the owner, the owner's agent and/or the local contact person, upon the officer's
request to cooperate in facilitating the investigation and correction of the suspected
violation, is required to affirmatively respond to the officer's request within 45
minutes by reasonably cooperating in facilitating the investigation and the
correction of the suspected violation and failure to do so is a major violation of
Chapter 4.05 of the Anaheim Municipal Code.
SECTION 3. That Section 4.05.110 (Audit) of Chapter 4.05 (Short -Term Rentals) of Title
4 of the Anaheim Municipal Code be, and the same is, hereby amended to read in full as follows:
4.05.110 AUDIT.
Each owner, owner's agent or representative of any owner (i) shall provide
to the Planning Director or the Planning Director's authorized representative such
records relating to the use and occupancy of the short-term rental unit, and (ii) shall
cooperate in the conduct of inspections of the short-term rental unit, as may be
reasonably requested by the Planning Director or the Planning Director's authorized
representative, to determine that the objectives and conditions of this chapter are
met.
SECTION 4. That subsection .020 (Major and Minor Violations) of Section 4.05.140
(Procedure for Imposition of Modification, Suspension and/or Revocation of Short -Term Rental
Permit) of Chapter 4.05 (Short -Term Rentals) of Title 4 of the Anaheim Municipal Code be, and
the same is, hereby amended to read in full as follows:
.020 Major and Minor Violations. For purposes of this section,
.0201 A "major violation" consists of any of the following:
(1) Construction without a permit, excluding emergency repairs that
are subsequently permitted;
(2) A violation of prohibitions on outdoor activities on short-term
E
rental properties;
(3) A short-term rental for less than the 3 -night minimum;
(4) Exceeding occupancy limitations, including without limitation
owner -imposed occupancy limits pursuant to paragraph .0103(e) of subsection .010
of Section 4.05. 100 of this chapter;
(5) A violation of the prohibition for use of the short-term rental for
non -lodging purposes, including but not limited to for weddings, receptions,
parties, commercial functions, advertised conferences, or other similar assemblies
that are separate from the purpose of lodging;
(6) A violation of the requirement that the owner, the owner's agent
and/or the local contact person, upon an enforcement officer's request,
affirmatively respond within 45 minutes and reasonably cooperate in facilitating an
investigation and the correction of a suspected violation of the Chapter.
(7) The unpermitted use of a garage as a game room or for sleeping
purposes;
(8) A failure of the owner to obtain the signature of the primary
occupant of the short-term rental acknowledging the rules;
(9) A violation of the city's Loud and Unreasonable Noise
Ordinance;
(10) A failure to pay the Transient Occupancy Tax (TOT) required
for the short-term rental;
(11) Criminal activities on the premises; or
(12) Two (2) minor violations of the same type in connection with
the same short-term rental property during any continuous period of twelve (12)
months or four (4) minor violations of different types in connection with the same
short-term rental property within any continuous period of twelve (12) months.
SECTION 5. That paragraph .0201 of subsection .020 of Section 4.05.180 (Termination
and Amortization of Pre -Moratorium Short -Term Rentals) of Chapter 4.05 (Short -Term Rentals)
of Title 4 of the Anaheim Municipal Code be, and the same is hereby, amended to read in full as
follows:
.0201 Not earlier than ninety (90) calendar days but no later than one
hundred eighty (180) calendar days after the effective date of this ordinance, the
owner may file an application with the Planning Director for the hardship extension,
along with such fee or fees as may be established by the City Council by resolution.
5
The Planning Director may, in his or her sole discretion, extend the deadline for
filing such an application. The owner shall sign the application under penalty of
perjury. The application shall set forth the amount of additional time that the owner
contends is necessary, beyond the period provided in subsection .020 of this section,
to recoup the costs the owner reasonably invested for short-term rental use which
cannot be recouped once the short-term rental use is terminated. The application
shall fully set forth the owner's justification for such additional time. The
application shall also include the following information:
(a) The date the property was acquired by the owner, the price and
other terms of the acquisition that materially affected the price, and the purpose for
which the property was acquired by the owner. If the property was acquired by a
means other than an arms -length purchase (including without limitation a gift or
inheritance), then the owner shall provide information concerning the most recent
arms -length purchase involving the property.
(b) Each use the owner has made of the property since the owner's
acquisition and the period of each such use. If the property was acquired by a means
other than an arms -length purchase (including without limitation a gift or
inheritance), then the owner also provide information concerning the most recent
arms -length purchase involving the property.
(c) A detailed listing of expenditures made by the owner for capital
improvements to the property for the purpose of putting the property to short-term
rental use, since it was acquired, including the purpose of each expenditure, the
amount, the date, the payee, and any other relevant information for each
expenditure. The owner shall provide receipts, executed construction contracts
and/or other written proof of each expenditure.
(d) A detailed listing of expenditures made by the owner for capital
improvements to the property other than those made for the purpose of putting the
property to short-term rental use, since it was acquired, including the purpose of
each expenditure, the amount, the date, the payee, and any other relevant
information for each expenditure. The owner shall provide receipts or other written
proof of the each expenditure.
(e) A detailed listing of all expenditures incurred by the owner for
the purpose of putting the property to short-term rental use, other than capital
expenditures, including the purpose of each expenditure, the amount, the date, the
payee, and any other relevant information for each expenditure. The owner shall
provide receipts or other written proof of each expenditure.
(f) A detailed listing of all gross receipts received in connection
with the use of the property for short-term rental purposes during such time as it
was lawful to use the property for such purposes.
rl
(g) For each short-term rental use that has been made of the property
since such uses were permitted, the owner shall provide details on the duration of
the rental, the amount of rent and other payments made to the owner for the rental,
and the expenses directly associated with that rental (including but not limited to
commission fees). The owner shall provide the date the property first was used as
a short-term rental, the number of days that the property has been occupied as a
short-term rental since that use commenced, and the average rent paid per day for
short-term rental use since that use commenced. The owner shall state whether
during the period that short-term rental use has been allowed for the property, the
property has been put to any other uses (including without limitation residential use
by the owner or others) and, if so, detail the number of days for each such use and
any income generated from each such use.
(h) A detailed projection of the income and expenses that are
anticipated if the requested hardship extension is approved.
(i) An identification and description of any contracts with third
parties that commit the property to a future short-term rental use to a third party,
including the dates of the committed use, the rental to be charged for the use, and
any other relevant information relating to the contracted future use. The owner
shall provide written evidence of the contacts identified.
0) An identification and description of any long term commitments,
whether leases, mortgages, or other commitments, that have been made by the
owner in reliance on the ability to use the property for short-term rental purposes.
The owner shall provide written documentation for each such commitment.
(k) The fair market value of the short-term rental property had there
been no prohibition on short -term -rentals in zones permitting or conditionally
permitting residential uses compared to the value of the short-term rental property
as affected by the amortization provisions of this Section 4.05.180. The owner shall
provide the factual basis and analysis substantiating these values, including
comparable sales information, income approach elements and/or cost approach
elements.
(1) Whether there has been or will be an increment in value accruing
to the property as a result of the STR Regulations and Ban on New STRs Ordinance
that will effectively limit the number of short-term rentals available in zones that
permit or conditionally permit residential uses for the pre -moratorium short-term
rental, and the factual basis and analysis substantiating that increment in value.
(m) Whether there has been or will be an increment in potential
monthly rental income that the short-term rental property could generate from
short-term rental use for the remaining period of allowed short-term rental use, by
having a pre -moratorium right to short-term rental use while other properties (in
zones permitting or conditionally permitting residential uses) could not be used for
7
short-term rental purposes, other than those properties that benefitted from the pre -
moratorium right to short-term rental use. If so, the owner shall provide the factual
basis and analysis substantiating the increment in potential monthly income for the
period of permitted use.
(n) The amortized or depreciated value of the short-term rental
property used for tax purposes.
(o) A financial analysis demonstrating the amount of time that will
be required for the owner to recoup the costs reasonably invested for short-term
rental use to the extent such costs could not already have been reasonably recouped
during the period of short-term rental use of the property and cannot be recouped
once the short-term rental use is terminated. The analysis should identify reference
sources for each item of data included and set forth the basis for all assumptions
made. The Planning Director may provide the owner with a requested form and/or
format for the financial analysis, and if provided, such form and/or format shall be
completed and submitted by the owner.
After receiving the application, the Planning Director may request any
additional information reasonably necessary to ascertain relevant facts and
circumstances; and if requested, the owner shall provide the requested information
within thirty (30) calendar days of the Planning Director's request. The Planning
Director may deem an application to be incomplete, and reject the application or
return it to the owner for additional information, if the information set forth in the
application is not fully provided in a manner that is comprehensive and
understandable and that demonstrates how the factual information provided leads
to the conclusion that the requested extension is necessary. The Planning Director,
in his or her sole and absolute discretion, may waive one or more of the items listed
above if he or she determines the purpose and intent of the amortization provisions
of this section can be adequately achieved without the submittal of such item(s),
but no waiver shall be effective unless in writing and signed by the Planning
Director.
SECTION 6. SEVERABILITY.
The City Council of the City of Anaheim hereby declares that should any section,
paragraph, sentence, phrase, term or word of this ordinance be declared for any reason to be
invalid, it is the intent of the City Council that it would have adopted all other portions of this
ordinance independent of the elimination of any such portion as may be declared invalid. If any
section, subdivision, paragraph, sentence, clause or phrase of this Ordinance is for any reason held
to be invalid or unconstitutional, such decision shall not affect the validity of the remaining
portions of this Ordinance. The City Council hereby declares that it would have passed this
Ordinance, and each section, subdivision, paragraph, sentence, clause and phrase thereof,
irrespective of the fact that any one (or more) section, subdivision, paragraph, sentence, clause or
phrase had been declared invalid or unconstitutional.
E
SECTION 7. CERTIFICATION
The City Clerk shall certify to the passage of this ordinance and shall cause the same to be
printed once within fifteen (15) days after its adoption in the Anaheim Bulletin, a newspaper of
general circulation, published and circulated in the City of Anaheim.
SECTION 8. EFFECTIVE DATE
This ordinance shall take effect and be in full force thirty (30) days from and after its final
passage.
THE FOREGOING ORDINANCE was introduced at a regular meeting of the City Council
of the City of Anaheim held on the 2 0 thday of December , 2016, and thereafter passed and
adopted at a regular meeting of said City Council held on the1 0 th day of January , 2017,
by the following roll call vote:
AYES: Mayor Tait and Council Members Vanderbilt, Murray, Barnes,
Moreno, Kring, and Faessel
NOES: None
ABSENT: None
ABSTAIN: None
ATT
CITY CLERK OF THE CITY Ok ANAHEIM
120282-v8
CITY OF ANAHEIM
By: � 977
MAYOR OF THE CITY OF ANAHEIM
I
CLERK'S CERTIFICATE
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss.
CITY OF ANAHEIM )
I, LINDA ANDAL, City Clerk of the City of Anaheim, do hereby certify that the foregoing is the
original Ordinance No. 6393 introduced at a regular meeting of the City Council of the City of
Anaheim, held on the 20th day of December, 2016, and that the same was duly passed and
adopted at a regular meeting of said City Council held on the 10th day of January, 2017, by the
following vote of the members thereof:
AYES: Mayor Tait and Council Members Vanderbilt, Murray, Barnes, Moreno,
Kring, and Faessel
NOES: None
ABSENT: None
ABSTAIN: None
IN WITNESS WHEREOF, I have hereunto set my hand this 10th day of January 2017.
CITY CLERK OF THE CITY OF ANAHEIM
(SEAL)
CLERK'S CERTIFICATE
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss.
CITY OF ANAHEIM )
I, LINDA ANDAL, City Clerk of the City of Anaheim, do hereby certify that the foregoing is the
original Ordinance No. 6393 and was published in the Anaheim Bulletin on the 19th day of
January, 2017.
(SEAL)
0
AFFIDAVIT OF PUBLICATION
STATE OF CALIFORNIA, )
) ss.
County of Orange )
I am a citizen of the United States and a resident
of the County aforesaid; I am over the age of
eighteen years, and not a party to or interested in
the above -entitled matter. I am the principal
clerk of the Anaheim Bulletin, a newspaper that
has been adjudged to be a newspaper of general
circulation by the Superior Court of the County
of Orange, State of California, on December 28,
1951, Case No. A-21021 in and for the City of
Anaheim, County of Orange, State of California;
that the notice, of which the annexed is a true
printed copy, has been published in each regular
and entire issue of said newspaper and not in any
supplement thereof on the following dates, to
wit:
January 19, 2017
"I certify (or declare) under the penalty of
perjury under the laws of the State of California
that the foregoing is true and correct":
Executed at Santa Ana, Orange County,
California, on
Date: January 19, 2017
mem
Signature
Anaheim Bulletin
625 N. Grand Ave.
Santa Ana, CA 92701
(714) 796-2209
PROOF OF PUBLICATION
..: CITY Or Ni�M
ORDINANA N0.6393
AN ORD RNCE OF THE CITY'.OF, NAHEI[�I AMENDING CHAPTER 4.05
(SHQ T RENTALS) OF CITY.—OF,
d' (Bi11 ESS REGULATION) OF THE
AN 1 NICtPAL CODE RELATING TO', 9HORT-TERM RENTALS, AND
PIN O,ANO DETERMINING THAT THIS ORDINANCE IS NOT SUBJECT TO THE
QA
ISM ENVIRONMENTAL QUALITY ACT (CCEQA) PURSUANT TO SECTIONS
1OF THE
iNL)TIRESULTES
AND O60fC)(3EIT
) ECT OR REASONABLY FORESEEABIDELIN LE END INDIRECT
P E CAL CHANGE IN THE ENVIRONMENT'AND IS NOT A PROJECT, AS
IIrEO IN:9ECTION 15378 OF7HE,CEQA GUIDELINES.
This dff%'t�rbvid_as for amendments to Chs ter 4.05 (Short -Term Rentals) of Title 4
(Busmesrg'ulttti0n) of the Anaheifrf Municipal Cpode (the "Code"), pertaining to notice of
complaint$ concerning a §qa acted vialatio0. of the Code and requires immediate correc-
tiott and cooperation ya Inusstigations of suspected violations of the Code or, any applica-
ble law,'' or regulaTi pertaining to the Use and on occupancy of a short-term rental
unit Thls otdinange r r owners to provide records relating to the use and occupancy
of short tarm rentals to (rector of Planning or the Planning Director's authorized repre-
sentative and requirasth@ ner, owner's aSant or representative to cooperate in the con-
duct of Inspections cf sho arm rentalunits, This ordinance also allows the Director of
Planning to reasonably extend the deadline for filing a hardship extension application.
I, Linda N. Andal, City Clerk of the City of Anaheim, do hereby certify that the foregoing is a
summary of Ordinance No. 6393 which ordinance was introduced at a regular meeting of
the City Council of the City of Anaheim on the 20th day of December","20rd'and'Was duly
gassed and adopted at a regular meeting of said Council on the loth day of January, 2017
by the following roll call vote of the members thereof:
AYES: Mayor' aR ancj Council Membere Vanderbilt, Murray; Barnes, ylo(cpo fCyirg,
and Felesel
NOES: None
ABSENT: None
ABSTAIN: None
The above summary is a brief description of the subject matter contained in a text of Or-
dinance No. 6393, which has been prepared ursuant to Ssctiart 512 of the Garter of the
Ciiy of Anaheim. This summary does not nc�ude or describe every provision of the ordi-
nance and should not be relied on as a substitute for the full text of the ordinance.
To obtain a copy of the full text of the ordinance; please contact the Office,of the City
Clerk, (714) 765-5166, between 8:00 AM and 5:00 PM, Monday through Friday,, There is no
charge for the copy.
12Q808v2/LHM Publish: Anaheim Bulletin January 19, 201710229602