LA short-term rental ordinance advances

LOS ANGELES -- On the heels of a Los Angeles Superior Court ruling that the zoning code does not prohibit short-term rentals, a city council committee voted Tuesday to advance a measure that would regulate the practice, signaling clarification after years of debate.

The Home-Sharing Ordinance, in the works for three years, would cap the days Angelenos can rent their primary residence at 120, lowering it from 180. Qualified hosts, with no nuisance citations on their record, could apply to exceed the cap.

There will also be a neighbor notification process that is still being worked on. A complaint by one neighbor could kick an application into enhanced scrutiny, according to a planning department report.

Despite voicing concerns, Councilman Bob Blumenfield said he was "really excited that we're going to land this plane. It's long overdue."

After more than an hour of raucous public comment, Councilman Jose Huizar assured attendees "this is not the end of the discussion," but that pushing forward the ordinance was necessary.

The debate has created an unlikely coalition between affordable housing advocates and hotel and property owners, who believe the home-sharing economy is driving up rents in the city by taking units off the market and steering business away from traditional operators.

On the other side is the group profiting from the income afforded by renting their homes, apartments and rooms out through sites like Airbnb. That community ranges from single moms and artists, who say they need the money to survive, to wealthy property owners, who buy large homes with the express purpose of renting them out.

There was no mention at the meeting of a March 23 ruling by Judge Teresa Beaudet that "there is no prohibition in the [Zoning] Code against short-term rentals in apartment houses." People v. Venice Suites LLC, BC624350 (L.A. Super. Ct., filed June 17, 2016).

Blumenfield, who represents the West San Fernando Valley, said, "Right now, short-term rentals are illegal."

Beaudet rejected the Los Angeles city attorney office's claim that a Venice apartment-hotel owner violated municipal zoning laws and public nuisance laws when he began renting out its units for less than 30 days.

The zoning code is silent on the issue, and there is no minimum tenancy for renting a unit, the decision said.

"It does put into question the entire notion that short-term rentals are not allowed," said Benjamin Reznik, defense counsel with Jeffer Mangels Butler & Mitchell LLP.

The city attorney's office said it is weighing its options on how to proceed, but declined to comment further through a spokesperson.

"The suit illustrates why we need to move fast to protect housing for Los Angeles residents and stop the abuse of short-term rentals by folks who take whole apartment buildings off the market," said Charlie Carnow, a research analyst with a division of Unite Here, a union of hotel, restaurant, airport and large events workers. Union members showed up in droves at the council's planning meeting.

The home-sharing ordinance still has several stops before a full council vote, and changes are still being made.

Tuesday's meeting ended with the decision to require those applying for an extended cap to clear any citations on their record, to loop in the fire department on citations, and to redirect some of the fees raised by the regulatory system back to the city. The planning department is also undertaking several reports and studies on issues raised by council members.

The meeting revealed much rancor remains among interest groups, primarily centered on the appropriate number of days to cap home-sharing.

"Communities are saying ... we don't want this happening all the time," said Andrew Starrels, a land use attorney with of Holland & Knight LLP, who primarily represents property owners.

Like many, Starrels said it's crucial that the city address the issue, despite the lack of consensus.

Reznick isn't sure the ordinance is enough to counter the findings of the Venice Suites suit. The only way to supersede the ruling may be to amend the zoning code, he said.