The URL can be used to link to this page

Home My WebLink About6.0_Fractional Homeownership_Staff Presentation_PA2022-0202Fractional Homeownership Planning Commission February 22, 2023 Seimone Jurjis, CDD Director Jaime Murillo, AICP, Principal Planner Planning Commission - February 23, 2023 Item No. 6f - Additional Materials Presented at Meeting by Staff Fractional Homeownership (PA2022-0202) Community Development Department 2 What is Fractional Homeownership? Planning Commission - February 23, 2023 Item No. 6f - Additional Materials Presented at Meeting by Staff Fractional Homeownership (PA2022-0202) Fractional Ownership of Real Estate •Partial ownership of property: •Common with commercial properties •Emerging with single-family residential •Vacation property (2nd or 3rd homes) •Fractions offered for sale online Community Development Department 3 Planning Commission - February 23, 2023 Item No. 6f - Additional Materials Presented at Meeting by Staff Fractional Homeownership (PA2022-0202) How it Works •Property is purchased under a Limited Liability Corporation (LLC) •Shares of the property are sold: •1/8 ownership or greater •Operating Agreement is used to manage the property Community Development Department 4 Planning Commission - February 23, 2023 Item No. 6f - Additional Materials Presented at Meeting by Staff Fractional Homeownership (PA2022-0202) Operations •Co-owners agree on usage (days, week) •1/8 share = 45 days (not consecutive) •typically less than 30 consecutive day stays •managed through calender •Owners pay share of property costs: •maintenance, management, HOA, cleaning, tax, utilities, insurance, and reserve funds costs •Co-owners can sell their interest Community Development Department 5 Planning Commission - February 23, 2023 Item No. 6f - Additional Materials Presented at Meeting by Staff Fractional Homeownership (PA2022-0202) •Function like short term rentals –non-resident vacation behaviors •Commercialization of neighborhoods •Impacts housing affordability –increased vacation homes and reduced housing stock Complaints/Concerns Community Development Department 6 Planning Commission - February 23, 2023 Item No. 6f - Additional Materials Presented at Meeting by Staff Fractional Homeownership (PA2022-0202) Community Development Department 7 Background and Direction Planning Commission - February 23, 2023 Item No. 6f - Additional Materials Presented at Meeting by Staff Fractional Homeownership (PA2022-0202) City Council Background •November 16, 2021, Study Session •4 known homes •Directed staff to study what other cities are doing and report back •September 13, 2022-City Council Study Session •Sagecrest Planning+Environmental Report •11 known homes •Directed staff to return with proposed action items 8Community Development Department Planning Commission - February 23, 2023 Item No. 6f - Additional Materials Presented at Meeting by Staff Fractional Homeownership (PA2022-0202) City Council Direction •September 27, 2022 –Council Meeting •Initiated Zoning Code and Local Coastal Program Amendment •Did not pursue moratorium •Directed staff to work expeditiously with PlanningCommission 9Community Development Department Planning Commission - February 23, 2023 Item No. 6f - Additional Materials Presented at Meeting by Staff Fractional Homeownership (PA2022-0202) Planning Commission •October 6, 2022 –Study Session •Staff presented comprehensive overview and options •Due to complexity of issue, direction to form an Ad-Hoc Committee •October 20, 2022 –Formation of Ad-Hoc Committee •Commissioners Lowery, Rosene, and Weigand •Total of 7 meetings 10Community Development Department Planning Commission - February 23, 2023 Item No. 6f - Additional Materials Presented at Meeting by Staff Fractional Homeownership (PA2022-0202) Ad-Hoc Committee Considerations 11Community Development Department •Regulatory process •Location restrictions •Development standards •Operational standards •Grandfathering Provisions Planning Commission - February 23, 2023 Item No. 6f - Additional Materials Presented at Meeting by Staff Fractional Homeownership (PA2022-0202) Community Development Department 12 Ad-Hoc Committee Recommendations Planning Commission - February 23, 2023 Item No. 6f - Additional Materials Presented at Meeting by Staff Fractional Homeownership (PA2022-0202) 1. Regulatory Process •Create regulatory process to permit Fractional Homeownership •Regulate like STL in Title 5 of NBMC-Business License and Regulations •Require permits for both dwelling units and property manager •Clarify not applicable to co-owned property not managed and facilitated by third-party 13Community Development Department Planning Commission - February 23, 2023 Item No. 6f - Additional Materials Presented at Meeting by Staff Fractional Homeownership (PA2022-0202) 2. Location Restrictions and Maximum Cap •Limited in all residential zoning districts by a cap •Seeking Planning Commission input on appropriate cap 14Community Development Department Planning Commission - February 23, 2023 Item No. 6f - Additional Materials Presented at Meeting by Staff Fractional Homeownership (PA2022-0202) 3. Parking Requirements •Parking shall conform with current standards (size and number) •Parking shall be free of obstructions and available for use 15Community Development Department 4. Noise Restrictions •Prohibition of amplified sound outside or audible at PL from 10 pm to 10 am •Compliance with City noise ordinance Planning Commission - February 23, 2023 Item No. 6f - Additional Materials Presented at Meeting by Staff Fractional Homeownership (PA2022-0202) 5. Management Plan •Require submission of operating agreement/management plan to City •Addresses landscape maintenance and trash collection plan •Identify local contact person to address issues •24 hour contact •Located within 25 miles •Respond within 30 minutes 16Community Development Department Planning Commission - February 23, 2023 Item No. 6f - Additional Materials Presented at Meeting by Staff Fractional Homeownership (PA2022-0202) 8. Prohibit Subletting andGuest Use •Prohibit subletting of unit for rentals, including short-term lodging •Prohibit guest usage when owner not present 17Community Development Department Planning Commission - February 23, 2023 Item No. 6f - Additional Materials Presented at Meeting by Staff Fractional Homeownership (PA2022-0202) 9. Good Neighbor Policy •Written policy posted in unit •Owner responsibilities •Contact person •Parking rules •Street sweeping •Trash collection •City noise restrictions 18Community Development Department Planning Commission - February 23, 2023 Item No. 6f - Additional Materials Presented at Meeting by Staff Fractional Homeownership (PA2022-0202) 10. Owner Acknowledgments •Sign acknowledgement by each owner submitted to the City •Understanding of all rules and Good Neighbor Policy •Prohibition against subletting and guest use •Enforcement and fines 19Community Development Department Planning Commission - February 23, 2023 Item No. 6f - Additional Materials Presented at Meeting by Staff Fractional Homeownership (PA2022-0202) 11. Grandfathering Provisions •Needed for existing units that are nonconforming due to parking requirements •Difficult to retroactively regulate existing uses or those in process •Allow to remain as legal nonconforming uses 20Community Development Department Planning Commission - February 23, 2023 Item No. 6f - Additional Materials Presented at Meeting by Staff Fractional Homeownership (PA2022-0202) Community Development Department 21 Planning Commission Recommendation Planning Commission - February 23, 2023 Item No. 6f - Additional Materials Presented at Meeting by Staff Fractional Homeownership (PA2022-0202) Recommendation Requested •Seeking recommendation to City Council •March 14, 2023, City Council meeting •Options: •Support Ad-Hoc Committee recommendations •Modify Ad-Hoc Committee recommendations •No recommendation 22Community Development Department Planning Commission - February 23, 2023 Item No. 6f - Additional Materials Presented at Meeting by Staff Fractional Homeownership (PA2022-0202) 23Community Development Department Requirement Ad-Hoc Committee Recommendations Regulatory Process Title 5 permits for unit and property manager Location Restrictions Limited in all residential zones by a maximum cap Parking Requirements Current standards; free and clear Noise Restrictions No amplified sound 10 pm-10 am; City standards Management Plan Required to address landscape, trash, local contact person Subletting Prohibit short-term lodging and guest use Good Neighbor Policy Posted in unit outlining rules Owner Acknowledgements Signed and submitted by each owner Grandfathering Provisions Allows existing nonconforming units to remain Planning Commission - February 23, 2023 Item No. 6f - Additional Materials Presented at Meeting by Staff Fractional Homeownership (PA2022-0202) 24 Questions and Discussion Seimone Jurjis, CDD Director sjurjis@newportbeachca.gov Jaime Murillo, AICP, Principal Planner jmurillo@newportbeachca.gov Planning Commission Study Session February 24, 2023 Planning Commission - February 23, 2023 Item No. 6f - Additional Materials Presented at Meeting by Staff Fractional Homeownership (PA2022-0202)