HomeMy WebLinkAbout18 - NBMC and Local Coastal Program Amendments Related to Short Term Lodging (PA2023-0116)Q SEW Pp�T
CITY OF
z NEWPORT BEACH
c<,FORN'P City Council Staff Report
November 28, 2023
Agenda Item No. 18
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Seimone Jurjis, Assistant City Manager/Community Development
Director - 949-644-3232, sjurjis@newportbeachca.gov
PREPARED BY: Jaime Murillo, Planning Manager, jmurillo@newportbeachca.gov
949-644-3209
TITLE: Ordinance No. 2023-23 and Resolution No. 2023-83: Newport Beach
Municipal Code and Local Coastal Program Amendments Related to
Short Term Lodging (PA2023-0116)
ABSTRACT:
For the City Council's consideration are amendments to Chapter 5.95 (Short Term Lodging
Permit), Title 20 (Planning and Zoning) and Title 21 (Local Coastal Program Implementation
Plan) of the Newport Beach Municipal Code (NBMC) related to short term lodging that
include the following:
• Establishing regulations permitting short term lodging within the MU-W2
(Mixed -Use Water) and MU-CV/15t" Street (Mixed -Use Cannery Village and
15t" Street) zoning districts;
• Changing the maximum cap of short term lodging permits from 1,550 permits
citywide to: 1) 1,475 permits in residential districts; and 2) 75 permits within the
MU-W2 and MU-CV/15t" Street zoning districts;
• Correcting an inconsistency in the definition and use of short term lodging and bed
and breakfast inn to mean a rental of 30 days or less; and
• Revisions related to violations, suspensions, revocations, and permit closures.
RECOMMENDATIONS:
a) Conduct a public hearing;
b) Find proposed amendments to the NBMC are not subject to the California
Environmental Quality Act (CEQA) pursuant to Section 15060(c)(2) and 15061(b)(3)
of the CEQA Guidelines, because it would not result in a direct or reasonably
foreseeable indirect physical change in the environment and is covered by the general
rule that CEQA applies only to projects which have the potential for causing a
significant effect on the environment;
c) Waive full reading, direct the City Clerk to read by title only, introduce Ordinance
No. 2023-23, An Ordinance of the City Council of the City of Newport Beach,
California, Approving a Code Amendment to Chapter 5.95 (Short Term Lodging) and
Title 20 (Planning and Zoning) of the Newport Beach Municipal Code Related to Short
Term Lodging (PA2023-0116), and pass to second reading on December 12, 2023;
and
18-1
Ordinance No. 2023-23 and Resolution No. 2023-83: Newport Beach Municipal Code
and Local Coastal Program Amendments Related to Short Term Lodging
November 28, 2023
Page 2
d) Adopt Resolution No. 2022-83, A Resolution of the City Council of the City of Newport
Beach, California, Authorizing Submittal of a Local Coastal Program Amendment to
the California Coastal Commission Amending Title 21 (Local Coastal Program
Implementation Plan) of the Newport Beach Municipal Code Related to Short Term
Lodging (PA2023-0116);
or
e) Adopt an alternative resolution that includes a 20-unit ownership requirement,
Resolution No. 2022-83, A Resolution of the City Council of the City of Newport Beach,
California, Authorizing Submittal of a Local Coastal Program Amendment to the
California Coastal Commission Amending Title 21 (Local Coastal Program
Implementation Plan) of the Newport Beach Municipal Code Related to Short Term
Lodging (PA2023-0116).
DISCUSSION:
On May 23, 2023, the City Council initiated amendments and directed the Planning
Commission to identify opportunities to modify Titles 20 and 21 of the Newport Beach
Municipal Code to facilitate new visitor -serving accommodation opportunities within the
MU-W2 (Mixed -Use Water) and MU-CV/15th Street (Mixed -Use Cannery Village and 15th
Street) zoning districts. The direction also included several considerations: 1) applicability
to multi -unit residential developments with 20 or more residential units under common
ownership, 2) requirement for professional management, 3) requirement for project
amenities, and 4) where there are no parking impacts that could reduce the availability of
parking in residential neighborhoods.
On June 22, 2023, the Planning Commission discussed the potential to amend the
Municipal Code to facilitate new visitor -serving accommodations in the zones identified.
It was discussed that the MU-W2 and MU-CV/15th Street zoning districts currently allow
hotels, motels, and timeshares subject to a conditional use permit. Bed and breakfast
operations are allowed in the MU-CV/15th Street zone with a conditional use permit, but
they are not permitted in the MU-W2 zone. Short term rentals are not allowed in any
mixed -use zones currently. The Planning Commission directed staff to return at a future
date with a report and recommendations focused on the matter (Attachment C - meeting
minutes).
On October 19, 2023, the Planning Commission held a public hearing and reviewed the
proposed amendments to allow short term rentals in specified mixed -use zones. Some
Planning Commissioners were not supportive of a proposed permit criterion requiring a
permit holder to own 20 or more eligible properties. The Planning Commission ultimately
recommended approval of the proposed amendments with the removal of the ownership
requirements. The Planning Commission resolutions are included as Attachments D and
E and the meeting minutes are included as Attachment F.
18-2
Ordinance No. 2023-23 and Resolution No. 2023-83: Newport Beach Municipal Code
and Local Coastal Program Amendments Related to Short Term Lodging
November 28, 2023
Page 3
The proposed amendments to Title 20 and Title 21 of the NBMC would reinstate short
term lodging as an allowable use within the MU-W2 and MU-CV/15t" Street zoning
districts (Attachment G), subject to existing short term lodging regulations and additional
eligibility criteria identified by the City Council from the May 23, 2023, meeting. Redline
strikeouts illustrating the revised code provisions are included as Attachment H.
Changes to Maximum Cap
The existing maximum cap of short term lodging permits in the city is 1,550 permits. The
amendment would not increase the total number of permits, but it would allow up to
75 permits in the MU-W2 and MU-CV/15th Street zoning districts and 1,475 permits in
residential districts. This would maintain the total allowance for this type of visitor
accommodations in the city without altering existing regulations on short term lodging
previously adopted that protect residential neighborhoods. In fact, lowering the number
of short term lodging permits in residential neighborhoods would enhance protection of
residential neighborhoods.
Changes to Waiting List
There are currently 546 applicants on the citywide waiting list. With the proposed change
to create two separate maximum caps, each maximum cap would maintain a separate
waiting list. By creating separate waiting lists, transitioning of the 75 short term lodging
permits to the allowed mixed -use zones can occur in the near -term while the permits in
the residential zones will reduce to the new 1,475 residential cap through attrition.
Eligibility
To be eligible for a new short-term lodging permit in the MU-W2 and MU-CV/15th Street
zoning districts the proposed amendment would require an applicant to:
1. Employ professional management to ensure code requirements are met and to
increase accountability.
2. Create a management plan that ensures, among other things, that on -site
amenities are provided to guests, and no parking impacts are created in
surrounding residential zones.
3. [Criterion Recommended for Removal by Planning Commission] Pursuant to
City Council direction from the May 23, 2023, meeting, the initial draft presented
to the Planning Commission included an eligibility requirement that a permit holder
would be required to own 20 or more units within the same Statistical Area
(Attachment 1) located in the MU-W2 and/or MU-CV/15th St. zoning districts.
Common ownership was defined as the same person, entity or managing partner
holding legal and/or equitable title to no less than 50% of each property or entity.
18-3
Ordinance No. 2023-23 and Resolution No. 2023-83: Newport Beach Municipal Code
and Local Coastal Program Amendments Related to Short Term Lodging
November 28, 2023
Page 4
This location requirement and minimum ownership threshold was intended help
with accountability and enforcement by ensuring that the City can have a stronger
working relationship with fewer operators. Ultimately, the Planning Commission
recommended removing this requirement for equity purposes and to provide all
property owners in the mixed -use zones an opportunity for a permit. For reference,
a redline strikeout draft of the NBMC Section 21.48.115 that includes this 20-unit
ownership is included as Attachment J. Should the City Council choose to
incorporate the 20-unit ownership requirements into the amendment, an
alternative draft resolution has been provided as Attachment K that includes the
associated changes.
Definition Uodate
Pursuant to NBMC Chapter 3.16 (Uniform Transient Occupancy Tax), a tax is required to
be paid for the privilege of occupying certain visitor accommodations, including short term
lodging units. The term "transient" means any individual who exercises occupancy or is
entitled to occupancy by reason of concession, permit, right of access, license or other
agreement for a period of 30 consecutive calendar days or less. The term short term and
short term lodging as used in Chapter 5.95 and in Title 20 and Title 21 of the NBMC define
short term as a lodging unit that is rented or leased as a single housekeeping unit for a
period of less than 30 consecutive calendar days. To correct this inconsistency
throughout the NBMC, the durations within references to short term or short term lodging
are proposed to mean "a period of 30 consecutive calendar days or less." The duration
within the definition of bed and breakfast inn is also proposed to be updated for
consistency.
Updates to Violations, Suspensions, Revocations and Permit Closures
Due to the current maximum cap of short term lodging permits, the City has found that
several permit holders are holding onto their permits, but not actually conducting short
term lodging activities or paying transient occupancy taxes. While NBMC Section
5.95.080 (License and Permit Closure) authorizes the City to close any permit that has
no short term lodging activity for a period of two consecutive annual reporting periods, an
owner may reapply for reinstatement of the short term lodging permit an unlimited number
of times. Therefore, to encourage permit holders to use their short term lodging privileges
and to help those property owners on the waiting list obtain a short term lodging permit
sooner, the amendment proposes a one-time allowance to reinstate a permit that has
been closed for nonuse.
Other minor clean-up and procedural updates are proposed throughout NBMC Chapter
5.95 primarily intended to eliminate ambiguities within the Code related to violations,
suspensions, revocations and permit closures.
ME
Ordinance No. 2023-23 and Resolution No. 2023-83: Newport Beach Municipal Code
and Local Coastal Program Amendments Related to Short Term Lodging
November 28, 2023
Page 5
History of Short Term Lodging in Mixed -Use Zones
Short term lodging (STL) is a dwelling unit that is rented or leased for a period of 30 days
or less (as proposed to be amended). The City initially regulated short term lodging by
establishing NBMC Chapter 5.95 in 1992, which includes permitting requirements,
standard operating conditions, and penalties. At that time, the short term rental of
residential units was allowed in all zoning districts. As they proliferated over the years,
Chapter 5.95 was amended in 2004 to prohibit the establishment of short term lodging in
single-family zones.
In 2010, the City's Planning and Zoning Code (Title 20) was comprehensively updated.
As part of this update, short term lodging was added to the allowable uses table
(Table 2-1) for residential zones and to reinforce the prohibition of STLs in the
single-family zones and allowance in the two-family and multi -family zones. A reference
to Chapter 5.95 for implementation was also added. Short term lodging was inadvertently
not listed in the allowable uses table for mixed -use zones (Tables 2-8 and 2-9). Pursuant
to NBMC Section 20.12.020(E)(1), uses not listed in a zoning district (e.g. mixed -use
zones) but which are listed in another zoning district (e.g. residential zones) are
considered prohibited. In 2017, the California Coastal Commission certified the City's
Local Coastal Program Implementation Plan (Title 21), which incorporated similar
allowable uses tables as Title 20 and thereby incorporating the same prohibition of STLs
in mixed -use zoning districts.
The proposed code revisions implement the City Council's direction and correct the
inadvertent omission from 2010 that excluded short-term rentals from mixed -use areas.
Affected Locations
The MU-W2 zoning district primarily encompasses Lido Village and McFadden Square,
but it also covers the Cannery Village waterfront and mixed -use commercial areas on
Balboa Island (Agate and Marine Avenues), and a single property located at 2890 Bay
Shore Drive. The MU-CV/15th Street zoning district encompasses the Cannery Village
area and the mixed -use areas along the west side of 15th Street on the Balboa Peninsula.
These two zoning districts are entirely within the coastal zone area of the city. See
Attachment G for map of affected zoning districts.
Current Status of Short Term Lodaina Permits in Mixed -Uses Zones
Given that STLs were previously allowed in mixed -use zones prior to 2010, there is a
current total of 24 nonconforming STL permits that remain active throughout the various
mixed -use zoning districts. Of those 24 permits, 20 permits are located within the subject
MU-W2 and MU-CV/15th Street zones and would remain legal nonconforming unless the
proposed eligibility criteria are satisfied. The remaining four permits are located within
MU-V zoning district, and they too would remain legal nonconforming. As proposed, all
24 legal nonconforming short term lodging permits would not count against the 75-permit
limit for the MU-W2 and MU-CV/15th Street zoning districts.
18-5
Ordinance No. 2023-23 and Resolution No. 2023-83: Newport Beach Municipal Code
and Local Coastal Program Amendments Related to Short Term Lodging
November 28, 2023
Page 6
Appropriateness of STLs in Mixed -Use Zones
A common complaint from residents regarding short term lodging is that it often results in
the commercialization of residential neighborhoods, and it can create land use conflicts
between established residents and STL users. Residents experience increased exposure
to noise, trash and parking impacts. However, mixed -use zones offer an ideal location for
short-term rentals because these zones apply to predominately mixed -use properties with
general commercial and visitor -serving commercial, and residential dwelling units on the
upper floors. Additionally, mixed -use zones are generally located in areas that do not
impact or burden residential neighborhoods and the two zones that would be affected are
located proximate to the beach and harbor, which are destinations for visitors.
The attached revisions were carefully drafted to allow a very limited number of short-term
rentals in the two mixed use areas, MU-W2 and MU-CV/15t" Street. The added
requirements that will accompany each short-term rental permit issued in a mixed -use
area will ensure that residential neighborhoods and the community as a whole benefit
from, and are not impacted by, the issuance of the new short-term rental permits.
General Plan Consistency
The proposed amendments would serve to implement the following goals and policies of
the General Plan:
Land Use Element Policy LU 2.6 (Visitor Serving Uses) states, "Provide uses that serve
visitors to Newport Beach's ocean, harbor, open spaces, and other recreational assets,
while integrating them to protect neighborhoods and residents." The amendment would
allow short term lodging within the MU-W2 and MU-CV/15th St. zoning districts, subject
to specific regulations that would subject the operation of short-term lodging to a permit
issued by the City. In addition, the unit(s) must be managed by professional management,
and the short-term lodging must not impact parking in the neighborhood. The amendment
would also maintain the existing citywide maximum cap of 1,550 permits by establishing a
maximum cap of 1,475 permits within residential coastal zoning districts and a maximum
cap of 75 permits within the MU-W2 and MU-CV/15th St. coastal zoning districts. This would
maintain the existing allowance for this type of visitor accommodations in the city without
altering existing provisions and regulations on short term lodging previously adopted to
protect residential neighborhoods.
Land Use Element Goal LU 4, which states, "Management of growth and change to protect
and enhance the livability of neighborhoods and achieve distinct and economically vital
business and employment districts, which are correlated with supporting infrastructure and
public services and sustain Newport Beach's natural setting." In specific mixed -use zones,
larger scale (20 or more units) would be permitted to operate. This provides additional
opportunities for properties in the mixed -use zones to achieve and maintain economic
viability and avoids new impacts on residential neighborhoods.
Ordinance No. 2023-23 and Resolution No. 2023-83: Newport Beach Municipal Code
and Local Coastal Program Amendments Related to Short Term Lodging
November 28, 2023
Page 7
Local Coastal Program Consistency
The proposed Title 21 amendment serves to implement Coastal Land Use Plan (CLUP)
Table 2.1.1-1 (Land Use Plan Categories) of the LCP, which establishes the type, density
and intensity of land uses within the coastal zone. The amendment would allow the
operation of short-term lodging within existing dwelling units in certain mixed -use coastal
zoning districts. This is consistent with allowing visitor -serving accommodations in the
mixed -use zones while maintaining the adopted regulations to protect residential zones.
CLUP Policy 2.3.3-6 authorizes the short-term rental of dwelling units as a means of
providing lower -cost overnight visitor accommodations. To allow for the small expansion
of short term lodging in the more appropriate mixed use coastal zoning districts, but
maintain and protect existing maximum cap of 1,550 permits, this amendment establishes
two separate caps: 1) a maximum cap of 1,475 permit with residential coastal zoning
districts; and, 2) a maximum cap of 75 permit within the MU-W2 and MU-CV/15th Street
coastal zoning districts.
Local Coastal Plan Amendment Process
Any amendment to the LCP, including Title 21, must be reviewed and approved by the
City Council, with a recommendation from the Planning Commission, prior to submitting
the amendment request to the California Coastal Commission (Coastal Commission). The
Coastal Commission is the final decision -making authority on amendments to the certified
LCP; however, the City retains the ability to reject an LCP amendment in its entirety if the
Coastal Commission includes suggested modifications.
Upon approval of the proposed LCP Amendment by the Coastal Commission, staff will
return to the City Council with an ordinance adopting the Title 21 amendment.
FISCAL IMPACT:
There is no fiscal impact related to this item.
ENVIRONMENTAL REVIEW:
This action is not subject to the California Environmental Quality Act (CEQA) pursuant to
Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable
indirect physical change in the environment) and 15060(c)(3) (the activity is not a project
as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations,
Title 14, Chapter 3, because it has no potential for resulting in physical change to the
environment, directly or indirectly.
18-7
Ordinance No. 2023-23 and Resolution No. 2023-83: Newport Beach Municipal Code
and Local Coastal Program Amendments Related to Short Term Lodging
November 28, 2023
Page 8
NOTICING:
Pursuant to Section 13515 of the California Code of Regulations, a review draft of the
LCP Amendment was made available, and a Notice of Availability was distributed on
October 13, 2023, to all persons and agencies on the Notice of Availability mailing list.
In addition, notice of this amendment was published in the Daily Pilot as an eighth -page
advertisement, consistent with the provisions of the Municipal Code and State law. The
item also appeared on the agenda for this meeting, which was posted at City Hall and on
the City website.
ATTACHMENTS:
Attachment A
— Ordinance No. 2023-23
Attachment B
— Resolution No. 2023-83
Attachment C
— June 22,2023 Planning Commission Minutes
Attachment D
— Planning Commission Resolution No. PC2023-037
Attachment E
— Planning Commission Resolution No. PC2023-038
Attachment F
— October 19, 2023 Planning Commission Minutes
Attachment G
— MU-W2 and MU-CV/15t" Street Zoning Districts Map
Attachment H
— Redline Strikeouts of Proposed Amendments
Attachment I —
Statistical Area Map
Attachment J —
Redline Strikeout of Draft Section 21.48.115 Incorporating 20-unit
Ownership Requirement
Attachment K
— Alternative Draft Resolution: LCP Amendment Incorporating 20-unit
Ownership Requirement
::
Attachment A
Ordinance No. 2023-23 — Code Amendment
I
ORDINANCE NO. 2023-23
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF NEWPORT BEACH, CALIFORNIA, APPROVING A
CODE AMENDMENT TO CHAPTER 5.95 (SHORT TERM
LODGING PERMIT) AND TITLE 20 (PLANNING AND
ZONING) OF THE NEWPORT BEACH MUNICIPAL CODE
RELATED TO SHORT TERM LODGING (PA2023-0116)
WHEREAS, Section 200 of the City of Newport Beach ("City") Charter vests the
City Council with the authority to make and enforce all laws, rules, and regulations with
respect to municipal affairs subject only to the restrictions and limitations contained in
the Charter and the State Constitution, and the power to exercise, or act pursuant to
any and all rights, powers and privileges, or procedures granted or prescribed by any
law of the State of California;
WHEREAS, Section 20.66.020 (Initiation of Amendment) of the Newport Beach
Municipal Code ("NBMC") provides that the Planning Commission or the City Council of
the City of Newport Beach ("City Council") may initiate an amendment to Title 20
(Planning and Zoning) ("Title 20") of the Newport Beach Municipal Code ("NBMC");
WHEREAS, on May 23, 2023, the City Council directed the Planning
Commission to identify opportunities to modify Titles 20 and 21 of the NBMC, effectively
initiating amendments, to facilitate new visitor serving accommodation opportunities
within the Mixed -Use Water (MU-W2) and Mixed -Use Cannery Village and 15th Street
(MU-CV/15th St.) zoning districts ("Code Amendment");
WHEREAS, on June 22, 2023, the Planning Commission discussed
amendments to Titles 20 and 21 to facilitate new visitor serving accommodations;
WHEREAS, the Planning Commission held a public hearing on October 19,
2023, in the City Council Chambers, located at 100 Civic Center Drive, Newport Beach,
California. A notice of time, place and purpose of the hearing was given in accordance
with California Government Code Section 54950 of seq. ("Ralph M. Brown Act") and
Chapter 20.62 (Public Hearings) of the NBMC. Evidence, both written and oral, was
presented to, and considered by, the Planning Commission at this hearing;
WHEREAS, at the conclusion of the hearing, the Planning Commission adopted
Resolution No. PC2023-037 by a majority vote (3 ayes, 1 nay) recommending approval
of the Code Amendment to the City Council; and
18-10
Ordinance No. 2023-
Page 2 of 4
WHEREAS, the City Council held duly noticed public hearing on November
28, 2023, in the City Council Chambers located at 100 Civic Center Drive, Newport Beach,
California. A notice of time, place and purpose of the public hearing was given in
accordance with the Ralph M. Brown Act and Chapter 20.62 (Public Hearings) of the
NBMC. Evidence, both written and oral, was presented to, and considered by, the City
Council at this public hearing.
NOW THEREFORE, the City Council of the City of Newport Beach ordains as
follows:
Section 1: The City Council of the City of Newport Beach does hereby
approve Code Amendment No. PA2023-0116 to amend Chapter 5.95 (Short Term
Lodging Permit) and Title 20 (Planning and Zoning) of the Newport Beach Municipal
Code as set forth in Exhibit 'A," and supported by the findings set forth in Exhibit "B,"
both of which are attached hereto and incorporated herein by reference.
Section 2: The recitals provided in this ordinance are true and correct and are
incorporated into the substantive portion of this ordinance.
Section 3: If any section, subsection, sentence, clause or phrase of this
Ordinance is, for any reason, held to be invalid or unconstitutional such decision shall
not affect the validity or constitutionality of the remaining portions of this Ordinance. The
City Council hereby declares that it would have passed this Ordinance, and each
section, subsection, clause or phrase hereof, irrespective of the fact that any one or
more sections, subsections, sentences, clauses or phrases may be declared invalid or
unconstitutional.
Section 4: The City Council of the City of Newport Beach finds the introduction
and adoption of this ordinance is exempt from environmental review under the California
Environmental Quality Act ("CEQA") pursuant to Section 15060(c)(2) of the CEQA
Guidelines, California Code of Regulations, Title 14, Division 6, Chapter 3, which states
that an activity is not subject to CEQA if "[t]he activity will not result in a direct or
reasonably foreseeable indirect physical change in the environment". The Code
Amendment would allow existing residential dwelling units in mixed -use zones to be
used as short term lodging. The Code Amendment would not authorize new
development that would result in a physical change in the environment.
18-11
Ordinance No. 2023-
Page 3 of 4
Section 5: Except as expressly modified in this ordinance, all other sections,
subsections, terms, clauses and phrases set forth in the Newport Beach Municipal Code
shall remain unchanged and shall be in full force and effect.
Section 6: The Mayor shall sign and the City Clerk shall attest to the passage
of this ordinance. This ordinance shall take effect upon certification of Local Coastal
Program Amendment No. PA2023-0116 by California Coastal Commission. The City
Clerk shall cause the ordinance, or a summary thereof, to be published pursuant to City
Charter Section 414.
18-12
Ordinance No, 2023-_
Page 4 of 4
This ordinance was introduced at a regular meeting of the City Council of the City of
Newport Beach held on the 28th day of November 2023, and adopted on the 12th day
of December 2023, by the following vote, to -wit:
AYES:
NAYS:
ABSENT:
NOAH BLOM, MAYOR
ATTEST:
LEILANI I. BROWN, CITY CLERK
APPROVED AS TO FORM:
CITY ATTORNEY'S OFFICE
AAR . HAR ATTORNEY
Attachments: Exhibit A — Code Amendment No. PA2023-0116
Exhibit B — Findings in Support of Code Amendment No. PA2023-0116
18-13
EXHIBIT "A"
CODE AMENDMENT NO. PA2023-0116
Section 1: The Table of Contents of Chapter 5.95 (Short Term Lodging
Permit) of the Newport Beach Municipal Code is hereby amended to read as follows:
Chapter 5.95
SHORT TERM LODGING PERMIT
Sections:
5.95.005 Purpose and Findings.
5.95.010 Definitions.
5.95.015 Properties Eligible for Short Term Lodging Permits.
5.95.020 Permit Required.
5.95.025 Agency.
5.95.030 Application for Permit.
5.95.035 Denial of Permit.
5.95.040 Filing Fee.
5.95.042 Maximum Number of Permits.
5.95.043 Transfer of Permit.
5.95.045 Conditions.
5.95.047 Violations of Permit Conditions by Transient User, Occupant or
Guest.
5.95.050 Agents and Hosting Platform Responsibilities.
5.95.055 Issuance of Administrative Subpoenas.
5.95.065 Suspensions and Revocations.
5.95.070 Permits and Fees Not Exclusive.
5.95.080 License and Permit Closure.
18-14
Section 2: Subsection (B) of Section 5.95.005 (Purpose and Findings) of the
Newport Beach Municipal Code is hereby amended to read as follows:
B. Over a thousand dwelling units within residential zones near the City's beaches
and harbor are rented for thirty (30) consecutive days or less with the vast majority of
those rentals occurring during the summer when the demand for parking and City
services is the greatest.
Section 3: Subsection (C) of Section 5.95.005 (Purpose and Findings) of the
Newport Beach Municipal Code is hereby amended to read as follows:
C. Many of the occupants of short term lodging units are permanent residents of areas
distant from Newport Beach and the City has no effective way to prevent occupants
from continuing to violate provisions of this Code and the Cal. Pen. Code relating to
noise, disturbances and disorderly conduct. The only effective way to minimize the
problems associated with occupancy of short term lodging units is to impose
responsibility on the owner of the property, either personally or through an agent, to
control the conduct of guests and occupants.
Section 4: Subsection (L) of Section 5.95.005 (Purpose and Findings) of the
Newport Beach Municipal Code is hereby amended to read as follows:
L. The restrictions of this chapter are necessary to preserve the City's housing stock,
the quality and character of the City's residential neighborhoods and mixed -use areas
as well as to prevent and address the impacts on residential neighborhoods posed by
short term lodgings.
Section 5: Subsection (M) of Section 5.95.005 (Purpose and Findings) of the
Newport Beach Municipal Code is hereby added to read as follows-
M. With appropriate restrictions, certain mixed -use zones present an opportunity to
accommodate tourists while protecting the City's residential zones.
Section 6: Section 5.95.010 (Definitions) of the Newport Beach Municipal
Code is hereby amended to read as follows:
5.95.010 Definitions.
For the purpose of this chapter, the following definitions shall apply:
A. "Accessory dwelling unit" shall have the same definition as set forth in Chapter
20.70.
B. "Agent" shall mean any person who is authorized in writing by the owner to
represent and act for an owner.
18-15
C. "Booking transaction" shall mean any reservation or payment service provided by a
person who facilitates a short term lodging rental transaction between a transient user
and owner for the use of a unit for a period of thirty (30) consecutive days or less.
D. "Gross floor area" shall mean the area of the lodging unit that includes the
surrounding exterior walls and any interior finished portion of a structure that is
accessible and that measures more than six (6) feet from finished floor to ceiling.
Stairwells and elevator shafts above the first (1) level shall be excluded from the
calculation of gross floor area.
E. "Home -sharing" shall mean an activity whereby the owner hosts a transient user in
the owner's lodging unit, for compensation, for periods of less than thirty (30)
consecutive calendar days, during which time the owner of the unit lives on site, in the
unit, throughout the transient user's stay and the owner, the transient user and any
other occupants live together in the same unit as a single housekeeping unit.
F. "Hosting platform" shall mean a person, other than an owner or agent, who
participates in the short term lodging business by facilitating a booking transaction using
any medium of facilitation.
G. "Lodging unit" or "unit" shall mean a "dwelling unit" as that term is defined in
Chapter 20.70. An accessory dwelling unit shall not be considered a lodging unit or unit
for purposes of this chapter.
H. "Multi -use area" shall mean those areas of the City designated by Title 20 and Title
21 as Mixed -Use Water (MU-W2) and Mixed -Use Cannery Village and 15th Street (MU-
CV/15th St.).
I. "Owner" shall mean the person(s) that hold(s) legal and/or equitable title to the
lodging unit.
K. "Residential district" shall mean those areas of the City so designated by Title 20 as
well as any other area in the City designated for a residential use as part of a planned
community development plan, specific area plan or planned residential district.
J. "Short term" shall mean a lodging unit that is rented or leased as a single
housekeeping unit for a period of thirty (30) consecutive days or less. This also includes
home -sharing.
L. "Short term lodging unit registry" shall mean the published registry maintained by
the City that sets forth a list of all owners and the address of all units that have a valid
short term lodging permit and business license with the City, a copy of which is
available, without charge, to any person who requests a copy and which shall be
accessible on the City's website.
M. "Single housekeeping unit" shall have the same definition as set forth in Chapter
20.70.
18-16
N. "Transient" or "transient user" shall mean any person or persons who, for any
period of thirty (30) consecutive days or less either at his or her own expense, or at the
expense of another, obtains lodging in a lodging unit or the use of any lodging space in
any unit, for which lodging or use of lodging space a charge is made.
Section 7: The title and contents of Section 5.95.015 (Residential Properties
Eligible for Short Term Lodging Permits) of the Newport Beach Municipal Code are
hereby amended to read as follows:
5.95.015 Properties Eligible for Short Term Lodging Permits.
Only properties in a residential district or multi -use area that are authorized under Titles
20 and 21 and this chapter shall be eligible for a short term lodging permit.
Subsequent to June 1, 2004, no annual permit shall be issued to or renewed for any
dwelling unit on any parcel zoned for "Single -Unit Residential (R-1)" or that is
designated for a single-family residential use as part of a planned community
development plan, specific area plan or planned residential district, unless a permit has
previously been issued for that lodging unit and the permit was not subsequently
revoked.
Section 8: Section 5.95.020 (Permit Required) of the Newport Beach
Municipal Code is hereby amended to read as follows:
5.95.020 Permit Required.
No owner of a lodging unit shall advertise for rent or rent a lodging unit located within a
residential district or multi -use area for a short term without a valid short term lodging
permit for that unit issued pursuant to this chapter.
Section 9: Section 5.95.030 (Application for Permit) of the Newport Beach
Municipal Code is hereby amended to read as follows:
5.95.030 Application for Permit.
An application for an annual short term lodging permit, renewal of a short term lodging
permit, reinstatement of a short term lodging permit or transfer of a short term lodging
permit shall be filed with the Finance Director upon forms provided by the City.
A. An application for a new permit, renewal permit, the reinstatement of a permit or
the transfer of a permit shall contain the following information:
1. The name, address and telephone number of the owner of the unit for which
the short term lodging permit is to be issued.
2. The name, address and telephone number of the agent, if any, of the owner
of the unit.
18-17
3. Evidence of a valid business license issued by the City for the separate
business of operating a short term lodging unit or units.
4. The number of bedrooms in the lodging unit.
5. The gross floor area of the lodging unit.
6. The number of parking spaces available on site and a description indicating
the location and size of each parking space.
7. A nuisance response plan, which sets forth the owner's plan for handling
disruptive transient users.
8. A certification that the applicant has reviewed the covenants, conditions and
restrictions, if any, and a short term use is permitted at the location pursuant to
the terms of the covenants, conditions and restrictions, if any.
9. Acknowledgment of receipt and inspection of a copy of all regulations
pertaining to the operation of a short term lodging unit.
10. Such other information as the Finance Director deems reasonably
necessary to administer this chapter.
B. An application for the renewal of a short term lodging permit shall be filed within
thirty (30) days of the short term lodging permit's expiration, or the short term lodging
permit shall be deemed abandoned.
C. An application for the reinstatement of a short term lodging permit closed by the
Finance Director pursuant to Section 5.95.080 shall be filed within thirty (30) days of the
date the permit was closed by the Finance Director, or the short term lodging permit
shall be deemed abandoned.
D. An application for the reinstatement of a previously suspended short term lodging
permit shall be filed within thirty (30) days of the end of the suspension period, or the
short term lodging permit shall be deemed abandoned.
E. If any application is deemed incomplete, which shall be determined in the sole
discretion of the Finance Director, the application shall be completed within thirty (30)
days of the service of notice that the application is incomplete, which shall be served in
accordance with Section 1.08.080, or the application and any associated permit shall be
deemed abandoned.
F. If good causes exist, as determined in the sole discretion of the Finance Director,
the Finance Director may extend the deadlines set forth in subsections (B) through (E)
of this section.
Section 10: Section 5.95.035 (Denial of Permit) of the Newport Beach Municipal
Code is amended to read as follows:
5.95.035 Denial of Permit.
If permits are available for issuance, no timely application filed by an owner for an
annual permit, renewal of a permit, reinstatement of a permit or transfer of a permit for a
unit eligible to be used as a short term lodging unit, as provided for in Section 5.95.015
and this Code, shall be denied unless: the owner does not have a current valid business
license; the owner has failed to pay transient occupancy tax, the visitor service fee, a
penalty, a fine or inspection cost, due and owing to the City; the nuisance response plan
is deemed inadequate by the Finance Director; the short term lodging permit for the
same unit and issued to the same owner has been revoked, or the short term lodging
permit is not eligible for reinstatement.
Section 11: Section 5.95.042 (Maximum Number of Permits) of the Newport
Beach Municipal Code is hereby amended to read as follows:
5.95.042 Maximum Number of Permits.
A. Except as provided in subsection (B), the maximum number of short term lodging
permits in a residential district shall be limited to one thousand four hundred seventy-
five (1,475) permits at any time. If there are more than one thousand four hundred
seventy-five (1,475) valid permits in residential districts as of January 13, 2022, an
owner shall be permitted to renew, reinstate, or transfer a valid permit in accordance
with the provisions of this chapter; however, no new permit shall be issued to any
person on the waiting list, as described in subsection (F) of this section, until the total
number of residential district permits does not exceed one thousand four hundred
seventy-five (1,475). To avoid wholesale conversion of existing and new housing
complexes into short term lodgings within the residential district, multi -unit
developments with five (5) or more units may permit a maximum of twenty (20) percent
of the total number of units to be short term lodgings (rounded down to the nearest
whole number).
B. The maximum number of short term lodging permits in the multi -use area shall
be limited to seventy-five (75) permits. No new permit shall be issued to any person on
the waiting list, as described in subsection (F) of this section, until the total number of
multi -use area permits less than seventy-five (75). Notwithstanding the foregoing, the
seventy-five (75) permit maximum shall not apply to a short term lodging unit that was
legally established as of November 25, 2010, on a lot within a Mixed -Use Coastal
Zoning District provided the owner maintains a valid short term lodging permit that is not
subsequently revoked or abandoned.
C. For purposes of calculating the maximum number of short term lodging permits
available as provided in subsection (A) or (B) of this section, a permit shall be deemed
valid and unavailable unless abandoned in accordance with Sections 5.95.030(B)
through (F), and/or Section 5.95.043(B) or, if the short term lodging permit has been
revoked and the time has run to seek administrative or judicial review of the decision.
18-19
D. An owner who has a short term lodging permit, or an owner seeking to reinstate a
short term lodging permit that has not been abandoned in accordance with Sections
5.95.030(B) through (F), shall have priority to renew or reinstate the permit over anyone
on the waiting list, as described in subsection (F) of this section.
E. An owner seeking to transfer a valid short term lodging permit that files an
application within the time frames set forth in Section 5.95.043(A) shall have priority to
transfer the permit over anyone on the waiting list, as described in subsection (F) of this
section.
F. If the City has issued the maximum number of permits available, the City shall
maintain a waiting list. An application for placement on the waiting list shall be submitted
to the Finance Director, on a form approved by the Finance Director, and shall be
accompanied by a fee established by resolution of the City Council. In the event a short
term lodging permit becomes available, the Finance Director shall notify the person or
persons next in order on the waiting list as provided for in Section 1.08.080. The notice
shall specify that applications will be accepted for ten (10) days after the date of the
notice, and that failure to apply within the ten (10) day period shall result in removal of
the person or persons receiving notice from the waiting list. The City shall not be liable
for a failure to notify any person or persons on the waiting list since placement on the
list does not create any property right in any person or persons on the list nor any
contractual obligation on the part of the City.
Section 12: Subsections A(19) through A(22) of Section 5.95.045 (Conditions)
of the Newport Beach Municipal Code are hereby amended to read as follows:
19. The owner shall allow the City to inspect the short term lodging unit to confirm the
number of bedrooms, gross floor area, and number/availability of parking spaces, seven
(7) days after the City serves the owner with a request for inspection in accordance with
Section 1.08.080. If, based on the inspection, it is determined that the information
submitted to the City in accordance with Section 5.95.030 was false, in addition to any
other remedy set forth in this chapter, the owner agrees that the owner shall be liable for
the cost of conducting the inspection.
20. The owner shall provide the City with a copy of any written rental agreement(s)
and the good neighbor policy, within seven (7) days after the City serves the owner with
a notice of request for written rental agreements and the good neighbor policy in
accordance with Section 1.08.080.
21. Neither an owner nor the owner's agent shall rent, let, advertise for rent, or enter
into an agreement for the rental of any lodging unit, for less than two (2) consecutive
nights.
22. The owner shall
a. Require every transient user and guest of the transient user to comply with all
State and local laws that regulate parking while staying at or visiting the short term
lodging unit;
18-20
b. Require every transient user to provide the owner with the license plate
number for all vehicles which are used by the transient user or the transient user's
guest while staying at or visiting the short term lodging unit; and
C. Provide the City with the vehicle license plate number(s) for every vehicle
which was used by the transient user or the transient user's guest while staying at or
visiting the short term lodging, within seven (7) days after the City serves the owner
with a notice of request for the vehicle license plate number(s) in accordance with
Section 1.08.080.
Section 13: Section 5.95.055 (Issuance of Administrative Subpoenas) of the
Newport Beach Municipal Code is hereby amended to read as follows:
5.95.055 Issuance of Administrative Subpoenas.
The City Manager shall have the authority to issue and serve administrative subpoenas
to the owner, agent or hosting platform, as necessary, to obtain specific information
regarding short term rental listings located in the City, including but not limited to the
names of the persons responsible for each such listing, the address of each such listing,
the length of stay for each such listing and the price paid for each stay, to determine
whether the short term rental listing complies with this chapter. Any subpoena issued
pursuant to this section shall not require the production of information sooner than thirty
(30) days from the date of service. A person that has been served with an administrative
subpoena may seek judicial review during that thirty (30) day period. Failure to respond
to an administrative subpoena in accordance with the terms set forth therein shall be
punishable in accordance with Section 5.95.060 and the City may file a judicial action to
compel compliance with the subpoena.
Section 14: Section 5.95.060 (Violations, Penalties and Enforcement) of the
Newport Beach Municipal Code is hereby deleted in its entirety.
Section 15: Subsection A(3) of Section 5.95.065 (Suspensions and
Revocations) of the Newport Beach Municipal Code is hereby amended to read as
follows:
3. If a lodging unit that is subject to a short term lodging permit has been the location
of two (2) or more loud or unruly gatherings, as defined in Chapter 10.66, while the
lodging unit was occupied on a short term basis, within any twenty-four (24) month
period, the permit may be suspended for a period of one (1) year or revoked in
accordance with subsection (B) of this section. A loud or unruly gathering that occurred
prior to the passage of fourteen (14) days from the mailing of notice to the owner in
compliance with Section 10.66.030(D) shall not be included within the calculation of the
two (2) or more loud or unruly gatherings required to revoke a short term lodging permit.
18-21
Section 16: Subsection (B) of Section 5.95.065 (Suspensions and Revocations)
of the Newport Beach Municipal Code is hereby amended to read as follows:
B. Permits shall be suspended or revoked, only in the manner provided in this section.
1. The Finance Director shall investigate whenever he or she has reason to
believe that an owner has submitted an application that contains false information or
committed a violation of a permit condition, this Code, state or federal law related to
a permitted unit. Such investigation may include, but is not limited to, on -site
property inspections. Should the investigation reveal substantial evidence to support
a finding that warrants a suspension or revocation of the short term lodging permit,
the Finance Director shall issue written notice of intention to suspend or revoke the
short term lodging permit. The written notice shall be served on the owner in
accordance with Section 1.08.080, and shall specify the facts which, in the opinion
of the Finance Director constitute substantial evidence to establish grounds for
imposition of the suspension and/or revocation, and specify the proposed time the
short term lodging permit shall be suspended and/or that the short term lodging
permit shall be revoked within thirty (30) days from the date the notice is given,
unless the owner files with the Finance Director, before the suspension and/or
revocation becomes effective, a request for hearing before a hearing officer, who
shall be retained by the City, and pays the fee for the hearing established by
resolution of the City Council.
2. If the owner requests a hearing and pays the hearing fee, established by
resolution of the City Council, within the time specified in subsection (B)(1) of this
section, the Finance Director shall serve written notice on the owner, pursuant to
Section 1.08.080, setting forth the date, time and place for the hearing. The hearing
shall be scheduled not less than fifteen (15) days, nor more than sixty (60) days,
from the date on which notice of the hearing is served by the Finance Director. The
hearing shall be conducted according to the rules normally applicable to
administrative hearings. At the hearing, the hearing officer will preside over the
hearing, take evidence and then submit proposed findings and recommendations to
the City Manager. The City Manager shall suspend or revoke the short term lodging
permit only upon a finding that a violation has been proven by a preponderance of
the evidence, and that the suspension or revocation is consistent with the provisions
of this section. The City Manager shall render a decision within thirty (30) days of
the hearing and the decision shall be final as to the City but subject to judicial review
pursuant to Cal. Code Civ. Proc. Section 1094.5.
Section 17: Section 5.95.080 (License and Permit Closure) of the Newport
Beach Municipal Code is hereby amended to read as follows:
18-22
5.95.080 License and Permit Closure.
A. Any owner that has ceased operating a short term lodging unit shall inform the
Finance Director in writing of the date of the last rental, and having done such, the short
term lodging permit shall be closed. The City will send a final transient occupancy tax
and visitor service fee bill, which will be due and payable thirty (30) days from the date
of the invoice.
B. The Finance Director shall close any permit that has no short term lodging activity
for a period of two (2) consecutive annual reporting periods as evidenced by the owner
and/or agent remitting zero dollars ($0.00) on the required transient occupancy tax and
visitor service fee forms or the owner/agent failing to return these forms. After any
permit closure pursuant to this subsection, the owner may reapply one (1) time for
reinstatement of the short term lodging permit which shall be processed in accordance
with Section 5.95.030. Any subsequent closure of the short term lodging permit
pursuant to this subsection shall not be eligible for reinstatement.
Section 18: Rows entitled "Visitor Accommodations, Residential" and "Short
Term Lodging" are hereby added to the 'Residential Uses" section of Table 2-8
(Allowed Uses) of Section 20.22.020(C) (Mixed -Use Zoning Districts Land Uses and
Permit Requirements) of the Newport Beach Municipal Code to read as follows:
Mixed -Use Zoning Districts
Permit Requirements
P
Permitted by Right
TABLE 2-8
Conditional Use Permit (Section
ALLOWED USES AND
CUP
20.52.020)
PERMIT REQUIREMENTS
MUP
Minor Use Permit (Section 20.52.020)
LTP
Limited Term Permit (Section 20.52.040)
—
Not Allowed
Land Use
See Part 7 of this title for
MU-MM
MU-
Specific
land use definitions.
MU-V
(6)
MU-DW
CV115th
Use
See Chapter 20.12 for
St. (7)
Regulations
unlisted uses.
Residential Uses
Accessory Dwelling Units and
P
P
P
P
Section
Junior Accessory Dwelling
20.48.200
Units
18-23
Mixed -Use Zoning Districts
Permit Requirements
P
Permitted by Right
TABLE 2-8
Conditional Use Permit (Section
ALLOWED USES AND
CUP
20.52.020)
PERMIT REQUIREMENTS
MUP
Minor Use Permit (Section 20.52.020)
LTP
Limited Term Permit (Section 20.52.040)
—
Not Allowed*
Land Use
See Part 7 of this title for
MU-MM
MU-
Specific
land use definitions.
MU-V
(6)
MU-DW
CV/15th
Use
See Chapter 20.12 for
St. (7)
Regulations
unlisted uses.
Single -Unit Dwellings
Located on 1 st floor
—
—
—
P (3)
Section
20.48.130
Located above 1 st floor
P (1)
—
—
P (3)
Section
20.48.130
Multi -Unit Dwellings
Located on 1 st floor
—
P (1)(2)
P (1)
P (3)
Section
20.48.130
Located above 1st floor
P (1)
P (1)(2)
P (1)
P (3)
Section
20.48.130
Two -Unit Dwellings
Located on 1 st floor
—
—
—
P (3)
Section
20.48.130
Located above 1 st floor
P (1)
—
—
P (3)
Section
20.48.130
Home Occupations
P
P (1)
P
P
Section
20.48.130
Live -Work Units
P
P (1)(2)
P
P (3)
Visitor Accommodations, Residential
Short Term Lodging
—
—
—
P
Chapter
5.95
Section 19: Rows entitled "Visitor Accommodations, Residential" and "Short
Term Lodging" are hereby added to the "Residential Uses" section of Table 2-9
18-24
(Allowed Uses) of Section 20.22.020(C) (Mixed -Use Zoning Districts Land Uses and
Permit Requirements) of the Newport Beach Municipal Code to read as follows:
Mixed -Use Zoning Districts
Permit Requirements
P
Permitted by Right
TABLE 2-9
CUP
Conditional Use Permit
ALLOWED USES AND PERMIT
(Section 20.52.020)
REQUIREMENTS
Minor Use Permit (Section
MUP
20.52.020)
Limited Term Permit
LTP
(Section 20.52.040)
—
Not allowed
Land Use
See Part 7 of this title for land
Specific Use
use definitions.
MU-W1 (5)(6)
MU-W2
Regulations
See Chapter 20.12 for unlisted
uses.
Residential Uses
Accessory Dwelling Units and Junior
P
P
Section
Accessory Dwelling Units
20.48.200
Single -Unit Dwellings
Located on 1 st floor
—
—
Located above 1 st floor
P (1)
P (2)
Section
20.48.130
Multi -Unit Dwellings
Located on 1 st floor
—
—
Located above 1 st floor
P (1)
P (2)
Section
20.48.130
Two -Unit Dwellings
Located on 1 st floor
—
—
Located above 1 st floor
P (1)
P (2)
Home Occupations
P
P (2)
Section
20.48.110
Visitor Accommodations, Residential
Short Term Lodging
—
P
Chapter 5.95
18-25
Section 20: Subsection A(3)(f) of Section 20.38.060 (Nonconforming Parking)
of the Newport Beach Municipal Code is hereby amended to read as follows:
f. Outside the coastal zone, dwellings within the residential development shall not be
rented for periods of thirty (30) days or less. Refer to subsection (A)(4)(f) of this section
for short term lodging allowances for developments within the coastal zone; and
Section 21: Subsection B(4)(h) of Section 20.48.205 (SB 9 Housing
Developments and Urban Lot Splits in Single -Unit Residential Zoning Districts) of the
Newport Beach Municipal Code is hereby amended to read as follows:
h. Short Term Lodging. Any dwelling unit permitted pursuant to an SB 9 housing
development or urban lot split shall not be rented for periods of thirty (30) days or less.
Section 22: The definition of "Bed and breakfast inn" of Section 20.70.020
(Definitions of Specialized Terms and Phrases) of the Newport Beach Municipal Code is
hereby amended to read as follows:
"Bed and breakfast inn" means a dwelling unit that offers guest rooms or suites for a fee
for thirty (30) days or less, with incidental eating and drinking service provided from a
single kitchen for guests only.
Section 23: The title and definition of "Short-term lodging" of Section 20.70.020
(Definitions of Specialized Terms and Phrases) of the Newport Beach Municipal Code is
amended to read as follows:
"Short term lodging" means a dwelling unit that is rented or leased as a single
housekeeping unit (see "Single housekeeping unit") for a period of less (30) days or
less, subject to the requirements of Chapter 5.95 (Short Term Lodging Permits) and any
additional standards required by the City Manager.
18-26
EXHIBIT "B"
FINDINGS IN SUPPORT OF CODE AMENDMENT NO. PA2023-0116
1. An amendment to Chapter 5.95 (Short Term Lodging Permit) and Title 20 (Planning
and Zoning) of the NBMC is a legislative act. There are no required findings for either
approval or denial of such amendments. Notwithstanding the foregoing, the Code
Amendment is consistent with the following goals and policies of the City's General
Plan:
Land Use Element Policy LU 2.6 (Visitor Serving Uses), which states, "Provide uses
that serve visitors to Newport Beach's ocean, harbor, open spaces, and other
recreational assets, while integrating them to protect neighborhoods and residents."
The Code Amendment would allocate and allow 75 short term lodging permits within
the MU-W2 and MU-CV/15th St. zones, both of which are located in the Coastal Zone,
subject to specific regulations that would require the operation of short-term lodging
would be subject to a permit issued by the City, managed by professional
management, and not impact parking in the neighborhood. The Code Amendment
would also maintain the existing Citywide maximum cap of 1,550 permits by
establishing a maximum cap of 1,475 permit with residential coastal zoning districts
and a maximum cap of 75 permit within the MU-W2 and MU-CV/15th St. coastal
zoning districts. This would maintain the existing allowance for this type of visitor
accommodations in the additional visitor accommodations in the City without altering
existing provisions and regulations on short term lodging previously adopted to protect
residential neighborhoods.
Land Use Element Goal LU 4 states, "Management of growth and change to protect
and enhance the livability of neighborhoods and achieve distinct and economically vital
business and employment districts, which are correlated with supporting infrastructure
and public services and sustain Newport Beach's natural setting." In specific mixed use
zones, permit holders would be permitted to operate short term lodging. This provides
additional opportunities for properties in the mixed -use zones to achieve and maintain
economic viability and avoids new impacts on residential neighborhoods.
2. A Local Coastal Program Amendment is also underway to ensure the regulations
within the Coastal Zone are consistent with the Code Amendment.
18-27
Attachment B
Resolution No. 2023-83 — LCP Amendment
RESOLUTION NO. 2023-83
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
NEWPORT BEACH, CALIFORNIA, AUTHORIZING
SUBMITTAL OF A LOCAL COASTAL PLAN AMENDMENT
TO THE CALIFORNIA COASTAL COMMISSION
AMENDING TITLE 21 (LOCAL COASTAL PROGRAM
IMPLEMENTATION PLAN) OF THE NEWPORT BEACH
MUNICIPAL CODE RELATED TO SHORT TERM LODGING
(PA2023-0116)
WHEREAS, Section 200 of the City of Newport Beach ("City") Charter vests the
City Council with the authority to make and enforce all laws, rules and regulations with
respect to municipal affairs subject only to the restrictions and limitations contained in
the Charter and the State Constitution, and the power to exercise, or act pursuant to
any and all rights, powers, and privileges, or procedures granted or prescribed by any
law of the State of California;
WHEREAS, Section 30500 of the California Public Resources Code requires
each county and city to prepare a Local Coastal Program ("LCP") for that portion of the
coastal zone within its jurisdiction;
WHEREAS, in 2005, the City of Newport Beach adopted the City of Newport
Beach Local Coastal Program Coastal Land Use Plan as amended from time to time;
WHEREAS, the California Coastal Commission effectively certified the City's
Local Coastal Program Implementation Plan on January 13, 2017, and the City added
Title 21 (Local Coastal Program Implementation Plan) ("Title 21") to the City of Newport
Beach Municipal Code ("NBMC") whereby the City assumed coastal development
permit -issuing authority on January 30, 2017;
WHEREAS, City Council Policy K-1 (General Plan and Local Coastal Program)
of the NBMC requires amendments to the City of Newport Beach certified Local Coastal
Program codified in Title 21 to be initiated by the City Council;
WHEREAS, on May 23, 2023, the City Council directed the Planning
Commission to identify opportunities to modify Titles 20 and 21 of the NBMC, effectively
initiating amendments, to facilitate new visitor serving accommodation opportunities
within the Mixed -Use Water (MU-W2) and Mixed -Use Cannery Village and 151h Street
(MU-CV/15th St.) zoning districts ("LCP Amendment");
18-29
Resolution No. 2023-
Page 2 of 4
WHEREAS, on June 22, 2023, the Planning Commission discussed the
amendments to Titles 20 and 21 to facilitate new visitor serving accommodations;
WHEREAS, pursuant to Section 13515 (Public Participation and Agency
Coordination Procedures) of the California Code of Regulations Title 14, Division 5.5,
Chapter 8, Subchapter 2, Article 5 (Public Participation) ("Section 13515"), drafts of LCP
Amendment were made available and a Notice of Availability was distributed at least six
weeks prior to the anticipated final action date;
WHEREAS, the Planning Commission held a public hearing on October 19,
2023, in the City Council Chambers, located at 100 Civic Center Drive, Newport Beach,
California. A notice of time, place and purpose of the hearing was given in accordance
with California Government Code Section 54950 et seq. ("Ralph M. Brown Act") and
Chapter 21.62 (Public Hearings) of the NBMC. Evidence, both written and oral, was
presented to, and considered by, the Planning Commission at this hearing;
WHEREAS, at the conclusion of the hearing, the Planning Commission adopted
Resolution No. PC2023-038 by a majority vote (3 ayes,1 nay) recommending approval
of the LCP Amendment to the City Council; and
WHEREAS, the City Council held a public hearing on November 28, 2023, in the
City Council Chambers located at 100 Civic Center Drive, Newport Beach, California.
Notice of time, place and purpose of the public hearing was given in accordance with
the Ralph M. Brown Act, Section 13515, and Chapter 21.62 (Public Hearings) of the
NBMC. Evidence, both written and oral, was presented to, and considered by, the City
Council at this public hearing.
NOW, THEREFORE, the City Council of the City of Newport Beach resolves as
follows:
Section 1: The City Council of the City of Newport Beach does hereby
authorize City staff to submit Local Coastal Program Amendment No. PA2023-0116 to
the California Coastal Commission to amend Title 21 (Local Coastal Program
Implementation Plan) of the Newport Beach Municipal Code as set forth in Exhibit "A,"
and supported by the findings set forth in Exhibit "B," both of which are attached hereto
and incorporated herein by reference.
18-30
Resolution No. 2023-
Page 3 of 4
Section 2: Local Coastal Program Amendment No. PA2023-0116 shall not
become effective until approval by the California Coastal Commission and adoption,
including any modifications suggested by the California Coastal Commission, by
resolution and/or ordinance of the City Council of the City of Newport Beach.
Section 3: The LCP, including this Local Coastal Program Amendment No.
PA2023-0116, will be carried out in full conformity with the California Coastal Act.
Section 4: The recitals provided in this resolution are true and correct and are
incorporated into the operative part of this resolution.
Section 5: If any section, subsection, sentence, clause or phrase of this
resolution is for any reason held to be invalid or unconstitutional, such decision shall not
affect the validity or constitutionality of the remaining portions of this resolution. The City
Council hereby declares that it would have passed this resolution, and each section,
subsection, sentence, clause or phrase hereof, irrespective of the fact that any one or
more sections, subsections, sentences, clauses or phrases may be declared invalid or
unconstitutional.
Section 6: The City Council of the City of Newport Beach finds the Local
Costal Program Amendment PA2023-0116 is exempt from environmental review under
the California Environmental Quality Act ("CEQA") pursuant to Section 15060(c)(2) of
the CEQA Guidelines, California Code of Regulations, Title 14, Division 6, Chapter 3,
which states that an activity is not subject to CEQA if "[t]he activity will not result in a
direct or reasonably foreseeable indirect physical change in the environment." The LCP
Amendment would allow existing residential dwelling units in mixed use zones to be
used as short term lodging. The LCP Amendment would not authorize new
development that would result in a physical change in the environment.
18-31
Resolution No. 2023-
Page 4 of 4
Section 7: This resolution shall take effect immediately upon its adoption by
the City Council, and the City Clerk shall certify the vote adopting the resolution.
ADOPTED this 28th day of November 2023.
NOAH BLOM
Mayor
ATTEST:
Leilani 1. Brown
City Clerk
APPROVED AS TO FORM:
CITY ATTORNEY'S OFFICE
Aaron . Harp
City A rney
Attachments: Exhibit A - Local Coastal Plan Amendment No. PA2023-0116
Exhibit B - Findings in Support of LCP Amendment No. PA2023-0116
18-32
EXHIBIT "A"
LOCAL COSTAL PLAN AMENDMENT NO. PA2023-0116
Section 1: Rows entitled "Visitor Accommodations, Residential" and "Short Term
Lodging" are hereby added to the "Residential Uses" section of Table 21.22-1 (Allowed
Uses) of Section 21.22.020(C) of the Newport Beach Municipal Code to read as follows:
TABLE 21.22-1
ALLOWED USES
Mixed -Use Zoning Districts
A
—
Allowed
Not Allowed*
Land Use
See Part 7 of this Implementation Plan for
land use definitions.
See Chapter 21.12 for unlisted uses.
MU-V (6)
MU-MM (4)
MU-CV115th St.
(5)(6)
Specific Use
Regulations
Residential Uses
Single -Unit Dwellings
Located on 1st floor
—
—
A (3)
Located above 1st floor
A (1)
—
A (3)
Multi -Unit Dwellings
Located on 1st floor
—
A (1)(2)
A (3)
Located above 1st floor
A (1)
A (1)(2)
A (3)
Two -Unit Dwellings
Located on 1st floor
—
—
A (3)
Located above 1st floor
A (1)
—
A (3)
Home Occupations
A
A (1)
A
Live -Work Units
A
A (1)(2)
A (3)
Accessory Dwelling Units and Junior Accessory
Dwelling Units
A
A
A
Section 21.48.200
Visitor Accommodations, Residential
Short Term Lodging
—
—
A
Chapter 5.95 and
Section 21.48.115
18-33
Section 2: Rows entitled "Visitor Accommodations, Residential" and "Short Term
Lodging" are hereby added to the "Residential Uses" section of Table 21.22-2 (Allowed
Uses) of Section 21.22.020(C) of the Newport Beach Municipal Code to read as follows:
TABLE 21.22-2
ALLOWED USES
Mixed -Use Coastal Zoning Districts
Allowed
Not Allowed
Land Use
See Part 7 of this Implementation Plan for land use
definitions.
See Chapter 21.12 for unlisted uses.
MU-W1 (3)
MU-W2 (5)
Specific Use
Regulations
Residential Uses
Single -Unit Dwellings
Located on 1 st floor
—
—
Located above 1st floor
A (1)
A (2)
Multi -Unit Dwellings
Located on 1stfloor
—
Located above 1st floor
A (1)
A (2)
Two -Unit Dwellings
Located on 1st floor
—
—
Located above 1st floor
A (1)
A (2)
Nome Occupations
A
A (2)
Accessory Dwelling Units and Junior Accessory Dwelling
Units
A
A
Section 21.48.200
Visitor Accommodations, Residential
Short Term Lodging —
A
Chapter 5.95 and
Section 21.48.115
Section 3: The title and content of Section 21.48.115 (Short -Term Lodging) of
the Newport Beach Municipal Code are hereby amended to read as follows:
21.48.115 Snort Term Lodging.
A. Purpose. This section provides standards for the operation of short term lodging
units to prevent overburdening City services and adverse impacts on residential
neighborhoods, multi -use areas, and on coastal access and resources.
18-34
B. Permits within a Residential District.
1. No owner of a short term lodging unit shall advertise for rent, or rent a lodging
unit located within a residential district for a short term, without a valid short term
lodging permit for that unit, issued pursuant to Chapter 5.95.
2. An owner shall be permitted to renew, reinstate, or transfer a valid permit in
accordance with the provisions of Chapter 5.95.
3. As set forth in Section 5.95.042 of Chapter 5.95, the maximum number of short
term lodging permits shall be limited to one thousand four hundred seventy-five
(1,475) permits within a residential district at any time. If there are more than one
thousand four hundred seventy-five (1,475) valid permits that have been issued
within a residential district as of the effective date of Ordinance No. 2023- , no
new permit shall be issued to any person on the waiting list, as described in Section
5.95.042(D), until the total number of permits does not exceed the one thousand
four hundred seventy-five (1,475) limit. To avoid wholesale conversion of existing
and new housing complexes into short term lodgings, multi -unit developments within
a residential district with five (5) or more units may permit a maximum of twenty (20)
percent of the total number of units to be short term lodgings (rounded down to the
nearest whole number).
4. No short term lodging unit shall be permitted on any lot in the R-1 (Single -Unit
Residential) Coastal Zoning District or any lot designated for single -unit dwelling
land use as part of a planned community development plan, unless the short term
lodging unit was legally established on or before June 1, 2004.
C. Permits within Mixed -Use Water Zoning District (MU-W2) and Mixed -Use Cannery
Village and 15th Street Zoning District (MU-CV/15th St.).
1. No owner of a short term lodging unit shall advertise for rent, or rent a lodging
unit located within the Mixed -Use Water (MU-W2) or Mixed -Use Cannery Village
and 15th Street (MU-CV/15th St.) zoning districts for a short term, without a valid
short term lodging permit for that unit, issued pursuant to Chapter 5.95.
2. An owner shall be permitted to renew, reinstate, or transfer a valid permit in
accordance with the provisions of Chapter 5.95.
3. As set forth in Section 5.95.042 of Chapter 5.95, the maximum number of short-
term lodging permits shall be limited to a total of seventy-five (75) permits within the
Mixed -Use Water (MU-W2) and Mixed -Use Cannery Village and 15th Street (MU-
CV/15th St.) districts at any time. No new permit shall be issued to anyone on the
waiting list, as described in Section 5.95.042(F), until the total number of permits is
18-35
less than seventy-five (75). Notwithstanding the foregoing, the seventy-five (75)
permit maximum shall not apply to a short term lodging unit that was legally
established as of November 25, 2010, on a lot within a Mixed -Use Coastal Zoning
District provided the owner maintains a valid short term lodging permit that is not
subsequently revoked or abandoned.
4. Only a property owner that owns twenty (20) or more units under common
ownership within the same Statistical Area as defined by the Land Use Element of
the General Plan shall be eligible to obtain a short term lodging permit(s) in the MU-
W2 and/or MU-CV/15th St. districts. The eligible units may be located upon one (1)
or more separate parcels or properties provided they cumulatively add up to twenty
(20) or more units, and all units are located within the MU-W2 and/or MU-CV/15th
St. districts. Common ownership means the same person, entity or managing
partner holds legal and/or equitable title to no less than fifty percent (50%) of each
property or entity.
D. Operational Standards. The owner, or any other person(s) or entity(ies) that hold(s)
legal and/or equitable title to the lodging unit, shall comply with all federal, State, and
local laws, rules, regulations and conditions of approval including, but not limited to, all
short term lodging permit conditions, as set forth in Chapter 5.95. In addition, the owner,
or any other person(s) or entity(ies) that hold(s) legal and/or equitable title to the lodging
unit, shall:
1. By written agreement, limit overnight occupancy of the short term lodging unit to
the maximum permitted by the Building Code and Fire Code.
2. Use best efforts to ensure that the transient user, occupants and/or guests of
the short term lodging unit do not create unreasonable noise or disturbances,
engage in disorderly conduct, or violate provisions of this Code or any State or
federal law pertaining to noise, disorderly conduct, the consumption of alcohol, or
the use of illegal drugs.
3. Upon notification that any transient user, occupant and/or guest of his or her
short term lodging unit has created unreasonable noise or disturbances, engaged in
disorderly conduct or committed violations of this Code or any State or federal law
pertaining to noise, disorderly conduct, the consumption of alcohol or the use of
illegal drugs, promptly use best efforts to prevent a recurrence of such conduct by
any transient user, occupant or guest.
4. Use best efforts to ensure compliance with applicable health and sanitation
regulations relating to waste disposal.
18-36
5. Post a copy of any applicable permits and conditions in a conspicuous place
within the unit.
6. Not rent, let, advertise for rent, or enter into an agreement for the rental of any
lodging unit, for less than two (2) consecutive nights.
7. The City Manager shall have the authority to impose additional standard
conditions, applicable to all short term lodging units, as necessary to achieve the
objectives of this section.
E. Additional Requirements for Newport Island (Map A-16). To the extent there is any
conflict between this subsection and other provisions of the Code related to short term
rentals on Newport Island (Map A-16), this subsection shall govern and control.
1. In addition to the restriction set forth in Section 5.95.042 and subsection (B)(3)
of this section, the maximum number of short term lodging permits issued for units
located on Newport Island shall be limited to twenty (20) short term lodging permits
at any one time. If there are more than twenty (20) valid short term lodging permits
that have been issued as of January 13, 2022, an owner shall be permitted to
renew, reinstate, or transfer a valid permit in accordance with the provisions of
Chapter 5.95; however, no new permit shall be issued unless: (a) permits are
available for issuance pursuant to Section 5.95.042 and subsection (13)(3) of this
section; and (b) the total number of permits for units located on Newport Island does
not exceed twenty (20). If the City has issued the maximum number of permits
available for units on Newport Island, the City shall maintain a waiting list and follow
the same procedures as set forth in Section 5.95.042(D). For purposes of this
subsection, the maximum number of permits available will be calculated in the same
manner as set forth in Chapter 5.95.
2. An owner, agent, or other person shall only be allowed to rent a dwelling unit on
Newport Island for a short term if the dwelling unit is located on a lot with an owner -
occupied dwelling unit that is managed by the owner of the owner -occupied dwelling
unit. For purposes of this subsection, the term "owner -occupied" means the owner
occupies and lives at the property and the property is used as the owner's primary
residence no less than one hundred eighty-three (183) days of each year and
provides at least two (2) of the following documentation: motor vehicle registration,
driver's license, California State Identification card, voter registration, income tax
return, property tax bill, or a utility bill showing the dwelling unit is the owner's
primary residence. For purposes of this subsection, "managed by the owner" means
that the owner is occupying and living at the property while it is being rented for a
short term use.
18-37
3. The owner and/or agent shall limit the overnight occupancy of the short term
lodging unit on Newport Island to the lesser of: (a) the number of occupants that can
be accommodated consistent with the on -site parking requirement set forth in
subsection (E)(4) of this section, or (b) two (2) persons per bedroom plus two (2)
additional persons, up to a maximum of ten (10) persons. Additional daytime guests
are allowed between the hours of 7:00 a.m. and 10:00 p.m. with the maximum
daytime occupancy limited to a number equal to the maximum overnight occupancy
plus six (6) additional persons. The occupancy restrictions set forth in this
subsection shall be set forth in a written rental agreement.
4. Each short term lodging unit on Newport Island shall provide a minimum of one
(1) parking space in an existing garage or carport. Occupancy shall be limited to a
maximum of five overnight guests for a short term lodging unit providing only one (1)
parking space. The parking required by this subsection shall be free of obstructions
and available for use by the short term lodging user.
5. No owner, agent, or other person shall rent or let a short term lodging unit on
Newport Island more than once in any seven -consecutive -day period.
F. Additional Requirements for the Mixed -Use Water Zoning District (MU-W2) and
Mixed -Use Cannery Village and 15th Street Zoning District (MU-CV/15th St.). To the
extent there is any conflict between this subsection and other provisions of the Code
related to short term lodging within the Mixed -Use Water (MU-W2) district or Mixed -Use
Cannery Village and 15th Street (MU-CV/15th St.) district, this subsection shall govern
and control.
1. Prior to issuance of a short term lodging permit, a management plan shall be
submitted for review and approval by the Community Development Director. The
management plan shall include the following:
a. Acknowledgement and method of compliance with all operational
standards identified in Subsection 21.48.115(D) for all short term lodging units
on the property or properties;
b. Identification of professional management responsible for administering
the permit;
c. Evidence of eligibility and compliance with ownership requirements of
Subsection 21.48.115(C)(4) above;
d. Demonstration that on -site amenities are provided to guests; and
e. Parking management plan ensuring all available on -site parking remain
free of obstructions and available for use by the short term lodging user. For
short term lodging units that are non -conforming due to number of parking
spaces provided, sufficient data to indicate that parking demand will be less
than the required number of spaces or that other parking is available (e.g.,
City parking lot located nearby, on -street parking available, greater than
normal walk in trade, alternative transportation, etc.) such that use or
operation of the short term lodging permit will not reduce availability of
parking in nearby residential neighborhoods.
2. No deed -restricted affordable housing units shall be used for short term lodging.
Section 4: The definition of "Bed and breakfast inn" of Section 21.70.020
(Definitions of Specialized Terms and Phrases) of the Newport Beach Municipal Code is
hereby amended to read as follows:
"Bed and breakfast inn" means a dwelling unit that offers guest rooms or suites for a fee
for thirty (30) days or less, with incidental eating and drinking service provided from a
single kitchen for guests only.
Section 5: The title and definition of "Short-term lodging" of Section 21.70.020
(Definitions of Specialized Terms and Phrases) of the Newport Beach Municipal Code is
hereby amended to read as follows:
"Short term lodging" means a dwelling unit that is rented or leased as a single
housekeeping unit (see "Single housekeeping unit") for a period of thirty (30) days or
less.
18-39
EXHIBIT "B"
FINDINGS IN SUPPORT OF LOCAL COASTAL PLAN AMENDMENT NO. PA2023-
0116
1. The LCP Amendment (PA2023-0116) is consistent with the City's General Plan. It
would serve to implement the following goals and policies of the General Plan:
Land Use Element Policy LU 2.6 (Visitor Serving Uses), which states, "Provide uses
that serve visitors to Newport Beach's ocean, harbor, open spaces, and other
recreational assets, while integrating them to protect neighborhoods and residents."
The proposed amendment would allocate and allow 75 short term lodging permits
within the MU-W2 and MU-CV/15th St. coastal zoning districts, subject to specific
regulations that would require the operation of short term lodging would be subject to a
permit issued by the City, managed by professional management, and not impact
parking in the neighborhood. The amendment would also maintain the existing
Citywide maximum cap of 1,550 permits by establishing a maximum cap of 1,475
permit with residential coastal zoning districts and a maximum cap of 75 permit within
the MU-W2 and MU-CV/15th St. coastal zoning districts. This would maintain the
existing allowance for this type of visitor accommodations in the City without altering
existing provisions and regulations on short term lodging previously adopted to protect
residential neighborhoods.
Land Use Element Goal LU 4, which states, "Management of growth and change to
protect and enhance the livability of neighborhoods and achieve distinct and
economically vital business and employment districts, which are correlated with
supporting infrastructure and public services and sustain Newport Beach's natural
setting." In specific mixed -use zones larger scale (twenty (20) or more units) permit
holders would be permitted to operate. This provides additional opportunities for
properties in the mixed -use zones to achieve and maintain economic viability and
minimizes impacts on residential neighborhoods.
2. The LCP Amendment serves to implement Coastal Land Use Plan (CLUP) Table
2.1.1-1 (Land Use Plan Categories) of the LCP, which establishes the type, density,
and intensity of land uses within the coastal zone. The amendment would allow the
operation of short term lodging in certain mixed -use coastal zoning districts where
the commercialization of existing residential dwellings as visitor accommodations is
more appropriate. This is consistent with allowing visitor serving accommodations in
the mixed -use zones while maintaining the adopted regulations to protect residential
zones.
3. CLUP Policy 2.3.3-6 authorizes the short term rental of dwelling units as a means of
providing lower -cost overnight visitor accommodations. The City currently limits the
maximum number of short term rentals at a cap of 1,550 permits to prevent adverse
impacts to residential areas and preserve housing stock within the coastal zone. To
allow for the small expansion of short term lodging in the more appropriate mixed
�
4. use coastal zoning districts, but maintain and protect existing maximum cap of 1,550
permits, this amendment establishes two separate caps: 1) a maximum cap of 1,475
permit with residential coastal zoning districts; and, 2) a maximum cap of 75 permit
within the MU-W2 and MU-CV/15th St. coastal zoning districts.
18-41
Attachment C
June 22,2023 Planning Commission Minutes
18-42
DocuSign Envelope ID: AC2F3D1 B-4597-493D-AC6C-E2FA1 EE0153B
Planning Commission Meeting
June 22, 2023
1. Conduct a public hearing;
2. Find the amendment is not a project subject to the California Environmental Quality Act (CEQA)
in accordance with Section 21065 of the California Public Resources Code and Sections
15060(c)(2), 15060(c)(3), and 15378 of the California Code of Regulations Title 14, Division 6,
Chapter 3 (CEQA Guidelines). The proposed action is also exempt pursuant to CEQA Guidelines
Section 15061(b)(3), the general rule that CEQA applies only to projects, which have the potential
for causing a significant effect on the environment; and
3. Adopt Resolution No. PC2023-026, recommending the City Council approve a Planned
Community Development Plan Amendment allowing recreational facilities in Area 1 of the
Newport Village Planned Community.
Associate Planner Joselyn Perez utilized a presentation to review a vicinity map, surrounding land uses, the
existing Orange County Transportation Authority (OCTA) site, the proposed amendments to PC-27, staff
recommendation, and next steps.
No ex parte communications were reported by Commissioners.
Chair Ellmore opened the public hearing.
Jim Mosher noted two grammatical errors and questioned if Area 1 is truly large enough for a field as stated in
Section 3, whether the night lighting of the courts would be consistent with the development plan and the
residential uses to the east, and if the amendment would be contrary to promoting alternative means of
transportation by eliminating existing parking spaces at the transit facility.
Deputy Director Campbell clarified that night lighting is referring to security and overnight lighting and any
lighting to illuminate a sport court would be evaluated at the time a project comes forward. He agreed that a
"field" may not be the right wording and suggested removing it. Mr. Campbell explained that as part of the
amendment, required parking for the transit facility and any future recreational use will be evaluated when a
project comes forward. Lastly Mr. Campbell shared a conversation from his earlier meeting with OCTA
regarding the site and how current survey results indicate only a 30 percent utilization on average of the existing
parking lot.
Chair Ellmore closed the public hearing.
In response to Vice Chair Rosene's question, Assistant City Attorney Summerhill noted that there are
exemptions that could and should apply in this scenario.
Motion made by Commissioner Harris and seconded by Commissioner Langford to approve the item as
recommended by staff.
AYES: Barto, Ellmore, Harris, Klaustermeier, Langford, Lowrey, and Rosene
NOES: None
ABSTAIN: None
ABSENT: None
Vill. DISCUSSION ITEMS
ITEM NO. 6 NEW VISITOR -SERVING ACCOMMODATIONS MU-W2 AND MU-CV/15T" ST
Site Location: Various properties located in Lido Village, Cannery Village, McFadden
Square and mixed -use areas on 15t" Street, Agate Avenue, and Marine
Avenue
Summary:
Page 7 of 9
18-43
DocuSign Envelope ID: AC2F3D1 B-4597-493D-AC6C-E2FA1 EE0153B
Planning Commission Meeting
June 22, 2023
At City Council's request on May 23, 2023, Planning Commission was directed to identify
opportunities for to modify Titles 20 and 21 of the Newport Beach Municipal Code to facilitate new
visitor serving accommodation opportunities within the MU-W2 and MU-CV/15t" Street zones. The
request also included several considerations: 1) applicability to multi -unit residential developments
with 20 or more residential units under common ownership, 2) requirement for professional
management, 3) requirement for project amenities, and 4) where there are no parking impacts that
could reduce the availability of parking in residential neighborhoods.
Recommended Action:
1. Receive public comment;
Find recommended actions exempt from the California Environmental Quality Act (CEQA)
pursuant to Section 15262 of the CEQA Guidelines, California Code of Regulations, Title 14,
Chapter 3 because it has no potential to have a significant effect on the environment;
3. Form an ad hoc committee consisting of three Planning Commissioners appointed by the
Chair to develop a recommendation for the Planning Commission to consider and forward to
the City Council; or
4. Instruct staff to prepare a report focusing on the topic that will be reviewed by all the Planning
Commissioners at a future date.
Deputy Director Campbell utilized a presentation to provide an overview of the City Council's direction to
facilitate new visitor serving accommodation opportunities within the MU-W2 and MU-CV/15t" Street zones,
vicinity map, and background on the MU-W2 and MU-CV/15t" Street zones. He asked the Planning Commission
to either establish an ad hoc subcommittee or direct staff to prepare a report with code amendments.
Jim Mosher thought the Planning Commission does not have enough information to move forward and
suggested the item be added to the City Council agenda for discussion and direction.
Chair Ellmore, Vice Chair Rosene, and Commissioner Barto supported a report prepared by staff.
Motion made by Commissioner Barto and seconded by Chair Ellmore to instruct staff to prepare a report
focused on the matter for review by the Planning Commission at a future date.
AYES:
Barto, Ellmore, Harris, Klaustermeier, Lowrey, and Rosene
NOES:
None
RECUSED:
Langford
ABSENT:
None
IX. STAFF AND COMMISSIONER ITEMS
ITEM NO. 7 MOTION FOR RECONSIDERATION
None
ITEM NO. 8 REPORT BY THE COMMUNITY DEVELOPMENT DIRECTOR OR REQUEST FOR MATTERS
WHICH A PLANNING COMMISSION MEMBER WOULD LIKE PLACED ON A FUTURE
AGENDA
Deputy Director Campbell reported that the July 6 Planning Commission meeting is the annual meeting with
three items and officer elections scheduled, City Council will appoint two commissioners by the next meeting, three
items are anticipated for the July 20 meeting, and City Council approved the VE Zone amendment with changes
to the side yard encroachment.
Page 8 of 9
18-44
Attachment D
Planning Commission Resolution No. PC2023-037
18-45
DocuSign Envelope ID: 77441C86-FA2D-4CDD-981C-56BAD903D8CF
RESOLUTION NO. PC2023-037
A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY
OF NEWPORT BEACH, CALIFORNIA RECOMMENDING CITY
COUNCIL ADOPTION OF A CODE AMENDMENT TO CHAPTER
5.95 (SHORT TERM LODGING PERMIT) AND TITLE 20
(PLANNING AND ZONING) OF THE NEWPORT BEACH
MUNICIPAL CODE RELATED TO SHORT TERM LODGING
(PA2023-0116)
THE PLANNING COMMISSION OF THE CITY OF NEWPORT BEACH HEREBY FINDS AS
FOLLOWS:
SECTION 1. STATEMENT OF FACTS.
Section 200 of the City of Newport Beach ("City") Charter vests the City Council with the
authority to make and enforce all laws, rules, and regulations with respect to municipal
affairs subject only to the restrictions and limitations contained in the Charter and the
State Constitution, and the power to exercise, or act pursuant to any and all rights,
powers and privileges, or procedures granted or prescribed by any law of the State of
California.
2. Section 20.66.020 of the Newport Beach Municipal Code ("NBMC") provides that
the Planning Commission or the City Council of the City of Newport Beach ("City")
may initiate an amendment to Title 20 (Planning and Zoning) of the NBMC ("Title
20").
3. City Council Policy K-1 (General Plan and Local Coastal Program) of the NBMC
requires amendments to the City of Newport Beach certified Local Coastal Program
codified in Title 21 (Local Coastal Program Implementation Plan) ("Title 21") to be
initiated by the City Council.
4. On May 23, 2023, the City Council directed the Planning Commission to identify
opportunities to modify Titles 20 and 21 of the NBMC, effectively initiating amendments,
to facilitate new visitor serving accommodation opportunities within the Mixed -Use
Water (MU-W2) and (MU-CV/15th St.) Mixed -Use Cannery Village and 15th Street zoning
districts ("Code Amendment").
5. On June 22, 2023, the Planning Commission discussed the potential to amend Titles 20
and 21 to facilitate new visitor serving accommodations.
6. A public hearing was held on October 19, 2023, in the Council Chambers located at 100
Civic Center Drive, Newport Beach, California. A notice of time, place and purpose of the
public hearing was given in accordance with the California Government Code Section
54950 et seq. ("Ralph M. Brown Act") and Chapter 20.62 (Public Hearings) of the NBMC.
Evidence, both written and oral, was presented to, and considered by, the Planning
Commission at this public hearing.
18-46
DocuSign Envelope ID: 77441C86-FA2D-4CDD-981C-56BAD903D8CF
Planning Commission Resolution No. PC2023-037
Paae 2 of 13
7. The City desires to update Chapter 5.95 (Short Term Lodging Permit), Section
20.22.010 (Purposes of Mixed -Use Zoning Districts), and Section 20.22.020 (Mixed -Use
Zoning Districts and Land Uses and Permit Requirements) of the NBMC.
SECTION 2. CALIFORNIA ENVIRONMENTAL QUALITY ACT DETERMINATION.
The Code Amendment is exempt from environmental review under the California
Environmental Quality Act ("CEQA") pursuant to Section 15060(c)(2) of the CEQA
Guidelines, California Code of Regulations, Title 14, Division 6, Chapter 3, which states that
a project is not subject to further review under CEQA if the activity will not result in a direct
or reasonably foreseeable indirect physical change in the environment. The Code
Amendment would allow existing residential dwelling units in mixed -use zones to be used
for short term lodging. The Code Amendment would not authorize new development that
would result in a physical change in the environment.
SECTION 3. FINDINGS.
1. An amendment to Chapter 5.95 (Short Term Lodging Permit) and Title 20 (Planning and
Zoning) of the NBMC is a legislative act. There are no required findings for either approval or
denial of such amendments. Notwithstanding the foregoing, the Code Amendment is
consistent with the following goals and policies of the City's General Plan:
Land Use Element Policy LU 2.6 (Visitor Serving Uses), which states, "Provide uses that serve
visitors to Newport Beach's ocean, harbor, open spaces, and other recreational assets, while
integrating them to protect neighborhoods and residents." The Code Amendment would
allocate and allow 75 short term lodging permits within the MU-W2 and MU-CV/15th St. zones,
both of which are located in the Coastal Zone, subject to specific regulations that would require
the operation of short-term lodging would be subject to a permit issued by the City, managed
by professional management, and not impact parking in the neighborhood. The Code
Amendment would also maintain the existing Citywide maximum cap of 1,550 permits by
establishing a maximum cap of 1,475 permit with residential coastal zoning districts and a
maximum cap of 75 permit within the MU-W2 and MU-CV/15th St. coastal zoning districts.
This would maintain the existing allowance for this type of visitor accommodations in the
additional visitor accommodations in the City without altering existing provisions and
regulations on short term lodging previously adopted to protect residential neighborhoods.
Land Use Element Goal LU 4 states, "Management of growth and change to protect and
enhance the livability of neighborhoods and achieve distinct and economically vital business
and employment districts, which are correlated with supporting infrastructure and public
services and sustain Newport Beach's natural setting." In specific mixed use zones larger
scale permit holders (twenty (20) or more units) would be permitted to operate. This provides
additional opportunities for properties in the mixed -use zones to achieve and maintain
economic viability and avoids new impacts on residential neighborhoods.
2. A Local Coastal Program Amendment is also underway to ensure the regulations within the
Coastal Zone are consistent with the Code Amendment.
18-47
DocuSign Envelope ID: 77441C86-FA2D-4CDD-981C-56BAD903D8CF
Planning Commission Resolution No. PC2023-037
Paae 3 of 13
3. The recitals provided in this resolution are true and correct and are incorporated into the
operative part of this resolution.
SECTION 4. DECISION.
NOW, THEREFORE, BE IT RESOLVED:
1. The Planning Commission of the City of Newport Beach hereby finds Code Amendment
PA2023-0116 is exempt from environmental review under the California Environmental
Quality Act ("CEQA") pursuant to Section 15060(c)(2) of the CEQA Guidelines, California
Code of Regulations, Title 14, Division 6, Chapter 3, which states that a project is not further
review under CEQA if "[t]he activity will not result in a direct or reasonably foreseeable
indirect physical change in the environment". The Code Amendment would allow existing
residential dwelling units in mixed -use zones to be used as short term lodging. The Code
Amendment would not authorize new development that would result in a physical change
in the environment.
2. The Planning Commission hereby recommends to the City Council adopt the Code
Amendment PA2023-0116 as set forth in Exhibit "A," which is attached hereto and
incorporated herein by reference.
PASSED, APPROVED, AND ADOPTED THIS 19TH DAY OF OCTOBER 2023.
AYES: Harris, Lowrey, and Salene
NOES: Barto
RECUSED: Langford
ABSENT: Ellmore and Rosene
BY: Tiisfxv, RA.v'v'iS
Tristan Harris, Secretary
BY: SU*Wv_,_ , WJIS
Seimone Jurjis, Ex-Officio Secretary
18-48
DocuSign Envelope ID: 77441C86-FA2D-4CDD-981C-56BAD903D8CF
Planning Commission Resolution No. PC2023-037
Paae 4 of 13
1 *:/:111I ifi_VA
CODE AMENDMENT NO. PA2023-0116
Section 1: Subsection (B) of Section 5.95.005 (Purpose and Findings) of the Newport
Beach Municipal Code is hereby amended to read as follows:
B. Over a thousand dwelling units within residential zones near the City's beaches and harbor are
rented for thirty (30) consecutive days or less with the vast majority of those rentals occurring during
the summer when the demand for parking and City services is the greatest.
Section 2: Subsection (B) of Section 5.95.005 (Purpose and Findings) of the Newport
Beach Municipal Code is hereby amended to read as follows:
C. Many of the occupants of short term lodging units are permanent residents of areas distant from
Newport Beach and the City has no effective way to prevent occupants from continuing to violate
provisions of this Code and the Cal. Pen. Code relating to noise, disturbances and disorderly conduct.
The only effective way to minimize the problems associated with occupancy of short term lodging units
is to impose responsibility on the owner of the property, either personally or through an agent, to control
the conduct of guests and occupants.
Section 3: Subsection (L) of Section 5.95.005 (Purpose and Findings) of the Newport
Beach Municipal Code is hereby amended to read as follows:
L. The restrictions of this chapter are necessary to preserve the City's housing stock, the quality and
character of the City's residential neighborhoods and mixed -use areas as well as to prevent and address
the impacts on residential neighborhoods posed by short term lodgings.
Section 4: Subsection (M) is hereby added to Section 5.95.005 (Purpose and Findings) of
the Newport Beach Municipal Code to read as follows:
M. With appropriate restrictions, certain mixed -use zones present an opportunity to accommodate
tourists while protecting the City's residential zones.
Section 5: Section 5.95.010 (Definitions) of the Newport Beach Municipal Code is amended
to read as follows:
5.95.010 Definitions.
For the purpose of this chapter, the following definitions shall apply:
A. "Accessory dwelling unit" shall have the same definition as set forth in Chapter 20.70.
B. "Agent" shall mean any person who is authorized in writing by the owner to represent and act for
an owner.
C. "Booking transaction" shall mean any reservation or payment service provided by a person who
facilitates a short term lodging rental transaction between a transient user and owner for the use of a
unit for a period of thirty (30) consecutive days or less.
D. "Gross floor area" shall mean the area of the lodging unit that includes the surrounding exterior
walls and any interior finished portion of a structure that is accessible and that measures more than six
18-49
DocuSign Envelope ID: 77441C86-FA2D-4CDD-981C-56BAD903D8CF
Planning Commission Resolution No. PC2023-037
Paae 5 of 13
feet from finished floor to ceiling. Stairwells and elevator shafts above the first level shall be excluded
from the calculation of gross floor area.
E. "Home -sharing" shall mean an activity whereby the owner hosts a transient user in the owner's
lodging unit, for compensation, for periods of less than thirty (30) consecutive calendar days, during
which time the owner of the unit lives on site, in the unit, throughout the transient user's stay and the
owner, the transient user and any other occupants live together in the same unit as a single
housekeeping unit.
F. "Hosting platform" shall mean a person, other than an owner or agent, who participates in the short
term lodging business by facilitating a booking transaction using any medium of facilitation.
G. "Lodging unit" or "unit" shall mean a "dwelling unit" as that term is defined in Chapter 20.70. An
accessory dwelling unit shall not be considered a lodging unit or unit for purposes of this chapter.
H. "Multi -use area" shall mean those areas of the City designated by Title 20 and Title 21 as Mixed -
Use Water (MU-W2) and Mixed -Use Cannery Village and 15th Street (MU- CV/15th St.).
I. "Owner" shall mean the person(s) that hold(s) legal and/or equitable title to the lodging unit.
K. "Residential district" shall mean those areas of the City so designated by Title 20 as well as any
other area in the City designated for a residential use as part of a planned community development
plan, specific area plan or planned residential district.
J. "Short term" shall mean a lodging unit that is rented or leased as a single housekeeping unit for a
period of (30) consecutive days or less. This also includes home -sharing.
L. "Short term lodging unit registry" shall mean the published registry maintained by the City that sets
forth a list of all owners and the address of all units that have a valid short term lodging permit and
business license with the City, a copy of which is available, without charge, to any person who requests
a copy and which shall be accessible on the City's website.
M. "Single housekeeping unit" shall have the same definition as set forth in Chapter 20.70.
N. "Transient" or "transient user" shall mean any person or persons who, for any period of thirty (30)
consecutive days or less either at his or her own expense, or at the expense of another, obtains lodging
in a lodging unit or the use of any lodging space in any unit, for which lodging or use of lodging space
a charge is made.
Section 6: Section 5.95.015 (Residential Properties Eligible for Short Term Lodging
Permits) of the Newport Beach Municipal Code is amended to read as follows:
5.95.015 Properties Eligible for Short Term Lodging Permits.
Only properties in a residential district or multi -use area that are authorized under Titles 20 and 21 and
this chapter shall be eligible for a short term lodging permit.
Subsequent to June 1, 2004, no annual permit shall be issued to or renewed for any dwelling unit on
any parcel zoned for "Single -Unit Residential (R-1)" or that is designated for a single-family residential
use as part of a planned community development plan, specific area plan or planned residential district,
unless a permit has previously been issued for that lodging unit and the permit was not subsequently
revoked.
18-50
DocuSign Envelope ID: 77441C86-FA2D-4CDD-981C-56BAD903D8CF
Planning Commission Resolution No. PC2023-037
Paae 6 of 13
Section 7: Section 5.95.020 (Permit Required) of the Newport Beach Municipal Code is
amended to read as follows:
5.95.020 Permit Required.
No owner of a lodging unit shall advertise for rent or rent a lodging unit located within a residential
district or multi -use area for a short term without a valid short term lodging permit for that unit issued
pursuant to this chapter.
Section 8: Section 5.95.030 (Application for Permit) of the Newport Beach Municipal Code
is amended to read as follows:
5.95.030 Application for Permit.
An application for an annual short term lodging permit, renewal of a short term lodging permit,
reinstatement of a short term lodging permit or transfer of a short term lodging permit shall be filed with
the Finance Director upon forms provided by the City.
A. An application for a new permit, renewal permit, the reinstatement of a permit or the transfer of a
permit shall contain the following information:
1. The name, address and telephone number of the owner of the unit for which the short term
lodging permit is to be issued.
2. The name, address and telephone number of the agent, if any, of the owner of the unit.
3. Evidence of a valid business license issued by the City for the separate business of operating
a short term lodging unit or units.
4. The number of bedrooms in the lodging unit.
5. The gross floor area of the lodging unit.
6. The number of parking spaces available on site and a description indicating the location and
size of each parking space.
7. A nuisance response plan, which sets forth the owner's plan for handling disruptive transient
users.
8. A certification that the applicant has reviewed the covenants, conditions and restrictions, if any,
and a short term use is permitted at the location pursuant to the terms of the covenants, conditions
and restrictions, if any.
9. Acknowledgment of receipt and inspection of a copy of all regulations pertaining to the operation
of a short term lodging unit.
10. Such other information as the Finance Director deems reasonably necessary to administer
this chapter.
B. An application for the renewal of a short term lodging permit shall be filed within thirty (30) days of
the short term lodging permit's expiration, or the short term lodging permit shall be deemed abandoned.
C. An application for the reinstatement of a short term lodging permit closed by the Finance Director
pursuant to Section 5.95.080 shall be filed within thirty (30) days of the date the permit was closed by
the Finance Director, or the short term lodging permit shall be deemed abandoned.
18-51
DocuSign Envelope ID: 77441C86-FA2D-4CDD-981C-56BAD903D8CF
Planning Commission Resolution No. PC2023-037
Paae 7 of 13
D. An application for the reinstatement of a previously suspended short term lodging permit shall be
filed within thirty (30) days of the end of the suspension period, or the short term lodging permit shall be
deemed abandoned.
E. If any application is deemed incomplete, which shall be determined in the sole discretion of the
Finance Director, the application shall be completed within thirty (30) days of the service of notice that
the application is incomplete, which shall be served in accordance with Section 1.08.080, or the
application and any associated permit shall be deemed abandoned.
F. If good causes exist, as determined in the sole discretion of the Finance Director, the Finance
Director may extend the deadlines set forth in subsections (B) through (E) of this section.
Section 9: Section 5.95.035 (Denial of Permits) of the Newport Beach Municipal Code is
amended to read as follows:
5.95.035 Denial of Permit.
If permits are available for issuance, no timely application filed by an owner for an annual permit,
renewal of a permit, reinstatement of a permit or transfer of a permit for a unit eligible to be used as a
short term lodging unit, as provided for in Section 5.95.015 and this Code, shall be denied unless: the
owner does not have a current valid business license; the owner has failed to pay transient occupancy
tax, the visitor service fee, a penalty, a fine or inspection cost, due and owing to the City; the nuisance
response plan is deemed inadequate by the Finance Director; the short term lodging permit for the
same unit and issued to the same owner has been revoked, or the short term lodging permit is not
eligible for reinstatement.
Section 10: Section 5.95.042 (Maximum Number of Permits) of the Newport Beach
Municipal Code is amended to read as follows:
5.95.042 Maximum Number of Permits.
A. Except as provided in subsection (B), the maximum number of short term lodging permits in a
residential district shall be limited to one thousand four hundred seventy-five (1,475) permits at any
time. If there are more than one thousand four hundred seventy-five (1,475) valid permits in residential
districts as of the effective date of the ordinance, an owner shall be permitted to renew, reinstate, or
transfer a valid permit in accordance with the provisions of this chapter; however, no new permit shall
be issued to any person on the waiting list, as described in subsection (F) of this section, until the total
number of residential district permits does not exceed one thousand four hundred seventy-five (1,475).
To avoid wholesale conversion of existing and new housing complexes into short term lodgings within
the residential district, multi -unit developments with five (5) or more units may permit a maximum of
twenty (20) percent of the total number of units to be short term lodgings (rounded down to the nearest
whole number).
B. The maximum number of short term lodging permits in the multi -use area shall be limited to
seventy-five (75) permits. No new permit shall be issued to any person on the waiting list, as described
in subsection (F) of this section, until the total number of multi -use area permits less than seventy-five
(75). Notwithstanding the foregoing, the seventy-five (75) permit maximum shall not apply to a short
term lodging unit that was legally established as of INSERT DATE on a lot within a Mixed -Use Coastal
Zoning District provided the owner maintains a valid short term lodging permit that is not subsequently
revoked or abandoned.
C. For purposes of calculating the maximum number of permits available described in subsection
(A) or (B) of this section, a permit shall be deemed valid and unavailable until it is abandoned in
18-52
DocuSign Envelope ID: 77441C86-FA2D-4CDD-981C-56BAD903D8CF
Planning Commission Resolution No. PC2023-037
Paae 8 of 13
accordance with Sections 5.95.030(B) through (F), and/or Section 5.95.043(B) or, if the short term
lodging permit has been revoked.
D. An owner who has a short term lodging permit, or an owner seeking to reinstate a short term
lodging permit that has not been abandoned in accordance with Sections 5.95.030(B) through (F), shall
have priority to renew or reinstate the permit over anyone on the waiting list, as described in subsection
(F) of this section.
E. An owner seeking to transfer a valid short term lodging permit that files an application within the
time frames set forth in Section 5.95.043(A) shall have priority to transfer the permit over anyone on the
waiting list, as described in subsection (F) of this section.
F. If the City has issued the maximum number of permits available, the City shall maintain a waiting
list. An application for placement on the waiting list shall be submitted to the Finance Director, on a form
approved by the Finance Director, and shall be accompanied by a fee established by resolution of the
City Council. In the event a short term lodging permit becomes available, the Finance Director shall
notify the person or persons next in order on the waiting list as provided for in Section 1.08.080. The
notice shall specify that applications will be accepted for ten (10) days after the date of the notice, and
that failure to apply within the ten (10) day period shall result in removal of the person or persons
receiving notice from the waiting list. The City shall not be liable for a failure to notify any person or
persons on the waiting list since placement on the list does not create any property right in any person
or persons on the list nor any contractual obligation on the part of the City.
Section 11: Subsections A(19) through A(22) of Section 5.95.045 (Conditions) of the
Newport Beach Municipal Code is amended to read as follows:
19. The owner shall allow the City to inspect the short term lodging unit to confirm the number of
bedrooms, gross floor area, and number/availability of parking spaces, seven days after the City
serves the owner with a request for inspection in accordance with Section 1.08.080. If, based on
the inspection, it is determined that the information submitted to the City in accordance with Section
5.95.030 was false, in addition to any other remedy set forth in this chapter, the owner agrees that
the owner shall be liable for the cost of conducting the inspection.
20. The owner shall provide the City with a copy of any written rental agreement(s) and the good
neighbor policy, within seven days after the City serves the owner with a notice of request for written
rental agreements and the good neighbor policy in accordance with Section 1.08.080.
21. Neither an owner nor the owner's agent shall rent, let, advertise for rent, or enter into an
agreement for the rental of any lodging unit, for less than two consecutive nights.
22. The owner shall:
a. Require every transient user and guest of the transient user to comply with all State and
local laws that regulate parking while staying at or visiting the short term lodging unit;
b. Require every transient user to provide the owner with the license plate number for all
vehicles which are used by the transient user or the transient user's guest while staying at or
visiting the short term lodging unit; and
c. Provide the City with the vehicle license plate number(s) for every vehicle which was used
by the transient user or the transient user's guest while staying at or visiting the short term
lodging, within seven days after the City serves the owner with a notice of request for the vehicle
license plate number(s) in accordance with Section 1.08.080.
18-53
DocuSign Envelope ID: 77441C86-FA2D-4CDD-981C-56BAD903D8CF
Planning Commission Resolution No. PC2023-037
Paae 9 of 13
Section 12: Section 5.95.055 (Issuance of Administrative Subpoenas) of the Newport
Beach Municipal Code is amended to read as follows:
5.95.055 Issuance of Administrative Subpoenas.
The City Manager shall have the authority to issue and serve administrative subpoenas to the owner,
agent or hosting platform, as necessary, to obtain specific information regarding short term rental listings
located in the City, including but not limited to the names of the persons responsible for each such
listing, the address of each such listing, the length of stay for each such listing and the price paid for
each stay, to determine whether the short term rental listing complies with this chapter. Any subpoena
issued pursuant to this section shall not require the production of information sooner than thirty (30)
days from the date of service. A person that has been served with an administrative subpoena may
seek judicial review during that thirty (30) day period. Failure to respond to an administrative subpoena
in accordance with the terms set forth therein shall be punishable in accordance with Section 5.95.060
and the City may file a judicial action to compel compliance with the subpoena.
Section 13: Section 5.95.060 (Violations, Penalties and Enforcement) of the Newport
Beach Municipal Code is deleted in its entirety.
Section 14: Subsection A(3) of Section 5.95.065 (Suspensions and Revocations) of the
Newport Beach Municipal Code is amended to read as follows:
3. If a lodging unit that is subject to a short term lodging permit has been the location of two or
more loud or unruly gatherings, as defined in Chapter 10.66, while the lodging unit was occupied
on a short term basis, within any twenty-four (24) month period, the permit may be suspended for
a period of one year or revoked in accordance with subsection (B) of this section. A loud or unruly
gathering that occurred prior to the passage of fourteen (14) days from the mailing of notice to the
owner in compliance with Section 10.66.030(D) shall not be included within the calculation of the
two or more loud or unruly gatherings required to revoke a short term lodging permit.
Section 15: Subsection (B) of Section 5.95.065 (Suspensions and Revocations) of the
Newport Beach Municipal Code is amended to read as follows:
B. Permits shall be suspended or revoked, only in the manner provided in this section.
1. The Finance Director shall investigate whenever he or she has reason to believe that an owner
has submitted an application that contains false information or committed a violation of a permit
condition, this Code, state or federal law related to a permitted unit. Such investigation may include,
but is not limited to, on -site property inspections. Should the investigation reveal substantial
evidence to support a finding that warrants a suspension or revocation of the short term lodging
permit, the Finance Director shall issue written notice of intention to suspend or revoke the short
term lodging permit. The written notice shall be served on the owner in accordance with Section
1.08.080, and shall specify the facts which, in the opinion of the Finance Director constitute
substantial evidence to establish grounds for imposition of the suspension and/or revocation, and
specify the proposed time the short term lodging permit shall be suspended and/or that the short
term lodging permit shall be revoked within thirty (30) days from the date the notice is given, unless
the owner files with the Finance Director, before the suspension and/or revocation becomes
effective, a request for hearing before a hearing officer, who shall be retained by the City, and pays
the fee for the hearing established by resolution of the City Council.
2. If the owner requests a hearing and pays the hearing fee, established by resolution of the City
Council, within the time specified in subsection (B)(1) of this section, the Finance Director shall
serve written notice on the owner, pursuant to Section 1.08.080, setting forth the date, time and
18-54
DocuSign Envelope ID: 77441C86-FA2D-4CDD-981C-56BAD903D8CF
Planning Commission Resolution No. PC2023-037
Paae 10 of 13
place for the hearing. The hearing shall be scheduled not less than fifteen (15) days, nor more than
sixty (60) days, from the date on which notice of the hearing is served by the Finance Director. The
hearing shall be conducted according to the rules normally applicable to administrative hearings.
At the hearing, the hearing officer will preside over the hearing, take evidence and then submit
proposed findings and recommendations to the City Manager. The City Manager shall suspend or
revoke the short term lodging permit only upon a finding that a violation has been proven by a
preponderance of the evidence, and that the suspension or revocation is consistent with the
provisions of this section. The City Manager shall render a decision within thirty (30) days of the
hearing and the decision shall be final as to the City but subject to judicial review pursuant to Cal.
Code Civ. Proc. Section 1094.5.
Section 16: Section 5.95.080 (License and Permit Closure) of the Newport Beach
Municipal Code is amended to read as follows:
5.95.080 License and Permit Closure.
A. Any owner that has ceased operating a short term lodging unit shall inform the Finance Director in
writing of the date of the last rental, and having done such, the short term lodging permit shall be closed.
The City will send a final transient occupancy tax and visitor service fee bill, which will be due and
payable thirty (30) days from the date of the invoice.
B. The Finance Director shall close any permit that has no short term lodging activity for a period of
two (2) consecutive annual reporting periods as evidenced by the owner and/or agent remitting zero
dollars ($0.00) on the required transient occupancy tax and visitor service fee forms or the owner/agent
failing to return these forms. After any permit closure pursuant to this subsection, the owner may reapply
one (1) time for reinstatement of the short term lodging permit which shall be processed in accordance
with Section 5.95.030. Any subsequent closure of the short term lodging permit pursuant to this
subsection shall not be eligible for reinstatement.
Section 17: Rows entitled "Visitor Accommodations, Residential" and "Short Term
Lodging" are hereby added to the "Residential Uses" section of Table 2-8 (Allowed Uses) of
Section 20.22.020 (Mixed -Use Zoning Districts Land Uses and Permit Requirements) of the
Newport Beach Municipal Code as follows:
Mixed -Use Zoning Districts
Permit Requirements
P
Permitted by Right
TABLE 2-8
ALLOWED USES AND PERMIT
CUP
Conditional Use Permit (Section 20.52.020)
REQUIREMENTS
MUP
Minor Use Permit (Section 20.52.020)
LTP
Limited Term Permit (Section 20.52.040)
—
Not Allowed
Land Use
See Part 7 of this title for land use
MU-V
MU-MM (6)
MU-DW
MU-CV/15th
Specific Use
definitions.
St. (7)
Regulations
See Chapter 20.12 for unlisted uses.
Residential Uses
18-55
DocuSign Envelope ID: 77441C86-FA2D-4CDD-981C-56BAD903D8CF
Planning Commission Resolution No. PC2023-037
Paae 11 of 13
Mixed -Use Zoning Districts
Permit Requirements
P
Permitted by Right
TABLE 2-8
ALLOWED USES AND PERMIT
CUP
Conditional Use Permit (Section 20.52.020)
REQUIREMENTS
MUP
Minor Use Permit (Section 20.52.020)
LTP
Limited Term Permit (Section 20.52.040)
—
Not Allowed*
Land Use
See Part 7 of this title for land use
MU-V
MU-MM (6)
MU-DW
MU-CV/15th
Specific Use
definitions.
St. (7)
Regulations
See Chapter 20.12 for unlisted uses.
Accessory Dwelling Units and Junior Accessory
P
P
P
P
Section
Dwelling Units
20.48.200
Single -Unit Dwellings
Located on 1st floor
P (3)
Section
20.48.130
Located above 1st floor
P (1)
—
—
P (3)
Section
20.48.130
Multi -Unit Dwellings
Located on 1st floor
—
P (1)(2)
P (1)
P (3)
Section
20.48.130
Located above 1st floor
P (1)
P (1)(2)
P (1)
P (3)
Section
20.48.130
Two -Unit Dwellings
Located on 1st floor
P (3)
Section
20.48.130
Located above 1st floor
P (1)
—
—
P (3)
Section
20.48.130
Home Occupations
P
P (1)
P
P
Section
20.48.130
Live -Work Units
P
P (1)(2)
P
P (3)
Visitor Accommodations, Residential
Short Term Lodging
P
Chapter 5.95
Section 18: Rows entitled "Visitor Accommodations, Residential" and "Short Term
Lodging" are hereby added to the "Residential Uses" section of Table 2-9 (Allowed Uses) of
Section 20.22.020 (Mixed -Use Zoning Districts Land Uses and Permit Requirements) of the
Newport Beach Municipal Code as follows:
18-56
DocuSign Envelope ID: 77441C86-FA2D-4CDD-981C-56BAD903D8CF
Planning Commission Resolution No. PC2023-037
Paae 12 of 13
TABLE 2-9
ALLOWED USES AND PERMIT REQUIREMENTS
Mixed -Use Zoning Districts
Permit Requirements
P
CUP
MUP
LTP
—
Permitted by Right
Conditional Use Permit (Section 20.52.020)
Minor Use Permit (Section 20.52.020)
Limited Term Permit (Section 20.52.040)
Not allowed
Land Use
See Part 7 of this title for land use definitions.
See Chapter 20.12 for unlisted uses.
MU-W1 (5)(6)
MU-W2
Specific Use
Regulations
Residential Uses
Accessory Dwelling Units and Junior Accessory Dwelling
Units
P
P
Section 20.48.200
Single -Unit Dwellings
Located on 1st floor
Located above 1st floor
P (1)
P (2)
Section 20.48.130
Multi -Unit Dwellings
Located on 1st floor
Located above 1st floor
P (1)
P (2)
Section 20.48.130
Two -Unit Dwellings
Located on 1st floor
—
—
Located above 1st floor
P (1)
P (2)
Home Occupations
P
P (2)
Section 20.48.110
Visitor Accommodations, Residential
Short Term Lodging
—
P
Chapter 5.95
Section 19: Subsection A(3)(f) of Section 20.38.060 (Nonconforming Parking) of the
Newport Beach Municipal Code is amended to read as follows:
f. Outside the coastal zone, dwellings within the residential development shall not be rented
for periods of thirty (30) days or less. Refer to subsection (A)(4)(f) of this section for short-term
lodging allowances for developments within the coastal zone; and
Section 20: Subsection B(4)(h) of Section 20.48.205 (SB 9 Housing Developments and
Urban Lot Splits in Single -Unit Residential Zoning Districts) of the Newport Beach Municipal
Code is amended to read as follows:
h. Short -Term Lodging. Any dwelling unit permitted pursuant to an SB 9 housing development
or urban lot split shall not be rented for periods of thirty (30) days or less.
18-57
DocuSign Envelope ID: 77441C86-FA2D-4CDD-981C-56BAD903D8CF
Planning Commission Resolution No. PC2023-037
Paae 13 of 13
Section 21: The definition of "Bed and breakfast inn" of Section 20.70.020 (Definitions of
Specialized Terms and Phrases) of the Newport Beach Municipal Code is amended to read as
follows:
"Bed and breakfast inn" means a dwelling unit that offers guest rooms or suites for a fee for thirty
(30) days or less, with incidental eating and drinking service provided from a single kitchen for
guests only.
Section 22: The definition of "Short-term lodging" of Section 20.70.020 (Definitions of
Specialized Terms and Phrases) of the Newport Beach Municipal Code is amended to read as
follows:
5. "Short-term lodging" means a dwelling unit that is rented or leased as a single housekeeping
unit (see "Single housekeeping unit") for a period of less (30) days or less, subject to the
requirements of Chapter 5.95 (Short Term Lodging Permits) and any additional standards required
by the City Manager.
18-58
Attachment E
Planning Commission Resolution No. PC2023-038
18-59
DocuSign Envelope ID: 77441 C86-FA2D-4CDD-981 C-56BAD903D8CF
RESOLUTION NO. PC2023-038
A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY
OF NEWPORT BEACH, CALIFORNIA RECOMMENDING CITY
COUNCIL AUTHORIZE SUBMITTAL OF A LOCAL COASTAL
PLAN AMENDMENT TO THE CALIFORNIA COASTAL
COMMISSION REQUESTING TO AMEND TITLE 21 (LOCAL
COASTAL PROGRAM IMPLEMENTATION PLAN) OF THE
NEWPORT BEACH MUNICIPAL CODE RELATED TO SHORT
TERM LODGING (PA2023-0116)
THE PLANNING COMMISSION OF THE CITY OF NEWPORT BEACH HEREBY FINDS AS
FOLLOWS:
SECTION 1. STATEMENT OF FACTS.
1. Section 30500 of the California Public Resources Code requires each county and city
to prepare a Local Coastal Program ("LCP") for that portion of the coastal zone within
its jurisdiction.
2. In 2005, the City adopted the City of Newport Beach Local Coastal Program Coastal
Land Use Plan as amended from time to time.
3. The California Coastal Commission effectively certified the City's Local Coastal Program
Implementation Plan on January 13, 2017, and the City added Title 21 to the NBMC
whereby the City assumed coastal development permit -issuing authority on January 30,
2017.
4. On May 23, 2023, the City Council directed the Planning Commission to identify
opportunities to modify Titles 20 and 21 of the NBMC, effectively initiating amendments,
to facilitate new visitor serving accommodation opportunities within the Mixed -Use
Water (MU-W2) and Mixed -Use Cannery Village and 15t" Street (MU-CV/15th St.)
zoning districts ("LCP Amendment").
5. On June 22, 2023, the Planning Commission discussed the potential to amend Titles 20
and 21 to facilitate new visitor serving accommodations.
6. Pursuant to Section 13515 (Public Participation and Agency Coordination Procedures)
of the California Code of Regulations Title 14, Division 5.5, Chapter 8, Subchapter 2, Article
5 (Public Participation) ("Section 13515"), drafts of LCP Amendment (PA2023-0116) were
made available and a Notice of Availability was distributed at least six weeks prior to the
anticipated final action date.
7. A public hearing was held on October 19, 2023, in the Council Chambers located at 100
Civic Center Drive, Newport Beach, California. A notice of time, place and purpose of the
public hearing was given in accordance with the California Government Code Section
54950 et seq. ("Ralph M. Brown Act") and Chapter 21.62 (Public Hearings) of the NBMC.
DocuSign Envelope ID: 77441C86-FA2D-4CDD-981C-56BAD903D8CF
Planning Commission Resolution No. PC2023-038
Paae 2 of 10
Evidence, both written and oral, was presented to, and considered by, the Planning
Commission at this public hearing.
SECTION 2. CALIFORNIA ENVIRONMENTAL QUALITY ACT DETERMINATION.
The LCP Amendment is exempt from environmental review under the California
Environmental Quality Act ("CEQA") pursuant to Section 15060(c)(2) of the CEQA
Guidelines, California Code of Regulations, Title 14, Division 6, Chapter 3, which states that
a project is not further review under CEQA if the activity will not result in a direct or
reasonably foreseeable indirect physical change in the environment. The Code Amendment
would allow existing residential dwelling units in mixed -use zones to be used for short term
lodging. The Code Amendment would not authorize new development that would result in
a physical change in the environment.
SECTION 3. FINDINGS.
1. The LCP Amendment (PA2023-0116) is consistent with the City's General Plan. It would serve
to implement the following goals and policies of the General Plan:
Land Use Element Policy LU 2.6 (Visitor Serving Uses), which states, "Provide uses that serve
visitors to Newport Beach's ocean, harbor, open spaces, and other recreational assets, while
integrating them to protect neighborhoods and residents." The proposed amendment would
allocate and allow 75 short term lodging permits within the MU-W2 and MU-CV/15th St.
coastal zoning districts, subject to specific regulations that would require the operation of short-
term lodging would be subject to a permit issued by the City, managed by professional
management, and not impact parking in the neighborhood. The amendment would also
maintain the existing Citywide maximum cap of 1,550 permits by establishing a maximum cap
of 1,475 permit with residential coastal zoning districts and a maximum cap of 75 permit within
the MU-W2 and MU-CV/15th St. coastal zoning districts. This would maintain the existing
allowance for this type of visitor accommodations in the City without altering existing provisions
and regulations on short term lodging previously adopted to protect residential neighborhoods.
Land Use Element Goal LU 4, which states, "Management of growth and change to protect
and enhance the livability of neighborhoods and achieve distinct and economically vital
business and employment districts, which are correlated with supporting infrastructure and
public services and sustain Newport Beach's natural setting." In specific mixed -use zones
larger scale (twenty (20) or more units) would be permitted to operate. This provides additional
opportunities for properties in the mixed -use zones to achieve and maintain economic viability
and minimizes impacts on residential neighborhoods.
2. The LCP Amendment serves to implement Coastal Land Use Plan (CLUP) Table 2.1.1-1
(Land Use Plan Categories) of the LCP, which establishes the type, density, and intensity
of land uses within the coastal zone. The amendment would allow the operation of short-
term lodging in certain mixed -use coastal zoning districts where the commercialization of
existing residential dwellings as visitor accommodations is more appropriate. This is
consistent with allowing visitor serving accommodations in the mixed -use zones while
maintaining the adopted regulations to protect residential zones.
18-61
DocuSign Envelope ID: 77441C86-FA2D-4CDD-981C-56BAD903D8CF
Planning Commission Resolution No. PC2023-038
Paae 3 of 10
3. CLUP Policy 2.3.3-6 authorizes the short-term rental of dwelling units as a means of
providing lower -cost overnight visitor accommodations. The City currently limits the
maximum number of short-term rentals at a cap of 1,550 permits to prevent adverse impacts
to residential areas and preserve housing stock within the coastal zone. To allow for the
small expansion of short term lodging in the more appropriate mixed use coastal zoning
districts, but maintain and protect existing maximum cap of 1,550 permits, this amendment
establishes two separate caps: 1) a maximum cap of 1,475 permit with residential coastal
zoning districts; and, 2) a maximum cap of 75 permit within the MU-W2 and MU-CV/15th St.
coastal zoning districts.
4. The LCP Amendment (PA2023-0116) shall not become effective until approval by the
California Coastal Commission and adoption, including any modifications suggested by the
California Coastal Commission, by resolution and/or ordinance of the City Council of the
City of Newport Beach.
5. The LCP, including the LCP Amendment (PA2023-0116), will be carried out fully in
conformity with the California Coastal Act.
6. The recitals provided in this resolution are true and correct and are incorporated into the
operative part of this resolution.
SECTION 4. DECISION.
NOW, THEREFORE, BE IT RESOLVED:
The Planning Commission of the City of Newport Beach hereby finds Local Costal Program
Amendment PA2023-0116 is exempt from environmental review under the California
Environmental Quality Act ("CEQA") pursuant to Section 15060(c)(2) of the CEQA
Guidelines, California Code of Regulations, Title 14, Division 6, Chapter 3, which states that
a project is not further review under CEQA if "[t]he activity will not result in a direct or
reasonably foreseeable indirect physical change in the environment." The Code
Amendment would allow existing residential dwelling units in mixed use zones to be used
as short-term lodging. The Code Amendment would not authorize new development that
would result in a physical change in the environment.
2. The Planning Commission hereby recommends the City Council authorize staff to submit
the Local Coastal Program Amendment PA2023-0116, as set forth in Exhibit "A," which is
attached hereto and incorporated herein by reference, to the California Coastal
Commission.
PASSED, APPROVED, AND ADOPTED THIS 19TH DAY OF OCTOBER 2023.
AYES: Harris, Lowrey, and Salene
NOES: Barto
18-62
DocuSign Envelope ID: 77441C86-FA2D-4CDD-981C-56BAD903D8CF
Planning Commission Resolution No. PC2023-038
Paae 4 of 10
RECUSED: Langford
ABSENT: Ellmore and Rosene
BY: Tiisfav, RA.v'v'iS
Tristan Harris, Secretary
BY: �U'Wvx , WJIS
Seimone Jurjis, Ex-Officio Secretary
18-63
DocuSign Envelope ID: 77441C86-FA2D-4CDD-981C-56BAD903D8CF
Planning Commission Resolution No. PC2023-038
Paae 5 of 10
10:/:111I ifi_VA
LOCAL COSTAL PLAN AMENDMENT NO. PA2023-0116
Section 1: Rows entitled "Visitor Accommodations, Residential" and "Short Term Lodging"
are hereby added to the "Residential Uses" section of Table 21.22-1 (Allowed Uses) of Section
21.22.020 of the Newport Beach Municipal Code as follows:
TABLE 21.22-1
ALLOWED USES
Mixed -Use Zoning Districts
A
—
Allowed
Not Allowed
Land Use
See Part 7 of this Implementation Plan for
land use definitions.
See Chapter 21.12 for unlisted uses.
MU-V (6)
MU-MM (4)
MU-CV/15th St.
(5)(6)
Specific Use
Regulations
Residential Uses
Single -Unit Dwellings
Located on 1st floor
A (3)
Located above 1st floor
A (1)
—
A (3)
Multi -Unit Dwellings
Located on 1st floor
—
A (1)(2)
A (3)
Located above 1st floor
A (1)
A (1)(2)
A (3)
Two -Unit Dwellings
Located on 1st floor
A (3)
Located above 1st floor
A (1)
—
A (3)
Home Occupations
A
A (1)
A
Live -Work Units
A
A (1)(2)
A (3)
Accessory Dwelling Units and Junior Accessory
Dwelling Units
A
A
A
Section 21.48.200
Visitor Accommodations, Residential
Short -Term Lodging
A
Chapter 5.95 and
Section 21.48.115
Section 2: Rows entitled "Visitor Accommodations, Residential" and "Short Term Lodging"
are hereby added to the "Residential Uses" section of Table 21.22-2 (Allowed Uses) of Section
21.22.020 of the Newport Beach Municipal Code as follows:
18-64
DocuSign Envelope ID: 77441C86-FA2D-4CDD-981C-56BAD903D8CF
Planning Commission Resolution No. PC2023-038
Paae 6 of 10
TABLE 21.22-2
ALLOWED USES
Mixed -Use Coastal Zoning Districts
Allowed
Not Allowed "
Land Use
See Part 7 of this Implementation Plan for land use
definitions.
See Chapter 21.12 for unlisted uses.
MU-W1 (3)
MU-W2 (5)
Specific Use
Regulations
Residential Uses
Single -Unit Dwellings
Located on 1st floor
—
—
Located above 1st floor
A (1)
A (2)
Multi -Unit Dwellings
Located on 1st floor
Located above 1st floor
A (1)
A (2)
Two -Unit Dwellings
Located on 1 st floor
—
—
Located above 1st floor
A (1)
A (2)
Home Occupations
A
A (2)
Accessory Dwelling Units and Junior Accessory Dwelling
Units
A
A
Section 21.48.200
Visitor Accommodations, Residential
Short -Term Lodging
—
A
Chapter 5.95 and
Section 21.48.115
Section 3: Section 21.48.115 (Short -Term Lodging) of the Newport Beach Municipal Code
is amended in its entirety to read as follows:
21.48.115 Short -Term Lodging.
A. Purpose. This section provides standards for the operation of short-term lodging units to
prevent overburdening City services and adverse impacts on residential neighborhoods, multi-
use areas, and on coastal access and resources.
B. Permits within a Residential District.
1. No owner of a short-term lodging unit shall advertise for rent, or rent a lodging unit
located within a residential district for a short term, without a valid short-term lodging permit
for that unit, issued pursuant to Chapter 5.95.
2. An owner shall be permitted to renew, reinstate, or transfer a valid permit in accordance
with the provisions of Chapter 5.95.
18-65
DocuSign Envelope ID: 77441C86-FA2D-4CDD-981C-56BAD903D8CF
Planning Commission Resolution No. PC2023-038
Paae 7 of 10
3. As set forth in Section 5.95.042 of Chapter 5.95, the maximum number of short-term
lodging permits shall be limited to one thousand four hundred seventy-five (1,475) permits
within a residential district at any time. If there are more than one thousand four hundred
seventy-five (1,475) valid permits that have been issued within a residential district as of
the effective date of Ordinance No. 2023- , no new permit shall be issued to any person
on the waiting list, as described in Section 5.95.042(D), until the total number of permits
does not exceed the one thousand four hundred seventy-five (1,475) limit. To avoid
wholesale conversion of existing and new housing complexes into short-term lodgings,
multi -unit developments within a residential district with five (5) or more units may permit a
maximum of twenty (20) percent of the total number of units to be short-term lodgings
(rounded down to the nearest whole number).
4. No short-term lodging unit shall be permitted on any lot in the R-1 (Single -Unit
Residential) Coastal Zoning District or any lot designated for single -unit dwelling land use
as part of a planned community development plan, unless the short-term lodging unit was
legally established on or before June 1, 2004.
C. Permits within Mixed -Use Water Zoning District (MU-W2) and Mixed -Use Cannery Village
and 15th Street Zoning District (MU-CV/15th St.).
1. No owner of a short-term lodging unit shall advertise for rent, or rent a lodging unit
located within the Mixed -Use Water (MU-W2) or Mixed -Use Cannery Village and 15th
Street (MU-CV/15th St.) zoning districts for a short term, without a valid short-term lodging
permit for that unit, issued pursuant to Chapter 5.95.
2. An owner shall be permitted to renew, reinstate, or transfer a valid permit in
accordance with the provisions of Chapter 5.95.
3. As set forth in Section 5.95.042 of Chapter 5.95, the maximum number of short- term
lodging permits shall be limited to a total of seventy-five (75) permits within the MU-W2
and MU-CV/15th St. districts at any time. No new permit shall be issued to anyone on the
waiting list, as described in Section 5.95.042(F), until the total number of permits does not
exceed the seventy-five (75) limit. Notwithstanding the foregoing, the seventy-five (75)
permit maximum shall not apply to a short term lodging unit that was legally established as
of INSERT DATE on a lot within a Mixed -Use Coastal Zoning District provided the owner
maintains a valid short term lodging permit that is not subsequently revoked or abandoned.
4. Only a property owner that owns twenty (20) or more units under common ownership
within the same Statistical Area as defined by the Land Use Element of the General Plan
shall be eligible to obtain a short-term lodging permit(s) in the MU-W2 and/or MU-CV/15th
St. districts. The eligible units may be located upon one (1) or more separate parcels or
properties provided they cumulatively add up to twenty (20) or more units, and all units are
located within the MU-W2 and/or MU-CV/15th St. districts. Common ownership means the
same person, entity or managing partner holds legal and/or equitable title to no less than
fifty percent (50%) of each property or entity.
D. Operational Standards. The owner, or any other person(s) or entity(ies) that hold(s) legal
and/or equitable title to the lodging unit, shall comply with all Federal, State, and local laws,
rules, regulations and conditions of approval including, but not limited to, all short-term lodging
18-66
DocuSign Envelope ID: 77441C86-FA2D-4CDD-981C-56BAD903D8CF
Planning Commission Resolution No. PC2023-038
Paae 8 of 10
permit conditions, as set forth in Chapter 5.95. In addition, the owner, or any other person(s)
or entity(ies) that hold(s) legal and/or equitable title to the lodging unit, shall:
1. By written agreement, limit overnight occupancy of the short-term lodging unit to the
maximum permitted by the Building Code and Fire Code.
2. Use best efforts to ensure that the transient user, occupants and/or guests of the short-
term lodging unit do not create unreasonable noise or disturbances, engage in disorderly
conduct, or violate provisions of this Code or any State or Federal law pertaining to noise,
disorderly conduct, the consumption of alcohol, or the use of illegal drugs.
3. Upon notification that any transient user, occupant and/or guest of his or her short-
term lodging unit has created unreasonable noise or disturbances, engaged in disorderly
conduct or committed violations of this Code or any State or Federal law pertaining to noise,
disorderly conduct, the consumption of alcohol or the use of illegal drugs, promptly use best
efforts to prevent a recurrence of such conduct by any transient user, occupant or guest.
4. Use best efforts to ensure compliance with applicable health and sanitation regulations
relating to waste disposal.
5. Post a copy of any applicable permits and conditions in a conspicuous place within the
unit.
6. Not rent, let, advertise for rent, or enter into an agreement for the rental of any lodging
unit, for less than two consecutive nights.
7. The City Manager shall have the authority to impose additional standard conditions,
applicable to all short-term lodging units, as necessary to achieve the objectives of this
section.
E. Additional Requirements for Newport Island (Map A-16). To the extent there is any conflict
between this subsection and other provisions of the Code related to short-term rentals on
Newport Island (Map A-16), this subsection shall govern and control.
1. In addition to the restriction set forth in Section 5.95.042 and subsection (B)(3) of this
section, the maximum number of short-term lodging permits issued for units located on
Newport Island shall be limited to twenty (20) short-term lodging permits at any one time. If
there are more than twenty (20) valid short-term lodging permits that have been issued as
of January 13, 2022, an owner shall be permitted to renew, reinstate, or transfer a valid
permit in accordance with the provisions of Chapter 5.95; however, no new permit shall be
issued unless: (a) permits are available for issuance pursuant to Section 5.95.042 and
subsection (B)(3) of this section; and (b) the total number of permits for units located on
Newport Island does not exceed twenty (20). If the City has issued the maximum number
of permits available for units on Newport Island, the City shall maintain a waiting list and
follow the same procedures as set forth in Section 5.95.042(D). For purposes of this
subsection, the maximum number of permits available will be calculated in the same
manner as set forth in Chapter 5.95.
2. An owner, agent, or other person shall only be allowed to rent a dwelling unit on
Newport Island for a short term if the dwelling unit is located on a lot with an owner -occupied
18-67
DocuSign Envelope ID: 77441C86-FA2D-4CDD-981C-56BAD903D8CF
Planning Commission Resolution No. PC2023-038
Paae 9 of 10
dwelling unit that is managed by the owner of the owner -occupied dwelling unit. For
purposes of this subsection, the term "owner -occupied" means the owner occupies and
lives at the property and the property is used as the owner's primary residence. For
purposes of this subsection, "managed by the owner" means that the owner is occupying
and living at the property while it is being rented or a short-term use.
3. The owner and/or agent shall limit the overnight occupancy of the short-term lodging
unit on Newport Island to the lesser of: (a) the number of occupants that can be
accommodated consistent with the on -site parking requirement set forth in subsection
(E)(4) of this section, or (b) two persons per bedroom plus two additional persons, up to a
maximum of ten (10) persons. Additional daytime guests are allowed between the hours of
7:00 a.m. and 10:00 p.m. with the maximum daytime occupancy limited to a number equal
to maximum overnight occupancy plus six additional persons. The occupancy restrictions
set forth in this subsection shall be set forth in a written rental agreement.
4. Each short-term lodging unit on Newport Island shall provide a minimum of one parking
space in an existing garage or carport. Occupancy shall be limited to a maximum of five
overnight guests for a short-term lodging unit providing only one parking space. The parking
required by this subsection shall be free of obstructions and available for use by the short-
term lodging user.
5. Any existing permit holder of a dwelling unit that is not located on an owner -occupied
lot per subsection (E)(2) of this section or does not meet the parking requirements of
subsection (E)(4) of this section will be permitted to retain their permit until January 13,
2023.
6. No owner, agent, or other person shall rent or let a short-term lodging unit on Newport
Island more than once in any seven -consecutive -day period.
F. Additional Requirements for the Mixed -Use Water Zoning District (MU-W2) and Mixed -
Use Cannery Village and 15th Street Zoning District (MU-CV/15th St.). To the extent there is
any conflict between this subsection and other provisions of the Code related to short-term
lodging within the MU-W2 district or MU-CV/15th St. district, this subsection shall govern and
control.
1. Prior to issuance of a short-term lodging permit, a management plan shall be submitted
for review and approval by the Community Development Director. The management plan
shall include the following:
a. Acknowledgement and method of compliance with all operational standards
identified in Subsection 21.48.115(D) for all short-term lodging units on the property
or properties;
b. Identification of professional management responsible for administering the
permit;
c. Evidence of eligibility and compliance with ownership requirements of Subsection
21.48.115(C)(4) above;
d. Demonstration that on -site amenities are provided to guests; and
18-68
DocuSign Envelope ID: 77441C86-FA2D-4CDD-981C-56BAD903D8CF
Planning Commission Resolution No. PC2023-038
Paae 10 of 10
e. Parking management plan ensuring all available on -site parking remain free of
obstructions and available for use by the short-term lodging user. For short-term
lodging units that are non -conforming due to number of parking spaces provided,
sufficient data to indicate that parking demand will be less than the required number
of spaces or that other parking is available (e.g., City parking lot located nearby, on -
street parking available, greater than normal walk in trade, alternative transportation,
etc.) such that use or operation of the short term lodging permit will not reduce
availability of parking in nearby residential neighborhoods.
2. No deed -restricted affordable housing units shall be used for short-term lodging.
Section 4: The definition of "Bed and breakfast inn" of 21.70.020 (Definitions of
Specialized Terms and Phrases) of the Newport Beach Municipal Code is amended to read as
follows:
1. "Bed and breakfast inn" means a dwelling unit that offers guest rooms or suites for a
fee for thirty (30) days or less, with incidental eating and drinking service provided from a
single kitchen for guests only.
Section 5: The definition of "Short-term lodging" of 21.70.020 (Definitions of Specialized
Terms and Phrases) of the Newport Beach Municipal Code is amended to read as follows:
7. "Short-term lodging" means a dwelling unit that is rented or leased as a single
housekeeping unit (see "Single housekeeping unit") for a period of thirty (30) days or less.
18-69
Attachment F
October 19, 2023 Planning Commission Minutes
18-70
DocuSign Envelope ID: 28239A4F-998A-4C28-A3F5-3AACAB9416C7
Planning Commission Regular Meeting Minutes
October 19, 2023
AYES: Barto, Lowrey, Langford, Harris, and Salene
NOES: None
ABSTAIN: None
ABSENT: Ellmore and Rosene
ITEM NO. 3 MUNICIPAL CODE AMENDMENTS RELATED TO SHORT TERM LODGING (PA2023-
0116)
Site Location: Citywide
Summary:
Amendments to Chapter 5.95 (Short Term Lodging Permit), Title 20 (Planning and Zoning) and Title 21
(Local Coastal Program Implementation Plan) of the Newport Beach Municipal Code that include the
following:
• Establishing regulations permitting short term lodging within the MU-W2 (Mixed -Use Water) and MU-
CV/151h Street (Mixed -Use Cannery Village and 15th Street) zoning districts;
• Changing the maximum cap of short term lodging permits from 1,550 permits Citywide to: 1) 1,475
permits in residential districts; and 2) 75 permits within the MU-W2 and MU-CV/15th Street zoning
districts;
• Correcting an inconsistency in the definition and use of short term lodging and bed and breakfast inn
to mean a rental of 30 days or less; and
• Revisions related to violations, suspensions, revocations, and permit closures.
Recommended Actions:
1. Conduct a public hearing;
2. Find the recommended actions and the attached resolution exempt from the California
Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activity will not result in
a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3)
(the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code
of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change
to the environment, directly or indirectly;
3. Adopt Resolution No. PC2023-037 recommending the City Council adoption of a Code
Amendment to Chapter 5.95 (Short Term Lodging Permit) and Title 20 (Planning and Zoning)
of the Newport Beach Municipal Code related to short term lodging (PA2023-0116)
(Attachment No. PC 1); and
4. Adopt Resolution No. PC2023-038 recommending the City Council authorize submittal of
Local Coastal Plan Amendment to the California Coastal Commission requesting to amend
Title 21 (Local Coastal Program Implementation Plan) of the Newport Beach Municipal Code
related to short term lodging (PA2023-0116) (Attachment No. PC 2).
Commissioner Langford recused himself due to parcels owned by his employer in the zoning districts at
hand.
Planning Manager Murillo used a presentation to review the code and local coastal program (LCP)
amendments related to short term lodging (STL), background, proposed amendments, a mixed -used district
graphic, proposed changes for STL in mixed -use zones, and a recommendation. He noted that amendments
would also need to be submitted to the California Coastal Commission (CCC) for approval.
Commissioner Salene expressed concern for a high minimum unit count requirement in the same statistical
area per owner, and in response, Planning Manager Murillo noted that the proposed unit count was based
Page 7 of 11
18-71
DocuSign Envelope ID: 28239A4F-998A-4C28-A3F5-3AACAB9416C7
Planning Commission Regular Meeting Minutes
October 19, 2023
upon the initial direction from the City Council. Assistant City Manager Jurjis also noted that the two-year
STL permit inactivity requirement came from an Ad Hoc Subcommittee recommendation.
Commissioner Lowrey expressed no ex parte communication and the remaining Commissioners disclosed
ex parte communications with landowners in the mixed -use zones.
Secretary Harris opened the public hearing.
Jim Mosher reviewed the direction by City Council and suspected that the Council wants to reduce the time
share unit requirements from 100 units to 20 units and then questioned why the unit count would be limited
to two specific districts and separate permit caps.
Denys Oberman agreed with the concept, questioned limiting it to specific districts, suggested extending into
other mixed -use areas, expressed concern for the transition process from residential areas to mixed -use
zones, asked for a more specific plan from staff and a quantitative target and timing of how many units can
be reallocated, and noted no opportunities for close proximity parking to accommodate the code
requirement.
Planning Manager Murillo noted that there will be two separate caps with associated waiting lists. He further
explained that permits would be immediately available for mixed use properties and there may be an interim
period where permits exceed 1550 until the residential cap and total number of permits reduce through
attrition. He relayed that staff does not expect the 75 permits in the mixed -use districts to be secured right
away.
Secretary Harris closed the public hearing.
In response to Commissioner Lowrey's questions, Planning Manager Murillo confirmed that owners of one
unit cannot participate, and an eligible permit holder is required to own 20 units under common ownership.
Commissioner Lowrey stated he will not support this recommendation because it excludes a lot of people.
In response to Secretary Harris' question, Assistant City Manager Jurjis relayed that the direction to staff
came from the City Council as an A-1 item and the Planning Commission can disagree and make a
recommendation.
Commissioner Salene concurred with Commissioner Lowrey.
In response to Commissioner Barto's comment, Planning Manager Murillo concurred that the 20-unit
requirement relates to the professional manager and amenity requirements.
In response to Commissioner Salene's question, Planning Manager Murillo stated that the code allows for
flexible amenities and provided examples.
In response to Secretary Harris' question, Planning Manager Murillo indicated that the 75 units will be
available immediately after adoption by the City Council and the California Coastal Commission.
Motion was made by Commissioner Lowrey with no second motion to approve the item with an amendment
to the unit count from 20 units to one unit.
Commissioner Barto expressed concern for enabling a transient community by allowing a STL for a single
unit owner. He opposed the motion. In response, Commissioner Lowrey counter argued that the net number
is not increasing.
Motion was made by Commissioner Barto and seconded by Secretary Harris to approve the item as
recommended.
AYES: Harris and Barto
Page 8 of 11
18-72
DocuSign Envelope ID: 28239A4F-998A-4C28-A3F5-3AACAB9416C7
Planning Commission Regular Meeting Minutes
October 19, 2023
NOES: Lowrey and Salene
ABSTAIN: None
ABSENT: Ellmore and Rosene
Motion made by Secretary Harris and seconded by Commissioner Lowrey to approve the item with an
amendment to the unit count to a minimum of one unit.
AYES: Harris, Lowrey, and Salene
NOES: Barto
ABSTAIN: None
ABSENT: Ellmore and Rosene
ITEM NO. 4 MUNICIPAL CODE AMENDMENTS (PA2022-0219)
Site Location: Citywide
Summary:
The City Council established the Ad Hoc Municipal Code and Council Policy Review Committee to
comprehensively review and amend the Newport Beach Municipal Code (NBMC) to reduce regulations,
streamline processes, and generally eliminate outdated information and directed boards and
commissions, including the Planning Commission, to establish an ad hoc committee to review the NBMC
and City Council Policies within that particular body's area of expertise with recommended revisions. At
its August 3, 2023, meeting, the Planning Commission made recommended revisions to Title 19
(Subdivisions), Title 20 (Planning and Zoning) and Title 21 (Local Coastal Program Implementation Plan)
of the NBMC in accordance with the Council's direction. The recommendations include:
• Tentative Parcel Map Review — Eliminate the public hearing requirement for parcel maps for
condominium purposes.
• Bluff Overlay District — Eliminate conflicting code provisions by deleting the bluff overlay areas in Title
20 that are included in Title 21.
• Take -Out Service —Fast -Casual — Change threshold for when a fast -casual take-out restaurant with
no late hours requires a minor use permit (discretionary review).
• Conversion or Demolition of Affordable Housing — Eliminate Chapters 20.34 and 21.34 as they are
inapplicable to the City.
Recommended Actions:
1. Conduct a public hearing;
2. Find the recommended action not subject to the California Environmental Quality Act (CEQA)
pursuant to Sections 1506(c)(2) and 15060(c)(3) of the CEQA Guidelines, California Code of
Regulations, Title 14, Chapter 3; and
3. Adopt Planning Commission Resolution No. PC2023-039, recommending City Council
adoption of a Code Amendment to Title 19 (Subdivisions), Title 20 (Planning and Zoning) and
Title 21 (Local Coastal Program Implementation Plan) of the Newport Beach Municipal Code
incorporating the Ad Hoc Committee's recommendations and other related revisions (PA2022-
0219) (Attachment No. PC 1).
Planning Manager Murillo used a presentation to review the municipal code changes to reduce regulations, support
of City Council efforts, recommended areas affecting Titles 19, 20, and 21, additional amendments, and
recommendation.
In response to Commissioner Lowrey's question, Planning Manager Murillo relayed that the parcel map provision
would be applicable to four condos or less.
Page 9 of 11
18-73
Attachment G
MU-W2 and MU-CV/15t" Street Zoning Districts Map
18-74
s
OSPITAL Rp - ♦♦ , MU-W2 and MU-CV/15th Street Zoning
wpm.,Zr4
LIDO
PENINSULA
�IUU BAY IJL/
ST Aw, � 1 S L E ISLAND
aft
-40, to�
co
�.`
co
0.1 02
N E W PORT BEACH Miles
E
IIIIIIIIIII�
BALBOA
C yA lV /IEL
l_VIbIISOilf�511��1u11E�PiF]G<]f]'ll(.L^1 �{.T.
18-75
Attachment H
Redline Strikeouts of Proposed Amendments
18-76
PROPOSED CODE AMENDMENT NO. PA2023-0116
Chapter 5.95 and Title 20 Revisions (Redline Strikeouts)
Section 1: The Table of Contents of Chapter 5.95 (Short Term Lodging Permit) of the
Newport Beach Municipal Code is hereby amended to read as follows:
Sections:
5.95.005 Purpose and Findings.
5.95.010 Definitions.
5.95.015 Docirlo^*ice' Properties Eligible for Short Term Lodging Permits.
5.95.020 Permit Required.
5.95.025 Agency.
5.95.030 Application for Permit.
5.95.035 Denial of Permit.
5.95.040 Filing Fee.
5.95.042 Maximum Number of Permits.
5.95.043 Transfer of Permit.
5.95.045 Conditions.
5.95.047 Violations of Permit Conditions by Transient User, Occupant or
Guest.
5.95.050 Agents and Hosting Platform Responsibilities.
5.95.055 Issuance of Administrative Subpoenas.
Violations,5.95.060
5.95.065 Suspensions and Revocations.
5.95.070 Permits and Fees Not Exclusive.
5.95.080 License and Permit Closure.
Section 2: Subsection (B) of Section 5.95.005 (Purpose and Findings) of the Newport
Beach Municipal Code is hereby amended to read as follows:
B. Over a thousand dwelling units within residential zones near the City's beaches and
harbor are rented for less thaRthirty (30) consecutive Ga'� T days or less with the vast
majority of those rentals occurring during the summer when the demand for parking and
City services is the greatest.
Section 3: Subsection (C) of Section 5.95.005 (Purpose and Findings) of the Newport
Beach Municipal Code is hereby amended to read as follows:
C. Many of the occupants of short term lodging units are permanent residents of areas
distant from Newport Beach and the City has no effective way to prevent occupants from
continuing to violate provisions of this Code and the Cal. Pen. A4-Code relating to noise,
disturbances and disorderly conduct. The only effective way to minimize the problems
associated with occupancy of short term lodging units is to impose responsibility on the
owner of the property, either personally or through an agent, to control the conduct of
guests and occupants.
18-77
Section 4: Subsection (L) of Section 5.95.005 (Purpose and Findings) of the Newport
Beach Municipal Code is hereby amended to read as follows:
L. The restrictions of this chapter are necessary to preserve the City's housing stock,
the quality and character of the City's residential neighborhoods and mixed -use areas as
well as to prevent and address the impacts on residential neighborhoods posed by short
term lodgings.
Section 5: Subsection (M) of Section 5.95.005 (Purpose and Findings) of the Newport
Beach Municipal Code is hereby added to read as follows:
M. With appropriate restrictions, certain mixed -use zones present an opportunity to
accommodate tourists while protecting the City's residential zones.
Section 6: Section 5.95.010 (Definitions) of the Newport Beach Municipal Code is
hereby amended to read as follows:
5.95.010 Definitions.
For the purpose of this chapter, the following definitions shall apply:
A. "Accessory dwelling unit" shall have the same definition as set forth in Chapter
20.70.
B. "Agent" shall mean any person who is authorized in writing by the owner to
represent and act for an owner.
C. "Booking transaction" shall mean any reservation or payment service provided by
a person who facilitates a short term lodging rental transaction between a transient user
and owner for the use of a unit for a period of loc�rnr thirty (30) consecutive GaI�ar
days or less.
D. "Git i M g 'ors " shall TmTeaR y MaRager of the City or his or her desigmee.
G asCinanGe DireGWF" shall meaRthe—PiRaRGe DireEter of the City or er her
D. "Gross floor area" shall mean the area of the lodging unit that includes the
surrounding exterior walls and any interior finished portion of a structure that is accessible
and that measures more than six feet from finished floor to ceiling. Stairwells and elevator
shafts above the first level shall be excluded from the calculation of gross floor area.
"Home -sharing" shall mean an activity whereby the owner hosts a transient user
in the owner's lodging unit, for compensation, for periods of less than thirty (30)
consecutive calendar days, during which time the owner of the unit lives on site, in the
unit, throughout the transient user's stay and the owner, the transient user and any other
occupants live together in the same unit as a single housekeeping unit.
F#. "Hosting platform" shall mean a person, other than an owner or agent, who
participates in the short term lodging business by facilitating a booking transaction using
any medium of facilitation.
GI. "Lodging unit" or "unit" shall mean a "dwelling unit" as that term is defined in
Chapter 20.70. An accessory dwelling unit shall not be considered a lodging unit or unit
for purposes of this chapter.
HJ. "Multi -use area" shall mean those areas of the City designated by Title 20 and Title
21 as Mixed -Use Water (MU-W2) and Mixed -Use Cannery Village and 15th Street (MU-
CV/15th St.).
IJ. "Owner" shall mean the person(s) that hold(s) legal and/or equitable title to the
lodging unit.
GOrperatiens, partRerships ef every kind, Glubs, business OF GOMmen law trusts, K. "Person" shall mean any individual and aRY fOFrn of buSiRess eRtity iRGlUdiRg, bult
er limited liability nGmr»nioo
KL. "Residential district" shall mean those areas of the City so designated by Title 20
as well as any other area in the City designated for a residential use as part of a planned
community development plan, specific area plan or planned residential district.
im. "Short term" shall mean a lodging unit that is rented or leased as a single
housekeeping unit for a period of less thaR (30) consecutive Gal days or less.
This also includes home -sharing.
LN. "Short term lodging unit registry" shall mean the published registry maintained by
the City that sets forth a list of all owners and the address of all units that have a valid
short term lodging permit and business license with the City, a copy of which is available,
without charge, to any person who requests a copy and which shall be accessible on the
City's website.
MO. "Single housekeeping unit" shall have the same definition as set forth in Chapter
20.70.
NP-. "Transient" or "transient user" shall mean any person or persons who, for any
period less of thirty (30) consecutive Galena days or less either at his or her own
expense, or at the expense of another, obtains lodging in a lodging unit or the use of any
lodging space in any unit, for which lodging or use of lodging space a charge is made.
Section 7: The title and contents of Section 5.95.015 (Residential Properties Eligible
for Short Term Lodging Permits) of the Newport Beach Municipal Code are hereby
amended to read as follows:
5.95.015 Resmdentia Properties Eligible for Short Term Lodging Permits.
Only properties in a residential district or multi -use area that are authorized under Titles
20 and 21 and this chapter shall be eligible for a short term lodging permit.
18-79
Subsequent to June 1, 2004, no annual permit shall be issued to or renewed for any
dwelling unit on any parcel zoned for "Single -Unit Residential (R-1)" or that is designated
for a single-family residential use as part of a planned community development plan,
specific area plan or planned residential district, unless a permit has previously been
issued for that lodging unit and the permit was not subsequently revoked.
Section 8: Section 5.95.020 (Permit Required) of the Newport Beach Municipal Code
is hereby amended to read as follows:
5.95.020 Permit Required.
No owner of a lodging unit shall advertise for rent or rent a lodging unit located within a
residential district or multi -use area for a short term without a valid short term lodging
permit for that unit issued pursuant to this chapter.
Section 9: Section 5.95.030 (Application for Permit) of the Newport Beach Municipal
Code is hereby amended to read as follows:
5.95.030 Application for Permit.
An application for an annual short term lodging permit, renewal of a short term lodging
permit, reinstatement of a short term lodging permit or transfer of a short term lodging
permit shall be filed with the Finance Director upon forms provided by the City.
A. An application for a new permit, renewal permit, the reinstatement of a permit or
the transfer of a permit shall contain the following information:
1. The name, address and telephone number of the owner of the unit for which the
short term lodging permit is to be issued.
2. The name, address and telephone number of the agent, if any, of the owner of
the unit.
3. Evidence of a valid business license issued by the City for the separate
business of operating a short term lodging unit or units.
4. The number of bedrooms in the lodging unit.
5. The gross floor area of the lodging unit.
6. The number of parking spaces available on site and a description indicating the
location and size of each parking space.
7. A nuisance response plan, which sets forth the owner's plan for handling
disruptive transient users.
8. A certification that the applicant has reviewed the covenants, conditions and
restrictions, if any, and a short term use is permitted at the location pursuant to the
terms of the covenants, conditions and restrictions, if any.
9. Acknowledgment of receipt and inspection of a copy of all regulations pertaining
to the operation of a short term lodging unit.
10. Such other information as the Finance Director deems reasonably necessary
to administer this chapter.
B. An application for the renewal of a short term lodging permit shall be filed within
thirty (30) days of the short term lodging permit's expiration, or the short term
lodging permit shall be deemed abandoned.
C. An application for the reinstatement of a short term lodging permit closed by the
Finance Director pursuant to Section 5.95.080 shall be filed within thirty (30) GaleRda
days of the date the permit was closed by the Finance Director, or the short term lodging
permit shall be deemed abandoned.
D. An application for the reinstatement of a previously suspended short term lodging
permit shall be filed within thirty (30) Ga'�a days of the end of the suspension period,
or the short term lodging permit shall be deemed abandoned.
E. If any application is deemed incomplete, which shall be determined in the sole
discretion of the Finance Director, the application shall be completed within thirty (30)
rn�a-r days of the service of notice that the application is incomplete, which shall be
served in accordance with Section 1.08.080, or the application and any associated permit
shall be deemed abandoned.
F. If good causes exist, as determined in the sole discretion of the Finance Director,
the Finance Director may extend the deadlines set forth in subsections (B) through (E) of
this section.
has been deemed abaR dORed
Section 10: Section 5.95.035 (Denial of Permit) of the Newport Beach Municipal Code
is hereby amended to read as follows:
5.95.035 Denial of Permit.
If permits are available for issuance, no timely application filed by an owner for an annual
permit, renewal of a permit, reinstatement of a permit or transfer of a permit for a unit
eligible to be used as a short term lodging unit, as provided for in Section 5.95.015 and
this Code, shall be denied unless: the owner does not have a current valid business
license; the owner has failed to pay transient occupancy tax, the visitor service fee, a
penalty, a fine or inspection cost, due and owing to the City; the nuisance response plan
is deemed inadequate by the Finance Director; the short term lodging permit for the
same unit and issued to the same owner has been revoked, or the short term lodging
permit is not eligible for reinstatement.
Section 11: Section 5.95.042 (Maximum Number of Permits) of the Newport Beach
Municipal Code is hereby amended to read as follows:
5.95.042 Maximum Number of Permits.
A. Except as provided in subsection (B), Tthe maximum number of short term lodging
permits in a residential district shall be limited to one thousand five hundred fifty
one thousand four hundred seventy-five (1,475) permits at any time. If there are more
than ene thousand fide hundred fifty (1,550) one thousand four hundred seventy-five
(1,475) valid permits in residential districts that have boon iss ied as of January 13, 2022
the effeGtiye date of the ordinanr+o , an owner shall be permitted to renew, reinstate, or
transfer a valid permit in accordance with the provisions of this chapter; however, no new
permit shall be issued to any ep rson eee on the waiting list, as described in subsection
(Fs) of this section, until the total number of residential district permits does not exceed
tl4e one thousand five hundred fifty (1,550) one thousand four hundred seventy-five
1 475 .
shall be deerned valmd and unavailable until Ot is abandoned on aGGordanGe with SeGtmep,&
5.95.030(B) 0(B) through (F) anther SeGtra„ n 5.95.043(6).
+o-�To avoid wholesale conversion o
existing and new housing complexes into short term lodgings within the residential district,
multi -unit developments with five (5) or more units may permit a maximum of twenty (20)
percent of the total number of units to be short term lodgings (rounded down to the nearest
whole number).
B. The maximum number of short term lodging permits in the multi -use area shall be
limited to seventy-five (75) permits. No new permit shall be issued to any person on the
waiting list, as described in subsection (FB) of this section, until the total number of multi-
use area permits is less than seventy-five (75). Notwithstanding the foregoing, the
seventy-five (75) permit maximum shall not apply to a short term lodging unit that was
legally established as of November 25, 2010, on a lot within a Mixed -Use Coastal Zoning
District provided the owner maintains a valid short term lodging permit that is not
subseauently revoked or abandoned.
C. For purposes of calculating the maximum number of short term lodging permits
available as provided in subsection (A) or (B) of this section, a short term lodging permit
shall be deemed valid and unavailable unless abandoned in accordance with Sections
5.95.030(B) through (F), and/or Section 5.95.043(B) or, if the short term lodging permit
has been revoked and the time has run to seek administrative or judicial review of the
decision.
D.B-. An owner who has a short term lodging permit, or an owner seeking to reinstate
a short term lodging permit that has not been abandoned in accordance with Sections
5.95.030(B) through (F), shall have priority to renew or reinstate the permit over anyone
on the waiting list, as described in subsection (FD) of this section.
E.G-. An owner seeking to transfer a valid short term lodging permit that files an
application within the time frames set forth in Section 5.95.043(A) shall have priority to
transfer the permit over anyone on the waiting list, as described in subsection (FD) of this
section.
F.D-. If the City has issued the maximum number of permits available, the City shall
maintain a waiting list. An application for placement on the waiting list shall be submitted
to the Finance Director, on a form approved by the Finance Director, and shall be
18-82
accompanied by a fee established by resolution of the City Council. In the event a short
term lodging permit becomes available, the Finance Director shall notify the person or
persons next in order on the waiting list as provided for in Section 1.08.080. The notice
shall specify that applications will be accepted for ten (10) GaleRda days after the date of
the notice, and that failure to apply within the ten (10) Galendar day period shall result in
removal of the person or persons receiving notice from the waiting list. ",wR^e�le
The City
shall not be liable for a failure to notify any person or persons on the waiting list since
placement on the list does not create any property right in any person or persons on the
list nor any contractual obligation on the part of the City.
Section 12: Subsections A(19) through A(22) of Section 5.95.045 (Conditions) of the
Newport Beach Municipal Code are hereby amended to read as follows:
19. The owner shall allow the City to inspect the short term lodging unit to confirm
the number of bedrooms, gross floor area, and number/availability of parking spaces,
seven MGalep4a days after the City serves the owner with a request for inspection
in accordance with Section 1.08.080. If, based on the inspection, it is determined that
the information submitted to the City in accordance with Section 5.95.030 was false,
in addition to any other remedy set forth in this chapter, the owner agrees that the
owner shall be liable for the cost of conducting the inspection.
20. The owner shall provide the City with a copy of any written rental agreement(s)
and the good neighbor policy, within seven MGa4R4a-r days after the City serves the
owner with a notice of request for written rental agreements and the good neighbor
policy in accordance with Section 1.08.080.
21. Neither an owner nor the owner's agent shall rent, let, advertise for rent, or
enter into an agreement for the rental of any lodging unit, for less than two
consecutive nights.
22. The owner shall:
a. Require every transient user and guest of the transient user to comply with
all State and local laws that regulate parking while staying at or visiting the short
term lodging unit;
b. Require every transient user to provide the owner with the license plate
number for all vehicles which are used by the transient user or the transient user's
guest while staying at or visiting the short term lodging unit; and
C. Provide the City with the vehicle license plate number(s) for every vehicle
which was used by the transient user or the transient user's guest while staying
at or visiting the short term lodging, within seven (7)Ga!eRdaT days after the City
serves the owner with a notice of request for the vehicle license plate number(s)
in accordance with Section 1.08.080.
18-83
Section 13: Section 5.95.055 (Issuance of Administrative Subpoenas) of the Newport
Beach Municipal Code is hereby amended to read as follows:
5.95.055 Issuance of Administrative Subpoenas.
The City Manager shall have the authority to issue and serve administrative subpoenas
to the owner, agent or hosting platform, as necessary, to obtain specific information
regarding short term rental listings located in the City, including but not limited to the
names of the persons responsible for each such listing, the address of each such listing,
the length of stay for each such listing and the price paid for each stay, to determine
whether the short term rental listing complies with this chapter. Any subpoena issued
pursuant to this section shall not require the production of information sooner than thirty
(30) GaIGRdaf days from the date of service. A person that has been served with an
administrative subpoena may seek judicial review during that thirty (30) ^'''�aT day
period. Failure to respond to an administrative subpoena in accordance with the terms
set forth therein shall be punishable in accordance with Section 5.95.060 and the City
may file a judicial action to compel compliance with the subpoena.
Section 14: Section 5.95.060 (Violations, Penalties and Enforcement) of the Newport
Beach Municipal Code is hereby deleted in its entirety:
595.0ations, Penalties d EnfoTEernent.
vielating any of the previsions er failing tO GGrnPIY with any ef the requirements of this
Of SeGtien 1 04 01 O(E) and Chapter 1.05.
Section 15: Subsection A(3) of Section 5.95.065 (Suspensions and Revocations) of
the Newport Beach Municipal Code is hereby amended to read as follows:
3. If a lodging unit that is subject to a short term lodging permit has been the
location of two (2) or more loud or unruly gatherings, as defined in Chapter 10.66,
while the lodging unit was occupied on a short term basis, within any twenty-four (24)
month period, the permit may be suspended for a period of one M year or revoked
in accordance with subsection (B) of this section. A loud or unruly gathering that
occurred prior to the passage of fourteen (14) �a'�aF days from the mailing of notice
to the owner in compliance with Section 10.66.030(D) shall not be included within the
calculation of the two Q or more loud or unruly gatherings required to revoke a short
term lodging permit.
Section 16: Subsection (B) of Section 5.95.065 (Suspensions and Revocations) of
the Newport Beach Municipal Code is hereby amended to read as follows:
B. Permits shall be suspended or revoked, only in the manner provided in this section.
1. The Finance Director shall investigate whenever he or she has reason to
believe that an owner has submitted an application that contains false information or
committed a violation of a permit condition, this Code, state or federal law related to
a permitted unit. Such investigation may include, but is not limited to, on -site property
inspections. Should the investigation reveal substantial evidence to support a finding
that warrants a suspension or revocation of the short term lodging permit, the Finance
Director shall issue written notice of intention to suspend or revoke the short term
lodging permit. The written notice shall be served on the owner in accordance with
Section 1.08.080, and shall specify the facts which, in the opinion of the Finance
Director constitute substantial evidence to establish grounds for imposition of the
suspension and/or revocation, and specify the proposed time the short term lodging
permit shall be suspended and/or that the short term lodging permit shall be revoked
within thirty (30) ^"'�daT days from the date the notice is given, unless the owner
files with the Finance Director, before the suspension and/or revocation becomes
effective, a request for hearing before a hearing officer, who shall be retained by the
City, and pays the fee for the hearing established by resolution of the City Council.
2. If the owner requests a hearing and pays the hearing fee, established by
resolution of the City Council, within the time specified in subsection (13)(1) of this
section, the Finance Director shall serve written notice on the owner, pursuant to
Section 1.08.080, setting forth the date, time and place for the hearing. The hearing
shall be scheduled not less than fifteen (15) G^'eRda days, nor more than sixty (60)
' aleRdaT days, from the date on which notice of the hearing is served by the Finance
Director. The hearing shall be conducted according to the rules normally applicable
to administrative hearings. At the hearing, the hearing officer will preside over the
hearing, take evidence and then submit proposed findings and recommendations to
the City Manager. The City Manager shall suspend or revoke the short term lodging
permit only upon a finding that a violation has been proven by a preponderance of the
evidence, and that the suspension or revocation is consistent with the provisions of
this section. The City Manager shall render a decision within thirty (30) Genda days
of the hearing and the decision shall be final as to the City but subject to judicial review
Dursuant to Cal. Code Civ. Proc. Section 1094.5.
Section 17: Section 5.95.080 (License and Permit Closure) of the Newport Beach
Municipal Code is hereby amended to read as follows:
5.95.080 License and Permit Closure.
A. Any owner that has ceased operating a short term lodging unit shall inform the
Finance Director in writing of the date of the last rental, and having done such, the short
term lodging permit shall be closed. The City will send a final transient occupancy tax and
visitor service fee bill, which will be due and payable thirty (30) days from the date of the
invoice.
B. The Finance Director shall close any permit that has no short term lodging activity
for a period of two (2) consecutive annual reporting periods years as evidenced by the
owner and/or agent remitting zero dollars ($0.00) on the required transient occupancy tax
and visitor service fee forms or the owner/agent has failed failing to return these tr ,f
18-85
OGGUpanGy and visiter son„„o forms. After any permit closure pursuant to this subsection,
the owner may reapply one (1) time for reinstatement of the short term lodging permit
which shall be processed in accordance with Section 5.95.030. Any subsequent closure
of the short term lodainq Dermit Dursuant to this subsection shall not be eliaible for
reinstatement.
Section 18: Rows entitled "Visitor Accommodations, Residential" and "Short Term
Lodging" are hereby added to the "Residential Uses" section of Table 2-8 (Allowed Uses)
of Section 20.22.020(C) (Mixed -Use Zoning Districts Land Uses and Permit
Requirements) of the Newport Beach Municipal Code to read as follows:
Mixed -Use Zoning Districts
Permit Requirements
P
Permitted by Right
TABLE 2-8
ALLOWED USES AND PERMIT
CUP
Conditional Use Permit (Section 20.52.020)
REQUIREMENTS
MUP
Minor Use Permit (Section 20.52.020)
LTP
Limited Term Permit (Section 20.52.040)
—
Not Allowed
Land Use
See Part 7 of this title for land use
MU-V
MU-MM (6)
MU-DW
MU-CV115th
Specific Use
definitions.
St. (7)
Regulations
See Chapter 20.12 for unlisted uses.
Residential Uses
Accessory Dwelling Units and Junior Accessory
P
P
P
P
Section
Dwelling Units
20.48.200
Single -Unit Dwellings
Located on 1st floor
—
—
—
P (3)
Section
20.48.130
Located above 1st floor
P (1)
—
—
P (3)
Section
20.48.130
Multi -Unit Dwellings
Located on 1st floor
—
P (1)(2)
P (1)
P (3)
Section
20.48.130
Located above 1st floor
P (1)
P (1)(2)
P (1)
P (3)
Section
20.48.130
Two -Unit Dwellings
Located on 1st floor
—
—
—
P (3)
Section
20.48.130
Located above 1st floor
P (1)
P (3)
Section
20.48.130
Home Occupations
P
P (1)
P
P
Section
20.48.130
Live -Work Units
P
P (1)(2)
P
P (3)
18-86
Mixed -Use Zoning Districts
Permit Requirements
P
Permitted by Right
TABLE 2-8
ALLOWED USES AND PERMIT
CUP
Conditional Use Permit (Section 20.52.020)
REQUIREMENTS
MUP
Minor Use Permit (Section 20.52.020)
LTP
Limited Term Permit (Section 20.52.040)
—
Not Allowed
Land Use
See Part 7 of this title for land use
MU-V
MU-MM (6)
MU-DW
MU-CV/15th
Specific Use
definitions.
St. (7)
Regulations
See Chapter 20.12 for unlisted uses.
Visitor Accommodations, Residential
Short Term Lodging
Chapter 5.95
Section 19: Rows entitled "Visitor Accommodations, Residential" and "Short Term
Lodging" are hereby added to the "Residential Uses" section of Table 2-9 (Allowed Uses)
of Section 20.22.020(C) (Mixed -Use Zoning Districts Land Uses and Permit
Requirements) of the Newport Beach Municipal Code to read as follows:
Mixed -Use Zoning Districts
Permit Requirements
P
Permitted by Right
TABLE 2-9
CUP
Conditional Use Permit (Section 20.52.020)
ALLOWED USES AND PERMIT REQUIREMENTS
MUP
Minor Use Permit (Section 20.52.020)
LTP
Limited Term Permit (Section 20.52.040)
—
Not allowed
Land Use
See Part 7 of this title for land use definitions.
MU-W1 (5)(6)
MU-W2
Specific Use
Regulations
See Chapter 20.12 for unlisted uses.
Residential Uses
Accessory Dwelling Units and Junior Accessory Dwelling
P
P
Section 20.48.200
Units
Single -Unit Dwellings
Located on 1 st floor
Located above 1st floor
P (1)
P (2)
Section 20.48.130
Multi -Unit Dwellings
S
Mixed -Use Zoning Districts
Permit Requirements
P
Permitted by Right
TABLE 2-9
CUP
Conditional Use Permit (Section 20.52.020)
ALLOWED USES AND PERMIT REQUIREMENTS
MUP
Minor Use Permit (Section 20.52.020)
LTP
Limited Term Permit (Section 20.52.040)
—
Not allowed
Land Use
See Part 7 of this title for land use definitions.
MU-W1 (5)(6)
MU-W2
Specific Use
Regulations
See Chapter 20.12 for unlisted uses.
Located on 1 st floor
Located above 1st floor
P (1)
P (2)
Section 20.48.130
Two -Unit Dwellings
Located on 1 st floor
Located above 1st floor
P (1)
P (2)
Home Occupations
P
P (2)
Section 20.48.110
Visitor Accommodations, Residential
Short Term Lodging
Chapter 5.95
Section 20: Subsection A(3)(f) of Section 20.38.060 (Nonconforming Parking) of the
Newport Beach Municipal Code is hereby amended to read as follows:
f. Outside the coastal zone, dwellings within the residential development shall
not be rented for periods of leci�R thirty (30) days . Refer to subsection
(A)(4)(f) of this section for short term lodging allowances for developments within
the coastal zone; and
Section 21: Subsection B(4)(h) of Section 20.48.205 (SB 9 Housing Developments
and Urban Lot Splits in Single -Unit Residential Zoning Districts) of the Newport Beach
Municipal Code is hereby amended to read as follows-
h. Short Term Lodging. Any dwelling unit permitted pursuant to an SB 9
housing development or urban lot split shall not be rented for periods of less than
thirty (30) days or less.
Section 22: The definition of "Bed and breakfast inn" of Section 20.70.020 (Definitions
of Specialized Terms and Phrases) of the Newport Beach Municipal Code is hereby
amended to read as follows:
1. "Bed and breakfast inn" means a dwelling unit that offers guest rooms or suites for
a fee for less thaT thirty (30) days or less, with incidental eating and drinking
service provided from a single kitchen for guests only.
Section 23: The title and definition of "Short-term lodging" of Section 20.70.020
(Definitions of Specialized Terms and Phrases) of the Newport Beach Municipal Code is
hereby amended to read as follows:
5. "Short term lodging" means a dwelling unit that is rented or leased as a single
housekeeping unit (see "Single housekeeping unit") for a period of less thaR thirty (30)
days or less, subject to the requirements of Chapter 5.95 (Short Term Lodging
Permits) and any additional standards required by the City Manager.
18-89
PROPOSED LOCAL COSTAL PLAN AMENDMENT NO. PA2023-0116
Title 21 Revisions (Redline Strikeouts)
Section 1: Rows entitled "Visitor Accommodations, Residential" and "Short Term
Lodging" are hereby added to the "Residential Uses" section of Table 21.22-1 (Allowed
Uses) of Section 21.22.020(C) of the Newport Beach Municipal Code to read as follows:
21.22.020Mixed-Use Coastal Zoning Districts Land Uses and Permit
Requirements.
TABLE 21.22-1
ALLOWED USES
Mixed -Use Zoning Districts
A
—
Allowed
Not Allowed
Land Use
See Part 7 of this Implementation Plan for
land use definitions.
See Chapter 21.12 for unlisted uses.
MU-V (6)
MU-MM (4)
MU-CV/15th St.
(5)(6)
Specific Use
Regulations
Residential Uses
Single -Unit Dwellings
Located on 1st floor
A (3)
Located above 1 st floor
A (1)
—
A (3)
Multi -Unit Dwellings
Located on 1st floor
—
A (1)(2)
A (3)
Located above 1st floor
A (1)
A (1)(2)
A (3)
Two -Unit Dwellings
Located on 1 st floor
—
—
A (3)
Located above 1 st floor
A (1)
—
A (3)
Home Occupations
A
A (1)
A
Live -Work Units
A
A (1)(2)
A (3)
Accessory Dwelling Units and Junior Accessory
Dwelling Units
A
A
A
Section 21.48.200
Visitor Accommodations, Residential
Short Term Lodging
A
Chapter 5.95 and
Section 21.48.115
Section 2: Rows entitled "Visitor Accommodations, Residential" and "Short Term
Lodging" are hereby added to the "Residential Uses" section of Table 21.22-2 (Allowed
Uses) of Section 21.22.020(C) of the Newport Beach Municipal Code to read as follows:
18-90
TABLE 21.22-2
ALLOWED USES
Mixed -Use Coastal Zoning Districts
Allowed
Not Allowed
Land Use
See Part 7 of this Implementation Plan for land use
definitions.
See Chapter 21.12 for unlisted uses.
MU-W1 (3)
MU-W2 (5)
Specific Use
Regulations
Residential Uses
Single -Unit Dwellings
Located on 1st floor
Located above 1st floor
A (1)
A (2)
Multi -Unit Dwellings
Located on 1st floor
Located above 1st floor
A (1)
A (2)
Two -Unit Dwellings
Located on 1st floor
—
—
Located above 1st floor
A (1)
A (2)
Home Occupations
A
A (2)
Accessory Dwelling Units and Junior Accessory Dwelling
Units
A
A
Section 21.48.200
Visitor Accommodations, Residential
Short Term Lodging
—
A
Chapter 5.95 and
Section 21.48.115
Section 3: The title and content of Section 21.48.115 (Short -Term Lodging) of
the Newport Beach Municipal Code are hereby amended to read as follows:
21.48.115 Short Term Lodging.
A. Purpose. This section provides standards for the operation of short-term lodging
units to prevent overburdening City services and adverse impacts on residential
neighborhoods, multi -use areas, and on coastal access and resources.
B. Permits within a Residential District.
1. No owner of a short term lodging unit shall advertise for rent, or rent a lodging
unit located within a residential district for a short term, without a valid short term
lodging permit for that unit, issued pursuant to Chapter 5.95.
2. An owner shall be permitted to renew, reinstate, or transfer a valid permit in
accordance with the provisions of Chapter 5.95.
18-91
3. As set forth in Section 5.95.042 of Chapter 5.95, the maximum number of short
term lodging permits shall be limited to E)Re usand five d fm#y (1,55 ) one
thousand four hundred seventy- five (1,475) permits within a residential district at any
time. If there are more than one Bard five "„^dry{I one thousand four
hundred seventy- five (1,475) valid permits that have been issued within a residential
district as of the effective date of Ordinance No. 2023- daRwar 13, 2022, no new
permit shall be issued to any person one on the waiting list, as described in Section
5.95.042(D), until the total number of permits does not exceed the ^R8 thewsa„d five
hundred fi#y{ one thousand four hundred seventy-five (1,475) limit. To avoid
wholesale conversion of existing and new housing complexes into short term
lodgings, multi -unit developments within a residential district with five (5) or more units
may permit a maximum of twenty (20) percent of the total number of units to be short
term lodgings (rounded down to the nearest whole number).
4. No short term lodging unit shall be permitted on any lot in the R-1 (Single -Unit
Residential) Coastal Zoning District or any lot designated for single -unit dwelling land
use as part of a planned community development plan, unless the short term lodging
unit was legally established on or before June 1, 2004.
C. Permits within Mixed -Use Water Zoning District (MU-W2) and Mixed -Use Cannery
Village and 15th Street Zoning District (MU-CV/15th St.).
1. No owner of a short term lodging unit shall advertise for rent, or rent a lodging
unit located within the Mixed -Use Water (MU-W2) or Mixed -Use Cannery Village and
15th Street (MU-CV/15th St.) zoning districts for a short term, without a valid short
term lodging permit for that unit, issued pursuant to Chapter 5.95.
2. An owner shall be permitted to renew, reinstate, or transfer a valid permit in
accordance with the provisions of Chapter 5.95.
3. As set forth in Section 5.95.042 of Chapter 5.95, the maximum number of short
term lodging permits shall be limited to a total of seventy-five (75) permits within the
Mixed -Use Water (MU-W2) and Mixed -Use Cannery Village and 15th Street (MU-
CV/15th St.) districts at any time. No new permit shall be issued to any person on the
waiting list, as described in Section 5.95.042(F), until the total number of permits is
less than seventy-five (75). Notwithstanding the foregoing, the seventy-five (75)
permit maximum shall not apply to a short term lodging unit that was legally
established as of November 25, 2010, on a lot within a Mixed -Use Coastal Zoning
District provided the owner maintains a valid short term lodging permit that is not
subsequently revoked or abandoned.
DS. Operational Standards. The owner, or any other person(s) or entity(ies) that
hold(s) legal and/or equitable title to the lodging unit, shall comply with all Ffederal, State,
and local laws, rules, regulations and conditions of approval including, but not limited to,
all short term lodging permit conditions, as set forth in Chapter 5.95. In addition, the
owner, or any other person(s) or entity(ies) that hold(s) legal and/or equitable title to the
lodging unit, shall:
18-92
1. By written agreement, limit overnight occupancy of the short term lodging unit
to the maximum permitted by the Building Code and Fire Code.
2. Use best efforts to ensure that the transient user, occupants and/or guests of
the short term lodging unit do not create unreasonable noise or disturbances, engage
in disorderly conduct, or violate provisions of this Code or any State or Federal law
pertaining to noise, disorderly conduct, the consumption of alcohol, or the use of
illegal drugs.
3. Upon notification that any transient user, occupant and/or guest of his or her
short term lodging unit has created unreasonable noise or disturbances, engaged in
disorderly conduct or committed violations of this Code or any State or Federal law
pertaining to noise, disorderly conduct, the consumption of alcohol or the use of illegal
drugs, promptly use best efforts to prevent a recurrence of such conduct by any
transient user, occupant or guest.
4. Use best efforts to ensure compliance with applicable health and sanitation
regulations relating to waste disposal.
5. Post a copy of any applicable permits and conditions in a conspicuous place
within the unit.
6. Not rent, let, advertise for rent, or enter into an agreement for the rental of any
lodging unit, for less than two (2) consecutive nights.
7. The City Manager shall have the authority to impose additional standard
conditions, applicable to all short-term lodging units, as necessary to achieve the
objectives of this section.
ED. Additional P84nit GGRditiens Requirements for Newport Island (Map A-16). To the
extent there is any conflict between this subsection and other provisions of the Code
related to short term rentals on Newport Island (Map A-16), this subsection shall govern
and control.
1. In addition to the restriction set forth in Section 5.95.042 and subsection (B)(3)
of this section, the maximum number of short term lodging permits issued for units
located on Newport Island shall be limited to twenty (20) short term lodging permits
at any one time. If there are more than twenty (20) valid short term lodging permits
that have been issued as of January 13, 2022, an owner shall be permitted to renew,
reinstate, or transfer a valid permit in accordance with the provisions of Chapter 5.95;
however, no new permit shall be issued unless: (a) permits are available for issuance
pursuant to Section 5.95.042 and subsection (B)(3) of this section; and (b) the total
number of permits for units located on Newport Island does not exceed twenty (20).
If the City has issued the maximum number of permits available for units on Newport
Island, the City shall maintain a waiting list and follow the same procedures as set
forth in Section 5.95.042(D). For purposes of this subsection, the maximum number
of permits available will be calculated in the same manner as set forth in Chapter 5.95.
18-93
2. An owner, agent, or other person shall only be allowed to rent a dwelling unit
on Newport Island for a short term if the dwelling unit is located on a lot with an owner -
occupied dwelling unit that is managed by the owner of the owner -occupied dwelling
unit. For purposes of this subsection, the term "owner -occupied" means the owner
occupies and lives at the property and the property is used as the owner's primary
residence no less than one hundred eighty-three (183) days of each year and
provides at least two (2) of the following documentation: motor vehicle registration,
driver's license, California State Identification card, voter registration, income tax
return, property tax bill, or a utility bill. For purposes of this subsection, "managed by
the owner" means that the owner is occupying and living at the property while it is
being rented or a short term use.
3. The owner and/or agent shall limit the overnight occupancy of the short-term
lodging unit on Newport Island to the lesser of: (a) the number of occupants that can
be accommodated consistent with the on -site parking requirement set forth in
subsection (Eg)(4) of this section, or (b) two LQ persons per bedroom plus two fQ
additional persons, up to a maximum of ten (10) persons. Additional daytime guests
are allowed between the hours of 7:00 a.m. and 10:00 p.m. with the maximum daytime
occupancy limited to a number equal to maximum overnight occupancy plus six
additional persons. The occupancy restrictions set forth in this subsection shall be set
forth in a written rental agreement.
4. Each short term lodging unit on Newport Island shall provide a minimum of one
M parking space in an existing garage or carport. Occupancy shall be limited to a
maximum of five overnight guests for a short term lodging unit providing only one
parking space. The parking required by this subsection shall be free of obstructions
and available for use by the short term lodging user.
5. No owner, agent, or other person shall rent or let a short term lodging unit on
Newport Island more than once in any seven -consecutive -day period.
F. Additional Requirements for the Mixed -Use Water Zoning District (MU-W2) and
Mixed -Use Cannery Village and 15th Street Zoning District (MU-CV/15th St.). To the
extent there is any conflict between this subsection and other provisions of the Code
related to short term lodging within the Mixed -Use Water (MU-W2) district or Mixed -Use
Cannery Village and 15th Street (MU-CV/15th St.) district, this subsection shall govern
and control.
1. Prior to issuance of a short term lodging permit, a management plan shall be
submitted for review and approval by the Community Development Director. The
management plan shall include the following:
a. Acknowledgement and method of compliance with all operational standards
identified in Subsection 21.48.115(D) for all short term lodging units on the
property or properties;
b. Identification of professional management responsible for administering the
permit;
18-94
c. Demonstration that on -site amenities are provided to quests: and
d. Parking management plan ensuring all available on -site parking remain free
of obstructions and available for use by the short term lodging user. For short
term lodging units that are non -conforming due to number of parking spaces
provided, sufficient data to indicate that parking demand will be less than the
required number of spaces or that other parking is available (e.g., City parking
lot located nearby, on -street parking available, greater than normal walk in
trade, alternative transportation, etc.) such that use or operation of the short
term lodging permit will not reduce availability of parking in nearby residential
neiahborhoods.
2. No deed -restricted affordable housing units shall be used for short term
lodging.
Section 4: The definition of "Bed and breakfast inn" of Section 21.70.020 (Definitions
of Specialized Terms and Phrases) of the Newport Beach Municipal Code is hereby
amended to read as follows:
"Bed and breakfast inn" means a dwelling unit that offers guest rooms or suites for a
fee for less than thirty (30) days or less, with incidental eating and drinking service
provided from a single kitchen for guests only.
Section 5: The title and definition of "Short-term lodging" of Section 21.70.020
(Definitions of Specialized Terms and Phrases) of the Newport Beach Municipal Code is
hereby amended to read as follows:
"Short term lodging" means a dwelling unit that is rented or leased as a single
housekeeping unit (see "Single housekeeping unit") for a period of less thirty (30)
days or less.
18-95
Attachment I
Statistical Area Map
ITY of NEWPORT BEAC
GENERAL PLAN
Figure LU3
STATISTICAL AREA
MAP
4k4 City of Newport Beach
Boundary
Statistical Area Boundary
LU3_Statistical_Area_Map.mxd March 19, 2013
18-97
Attachment J
Draft Section 21.48.115 Incorporating 20-unit Ownership Requirement
Draft Section 21.48.115 Incorporating 20-unit Ownership Requirement (Highlighted)
(Redline Strikeouts)
21.48.115 Short - Term Lodging.
A. Purpose. This section provides standards for the operation of short-term lodging
units to prevent overburdening City services and adverse impacts on residential
neighborhoods, multi -use areas, and on coastal access and resources.
B. Permits within a Residential District.
1. No owner of a short term lodging unit shall advertise for rent, or rent a lodging
unit located within a residential district for a short term, without a valid short term
lodging permit for that unit, issued pursuant to Chapter 5.95.
2. An owner shall be permitted to renew, reinstate, or transfer a valid permit in
accordance with the provisions of Chapter 5.95.
3. As set forth in Section 5.95.042 of Chapter 5.95, the maximum number of short
term lodging permits shall be limited to ORe thousand five h, R dreg fifty one
thousand four hundred seventy- five (1,475) permits within a residential district at any
time. If there are more than eRetheusand fide hURdred fifty (1 one thousand four
hundred seventy- f�(1,475) valid permits that have been issued within a residential
district as of the effective date of Ordinance No. 2023- Jane ��3, 2022, no new
permit shall be issued to any person GRe on the waiting list, as described in Section
5.95.042(D), until the total number of permits does not exceed the ^no thousaR d five
hr URdred fifty{1,55one thousand four hundred seventy-five (1,475) limit. To avoid
wholesale conversion of existing and new housing complexes into short term
lodgings, multi -unit developments within a residential district with five (5) or more units
may permit a maximum of twenty (20) percent of the total number of units to be short
term lodgings (rounded down to the nearest whole number).
4. No short term lodging unit shall be permitted on any lot in the R-1 (Single -Unit
Residential) Coastal Zoning District or any lot designated for single -unit dwelling land
use as part of a planned community development plan, unless the short term lodging
unit was legally established on or before June 1, 2004.
C. Permits within Mixed -Use Water Zoning District (MU-W2) and Mixed -Use Cannery
Villaae and 15th Street Zonina District (MU-CV/15th St.).
1. No owner of a short term lodging unit shall advertise for rent, or rent a lodging
unit located within the Mixed -Use Water (MU-W2) or Mixed -Use Cannery Village and
15th Street (MU-CV/15th St.) zoning districts for a short term, without a valid short
term lodging permit for that unit, issued pursuant to Chapter 5.95.
2. An owner shall be permitted to renew, reinstate, or transfer a valid permit in
accordance with the provisions of Chapter 5.95.
3. As set forth in Section 5.95.042 of Chapter 5.95, the maximum number of short
term lodging permits shall be limited to a total of seventy-five (75) permits within the
18-99
Mixed -Use Water (MU-W2) and Mixed -Use Cannery Village and 15th Street (MU-
CV/15th St.) districts at any time. No new permit shall be issued to any person on the
waiting list, as described in Section 5.95.042(F), until the total number of permits is
less than seventy-five (75). Notwithstanding the foregoing, the seventy-five (75)
permit maximum shall not apply to a short term lodging unit that was legally
established as of November 25, 2010, on a lot within a Mixed -Use Coastal Zoning
District provided the owner maintains a valid short term lodging permit that is not
subsequently revoked or abandoned.
4. Only a property owner that owns twenty (20) or more units under common
ownership within the same Statistical Area as defined by the Land Use Element of
the General Plan shall be eligible to obtain a short-term lodging permit(s) in the MU-
W2 and/or MU-CV/15th St. districts. The eligible units may be located upon one (1)
or more separate parcels or properties provided they cumulatively add up to twenty
(20) or more units, and all units are located within the MU-W2 and/or MU-CV/15th St.
districts. Common ownership means the same person, entity or managing partner
holds legal and/or equitable title to no less than fifty percent (50%) of each property
or entity.
DG. Operational Standards. The owner, or any other person(s) or entity(ies) that
hold(s) legal and/or equitable title to the lodging unit, shall comply with all federal, State,
and local laws, rules, regulations and conditions of approval including, but not limited to,
all short term lodging permit conditions, as set forth in Chapter 5.95. In addition, the
owner, or any other person(s) or entity(ies) that hold(s) legal and/or equitable title to the
lodging unit, shall:
1. By written agreement, limit overnight occupancy of the short term lodging unit
to the maximum permitted by the Building Code and Fire Code.
2. Use best efforts to ensure that the transient user, occupants and/or guests of
the short term lodging unit do not create unreasonable noise or disturbances, engage
in disorderly conduct, or violate provisions of this Code or any State or Federal law
pertaining to noise, disorderly conduct, the consumption of alcohol, or the use of
illegal drugs.
3. Upon notification that any transient user, occupant and/or guest of his or her
short term lodging unit has created unreasonable noise or disturbances, engaged in
disorderly conduct or committed violations of this Code or any State or Federal law
pertaining to noise, disorderly conduct, the consumption of alcohol or the use of illegal
drugs, promptly use best efforts to prevent a recurrence of such conduct by any
transient user, occupant or guest.
4. Use best efforts to ensure compliance with applicable health and sanitation
regulations relating to waste disposal.
5. Post a copy of any applicable permits and conditions in a conspicuous place
within the unit.
18-100
6. Not rent, let, advertise for rent, or enter into an agreement for the rental of any
lodging unit, for less than two Q consecutive nights.
7. The City Manager shall have the authority to impose additional standard
conditions, applicable to all short-term lodging units, as necessary to achieve the
objectives of this section.
ED. Additional Permit Conditions Requirements for Newport Island (Map A-16). To the
extent there is any conflict between this subsection and other provisions of the Code
related to short term rentals on Newport Island (Map A-16), this subsection shall govern
and control.
1. In addition to the restriction set forth in Section 5.95.042 and subsection (B)(3)
of this section, the maximum number of short term lodging permits issued for units
located on Newport Island shall be limited to twenty (20) short term lodging permits
at any one time. If there are more than twenty (20) valid short term lodging permits
that have been issued as of January 13, 2022, an owner shall be permitted to renew,
reinstate, or transfer a valid permit in accordance with the provisions of Chapter 5.95;
however, no new permit shall be issued unless: (a) permits are available for issuance
pursuant to Section 5.95.042 and subsection (13)(3) of this section; and (b) the total
number of permits for units located on Newport Island does not exceed twenty (20).
If the City has issued the maximum number of permits available for units on Newport
Island, the City shall maintain a waiting list and follow the same procedures as set
forth in Section 5.95.042(D). For purposes of this subsection, the maximum number
of permits available will be calculated in the same manner as set forth in Chapter 5.95.
2. An owner, agent, or other person shall only be allowed to rent a dwelling unit
on Newport Island for a short term if the dwelling unit is located on a lot with an owner -
occupied dwelling unit that is managed by the owner of the owner -occupied dwelling
unit. For purposes of this subsection, the term "owner -occupied" means the owner
occupies and lives at the property and the property is used as the owner's primary
residence no less than one hundred eighty-three (183) days of each year and
provides at least two (2) of the following documentation: motor vehicle registration,
driver's license, California State Identification card, voter registration, income tax
return, property tax bill, or a utility bill. For purposes of this subsection, "managed by
the owner" means that the owner is occupying and living at the property while it is
beina rented or a short term use.
3. The owner and/or agent shall limit the overnight occupancy of the short-term
lodging unit on Newport Island to the lesser of: (a) the number of occupants that can
be accommodated consistent with the on -site parking requirement set forth in
subsection (ED)(4) of this section, or (b) two (2) persons per bedroom plus two 0
additional persons, up to a maximum of ten (10) persons. Additional daytime guests
are allowed between the hours of 7:00 a.m. and 10:00 p.m. with the maximum daytime
occupancy limited to a number equal to maximum overnight occupancy plus six n
additional persons. The occupancy restrictions set forth in this subsection shall be set
forth in a written rental agreement.
18-101
4. Each short term lodging unit on Newport Island shall provide a minimum of one
parking space in an existing garage or carport. Occupancy shall be limited to a
maximum of five overnight guests for a short term lodging unit providing only one
parking space. The parking required by this subsection shall be free of obstructions
and available for use by the short term lodging user.
5. No owner, agent, or other person shall rent or let a short term lodging unit on
Newport Island more than once in any seven -consecutive -day period.
F. Additional Requirements for the Mixed -Use Water Zoning District (MU-W2) and
Mixed -Use Cannery Village and 15th Street Zoning District (MU-CV/15th St.). To the
extent there is any conflict between this subsection and other provisions of the Code
related to short term lodging within the Mixed -Use Water (MU-W2) district or Mixed -Use
Cannery Village and 15th Street (MU-CV/15th St.) district, this subsection shall govern
and control.
1. Prior to issuance of a short term lodging permit, a management plan shall be
submitted for review and approval by the Community Development Director. The
management plan shall include the following_
a. Acknowledgement and method of compliance with all operational standards
identified in Subsection 21.48.115(D) for all short term lodging units on the
Drooerty or Droaerties:
b. Identification of professional management responsible for administering the
permit;
c. Evidence of eligibility and compliance with ownership requirements of
Subsection 21.48.115(C)(4) above;
d. Demonstration that on -site amenities are provided to guests; and
e. Parking management plan ensuring all available on -site parking remain free
of obstructions and available for use by the short term lodging user. For short
term lodging units that are non -conforming due to number of parking spaces
provided, sufficient data to indicate that parking demand will be less than the
required number of spaces or that other parking is available (e.g., City parking
lot located nearby, on -street parking available, greater than normal walk in
trade, alternative transportation, etc.) such that use or operation of the short
term lodging permit will not reduce availability of parking in nearby residential
neighborhoods.
2. No deed -restricted affordable housing units shall be used for short term
lodging.
18-102
Attachment K
Alternative Draft Resolution — LCP Amendment
18-103
RESOLUTION NO. 2023-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
NEWPORT BEACH, CALIFORNIA, AUTHORIZING
SUBMITTAL OF A LOCAL COASTAL PLAN AMENDMENT
TO THE CALIFORNIA COASTAL COMMISSION
AMENDING TITLE 21 (LOCAL COASTAL PROGRAM
IMPLEMENTATION PLAN) OF THE NEWPORT BEACH
MUNICIPAL CODE RELATED TO SHORT TERM LODGING
(PA2023-0116)
WHEREAS, Section 200 of the City of Newport Beach ("City") Charter vests the
City Council with the authority to make and enforce all laws, rules and regulations with
respect to municipal affairs subject only to the restrictions and limitations contained in
the Charter and the State Constitution, and the power to exercise, or act pursuant to
any and all rights, powers, and privileges, or procedures granted or prescribed by any
law of the State of California;
WHEREAS, Section 30500 of the California Public Resources Code requires
each county and city to prepare a Local Coastal Program ("LCP") for that portion of the
coastal zone within its jurisdiction;
WHEREAS, in 2005, the City of Newport Beach adopted the City of Newport
Beach Local Coastal Program Coastal Land Use Plan as amended from time to time;
WHEREAS, the California Coastal Commission effectively certified the City's
Local Coastal Program Implementation Plan on January 13, 2017, and the City added
Title 21 (Local Coastal Program Implementation Plan) ("Title 21") to the City of Newport
Beach Municipal Code ("NBMC") whereby the City assumed coastal development
permit -issuing authority on January 30, 2017;
WHEREAS, City Council Policy K-1 (General Plan and Local Coastal Program)
of the NBMC requires amendments to the City of Newport Beach certified Local Coastal
Program codified in Title 21 to be initiated by the City Council;
WHEREAS, on May 23, 2023, the City Council directed the Planning
Commission to identify opportunities to modify Titles 20 and 21 of the NBMC, effectively
initiating amendments, to facilitate new visitor serving accommodation opportunities
within the Mixed -Use Water (MU-W2) and Mixed -Use Cannery Village and 151h Street
(MU-CV/15th St.) zoning districts ("LCP Amendment");
18-104
Resolution No. 2023-
Page 2 of 4
WHEREAS, on June 22, 2023, the Planning Commission discussed the
amendments to Titles 20 and 21 to facilitate new visitor serving accommodations;
WHEREAS, pursuant to Section 13515 (Public Participation and Agency
Coordination Procedures) of the California Code of Regulations Title 14, Division 5.5,
Chapter 8, Subchapter 2, Article 5 (Public Participation) ("Section 13515"), drafts of LCP
Amendment were made available and a Notice of Availability was distributed at least six
weeks prior to the anticipated final action date;
WHEREAS, the Planning Commission held a public hearing on October 19,
2023, in the City Council Chambers, located at 100 Civic Center Drive, Newport Beach,
California. A notice of time, place and purpose of the hearing was given in accordance
with California Government Code Section 54950 et seq. ("Ralph M. Brown Act") and
Chapter 21.62 (Public Hearings) of the NBMC. Evidence, both written and oral, was
presented to, and considered by, the Planning Commission at this hearing;
WHEREAS, at the conclusion of the hearing, the Planning Commission adopted
Resolution No. PC2023-038 by a majority vote (3 ayes,1 nay) recommending approval
of the LCP Amendment to the City Council; and
WHEREAS, the City Council held a public hearing on November 28, 2023, in the
City Council Chambers located at 100 Civic Center Drive, Newport Beach, California.
Notice of time, place and purpose of the public hearing was given in accordance with
the Ralph M. Brown Act, Section 13515, and Chapter 21.62 (Public Hearings) of the
NBMC. Evidence, both written and oral, was presented to, and considered by, the City
Council at this public hearing.
NOW, THEREFORE, the City Council of the City of Newport Beach resolves as
follows:
Section 1: The City Council of the City of Newport Beach does hereby
authorize City staff to submit Local Coastal Program Amendment No. PA2023-0116 to
the California Coastal Commission to amend Title 21 (Local Coastal Program
Implementation Plan) of the Newport Beach Municipal Code as set forth in Exhibit "A,"
and supported by the findings set forth in Exhibit "B," both of which are attached hereto
and incorporated herein by reference.
18-105
Resolution No. 2023-
Page 3 of 4
Section 2: Local Coastal Program Amendment No. PA2023-0116 shall not
become effective until approval by the California Coastal Commission and adoption,
including any modifications suggested by the California Coastal Commission, by
resolution and/or ordinance of the City Council of the City of Newport Beach.
Section 3: The LCP, including this Local Coastal Program Amendment No.
PA2023-0116, will be carried out in full conformity with the California Coastal Act.
Section 4: The recitals provided in this resolution are true and correct and are
incorporated into the operative part of this resolution.
Section 5: If any section, subsection, sentence, clause or phrase of this
resolution is for any reason held to be invalid or unconstitutional, such decision shall not
affect the validity or constitutionality of the remaining portions of this resolution. The City
Council hereby declares that it would have passed this resolution, and each section,
subsection, sentence, clause or phrase hereof, irrespective of the fact that any one or
more sections, subsections, sentences, clauses or phrases may be declared invalid or
unconstitutional.
Section 6: The City Council of the City of Newport Beach finds the Local
Costal Program Amendment PA2023-0116 is exempt from environmental review under
the California Environmental Quality Act ("CEQA") pursuant to Section 15060(c)(2) of
the CEQA Guidelines, California Code of Regulations, Title 14, Division 6, Chapter 3,
which states that an activity is not subject to CEQA if "[t]he activity will not result in a
direct or reasonably foreseeable indirect physical change in the environment." The LCP
Amendment would allow existing residential dwelling units in mixed use zones to be
used as short term lodging. The LCP Amendment would not authorize new
development that would result in a physical change in the environment.
18-106
Resolution No. 2023-
Page 4 of 4
Section 7: This resolution shall take effect immediately upon its adoption by
the City Council, and the City Clerk shall certify the vote adopting the resolution.
ADOPTED this 28th day of November 2023.
NOAH BLOM
Mayor
ATTEST:
Leilani I. Brown
City Clerk
APPROVED AS TO FORM:
CITY ATTORNEY'S OFFICE
Aaro . Harp
City Oorney
Attachments: Exhibit A - Local Coastal Plan Amendment No. PA2023-0116
Exhibit B - Findings in Support of LCP Amendment No. PA2023-0116
18-107
EXHIBIT "A"
LOCAL COSTAL PLAN AMENDMENT NO. PA2023-0116
Section 1: Rows entitled "Visitor Accommodations, Residential" and "Short Term
Lodging" are hereby added to the "Residential Uses" section of Table 21.22-1 (Allowed
Uses) of Section 21.22.020(C) of the Newport Beach Municipal Code to read as follows:
TABLE 21.22-1
ALLOWED USES
Mixed -Use Zoning Districts
A
—
Allowed
Not Allowed
Land Use
See Part 7 of this Implementation Plan for
land use definitions.
See Chapter 21.12 for unlisted uses.
MU-V (6)
MU-MM (4)
MU-CV115th St.
(5)(6)
Specific Use
Regulations
Residential Lases
Single -Unit Dwellings
Located on 1st floor
—
—
A (3)
Located above 1st floor
A (1)
—
A (3)
Multi -Unit Dwellings
Located on 1 st floor
—
A (1)(2)
A (3)
Located above 1 st floor
A (1)
A (1)(2)
A (3)
Two -Unit Dwellings
Located on 1 st floor
—
—
A (3)
Located above 1st floor
A (1)
—
A (3)
Home Occupations
A
A (1)
A
Live -Work Units
A
A (1)(2)
A (3)
Accessory Dwelling Units and Junior Accessory
Dwelling Units
A
A
A
Section 21.48.200
Visitor Accommodations, Residential
Short Term Lodging
—
—
A
Chapter 5.95 and
Section 21 A8.115
Section 2: Rows entitled "Visitor Accommodations, Residential' and "Short Term
Lodging" are hereby added to the "Residential Uses" section of Table 21.22-2 (Allowed
Uses) of Section 21.22.020(C) of the Newport Beach Municipal Code to read as follows:
TABLE 21.22-2
ALLOWED USES
Mixed -Use Coastal Zoning Districts
Allowed
Not Allowed''
Land Use
See Part 7 of this Implementation Alan for land use
definitions.
See Chapter 21.12 for unlisted uses.
MU-W1 (3)
MU-W2 (5)
Specific Use
Regulations
Residential Uses
Single -Unit Dwellings
Located on 1st Floor
Located above 1st Floor
A (1)
A (2)
Multi -Unit Dwellings
Located on 1st Floor
Located above 1st Floor
A (1)
A (2)
Two -Unit Dwellings
Located on 1st Floor
—
—
Located above 1st floor
A (1)
A (2)
Home Occupations
A
A (2)
Accessory Dwelling Units and Junior Accessory Dwelling
Units
A
A
Section 21.48.200
Visitor Accommodations, Residential
Short Term Lodging
—
A
Chapter 5.95 and
Section 21.48.115
Section 3: The title and content of Section 21.48.115 (Short -Term Lodging) of
the Newport Beach Municipal Code are hereby amended to read as follows:
21.48.115 Short Terra Lodging.
A. Purpose. This section provides standards for the operation of short term lodging
units to prevent overburdening City services and adverse impacts on residential
neighborhoods, multi -use areas, and on coastal access and resources.
18-109
B. Permits within a Residential District.
1. No owner of a short term lodging unit shall advertise for rent, or rent a lodging
unit located within a residential district for a short term, without a valid short term
lodging permit for that unit, issued pursuant to Chapter 5.95.
2. An owner shall be permitted to renew, reinstate, or transfer a valid permit in
accordance with the provisions of Chapter 5.95.
3. As set forth in Section 5.95.042 of Chapter 5.95, the maximum number of short
term lodging permits shall be limited to one thousand four hundred seventy-five
(1,475) permits within a residential district at any time. If there are more than one
thousand four hundred seventy-five (1,475) valid permits that have been issued
within a residential district as of the effective date of Ordinance No. 2023- , no
new permit shall be issued to any person on the waiting list, as described in Section
5.95.042(D), until the total number of permits does not exceed the one thousand
four hundred seventy-five (1,475) limit. To avoid wholesale conversion of existing
and new housing complexes into short term lodgings, multi -unit developments within
a residential district with five (5) or more units may permit a maximum of twenty (20)
percent of the total number of units to be short term lodgings (rounded down to the
nearest whole number).
4. No short term lodging unit shall be permitted on any lot in the R-1 (Single -Unit
Residential) Coastal Zoning District or any lot designated for single -unit dwelling
land use as part of a planned community development plan, unless the short term
lodging unit was legally established on or before June 1, 2004.
C. Permits within Mixed -Use Water Zoning District (MU-W2) and Mixed -Use Cannery
Village and 15th Street Zoning District (MU-CV/15th St.).
1. No owner of a short term lodging unit shall advertise for rent, or rent a lodging
unit located within the Mixed -Use Water (MU-W2) or Mixed -Use Cannery Village
and 15th Street (MU-CV/15th St.) zoning districts for a short term, without a valid
short term lodging permit for that unit, issued pursuant to Chapter 5.95.
2. An owner shall be permitted to renew, reinstate, or transfer a valid permit in
accordance with the provisions of Chapter 5.95.
3. As set forth in Section 5.95.042 of Chapter 5.95, the maximum number of short-
term lodging permits shall be limited to a total of seventy-five (75) permits within the
Mixed -Use Water (MU-W2) and Mixed -Use Cannery Village and 15th Street (MU-
CV/15th St.) districts at any time. No new permit shall be issued to anyone on the
waiting list, as described in Section 5.95.042(F), until the total number of permits is
18-110
less than seventy-five (75). Notwithstanding the foregoing, the seventy-five (75)
permit maximum shall not apply to a short term lodging unit that was legally
established as of November 25, 2010, on a lot within a Mixed -Use Coastal Zoning
District provided the owner maintains a valid short term lodging permit that is not
subsequently revoked or abandoned.
D. Operational Standards. The owner, or any other person(s) or entity(ies) that hold(s)
legal and/or equitable title to the lodging unit, shall comply with all federal, State, and
local laws, rules, regulations and conditions of approval including, but not limited to, all
short term lodging permit conditions, as set forth in Chapter 5.95. In addition, the owner,
or any other person(s) or entity(ies) that hold(s) legal and/or equitable title to the lodging
unit, shall:
1. By written agreement, limit overnight occupancy of the short term lodging unit to
the maximum permitted by the Building Code and Fire Code.
2. Use best efforts to ensure that the transient user, occupants and/or guests of
the short term lodging unit do not create unreasonable noise or disturbances,
engage in disorderly conduct, or violate provisions of this Code or any State or
federal law pertaining to noise, disorderly conduct, the consumption of alcohol, or
the use of illegal drugs.
3. Upon notification that any transient user, occupant and/or guest of his or her
short term lodging unit has created unreasonable noise or disturbances, engaged in
disorderly conduct or committed violations of this Code or any State or federal law
pertaining to noise, disorderly conduct, the consumption of alcohol or the use of
illegal drugs, promptly use best efforts to prevent a recurrence of such conduct by
any transient user, occupant or guest.
4. Use best efforts to ensure compliance with applicable health and sanitation
regulations relating to waste disposal.
5. Post a copy of any applicable permits and conditions in a conspicuous place
within the unit.
6. Not rent, let, advertise for rent, or enter into an agreement for the rental of any
lodging unit, for less than two (2) consecutive nights.
7. The City Manager shall have the authority to impose additional standard
conditions, applicable to all short term lodging units, as necessary to achieve the
objectives of this section.
18-111
E. Additional Requirements for Newport Island (Map A-16). To the extent there is any
conflict between this subsection and other provisions of the Code related to short term
rentals on Newport Island (Map A-16), this subsection shall govern and control.
1. In addition to the restriction set forth in Section 5.95.042 and subsection (13)(3)
of this section, the maximum number of short term lodging permits issued for units
located on Newport Island shall be limited to twenty (20) short term lodging permits
at any one time. If there are more than twenty (20) valid short term lodging permits
that have been issued as of January 13, 2022, an owner shall be permitted to
renew, reinstate, or transfer a valid permit in accordance with the provisions of
Chapter 5.95; however, no new permit shall be issued unless: (a) permits are
available for issuance pursuant to Section 5.95.042 and subsection (13)(3) of this
section; and (b) the total number of permits for units located on Newport Island does
not exceed twenty (20). If the City has issued the maximum number of permits
available for units on Newport Island, the City shall maintain a waiting list and follow
the same procedures as set forth in Section 5.95.042(D). For purposes of this
subsection, the maximum number of permits available will be calculated in the same
manner as set forth in Chapter 5.95.
2. An owner, agent, or other person shall only be allowed to rent a dwelling unit on
Newport Island for a short term if the dwelling unit is located on a lot with an owner -
occupied dwelling unit that is managed by the owner of the owner -occupied dwelling
unit. For purposes of this subsection, the term "owner -occupied" means the owner
occupies and lives at the property and the property is used as the owner's primary
residence no less than one hundred eighty-three (183) days of each year and
provides at least two (2) of the following documentation: motor vehicle registration,
driver's license, California State Identification card, voter registration, income tax
return, property tax bill, or a utility bill showing the dwelling unit is the owner's
primary residence. For purposes of this subsection, "managed by the owner' means
that the owner is occupying and living at the property while it is being rented for a
short term use.
3. The owner and/or agent shall limit the overnight occupancy of the short term
lodging unit on Newport Island to the lesser of: (a) the number of occupants that can
be accommodated consistent with the on -site parking requirement set forth in
subsection (E)(4) of this section, or (b) two (2) persons per bedroom plus two (2)
additional persons, up to a maximum of ten (10) persons. Additional daytime guests
are allowed between the hours of 7:00 a.m. and 10:00 p.m. with the maximum
daytime occupancy limited to a number equal to the maximum overnight occupancy
plus six (6) additional persons. The occupancy restrictions set forth in this
subsection shall be set forth in a written rental agreement.
18-112
4. Each short term lodging unit on Newport Island shall provide a minimum of one
(1) parking space in an existing garage or carport. Occupancy shall be limited to a
maximum of five overnight guests for a short term lodging unit providing only one (1)
parking space. The parking required by this subsection shall be free of obstructions
and available for use by the short term lodging user.
5. No owner, agent, or other person shall rent or let a short term lodging unit on
Newport Island more than once in any seven -consecutive -day period.
F. Additional Requirements for the Mixed -Use Water Zoning District (MU-W2) and
Mixed -Use Cannery Village and 15th Street Zoning District (MU-CV/15th St.). To the
extent there is any conflict between this subsection and other provisions of the Code
related to short term lodging within the Mixed -Use Water (MU-W2) district or Mixed -Use
Cannery Village and 15th Street (MU-CV/15th St.) district, this subsection shall govern
and control.
1. Prior to issuance of a short term lodging permit, a management plan shall be
submitted for review and approval by the Community Development Director. The
management plan shall include the following:
a. Acknowledgement and method of compliance with all operational
standards identified in Subsection 21.48.115(D) for all short term lodging units
on the property or properties;
b. Identification of professional management responsible for administering
the permit;
c. Demonstration that on -site amenities are provided to guests; and
d. Parking management plan ensuring all available on -site parking remain
free of obstructions and available for use by the short term lodging user. For
short term lodging units that are non -conforming due to number of parking
spaces provided, sufficient data to indicate that parking demand will be less
than the required number of spaces or that other parking is available (e.g.,
City parking lot located nearby, on -street parking available, greater than
normal walk in trade, alternative transportation, etc.) such that use or
operation of the short term lodging permit will not reduce availability of
parking in nearby residential neighborhoods.
2. No deed -restricted affordable housing units shall be used for short term lodging.
18-113
Section 4: The definition of "Bed and breakfast inn" of Section 21.70.020
(Definitions of Specialized Terms and Phrases) of the Newport Beach Municipal Code is
hereby amended to read as follows:
"Bed and breakfast inn" means a dwelling unit that offers guest rooms or suites for a fee
for thirty (30) days or less, with incidental eating and drinking service provided from a
single kitchen for guests only.
Section 5: The title and definition of "Short-term lodging" of Section 21.70.020
(Definitions of Specialized Terms and Phrases) of the Newport Beach Municipal Code is
hereby amended to read as follows:
"Short term lodging" means a dwelling unit that is rented or leased as a single
housekeeping unit (see "Single housekeeping unit") for a period of thirty (30) days or
less.
18-114
EXHIBIT "B"
FINDINGS IN SUPPORT OF LOCAL COASTAL PLAN AMENDMENT NO. PA2023-
0116
1. The LCP Amendment (PA2023-0116) is consistent with the City's General Plan. It
would serve to implement the following goals and policies of the General Plan:
Land Use Element Policy LU 2.6 (Visitor Serving Uses), which states, "Provide uses
that serve visitors to Newport Beach's ocean, harbor, open spaces, and other
recreational assets, while integrating them to protect neighborhoods and residents."
The proposed amendment would allocate and allow 75 short term lodging permits
within the MU-W2 and MU-CV/15th St. coastal zoning districts, subject to specific
regulations that would require the operation of short term lodging would be subject to a
permit issued by the City, managed by professional management, and not impact
parking in the neighborhood. The amendment would also maintain the existing
Citywide maximum cap of 1,550 permits by establishing a maximum cap of 1,475
permit with residential coastal zoning districts and a maximum cap of 75 permit within
the MU-W2 and MU-CV/15th St. coastal zoning districts. This would maintain the
existing allowance for this type of visitor accommodations in the City without altering
existing provisions and regulations on short term lodging previously adopted to protect
residential neighborhoods.
Land Use Element Goal LU 4, which states, "Management of growth and change to
protect and enhance the livability of neighborhoods and achieve distinct and
economically vital business and employment districts, which are correlated with
supporting infrastructure and public services and sustain Newport Beach's natural
setting." In specific mixed -use zones larger scale (twenty (20) or more units) permit
holders would be permitted to operate. This provides additional opportunities for
properties in the mixed -use zones to achieve and maintain economic viability and
minimizes impacts on residential neighborhoods.
2. The LCP Amendment serves to implement Coastal Land Use Plan (CLUP) Table
2.1.1-1 (Land Use Plan Categories) of the LCP, which establishes the type, density,
and intensity of land uses within the coastal zone. The amendment would allow the
operation of short term lodging in certain mixed -use coastal zoning districts where
the commercialization of existing residential dwellings as visitor accommodations is
more appropriate. This is consistent with allowing visitor serving accommodations in
the mixed -use zones while maintaining the adopted regulations to protect residential
zones.
3. CLUP Policy 2.3.3-6 authorizes the short term rental of dwelling units as a means of
providing lower -cost overnight visitor accommodations. The City currently limits the
maximum number of short term rentals at a cap of 1,550 permits to prevent adverse
impacts to residential areas and preserve housing stock within the coastal zone. To
allow for the small expansion of short term lodging in the more appropriate mixed
18-115
4. use coastal zoning districts, but maintain and protect existing maximum cap of 1,550
permits, this amendment establishes two separate caps: 1) a maximum cap of 1,475
permit with residential coastal zoning districts; and, 2) a maximum cap of 75 permit
within the MU-W2 and MU-CV/15th St. coastal zoning districts.
18-116