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Emergency Ordinance No. 2020-003: Review and Consider Extending the Prohibition <br />on Short -Term Lodging Activity <br />May 12, 2020 <br />Page 2 <br />d) Pursuant to City of Newport Beach Charter Section 412, waive full reading, direct the <br />City Clerk to read by title only, and adopt Emergency Ordinance No. 2020-004, An <br />Emergency Ordinance of the City Council of the City of Newport Beach, California, <br />Extending the Restriction Set Forth in Emergency Ordinance No. 2020-001 Prohibiting <br />the Issuance of Any New Short Term Lodging Permit Pursuant to Newport Beach <br />Municipal Code Chapter 5.95 and Requiring a Minimum Night Stay for All Short Term <br />Lodging Rentals. <br />FUNDING REQUIREMENTS: <br />The City collects Transient Occupancy Tax on all short-term rentals. This General Fund <br />revenue will be reduced during the prohibition period. <br />DISCUSSION: <br />On April 3, 2020 the City Council adopted Emergency Ordinance No. 2020-1 (Attachment <br />A) restricting STL permitting and activity to renting of residential units for 30 days or less. <br />Renting a unit for more than 30 days is allowed and not prohibited by the emergency <br />ordinance. <br />In case hotel or motels have temporarily closed during the pandemic, an STL unit may be <br />necessary to house medical professionals or emergency responders that have been <br />called in to support doctors, hospitals or emergency agencies. The emergency ordinance <br />exempts the ban on STL activity for those units that are rented to the medical <br />professionals or emergency responders if the property holds a valid STL permit. <br />The basis for adopting the emergency ordinance was the continuous turnover of renters <br />in STL units, which creates a risk that COVID-19 will spread throughout the City, <br />especially given the high number of STL units and the dense residential neighborhoods <br />they are in. <br />To date the City has 1,530 active short-term lodging permits. <br />FnfnrcPment <br />Since the emergency ordinance went into effect, the Code Enforcement and Revenue <br />Divisions are proactively enforcing the prohibition. Staff notified all the STL permit holders <br />that an emergency ordinance was adopted and in effect. Staff also notified the two larger <br />internet platforms, Expedia Group (owner of Vrbo) and Airbnb of the emergency <br />ordinance. Both platforms responded that they notified their users of the prohibition. Staff <br />also reviewed the postings on the internet platforms and communicated directly through <br />the platform with each individual advertising their unit, that renting STL units for 30 days <br />or less is prohibited. Many responded back that they were blocking any reservations <br />during the ban, while others continued to advertise their unit as available for medical <br />personnel and emergency responders. <br />17-2 <br />