Solvang City Council explores amendments to vacation rental ordinance amidst housing concerns

The Solvang City Council convened on March 24, 2025, to address pressing issues surrounding wildfire safety and the regulation of short-term rentals, both of which have significant implications for the community's safety and housing market.

A key focus of the meeting was the city's ongoing efforts to enhance wildfire preparedness. Council members emphasized the importance of creating defensible spaces around homes and neighborhoods to mitigate fire risks. The Fire Department is collaborating with local leaders to develop a comprehensive community wildfire protection plan, which is expected to take a couple of years to finalize. The council highlighted the need for public education on fire safety and the importance of maintaining safe environments not just for individual homes but for entire neighborhoods.

In addition to wildfire safety, the council discussed the existing short-term rental ordinance, which has been in place since 2014. Current regulations allow vacation rentals in specific zones but lack robust safety measures and enforcement mechanisms. The council noted that many properties operating as short-term rentals do not have the necessary permits, leading to an estimated revenue loss of over $31,000 in transient occupancy taxes over the past seven months. This situation raises concerns about the impact of short-term rentals on the availability of long-term housing, particularly as the city faces a housing crisis.

Council members expressed a desire to amend the short-term rental ordinance to include stricter regulations, such as safety inspections, permit fees, and clearer guidelines for enforcement. They acknowledged the need to balance the interests of residents and the tourism industry while ensuring that the community's housing stock is preserved. The council is considering options for a moratorium on new short-term rental permits while they work on revising the ordinance.

Public comments during the meeting underscored the community's concerns about the negative effects of unregulated short-term rentals, including noise disturbances and the erosion of neighborhood character. Residents urged the council to take decisive action to strengthen regulations and protect the community's housing resources.

As the council moves forward, they plan to revisit these topics quarterly, ensuring ongoing dialogue and updates on progress. The decisions made in this meeting are expected to have lasting impacts on both wildfire safety and housing availability in Solvang, reflecting the city's commitment to addressing these critical issues head-on.