A proposed coastal development permit aimed at prohibiting short-term rentals in the Monarch Hills Association has sparked significant debate during the Dana Point Planning Commission meeting on July 14, 2025. The Corniche Master Association's request to restrict rentals within its community was met with strong opposition from city staff, who recommended denial of the permit.

John Champ, the case planner for the project, outlined the background of short-term rentals in the area, noting that the Coastal Commission had previously approved a rental program that capped permits at 115. However, he emphasized that the Monarch Hills Association's existing regulations, which allow rentals for a minimum of seven days, conflict with the Corniche Master Association's desire to enforce a 30-day minimum.

Champ highlighted that if the permit were approved, it would eliminate 45 active short-term rental permits currently operating in Monarch Hills, which has a history of allowing such rentals since 2013. He pointed out that the community consists of 325 condominiums and has seen rental rates ranging from $150 to $450 per night, providing affordable accommodation options.

The staff's analysis raised concerns that approving the permit would reduce public access to coastal accommodations and create legal uncertainties regarding existing rentals. Champ noted that the city has previously approved 24 similar permits for other associations, but the unique history of Monarch Hills complicates this case.

The meeting also featured public input, with letters both supporting and opposing the permit included in the commissioners' packets. As the commission deliberates, the implications of this decision could significantly impact the rental landscape in Dana Point, balancing community regulations with broader access to coastal resources.