Atascadero planning panel backs short-term rental rules, asks council to revisit owner-occupancy policy

ATASCADERO, Calif. — The Planning Commission on Aug. 19 voted to recommend that the City Council adopt a text amendment to Title 9 formalizing short‑term rental (STR) rules, including a requirement that STR properties provide a minimum of two on‑site parking spaces and a direction that staff report back with additional information on owner‑occupancy rules and multifamily allowances.

The commission’s recommendation follows a staff presentation of draft ordinance language for Project ZCH240059 and a two‑hour public hearing with more than a dozen residents, property managers and short‑term rental operators offering comments. Community Development Planner Eric Gomez summarized the draft and said a “short term rental is a rental of a dwelling … for a period of 30 calendar days or less.” Gomez said the draft adds a permit process, an initial safety inspection and annual renewals backed by an owner affidavit rather than yearly inspections.

Why it matters: the change would put standards now handled by internal policy into the municipal code, create an enforcement path and generate fee revenue to cover monitoring and inspections. Staff told commissioners the city has 132 approved short‑term rental business licenses and that roughly 100 of those remitted transient‑occupancy tax (TOT) in the most recent quarter. The draft ordinance also proposes limits that differ by zone: 25 percent of units in multifamily developments and up to 40 percent in mixed‑use developments could be used as STRs; single‑family zones would be subject to an owner‑occupancy standard the City Council asked staff to explore.

During public comment, operator and manager voices urged caution about owner‑occupancy and high fees. Sarah Maggile, owner of Templeton Vacation Rentals, said: “Your tourists don't want to stay in grandma's extra bedroom, so they just won't come. They'll go to Paso.” Jeff Fosland, a mixed‑use property owner, told the commission he opposed rules that would bar owners in mixed‑use parcels from hosting STRs. Opponents also questioned an estimated fee range staff cited for new permits and monitoring, which Gomez said is being developed with a fee consultant and contractors and likely will be in the $800–$1,000 range for a first‑time application (staff said renewals would be significantly less).

Supporters of regulation told commissioners they back inspections, safety requirements and a mechanism to remove persistent nuisance operators. Resident Sid Bowen said he opposed broad owner‑occupancy mandates and recommended the city avoid creating a “big bureaucracy”: “Don't create a big bureaucracy. We don't need another big bureaucracy.” Others said permitting and monitoring help level the playing field with hotels by ensuring TOT payment and consistent enforcement.

Key components of the draft ordinance discussed by staff and the public: - Definition and scope: short‑term rental defined as rental of a dwelling (whole unit or a room) for 30 calendar days or less; transient‑occupancy tax applies. - Permit and inspections: new short‑term rental permit required in addition to a business license; initial safety inspection required, renewals rely on a signed safety affidavit with possible follow‑up enforcement inspections. - Safety and good‑neighbor rules: required life‑safety devices (smoke and CO detectors where code requires, accessible fire extinguisher), posted emergency information, quiet hours, on‑site parking availability and a 24‑hour contact for the city to use for complaints and emergencies. - Zoning limits: proposed 25% cap for multifamily developments, up to 40% in mixed‑use developments; single‑family zones would include an owner‑occupancy standard in the draft (staff said this is the council direction that triggered the ordinance rewrite). - Grandfathering: staff said existing licensees who have been active (evidenced by TOT filings in the prior four fiscal quarters) would not be subject to the owner‑occupancy requirement, but would need to obtain the new permit and follow other new standards beginning in 2026. - Monitoring and fees: staff proposed contracting with third‑party monitoring software and services to detect unregistered listings and support enforcement; implementation costs are being estimated for council consideration.

Commission action and next steps: the commission voted to recommend that City Council adopt the Title 9 amendment with a clarified parking requirement — the final motion directed staff to require a minimum of two on‑site parking spaces be available to STR guests (the motion did not place a maximum) — and instructed staff to provide additional data and explanation when the matter goes to council. Specifically, commissioners asked staff to: (1) report how many current STRs are in multifamily zones and how the proposed 25 percent cap would apply; and (2) explain the findings that led the council to favor an owner‑occupancy standard and to outline alternatives (for example, caps or distance buffers) so councilors can weigh tradeoffs.

The Planning Commission’s recommendation will be placed before the City Council; staff said they expect to present the ordinance package and fee analysis at an upcoming council hearing. Gomez said applicants who want to be grandfathered under the draft item should ensure they have active TOT filings in the quarters preceding the ordinance’s effective date.

The commission’s discussion and the public hearing showed strong support for safety and enforcement tools but divided views on owner occupancy and fees. Commissioners asked staff to bring clearer data and the background on council direction so the council can weigh neighborhood preservation goals against impacts on property owners and small hospitality businesses.