Laguna Woods approves response to Orange County grand jury short-term rental report; city says rentals are functionally limited

Laguna Woods — The City Council approved a proposed response to the 2024–2025 Orange County Grand Jury report titled Long-term Solutions to Short-term Rentals, authorizing the mayor to sign and the city manager to submit the response.

Staff told the council that although the grand jury’s table lists cities that ban or allow short-term rentals, Laguna Woods occupies a gray area: municipal code does not explicitly ban short-term rentals citywide, but most residential communities effectively prohibit stays of less than 30 days. Staff cited CC&Rs and lease agreements: Third Mutual’s CC&Rs bar rentals of less than 30 days; United Mutual has minimums in its governing documents; San Sebastian and Whispering Fountains prohibit short-term rentals in their lease agreements. The only short-term rentals the city knows to take place legally are guest quarters at the Towers, which are treated like hotel rooms and remit transient occupancy tax, staff said.

Staff recommended the council respond to the grand jury’s findings and recommendations; after limited discussion and no public comment, the council voted to approve the recommended response. Council members noted the Towers’ guest quarters serve visiting family and typically are not associated with the disturbances often cited in short-term rental complaints.

Action: Council approved the staff-recommended response to the grand jury report and authorized the mayor to execute the response and the city manager to submit it as required.