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Council gives first reading to short-term rental ordinance amendments, adds inheritance clause and 90‑day grandfathering window
Summary
Council held first reading of Ordinance 2025-1 to amend Chapter 120 (short-term rentals). Amendments clarify inspection standards, add a transfer-by-inheritance provision and create a 90-day window for limited applications under prior rules; council approved a reading by title only and added a definition of inheritance.
Seaside City Council conducted the first reading by title of an ordinance updating short-term rental (STR) rules (Ordinance 2025-1) and approved an amendment clarifying transferability for family inheritance and a temporary application window for properties that qualified under previous standards.
City staff (Community Development) summarized three substantive amendments: 1) codify the specific building- and life-safety inspection items used during STR reviews (fire/egress/NOAA weather radio/CO/smoke alarms and other items already used by staff), 2) make explicit a policy that had been applied in practice allowing a short-term rental business license to transfer to family members through inheritance (the draft ordinance adds language to permit transfer to a person related by blood, marriage, legal adoption or guardianship), and 3) provide a short application window for properties that met the older vacation-rental standards prior to the July 11 ordinance change (staff recommended 30, 60, or 90 days; the council selected 90 days).
Staff said the ordinance move from the zoning code to business licensing reflects prior legal advice and makes standards easier to update; the briefing referenced Measure 56 (notice requirements for land-use changes), Measure 49 (property-compensation questions considered and not applicable because STRs are treated as commercial), and the state building code changes that affected applicability. Staff also noted one late-formal request had been filed and that the city will publicize the limited application window on the city website and to known inquirers.
Councilor Montero moved and a second was recorded to read the ordinance by title only with the added inheritance definition and to set the grandfathering window at 90 days. The motion passed on an oral vote; the council approved the first reading and directed staff to continue the formal ordinance process (additional hearings and publication as required). The ordinance will return for a subsequent reading and final council action after the required notice period.
Councilors discussed enforcement, inspection frequency (annual inspections and initial inspections that may require upgrades), and how the changes affect existing nonconforming units permitted under older rules. Staff said existing permitted STRs remain valid as existing nonconforming uses but that the new code clarifies objective inspection and safety requirements going forward.
