Council directs staff to draft short-term rental ordinance, targets first reading in August

The National City City Council directed staff to bring back a draft ordinance to regulate short-term rentals (STRs) and short-term vacation rentals, asking staff to return with a first reading likely in the second council meeting in August.

Assistant Director Martin Reeder told the council staff had prepared a strike-through draft of proposed rules and requested guidance on unresolved items including: a citywide cap, whether the owner must be a local resident or live within a specified distance of the unit, permit fees, enforcement fines, and whether to allow administrative or discretionary exceptions (for example, a conditional or minor use permit for deployments or other special circumstances).

Councilmembers urged rules to avoid overconcentration of STRs, to require local contact information and compliance with transient occupancy tax, and to include penalties for repeat offenders. Multiple councilmembers supported a limit that balances equity between districts (examples discussed: 40–50 units per district or a city cap with a per-district maximum). Staff said they would return with draft language that includes options for caps, enforcement mechanisms, fee schedules and compliance procedures, and would propose a compliance/administrative program for cost recovery.

The council voted to instruct staff to bring the ordinance back for introduction in August; the motion passed by voice vote.