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Supervisors approve first reading of county short‑term rental ordinance; sets caps, tenant protections and platform reporting
Summary
After a multimonth public process, the board approved the ordinance concept on first reading, consolidating hosted and non‑hosted permits, adding a countywide cap, block limits inside designated zones, a short‑term rental hotline and tenant‑protection language.
The Santa Cruz County Board of Supervisors on Aug. 5 approved on first reading a rewrite of the county’s short‑term rental rules, consolidating hosted and non‑hosted permits, establishing a countywide cap on non‑hosted permits and creating a complaint hotline and new tenant protections.
Community Development and Infrastructure (CDI) staff presented the proposed ordinance, which merges the prior hosted‑rental and vacation‑rental rules into a single “short‑term rental” code. Fernanda Diaspini, CDI planner, told the board the rewrite was the product of an ad‑hoc committee that held community meetings beginning in September 2024.
Key provisions approved on first reading include:
• A countywide cap of 270 non‑hosted permits (non‑hosted = whole‑home rentals under 30 days); existing permits remain valid and may be renewed, but new issuance is limited; three designated areas (Live Oak, Seacliff/Aptos/La Selva Beach, Davenport/Swanton) retain special rules.
• Stronger concentration rules in designated areas: limits to 20 percent of parcels per block and a restriction that no new permit be issued that would leave a residential parcel adjacent to two or more permitted non‑hosted rentals (board amended the draft language to clarify adjacency language).
• Platform accountability: hosting platforms would be required to list only legally permitted units and to cooperate with county enforcement; every permitted property must display a sign with a county hotline number.
• Tenant protections: if a new short‑term rental permit would require eviction of an existing tenant, the applicant must pay the leasee six months’ actual rent.
• Hosted rental changes: hosted permits were expanded to allow up to three bedrooms when the owner/household member occupies the dwelling.
Supporters at the meeting included local tourism and wine‑industry representatives who said properly regulated short‑term rentals support visitor spending and jobs. Residents urged stronger enforcement tools and thanked staff for a centralized reporting hotline and clearer platform responsibilities.
Why it matters: The ordinance attempt seeks to balance short‑term rental income and tourism benefits with the county’s housing shortage and neighborhood quality‑of‑life concerns. The county had previously limited permits only within a few special districts, which critics said allowed unregulated growth elsewhere.
What’s next: The board approved the ordinance concept and directed staff to return with the ordinance for second and final adoption on Aug. 19. Supervisors also reconstituted an ad hoc subcommittee (Supervisor DeCerpa joined Supervisor Koenig) to study additional refinements, including future consideration of permit duration rules and hosted‑rental caps.
