Board approves revised short-term rental rules, keeps hosted rentals available and requires grandfathering

The Santa Cruz County Board of Supervisors on Aug. 19 approved amendments to the county's short-term rental (STR) ordinance intended to curb the growth of unhosted, commercial-style rentals while preserving hosted rentals used by homeowners for supplemental income.

What changed: Staff described the amendments as a clarification of how counts and caps are calculated in the county's coastal exception zone. Assistant director Stephanie Hansen said the update removes an anomalous earlier counting method so that properties historically identified as an "exception zone" will not count toward the countywide caps; the net effect is not an immediate reduction for existing permitted rentals.

Why residents spoke: During public comment, owners and managers of short-term rentals — many of them small owners who said they rely on seasonal income — asked the board to grandfather existing rentals and preserve the ability of individuals to host from their own properties. Other speakers urged stronger enforcement against illegal or absentee commercial operators. "Hosts are real people, not corporations," one speaker said.

Board view and vote: Supervisors said they wanted a policy that discourages large-scale corporate conversion of housing while allowing residents to supplement income with hosted rentals. Supervisor Cummings and colleagues said the revised rules target unhosted rentals and maintain flexibility if more hosted rentals should be allowed later. The board approved the ordinance on roll call vote without recorded dissent.

Implementation and next steps: County staff will continue public outreach through the new STR subcommittee and manage permit enforcement. Supervisors requested clear grandfathering language for existing permits and tracking to detect illegal listings.

Ending: Supervisors said the amendment is intended to strike a balance between a tourism economy and housing stability by keeping hosted options available while slowing potential corporate consolidation of housing.