Council amends vacation rental rules to allow ADU owners to keep primary‑residence STR eligibility

The City Council on Nov. 12 introduced and adopted an amendment to Title 4 of the municipal code to allow residential properties that include accessory dwelling units (ADUs) to participate in the city's vacation rental program only for the primary residence, while designating ADUs themselves as ineligible for short‑term rental permits.

Staff framed the amendment as a narrow, deliberate change intended to expand opportunities for workforce and long‑term housing while preserving the existing short‑term rental regulatory framework. Kelly Tinker explained the change removes a blanket prohibition that previously made parcels with ADUs ineligible and replaces it with language that makes the primary residence eligible but preserves the ADU for long‑term occupancy. The ordinance is exempt from CEQA under section 15061(b)(3), staff said.

Public comment was mixed. Some residents voiced concerns that easing the restriction could increase vacation rentals in neighborhoods and urged preserving Measure O voters' concerns. Planning Commissioner Michael Beverage and housing advocates argued that ADUs are a practical, low‑impact tool to add workforce housing and that the existing restriction discouraged ADU construction. Realtors and other residents said removing the restriction protects property rights and marketability for homeowners who want the option of short‑term rental eligibility for their primary home.

Councilmembers discussed the intent at length and emphasized that the change is focused on enabling more long‑term housing options rather than expanding tourism inventory. The council voted unanimously to adopt the amendment and direct staff to implement outreach and monitoring.