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Fullerton enacts 45-day moratorium on new short-term rental permits
Summary
Citing 180 unpermitted short-term rentals and enforcement workload, the council adopted a 45-day urgency ordinance to pause issuance of new permits while staff audits compliance, TOT collection and fee structures.
The Fullerton City Council adopted an urgency ordinance (ordinance 3342) on May 20 establishing a temporary 45-day moratorium on issuing new short-term rental (STR) permits. The city cited data from its vendor (Host Compliance) indicating roughly 180 units operating without permits and unpaid transient-occupancy tax (TOT) revenue.
Planning staff reported they processed about 250 STR applications since the program began, denied 82 and currently administer 84 whole-home and 22 partial-home permits. Code enforcement said notices have been drafted and staff will send letters to operators identified by the compliance vendor.
City Attorney explained the urgency ordinance path and the 4/5 council finding required when immediate action is necessary to protect public health, safety or welfare. Council approved the urgency ordinance 5-0. The moratorium pauses new permit issuance while staff audits program processes, reviews the fee structure, strengthens enforcement workflows, and pursues outreach. Staff said compliant operators will still be able to apply once the review concludes; operators who have willfully operated without permits may face heightened review or enforcement.
The council asked staff to return with a compliance plan, a timeline for addressing unpermitted listings, and recommendations on permit fees and TOT collection.
