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Fullerton imposes 45‑day moratorium on new short‑term rental permits to tackle enforcement backlog
Summary
The council adopted an urgency ordinance May 20 to pause new short‑term‑rental permits for 45 days after staff reported roughly 180 unpermitted short‑term rentals operating in the city; code enforcement and host‑compliance software will be used to contact operators and audit TOT collection.
The Fullerton City Council adopted an urgency ordinance on May 20 establishing a temporary 45‑day moratorium on issuing new short‑term rental (STR) permits while staff audits enforcement and transient‑occupancy‑tax (TOT) collection. The vote was unanimous.
Staff told council they have identified approximately 180 unpermitted STR listings operating in Fullerton through a contractor (Host Compliance), and noted that the workload to process applications and to respond to complaints is substantial. The city attorney explained that an urgency ordinance allows immediate action if the council finds a threat to public health, safety or welfare; the moratorium requires later public hearings and can be extended under statutory rules for up to two years if council later chooses.
Code Enforcement Manager described the enforcement approach: Host Compliance will generate notices, and the city’s code enforcement team will follow up where operators do not come into compliance. The council directed staff to use the temporary pause to audit the TOT payment and permitting processes, to refine permit fees and to return with recommended policy changes and enforcement plans before the moratorium expires.
Council comments emphasized tough enforcement against operators who knowingly skirt rules and suggested that persistent bad actors be barred from future participation in the program; staff said the moratorium will not permanently bar eligible operators from applying, but will allow the city to evaluate operating histories and policies.
Outcome: The council adopted Ordinance No. 3342 (urgency ordinance) instituting a 45‑day moratorium on issuance of new STR permits; staff will return with findings and potential ordinance changes prior to the moratorium’s expiration.
