Planning commission reviews vacation‑rental report, asks staff for policy options on caps, monitoring and affidavits

The Sebastopol Planning Commission received an informational report on Sept. 24 examining the city's current short‑term rental rules and enforcement tools and asked staff to return with policy options addressing caps, affidavits, enforcement and potential funding streams.

Susie, a planning staff member, summarized findings: the city has roughly 34 permitted hosted rentals and 3–4 nonhosted permits in recent years, about 22 active listings were identified on platforms during a snapshot review, and staff's vendor tracking suggests there may be 50–60 currently active platform listings within or near city limits. The report flagged parking and noise as the most common resident complaints and noted that prior policy (2019) had limited nonhosted rentals but the restriction was later removed; staff recommended the commission provide feedback and policy direction.

Commissioners pressed staff on specific policy options. Topics discussed included:

- Caps: Several commissioners proposed capping hosted and/or nonhosted short‑term rentals (for example, holding numbers at current permitted levels or adopting modest increases by policy). Some commissioners suggested capping nonhosted rentals through attrition. Others worried a hard cap could drive operators to other jurisdictions or reduce housing supply.

- ADUs and JADUs: Commissioners discussed prohibiting ADUs and JADUs from short‑term rental use to protect long‑term housing supply; staff noted state law may already constrain use of JADUs.

- Affidavits and monitoring: Commissioners suggested owner affidavits to verify primary residency or intended use, and separating Transient Occupancy Tax (TOT) revenue or using application/renewal fees to fund monitoring rather than general fund TOT. Susie confirmed the city already pays an outside vendor for listing monitoring (roughly $2,000–$3,000/year) and could explore fee structures or dedicated TOT allocations.

- Days‑per‑year limits and proximity/oversaturation rules: Commissioners floated a days‑per‑year allowance (for example, 60–90 days) for owners who are part‑time residents, and discussed geographic proximity rules to avoid clustering on a block.

Public commenters offered mixed views. Kyle (a resident) urged stronger code enforcement, fiscal penalties and rules to ensure the market pays for monitoring; JB (a local host) defended short‑term rentals as bringing visitors who support local businesses and urged differentiating hosted from nonhosted uses. Linda again raised health concerns around wireless radiation; staff and commissioners noted public health claims do not affect zoning analysis.

Next steps: Staff will return with policy options and examples from other jurisdictions that address caps, affidavits, oversaturation/proximity limits, possible days‑per‑year models and enforcement/funding mechanisms. Commissioners also asked staff to examine TOT revenue figures and to propose an approach that balances housing preservation with tourism and neighborhood compatibility.