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Simi Valley council introduces ordinance to regulate short‑term rentals, sets Jan. 1, 2027 implementation
Summary
After hours of public testimony split between neighbors seeking a citywide ban and hosts urging regulation, the City Council introduced Ordinance 1370 to allow and regulate short‑term rentals with permits, inspections and nuisance controls; the measure passed unanimously for first reading.
The Simi Valley City Council on May 12 introduced an ordinance to regulate and allow short‑term rentals (STRs) in residential zones, directing staff to add a pre‑permitting inspection requirement and setting a deferred implementation date of Jan. 1, 2027.
Staff said the proposed rules would require a single permit per person or legal entity, annual renewal, a pre‑permitting building inspection, proof of liability insurance, a nuisance‑response plan with a contact who can respond within 30 minutes, and compliance monitoring administered initially by a vendor (HDL). Associate Planner Alex Klingman told the council the city’s vendor‑based compliance approach would cost roughly $14,000 in year one and about $9,750 annually thereafter, and estimated first‑year net revenue of roughly $152,000 once permits, business taxes and transient occupancy taxes (TOT) are collected.
The ordinance includes operational standards intended to protect neighborhoods: occupancy limits (the draft ties occupancy to two adults and two children per bedroom with staff offering an optional cap of eight occupants), smoke and pool safety features, prohibitions on paid events or group events with non‑registered guests, and requirements that guest vehicles not park in the public street in violation of local parking rules. Klingman said the city has identified roughly 100 STR listings and that the permit fee would be set to recover program costs (staff estimated an initial fee near $741 per permit based on projected workload).
The hearing drew more than two dozen speakers across several hours. Opponents—many representing neighborhood councils and the planning commission—urged a citywide ban, saying STRs risk neighborhood parking congestion, noise, party‑house behavior and loss of long‑term housing. “A hotel in a residential community is wrong,” one resident said, urging a ban to preserve family neighborhoods.
Proponents—hosts, property owners and representatives from the real estate community—argued regulation rather than prohibition, saying well‑run STRs help homeowners cover rising costs, spur property upkeep and bring customers to local businesses. “Responsible short‑term rental owners care deeply about their neighborhoods,” said a local host, noting that the city had only 10 STR‑related complaints last year.
Council members pressed staff on the survey used to gauge public sentiment (the city commissioned a sample of 670 registered voters; staff said it produced a 95% confidence level with a ±3.8% margin of error), the vendor‑vs‑in‑house compliance options (HDL vs. SB 346 data requests), and the potential effects on county “islands” within the city.
Mayor Kavanaaugh and the council ultimately introduced Ordinance 1370 for first reading, unanimously approving the version that incorporated a pre‑permitting inspection and other clarifications. Council members directed staff to return with final language for second reading and to provide periodic monitoring reports on complaints, permit counts and enforcement costs so the council can reassess the program if needed.
Next steps: the ordinance will return for a second reading to become law; operators were advised that the effective compliance and permit deadline would be Jan. 1, 2027.
