DISCUSSION
Short term rentals (STRs) are prohibited in residential zones of the City of Garden Grove. Specifically, Garden Grove Municipal Code sections 9.32.020, 9.08.020.030 and 9.12.020.030 prohibit renting out of residential zoned properties for a period of less than 30 days as “vacation rentals” or “short-term rentals”. Violations of the Municipal Code are misdemeanors and can be prosecuted as such, and can subject offenders to fines of up to $1,000, six months in jail, or both. Further, each day that a violation exists constitutes a separate offense and can result in accrual of penalties for each violation.
Although the City has enforced the illegal use of residential zoned properties as short-term or vacation rentals for many years, the number of complaints has recently increased substantially. The City is now allocating more resources to enforce the Municipal Code and has implemented the following changes to the Code Enforcement Policy and Procedures to address short term rental violations.
1. Community Outreach. On October 18, 2017, formal written notification were sent 3,557 property owners who hold a Business Operating Tax Certificate (BOTC) for residential rental property. The letters advised all rental property owners that any rental agreements must be for a period in excess of 30 days. The notification further stated any confirmed violations of the City's Municipal Code related to STRs would result in the issuance of an Administration Citation. A copy of that letter is attached. (Attachment No. 1) Further, all Residential Rental BOTCs now contain a condition stating “Does Not Allow Short Term Rentals in Residential Zones”.
2. STR Complaint Form. A formal process has been created to provide the public an ability to submit a formal complaint associated with STRs or vacation rentals. This form is identified as an Affidavit for Vacation or Short Term Rental Citation and posted on the City’s Code Enforcement webpage. A copy of the affidavit is attached. (Attachment No. 2) Neighbors and persons with direct knowledge of STRs are encouraged to complete an affidavit to provide as much first-hand knowledge of the operation of suspected STRs as possible. The complainant is required to sign that they understand that they will be required to attend an administrative hearing if the citation is contested and also declare under penalty of perjury that the statements contained in the affidavit are true and correct. This signed affidavit provides the evidence that Code Enforcement needs to issue an Administrative Citation. To date, we have received four affidavits.
3. Proactive Code Enforcement. Research is ongoing to identify and verify any current STRs within the City of Garden Grove. A list of 53 suspected STRs has been compiled. To date, staff has been able to confirm 35 properties as STRs. Of those 35 properties, 22 properties appear to no longer be operating as STRs as these listings have been removed from the vacation rental websites.
4. Administrative Citation Policy
In compliance with the City’s Administrative Citation policy, staff has issued citations in the amount of $1,000 per citation on the following dates:
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Date Issued
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Number of Citations Issued
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11/6/17
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32
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11/15/17
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23
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11/28/17
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13
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Staff has received a number of calls from property owners who have received an Administrative Citation asking about the regulations for STRs and also asking about the procedure to contest the citations. To date, six (6) requests for Administration Citation appeals have been requested. The appeals have been scheduled for December 21, 2017.