Regulation by Local Cities in Monterey County
WHAT REGULATION(S) AFFECT YOUR VACATION RENTAL?
If your STR is in an incorporated city, Monterey County regulations do not apply. Cities enact their own regulation which varies considerably from town to town.
Del Rey Oaks
On May 22, 2018 the Del Rey Oaks City Council unanimously approved what is the most permissive short-term rental ordinance on the Monterey Peninsula. The ordinance puts no cap on either hosted or un-hosted rentals. See A small city bucks a regional trend and allows short-term rentals with few restrictions.
The Marina City Council is working on an STR ordinance. It will prohibit STRs in second homes but will permit STRs in an owner's primary residence allowing those owners to rent a room or to rent the entire house while they travel. Owners will need to sign up for permit and pay TOT tax. There seems to be no limits on where or how many owners can do this. The Council believes second home STRs impact affordable housing and work force housing. MCVRA has attended these Council meetings and has explained why this is thinking is inaccurate. The ordinance does not appear favorable to second home owners.
Since 2010, Pacific Grove had an STR ordinance allowing homeowners to get an annual STR license to either rent no more than 90 days per year or an unlimited amount. The unlimited STR licenses at were capped at 250. There were other restrictions involving how close two permitted STRs could be and density limits in neighborhoods. In 2017, when the City Council decided to combine both types of STR licenses bringing the total number of licenses up to 289. In December 2017, the City Council decided to hold the lottery to meet the restrictions. A group of Pacific Grove STR owners called STRONGpg sued the city asking for an injunction to stop the Lottery. See STR owners sue city. Stating that STR owners had no right to expect their licenses to be renewed, the court ruled against an injunction.
On May 28, 2018 the lottery indiscriminately eliminated 51 STR licenses, far more than the City Council had anticipated. Two schoolteachers lost their license. So did a local family whose ex-army father is handicapped. Ditto for the family who uses the income to support a bedridden sister with multiple sclerosis. Owners with pages of complaints lodged against their rental got to keep their license. Owners without a single complaint lost theirs. Newcomers to the STR program kept their license. Old timers lost theirs. Properties losing their licenses had to cease short-term rentals by April 30, 2019.
But it got much worse! A group of Pacific Grove opponents obtained enough verified signatures to put Measure M, a complete ban on STRs in all but the coastal zone and commercial areas, on the November 2018 ballot. MCVRA fought Measure M but on November 6, 2018, Pacific Grove voters chose to give up property rights by passing Measure M. Despite the fact that each of them could be only a divorce, a medical event, or a job loss away from needing to rent their homes, Pacific Grove voters chose to limit STRs to the commercial and coastal zones. See Monterey County Weekly. 160 STRs had to cease by June 1, 2019. Homeowners operating an STR in Pacific Grove without a license are subject to very large fines. See Carmel Pine Cone article.
We are deeply saddened that the anti-STR contingent hurt so many homeowners as well as the local labor force that helps maintain these homes. The City’s budget will also take a hit at a time of looming pension obligations and upcoming capital expenditures on infrastructure improvements like sewers, roads, street lights, and children’s programs like youth recreation, baseball fields, and playgrounds.