DEL MAR — After nearly seven years of confusion and controversy over the viability of short-term rentals in Del Mar, city officials have started crafting a new ordinance to regulate their operation while also extending a ban on new rentals for another two years.
The establishment of new short-term rentals — those rented out for less than 30 consecutive days — has been banned in Del Mar since 2016, when the city established a moratorium out of concern about their rising numbers throughout the city.
In 2017, city officials implemented an ordinance allowing short-term rentals to operate without limit in the city’s commercial zones but requiring those in nearly all residential zones to operate a minimum of seven days at a time and no more than 28 days per year.
However, this ordinance never went into effect after failing to obtain unconditional approval from the California Coastal Commission, which argued that the regulations were too restrictive.
City officials say efforts to create a new ordinance were delayed by subsequent court cases and the COVID-19 pandemic, but they are now ready to begin working on a new law that will hopefully pass muster with the state commission.
“We have been coordinating with [the] Coastal Commission throughout this process, so they understand exactly where we are in our work plan, and they’re supportive,” Principal Planner Amanda Lee said at the City Council’s Monday meeting.
Since the first ordinance failed, short-term rental activities have been under an enforcement forbearance similar to the original moratorium, allowing all rentals operating before the April 2016 moratorium to continue without restrictions but forbidding the operation of any new rentals.
While originally intended to be in place temporarily until an ordinance could be approved, this forbearance has been extended multiple times. The city council approved the most recent two-year extension on Monday, stretching the ban on new rentals into early 2025.
City officials said they hope this will give them enough time to craft an ordinance and associated Local Coastal Program amendment, which will need to be approved by the planning commission and city council before going to the coastal commission.
“We may be finished with this process before the end of the forbearance period. That’s clearly the goal here, to get this done as soon as possible,” said City Manager Ashley Jones. “Also, we don’t have control of the process once it leaves the city’s portion of the process and goes to [the] coastal commission … this will give us plenty of time to go through that process.”
Lee said that the city had contracted a consultant to collect data on local short-term rentals through June, and findings will be presented to the council later in the year.
During the meeting, residents shared many of the same concerns they had been repeating for years — that the forbearance illegally and unfairly restricts short-term rentals and that the time for new regulations is long overdue.
“You’ve had your forbearance/moratorium in place for seven years, yet you have not produced any evidence that it’s a necessary item that we need to put over our property owners. I think it’s an overreach by the city council to continue to take property rights away from new owners,” said resident Gina Mattern.
Other constituents support the restriction of short-term rentals, arguing that they pose a nuisance to permanent residents.
“I am so happy we don’t have short-term rentals where I live because it is a living nightmare,” said resident Camilla Rang. “People, especially young people, come and they party and I need to go to work in the morning. There has to be a solution, but the solution cannot be to have short-term rentals in all of Del Mar.”
Regardless of differing opinions, the city found itself embroiled in litigation related to the ban on new short-term rentals and its 2017 declaration that these rentals are not permitted in the city’s residential areas.
A 2017 lawsuit filed by a coalition of homeowners opposed to the ruling argued that the city effectively decided a new land use by making this decision, which requires CEQA review. Residents also argued that the decision ignored the city’s long history of operating vacation rentals and their economic tourism benefits.
The lawsuit ultimately resulted in no penalties to the city.
Del Mar officials also took legal action against the Coastal Commission in 2018 after the state body rejected their proposed ordinance. The petition, which sought clarification from the courts regarding who has land-use authority in the city, was ultimately dismissed.
Most neighboring cities in San Diego County allow short-term rentals without limits on the number of days they can be operated and also impose a transient occupancy tax. Some residents hope the city will consider that option in the future.
“Currently, these grandfathered-in short-term rentals are not being taxed, and I think the city is missing out on a lot of money, millions of dollars, every year from not doing so,” said Jessica Solano of local short-term rental company Vacation Rentals by Kimberly.
