Homeowners within the city of Santa Barbara will have to wait a bit longer to learn about the fate of their short-term rentals.

The Santa Barbara Ordinance Committee continued its discussion on the city’s proposed short-term rental ordinance to next week after running out of time Tuesday afternoon following a significant amount of public comment. 

While some speakers were supportive of the ordinance, wanting more regulations and less tourists as neighbors, others said it was being pushed through too quickly and would prevent families from being able to visit Santa Barbara. 

Jack Eisenhower, who has lived with his wife on the Mesa since 1974, said he’s concerned about the increase of unlicensed short-term rentals in the neighborhood. 

“I don’t agree with everything in the ordinance. I wish it more restrictive on short-term rentals, but I understand the need to compromise,” Eisenhower said.

He argued that the ordinance protects housing while still giving a chance for visitors to stay in coastal neighborhoods. 

“What if this ordinance is just the thing that saves neighborhoods, saves housing and avoids the fate of other tourist destinations that have lost their character?” Eisenhower said.

The proposed law is meant to create a permit pathway and clear regulations for residential homes being used as short-term rentals and homeshares, which have the owner staying in the same house along with the guests.

The rules are also meant to protect the housing supply for long-term rentals.

Under the proposed ordinance, short-term rentals and homeshares would be allowed only in certain zones of the city.

Specifically, they would be prohibited in all inland residential zones, and allowed only in non-residential zones or mixed-use residential zones, including the downtown corridor, the Milpas Street corridor and Upper State Street.

However, in the coastal zone, which includes the waterfront, the Funk Zone and the Coast Village Road area, homeshares would be allowed in all residential and non-residential zones.

Short-term rentals aren’t allowed in single-family and two-family residential zones and are limited to the designated license area.

Becky Kracke asked the committee to grandfather in existing short-term rentals that are outside the proposed license areas. 

“For years many, STR owners have operated responsibly, paying transient-occupancy taxes, following local regulations, maintaining their properties and contributing meaningfully to the local economy,” Kracke said.

“These are not bad actors. They are engaged members of the community who have played by the rules as they were written.”

On Tuesday, city staff shared that the city currently has 255 units paying transient occupancy tax in the coastal zone, both in and out of the proposed license area. Of those, about 65 could continue to operate in the proposed coastal license area, if they meet ordinance requirements. 

Last fiscal year, short-term rentals contributed $4.4 million in TOT revenue and $2.8 million in fiscal year 2023-24. As of January, short-term rentals had contributed $2.7 million in TOT revenue for the current fiscal year. 

Under the proposed ordinance, short-term rentals would be allowed to have only two guests per sleeping room and up to six daytime guests.

Homeshares would be limited to four guests, plus the household of the owner or host, and up to six daytime guests. 

Under the proposed ordinance, parking would be required on site. A unit with up to four bedrooms would need two on-site parking spaces. For a unit with five or more bedrooms, three on-site spaces would be required. 

Planning Commission chair Lucille Boss spoke at Tuesday’s meeting, noting that many of the commission’s concerns haven’t been addressed. 

Specifically, the commission wanted city staff to explore waivers for parking requirements, research enforcement details, and consider a lottery- or cap-based system rather than the current proposed zoning system. 

City staff noted that it would take several months to research a cap- or lottery-based system. 

“I ask you to consider marinating on the process a bit and get it right before going to council and Coastal Commission,” Boss said.

A few other speakers brought up the commission’s “laundry list” of concerns and how the the panel originally wasn’t ready to send it to the Ordinance Committee.

That was until City Attorney John Doimas told the commission that the council wanted to vote on the ordinance in May.

“This isn’t ready to move forward,” said Jarrett Gorin, a planner with Vanguard Planning. “I don’t see how this could possibly move forward, and I really request that your committee send this back down to the Planning Commission so it can get finished right and come here fully baked. We need to get this right.”

Due to the amount of public comment, the committee, which consists of council members Oscar Gutierrez, Mike Jordan and Kristen Sneddon, did not have time to comment on the ordinance before the meeting had to be adjourned for the regular City Council meeting.

The Ordinance Committee is scheduled to continue the discussion on short-term rentals next Tuesday.