The Santa Barbara City Council listens to comments on Tuesday before approving the short-term vacation rental ordinance, which prohibits short-term rentals in all inland residential zones and high-fire-risk areas and heavily restricts them in the coastal zones.
The Santa Barbara City Council listens to comments on Tuesday before approving the short-term vacation rental ordinance, which prohibits short-term rentals in all inland residential zones and high-fire-risk areas and heavily restricts them in the coastal zones. Credit: Rebecca Caraway / Noozhawk photo

Santa Barbara is taking a stand against Airbnb, Vrbo and residential vacation rentals.

The Santa Barbara City Council on Tuesday unanimously approved a short-term vacation rental ordinance that prohibits the rentals in all inland residential zones and high-fire-risk areas, and heavily restricts them in the coastal zones.

The new rules and regulations for vacation rentals listed on Airbnb and Vrbo will be implemented next year.

The coastal zone ordinance will have to be reviewed by the California Coastal Commission sometime next year.

Councilwoman Meagan Harmon, who is also the current chair of the commission, said the ordinance has similar regulations that the commission has supported in the past.

“I really think that we have found a balance that speaks to our obligation to provide visitor-serving accommodation, to provide access, and to also maintain the quality of life that makes our coast so remarkable in the world,” Harmon said. 

Neighbors living in communities with short-term rentals shared that they have to deal with noise, fire safety concerns, and loud parties from guests. 

Craig Leeds, who lives near Arroyo Burro Beach, said his neighborhood has dealt with large parties, fireworks, a food truck and a party bus blocking his driveway.

Craig Leeds, who lives in the Yankee Farm area, says his neighborhood has dealt with large parties, fireworks, a food truck and a party bus blocking his driveway.
Craig Leeds, who lives in the Yankee Farm area, says his neighborhood has dealt with large parties, fireworks, a food truck and a party bus blocking his driveway. Credit: Rebecca Caraway / Noozhawk photo

“I’m worried that a guest with no financial or emotional attachment to the neighborhood will either carelessly or unwittingly start a fire that could easily spread to the whole neighborhood,” Leeds said. 

Other residents said they bought into a neighborhood and instead are surrounded by vacant homes used for tourists. 

Of short-term rentals, Councilman Mike Jordan said, “I don’t think they’re borrowing from the neighborhoods. I think they’re stealing from the neighborhoods. They are eroding what the expectation is of anybody who has been there longer than the thing that short-term vacation rentals are.”

The ordinance does allow for homeshares, which means the guest would be staying in a room, not the whole house, with the owner present.

Many operators told the City Council that guests won’t be interested in the homeshares and that renting out their home helps pay their mortgage. 

Tony Shibata was vehemently against the homeshare model and said local hotels are too expensive for tourists.

Tony Shibata says he's against the homeshare model and says local hotels are too expensive for tourists.
Tony Shibata says he’s against the homeshare model and says local hotels are too expensive for tourists. Credit: Rebecca Caraway / Noozhawk photo

The ordinance also dictates that there has to be a two-night minimum stay. Kelly Arie argued during public comment that many guests visit for only one night to attend weddings and other events.

“Losing that would cut our business by almost a third and the city’s TOT (transient occupancy tax) along with that,” Arie said.

The ordinance will come at cost for the city. Implementation in the coastal zone will reduce the 265 units paying transient occupancy tax to an estimated 65 units, according to staff. That means a $2.3 million to $3 million drop in TOT revenues, which are paid by guests at hotels, motels and short-term rentals in the city.

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

Specifically, short-term rentals would be prohibited in all inland residential zones and high-fire-risk areas, and allowed only in non-residential zones or mixed-use residential zones, including the downtown corridor, the Milpas Street corridor and Upper State Street.

Homeshares will be allowed in all residential and non-residential zones of the coastal zone, which includes the waterfront, the Funk Zone and the Coast Village Road area.

A map shows where short-term vacation rental and homeshares are allowed within Santa Barbara.
A map shows where short-term vacation rental and homeshares are allowed within Santa Barbara. Credit: City of Santa Barbara map

Something that the city may look into in the future is allowing multiple short-term rentals on one lot, specifically in the West Beach area. 

Sean Black said limiting a property to one short-term rental means if there were separate owners of a duplex or two condos on the same lot, only one could be a short-term rental. 

“West Beach is exactly where we should want affordable accommodations,” Black said. “It’s a tourist district filled with hotels, steps from the beach, harbor, train station and State Street. No fire risk, no single-family residences. Preserve short-term capacity there and you have far more freedom to aggressively protect residential neighborhoods like the Mesa.”

Black’s comments seemed to convince some council members, while Councilwoman Wendy Santamaria worried that it would take away from units that could be used as long-term rentals.

Jordan wanted city staff to look into allowing multiple short-term rentals on one parcel, only in the West Beach area. However, to make the change, the city would have to push back adopting the ordinance. 

City Administrator Kelly McAdoo said the city can look into that and other changes once enforcement mechanisms are in place. 

The ordinance for the inland area will go into effect Jan. 11, while the ordinance for the coastal area will have to be reviewed and by the California Coastal Commission next year.

— Noozhawk staff writer Rebecca Caraway can be reached at rcaraway@noozhawk.com.