YEO Policy Books 2015 Policy Book - Page 72

Home-Sharing Ordinance Origin: City of Santa Monica, California Bill Name/Number: Chapter 6.20 Link: Click here Summary: In May 2015, Santa Monica adopted the “Home-Sharing Ordinance” to clarify prohibitions against shortterm vacation rentals and imposing regulations on home-sharing. Talking Points & Important Information: • With the growth of social apps like Airbnb, the number of vacation rentals has increased dramatically over the last few years. This market demand has increased the number of rental units otherwise available to long-term rentals (city residents). In fact, 89 percent of revenue from Airbnb goes to professional management companies that have taken entire apartment buildings and placed them into the short-term vacation rental market. • According to our partners at LAANE, Airbnb has removed close to 8,000 rental units from the Los Angeles housing market over the past three years, contributing to the ever diminishing pool of affordable housing in the area. • With a constricting rental market and residents looking to relocate from Santa Monica due to affordability, the city council decided that it was time to stop turning apartment buildings in residential neighborhoods into hotels. This ordinance establishes a proactive enforcement program to identify vacation rentals that are operating illegally without a host on site. This important provision allows residents – actual Santa Monica residents – to continue sharing in the enterprise of vacation rentals without constraining the housing market. • For more on keeping housing affordable, click here and here. 2015 POLICY BOOK LOCAL INTRO LEVEL PAGE 72