Skip to content

Deadline nears for short-term residential occupancy license functions

Time is working out for hosts looking for to lease a complete dwelling as a short-term residential occupancy, in any other case referred to as a short-term trip rental, as the applying interval to use for Tier 3 and 4 license varieties closes Wednesday, Nov. 30, at 5 p.m.

Licenses will likely be required to function an STRO dwelling unit within the Metropolis of San Diego beginning Could 1, 2023, when enforcement will start.

The STRO Ordinance, accredited by the San Diego Metropolis Council and California Coastal Fee, offers tips for short-term leases of lower than one month. These tips embrace a requirement for hosts to acquire a license and set up a cap on the variety of licenses granted for whole-home leases working greater than 20 days per yr.
“In case you are planning to make use of your property as a short-term trip rental subsequent yr within the Metropolis, now could be the time to acquire an STRO license,” mentioned Growth Companies Division director Elyse W. Lowe. “Do not delay; the Metropolis has employees out there to help candidates. After the Tier 3 and Tier 4 license utility interval closes this month, you will not have the ability to get a license subsequent yr and non-complying properties will likely be topic to strict enforcement.”

As soon as the Nov. 30 deadline for STROs ends, what occurs then?

“If the overall variety of Tier 3 and/or Tier 4 functions obtained is bigger than the variety of licenses out there, functions will likely be chosen by way of a random lottery for license issuance,” mentioned Metropolis senior spokesperson Racquel Vasquez, referencing a response from the Workplace of the Treasurer. “Good actors will likely be prioritized primarily based on a weighted scale with factors assigned primarily based on if the host meets the factors of a Good Actor as outlined in Tier 3 and Tier 4 Good Actor Prioritization Clarification memo issued July 13, 2022. If the overall variety of Tier 3 and/or Tier 4 functions obtained is lower than the variety of licenses out there, all hosts that submitted an entire and correct utility will obtain an STRO license, except they’ve a pending enforcement motion.”

Vasquez mentioned there are not any caps for Tier 1 (part-time) or Tier 2 (dwelling sharing) licenses, whereas the overall variety of Tier 3 licenses issued shall not exceed 1% of the overall housing items within the Metropolis of San Diego, excluding the overall housing items with the Mission Seashore Group Planning Space.

Relating to Mission Seashore, Vasquez famous the overall variety of Tier 4 licenses issued shall not exceed 30% of the overall housing items within the Mission Seashore Group Planning Space. “Primarily based on the latest demographic and socioeconomic housing estimates, there are 5,416 Tier 3 licenses and 1,081 Tier 4 licenses out there,” Vasquez mentioned including, “All Tier 1 and Tier 2 candidates that submit an entire and correct utility will obtain an STRO license .”

Vasquez mentioned the Metropolis’s determination on who’s granted STRO licenses is ultimate. “The ordinance doesn’t define an administrative attraction course of out there for an individual who is just not chosen for a license,” she mentioned.

Earlier than starting the applying course of for any of the 4 STRO licenses being issued, hosts should possess an lively Transient Occupancy Tax (TOT) certificates and guarantee all Rental Unit Enterprise Taxes are in lively paid standing.

To make sure compliance, enforcement measures for STRO licenses below the Metropolis’s new ordinance could embrace Administrative Quotation Warnings, Administrative Citations of as much as $1,000, and Civil Penalties of as much as $10,000 per violation. Unpaid penalties or persevering with violations may lead to a property lien with the County of San Diego.

SHORT-TERM RENTAL OCCUPANCY LICENSES

Beginning Could 1, 2023, rental hosts should have a license to make use of properties inside the Metropolis as short-term leases. Tier 1 and Tier 2 licenses will be obtained at any time, whereas the applying interval for Tier 3 and 4 licenses closes on Nov. 30.

There are 4 totally different STRO licenses:

  • Tier 1 licenses for short-term leases totaling 20 or fewer days per yr.
  • Tier 2 licenses for renting a room or rooms within the dwelling for greater than 20 days per yr as long as the proprietor or everlasting resident resides onsite.
  • Tier 3 licenses for whole-home leases exterior Mission Seashore exceed 20 days in a yr the place the proprietor or everlasting resident doesn’t reside on website.
  • Tier 4 licenses for whole-home leases inside Mission Seashore exceed 20 days in a yr the place the proprietor or everlasting resident doesn’t reside on website.

STRO License Lottery System

  • Tier 3 and Tier 4 license issuance will likely be achieved by way of computer-generated randomization and will likely be performed by a 3rd celebration or division impartial of the Workplace of the Metropolis Treasurer.
  • Tier 4 license issuance will likely be primarily based on easy randomization; all license recipients will likely be chosen at random

Tier 3 license issuance will likely be carried out by way of a stratified lottery. Stratification of the applicant pool will likely be accomplished primarily based on the Group Planning Space during which the STRO property is positioned. The license recipients will nonetheless be chosen at random inside every CPA. The share of licenses issued in every CPA will likely be proportional to the share of functions obtained for STRO properties in every CPA. For extra info, to view a license utility video and assessment regularly requested questions on STRO, go to sandiego.gov/stro.

Leave a Reply

Your email address will not be published. Required fields are marked *