Newport Beach, California, is moving forward with updates to its short-term rental regulations following a recent city council vote that aligns with recommendations from the California Coastal Commission. These proposed changes aim to modify existing rules that govern short-term rentals nestled within two specific coastal mixed-use zones.
In response to public concern and input, the Coastal Commission highlighted the importance of these adjustments during its review in May. The commission supports allowing a limited number of short-term rental properties in mixed-use areas, including the Mariners’ Mile corridor and upper Balboa Peninsula—zones identified in a 2003 ordinance.
Coastal program analyst Chloe Seifert communicated the commission’s feedback in a letter dated May 28. Among the significant changes suggested is a revision in how existing properties built prior to November 25, 2010, would be counted. This modification affects the cap of 75 permits established by the council, which presents challenges by restricting the addition of new permits to just 56.
In addition to the allocation of short-term rental permits, the commission emphasized the necessity of maintaining public parking access to beaches within the two designated zones. Residents voiced concerns during a council meeting on July 22, particularly regarding the stipulation that operators must possess at least 20 units to qualify for a short-term rental operating permit in coastal areas.
Mario Sustayta, a Newport Beach resident and property owner of an oceanfront duplex, criticized the 20-unit requirement as an unreasonable barrier. He argued that such a threshold limits opportunities for smaller property owners. “It’s unfair to those of us who work hard to maintain our properties,” he expressed during the public comment session.
Currently, Newport Beach permits a total of 1,475 short-term rental units citywide without imposing the 20-unit stipulation in areas outside the coastal mixed-use zones. Jaime Murillo, deputy director of community development, pointed out that the city’s regulatory strategy aims to find a balance between the economic benefits of short-term rentals and neighborhood concerns such as noise and parking issues.
As part of this initiative, Murillo noted, there has been a proactive approach to enforcement, with measures already taken to increase code enforcement staffing as authorized by the council last summer. The objective of the 20-unit requirement, he explained, is to enhance accountability by managing fewer property owners at a time.
Concerns also arose regarding the exclusion of other mixed-use areas from the proposed updates. Jean Bately, a member of the Newport Beach Short-Term Rental Alliance, expressed disappointment that larger areas, such as Balboa Island, were not included in the updated permit options.
Murillo defended the decision, indicating that the Mariners’ Mile corridor and upper Balboa Peninsula have a sufficient number of properties meeting the 20-unit criteria, a claim not applicable to other neighborhood regions like Balboa Village, which lack an adequate inventory.
The council unanimously voted 5-0 to incorporate the recommendations from the Coastal Commission into its rental regulations. Notably, Councilmember Noah Blom recused himself from the vote due to a conflict of interest, while Councilmember Michelle Barto was absent.
A follow-up procedural vote is set for the City Council’s meeting on August 26, after which the amendments will require final approval from the Coastal Commission, anticipated in October.
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