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
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INTRO
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