City officials on Tuesday reviewed a proposed ordinance that would significantly restrict whole-home short-term rentals in coastal neighborhoods such as the Mesa, while allowing expanded home-sharing in which owners remain on-site.
At an Ordinance Committee meeting, officials discussed the proposal, which would also require permits, inspections and proof of insurance for short-term rental operators. The plan comes as the city weighs how to balance tourism activity with neighborhood livability and housing availability.
The proposal, prompted by several factors including resident complaints, has drawn mixed reactions from the community. Some residents say the increase in short-term rentals has contributed to noise, parking challenges and reduced neighborhood stability.
“I am bothered by the growing number of unlicensed short-term rentals…and I think restrictions should be stricter but I understand the need to compromise,” Santa Barbara resident Jack Eisenhower said.
But others, however, warned that tighter regulations could have financial consequences for the city.
“If the city ends up losing millions of dollars in revenue are they going to have to raise taxes, are they gonna have to cut other essential services like libraries, police, fire,” said Tom Widroe executive director of the Santa Barbara Taxpayers Assocation.
Widroe says beyond neighborhood concerns, the proposal could also bring financial and logistical challenges for the city.
“Besides a loss in revenue, now internally what are you gonna do with staff to make sure they enforce it, dot the I’s and cross the t’s, make the phone calls, and do the enforcement, that takes staff time,” he said.
The Ordinance Committee voted to continue discussion of the proposal at a future meeting.
If advanced, the proposal would then go before the Santa Barbara City Council for consideration.
