A Ventura Court of Appeals decided May 4, 2021 that the City of Santa Barbara’s ban on short term vacation rentals (STVR) was illegal.
FACTS: Prior to 2015 the City encouraged the operation of STVRs. They were treated as “permissible residential uses” and paid Transient Occupancy Taxes (TOT). In June 2015 the City began regulating STVRs as “hotels” under its municipal code, which effectively banned STVRs in the coastal zone. The City did not seek a coastal development permit (CDP) or an amendment to its certified Local Coastal Program (LCP) prior to instituting the ban.
CHALLENGE: T. Kracke, a STVR manager, challenged the City’s new enforcement policy. The trial court agreed with the plaintiff Kracke and held that the City could not ban STVRs in the coastal zone unless it obtained approval by the California Coastal Commission or a waiver of such requirement. The City appealed and lost.
COURT OF APPEALS: The appeals court was clear that the Coastal Act maximized public access to the beach and protected lower cost visitor and recreational facilities. They agreed with earlier courts that said that “A lack of affordable accommodations remains a barrier to coastal access”.
The court said the City could not impose a coastal STVR ban without the Commission’s input or approval. The City was ordered to work with the Coastal Commission before it could limit STVRs on the Santa Barbara coastal zone area.
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