Real Estate Tips: Everything you Need to Know About San Diego's New Short Term Vacation Rental Ordinance
/The new short term residential occupancy ordinance (STRO) is in full effect, with some modifications recently made. This entails new requirements regarding vacation rentals, which have been categorized under 4 tiers. Licenses will primarily be awarded via lottery system, with exceptions like Mission Beach. Learn more about the updates on the ordinance below:
Status of California Coastal Commission (CCC) Review
On May 17, 2022, City Council approved the California Coastal Commission (CCC) recommended modifications to the STRO Ordinance. These modifications include the following additions:
Language regarding lottery stratification by Community Planning Area for Tier 3 licenses,
Editor’s notes in various sections of the Ordinance identifying the relevant sections that are being added to the Local Coastal Program and the requirement of CCC approval, and
Sunset Clause.
The recommended CCC modifications require a 2nd reading at City Council, Mayoral approval, and subsequent full certification by the CCC.
Licensing Requirement Effective Date
The implementation timeline will depend on City Council and Mayoral approval of the Ordinance changes and subsequent full certification by CCC. Once the CCC unconditionally certifies the STRO ordinance as a local coastal program amendment, an ordinance implementation date will be set, including the requirement to obtain a STRO license & opening of the application process. The STRO webpage will be updated with more information regarding ordinance implementation as it becomes available.
Application Submission and Lottery Dates
The license application period has not opened yet and is expected to open in the Fall of 2022. The license application period and lottery dates will be determined once the Ordinance is unconditionally certified by the CCC.
The STRO Ordinance requires a license for all STRO of a dwelling unit, or part thereof, for less than one month. There are four (4) license types with varying requirements on the number of days and type of dwelling available for the STRO. A host may only hold one license and operate one dwelling unit for STRO at a time; licenses are not transferrable between ownership or location/dwelling unit.
A host may obtain a maximum of one license at a time in one of the following four (4) STRO license tiers:
*Based on the most recent Demographic and Socioeconomic Housing estimates issued by the San Diego Association of Governments (SANDAG) rounded up to the nearest whole number
The Office of the City Treasurer will establish a lottery application process; this webpage will be updated as more information becomes available. If the total number of Tier 3 and/or Tier 4 applications received are greater than the number of licenses available, applications will be chosen via a lottery. Prioritization will be given to “good actors” as outlined in this memo to City Council.
Additionally, City Council has approved the following application and license fees:
Note that application fees are non-refundable, and licenses expire two (2) years from the date of issuance and may be renewed in accordance with section 510.0106(d) of the Ordinance.
This website will be updated as additional information becomes available. If you would like to be notified when the website has been updated, please submit your email address to receive email updates.
Source: City of San Diego
