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Nevada City, California, Short-Term Home Rental Ordinance, Measure Y (June 2016)

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Local ballot measure elections in 2016

Measure Y: Nevada City Short-Term Home Rental Ordinance
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The basics
Election date:
June 7, 2016
Status:
Defeatedd Defeated
Topic:
Local housing
Related articles
Local housing on the ballot
June 7, 2016 ballot measures in California
Nevada County, California ballot measures
Local business regulation on the ballot
See also
Nevada City, California

A measure to increase restrictions on short-term rentals was on the ballot for Nevada City voters in Nevada County, California, on June 7, 2016. It was defeated.

A yes vote was a vote in favor of further restricting on home-sharing and short-term rentals, such as the rentals listed on websites like Airbnb, VRBO, and Homeaway.
A no vote was a vote against further restricting short-term rentals and homesharing, leaving the city council-approved citizen initiative ordinance in place.

Election results

Nevada City, Measure Y
ResultVotesPercentage
Defeatedd No1,13965.91%
Yes 589 34.09%
Election results from Nevada County Elections Office

Overview

What was at stake with Measure Y?

Both supporters and opponents agreed that the outcome of Measure Y would have a significant impact on the future of the city's finances, the local tourism industry, the qualify of life of residents, and the "historical character" of the city.

Supporters argued that allowing the short-term rental industry to thrive would provide revenue to the city, improve the economy, and make the city more appealing and welcoming to visitors and tourists.[1]

Opponents argued that Measure Y was a compromise that allows residents to rent out extra rooms and in-law units for extra income while restricting short-term rentals enough to preserve:[2]

  • the quality of life for permanent residents
  • the character and personality of the city
  • the availability of long-term housing and parking

What was Measure Y designed to change?

Things that Measure Y was designed to change:

Measure Y was designed to overturn the city council-approved Nevada City Hosts initiative and tighten the restrictions on short-term rentals. Measure Y was designed to do the following:

  • Require all rental hosts be primary residents of the main part of any dwelling offered for short term rental
In contrast, the city council-approved ordinance required only that the rental host be a resident of Nevada County.[3]
  • Require that dedicated parking be provided to short-term rental guests or that some other method be used to prevent a net decrease of available on-street parking.
  • Require special permits, compliance reviews, and strict enforcement.[3]
For details, read the full text of the ordinance below.
Things that Measure Y was designed to not change:

Both the city council-approved short-term rental ordinance that Measure Y was designed to replace and Measure Y were designed to:[3]

  • Allow up to 30-day rentals
  • Require compliance with city building code and law compliance
  • Require the payment of a hotel tax
  • Limit guest vehicles to one per rental unit
  • Prohibit the use of short-term rentals for commercial uses such as meetings or business events

Background

Prior to the adoption by the city council of an initiative ordinance drafted by Nevada City Hosts, the city operated under a previous citizen initiative that prohibited most short-term rentals and home sharing.[4]

Short-term rental debates elsewhere

The issue of housing and the regulation of short-term rentals had been a contentious issue in many cities, especially large cities in California and on the East Coast. In 2015, Airbnb spent more than $8 million to urge San Francisco voters to defeat a measure designed to restrict the short-term rental industry there. Voters in other cities in California have also voted on the issue.

Text of measure

Ballot question

The following question appeared on the ballot:[5]

Shall the recently enacted hosted short-term rental regulations resulting from adoption by the City Council of Nevada City of a prior voter initiative (effective January 8, 2016) be repealed and replaced with the more restrictive provisions of an alternative voter initiative permitting on-line type home-sharing short-term rentals of two units in a single-family residence or small guest house only if the owner occupies the main dwelling and off-street parking is provided and making related General Plan amendments?[6]

Impartial analysis

The following impartial analysis of the measure was prepared by the office of the city attorney of Nevada City:

Measure Y — an Initiative Measure to Enact Zoning Ordinance and General Plan Amendments to Permit and Restrict Home Sharing Short-Term Rentals of Rooms in Single-Family Residences or Guest Houses by Owner Occupying Main Dwelling — was placed on the ballot by a petition signed by the requisite number of voters.

When presented with an earlier initiative petition of NC Hosts addressing new online type short-term home sharing rentals like Airbnb and VRBO, the City Council adopted the initiative without change to define, permit and regulate such rentals in Nevada City effective January 8, 2016. Measure Y is a competing Nevada City Neighbors initiative proposing to regulate the same short-term sharing rentals more restrictively. If passed by a majority of the voters, Measure Y would overrule and replace the adopted provisions of the prior initiative by changing the Zoning Regulations in Municipal Code § 17.72.080 and amending the Nevada City General Plan.

Both the current regulations and Measure Y permit short-term hosted or home sharing rentals not to exceed 30 days of up to two sleeping rooms in a single-family dwelling and/or guest house in zoning districts where single-family dwellings and their associated guest houses are located, subject to annual registration and payment of Transient Occupancy Tax (TOT). Both also require that rented units comply with all laws and building and similar codes, including sanitation requirements; limit vehicles to one per rented unit; preclude use of a property solely for shared short-term rentals; and disallow commercial meetings/events for direct or indirect compensation.

Measure Y would tighten the existing requirement that an owner or manager can reside either at the property or in Nevada County, requiring instead that the owner reside on the property in the main part of the dwelling throughout the rental, and require rental parking on site or with no net loss of on-street parking. Measure Y requires a permit and includes extensive enforcement procedures, authorizing an annual review and compliance fee to fully fund City expenses of application processing, monitoring, compliance review and enforcement. Measure Y also proposes extensive amendments to the City General Plan focused on distinguishing between the home sharing short-term rentals it allows and other short term rentals that are precluded.

If Measure Y passes, its proposed revisions will be made to the Zoning Regulations of the Nevada City Municipal Code and the Nevada City General Plan and those restrictions will control permitting of all new home-sharing short-term rentals after the election. If Measure Y does not pass, the existing hosted short-term rentals regulations and General Plan provisions will remain in effect and unchanged.

A "Yes" vote is in favor of replacing the existing hosted short-term rentals regulations and related General Plan provisions with the Measure Y provisions. A "No" vote is against making any amendments.[6]

—The city attorney of Nevada City[3]

Full text

The full text of the measure is available here.

Support

Nevada City Neighbors Measure Y support logo

Supporters

Nevada City Neighbors was the group backing this initiative and supported additional restrictions on the short-term rental industry.[2]

The following individuals signed the official argument in favor of the measure:[7]

  • Howard Hamer, a Nevada City resident
  • Gary Johnson, a Nevada City resident who helped to draft the ordinance that Measure Y was designed to replace
  • Gregg G. Schiffner, a Nevada City resident
  • Normand E. Westmore, a Nevada City resident
  • Joan Good

Arguments in favor

Hamer said:[8]

There’s noise problem in many spaces... There are problems of control of commercial events. The house across from my home was advertised for special events … there was nobody I could contact when there was garbage across the street. How do we identify the non-licensed vacation rentals? We need enforcement provisions.[6]

Official argument

The following official argument was submitted in favor of the measure:[9]

Measure Y is a compromise voter initiative designed to protect residential neighborhoods from the negative impact of short-term vacation rentals. Nevada City voters passed Measure F in 1994 which prohibited vacation rentals in residential zones. But recently the City Council, in a controversial 3-2 vote, circumvented Measure F and approved another measure submitted by vacation rental owners that would allow short-term vacation rentals in residential zones, with few provisions to protect the character of our neighborhoods.

Measure Y allows for vacation rentals but with a number of requirements that protect neighborhoods: off street parking must be provided, the owner must live on site (no absentee landlords or whole house vacation rentals by out of town investors), no special events by lodgers, the rental is limited to two rooms or separate outbuilding, and the City is empowered to enforce the rules if neighbors complain.

The ordinance written by the Hosts and adopted does not provide safeguards to neighborhoods. Instead, almost any entire residence can become an overnight rental business without the owner living there, ignoring zoning requirements in place for decades that have helped instill our neighborhoods with peace and quiet and a sense of community.

Also of concern is the fact that 40% of Nevada City residents are long-term renters. When long-term rentals convert to overnight vacation rentals, the supply of affordable housing decreases, making it difficult for people to live here permanently.

Many California communities have banned short-term rentals in residential neighborhoods. Measure Y does not call for a ban. Instead, it provides a fair compromise allowing homeowners to rent rooms (though not entire houses) as lodging for extra income. It protects the quality of life in the neighborhoods we love, the places we call home. Please join us in this effort with a Yes vote on Measure Y. [6]

Opposition

Nevada City Hosts Measure Y opposition logo

Opponents

The group Nevada City Hosts opposed Measure Y and helped to draft the city council ordinance that it was designed to replace. Nevada City Hosts supported the short-term rental industry in the city.[10]

Kathy Dotson, who co-founded Nevada City Hosts, signed the official argument against Measure Y.[11]

Arguments against

Kathy Dotson said Measure Y would discourage short-term rentals. Dotson said the following of the short-term rental industry in the city:[12]

It’s great for the city. It’s incredible for the merchants. It’s bringing tourists, and it’s truly supporting what the economy of Nevada City is all about, which is tourism.[6]

Official argument

The following official argument was submitted in opposition to the measure:[13]

In November the City Council passed an ordinance allowing hosted short-term rentals in Nevada City. It prohibits whole house rentals, but allows hosts to rent up to two rooms in their home, a guest cottage on their property or guest quarters within the home itself. Many old, wonderful Victorians and miner's cottages were built with in-law quarters and/or separate guest quarters and have Nevada City charm and appeal to visitors. They offer the quality of neighborhood experience that today's traveler's desire.

On its face, Measure Y seems similar, but its restrictive details will disqualify most recently legalized short-term rentals. It is unnecessary, and if passed, will do little to improve Nevada City's lodging shortage or provide new revenue to the City and its merchants.

Vote NO on Measure Y to Ensure

  • Guests to Nevada City may stay in quaint neighborhood with kitchen facilities
  • Owners don't have to be present on-site supervising guests 24/7
  • Lack of off-street parking won't disqualify a host from offering rooms to visitors. 80% of current hosts provide off-street parking now. A child would be welcome to stay in a guest unit with their parents with the host's approval
  • Commercial gatherings would be prohibited, but a friendly birthday dinner or meeting with a business partner would not be deemed illegal
  • Flexibility for the city to modify as needed
  • Staffing for policing and monitoring hosts, or to issue permits, won't be mandated. An application fee plus annual registration and business license fees could be used to process applications and manage any violations.

Please allow the ordinance that is already in place to work for the benefit of the City. No complaints have EVER been recorded against a Nevada City host. Vote NO on Measure Y. [6]

Path to the ballot

See also: Laws governing local ballot measures in California

This measure was put on the ballot through a successful citizen initiative signature petition campaign in response to a previous citizen initiative that was approved directly by the city council.

Timeline

  • September 15, 2015: Members of Nevada City Hosts submit a petition for the initiative to legalize and regulate short-term rentals.
  • October 9: The Nevada City Neighbors filed an "intent to circulate" for its own competing initiative for Measure Y.
  • Late October 2015: The Nevada City Neighbors submitted signature petition sheets for its competing initiative.
  • November 3, 2015: Nevada County elections officials certify that the Nevada City Hosts petition had enough valid signatures.
  • November 18, 20165 The Nevada City Council voted 3-2 to approve the Nevada City Hosts initiative themselves, instead of putting it before voters.
  • November 24, 2015: The Nevada City Neighbors petition for the Measure Y initiative was certified as valid and sufficient by the Nevada County elections office.
  • December 9, 2015: Nevada City Council voted to put the Nevada City Neighbors initiative before voters as Measure Y instead of enacting it themselves.
  • June 7, 2016: Election Date

City-council approved initiative

To get the initiative allowing short-term rentals before the city council, petitioners needed signatures from 10 percent of the city's registered voters, which amounted to about to a requirement of about 211 valid signatures. In mid-September 2015, the group Nevada City Hosts submitted about 319 signatures, and the Nevada County elections office found 264 of them to be valid. Thus, the initiative went before the city council, which had the option of approving the initiative themselves or passing it on to the voters. The city council voted 3-2 to enact the measure.[8]

Measure Y petition

To qualify Measure Y for the ballot, members of Nevada City Neighbors also needed signatures from 10 percent of the city's registered voters, which amounted to the same requirement of 211 valid signatures. On October 9, 2015, the Nevada City Neighbors group submitted its "intent to circulate" for its initiative. After the group collected about 306 signatures, and the petition was certified as valid and sufficient on November 24, 2015, the city council voted to put it before voters on June 7, 2016, as Measure Y instead of enacting it directly.[8]

Related measures

2016

  • Proposition C: San Francisco Affordable Housing Requirements Charter Amendment (June 2016) Approveda
  • Proposition M: San Francisco Housing and Development Commission Establishment Amendment Defeatedd
  • Proposition P: San Francisco Minimum Three-Proposal Requirement for Affordable Housing Projects on City Property Defeatedd
  • Proposition U: San Francisco Income Qualifications for Affordable Housing Defeatedd
  • Measure M: San Diego Increase in Affordable Housing Approveda
  • Measure T: Encinitas Compliance with State Housing Law Defeatedd
  • Measure A: Santa Clara County Affordable Housing Bonds Approveda
  • Measure L: Richmond Rent Control Approveda
  • Measure M: Richmond Real Estate Transfer Tax Defeatedd
  • Measure R: Burlingame Rent Control Defeatedd
  • Measure JJJ: Los Angeles Affordable Housing and Labor Standards Initiative Approveda
  • Measure A1: Alameda County Affordable Housing Bond Issue Approveda
  • Measure AA: Berkeley Owner Move-In Eviction Changes Approveda
  • Measure O: Eureka Low Income Housing Limits Approveda
  • Measure V: Mobile Home Rent Stabilization Approveda
  • Measure R: Growth Management Ordinance Defeatedd
  • Affordable Housing Construction: Chicago Approveda
  • Measure Z1: Berkeley Additional Low-Rent Housing Allowance Approveda
  • Measure K: Tuolumne County Authorization for Development of Rental Housing Approveda
  • 2015

  • City of San Francisco Housing Bond Issue, Proposition A (November 2015) Approveda
  • City of San Francisco Initiative to Restrict Short-Term Rentals, Proposition F (November 2015) Defeatedd
  • City of San Francisco Mission District Housing Moratorium Initiative, Proposition I (November 2015) Defeatedd
  • City of San Francisco Mission Rock Development Initiative, Proposition D (November 2015) Approveda
  • City of San Francisco Housing Development on Surplus Public Lands, Proposition K (November 2015) Approveda
  • Town of Mammoth Lakes Voter Approval of Short-Term Rental Zoning Initiative, Measure Z (October 2015) Approveda
  • City of Tracy Active Adult Residential Allotment Program, Measure K (December 2015) Approveda

    Recent news

    The link below is to the most recent stories in a Google news search for the terms Nevada City short-term rental initiative Measure Y. These results are automatically generated from Google. Ballotpedia does not curate or endorse these articles.

    See also

    External links

    Support

    Opposition

    Footnotes