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Palm Springs, California, Measure C, Short-Term Rental Restrictions Initiative (June 2018)

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Local ballot measure elections in 2018
Measure C: Palm Springs Short-Term Rental Restrictions Initiative
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The basics
Election date:
June 5, 2018
Status:
Defeatedd Defeated
Topic:
Local property
Related articles
Local property on the ballot
June 5, 2018 ballot measures in California
Riverside County, California ballot measures
Local business regulation on the ballot
Local zoning, land use and development on the ballot
See also
Palm Springs, California

An initiative to amend Ordinance 1918, the Palm Springs short-term vacation rentals ordinance, was on the ballot for voters in Palm Springs, California, on June 5, 2018. The initiative was designed to prohibit vacation rentals of less than 28 days in residential neighborhoods unless the owner is present.[1] It was defeated.

A yes vote was a vote in favor of prohibiting short-term rentals of less than 28 days in residential neighborhoods when the property owner is not present and giving short-term rental owners two years to bring their businesses into compliance or to relocate their businesses.
A no vote was a vote against of prohibiting short-term rentals of less than 28 days in residential neighborhoods when the property owner is not present.

Election results

Palm Springs Measure C

Result Votes Percentage
Yes 4,539 29.94%

Defeated No

10,619 70.06%
Results are officially certified.
Source


Text of measure

Full text

Read the full text of the measure here.

Background

Palm Springs first adopted the Palm Springs Vacation Rental Ordinance, Ordinance 1918, in 2008. The ordinance required short-term rental owners to obtain a permit from the city and a signed contract from guests, to collect a transient occupancy tax (TOT), and to adhere to occupancy limits.[2] Short-term rentals and vacation rentals refer to rentals of less than 28 days for which the owner is not present on the property. The ordinance has gone through several revisions. In 2016, a group in favor of vacation rentals in the city, Citizens for a Better Palm Springs, collected the necessary signatures for a petition to change the existing ordinance. However, the city council amended Ordinance 1918, and the initiative did not go before voters. In February 2017, the city council extended a temporary moratorium on new vacation rental permits for 10 months and 15 days. In March 2017, the council implemented its new changes to Ordinance 1918, limiting owners to 32 contracts per year and two occupants per bedroom. The city also further enforced permit laws, but the council maintained the ordinance's provision to allow short-term rentals in single-family residences.[3]

Impact report

Tourism consulting company Tourism Economics conducted an impact report on the short-term rentals initiative. The group stated in the report that Palm Springs could lose 1,158 jobs with the approval of the initiative due to a decrease in visitors to the city. The group also stated that the local economy could face $35.9 million in annual income loss, while the city could see a $9.6 million decrease in tax revenue.[4]

Council member J.R. Roberts argued that the estimates in the impact report were skewed because they did not account for short-term rentals that could be replaced by long-term rentals or rentals with the owner present. Council member Geoff Kors stated that he was concerned about the loss of money the city could face.[5]

Support

PSN4N campaign logo

Proponents

Palm Springs Neighbors for Neighborhoods led the campaign in favor of Measure C. The group described itself on its website as "a Primarily Formed Committee whose purpose is to place and pass a ballot initiative in an upcoming election in 2018. We are a grassroots organization composed of Palm Springs full-time, part-time and former residents who have watched our neighborhoods be taken over by commercial businesses in direct violation of the zoning protections to which we are entitled."[6]

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

  • Stephen Rose
  • Jim R. Rutledge
  • Roxann Ploss
  • Lanny Seese, M.D.
  • Glenn E. Flood

Arguments

The following official argument was filed in favor of Measure C:[7]

Palm Springs is a city out of balance. Short-term rentals (STRs) dominate many neighborhoods while our quality-of-life suffers. Many of us live on blocks overrun by these STRs, with fewer and fewer neighbors. Conversions of private homes into unsupervised hotels conflicts with our residential zoning code. City records indicate that over 80% of vacation rental owners neither live nor vote here. For them, our neighborhoods are strictly cash registers. Our affordable neighborhoods have become gold-mines for out of town investors. Everyone deserves a safe and secure place to call home. That's what neighborhoods are intended for. Using our single-family homes as commercial lodging deprives us of this right.

According to the City, 467,000 tourists stayed in STRs last year, in neighborhoods built to house about 28,000 residents. This alarming number affects all of us and it's on the rise. Residential neighborhoods should never be used to generate business tax revenue. Our city continues to build new hotels — lost tax revenue should come from these hotels and not from our neighborhoods. Dozens of cities limit STRs and are doing just fine. They have experienced no decline in home values. Your YES vote means that some homes once used as STRs will be rented longer-term and some will be sold. All will be filled with residents that make up a neighborhood, a community.

Measure C:

  • Phases out short-term vacation rentals less than 28 days a stay, in single-family neighborhoods, zoned R-I, over two years.
  • Allows long-term and seasonal rentals of 28+ days. Up to 12 times a year.
  • Allows home-sharing when the owner is present.
  • Allows short-term rentals of condos, if the HOA permits them.

Save our Neighborhoods. Vote Yes on C.[8]

—Official Argument in Favor of Measure C

Opposition

We Love Palm Springs campaign logo

Opponents

We Love Palm Springs - No on Measure C led the campaign in opposition to Measure C. The group stated on its website, "We Love Palm Springs is a coalition of those who believe that Palm Springs should welcome tourists and appreciate the benefits they bring to our city. We are your neighbors, friends and family. We are homeowners, pool cleaning companies, landscapers and gardeners; we are the hotel industry, small businesses; the owners of your favorite restaurants and community leaders."[9]

The following individuals signed the official argument in opposition to Measure C:[10]

  • Geoff Kors, council member
  • Lisa Middleton, council member
  • J.R. Roberts, mayor pro tem
  • Robert Moon, mayor

Arguments

The following official argument was filed in opposition to Measure C:[10]

Vacation rental tourists contribute over $150 million to our economy and provide over 1,000 local jobs, bringing in nearly $10 million in tax revenue. Vacation rentals provide full-time residents the right and opportunity to supplement their income and can be a means for part-time residents to own a second home in Palm Springs.

Vacation rentals improve property values! Palm Springs is the only Coachella Valley city to experience a full post-recession recovery in home prices. This poorly-drafted and confusing ballot measure, brought by a special interest group, will result in the loss of millions of dollars in taxes paid by tourists, necessitating substantial cuts to vital City services and programs.

A prohibition limiting your right to vacation rentals would eliminate close to 85% of all vacation rentals and will result in a substantial decrease in property values.

Enforcement works! The City's current vacation rental enforcement program has resulted in a 39% decrease in calls to the hotline, a 90% decrease in police calls and the shutdown of 65 problem homes.

Bans don't work! When cities ban vacation rentals, they continue illegally with no resources for enforcement.

This extreme ballot measure will have negative consequences. It will reduce property values, hurt small businesses and significantly reduce City revenues.

Palm Springs is experiencing a renaissance including new stores, restaurants and attractions.

We've paved 75 miles of streets and added 12 new public safety personnel.

Why would we undermine our new-found prosperity with a special interest ballot measure?

Please join: The Palm Springs City Council

Palm Springs Police Officers' Association

Palm Springs Professional Firefighters

Palm Springs Chamber of Commerce

Palm Springs Regional Association of Realtors

Agua Caliente Band of Cahuilla Indians

Palm Springs Hospitality Association

PS Resorts[8]

—Official Argument in Opposition to Measure C

Path to the ballot

See also: Laws governing local ballot measures in California

In November 2017, the group Palm Springs Neighbors for Neighborhoods (PSN4N) submitted a petition to limit short-term rentals in the city of Palm Springs. The initiative was designed to maintain existing laws that prohibit short-term rentals in apartments but not in condominiums and to introduce a prohibition on short-term rentals in single-family residences in R-1 zoned neighborhoods. The group needed to collect 3,786 valid signatures—the equivalent of 15 percent of registered voters in the city. On January 3, 2018, the Riverside County clerk verified that PSN4N had gathered 4,601 valid signatures, allowing the initiative to go before the city council.[1][11]

On January 24, 2018, the Palm Springs City Council voted 4-0, with member Christy Holstege recusing herself, to order a report on the initiative's potential impact on property values and housing availability. The council set a date of February 21, 2018, to begin review of the report.[12]

Following review, the city council had the choice to place the initiative on the ballot in June 2018 or to wait until November 2019. The council voted 4-0, with Christy Holstege recusing herself, to place the initiative on the ballot for June 5, 2018. [5]

See also

External links

Support

Opposition

Footnotes