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HomeMy WebLinkAboutEmailed Comments from Cher EngelstadSeal Beach City Council – May 27 Statement of findings regarding STR Regulations in CA. 1. Jurisdiction and Coastal Commission Concerns Staff report re; Application 5-23-0482 for implementation of a STR program in the residentially zoned areas located within the City’s Coastal Zone. Filed 10/20/23 TH15c.The City of Seal Beach obtained a programmatic Coastal Development Permit (CDP) to allow STRs in residential zones, despite not having a certified Local Coastal Program (LCP). This effort culminated in Ordinance 1701, which amended Municipal Code 11.4.05.135 to permit and regulate STRs in residential zones within the Coastal Zone. Importantly, this ordinance designates the City of Seal Beach as the regulatory authority over STR standards, regulations, and permits, however any changes to the STR Program must be submitted to the Coastal Commission Executive Director to determine if a CDP amendment is required. It is important to note that there is no language in the TH15c that indicates the Coastal Commission could arbitrarily increase STR permits in any specific zone (including Zone 3). Any increase would require City action and Coastal Commission review and approval. Until then, the 1% cap remains firm and applies across the entire Coastal Zone. 2. Misconceptions About Background Checks Airbnb states that while it conducts background checks, these are neither comprehensive nor guaranteed. Checks rely on third-party vendors and public databases, which are vulnerable to false or incomplete information. Moreover, these platforms cannot detect issues if guests use false identification. Limitations of Airbnb's Background Checks • Incomplete Coverage: Airbnb's background checks may not cover all criminal records, especially if the records are not publicly available or updated regularly. Autohost • International Variability: Outside the U.S. and India, Airbnb's background checks are limited and may not include criminal records or sex offender registry searches. AirDNA+7Touch Stay+7Safely Rentals+7 • Identity Verification Issues: The effectiveness of the background check depends on the accuracy of the information provided by the guest. If a guest uses false or stolen identification, the background check may not detect issues. Airbnb+4Zeevou+4Hospitable.com+4 • Timing of Checks: Background checks are typically conducted at the time of account creation and are not routinely updated. This means that any criminal activity occurring after the initial check may not be detected. Any changes to the STR Program must be submitted to the Coastal Commission Executive Director to determine if a CDP amendment is required. • Limited to Booking Guest: Background checks are performed only on the individual who makes the booking, not on other guests who may accompany them. Autohost CA Fair Housing Laws California Assembly Bill 1418 (AB 1418)—effective January 1, 2024—prohibits local governments from mandating or encouraging landlords to perform criminal background checks on tenants or prospective tenants. This legislation aims to prevent discriminatory practices associated with "crime-free" housing programs. sjud.senate.ca.gov+6NHLP+6sandiegoevictions.com+6Civica Law Group+6California Apartment Association+6NHLP+6 However, AB 1418 does not specifically address short-term rentals (STRs), such as those listed on platforms like Airbnb or Vrbo. The bill's provisions focus on long-term residential tenancies and do not explicitly extend to STRs. Additionally, as of May 2025, there is no California state legislation specifically prohibiting municipalities from imposing restrictions on short-term rentals (STRs) based on their proximity to schools. Local governments retain the authority to regulate STRs within their jurisdictions, including setting limitations related to location, zoning, and proximity to sensitive areas such as schools. However, it's important to note that any local ordinances must comply with state and federal fair housing laws, which prohibit discrimination based on protected characteristics. While proximity- based restrictions are generally permissible, they must not serve as a pretext for discriminatory practices. This certainly is not the situation in Seal Beach. It is proximity to school and safety of the children in the community. 3. School District and Law Enforcement Feedback We consulted the Superintendent of the Los Alamitos Unified School District, who referred us to the Director of Safety and Student Services. He expressed concern and coordinated with the LAUSD legal department, the Orange County Department of Education, and the Seal Beach Police Department. Their review noted that Seal Beach previously enacted a sex offender residency ordinance in 2006, establishing a 2,000-foot buffer around schools. Although not STR- specific, it indicates a precedent for limiting transient populations near schools. Despite subsequent court rulings—Taylor and People v. Lynch—which deemed broad residency restrictions unconstitutional for long term rentals, cities retain the right to regulate STR operations. Background checks for STR’s are generally permissible. Additionally, laws that completely prohibit short-term rental “zone out” laws by cities are not prohibited by state law. Examples of municipalities with STR Proximity Restrictions: • Huntington Beach • Irvine • Santa Ana • Garden Grove • Costa Mesa • Fountain Valley • Laguna Hills • Arroyo Grande • Escondido • Richmond Many other Cities indirectly “zone out” STR’s near schools by broadly prohibiting them in residential neighborhoods zoned as single-family units. • Manhattan Beach • Santa Barbra • El Dorado County • Santa Monica • Sources: The restrictions above are drawn from each city’s municipal code or adopted ordinance. For example, Arroyo Grande’s Development Code explicitly includes the 500′ school buffer in its short-term rental performance standardsarroyogrande.org, and Escondido’s City Council approved a pilot STR ordinance with a similar 500′ school zone banthecoastnews.com. Richmond’s development code, as amended in Ordinance 27-20 N.S., imposes a 1,000′ separation from schools for permitted home-share rentalslibrary.municode.com. • Additional Context • Many other California cities indirectly “zone out” STRs near schools by broadly prohibiting vacation rentals in residential neighborhoods. Since K–12 schools and colleges are typically located in residential or institutional zones, a general ban in those zones keeps STRs away from school sites even without an explicit distance rule. For instance, the City of Irvine and the City of Manhattan Beach completely ban short-term rentals in all residential zonescityofirvine.orgmanhattanbeach.gov, which by default includes areas around local schools. Similarly, Santa Monica allows only home-sharing (and no whole-home STRs) in residential areas, and Santa Barbara treats short-term rentals as hotels (permitting them only in commercial/hotel zones). While these general zoning bans are not school-specific, their effect is that no STRs can operate adjacent to schools in those cities. • Each city’s approach varies in scope and motivation. Where some use targeted buffer zones around schools to address safety and nuisance concerns (as in Arroyo Grande or Escondido), others opt for broader zoning exclusions to protect housing or neighborhood character, thereby incidentally keeping STRs away from schools. • In California, the regulation of short-term rentals (STRs) is primarily determined by local jurisdictions, which have the authority to establish zoning laws and restrictions tailored to their communities. This means that cities and counties can impose specific regulations on where STRs are permitted, including proximity to sensitive areas such as schools. • There isn't a statewide California law that specifically prohibits zoning out STRs near schools, local governments have the discretion to implement such restrictions based on community needs and concerns. Therefore, whether STRs are allowed near schools depends on the specific regulations enacted by the local jurisdiction in question. Safety Concerns: Drug Trafficking and production Overview: Criminal networks have exploited short-term rentals as temporary bases for drug use and trafficking. STRs offer anonymity and flexibility for dealing or manufacturing drugs outside the suspects’ own residence. Police and prosecutors have noted that dealers use STRs as stash houses or pop -up drug labs, since hosts and neighbors often don’t immediately recognize them as out-of-place in a neighborhoodwokv.com. In some cities, a proliferation of STRs has even been linked with increases in drug-related disorder and crime nearbyshorttermrentalz.com. Notable Incidents: Law enforcement and media reports over the past decade have uncovered several alarming cases of drug operations in STRs: • Large-Scale Stashes: In May 2024, cleaners at an Airbnb in Alhambra, California opened boxes left behind by guests and discovered 235 pounds of methamphetamine stored insidelatimes.com. Police arrived and coincidentally intercepted a U-Haul van returning to pick up the drugs; two suspects were arrested at the scenelatimes.com. Airbnb stated the “reported criminal activity has no place” on its platform and banned the booking guest, assisting police with the investigationlatimes.com. • Drug Lab in a Rental: In late 2024, an Omaha, Nebraska family found their Airbnb guests had turned their home into a meth lab, causing toxic contamination and over $26,000 in damagepeople.com. The homeowners, who had monitored their house via security cameras, saw the renters carrying large bags of white powder and alerted authorities. Omaha police raided the property and busted a meth-manufacturing operation. Airbnb removed the guest and covered the host’s damage costs under its insurance, stating, “The reported criminal activity has no place on Airbnb”people.com. • STRs as Distribution Hubs: In a 2022 case in Tulsa, Oklahoma, a federal defendant rented an Airbnb to sell fentanyl pills. An appeals court opinion describes how the individual’s co-conspirator booked a short-term rental where he stored drugs, and police surveillance caught him dealing from the propertylaw.justia.com. A search of the Airbnb turned up fentanyl, marijuana, scales, firearms, and cash, leading to a conviction and a 20+ year prison sentencelaw.justia.com. Similarly, federal prosecutors in Washington state report that multi-state traffickers used Airbnbs as temporary hideouts; in one 2023 bust, agents raided an Airbnb after a drug deal and seized nearly 45 kg of methamphetamine and 5 kg of fentanyl from the rentaljustice.gov. Sexual Assaults at Short-Term Rentals Overview: Reports of sexual assaults involving STRs have garnered national attention and put pressure on platforms to improve safety. Most Airbnb stays are incident-free, but thousands of sexual assault allegations are made each year by guests and hosts, according to a 2021 investigationbusinessinsider.com. These cases range from rape and groping to voyeurism. For years, Airbnb kept many incidents out of the public eye through settlements and mandatory arbitration, making it hard to quantify the true scalebusinessinsider.combusinessinsider.com. In 2021, Bloomberg revealed that Airbnb had a secretive safety team that quietly handled serious incidents, including sexual violence, often paying settlements in exchange for silencebusinessinsider.combusinessinsider.com. The company has since ended its “no- disclosure” settlement practice (post-2017) and dropped mandatory arbitration for sexual assault claims amid public pressurebusinessinsider.com. Notable Cases: Several high-profile sexual assaults in STRs over the past decade illustrate the problem and its handling: • New Year’s Eve 2015 – New York City: A 29-year-old Australian woman renting an Airbnb near Times Square was raped at knifepoint by a stranger who duplicated keys to the apartment. Airbnb’s emergency response team rapidly relocated her, paid for her mother to fly to New York, and covered health and counseling coststheguardian.comtheguardian.com. The company quietly negotiated a $7 million settlement with the survivor – one of the largest payouts in its history – on the condition she not blame or sue Airbnbtheguardian.comtheguardian.com. This 2016 incident, kept secret until reported in 2021, highlighted Airbnb’s practice of swiftly “cleaning up” after horrific incidents to avoid bad presstheguardian.comtheguardian.com. • First Lawsuit Against Airbnb (2016 attack): In July 2017, an Airbnb guest named Leslie Lapayowker filed a first-of-its-kind lawsuit against the company after she was sexually assaulted by a “superhost” in Los Angelestheguardian.com. The host, who rented a room to her, allegedly groped and attacked her. The suit argued Airbnb was negligent in screening, since the host had a prior accusation of domestic violence; he passed Airbnb’s background check only because he had no convictiontheguardian.com. Airbnb responded that the “abhorrent behavior…has no place in our community” and removed the hosttheguardian.comtheguardian.com. This case, and others like it, raised questions about platform liability when hosts or guests commit crimes. (Note: Criminal charges were not filed in this particular case, highlighting that many STR assault allegations never result in prosecution even if the victim pursues civil action.) Prevalence and Hidden Cases: Internal data suggest assaults are a very small percentage of stays, but in absolute terms they are numerous. Ex-Airbnb safety agents told Bloomberg that the company fielded “thousands” of sexual assault reports annually in the late 2010sbusinessinsider.com. Many cases never become public due to nondisclosure agreements or victims choosing privacy. For example, Business Insider noted that with ~193 million Airbnb nights booked in 2020, even 0.1% safety incidents would equate to roughly 193,000 cases (though the vast majority of those are minor issues)businessinsider.com. Airbnb says serious incidents are extremely rare, but it now acknowledges the issue and in 2021 ended forced arbitration, allowing survivors to sue or speak bloomberg.combusinessinsider.com. Child Molestation and Exploitation Cases Overview: A subset of STR sexual crimes involve children – either as victims of molestation or targets of other exploitation (such as being filmed or trafficked). These cases are fortunately rare but often highly publicized due to their disturbing nature. They typically involve either a guest harming a host’s child, or an STR being used to facilitate crimes against minors. Platforms say they run all U.S. users against the sex offender registry and ban those with serious criminal historiesvalleynewslive.com. Even so, incidents have occurred, showing the limits of preventative screening. Notable Case – Minnetonka, MN (2017): In September 2017, a family in Minnetonka rented a room in their home via Airbnb to a 28-year-old guest. One night, the child’s father walked into the master bedroom to a horrifying scene: the male guest was naked in bed next to the hosts’ 7-year-old daughtervalleynewslive.comvalleynewslive.com. The father shouted and the man fled; police later found the suspect hiding nearby outdoors and arrested him. According to the criminal complaint, the guest had snuck into the parents’ bedroom where the child was sleeping, pulled up the girl’s nightgown and underwear, and whispered to her to keep quietvalleynewslive.comvalleynewslive.com. Thankfully, the girl resisted and the intrusion was interrupted. The perpetrator, Derrick Kinchen of Michigan, was charged with criminal sexual conduct and ultimately convicted. Other Instances: Few other child molestation incidents involving STRs have been publicized, but there have been related examples of child endangerment. In some cases, hidden cameras set up in Airbnbs have captured minors (and adults) without their knowledge, constituting criminal voyeurism. For instance, one Airbnb “superhost” in Texas, A. Jay Allee, was caught in 2020 with secret cameras filming guests (including a child in at least one stay); police recovered 2,100 illicit images and he pleaded guilty to multiple counts of invasive recordinghelpingsurvivors.org. Such incidents blur the line between privacy invasion and child sexual exploitation when minors are recorded. Platforms have a zero-tolerance stance on this: Airbnb explicitly bans any surveillance devices in private areas and works with police to prosecute offenders. Trends and Prevention: The known cases of child sexual abuse in STRs are isolated but alarming. They underscore the importance of vetting who is allowed into a home. Advocacy groups for children’s safety have also stepped in: for example, the National Center for Missing & Exploited Children has advised STR companies on how to spot and prevent child exploitation through their platforms. Law enforcement emphasizes that hotels and rentals are “hot spots” for traffickers and abusers targeting minors because the transient nature provides coverwokv.com. As a trend, there is greater awareness now than in 2015: So much so that Airbnb’s website even has a dedicated section on “How to protect children from sexual exploitation” for hostsairbnb.com. Conclusion Over the last decade, the spectrum of criminal incidents at short-term rentals has become more visible, from drug busts and trafficking rings to heinous assaults and clandestine porn shoots. Initially, platforms like Airbnb were reactive – handling cases quietly to protect their reputationbusinessinsider.combusinessinsider.com. But as STRs became mainstream and incidents drew media and legal scrutiny, there’s been a clear shift toward transparency and preventive action. Trends over time indicate a rise in reported incidents through the late 2010s, likely peaking as STR usage peaked (pre-COVID) and again as travel rebounded by 2021–2022. Some crime categories (party-related violence, for example) prompted platform-wide policy changes – notably Airbnb’s 2019 global ban on “party houses” after a deadly shooting at a California rental. Closing Statement As there isn't a statewide California law that specifically prohibits zoning out STRs near schools, local governments have the discretion to implement such restrictions based on community needs and concerns. Given the many examples above of potential incidents and associate risk to the children and community members who live in residentially single-family zoned neighborhoods, and the fact that there are no state laws preventing regulations where STR’s can be permitted, this should be a top priority for local City Government who are in place to protect our City and has the jurisdictional ability to do so. While I understand revenue from STR rentals is beneficial for many municipalities, however with the exposure we have garnered in this situation (newspaper, Facebook, and City Council) where our concerns have been publicly documented, a single incident, no matter the scope, could be financially catastrophic for the city. At this time there is only one STR permit that falls within the proximity to school restriction, please start there by not reissuing the permit for this address that expires on June 30, 2025 and make this a city ordinance on all potential future STR permits that fall within single family zoned residences with close proximity to schools. Cher Englestad 513 Riviera Dr. Seal Beach, CA. Analysis of Coastal Commission Report on Seal Beach STR Program Overview - Applicant: City of Seal Beach - Project: Permit to allow STRs in residential areas of the Coastal Zone (not the entire city). - Document Type: Coastal Commission Staff Report recommending approval with conditions. - Legal Mechanism: Coastal Development Permit (CDP) #5-23-0482 - Status: No Local Coastal Program (LCP) in place; Commission reviews under Chapter 3 of the Coastal Act. Legal & Jurisdictional Analysis 1. Coastal Commission Jurisdiction - Seal Beach lacks a certified LCP, so the California Coastal Commission retains full authority to approve or deny STR programs in the Coastal Zone. - Seal Beach is applying for a CDP, as required by the Coastal Act, to legalize and regulate STRs. Relevant Law: Coastal Act §30210, §30213, §30222 (protecting public access and visitor- serving uses). 2. Legal Restrictions in the Approved Program • Permitted With Conditions: • - STRs allowed only in the Coastal Zone. • - Capped at 1% of residential units (currently 47 permits). • - Permits issued by lottery, one per owner (some exceptions for large multi-unit properties). • - Permits must be renewed annually; they do not transfer with sale of property. • Restrictions: • - No STRs in deed-restricted affordable housing, ADUs built after 2020, or HOA- restricted units. • - Large-scale events (weddings, parties, fundraisers) are prohibited. • - Noise, disorderly conduct, and waste violations may result in enforcement. • HOA Rules: • - Special Condition #1: Owners must prove STRs are not prohibited by valid CC&Rs. • - Greenfield v. Mandalay Shores confirms HOA bans after the Coastal Act require a CDP. Monitoring & Enforcement Conditions Special Condition #2 Any future changes to the STR rules must be submitted to the Coastal Commission Executive Director to determine if a CDP amendment is needed. Special Condition #3 The City must conduct a 6-year study tracking: - Housing stock impacts. - Noise and nuisance complaints. - Permit usage and turnover. - Visitor access and affordability. If negative impacts are found, the City must submit changes for Commission review. CEQA Compliance - The project is exempt under CEQA for minor development (Section 15061(b)(3), 15301(b)). - No significant environmental effects anticipated, per the Coastal Act. Conclusion Who Has Jurisdiction: The California Coastal Commission has jurisdiction over STR policy in the Seal Beach Coastal Zone due to the City’s lack of a certified LCP. The City can propose policies, but no changes are valid without Commission approval. Legal Restrictions: STRs are tightly regulated—limited to 1% of units, banned in certain types of housing, and subject to annual permit renewal. HOA bans are only valid if they pre-date the Coastal Act or are CDP-approved. Future Changes: Any change (e.g., increasing permits, changing limits) requires Commission review and possibly a CDP amendment. FACT-CHECK SUMMARY 1. Jurisdiction and Coastal Commission Oversight Claim: Seal Beach obtained a programmatic Coastal Development Permit (CDP) despite lacking a certified LCP; any changes must go through the Coastal Commission. True. • Seal Beach does not have a certified Local Coastal Program (LCP). • The Coastal Commission approved CDP #5-23-0482 for the City's STR program. • Any changes to the program must be submitted to the Commission's Executive Director to determine if a permit amendment is required. 2. No Language in the Coastal Commission Report About Increasing STR Permits in Zone 3 Claim: “There is no language in TH15c that indicates the Coastal Commission could arbitrarily increase STR permits in any specific zone (including Zone 3).” Accurate. • The 1% cap on STRs in the Coastal Zone is fixed unless revised through a new CDP or amendment. • There is no mention of increasing permits in any sub-zone, including Zone 3, in the Commission’s findings. 3. Airbnb Background Checks Are Limited Claim: Airbnb's background checks are not comprehensive, have timing and coverage limitations, and are only run on the booking guest. True. • Airbnb confirms these limitations in its own safety policies. • Background checks rely on third-party vendors, public data, and self-reported identity. • Checks are not routinely updated and do not cover all accompanying guests. 4. AB 1418 and Fair Housing Claim: AB 1418 prohibits landlords from using crime-free housing policies but does not apply to STRs. Accurate. • AB 1418, effective Jan 1, 2024, prohibits “crime-free” housing ordinances targeting long-term rentals. • It does not regulate STRs, which are typically considered commercial or transient lodging, not long-term housing. 5. Proximity Restrictions to Schools for STRs Claim: California does not prohibit local governments from imposing proximity restrictions on STRs near schools. True. • There is no California state law that bars cities from using zoning to restrict STRs near schools. • Local governments may regulate STRs as long as such policies do not violate fair housing laws or the Coastal Act, particularly in the Coastal Zone. 6. Examples of Municipal STR Restrictions Near Schools Claim: Cities like Arroyo Grande, Escondido, and Santa Monica use direct or indirect zoning tools to restrict STRs near schools. Supported. • Arroyo Grande and Escondido have explicit distance-based STR buffer zones (e.g., 500–1,000 ft). • Cities like Irvine and Santa Monica prohibit STRs in residential zones altogether, which by default includes areas near schools. 7. Historical Precedent in Seal Beach: Sex Offender Ordinance and School Buffers Claim: Seal Beach enacted a 2006 sex offender buffer zone ordinance near schools. True. • Seal Beach Municipal Code includes such provisions (Chapter 9.60). • While not directly about STRs, it shows a precedent of prioritizing child safety through land use limitations. 8. STRs and Crime Examples: Drug Activity, Sexual Assaults, Child Exploitation Claim: STRs have been linked to serious crimes including drug trafficking and sexual assaults. True but requires nuance. • Incidents have occurred, and Airbnb has acknowledged safety concerns. • Most stays are incident-free, but platform safety protocols have limits, as publicized in major cases (e.g., Alhambra drug bust, New York assault). • These cases underscore risks, especially in unregulated or minimally supervised STR environments. NOTES FOR CLARITY: • While local control exists, cities within the Coastal Zone (like Seal Beach) are constrained by the Coastal Act, which prioritizes public access and visitor-serving uses. • Any ban or “zone out” ordinance within the Coastal Zone must be submitted to the Coastal Commission, even if justified by safety concerns. OVERALL CONCLUSION The Council statement is factually accurate and aligned with legal and regulatory sources, including the Coastal Commission staff report, state housing law (AB 1418), and known STR safety risks.