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City Responds to STRA Questions Regarding Lottery

Ahead of the new short-term rental ordinance which is set to go into effect this fall, we know there still are a number of questions surrounding the implementation process. Several weeks ago, we submitted a list of questions to the City. This week, we received a response. Continue reading for a full list of the questions along with the City’s response to each one.

  1. How should operators with multiple dwelling units on one parcel apply for each of those units?
    “A host may only hold one license at a time and a host may not operate more than one dwelling unit for short-term residential occupancy at a time within the City of San Diego; regardless of how many dwelling units are on one parcel. The STRO Ordinance defines a host as a natural person who has the legal right to occupy the dwelling unit and to allow short-term residential occupancy. A host may include the owner or a lessee if the lease allows for subleasing for less than one month.”
  1. Will that be a different process than that of operators with multiple dwelling units on multiple parcels?
    “See response above.”
  1. Can multiple individuals apply for the same permit on the same dwelling unit?
    “No, only one completed and accurate application per dwelling unit will be considered for a license, regardless of the Tier.”
  1. Can one individual apply for multiple permits on multiple dwelling units?
    “See response to number 1 above. Additionally, only one completed and accurate application per dwelling unit will be considered for a license, regardless of the Tier.”
  1. Will dwelling units in underlying commercial zones be treated any differently than dwelling units in underlying multifamily residential zones?
    “No, the ordinance applies to all dwelling units used for short-term residential occupancy in the City of San Diego regardless of base zoning designation.”
  1. Will dwelling units in underlying single-family residential zones be treated any differently?
    “No, the ordinance applies to all dwelling units used for short-term residential occupancy in the City of San Diego regardless of base zoning designation.”
  1. Can one apply for a permit in the name of an LLC, Corporation or Trust?
    “No, a host is defined as a natural person who has the legal right to occupy the dwelling unit and to allow short-term residential occupancy. A host may include the owner or a lessee if the lease allows for subleasing for less than on month. A host may only hold one license at a time, and a host may not operate more than one dwelling unit for STRO at a time within the City of San Diego.”
  1. Can a person under the age of 18 apply for a permit?
    “The Ordinance does not speak to this directly; however, a host is defined as a natural person who has the legal right to occupy the dwelling unit and to allow short-term residential occupancy.”
  1. Will permits be removed from hosts who do not engage in STR activity after obtaining their permit? If so, under what parameters will these be measured?
    “Yes, see section 510.0107 of the Ordinance. This section lays out the requirements for the host including the requirement to use the license in accordance with the ordinance. For example, for a Tier 3 or Tier 4 license, the host is required to use the license a minimum of 90 days each year during the term of the license. Failure to comply with this or any section of the Ordinance could result in remedies outlined in the San Diego Municipal Code including license revocation (see section 510.0109 of the Ordinance).”
  1. After the lottery is complete and permits are issued, will there be a list of applicants who were not issued a license? If so, will these applicants be prioritized for future permits? Will a waiting list be created?
    “All eligible applicants that did not receive a license as part of the lottery process, will be placed on a waiting list. On a quarterly basis, a review will be conducted to determine if additional licenses have become available (cancelled by host, revocation, etc.). If licenses are available, an additional lottery may be conducted following the lottery process.”
  1. What census data the city is using to determine the number of households, and how often it will be updated to adjust the number of available licenses?
    “Per sections 510.0103(d)(4) and 510.0103(e)(4), the number of Tier 3 and Tier 4 licenses available are limited and based on a set percentage of total housing units using SANDAG’s Demographic and Socioeconomic Housing estimates rounded up to the nearest whole number. The number of available licenses will be updated at least every two (2) years following the release of SANDAG’s housing estimates and will not be reduced below the total number of Tier 3 and Tier 4 licenses available in the prior two-year period.”
  1. When a license becomes available after the cap is met, how soon does that license pass to the next in line?
    “On a quarterly basis, a review will be conducted to determine if additional licenses have become available (cancelled by host, revocation, etc.). If licenses are available, an additional lottery may be conducted following the lottery process.”

For Additional Information:

If you have additional questions or need more information, the City encourages those be sent to stro@sandiego.gov. Please let us know if you glean any helpful information.

You can also sign up for City STR updates here >>