Title
REF250042 [COASTAL] & REF250043 [INLAND] - AMENDED VACATION RENTAL ORDINANCES
Public Hearing to consider a recommendation to the Board of Supervisors to consider an Addendum, together with the Final Environmental Impact Report (SCH # 2022080643), adopt an ordinance amending Title 7 of Monterey County Code to amend Section 7.02.060 and amend Chapter 7.120 - Regulations for Vacation Rentals, adopt a resolution of intent to adopt an ordinance amending Title 20 of the Monterey County Code (coastal) to amend Section 20.64.290 - Regulations for Vacation Rentals, and adopt an ordinance amending Title 21 of the Monterey County Code (inland) to amend Section 21.64.290 - Regulations for Vacation Rentals.
Project Location: Countywide
Proposed CEQA action: Consider an Addendum, together with the Final Environmental Impact Report (SCH # 2022080643) for the Monterey County Vacation Rental Ordinances Project (Resolution No. 24-355) pursuant to CEQA Guidelines Section 15164.
Body
RECOMMENDATION:
It is recommended that the Planning Commission adopt a resolution recommending that the Board of Supervisors:
a. Consider an Addendum, together with the Final Environmental Impact Report (SCH # 2022080643) for the Monterey County Vacation Rental Ordinances Project (Resolution No. 24-355) pursuant to CEQA Guidelines Section 15164;
b. Adopt an ordinance amending Title 7 of Monterey County Code to amend Section 7.02.060 and amend Chapter 7.120 - Regulations for Vacation Rentals (Attachment 1)
c. Adopt a resolution of intent to adopt an ordinance amending Title 20 of the Monterey County Code (coastal) to amend Section 20.64.290 - Regulations for Vacation Rentals (Attachment 2); and
d. Adopt an ordinance amending Title 21 of the Monterey County Code (inland) to amend Section 21.64.290 - Regulations for Vacation Rentals (Attachment 3).
PROJECT INFORMATION:
Planning File Number: REF250042 & REF250043
Project Location: Countywide
Plan Area: Big Sur Land Use Plan, Cachagua Area Plan, Carmel Area Land Use Plan, Carmel Valley Master Plan, Central Salinas Valley Area Plan, Del Monte Forest Land Use Plan, Greater Monterey Peninsula Area Plan, Greater Salinas Area Plan, North County Area Plan, North County Land Use Plan, South County Area Plan, and Toro Area Plan.
SUMMARY:
In 2024 and 2025, the County adopted ordinances amending Title 7, Title 20 (Coastal Zoning), and Title 21 (Inland Zoning) of the Monterey County Code to regulate vacation rentals in unincorporated Monterey County, collectively referred to as the “approved ordinances” or “approved regulations”. The approved ordinances are operative and timelines for unpermitted vacation rental operations to come into compliance past. On January 6, 2026, the Board of Supervisors conducted a public workshop regarding the vacation rental regulations, and directed staff to develop ordinances to: 1) address two provisions of the original ordinances that have been legally challenged; 2) prohibit vacation rentals in residential zoning districts except those with commercial agricultural operations; 3) maintain that unique neighborhoods with existing developments established with the intent of allowing managed short-term or transient rentals such as Monterey Dunes Colony are exempt from the regulations; and 4) providing for a ministerial approval process for vacation rentals on lands with agricultural operations.
The draft ordinances would amend Title 7, Title 20, and Title 21 of the Monterey County Code to implement the Board’s direction. Collectively these draft ordinances are referred to as the “amended vacation rental ordinances” or “amended ordinances”, and they would amend Monterey County Code Title 7 (Business Taxes, Licenses, and Regulations) Section 7.02.060 and Chapter 7.120, amend Title 20 (Coastal Zoning Ordinance) definition and zoning use sections and Section 20.64.290, and amend Title 21 (Inland Zoning Ordinance) definition and zoning use sections and Section 21.64.290 to regulate vacation rentals in unincorporated Monterey County.
The proposed Amended Vacation Rental Ordinances would modify a number of key provisions of the County’s approved vacation rental ordinances including:
a. Prohibit vacation rentals in all residential zoning districts, except as may be accessory to an agricultural use and a vetted commercial agricultural operation.
i. Carmel Valley - Would allow vacation rentals in rural density residential zoning district.
b. Delete homestay, limited vacation rental, and commercial vacation rental types, and distinguish between vacation rentals that are hosted and/or non-hosted.
i. Big Sur - Would allow only hosted vacation rentals.
c. Allow vacation rentals as an allowed use without discretionary permits in commercial, visitor serving, and agricultural zones, and as an accessory use to a commercial agricultural operation.
The amended ordinances would also include minor edits and revisions to certain provisions including: clarifying definitions; adding agricultural definitions and evidence requirement for commercial agriculture; adding amortization of investment and phase out provisions for vacation rentals permitting or pending decision under the current vacation rental regulations; establishing occupancy limits based on building, health and safety laws; prohibiting events unless approved with a separate entitlement. The amended ordinances further modify regulations and add enforcement provisions for hosting platforms to include: requirements to disclose URL and License numbers for listings; clarify timing for when License numbers must be included with a listing; civil penalties of up to $1,000 per day per violation; and ability for County to serve administrative subpoenas. See Exhibits D, E and F for the redlined versions of the draft ordinances.
Staff seeks the Commission’s recommendation of the final draft ordinances to the Board of Supervisors. Staff prepared a draft resolution (Exhibit A) to memorialize the Commission’s recommendation to the Board. The draft ordinances are attached to the draft Commission resolution (Attachments 1, 2, and 3 to Exhibit A). An Addendum to the Final Environmental Impact Report was prepared, which identifies that. The Addendum is included as Exhibit C.
CEQA:
Following Section 15164 of the California Environmental Quality Act (CEQA) Guidelines, an Addendum was prepared to identify minor modifications and clarifications to the County’s vacation rental regulations through the proposed amended ordinances. Staff reviewed the Monterey County Vacation Rental Ordinance Project EIR and the proposed Amended Vacation Rental Ordinances for consistency with the environmental considerations contained within. The County has considered the proposed amendments (REF250042/REF250043) and determined the scope does not alter the conclusions of the certified EIR for the Monterey County Vacation Rental Ordinance Project. Based on review of the proposed amended ordinances and EIR, no other potentially significant issues were identified for the proposed ordinances and implementation of the proposed amended vacation rental ordinances do not change the overall potential impacts as they remain no impact or less than significant impact. The proposed amended ordinances do not alter the analysis or conclusions reached by the previous environmental document. See Exhibit C for additional information.
DISCUSSION:
Exhibit B - Detailed Discussion.
OTHER AGENCY INVOLVEMENT
HCD staff are working in collaboration with the Treasurer-Tax Collector’s Office, County of Monterey Environmental Health, and Agricultural Commissioner’s Office to develop the amended ordinances and with the Office of County Counsel to review as to form.
Prepared by and Approved by: Melanie Beretti, AICP, Chief of Planning, 831-755-5285
EXHIBITS
Exhibit A - Draft Resolution, including:
• Attachment 1 - Title 7 amendment to Chapter 7.02.060 and amendment to Chapter 7.120 of Regulations for Vacation Rental Operation License
• Attachment 2 - Title 20 amendment to Coastal Zoning Ordinance Regulations for Vacation Rentals in the Coastal Zone
• Attachment 3 - Title 21 amendment to Inland Zoning Ordinance Regulations for Vacation Rentals in the Non-coastal Zone
Exhibit B - Detailed Discussion
Exhibit C - Addendum to the Final Environmental Impact Report
Exhibit D - Redlined - Title 7 amendment to Chapter 7.02.060 and amendment to Chapter 7.120 of Regulations for Vacation Rental Operation License
Exhibit E - Redlined - Title 20 amendment to Coastal Zoning Ordinance Regulations for Vacation Rentals in the Coastal Zone
Exhibit F - Redlined - Title 21 amendment to Inland Zoning Ordinance Regulations for Vacation Rentals in the Non-coastal Zone
cc: Front Counter Copy; Vacation Rental Public Distribution List; County of Monterey Treasurer-Tax Collector; Monterey County Regional Fire; County of Monterey Health Department Environmental Health Bureau; California Coastal Commission; Monterey County LandWatch; Keep Big Sur Wild; Monterey County Agricultural Commissioner’s Office; Liz Gonzales, Permit Center Manager; Sarah Wike, Principal Planner; Fionna Jensen, Principal Planner; Jacquelyn Nickerson, Principal Planner; Stacy Giles, Permit Technician III; Karen Riley-Olms, Management Analyst II; Josh Bowling, Chief of Building Services; Evan Nuckles, HCD Building Services Manager; Craig Spencer, HCD Director; Project Files REF250042 and REF250043.