Title
a. Conduct a workshop to consider possible amendments to the Monterey County Code (“MCC”) Title 20 (Coastal Zoning Ordinance), Title 21 (Inland Zoning Ordinance) and Title 7 (Business Tax, Licenses and Regulations) to regulate the vacation (or short-term) rental of residential property; and
b. Provide direction to staff.
Project Title: REF250042 (Coastal) and REF250043 (Inland) Vacation Rental Ordinance Amendments
Proposed Location: Countywide
Proposed California Environmental Quality Act (CEQA) action: Find this workshop statutorily exemption pursuant to Section 15262 of the California Environmental Quality Act (“CEQA”) Guidelines.
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RECOMMENDATION:
It is recommended that the Board of Supervisors:
a. Conduct a workshop to consider possible amendments to the Monterey County Code (“MCC”) Title 20 (Coastal Zoning Ordinance), Title 21 (Inland Zoning Ordinance) and Title 7 (Business Tax, Licenses and Regulations) to regulate the vacation (or short-term) rental of residential property; and
b. Provide direction to staff.
SUMMARY/DISCUSSION:
The County adopted regulations for the vacation rental of residential property that became operative in the inland areas on October 14, 2024 and in coastal areas on October 24, 2025. On December 12, 2025, due to a lawsuit challenging the County’s vacation rental ordinances, including homestays (Monterey County Vacation Rental Alliance v. County of Monterey, Monterey County Superior Court Case No. 24CV004922), the County has suspended from permit/license consideration and enforcement, without prejudice, two provisions being challenged and generally related to ownership provisions. This pause will stay in place until such time as the court finishes its analysis and makes an official ruling. Additional information is available at <https://comry.us/VacationRentals>.
Given the action taken, staff will present options to the Board to consider at its January 6, 2026 meeting regarding possible amendments to the Monterey County Code (“MCC”) Title 20 (Coastal Zoning Ordinance), Title 21 (Inland Zoning Ordinance) and Title 7 (Business Tax, Licenses and Regulations) to regulate the vacation rental of residential property, including homestays. Based on Board direction at the meeting, staff anticipates bringing forward ordinances amending the MCC as appropriate for Monterey County Planning Commission consideration of a recommendation on January 28, 2026 or February 11, 2026. Staff could then return to the Board for consideration of ordinances in February or March 2026. Any potential amendments to Title 20 (Coastal Zoning) will require certification by the California Coastal Commission before the regulations would be operative.
ENVIRONMENTAL REVIEW:
Proposed Statutory Exemption
Pursuant to Section 15262 of the CEQA Guidelines, this workshop are statutorily exempt as early discussion on possible future actions that do not involve commitment to a project.
Depending upon the scope of the updates requested by the Board, staff evaluate whether the updates fall within the scope of the certified Final Environmental Impact Report (FEIR) for the Vacation Rental Ordinances (SCH#2022080643).
OTHER AGENCY INVOLVEMENT:
HCD staff will work closely with the Office of County Counsel to develop and review the draft ordinances as to form and legality. The Treasurer-Tax Collector will be consulted depending on nature of amendments proposed.
HOUSING IMPACTS:
_X_Reduces constraints on Housing Development
___Increases constraints on Housing Development
___Neutral
___Not applicable [N/A]
Regulating the use of residential properties for vacation (or short-term) rental uses helps protect the County’s existing housing stock. Staff will qualitatively consider the potential impacts to housing options for amendments to the County’s vacation rental regulations may pose.
HOUSING CONSTRAINTS:
N/A
FINANCING:
Staff time to write this staff report and bring this item forward to the Board for consideration is included in the Fiscal Year 2025-26 Adopted Budget for HCD, Appropriation Unit HCD002, Unit 8543.
BOARD OF SUPERVISORS STRATEGIC PLAN GOALS:
Regulating vacation rental use of residential properties supports the Board of Supervisors Strategic Plan Goal for Well-Being and Quality of Life to create safe and healthy communities where all can thrive, by safeguarding housing from converting to vacation/short-term rentals and providing clears rules and standards that all vacation rental operations must meet to operate safely in or community.
_X_ Well-Being and Quality of Life
____ Sustainable Infrastructure for the Present and Future
____ Safe and Resilient Communities
____ Diverse and Thriving Economy
____ Dynamic Organization and Employer of Choice
Link to the Strategic Plan:
<https://www.countyofmonterey.gov/home/showdocument?id=139569>
Prepared by: Melanie Beretti, AICP, Chief of Planning, 831-755-5285
Approved by: Craig Spencer, HCD Director
Cc: Front Counter Copy; To File REF250042/REF250043; Planning Commission; Vacation Rental (STR) Public Distribution List; County of Monterey Treasurer-Tax Collector; Monterey County Regional Fire; County of Monterey Health Department Environmental Health Bureau; Coastal Commission; Monterey County Land Watch; Keep Big Sur Wild; Liz Gonzales, Permit Center Manager; Stacey Giles, Permit Technician III; Sarah Wikle, Principal Planner; Jacquelyn Nickerson, Principal Planner; Fionna Jensen, Principal Planner; Karen Riley-Olms, Management Analyst II; Josh Bowling, Chief of Building Services; Evan Nuckles, HCD Building Services Manager; Melanie Beretti, Chief of Planning; Craig Spencer, HCD Director.