COUNTY OF SANTA CRUZ VACATION RENTAL ORDINANCE (5092) 

WHO DOES THIS ORDINANCE AFFECT? 

The Vacation Rental Ordinance affects any property owners who own and operate a vacation rental, or plan on owning and operating a vacation rental, within the County of Santa Cruz’s jurisdiction (the areas of the County that are not incorporated into one of the various cities).  

WHEN IS THE ORDINANCE EFFECTIVE? 

The Ordinance became effective on July 13, 2011. Inside the Live Oak Designated Area (LODA, map provided below), which is a special district within the County’s jurisdiction, only applications for existing vacation rentals are being accepted before November 28, 2011. For all other areas in the County, applications are being accepted for existing and new vacation rentals until November 28. After November 28, all applications for all areas in the County will be considered as new. 

WHAT DOES THE ORDINANCE MEAN? 

The Ordinance has essentially created land-use regulations for the establishment and operation of vacation rentals in the County. In order for a vacation rental property to operate legally, a permit from the Planning Department must now be obtained.  

Vacation rental properties in operation prior to April 5, 2011 are considered existing vacation rentals. Those established after April 5, 2011 are considered new vacation rentals. Proof of operation prior to April 5, 2011 can be demonstrated by a Transient Occupancy Tax (TOT) certificate from the County Treasurer/Tax Collector, sales receipt, or other acceptable means. Don’t have a certificate or haven’t paid your TOTs? See more below.  

The location of a vacation rental property is highly significant as the Ordinance specifics are location-based. Properties located within the Live Oak Designated Area (LODA) are subject to caps on the number of vacation rentals the County will permit. Additionally, the County is accepting applications in the LODA for existing rentals only during the August 29 – November 28 period. New applications for vacation rentals in the LODA area can be applied for after November 28, but may not be approved depending on how many vacation rentals are in the surrounding area. Outside the LODA, the County is accepting applications for new and existing rentals before November 28 and there are no caps on the number of vacation rentals allowed. 

To be considered as an existing vacation rental, an application must be made before November 28, 2011. 

WHAT IF I HAVEN’T BEEN PAYING TRANSIENT OCCUPANCY TAXES (TOTs)? 

You can still apply as an existing vacation rental if you haven’t paid your TOTs. The County Treasurer will require you to pay your TOTs retroactively, covering the past three years. Depending on the circumstance and reason for unpaid taxes, penalties and interest may apply to the taxes due. The County Tax Collector is actively pursuing the collection of TOTs in conjunction with the new Ordinance. 

WHAT IS REQUIRED TO OBTAIN A PERMIT? 

The vacation rental permits will be processed administratively, which means a public hearing is not required. Application requirements include, but are not limited to: 

·         Completed application form, available at the County or here: http://www.sccoplanning.com/html/policy/vacation_rental_appinfo.html

·         One set of plans, including site plan and floor plan, to scale

·         Copy of rental/lease agreement

·         Proof of operation prior to April 5, 2011 (existing rentals only)

·         Proof of TOT payment

·         Fee: $289.32 for existing rentals; $441.32 for new rentals. Fees are charged per unit. 

The County has specific information which must be demonstrated or included in the items listed above, including (but not limited to) specific parking requirements, occupancy calculations, and how to deal with unpermitted work. Feel free to contact our office to find out more about what is required, and how Hamilton Swift may be able to facilitate your application process. 

MAP OF THE LIVE OAK DESIGNATED AREA (LODA)

Source: County of Santa Cruz, 2011.