Microsoft Word - Final Fact Sheet on Amendments.docx

President, Board of Supervisors

District 3

DAVID

CHIU

City and County of San Francisco

Short-Term Rental Regulation Summary

Supervisor David Chiu introduced legislation to regulate short-term rentals. The legislation reinforces the

prohibition against the conversion of residential housing into full-time de-facto hotels. It would only

allow primary residents that live in their apartment to rent short-term on a limited basis to help

supplement their housing costs. Secondary or vacation homes that do not have permanent residents

occupying them would not be granted permission, so that the residential housing stock is protected in the

midst of the current affordability crisis.

CORE COMPONENTS OF LEGISLATION

Primary Residency

Resident must live in the unit as their primary residence for no less than three-quarters of the year.

Registration

Resident must apply for permission every two years by providing documentation to demonstrate that they

meet primary residency, insurance, and tax requirements. Resident must maintain good standing by

complying with all city laws, including rent control laws, or their permission would be revoked and the

unit would be placed on a blacklist.

Taxes

Resident must pay transient occupancy taxes on short-term rental activity, and hosting platforms must

collect and remit those taxes, or be subject to enforcement by the Treasurer’s Office.

Insurance

Resident must maintain liability insurance or be covered by hosting platform insurance policy.

Private Contracts

Resident must adhere to the terms of their private contracts. Application does not interfere with leases,

homeowner association agreements, and covenants, conditions or restrictions on the property.

Enforcement

Residents that fail to register, violate the terms of their permission, or don’t maintain good standing are in

violation. Hosting platforms that fail to notify their users of short-term rental laws and collect and remit

taxes are in violation. Complaints alleging violations of the law would be investigated and deliberated

through an administrative hearing. Violations are subject to administrative and civil penalties.

AMENDMENTS TO THE LEGISLATION

Following hearings at the Planning Commission and Land Use Committee and deliberation by the Board

of Supervisors, Supervisor Chiu and his colleagues amended the legislation to strengthen enforcement,

protect affordable housing, maintain quality of life in neighborhoods, and ensure building safety.

Strengthening Enforcement

Enforcement Agency - Consolidate enforcement

function from two agencies into one with the Planning

Department. Planning would administer registration,

investigate violations, and report annually to the Board

of Supervisors. (Planning Commission

recommendation, Chiu amendment)

Registration Number - Require Planning Department

to issue registration number to accompany approvals,

and require resident to include registration number with

all short-term rental postings. (Planning Commission

recommendation, Chiu amendment)

Annual Self-Reporting - Require resident to report

number of days of short-term activity annually to

maintain good standing on registry. (Planning

Commission recommendation, Chiu amendment)

Multiple Violations - Raise administrative penalties for

repeat violations, so that fines are doubled for second

offenses and tripled for third and multiple offenses.

Violations that are not corrected would have permission

revoked. (Chiu amendment)

Online Advertisements - Deem posting online

advertisements without registering for permission as

violation subject to administrative and civil penalties.

(Planning Commission recommendation, Chiu

amendment)

Interested Party - Include homeowner association and

property owner in definition of interested party allowed

to file lawsuit after violation is rendered through an

administrative hearing. (Kim, Farrell amendments)

Funding - Require annual evaluation of application fee

to assess administration and enforcement costs, and

include Planning Commission hearing in evaluation.

Direct all administrative and civil penalties back to

Planning to fund enforcement. (Planning Commission

recommendation, Chiu amendment)

Protecting Affordable Housing

Affordable Housing Exclusion - Exclude single room

occupancy hotels, below market rate units, and any

subsidized housing with restrictions on subletting and

short-term renting from short-term renting. (Planning

Commission recommendation; Chiu/Kim amendment)

Single-Family Homes - Include single-family homes in

regulation by requiring registration for permission and

compliance with residency and all other good standing

requirements. (Planning Commission recommendation,

Chiu amendment)

Principal Residence - Define principal residence as

one residential unit that is associated with one

permanent resident. Registration is allowed for only one

permanent resident per unit. (Chiu amendment)

Maintaining Quality of Life

Code Compliance - Require compliance with Police,

Health and Public Works Codes for approval and good

standing. Permission is revoked if any outstanding

noise, dumping, and other quality of life violations.

(Planning Commission recommendation, Chiu

amendment)

Ensuring Building Safety

Liability Insurance – Increase coverage requirement to

$500,000 and require coverage to indemnify tenant and

owner for bodily harm and property damage. (Planning

Commission recommendation, Wiener/Farrell

amendment)

Property Owner Notification - Require Planning to

notify property owner and homeowner association if

tenant or homeowner has completed an application to

rent short-term. (Wiener/Farrell amendments)

Code Compliance - Resident must be in compliance

with Building and Fire Codes to be granted permission

and maintain good standing. Permission is revoked if

any outstanding building, electrical, plumbing,

mechanical, fire, health, housing, or planning code

violations, including notices of violation, notices to

cure, orders of abatement, cease and desist orders, or

other correction notice. (Planning Commission

recommendation, Chiu amendment)

Fire Safety Posting - Resident must post fire safety

information in their unit like location of fire

extinguisher, alarm and exits. (Cohen amendment)