Earlier today, April 24th 2023, Sonoma County voted to bring in a new business license requirement for any homeowner operating a vacation rental. In addition, the county voted on further increasing the restrictions in certain areas around the county where there is currently a high density of vacation rentals. These changes in the vacation rental ordinance are in addition to the disqualification of R1-zoned properties as being eligible for a vacation rental permit which was voted in last year. While there is a moratorium in place that will end on May 10th, once the moratorium is lifted only homes that qualify under the new rules will be considered eligible for a vacation rental permit. (see blog post about putting in place the moratorium)
As someone who does a lot of business in the vacation rental market, I don't think the changes that are being made are unreasonable. I totally understand that a neighborhood where 41% of homes are vacation rentals will have the character changed in a way that is not good for permanent homeowners. The hardest part for many vacation rental owners, and would-be vacation rental owners, is operating in an environment where no one knows the rules or what is coming. Now that we know the rules we are playing by, we can now operate within the guidelines and know that when a property is purchased whether or not it will qualify. The good news is that there are still lots of great places to purchase a vacation rental in Sonoma County, you just need to know where to look.
Moving forward there will be two key areas of compliance. Firstly the vacation rental zoning permit which authorizes the location of a particular property as an eligible property which is determined by the underlying zoning. The zoning permit also regulates the capacity of a qualifying property based on things such as the type of septic system. (see this 8 step guide to understand all the zoning permit rules) Secondly, the vacation rental license authorizes the operation of a qualifying property and also is used to regulate the standards and ensure compliance with those standards.
What Has Now Been Voted Into The New Ordinance?
There were two key additions to the ordinance that were voted on today: the implementation of new exclusion zones which are either total exclusion zones or areas where there is a vacation rental density cap of either 5% or 10% and the finalization of the business license. The new exclusion zones focussed on some key areas in Russian River, on the perimeters of Healdsburg, around Sonoma particularly south of the city limits in a few small pockets and also a couple of areas to tighten up some of the existing exclusions around Glen Ellen and Kenwood. However, overall, the restrictions were not too onerous. There were no new either blanket or targeted restrictions in any of the fire perimeters which have been ineligible for the past few years as well as no new restrictions in many of the areas that are currently great locations for a vacation rental. The biggest impact for anyone looking for a vacation rental is in the lower price points around the Russian River. That being said there are still plenty of opportunities in areas such as Forestville and Occidental, both adjacent to areas such as Guerneville, Monte rio and Rio Nido that are now fairly limited for finding a new vacation rental.
The New Exclusion Zones and Cap Areas
In August 2022, the county adopted an ordinance banning R1 zoned properties from being eligible (this removes a lot of homes in areas such as the Russian River from being eligible). In addition, it committed to putting in place additional exclusions through the use of a full exclusion zone and other zones that would cap the number of vacation rentals at 5% and 10% respectively.
The board of supervisors has now voted to bring in additional exclusion in 21 areas around the county. It is important to note that these restrictions are not retroactive. In other words, if you already have a permit, you will continue to be able to keep that permit. (although you will now need a business license - see below)
The good news is that they have released a new website where you can actually go online and put in an address and it will show you if the property is in one of the new cap areas and it will also show you where the other permitted vacation rentals are. For example in the screenshot below you can see the new '5% cap areas around Fitch Mountain, Chiquita Road and Norton Road. All you need to do is enter an APN number or an address and it will give you the information.
Around Healdsburg
This area is west of HWY 101 near the City of Healdsburg. Vacation Rental concentration in this area has increased since the City restricted Vacation Rentals and is currently 17.5%.
New Vacation Rental Cap: 5% Cap
This area is between the Russian River and the eastern boundary of the City of Healdsburg.
New Vacation rental cap is 5% (replaces the previous total exclusion
This area is north of Dry Creek Road near the City of Healdsburg. Vacation Rental concentration in this area has increased since the City restricted Vacation Rentals and is currently 14.4%.
New Vacation Renal Cap: 5% Cap.
Around Sonoma
This area in Sonoma Valley was not included in the surrounding Vacation Rental Exclusion (X)Combining District.
New Vacation Rental Cap: Total Exclusion
Palmer Avenue / Harrington Drive
This area South of the City of Sonoma has experienced a significant increase in Vacation Rental concentration since the City banned Vacation Rentals.
New Vacation Rental Cap: Total exclusion
This area southwest of the intersection of HWY 12 and Ramal Road has a relatively high concentration(16.7%) of Vacation Rentals
New Vacation rental Cap: 5% Cap
Around Glen Ellen and Kenwood
This area is within a high fire severity zone and the existing private road serving the area does not meet Sonoma County Fire Safe Standards.
New vacation rental cap: Total Exclusion
This area is in the center of Glen Ellen and covers a group of Limited Commercial parcels that are developed with single family dwellings.
New Vacation rental Cap: Total exclusion
This area is in the northwest of Greene Street in Kenwood. This area was burned during the Nunsfire, but single family dwellings have been rebuild on most parcels.
New zoning: Total Exclusion
This area of Sonoma Valley Road is served by a network of private roads that do not meet Sonoma County Fire Safe Standards.
New zoning: Total Exclusion
Russian River
A lot of areas such as Guerneville, Rio Nido and Monte Rio have a lot of R1 zoned properties so are ineligible for a vacation rental permit. However, there are areas in Russian River which previously would be eligible but no longer are because of new caps introduced:
This area between HWY 116 and Cazadero has limited evacuation routes prone to flooding and landslides, and has a relatively high concentration of Vacation Rentals.
New Vacation rental Cap: 5% Cap
This area north of Guerneville has limited evacuation routes, is prone to flooding, and has a relatively high concentration of Vacation Rentals.
New Vacation rental Cap: 5% Cap
This area south of Guerneville has limited evacuation routes, is prone to flooding and landslides, and has a relatively high concentration of Vacation Rentals at 13.4%
New zoning: Total Exclusion
This area between Guerneville and Monte Rio has a relatively high concentration of Vacation Rentals at 14.2%.
New Vacation rental Cap: 5% Cap
This area in Forestville has limited evacuation routes, is prone to flooding and landslides, and has a relatively high concentration of Vacation Rentals at 8.3%
New Vacation rental Cap: 5% Cap
Monte Rio has limited evacuation routes, is prone to flooding and landslides, and has a relatively high concentration of Vacation Rentals at 12.1%
New Vacation rental Cap: 5% Cap
This area on the south side of the Russian River has limited evacuation routes, is prone to flooding and landslides, and has a relatively high concentration of Vacation Rentals at 19.2%
New zoning: Total Exclusion
Northwood has limited evacuation routes, it prone to flooding, and has a relatively high concentration of Vacation Rentals at 15.3%
New Vacation rental Cap: 5% Cap
This area down river from Monte Rio has limited evacuation routes, is prone to flooding and landslides, and has a relatively high concentration of Vacation Rentals at 13%
New Vacation rental Cap: 5% Cap
Around Forestville
This area in Forestville has limited evacuation routes, is prone to flooding and landslides, and has are relatively high concentration of Vacation Rentals 4.4%
New Vacation rental Cap: 5% Cap
This area in Forestville has limited evacuation routes, it prone to flooding and landslides, and has a relatively high concentration of Vacation Rentals at 7.6%
New Vacation rental Cap: 5% Cap
The Final Business License Requirements
The full outline of the business license can be found here but the main changes that were voted on today were as follows:
- Outdoor amplified sound will now be prohibited
- Property owners must submit a lighting plan that conforms to requirements around lighting not be too obtrusive and must not exceed 1000 lumens per fixture. The requirements also prohibit security lighting that is not tied to a motion sensor as well as floodlights and uplights.
- A property with a Junior ADU (a living space of less than 500 sq ft creating within a single family residence) can no longer be vacation rented
- Outdoor burning of solid fuels is prohibited
- The possession or discharge of Fireworks is prohibited on the property
- A vacation rental property must maintain its defensible space in the event of fire within the County's code for managing defensible space ensuring vegetation is actively managed
- All vacation rentals must have an operational landline or broadband connected VoIP phone
- A property manager is no longer required to live within 30 miles of the property
- If a license is revoked, a new license cannot be issued on the parcel for up to 5 years or until a new license is issued (in the event of the change of ownership)
Other key requirements of the business license that were previously agreed are as follows:
- All property owners operating a vacation rental must have a business license (this will include the Coastal Area later this year). This requirement is in addition to the property qualifying under the zoning code permit
- The licensee must be a property owner or if the property is held in a trust, the trustee may apply for a licenses on behalf of the trust beneficiaries. A property owner may only have an interest in one licensed vacation rental at time. (The implication of this is that an LLC cannot hold a license to operate a vacation rental)
- A license is only valid for one year and must be renewed annually
- There are decibel noise limits for daytime noise between 7am and 9pm and nighttime noise between 9pm and 7am
- On-street parking is required for all vacation rentals
- A vacation rental can only be rented to one tenant at a time
- The homeowner has the responsibility to ensure the correct TOT tax is paid by platforms such as AirBnB
- Homeowners need to provide guests with written evacuation instructions and the CalFire checklist. All guests must vacate the property when a voluntary order is issued
- Licensee and property manager must provide their contact details to the county on a regular basis as it needs updating
- The property owner must post a copy of the license on the property
- A property must have a certified property manager and must be available to the public and the department at all times. The property manager has just 1 hour to respond between 7am and 9pm and 30 mins between 2pm and 7am.
- The county may suspend or revoke a license or certification in the event of a homeowner not being in compliance
- If a notice of suspension or revocation is issued, an appeal must be made in writing to the department within 10 days from the date of the notice.
What's Next?
At least for the moment that is the end of any modifications to the vacation rental ordinance. However, it was widely acknowledged at the meeting that managing the volume of vacation rentals across the county is an ongoing process. Let's face it amendments are probably already in the double digits. The good news is that once you have your permit, they have never yet taken it away.
They are going to look further at some areas which have limited ingress and egress due to narrow roads or private driveways that could cause problems in the event of an emergency. The most important thing right now is that we at least all have a clear understanding of what the current rules are for anyone submitting a permit application once the window opens up on May 10th. Anyone now looking to purchase can do so with certainty. That being said, there are still some things that I advise all buyers to make sure they understand before purchasing what appears to be a qualifying property. (This blog post outlines some of the key pitfalls)
There are a number of outstanding questions which we will be providing more information on at a forthcoming webinar which include:
- Once the permit application window opens how long will it likely take to have a permit issued for a completed application?
- For the cap zones how will we know how long the wait list is?
- How long do I have to apply for a license to operate?
- How much are the fees for the license? and what are the likely fines?
In the meantime, if you are looking for help in finding a vacation rental in an area that will qualify for a permit, please do get in touch.
If you are interested in some of the documentation released by the county here is a summary of the key documents:
Summary report: Business License
Summary report: Exclusion zones
Vacation Rental Exclusion Maps
Final license ordinance markup
