Escondido STR program starts Tuesday
The city’s three-year pilot program restricts STRs to 2% of housing stock and only allows owner-occupied units, with steep penalties for violations
ESCONDIDO — The city’s new regulations regarding short-term rentals goes into effect on Tuesday.
The City Council formally adopted its STR three-year pilot program on Wednesday to secure a handle on the issue. Escondido becomes the latest city to adopt regulations around the controversial issue, which some housing advocates say should be banned in order to provide more long-term housing options amid the state’s housing crisis.
The city’s new regulations, though, limit the number of units allowed to be STRs to 2% of Escondido’s total housing inventory and limited to owner-only units. Residences eligible for STR status are single-family detached, duplexes, two- and three-unit dwellings, townhomes, and multi-family with caps, such as a complex with two to 50 units only allowed one STR.
Only property owners may host STRs, while units such as accessory dwelling units, junior ADUs, income-restricted, trailers, inclusionary and homes under Senate Bill 9 are ineligible, according to the city’s ordinance.
Operators must secure a business license and obtain a short-term rental permit and Transient Occupancy Tax certificate. The annual permit fee is $250 along with a $231 inspection fee and a 10% tax rate of rental revenue paid each quarter, per the city.
The application process also opens on Tuesday and is a first-come, first-serve process until the cap is reached. Escondido projects a total of 942 permits.
STRs may only have a maximum of two guests per bedroom, plus two additional guests and 24-7 local contact is required for guest to lodge complaints or emergencies. Violations of the city’s new ordinance will be hit with a $1,000 fine for the first offense, $3,000 for a second and $5,000 for a third offense within 12 months, plus a permit revocation.
Also, no permits will be awarded to a property within 500 feet of a school.
Other cities already have regulations on the books, such as Oceanside, Carlsbad, Encinitas and Vista. San Marcos has an outright ban on STRs in a general residential zone, but they can be allowed within specific plan areas.
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