The Board of Supervisors take final vote to usher in short-term rental ordinances, but not without a fight.

Two weeks after the Monterey County Board of Supervisors voted 3-2 in favor of a new short-term rental ordinance, the board split down the same lines on Tuesday, Sept. 10, in a final approval of amendments to the county’s code that regulates the rentals. Instead of finally settling the issue, however, an intense debate erupted after the vote over whether to further ban commercial STRs in even more residential areas of the county than the new ordinance covers.

Beginning Oct. 14, STRs, also known as vacation rentals, will be capped at 4 percent per inland planning area of unincorporated Monterey County. The same cap for coastal areas will still have to go to the California Coastal Commission for approval, along with the other provisions of the new ordinances, including the requirement that STR operators obtain business licenses and operating licenses.

The new rules ban commercial rentals in Big Sur, Carmel Highlands and the residential areas of Carmel Valley and Moss Landing. On Tuesday, supervisors Glenn Church and Mary Adams wanted to add the residential areas of North County, Del Monte Forest and the areas of unincorporated Carmel and the greater Monterey Peninsula.

“I’m really concerned about the impact on housing, particularly rental housing,” Church said of homes converted into vacation rentals in his District 2, which encompasses North County. “This is a growing issue and needs to be addressed.”

Adams asked to add more residential areas, to which Supervisor Chris Lopez interjected an argument that the county would be out $4.5 million in transient occupancy tax income if even more commercial rentals were banned.

“You don’t know what we're not getting,” Adams replied, adding that there was no data to know what the impact might be. Lopez replied that the operating cost of the program, plus lost taxes, would be a negative for the county. Supervisor Luis Alejo agreed with Lopez.

Church remained adamant about banning commercial rentals in residential areas. “I don’t care if we don’t collect a dime from this program if it means we can provide more housing for the people of this county,” he said.

Supervisor Wendy Root Askew said she was uncomfortable making amendments on an ordinance that had been publicly vetted over years, then approved by the Planning Commission after extensive deliberations, then to turn around and “immediately meddle with it.”

She argued in favor of letting the ordinance operate as is for six months, and then come back to assess. She pointed out that the “vast majority of concerns” raised by residents over commercial rentals—loud parties, too many vehicles and other nuisances—were covered under the enforcement section and that staff had the discretion to withdraw licenses of those in violation.

Church said six months was too long for him, he wanted it back before the end of the year. They settled (on another 3-2 vote) on bringing the matter back to the board on Dec. 10 for more discussion.

The ordinances passed by the board include three types of rentals: homestays, which are allowed in all unincorporated areas and require the property owner to stay in the home while it’s being rented; limited vacation rentals, also allowed in all areas, which allow a house to be rented out three times or fewer per year; commercial rentals, except in Big Sur, Carmel Highlands and the residential zones of Carmel Valley and Moss Landing.

Commercial vacation rentals may be allowed with a use permit inland, or a coastal development permit in coastal zones. They allow a whole house to be rented more than three times a year.

According the the Monterey County Housing and Community Development Department, all current unpermitted vacation rentals must submit an application or come into compliance by April 14, 2025.

Previously permitted vacation rentals in the inland area must comply with the new regulations once their permit expires, or within seven years, whichever is sooner.