The Coastal Commission certifies Monterey County's short-term rental ordinance.

It's taken over 15 years and a lot of public input for the County of Monterey to achieve a short-term rental ordinance. It was that lengthy and well-discussed process that tipped the California Coastal Commission to certify an amendment adding the ordinance to its local coastal plan by a vote of 6-2 on Wednesday, Aug. 13.

Commissioner Chris Lopez (also a Monterey County supervisor) voted against certification, in line with his "no" vote when the board passed the ordinance 3-2 nearly a year ago last September. 

Before the vote, Commissioner Meagan Harmon pointed out the "very robust public engagement process" that led to supervisors approving the ordinance.

"The solution the county came up with really does appear to be a middle ground," Harmon said. 

Lopez suggested the ordinance be reworked before the commission vote on the amendment.

"This is one of those moments for me I have to speak up for families," he said, noting the high cost of permits required to launch a commercial rental in the county, around $12,000 for a coastal development permit review, plus more for other fees.

He was also concerned about the limits placed on short-term rentals and what it would do to access for people living inland who want to come to the coast.

"I don't know that I'm ready to vote 'yes' today," Lopez said. "I'm worried about access for the valuable part of California."

There were attempts by Commissioners Jose Preciado and Caryl Hart to make changes. Preciado wanted existing commercial operators to be grandfathered in—the ordinance bans commercial rentals in Big Sur and Carmel Highlands, currently 37 operators. He agreed to a compromise of allowing them to operate for seven years, which is what inland operators are currently experiencing. 

He also wanted to not require coastal development permit review to reduce the cost to operators. Commissioner Ariel Kelley said she was concerned taking away that review by Coastal Commission staff could lead to potential degradation of coastal resources. 

Both of Preciado's amendments failed. He attempted a third amendment that might create another avenue for rentals.

"It's too dramatic to go to zero," Preciado said, of the ban on commercial STRs in Big Sur and Carmel Highlands.

Others pointed out property owners in those areas would be allowed unlimited homestays and limited rentals, where homes could be rented out for up to 30 days, up to three times a year. Lopez explained it was created with large events like Car Week and the AT&T Pro-Am in mind.

Preciado deferred to Hart, who proposed a compromise that would allow situations where a full-time resident or caretaker lives in one structure on a property and the other structure, like an accessory dwelling unit or main house, is rented out. It would, in essence, be akin to a homestay, which is allowed, is unlimited and does not require the same permitting process. (Typically a homestay is where someone rents a room in the same residence where the owners are present. The county ordinance prohibits short-term rentals of ADUs.) 

Hart's amendment also failed.

A majority of commissioners did not buy arguments by the Monterey County Vacation Rental Alliance and others that the ordinance reduced coastal access, which goes against the Coastal Commission's legal responsibility to protect access. 

Those in favor of the ordinance pushed back, contending that the opposite was true, especially in Big Sur where STRs could push residents out of the area, including teachers, hospitality workers and others. The result would be less services, and therefore less access, for visitors.

There was also talk that the ordinance reduces the number of affordable lodging options. VRBO currently shows rentals in September ranging in price from a few hundred dollars a night to over $2,000. Only one rental, for a one-bedroom, one-bathroom unit, was under $200. One rental in Carmel Highlands is going for over $8,000.

Monterey County Supervisor Kate Daniels, who previously served on the Monterey County Planning Commission which spent years reviewing the ordinance, joined Director of Housing and Community Development Craig Spencer and Chief of Planning Services Melanie Beretti in defending the county's ordinance at the Coastal Commission's meeting in Calabasas.

Lopez made a point of saying he held no hard feelings against the supervisors who passed the ordinance (before Daniels was on the board), nor would he hold hard feelings toward his Coastal Commission colleagues if they voted to certify the amendment. He hoped they would support tweaking the ordinance. 

Commissioner Raymond Jackson felt the county's ordinance was a start.

"It may not be perfect, but I don't think we should let perfect be the enemy of the good and do nothing," Jackson said. "There will be growing pains. Some people will be happy, some people won't be happy, but this is a good start."

Commissioner Ann Notthoff from Carmel Valley recused herself from the vote. She serves as chair of the board of LandWatch, which urged certification.

The commissioners ultimately voted 6-2 to certify the county's ordinance, with Lopez and Preciado dissenting.