Hideaway on Hoffman development in Monterey offers mid-term stays, not long-term leases.

What started as a traditional mixed-use development on Lighthouse and Hoffman avenues in Monterey, with five residential condominiums over ground-floor commercial space, has shifted from the conventional 12-month rental model to offer “extended stays” of 30 days or more.

“Extended stay is appealing to anyone who cannot commit to one full-year lease, has sold their home and/or furnishings, or is on a shorter-term assignment,” Hideaway on Hoffman owner Anna Russell says. “This offering is critical for our community as employers in the area are seeking contract employees with greater frequency in almost every field. People in general are on the move, now more than ever.”

The project, originally advertised as providing “much-needed housing” in the building that was once home to Paper Wing Theatre, ran into some scheduling issues during development. After delays, as the project began to come together, Russell saw the potential for the extended-stay offering versus longer-term leases.

“Being right in downtown New Monterey, close to the bike path and a quick drive to Carmel and Salinas, it is an ideal location for extended-stay clients – near the attractions and close to many employers, walkable yet has the feeling of a modern apartment building in a larger city,” she says. “Convenient, comfortable, beautifully designed and furnished.”

Russell explains that “extended stay” is another way to say “mid-term rental,” which typically ranges from 30 days to 12 months and that her property management company, De Tierra Rentals, started offering mid-term rentals about six years ago during the pandemic due to demand.

Rentals of less than 30 days are illegal in the City of Monterey, and according to Monterey Planning Manager Levi Hill, an “extended-stay unit” isn’t a listed use classification in the City’s Zoning Code or the Lighthouse Specific Plan.

He says the property at 601 Lighthouse Ave. is currently permitted as a mixed-use development with five residential units and 922 square feet of commercial space.

“The property is not permitted as a Visitor Accommodation Facility and is not permitted for rentals for periods of 30 days or less,” Hill says. “In the event that units located at 601 Lighthouse are rented for a period less than 30 days, it would become a code enforcement matter, as such uses are not permitted.”

Although Russell had intended for some units to have shorter-term stays of five days, with no other clients booking the unit for the remaining 30 days, the City of Monterey said otherwise. Following a letter from the City, she will no longer be able to offer any stay short of 30 days to stay compliant with the law.

Russell says the ground-floor commercial space will be transformed into a community meeting space and market, envisioned as a “third space,” dubbed “The Temple Market” to honor the building’s previous name. It is slated to open next year, with a focus on women-owned businesses.

“My hope for the Hideaway on Hoffman is that it fills a housing need, creates connection in the community between locals and visitors alike, and contributes to the amazing legacy of the Monterey Labor Temple building,” she says.