by Kevin Cody
Hermosa Beach property owners who illegally rent short term vacation rentals (STVRs) in the residential parking district (west of Morningside and Loma drives) could lose their residential parking permits, under a motion approved by a 4-1 vote at Tuesday’s city council meeting.
Councilmember Raymond Jackson introduced the motion. Councilmember Dean Francois opposed the motion on the grounds that revocation would apply to property owners who might not know their tenants were illegally subletting their units as short term rentals.
Tuesday’s motion would also standardize citation fines for all illegal STRVs, regardless of number of bedrooms. The fines were set at $5,000 for the first violation, $10,000 for the second violation and $20,000 for the third violation.
Hermosa Beach has issued 45 citations for illegal STVRs since last July, according to Community Development Director Carrie Tai. Most citations have been resolved with a warning and voluntary compliance, Tai told the council.
Hermosa Beach currently has 175 Short Term Vacation Rentals (under 30 days), despite having issued only 14 STVR permits, according to the STVR analysis site AirDNA. Hermosa allows STVRs for non conforming residential units in commercial districts. Legal STVRs pay the city’s 14 percent TOT (Transient Occupancy Tax), and a $1,589 annual permit fee.
Hermosa’s STVRs currently have a 59 percent occupancy rate and average $409 a day, according to AirDNA. By comparison, last July, Hermosa had 247 STVRs, with an 77 percent occupancy rate, and an average day rate of $329. Since that time, Hermosa has retained Granicus Host Compliance to help the city identify illegal STVRs.
Also at Tuesday’s meeting, in a motion introduced by Councilman Jackson, Hermosa stiffened proposed fines for illegal cannabis delivery in the city.
Cannabis confusion
Last September, the council approved issuance of permits for delivery of cannabis within the city.
The citation fee for delivery without a permit was set at $20,000. But the fine could be waived upon compliance, at the discretion of the city manager.
Jackson’s cannabis motion set the compliance waiver at not more than $10,000 of the fine.
Since approving cannabis delivery, no permits and no fines have been issued, prompting Councilman Michael Detoy to ask why.
“Hiccups with the State Department of Cannabis Control. Access to their information has not been as easy as expected.” City attorney Patrick Donegan answered.
The Department of Cannabis Control tracks cannabis deliveries by zip code.
Donnegan said the lack of access to the Cannabis Control data was related to Hermosa Beach banning retail cannabis sales.
“It’s a matter of working with the (Cannabis Control) attorneys to get access to the data. They have requested we make a records request,” Donegan said. ER
