Item 10 - Receive and File - Orange County Grand Jury’s Investigative Report, Findings, and Recommendations Regarding Long-Term Solutions to Short-Term Rentals

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Long-Term Solutions to Short-Term Rentals Table 1: STR policies by city Policy Choice Cities with the Policy Banned (19) Aliso Viejo, Brea, Costa Mesa, Cypress, Fountain Valley, Garden Grove, Irvine, La Habra, Laguna Hills, Laguna Niguel, Laguna Woods, Los Alamitos, Rancho Santa Margarita, Santa Ana, Stanton, Tustin, Villa Park, Westminster, Yorba Linda Allowed (15) Anaheim, Buena Park, Dana Point, Fullerton, Huntington Beach, La Palma, Laguna Beach, Lake Forest, Mission Viejo,Newport Beach, Orange, Placentia, San Clemente, San Juan Capistrano, Seal Beach The advent of online booking agencies (OBAs)has made it even easier for homeowners (and apartment lessees)to supplement their income by renting out their home or room and advertising to millions around the world. As a result, STRs' visibility has increased, creating tension between STR operators and neighbors. REASON FOR THE STUDY Short-term rentals are a heated topic in Orange County cities. Various news reports have covered the impact of STRs on local communities, and this motivated the Grand Jury to investigate how effectively Orange County cities are managing STRs. The scope of this study includes the thirty-four cities in Orange County, with a focus on cities with the largest number of STRs and cities with bans on STRs, as well as coastal cities. The Grand Jury studied STR permits and the effectiveness of STR bans. Finally, the Grand Jury examined strategies to improve the quality of life for residents and to provide city planning departments a compilation of tools that will assist in effectively balancing the expectations of the residents and the business owners operating STRs. METHOD OF STUDY The Grand Jury conducted the following: • Research on STR management and business models o Survey of national publications with articles on STRs 2024-2025 Orange County Grand Jury Page 5