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Long-Term Solutions to Short-Term Rentals <br /> <br />2024-2025 Orange County Grand Jury Page 16 <br /> <br />F5: Proactive home inspections of new and renewing STRs, which have been implemented in <br />some Orange County cities, improve code enforcement and STR compliance with city <br />ordinances. <br />F6: Direct remittance of taxes by OBAs does not capture all TOT for an STR because of direct <br />booking practices. <br />F7: Some cities in Orange County have outdated systems for tracking short-term rental TOT <br />making the process less effective and more difficult for staff. <br />F8: In some cases, STRs are improperly recharacterized as long-term rentals to circumvent the <br />collection of TOT and any applicable penalties. <br />F9: Online Booking Agencies in foreign languages are outside the current capabilities of Code <br />Enforcement to monitor and track unpermitted STRs. <br />F10: Cities that fail to routinely review their STR waiting lists potentially lose TOT revenue and <br />contribute to a greater prevalence of unpermitted STRs. <br />F11: Locations that have hosted major events have reported an outsized increase in demand and <br />pricing of STRs, a situation Orange County is likely to experience with the upcoming 2026 Los <br />Angeles World Cup and 2028 Los Angeles Olympics. <br />F12: City leaders have no regular communication with each other concerning STR issues, <br />limiting opportunities to develop strategies and expertise to improve service. <br />RECOMMENDATIONS <br />In accordance with California Penal Code Sections 933 and 933.05, the 2024-2025 Grand Jury <br />requires (or, as indicated, requests) responses from each agency affected by the <br />recommendations presented in this section. The responses are to be submitted to the Presiding <br />Judge of the Superior Court. <br />Based on its investigation described herein, the 2024-2025 Orange County Grand Jury makes the <br />following nine recommendations: <br />R1: Cities should review and begin to update ordinances to keep up with the rapidly changing <br />nature of court findings and legislation related to STRs, by December 31, 2025, and no less <br />frequently than every three years thereafter. (F4, F12) <br />R2: Cities should consider developing a plan for upcoming major events that are expected to <br />create a surge in demand for STRs and its associated Transient Occupancy Tax, by December <br />31, 2025, and no less frequently than every two years thereafter. (F11) <br />  <br />  <br />City Council 10 – 18 8/5/2025