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REPORT <br />To the Honorable Mayor and City Council <br />From the City Manager <br /> <br />January 8, 2018 <br /> <br />SUBJECT <br />Regulation of Short Term Rentals to Address Neighborhood Impacts, Clarify Transient <br />Occupancy Tax (TOT) Regulations and Dedicate Revenue to Affordable Housing <br />Projects, Programs and Administration <br /> <br />RECOMMENDATION <br />1) Hold a public hearing; and <br />2) Waive First Reading and Introduce the proposed zoning ordinance and municipal <br />code amendments; and <br />3) Adopt the proposed resolution dedicating TOT money to affordable housing projects, <br />programs and adminsitration; and <br />4) Direct staff to return in January 2020 with an update and opportunities to make <br />amendments as necessary <br /> <br />BACKGROUND <br />Short-term rentals are defined as dwelling units that are rented for periods lasting less <br />than 30 days. Common examples include renting a house or an apartment for a week or <br />weekend for a short stay or for several weeks associated with business travel or longer <br />vacations. Short-term rentals are most commonly offered and rented through online <br />hosting platforms such as Airbnb, VRBO, and HomeAway. <br /> <br />The short-term rental industry has experienced <br />tremendous growth in the last five years. In <br />2010, fewer than 100 people used Airbnb-hosted <br />rentals in San Mateo County for all of 2010. By <br />2012, the number of hosts had grown to over <br />1,000 people. Redwood City currently has over <br />300 active hosts in 2017 (see information at <br />right). Additional background on the growth of <br />short-term rentals is available in a white paper <br />called “Options for Regulating Short-Term <br />Vacation Rentals” written by 21 Elements, a <br />collaborative of cities and the County that <br />addresses housing issues in San Mateo County. <br /> <br />While short-term rentals may provide income to <br />residents and broader lodging options than the <br />Short-term Rental Market on <br />Airbnb from Dec. 2016 – Nov. 2017 <br />380 active hosts <br />6 nights is the average length of <br />stay per guest <br />$12,200 typical annual host earnings <br />51% of listings are for the entire <br />home <br />43% of listings are for private rooms, <br />with an additional 5% for shared <br />Source: Airrbnb December 2017 <br />7.B. - Page 1