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A city’s ban on short-term vacation rentals in the coastal zone constitutes “development” under the California Coastal Act. Therefore, the Coastal Commission must first approve a coastal development permit, an amendment to the city’s certified local coastal program, or an amendment waiver before such a ban can be imposed.
Kracke v. City of Santa Barbara, 63 Cal. App. 5th 1089 (2021).
Until 2015, the City of Santa Barbara allowed short-term vacation rentals as long as the owner registered the unit with the city, obtained a business license, and paid transient occupancy taxes. In 2015, the City Council directed its staff to regulate short-term rentals as hotels under the city’s zoning code. Because the zoning code did not permit hotels in most residential districts, the city’s action was effectively a ban on short-term rentals in most residential areas. As a result, the number of short-term rentals in the coas