IMPORTANT HEADS UP: Possible Council Review of Short-Term Lodging Program on Newport Beach City Council Agenda Next Tuesday

The Newport Beach City Council will consider next Tuesday, November 17, whether there is sufficient support to move forward with an ad hoc committee to review the City’s short-term lodging permit program.

Councilmember Erik Weigand requested the item, which calls for considering a committee to “further reform Short Term Lodging (STL) permits city-wide.” The meeting begins at 4 p.m.

Council Member Erik Weigand

Tuesday’s action is an initial step. The process in Newport Beach is that such a request needs support from three councilmembers before staff returns with a resolution formally establishing the committee. No changes to the STLP code are being adopted through this item. At a subsequent council meeting, at least four council members would need to support formation of the committee. Then members would be appointed to the committee which would then undertake the work - in this case the review of the STLP code.

NBSTRA will be engaging with Council members to learn whether they support forming the committee, what they intend it to examine, and if they proceed, how NBSTRA can represent responsible STR owners and management companies in any process.

Members may recall that during the Council’s July 14 review of the July Fourth incidents, Councilmember Weigand described Newport Beach as having “a lot of good operators” and “a lot of bad operators.” We of course know that the vast, vast majority of owners and managers of STLP properties are good operators. There is no basis for Council Member Weigand’s claim that there are “a lot of bad operators.”

Council Member Weigand raised a broad range of possible changes in July, including reducing the number of permits, longer minimum stays, restrictions on permit transfers, security cameras and higher trash fees.

His comments at that time, and now his pursuit of this ad hoc committee, raise concerns that STRs are being treated as a significant contributor to the July 4 holiday disorder. We have seen little to no evidence supporting that conclusion. The City’s own July review instead highlighted a social-media-driven influx of teenagers and young adults to the Balboa Peninsula.

No one in the industry is opposed to accountability for irresponsible operators and guests. We also expect any proposed restrictions to address demonstrated problems and take into account their impact on responsible owners, businesses and visitors.

We will keep members informed as this develops. If the Council moves forward with the committee and proposals emerge that would harm the industry, we may need substantial engagement from STR owners and management companies—including contacting Council members, attending meetings and explaining how proposed changes would affect your properties and businesses.

Please watch for our updates and be prepared to participate. NBSTRA will advocate for the industry throughout this process, and a strong, engaged membership will be essential.

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