9.38.040 Permit Application and Issuance.

A.     Business Registration Certificate. Owner/agent must obtain and maintain a current and valid business registration certificate issued by the City pursuant to Chapter 6.60 of this Code at all times while operating a short-term rental at the property.

B.     Contents of Application. Applicants shall submit an application for a short-term rental permit to the City of Encinitas each year for each unit. A permit application must include all of the following information, which shall be updated when there is any change to ensure that the City has current information on file at all times relating to the short-term rental and its owner(s)/agent(s), as applicable:

1.     Legal name, address and telephone number of all owner(s), agent(s), and the 24-hour, seven-day per week local contact person (if different from owner/agent).

2.     The address and assessor’s parcel number of the property proposed to operate as a short-term rental unit.

3.     The number of bedrooms within the unit.

4.     The number of existing on-site parking spaces designated for the exclusive use of the unit.

5.     The number of fire extinguishers and smoke and carbon monoxide alarms at the short-term rental property, and a self-certification of compliance with the Fire Code subject to review and approval by the City’s Fire Marshal.

6.     Signed statement acknowledging that the owner is permitted to use the owner’s property as a short-term rental, per applicable private governing documents.

7.     Copy of any application and all other forms that renters of the short-term rental will be required to complete.

8.     Copy of the owner’s rules and regulations for the short-term rental.

9.     Signed statement by the owner acknowledging all of the following: (a) all of the information contained in the short-term rental permit application is true and correct; (b) all owner(s)/agent(s), and the designated local contact person, are familiar with the requirements of this chapter; (c) all owner(s)/agent(s), and the designated local contact person, are responsible for ensuring compliance with this chapter; and (d) failure to comply with this chapter and all applicable provisions of this Code may result in suspension and/or revocation of a short-term rental permit.

10.   Evidence of liability insurance for the property in an amount of at least $1,000,000.00 to cover the short-term rental operations, which insurance shall be maintained during the entire term of any permit issued by the City. Renewal must be provided to the City before expiration of the insurance on file.

11.   Such other information as the City Manager, or designee, deems reasonably necessary to administer this chapter.

12.   The application and permit are only applicable to the individual(s) named on the application and are non-transferable.

C.    Application Fee. The application for a permit shall be accompanied by a nonrefundable application fee or renewal fee established by the City Council; however, the fee shall be no greater than necessary to defray the costs incurred by the City in administering and enforcing the provisions of this chapter. Although the applicant may be the property owner or the property owner’s agent, the property owner shall be the party responsible for compliance with all provisions of this chapter and all of the laws regulating short-term rentals.

D.    Change of Ownership. Within 14 days of a change of property ownership or conveyances that materially change the ownership interest in the property, a new application for a short-term rental permit to continue operation of the short-term rental and shall be accompanied by the required application fee. A request for change of ownership for the purpose of evading fines or the suspension or revocation of a permit will be automatically denied.

E.     Granting of Application. The application shall be granted unless the applicant does not meet the conditions and requirements of the permit or fails to demonstrate the ability to comply with this Code or other applicable laws, rules or regulations. All permits issued under this ordinance must be renewed 12 months from the initial date of issuance. If the term of liability insurance expires within the permit term, the permit approval is automatically revoked unless evidence of insurance renewal is provided to the City in advance of expiration.

F.     False Statements. Any false statements or information provided in the application are grounds for denial of a short-term rental permit, or if the permit has already been issued by the City, revocation and/or imposition of penalties, as outlined within this chapter. (Ord. 2021-22)