SAN DIEGO (KGTV) — The San Diego City Council hashed out a new ordinance that enforces short-term vacation rentals to be capped.
Council members passed a measure 8-1 that enforces most hosts to pay a new $1,000.00 annual application and licensing fee. The current 19,000 short-term rentals will be capped to just 5,400 when the ordinance is enforced in July 2022.
Critics by the dozen sounded off, arguing "good actors" who have been responsible and paid taxes should have prioritization in the lottery. Many callers argued the revenue from their rentals was their only source of income.
In February the council passed a formal ordinance to impose a yearly cap on whole-home vacation rentals that could cut the number down to 30%.
Several council members say this ordinance will also free up thousands of homes to help solve the city's housing market shortage.
The California Coastal Commission still has to give the plan the final approval.
