Councilman criticizes proposed rental regs as ‘a solution looking for a problem’

Sentinel staff report–
Councilman Bret Daniels has taken to social media to criticize proposed short-term rental regulations in Citrus Heights, saying the city has “failed to demonstrate a need for this government oversight.”

Daniels’ comments were made in response to a post on the city’s Facebook page announcing the proposed ordinance, which would require annual licensing, impose a cap of two guests per bedroom, and ensure the collection of a 12% tax on Airbnb’s and other properties rented out for 30 days or less.

Another commenter responded to Daniels’ assertion and advocated for regulations, claiming that short-term rentals “have a direct link to increased rent and mortgages.”

See prior story: Citrus Heights proposes licensing, enforcing 12% tax on Airbnb’s

As reported previously by The Sentinel, a police spokesman told the City Council during a study session last year that there were 11 calls associated with short-term rentals, from January to early September of 2021. He said multiple calls were regarding the same address, with four considered “public safety” issues where an arrest was made at one and a large party dispersed at another.

During that session, several council members commented on the number of calls being relatively low, but expressed differing opinions on whether future action was needed.

“I definitely believe we need something in place before something really bad happens,” said then-mayor Steve Miller, referencing a deadly shooting at an Airbnb in the Bay Area several years ago. “You know, if that happened here and we did nothing, I think we’d have a lot of questions to answer.”

Councilman Daniels noted that Citrus Heights police receive “about 75,000” calls a year and said 11 calls for short-term rentals seemed insignificant. He also noted that with there being only around 70 short-term rentals compared to about 15,000 rental units in the city it seemed “like we’re a solution looking for a problem.”

“I don’t see a problem yet — I don’t want to say we need to wait ’til we have a serious problem, but I don’t even see a problem, based on the numbers,” said Daniels. “Eleven calls, with at least one property accounting for several of those calls, compared to 75,000 other calls, it seems like our energy might be better spent focusing somewhere else.

Daniels also said existing mechanisms allow for police to deal with “problem child” situations where rental owners have recurring issues, and said regulations and taxes would raise prices and contribute to the rising cost of housing — and potentially eliminate an option for homeless to obtain short-term housing.

Councilwoman Jeannie Bruins said she didn’t think Airbnb’s are being rented out to homeless people, but said such rentals are being used for homeowners to supplement their income and should therefore be required to have a business license to do so. She also advocated for limited regulations, calling for “baby steps.”

“I’d see three things to me that seem reasonable: a license, TOT, and the maximum number of guests that can stay so you don’t have 14 people camping out in a two-bedroom house,” said Bruins.

A tentative timeline posted on the city’s website lists March 24 as the date for a public hearing and a vote on adopting the proposed regulations, followed by regulations becoming effecting on May 14, 2022. Those interested in sending comments directly to the City Council members can do so by emailing citycouncil@citrusheights.net.

The draft ordinance can be viewed in full on the city’s website. (click here)