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Plan to lift Costa Mesa short-term rental ban for L.A. fire refugees extinguished

An aerial view of homes that burned in the Eaton fire, seen on Jan. 21.
Altadena’s Eaton fire, shown above in a photo shot Jan. 21, and the Palisades fire destroyed more than 16,000 structures, causing a massive displacement of L.A. County residents. On Tuesday, a plan to offer refugees access to short-term rentals in Costa Mesa by lifting a citywide ban was rejected.
(Mario Tama / Getty Images)

A recommendation to assist L.A. County wildfire victims by suspending Costa Mesa’s short-term rental ban — allowing property owners to shelter refugees unable to return to their homes — was thwarted this week by residents with their own concerns.

Mayor John Stephens in a special council meeting Tuesday floated the idea of lifting a citywide ban on posting properties and guest houses on platforms like Vrbo and Airbnb to offer housing options for victims of the Palisades and Eaton fires entering a crowded rental market.

He suggested such a suspension might be limited to a period of 90 days up to six months and offered only to residents of ZIP Codes known to be affected by the Jan. 7 firestorms.

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“My intention is to do something out of a humanitarian heart for people who are hurting right now and need a short-term solution,” Stephens said, explaining that refugees seeking longer term housing solutions might find them in Costa Mesa.

“I advocated for and I support the short-term rental ban,” Stephens continued. “I just think in this situation desperate times call for desperate measures.”

Public commenters, however, expressed concerns that an easing of the 2021 citywide moratorium — which allows only shared-housing arrangements, in which owners also live on site, already in existence prior to the ban — would create more problems than solutions.

Flo Martin recalled historic problems with neighboring houses being rented out for loud and reckless weekend parties. Others said allowing homeowners to offer sites on a short-term basis would only deplete the inventory of long-term rentals, for both locals and for fire victims who could be displaced for several months.

A 45-day moratorium prohibits the short-term renting and advertising of properties on sites like Airbnb and VRBO. Officials say the move will buy time while they craft laws to prevent and regulate bad actors.

“We’re concerned the resolution, as written, would incentivize landlords and hosts to mass convert long-term units into short-term rentals,” said Becca Ayala, a director for nonprofit advocacy group Better Neighbors LA.

“Meanwhile, thousands of people displaced by the fires and needing shelter who need long-term rentals for their families to live in might find that housing turned into tourist lodging.”

Council members largely agreed with speakers, especially after receiving confirmation from City Manager Lori-Ann Farrell Harrison that there have not been any known requests from organizations seeking hotel spaces or temporary housing for Palisades and Eaton fire refugees.

“I just feel like this issue is a lot more complicated than the ability to just lift [the moratorium] temporarily,” said Councilwoman Andrea Marr.

Councilwoman Arlis Reynolds proposed not taking any action on the matter, saying discounts being offered by local hotels for fire victims, in addition to rentals available for longer than 30 days, already offer options for those displaced.

She further reminded the council Costa Mesa’s ban on short-term rentals was partly inspired by a citywide housing crisis.

“We were dealing with the negative impacts of some short-term rentals,” Reynolds recalled. “But really the concern we talk about at almost every council meeting is the housing crisis in Costa Mesa and the challenge of people using existing housing stock for short-term business rentals. I think it’s really important to continue that protection.”

Ultimately, council members voted 5-2 to receive and file, taking no action on the item.

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