Home-Sharing Program

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14 min to read

Los Angeles, USA

About the city. As in all of America, housing in Los Angeles is expensive. Moreover, many people come to the city for work and leisure and they need to live somewhere safely.

Goal

The main idea is to restrict short-term rentals to one’s primary residence, in order to prevent the wholesale conversation of homes into rental properties.

Implementation period. In December 2018, the City Council adopted the Home-Sharing Ordinance (CF 14-1635-S2). On July 1, 2019, the Department of City Planning opened the home-sharing online registration portal.

Fact

Short-term rental (STR) refers to any portion of a residential building that is designed or used for occupancy for 30 consecutive days or less per month. STRs are prohibited in the vast majority of the City except through a Conditional Use Permit. With the growth of online rental services, however, the City experienced a significant rise in this activity.

Solutions

https://youtu.be/ZwtNyF62uWw?t=1102s

The launch of the online registration system begins the implementation of the recently adopted Home-Sharing Ordinance, which establishes a regulatory framework to allow hosts to share space in their primary residences while preventing the wholesale conversion of homes into full-time short-term rental properties.

The Home-Sharing Ordinance requires hosts who would like to engage in short-term rentals to register with the City and post their registration number on all advertisements. Hosts must follow all requirements and use the online portal to register.

Registering for the Home-Sharing Program

To register for home-sharing, hosts will need to complete an application, which can be done entirely online. The application can be accessed here, or from the Home-Sharing page on City Planning’s website by clicking on the “Development Services” tab and looking for the Home-Sharing link under “Quick Links.” The City has been accepting applications for home-sharing since July 1, 2019, and enforcement of the Home-Sharing Ordinance (Ordinance No. 185931) began on November 1, 2019. The steps for registering, eligibility requirements for home-sharing, and other important information are further explained below.

What to do to participate in the Home-Sharing Program

Verify eligibility criteria
For renters and lessees, obtain a notarized affidavit signed by the property owner/landlord authorizing the Host’s participation in Home-Sharing
Gather relevant documents to demonstrate primary residency
Complete online registration
Post Home-Sharing Registration Number on all listings

Eligibility Requirements

There are two types of home-sharing registrations available to qualifying hosts. Standard Home-Sharing (allows up to 120 days per year) and Extended Home-Sharing (allows more than 120 days per year). Eligibility serves as a basis for both types of registrations which are the following:

The apartment or home is his or her primary residence
The residence must not be subject to the City’s Rent Stabilization Ordinance (RSO)
Home-Sharing will only occur in a structure built for residential use
The primary residence or property cannot have any pending citations, order, ticket, or similar notice of violation
Anyone renting will have to obtain written approval from their landlord
Hosts will need to register to pay the Transient Occupancy Tax
Hosts must be in possession of a valid Home-Sharing registration number and post that number in all listings.

In order to apply, you must make sure you have the following documents on-hand:

A valid federal or state-issued photo ID
Two documentations of the primary residence
Landlord approval: If the host is a renter or lessee, a signed and notarized Affidavit (available here) that approves the host’s participation in home-sharing for that unit.

In addition, there are several rules and responsibilities that hosts must follow to hosting requirements:

Hosts must only post listings on hosting platforms that are specified in the home-sharing application.
Hosts must not book more than one set of guests at a given time.
Hosts must not engage in any commercial uses for purposes of a party or an event.
Hosts must ensure that basic health and safety features are provided, including fire extinguishers, smoke detectors, and carbon monoxide detectors.
Hosts must not permit late-night outdoor parties.
Hosts must adhere to occupancy limits, which allow for a maximum of two persons (excluding children) per habitable room.
Hosts must provide a Code of Conduct to all guests.

What are the registration fees?

The fee for a home-sharing registration or renewal is $89. There is an additional fee for review of extended home-sharing applications of $850. For extended home-sharing applications that require further discretionary review, the application fee is $5,660. The fees help fund the operation and enforcement of this ordinance.

What areas of a home can be used for home-sharing?

Any areas approved for residential use in accordance with definitions established by the Department of Building and Safety. This includes a room or an entire home. Parts of the property that are not approved for residential uses typically include garages, storage rooms, attics, recreation rooms or temporary structures.

Challenges

Problem. Do hosts need to be home when they are hosting guests?

Solution. No, the City does not differentiate between “hosted” and “unhosted” stays. For example, a host may rent out their entire home while they are out of town. However, they must be able to demonstrate that they are only renting out their primary residence, which is where the host lives for more than six months in a year.

Problem. Can hosts rent out several rooms separately?

Solutions. Hosts may maintain several listings at the same property; however, only one listing may be booked at a time. For example, a host may have two separate listings for two separate bedrooms in their home but may rent to only one set of guests under one booking at a time.

Problem. What if a host has been renting their property for years?

Solution. The new regulations apply to all properties engaging in short-term rental in the City of Los Angeles, including those that engaged in short-term rentals prior to the ordinance being adopted. To continue legally operating a short-term rental, hosts need to complete a home-sharing registration.