Escondido could be the next city in San Diego County to regulate short-term rentals (STRs), but it could also be the first to ban them near schools.
The proposed ordinance would limit STRs to within 2% of the city's available housing stock and ban them from operating within 500 feet of schools. City staff said it originated from a Planning Commission meeting discussing possible disruption and safety concerns in residential neighborhoods near schools.
Right now, all STRs in Escondido are unpermitted. The city spent nearly 18 months surveying residents, business owners and short-term rental operators about regulating STRs.
The proposed ordinance would be a pilot program.
"City staff has reviewed the costs and benefits of running a Short-Term Rental Pilot program and recommends approving an ordinance that will create a registration process and inspection fees for short-term rentals," Escondido spokesperson Teresa Collins said in a email statement. "This recommendation was brought before the Planning Commission and Economic Development Subcommittee on multiple occasions for public comment, and the draft ordinance was created."
The permit would cost applicants $231 for an inspection fee and $250 for an annual application fee. The city estimates it would raise $280,000 annually through occupancy taxes from the permitted STRs.
Mo Rashid, who manages short-term rentals for property owners, said the ban would be unprecedented.
"I do believe in sensible regulations when it comes to short-term rentals, especially within the city of Escondido," he said. "However, this proposed ban of 500 feet from a school is not sensible, is not fair and hurts everyday hardworking American people in the city of Escondido."
Currently, there are 28 STRs operating near schools. One was listed on Airbnb for $488 for two nights. Rashid said that's money that operators such as his clients sorely need.
"They supplement their income by leaving (their homes) to get it rented out part time during the year so that they can survive," he said. "It's like Mike, who has MS, who relies on this income for his live-saving medicine."
He and attorney Jack Fernandes are calling on the city to rethink that ban. They said, if passed, Escondido would be the only city in the county to ban STRs based on proximity to a school.
“This kind of selective targeting, I want to emphasize, as an attorney, violates equal protection clause of our Constitution, which guarantees laws apply fairly to all of us," Fernandes said. "And this is not just bad policy. It's actually illegal. And we're prepared to pursue legal challenge to this ordinance if it does, in fact, pass.”
Fernandes said the ban makes no sense because a home within 450 feet of a school would not be able to operate as an STR, but the house next door could because it’s more than 500 feet away. If safety were a concern, he said motels and RV parks would also be banned within 500 feet of a school.
“There's no evidence that this would help with anything," Fernandes said. "There's no evidence that STRs have done anything aside from allow, people a safe and secure community-based place to stay for a short period of time.”
The City Council is expected to take on the issue at its scheduled 5 p.m. meeting Wednesday.
