By Jonathan Friedman
Associate Editor

November 2, 2015 --  City officials say short-term rentals catering to business people, known as corporate housing, continue to thrive in Santa Monica despite a 2004 ban.

The City Council wants to make it harder for property owners to offer this service by amending the 2004 prohibition with a ban on advertising. The council voted 5-0 on Tuesday for City staff to draw up the language.

Mayor Kevin McKeown, who raised this issue along with Councilmember Ted Winterer, said the advertisement ban was needed due to the “burgeoning corporate rentals."

Housing that is supposed to go to residents for long-term leases is being used for short-term corporate rentals, McKeown and Winterer said. They said this contributes to the housing shortage in Santa Monica.

Winterer said there was concern that in at least one building tenants were being evicted so the property owner could use the units for corporate housing.

“I think we want to get on top of this,” he said

The municipal code defines corporate housing as a service for people who live in the home for at least 30 days, but have permanent residency elsewhere.

Also, at least two of a list of amenities are provided in the home, including maid service, business meeting rooms, spa and health club or valet parking.

Corporate housing that existed in 2004 when the service was banned was grandfathered in and remains legal. The homes still eligible for it, which McKeown said are not many, would not be affected by an advertising ban.

“Home sharing,” where somebody rents a space for under 30 days and the owner lives on the property, would also not be affected by the amendment or the existing corporate housing ban, McKeown said.

“What our corporate housing law has done is prohibit those situations where it was quite clear this is being done for corporate executives in town on business and where services are being provided that are not the type of services one gets in a home,” he said.

Still, a few public speakers said they were concerned about the council’s plan.

Cara Brown, who said she rents out one of her building’s four units for short-term use, said City officials would intrusively be determining what property owners’ intentions were.

“The concept of an intention police and forbidding the advertising of our furnished units should frighten you severely,” Brown said. “This is the big brother we were warned of and may violate First Amendment law.”

She continued, “Like an autoimmune disease, your obsession against property owners is consuming this council and destroying people like us who have invested their life savings in this city.”

In a related action, last spring the council banned short-term vacation rentals. They are also alleged to reduce available housing for long-term residents. (“Santa Monica Moves to Ban Short-term Vacation Rentals,” April 30, 1015)

According to many residents, short-term vacation rentals bring noise, late-night parties, and congestion to the community.