🎯 STRisker: Bulletin - Nevada City, CA

Nevada City Prepares New Short‑Term Rental Ordinance for November Ballot

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With staff transitions behind them and a new city manager in place, Nevada City leaders are moving forward with a plan to overhaul the city’s short‑term rental ordinance. The changes will go before voters in the November 3, 2026 General Election.

City Manager Carrie Wright, hired in March after the abrupt departure of Sean Grayson, told the Economic & Community Development Committee that staff are working with the city attorney’s office to refine a draft ordinance. The goal is to complete an internal version by the end of this month, allowing time for council review, stakeholder engagement, and revisions before the August 7 deadline to place the measure on the ballot.

Hosted Short-Term Rentals | Nevada City, CA

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📦 Why a Ballot Measure Is Needed

Because the existing STR ordinance was adopted by voters, the city council cannot amend it directly. Instead, Wright and the committee plan to present a new ordinance alongside a companion measure to repeal the current rules. The council has authority to place the measure on the ballot without requiring a citizen petition.

Delays in preparing the ordinance stemmed from staff turnover, including the departures of Grayson and City Planner Lisa McCandless, who had been leading the effort. Wright acknowledged that key background information and prior direction were not fully conveyed during the transition. “We must comply with what is already in books until we change it,” she said, noting confusion among staff about annual STR processing.

📖 Draft Ordinance Highlights

Public workshops since 2023 identified four broad areas for improvement:

The draft ordinance introduces two categories:

Permits issued under the current ordinance would be converted into these definitions. Importantly, the committee recommended that the council be allowed only to maintain or reduce the number of permits annually, not increase them.

🍃 Cannabis Ordinance Provides Context

While STRs dominated the committee’s forward‑looking agenda, members also revisited stalled changes to the city’s cannabis ordinance. Wright discovered draft versions prepared last year, including proposals to lower cannabis business taxes, eliminate excise taxes on medical sales, expand event opportunities, and allow on‑site consumption.

Committee members and industry representatives argued that such changes could strengthen Nevada City’s cannabis businesses and attract visitors. Mayor Adam Kline noted that reducing taxes could make local dispensaries more competitive than county counterparts. Diana Gamzon of the Nevada County Cannabis Alliance emphasized the potential economic impact, saying visitors drawn by cannabis events also spend money at restaurants and other establishments.

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Looking Ahead

The November vote will give residents the chance to decide how Nevada City balances tourism, housing, and neighborhood stability. Hosted rentals may provide a compromise, allowing homeowners to earn income while maintaining community oversight. Whole‑house rentals, however, remain contentious, with advocates calling for caps or elimination to preserve housing stock.

The next regular meeting of the Economic & Community Development Committee is scheduled for May 11, where discussions on both STRs and cannabis ordinances are expected to continue.

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