🎯 STRisker: Bulletin - Santa Cruz, CA
ADUs, JADUs, and the Short-Term Rental Question: Council updates rules, eyes short-term rental options for homeowners
Santa Cruz Opens the Door to ADU Flexibility
Photo by cozycozy.com
Santa Cruz is fine-tuning its housing policies, and accessory dwelling units (ADUs) are at the center of the conversation.
At Tuesday’s meeting, the City Council unanimously approved updates to ADU and junior ADU (JADU) regulations to align with California’s latest state laws.
The changes may seem technical, but they matter for homeowners. ADUs and JADUs will now be measured by interior livable space instead of exterior walls, making the process more consistent. JADUs also gained the same fire sprinkler and fee exemptions as ADUs, and the city removed the requirement for owner occupancy if a JADU has its own bathroom. Rentals must still be longer than 30 days, keeping them out of the short-term rental category for now.
Santa Cruz City Council
But the real spark came from a planning commission recommendation: allowing short-term rentals in primary dwellings with ADUs.
The idea would cap rentals at 90 days per year and seven consecutive days at a time, but only if the property is the owner’s main residence. Senior Planner Clara Stanger said this could give homeowners more flexibility, though enforcement remains unclear.
Councilmember Susie O’Hara voiced caution, worrying about “a lot of different people potentially coming in and out” under those limits. Yet Councilmember Renee Golder saw opportunity, noting the city could regain transient occupancy tax revenue lost when ADUs were excluded from STR eligibility.
The amendments will return for a final reading on February 24, with staff promising a deeper dive into short-term rental impacts. Councilmember Shebreh Kalantari-Johnson requested that STR policy for ADUs be revisited in the next annual update, signaling that this debate is far from over.
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