🎯 STRisker: Bulletin - Solvang, CA
Solvang’s STR Ordinance: Keeping Homes Local, Keeping Tourism Alive
Solvang’s STR Ordinance: Tourism vs. Housing
Solvang’s City Council meeting began with laughter and charm as six-year-old Carter Levine took the honorary role of “Junior Mayor of the Day.” But once the smiles settled, the council turned to serious business: updating the city’s short-term rental (STR) ordinance after a year of research and development.
The ordinance, first adopted as an emergency measure in 2014 and codified in 2016, has struggled to keep pace with the rapid growth of platforms like Airbnb and VRBO. Community Development Director Rafael Castillo explained that the existing rules lacked enforcement tools, safety requirements, and caps on permits. They also failed to address housing availability concerns, especially as California pressures cities to preserve long-term housing.
The council unanimously accepted the first reading of the ordinance amendment, which will face final judgment on March 9. Among its key provisions:
🏘️ STRs will only be allowed in the Village Mixed-Use area, reinforcing Solvang’s tourism focus.
🖨️ Existing STRs in R3A lots may continue on a non-conforming basis, but permits won’t transfer when properties are sold.
🏨 A cap of 40 vacation rentals will be imposed, with the current count at 25 (soon to drop to 20 when two units are reclassified as hotels).
🛖 STRs will be prohibited in accessory dwelling units and in developer “lot splits” that exploit affordable housing loopholes.
🚑 Mandatory safety inspections, occupancy limits based on bedroom counts, and neighbor notifications within 300 feet will be required.
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Public comment highlighted the need to distinguish between whole-home vacation rentals and owner-occupied home stays. Resident Suzie Townsend urged the city to revisit this distinction.
The ordinance also introduces stronger enforcement. Violations will trigger graduated penalties, ranging from administrative citations to misdemeanor charges. Castillo emphasized that compliance will be prioritized over punishment, noting that recent outreach to 25 property owners outside the Village area achieved 100 percent voluntary compliance.
Advocates for housing affordability see the ordinance as a step toward protecting residential neighborhoods and advancing anti-displacement strategies. Critics, however, worry that limiting STRs could stifle entrepreneurial opportunities for residents who rely on rental income.
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