The City recently established regulations for and to permit new short-term rentals (STR) in and out of the Coastal Zone. Linked below is the STR Permit Application.
The soonest applications will be accepted is May 1, 2023 at 9:00 am. Applications must be emailed to STR@danapoint.org.
Note, there is no waitlist or early submissions.
View the March 1, 2023, recorded STR Application Workshop with Interested Parties.
If you would like to be added to our interested parties list, please email: str@danapoint.org.
The City of Dana Point recently received approval from the California Coastal Commission (CCC) to establish regulations for and to permit new short-term rentals (STRs) within the City's Coastal Zone. The City honors the desires of each community's decision to prohibit or allow STRs. To ensure the regulations of an association is recognized, applications for an STR permit shall include a letter from the HOA confirming STRs are permitted within the community. Without HOA approval, the City will not issue the STR permit.
In the course of approving the STR program, the CCC took the position that HOAs may only deny an STR if its rule for doing so is "legal." Coastal's position is the result of two recent California appellate court decisions in Greenfield v. Mandalay Shores Community Association and Kracke v. City of Santa Barbara. There are a number of ways an HOA's prohibition may be considered legal, including if the prohibition predates 1976 or if the HOA has a coastal development permit (CDP) authorizing the ban on STRs. No action is required for HOAs that allow STRs.
The City's approved Program does not explicitly require a CDP to prohibit STRs. But for those HOAs seeking to ensure the regulations are legally defensible, the City is offering a streamlined CDP process with a reduced fee (subject to City Council approval).
HOA CDP Application Prohibiting STRs(PDF, 203KB)
View the February 28, 2023, recorded Webinar with HOA representatives discussing the City's streamlined Coastal Development Permit.
Update - February 8, 2023
At their regular City Council Meeting on February 7, 2023 (video below), the City Council authorized the City Manager to begin implementation of the Short-Term Rental (STR) Program Coastal Development Permit (CDP) issued by the California Coastal Commission for STRs in the Coastal Zone. The City Council also adopted an ordinance to amend Section 5.38 of the Dana Point Municipal Code, which among other things establishes STR Permit requirements and regulations outside the Coastal Zone, and authorized implementation of permit issuance outside the Coastal Zone.
New STR Permits
Later this month, the City will make a new application available and will offer a webinar to review the application requirements. It is anticipated that new applications will be accepted in the spring. Please note that there is no waitlist and no early submissions.
Approved Regulations
A summary of the STR regulations in and out of the Coastal Zone are as follows:
Coastal Zone STR Program
- Cap - Maximum 115 permits applies to Non-Primary, Multi-Family, and Mixed Use Parcel STRs
- No Cap - Home Stay and Primary STRs are not associated with the STR cap
- Cap Adjustment - Each time a Home Stay and Primary STR Permit is issued, the 115 cap is reduced by one (1)
- Existing STR Permits - 69
- Available new Permits - 46
Outside Coastal Zone STR Program
- Cap - Total Cap of 115 for all STR types
- Non-Primary Cap - Maximum of 60 Non-Primary STRs
Phased Implementation
25 permits will be made available for the initial phase. City Council will evaluate the program after an initial period of operation and thereafter either authorize staff to issue the remaining available permits or revise it further.
- Existing Permits - 60
- Available new permits for Phase 1 - 25
- Potentially available new permits following Phase 1 - 30
Prioritization/Compatibility
STR types that are less likely to result in a nuisance, and can be easily monitored will receive permit prioritization, with priority for permit issuance in and out of the Coastal Zone as follows:
- Primary STRs and Home Stay STRs
- Multi-Family Homestays
- Mixed-Use Parcel STRs
- Non-Primary STRs
Coastal Zone Map
View this map that will better locate your property. If you look at the layer button next to the search bar (screenshot below) you can select different layers, like the coastal zone to get more information.
Update - February 2, 2023
On November 16, 2022, the California Coastal Commission (CCC) denied the appeal and approved a Coastal Development Permit (CDP) for a Short-Term Rental Program in the CZ. A copy of the CDP approved by the CCC is provided in the following link.
CCC Approved STR Program(PDF, 158KB)
Now that the City has a CDP that enables it to regulate STRs inside the CZ, the Council is holding a meeting on February 7, 2023, to address its prior direction not to issue any new STR Permits, including outside the CZ. An amendment to Chapter 5.38 is proposed to address STRs outside the CZ and to codify the requirements of the CDP within the CZ. A copy of the City Council Agenda report is provided in the following link.
City Council Agenda Report(PDF, 2MB)
Update - October 27, 2022
The Coastal Development Permit to approve the STR Program in the City's Coastal Overlay (Coastal Zone) was appealed to the California Coastal Commission (CCC) on July 27, 2022. On September 7, 2022, the CCC held a hearing and determined that there were substantial issues with the proposed STR. As a result, the CCC will hold a public hearing for the Coastal Development Permit to review the STR Program on November 16, 2022. Below is a link to the CCC public hearing notice and a link to the CCC agenda for November.
A copy of the staff report on this matter will be available no later than 10 days before the hearing on the Coastal Commission's website. Alternatively, you may request a paper copy of the report from Shahar Amitay, Coastal Program Analyst, at the South Coast District Office (shahar.amitay@coastal.ca.gov).
Questions regarding the report or the hearing should be directed to Shahar Amitay, Coastal Program Analyst, at the South Coast District Office (shahar.amitay@coastal.ca.gov).
Update - August 2, 2022
Two parties have filed the appeals (linked below) with the California Coastal Commission (Commission) opposing the City Council's approval of the Coastal Development Permit authorizing the Short Term Permit Program. The City anticipates the Commission will consider whether the appeals raise "substantial issue" in September. The following link provides details from the Commission on their appeal procedures.
Update - July 20, 2022
There is significant interest within the community regarding the status of the City's STR Program. Currently, all existing STR permits are active, pending annual renewals, and no action is anticipated that would change their status.
Additionally, at this time, no new permit applications will be accepted. The City Council's action taken on July 12th to allow additional STR permits in the Coastal Zone is pending conclusion of the Coastal Commission appeal process. It is anticipated that regulations affecting properties outside the Coastal Zone will be considered once the STR Program in the Coastal Zone is finalized.
We appreciate your continued patience as the City develops this very important program for the community.
In 2016, the City of Dana Point created a short-term rental (STR) program. This program was implemented using the Business Regulations found in Dana Point Municipal Code 5.38. During the first year of the program, over 200 permits were acquired and operating in Dana Point. In 2017, following a public referendum, the City Council decided to stop issuing new short-term rental permits, but has allowed those with existing permits to annually renew and operate. As of October 1, 2021 there are 131 permits still operating throughout the City. Below illustrates how they are distributed across town.
In September 2020, at the Council's direction, the Planning Commission began developing updates to the existing Short-Term Rental (STR) program. The City has spent considerable time evaluating short-term rentals and needs your input to ensure the program works for both our residents and vacationers.
May 9, 2022 - Planning Commission Meeting
At the May 9th, 2022, Planning Commission Meeting the Commission (recording on youtube.com) voted to approve the Coastal Development Permit (CDP) for an updated STR program.
The CDP has been appealed to the Dana Point City Council. Council will hear the appeal at a Public Hearing during the June 21, 2022 meeting(PDF, 152KB).
June 21, 2022 City Council Meeting (Appeal Hearing - Continued to July 12, 2022)
At their June 21, 2022 meeting, the City Council voted to continue the hearing for "An Appeal of Planning Commission Approval for Coastal Development Permit CDP22-0010 to Establish a Short-Term Rental Program" to Tuesday, July 12, 2022 at 6:00PM in Council Chambers.
July 12, 2022 - City Council Meeting (Appeal Hearing)
At their Adjourned Regular City Council Meeting on July 12, 2022, the City Council approved Resolution 22-07-12-01(PDF, 1MB).
July 19, 2022 - City Council Meeting (1st Reading of Ordinance)
July 19, 2022 - First Reading of Ordinance - Amendment to Municipal Code Section 5.38 (Short Term Rental Permits)
If you would like to be added to our interested parties list, please email str@danapoint.org.
Map of Permitted Short Term Rentals - view an interactive map of Short-Term Rentals in Dana Point. STR properties are displayed as green dots. If map does not auto-populate, click on the large magnifying glass ("Change View" - see image below) and select the STR list from the drop-down menu.
In 2018, the Dana Point City Council re-initiated its effort to establish an STR ordinance. Research of potential regulations and community surveys were conducted, and on July 21, 2020, the City Council directed the Planning Commission and City staff to continue to engage the public and develop a Program for new STR permits.
A new subcommittee was formed through the Planning Commission to obtain public input to guide development of new regulations for the existing permitted STRs and the STR Program. The STR subcommittee divided these tasks into two phases. Phase 1 was completed on June 1, 2021 that amended the City's Municipal Code (Section 5.38) regulating existing STRs. The focus of the amendments was on increasing penalties and modifying regulations to address issues related to noise, parking, and trash.
Information on the past meetings includes the August 16, 2021, STR Subcommittee stakeholder meetings to discuss Phase 2 and potential regulations that would be appropriate for new STRs. Additionally, on November 8, 2021 and April 11, 2022, the Planning Commission held a public meetings to obtain initial input on the STR program. Recordings of these meetings, the minutes, and the presentation can be viewed and downloaded below.
05-09-2022 Planning Commission Public Meeting
Planning Commission Public Meeting Minutes
Information associated with Phase 1 provided below: STR stakeholder meetings took place the week of January 18-22, 2021. Recordings of these meetings can be found below, and the presentation can be downloaded.
Chapter 5.38 Short-Term Rental Business Regulations defines how these short-term rentals are to operate in town. These rules and regulations include:
- Short-term rentals shall comply with all applicable codes regarding fire, building and safety, and all other relevant laws and ordinances.
- Short-term rental units pass an initial inspection by the City prior to permit issuance.
- Short-term rentals must have a minimum of two (2) off-street parking spaces.
- All advertising for the short-term rental shall include the City-issued permit number.
- Short-term rentals will have a minimum stay of two (2) consecutive nights.
- Minimum renter age of 25 years old.
- The owner shall ensure that the occupants of the short-term rental do not create unreasonable noise or disturbances, engage in disorderly conduct, or violate any provisions of the law.
- No outside noise from the short-term rental shall be heard during the quiet hours of 10:00 p.m. to 7:00 a.m.
- The property owner/manager must respond abate all issues within 30 minutes of a received complaint and ensure there is not a re-occurrence.
To submit a nuisance complaint for an STR operating in Dana Point, please see our Submit an STR Complaint webpage.