Hermosa Beach Sued Over Ban on Short-Term Rentals

Hermosa Beach, CA — A homeowner has sued the city of Hermosa Beach over its recent ban on short-term vacation rentals in residential areas.

The suit, filed June 27 by Jim Holtz, alleges the city committed a “prejudicial abuse of discretion” by not obtaining approval from the California Coastal Commission before approving the ban.

Holtz, who lives in San Pedro, owns a property in Hermosa Beach he regularly rents out. He has been one of the most vocal opponent of the recent ordinance.

In court documents, the city said it has been receiving complaints from residents about short-term rentals, such as AirBnB, and that was the reason why it adopted the new ordinance.

Under the California Coastal Act, cities such as Hermosa Beach that has territories in the coastal zone, must have a Local Coastal Program certified by the Coastal Commission in order to make local zoning decisions. Hermosa Beach is in the process of getting the LCP approved.

The suit alleges that the city must obtain a Coastal Development Permit from the commission for any development decisions taking place in the coastal zone. The suit argues that the ban constitutes "development."

The Coastal Commission, notified by Holtz, sent letters to the city cautioning the city about approving the ordinance.

In response to Holtz's suit, the city attorney argues that Hermosa Beach already had a short-term rental ban in place and the new ordinance merely clarify "existing prohibition," according to court documents obtained by Patch.