Six HOAs Ban Vacation Rentals In Dana Point, CA

It is normal for HOAs to ban vacation rentals as these types of accommodations do have negative effects on communities. Now, six associations in Dana Point have joined in on the practice.

Coastal HOAs Ban Vacation Rentals

On June 12, the Planning Commission of Dana Point voted unanimously to approve the coastal development permits (CDPs) of six homeowners associations in the city. These associations are just the latest in the growing list of HOAs that have decided to ban short-term rentals.

Four months prior, the City Council greenlit programs aimed to regulate vacation rentals in the area. Unless an association’s declaration or CC&Rs already reflected vacation rental bans prior to the Coastal Act of 1976, HOAs must apply for a CDP if they wish to prohibit vacation rentals in their communities.

Following the Planning Commission’s approval of their CDPs, six associations now prohibit short-term rentals: Ritz Pointe Monarch Beach, Marquesa at Monarch Beach, Spinnaker Run, Monarch Bay Terrace, Golden Lantern Villas, and Stringer McKenna Portofino.

Not the First on the List

There are an estimated 52 HOAs within the coastal area of Dana Point. Prior to these six HOAs, the Planning Commission had already approved the CDPs of 11 associations in April. These HOAs equate to 832 residential units. With the addition of these six HOAs, another 715 residential units join the ban.

According to staff, all of the CDP applicants thus far do prohibit vacation rentals in their CC&Rs or rules. This is one of the things that undergo a review when assessing the permit applications of each association. If an HOA allowed vacation rentals in the past, then granting them the permit may result in an impact on visitor-serving accommodations.

The program is not set in stone, though. It includes a three-year monitoring provision with the California Coastal Commission and a one-year provision with the City Council. This will allow for any reevaluations and changes to the program in the future.