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Overturn Hermosa's Vac Rental Ban!

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ABOUT JIM
Jim Holtz owns a condo in Hermosa Beach that he rents as a short-term vacation rental (STVR) to families that come from all over the world to enjoy Hermosa's beautiful beaches. Jim's condo is not just his only property for rent; it is his sole source of income because he has a disability with no cure and cannot work. Jim's wife is also recently disabled after suffering a brain aneurysm in 2004. The ability to rent their condo short-term has never been more important. There are many others that rely on this income as well. Some media outlets portray all vacation rental owners as predatory landlords that evict long-term tenants to earn a bigger buck, but this is simply not true. Most STVR owners I know are like Jim and his wife: middle-class Americans that greatly depend on the income from their STVR.

HERMOSA BEACH'S BAN (IN A NUTSHELL)
The city of Hermosa Beach recently made it illegal to rent residential property for less than 30 days. The ordinance forces fees between $2500-$10,000 upon property owners and travelers that stay in their home.  Each night a traveler stays in a vacation rental is a separate violation for both the STVR owner and traveler.  After the third violation, the City may prosecute for a misdemeanor and jail time.

BUT A STATE AGENCY SAYS THE BAN IS ILLEGAL
The California Coastal Commission (CCC), a state agency formed in 1972, exists to protect public beach access along California's beautiful coastline, in keeping with the Coastal Act. The CCC wrote two very strongly worded letters to the Hermosa Beach City Council prior to the passing of their ban (May 9 letter , May 24 letter ). They deemed the city's proposed ordinance would violate the Coastal Act because it would remove an entire class of accommodations in the Coastal Zone. The CCC warned the city that passing this ordinance would invite litigation against the city as well as the city council members. Still, Hermosa Beach passed their ban, which was enacted on June 24, 2016.

HOLTZ VS. THE CITY OF HERMOSA BEACH
Jim took a brave leap of faith and retained an attorney to challenge the City of Hermosa Beach. His attorney, Alan Block of Block & Block , is the former attorney for the Coastal Commission and knows the local issues pertinent to this case better than anyone.  He stated that STVR's have an excellent chance of winning. Here is a summary of the Holtz vs. Hermosa Beach case, written by the Los Angeles Short Term Rental Alliance.

HOLTZ MAKES WIDESPREAD MEDIA COVERAGE
Since filing his lawsuit against the city, Jim’s story has been covered by various TV, web, and print media outlets. Watch Jim on NBC , CBS , or read about Jim on the EasyReader, Daily Breeze , The Beach Reporter , and Patch

HERMOSA BEACH'S DEFENSE
The key issue in this case is that Hermosa Beach Municipal Code (HBMC) did not have any mention of vacation rentals, short term rentals, rentals of less than 30 days, or even a relevant definition of 'hotel' that would apply to vacation rentals, prior to the passing of their recent ban. The city maintains that vacation rentals were illegal already, but have not been able to produce the applicable code when asked. Because the City did not have a valid STVR Ban in the Municipal Code, they have not cited a single person for short term rentals and only produced a few discouraging letters over the years.  Without a previous ban in place, the city would have required a Coastal Development Permit (CDP) to regulate vacation rentals in the Coastal Zone of Hermosa Beach (the Coastal Zone is most land west of Ardmore). Because the city did not obtain a CDP, their ordinance should be overturned.

IT'S TIME TO PROTECT YOUR VACATION RENTAL!
Unfortunately, we are dangerously close to never knowing whether the ban has to be overturned. WE NEED YOUR HELP! Contributing to this legal fund is a *localized, specific use of money.* Although Jim has donated a significant amount to the cause already, **all new funds will go towards the attorney first, so we can ensure that the case will be heard.**

WHAT IF MY PROPERTY IS OUTSIDE THE COASTAL ZONE?
This will still benefit your property because if the ban is overturned, Hermosa Beach will have to start from scratch, hold more public hearings, obtain a CDP (the CCC has never approved a total ban on STVRs in a residential zone), and may have to conduct an Environmental Impact Report or EIR (which takes time). Not to mention, there are very few STVRs outside the coastal zone so it is possible the city will not go through all that trouble just to regulate a dozen vacation rentals. But at the very least, contributing to this lawsuit can buy you time to continue renting your property short-term.

WHAT IF MY PROPERTY ISN'T IN HERMOSA BEACH?
STVR owners in all coastal cities (Manhattan Beach, Redondo Beach, Torrance, and Los Angeles communities such as Venice, Playa del Rey, San Pedro, Palisades) will also benefit from this lawsuit if the judge rules in Jim's favor. Other cities are certainlg watching this lawsuit. If we overturn Hermosa Beach's ban, other coastal cities will tread cautiously when attempting to write new ordinances that regulate vacation rentals in the coastal zone.  This lawsuit will most likely set a precedent to have other STVR bans overturned in the future.

COASTAL ASSOC. OF SHORT TERM RENTALS
We have formed a Trust, CoASTR (pronounced like "coaster”) to which your contribution will be directed. Again, all new funds will go towards attorney fees to ensure our case is heard!


THE PRELIMINARY INJUNCTION HEARING IS SET FOR AUG. 25th
Please contribute today - attorney fees are due immediately. The best chance the city has of winning the case is by its opponent running out of funding for the Attorney. In that case, the city will win by default.

WHAT WILL HAPPEN AT THE PRELIMINARY INJUNCTION?
A Writ of Mandate has been filed to force the City to follow the law.

The Judge will ask. . .

"Was there a prior STVR ban in the HBMC?"
          No

"Did the City obtain the required CDP from the CCC?"
          No

"Will the CCC approve a CDP for such a STVR Ban?"
          No (We will have an affidavit from the CCC confirming this fact)

Yes, it appears to be a slam dunk, but of course the judge could always rule in any direction. Regardless, we may never get to find out unless contributions start rolling in immediately. The weight of the attorney's fees has rested mostly on the shoulders of one man (Jim). To move forward with the hearing, your financial contribution is needed -- it's time for the rest of Hermosa Beach (and surrounding cities) to step up and protect their properties, too.

WHAT ARE THE POSSIBLE RESULTS OF THE HEARING ON AUGUST 25TH?
The winner of the Preliminary Injunction almost always wins the court case, so usually it ends there.

If the Judge rules in favor of the City…
In the unlikely event of that happening, it would be doubtful we would win the case under the same merits. So, for us it would end here.

If the Judge rules in favor of STVRs…
Hermosa Beach appears to be determined to push the issue as far as they can, so we may need to go to trial. The City cannot enforce the ban on STVRs until the trial in 8-10 months.  Which means you can LEGALLY rent your STVR for that time period.
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Donations 

  • David Scott
    • $200 
    • 8 yrs
  • J. D
    • $1,000 (Offline)
    • 8 yrs
  • W F
    • $1,000 (Offline)
    • 8 yrs
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Organizer and beneficiary

Lauren Amarante
Organizer
Hermosa Beach, CA
Jim Holtz
Beneficiary

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