Short-Term Rental Program

As of February 12, 2018, there are 300 permitted STRs in the City of Anaheim. Here is a brief update that explains the phase out of STRs in Anaheim:

A ban on new short-term rentals and a tiered phase out of existing short-term rentals with stricter operating rules during the phase-out period was adopted on July12, 2016 and became effective August 11, 2016. As part of a settlement agreement for litigation filed by owners and the Anaheim Rental Alliance, the City Council on April 25, 2017, voted 4-3 to amend the hardship extension program. The program allows operators to request an extension to operate beyond the February 12, 2018 to recoup the costs the owner reasonably invested prior to the ban date. 

Key provisions: 

  • Prohibits permitting of any new short-term rentals

  • Owners had 18 months to phase out rentals before a ban on short-term rentals took effect on Feb. 12, 2018

  • Owners allowed to apply for a hardship extension allowing them to operate beyond Feb. 12, 2018

  • Permitted short-term rentals can continue to operate and pay city transient occupancy tax during the phase-out period

  • Visitors can continue to book with permitted short-term rentals in Anaheim during the phase out

Hardship Extension Application (Tiered Phase Out) - Hardship Extension types: 

  • 18-month “affidavit” extension for hardship under penalty of perjury; if approved, allows STR to operate during general hardship application review; extends operating period to August 11, 2019.

  • “Capped” extension where an owner demonstrates hardship and if approved, agrees to seek no further extensions beyond August 11, 2021.

  • “General” extension where an owner demonstrates hardship and if approved, is allowed to operate for a unique period of time allowing them to recoup their investments.

Hardship applications received: 289

Applications received by type (With significant overlap among all categories*):

  • Affidavit: 289

  • Capped: 21

  • General: 223

Findings so far: 

  • 289 affidavit applications have been approved, which extends their operating period to August 11, 2019

  • 50 STRs did not apply to operate beyond Aug. 11, 2019

  • 11 operators did not file any type of extension and ceased operation as of Feb. 12, 2018

  • 244 hardship extension applications are still under review

Review of STRhardship extension requests: 

As set forth in the STRAmortization Ordinances, the burden of proof to justify a hardship extension as well as the period of the extension is on the applicant. The applicant is expected to provide credible evidence for the data provided to the City. The required Data Form asks for information relating to the purchase or acquisition of the STR property and information concerning use, revenue and expenses in connection with the STR property. The applicant can choose what evidence to provide, however, if the evidence is not credible or is not verifiable when better evidence should be available, the City may determine that the applicant has not met its burden of proof as to the item of data. The application materials are being reviewed using a standardized review model with the assistance of certified accounting firm. 244 hardship extension applications are still under review. 

For additional background on the City’s Short-Term Rental Program, please visit the program updates page.

You can also view our Short-Term Rental Fact Sheet by clicking on the image below.

STR Fact Sheet Graphic