Hermosa Beach council faces sharp debate over short-term rentals and disclosure concerns

Hermosa Beach City Council members spent a large portion of their June 9 meeting addressing the local impact of short-term rentals and how the city should respond after state court rulings made the rentals legally available.

Residents told the council they are worried that long-term rental housing will be lost to short-term rental conversions and urged policies to prevent landlords from using no-fault evictions to convert housing into vacation rentals. “If a tenant is asked to leave because a property needs major renovations … that process should not become a backdoor way to convert long-term housing into Airbnbs,” resident Eric Horn said, asking the council to consider a time-limited prohibition on converting units vacated through no-fault evictions.

The request followed several public comments urging city staff to examine short-term rental registration and taxation. Another resident raised concerns about the city’s proposed tax-collection portal for transient-occupancy taxes, saying the vendor form asks for operational details and includes a perjury attestation that may be inappropriate for hosts who simply want to remit tax revenue.

At the dais, councilmembers debated whether to wait to see how revenue collection unfolds — one councilmember pointed to revenues collected in nearby Manhattan Beach — or to move proactively by drafting local regulations. Councilmember Francois signaled staff will return with options, and the city manager confirmed an action item is planned that would present regulatory choices for council consideration.

The discussion grew heated when Councilmember Jackson, participating remotely, pressed for disclosure about whether any council member had a financial interest in short-term rental activity. That line of inquiry prompted an interjection from the dais and an audience member who later told Jackson his “accusations are unfounded and your facts are so confused,” underscoring the tension in a conversation that several members urged to be continued in a properly noticed future agenda item.

The council did not make any policy changes on June 9. Instead, members asked staff to return with options that could include restrictions on properties vacated through no-fault evictions, tax-collection clarifications, and other measures to preserve long-term housing stock while protecting residents’ rights and city revenue interests.

The council directed staff to schedule a formal discussion in a future meeting so the community can be heard and staff can provide legal and operational analysis. That item will be added to the council agenda for further public discussion and possible action.