Short Term Vacation Rentals Ordinance ($1,500) Bond - City of Monterey Park, CA in California

Brief Summary

Monterey Park will not issue a short-term rental permit until the $1,500 bond is in the application packet, and the surety has to carry an A.M. Best rating of at least A-. Order it early, because the neighbor notice period means the rest of your application cannot be filed in a hurry anyway.

Under Monterey Park Municipal Code Section 21.09.130, an owner applying for a Short-Term Rental Permit must file a $1,500 surety bond naming the City of Monterey Park as obligee. The bond guarantees payment of any civil penalty assessed for violating the short-term rental chapter and left unpaid. It applies to dwellings rented for less than 30 consecutive days.

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How to Apply for a Short Term Vacation Rentals Ordinance ($1,500) Bond:

• Mail notices to occupants within 200 feet at least 30 days before filing and complete the affidavit of mailing.
• Register for transient occupancy tax through HdL.
• Order the $1,500 bond on the city's form from a California licensed surety rated A- or better by A.M. Best.
• Fill in the rental property address and owner name exactly as on the application.
• Submit the bond with the notarized application, nuisance plan, insurance proof, hold harmless statement, radius map and fee.
• Notify the City Planner when you stop operating so the bond can be returned.

Detailed Information About the California Short Term Vacation Rentals Ordinance ($1,500) Bond:

Who needs it

Monterey Park regulates short-term rentals under Chapter 21.09 of its Municipal Code. A short-term rental is a dwelling unit, other than a hotel or motel, rented for a period shorter than 30 consecutive days. The property owner, or an authorized agent, applies to the Planning Division, and the city's checklist lists the $1,500 surety bond as a required item at submittal.

What the bond pays

This is not a general guarantee of good behavior. The city's bond form, issued under MPMC 21.09.130, guarantees payment of a civil penalty assessed under Chapter 4.20 for noncompliance with Chapter 21.09 that the owner fails to pay. The city's bond section notes this covers fines assessed against the permittee or against a tenant or other occupant of the rental. If the city has to sue on the bond, the surety also owes court costs and reasonable attorney fees, but total liability never exceeds $1,500.

Surety and form rules

The bond must be written by a surety licensed in California with an A.M. Best Financial Strength Rating of at least A-, on the city's form, with the City of Monterey Park as obligee and the rental's address filled in. The surety can cancel on 30 days' written notice to the city. You can swap in a substitute bond at any time after the permit is issued, and the Director returns the old one once the new one is approved.

When you stop renting short term, file a notice with the City Planner. The bond is returned within 30 days after the city confirms there are no pending enforcement actions.

The rest of the packet

At least 30 days before you file, you must notify occupants of every home and business within 200 feet and sign an affidavit of mailing. The packet also needs a notarized administrative application, a nuisance response plan, transient occupancy tax registration through HdL, proof of homeowner's or renter's insurance, a notarized hold harmless statement, a radius map with ownership list, and the filing fee from the City Council's fee schedule.

Eligibility and Requirements for a California Short Term Vacation Rentals Ordinance ($1,500) Bond:

• Bond amount of $1,500.
• City of Monterey Park named as obligee.
• Surety licensed in California with an A.M. Best rating of A- or higher.
• Bond issued on the city's form referencing MPMC Chapter 21.09.
• Property owner as principal, with a notarized owner signature on the application.

California Short Term Vacation Rentals Ordinance ($1,500) Bond FAQs:

Official and Additional Resources for the California Short Term Vacation Rentals Ordinance ($1,500) Bond: