Short term rentals are prohibited in the single family (R-1) Zoning District. In the commercial and R-4 districts, we have two types of permits: Legal Non-conforming and Housing Incentive Permits.  The Legal Nonconforming Permits are permits that were issued prior to the adoption of our ordinance (below).  These permits do not expire and may be transferred to a new owner upon transfer of sale of the property (the permit runs with the land and may not move from one location to another).  The Housing Incentive Permit would be for new permits which would be issued as an incentive for creating new and affordable housing units in the city (see below).  

CMC 17.14.040.W. Transient Rentals. With the exception of lawfully permitted hotels, motels and transient rentals, transient lodging of residential dwellings for remuneration is prohibited in the CC, SC and RC districts. Permitted transient rentals are limited to the following:

1.    Transient Rental, Legal Nonconforming. Transient rental units permitted prior to the effective date of Ordinance 2019-03 are classified as a legal nonconforming use as defined in CMC 17.68.090. Transient rental permits are allowed in perpetuity and the six-month abandonment provisions contained in Chapter 17.36 CMC shall not apply.

2. Transient Rental, Housing Incentive. Transient rental units are permitted in the CC, SC, RC and R-4 districts as an incentive for the creation of new rental housing units. One transient rental unit is permitted for the creation of three new rental units; one of the new units on the site shall be rented as “low income” and the second unit shall be rented as “moderate income” as defined in CMC 17.70.020. The third rental unit may be rented at market rate.

a.    Rental units created through this incentive program are subject to the density provisions identified in CMC 17.14.030.

b.    Two of the rental units must be a minimum of 650 square feet in size.

c.     The transient rental may be located at the same site as the three new rental units, or elsewhere within the CC, SC, RC or R-4 district.

d.    Transient rentals permitted as an incentive require the issuance of a conditional use permit, must be maintained at the original site of approval, and are not classified as legal nonconforming as defined in CMC 17.68.090.

e. Transient rentals require one off-street parking space per unit in all districts.

17.08.060 Prohibited Uses.

https://www.codepublishing.com/CA/CarmelbytheSea/#!/Carmel17/Carmel1708.html#17.08.060

17.28.040 Advertising of Unpermitted Transient Rentals.

https://www.codepublishing.com/CA/CarmelbytheSea/#!/Carmel17/Carmel1728.html#17.28.040