SAN FRANCISCO—Mayor Edwin Lee has signed a board of supervisors-approved Short-Term Residential Rentals Ordinance to provide city's regulation on sharable housing. Board of supervisors president David Chiu was the chief sponsor of this short-term residential rental legislation that creates procedures for users of sharing economy companies such as Airbnb, including a registry administered by the Planning Department for tracking short-term residential rentals, and establishes an application fee for the registry.

“As the birthplace of the emerging, more sustainable sharing economy, San Francisco must be at the forefront of nurturing and regulating its growth by modernizing our laws and confronting emerging policy issues and concerns,” said Lee. “Today I am proud to sign this landmark piece of legislation, developed over two years by board president David Chiu working with diverse stakeholders, that regulates homesharing. Now, San Franciscans who just want to share their home with occasional visitors will have a clear set of rules and restrictions to earn extra money to make ends meet and enjoy a better quality of life in our city for themselves and their families.”

The legislation reinforces the prohibition against the conversion of residential housing into full-time de-facto hotels. It would only allow primary residents that live in their apartment to rent short-term on a limited basis to help supplement their housing costs. Resident must live in the unit as their primary residence for no less than three-quarters of the year. Secondary or vacation homes that do not have permanent residents occupying them would not be granted permission, so that the residential housing stock is protected in the midst of the current affordability crisis.