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Sacramento Leaders Consider Restricting Short-Term Rentals

SACRAMENTO (CBS13) — Some Sacramento city leaders are concerned about a bait and switch tactic, with developers saying they're going to build new apartments, then turning them into short-term hotel rentals.

Sacramento renters say it's a struggle to find an affordable place to live.  "You're not going to find one, it's zero to none now," Kevin Carter, Affordable Housing Expert, said.

There's also a concern that current apartment units, and those under construction, could be converted to hotels or short-term rentals like Airbnb, where owners could make between $80 and $100 more a night.

"It's displacement, one income for another income," Carter said.

Now city leaders are considering a proposed new law that could restrict those conversions.

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"An apartment building that was approved as residential shouldn't be converted into a short term rental. That's just not okay for the neighborhood, it doesn't help our residents who are feeling the pressure of the state's housing shortage," Sacramento City Councilmember Steve Hansen said.

The new rental rules would require permission from the city before a rental housing property can be converted into an Airbnb.

"We want to show that there's a strong disincentive for that," Hansen said.

It's an idea that is supported by renters' rights advocates.

"It's a good thing and its necessary, it's needed," Carter said.

But, Sacramento also lacks enough hotel rooms to host major events like the NBA All-Star game. The city's goal is to encourage more of both.

"We love hotels, we love housing, we want both and we've got room for both, but we shouldn't take one to turn it into the other," Hansen said.

City leaders will consider the new ordinance at their meeting next Tuesday.

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