Overview

For California HOAs located in designated coastal zones, authority over short-term rentals does not begin with the Davis-Stirling Act. It begins with the California Coastal Act. When an HOA adopts or enforces short-term rental (“STR”) bans, minimum-stay requirements, or other occupancy restrictions in the coastal zone, those rules are subject to the Coastal Act’s approval requirements and the oversight of the California Coastal Commission.

California courts have consistently held that STR regulations in the coastal zone can constitute “development” under the Coastal Act because they change the intensity of land use and affect access to coastal resources. When that occurs, HOAs may not rely on Civil Code 4740 or Civil Code 4741 to impose or enforce STR restrictions unless the regulation has first complied with the Coastal Act. In short, Coastal Act compliance is a prerequisite, not an optional overlay.

This Fact Sheet explains how and why the Coastal Act overrides HOA authority under the Davis-Stirling Act relating to homes located in designated coastal zones, how STR restrictions qualify as “development,” why these limits apply to both condominiums and single-family homes in HOAs, and what homeowners should understand when an HOA attempts to regulate or ban short-term rentals along the California coast.

You may first want to read my Fact Sheet on rental restrictions in California HOAs, “Can My California HOA Stop Me From Renting Out My Home or ADU?”

Alternatively, if you want a deeper dive into HOA rental restrictions, I break down the issue in detail on an episode of my podcast, HOA HELL, titled “Can My California HOA Stop Me from Renting Out My Home?” I’ve also addressed related rental-restriction issues in other HOA HELL episodes.

Key Points

HOA authority over short-term rentals in California changes fundamentally once the property lies within the coastal zone. The following key points explain the legal hierarchy, the scope of Coastal Commission authority, and the resulting limits on HOAs.

• The California Coastal Act controls STR regulation in the coastal zones. The Coastal Act establishes statewide land-use policies that override conflicting local ordinances and state statutes (like the Davis-Stirling Act). When short-term rental restrictions affect land-use intensity or access in designated coastal zones, the Coastal Act governs first, regardless of what an HOA’s governing documents or the Davis-Stirling Act might otherwise allow.
• Civil Code 4740 and Civil Code 4741 do not independently authorize STR bans in homes located in designated coastal zones. While those provisions of the Davis-Stirling Act generally govern rental restrictions in California HOAs, they do not supersede the Coastal Act. HOAs that regulate occupancy and rental use in designated coastal zones exercise land-use control, and courts in California have held that private status does not exempt HOAs from Coastal Act compliance when their rules affect land-use intensity or access. This means that if your home is located in a designated coastal zone, your HOA may not rely on the Davis-Stirling Act to impose STR bans or minimum-stay rules unless those restrictions have first complied with the California Coastal Act.
• Short-term rental regulations can qualify as “development” under the Coastal Act. The Coastal Act defines “development” broadly to include changes in the intensity of use or access to land. Courts have consistently held that regulating or banning short-term rentals alters how property is used and occupied, bringing those rules within the Coastal Act’s definition of “development.”
• Minimum-stay requirements are not exempt from Coastal Act scrutiny. Rules requiring rentals of 30 days or longer can still change land-use intensity or affect access. That means that if your property is located in a designated coastal zone, such requirements may require California Coastal Commission approval or certification through the applicable local coastal regulatory framework (i.e., LCPs, which I discuss below).
• The Coastal Act requires cities and counties to regulate coastal land use through an approved Local Coastal Program (“LCP”). The Coastal Act does not allow local governments to regulate land use in designated coastal zones informally. Each city or county must adopt a LCP that governs development, land use, and access in the coastal zone, subject to California Coastal Commission approval.
  • For homes located within designated coastal zones, the California Coastal Commission must certify or approve LCPs and amendments before STR rules are enforceable. A city or county’s STRs have no legal effect in designated coastal zones unless the Coastal Commission has certified the LCP or approved an amendment addressing those restrictions.
  • HOAs cannot rely on local STR ordinances that lack Coastal Commission approval. If a city or county adopted a short-term rental ban or minimum-stay rule without Coastal Commission approval, an HOA may not rely on that ordinance to enforce similar restrictions if the properties within their associations are located within a designated coastal zone.
• Only local governments and the Coastal Commission may approve STR regulations in designated coastal zones. Courts have held that decisions to regulate or prohibit short-term rentals in coastal areas must occur through Coastal Act–compliant processes. HOAs cannot unilaterally impose those restrictions.
• The Coastal Act preempts conflicting state laws. When the Davis-Stirling Act conflicts with the Coastal Act’s objectives, the Coastal Act prevails by statute. HOA reliance on state HOA law does not cure Coastal Act noncompliance.
• These limits apply to condominiums and single-family homes alike. The Coastal Act does not distinguish by housing type. Courts apply the same analysis to STR restrictions affecting condominiums and single-family homes within applicable HOAs.
• HOAs located within designated coastal zones must confirm Coastal Act compliance before enforcing STR rules. An HOA that adopts or enforces STR restrictions in the coastal zone without Coastal Commission approval risks enforcing an invalid rule and exposing the association to legal challenge.
• Existing STR restrictions are not automatically valid for properties located within designated coastal zones. Long-standing HOA rental rules may still require Coastal Act review if they affect land-use intensity or access and were adopted or enforced without required Coastal Commission approval.
• Homeowners may challenge unlawful STR enforcement in coastal HOAs. When an HOA enforces STR restrictions without Coastal Act compliance, homeowners may challenge the rule and seek to halt enforcement until proper approvals are obtained.
• Homeowners can independently verify whether their property is located within a designated coastal zone. If you want to determine whether your home is located in one California’s designated coastal zones, you can search Google for the California Coastal Commission’s official coastal zone map, enter your property’s address into the interactive map, and confirm whether the parcel falls within the shaded coastal zone boundaries. If the property is within the coastal zone, the homeowner should then search for the applicable city or county Local Coastal Program to determine whether short-term rental regulations have been approved by the Coastal Commission for that jurisdiction.

If your property is located within a designated coastal zone, the Coastal Act sets both the floor and the ceiling for STR regulation. In those circumstances, the Coastal Act supersedes Civil Code 4740 and Civil Code 4741.

FAQs

About MBK Chapman Fact Sheets

Homeowners searching for answers online will often come across articles that appear authoritative, but are actually written as search-engine marketing content rather than by an experienced HOA lawyer. These pieces tend to prioritize keyword density over clarity, accuracy, or legal context, which often leaves homeowners more confused than informed.

At MBK Chapman, our Fact Sheets are part of our HOA Law Library and are written by Michael Kushner, an HOA lawyer with decades of hands-on experience representing California homeowners. In fact, Michael Kushner is the HOA lawyer who pioneered the systems and strategies used by some of California’s most successful homeowner-side HOA law firms.

Each Fact Sheet is deliberately concise, statute-based, and designed as a quick-reference guide to help homeowners understand key HOA laws and enforcement rules at a glance.

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