Brea City Council members are looking to roll out a pilot program to allow Airbnbs in the city ahead of the 2028 Los Angeles Olympics.

Short-term rentals like Airbnb and Vrbo typically offer stays shorter than 30 days. While Brea’s municipal code currently prohibits short-term rentals, some still operate illegally. 

During Tuesday night’s meeting, city staff said there are about 50 short-term rentals operating illegally in town.

“This ordinance would give us the teeth to take those down,” Mayor Cecilia Hupp said at the meeting.

Community Development Director Jason Killebrew agreed that the ordinance will give the city authority to better crack down on unlawful operations and bring them up to code.

The proposed program would allow up to 100 short-term rental licenses scattered throughout the city and handed out through a lottery system. It would allow 25 rentals in the northwest sector of Brea, 50 in the southwest sector and 25 in the east sector.

Councilmembers approved the program in an initial 4-0 vote during Tuesday night’s meeting. Councilmember Blair Stewart was absent from the vote because he left the meeting early. 

The pilot program will need another approval before it can go into effect.

Short-term rentals would require a minimum two-night stay, and renters would need to acknowledge the city’s “good neighbor policy” that addresses noise, parking and trash.

Rentals also must provide on-site parking; overnight street parking is prohibited.

The program, if adopted at the council’s next meeting, would expire on Dec. 31, 2029.

“This is a pilot program,” Killebrew said. “There is an opportunity to offramp if it does turn out to not be favorable for the city.”

City staff estimate that adding the program would generate about $400,000 in lodging taxes each year.

Applications would also come with a $1,000 fee, generating another $100,000 in revenue for the city.

Residents who apply for a short-term rental permit would also need to pass a building, fire, health and safety inspection and obtain a business license from the city.

Killebrew emphasized the city needs to add additional lodging options ahead of the 2026 FIFA World Cup, which is partially being held in Los Angeles, and the 2028 Olympics.

“There’s a variety of regional events happening in the Southern California region starting next year,” he said. “We already know that we’re going to be inundated. All of the calls that I’ve sat on — especially related to LA ‘28 Olympics — there is going to be a lodging shortfall … We can get a fair assessment to see if this is something the city wants to enter into for a long-term situation.”

Accessory dwelling units, also known as granny flats, would be prohibited from being used as short-term rentals under Brea’s pilot program.

“There’s an actual industry now that will offer to come in and build an ADU [accessory dwelling unit] on your property just for the sole purpose of operating it as a short-term rental — that’s not what we’re trying to do here,” Councilmember Christine Marick said at the meeting. “We’re not trying to build new housing as hotel rooms.”

Other officials across Orange County are also prepping for the anticipated increase in tourists ahead of the Olympics.

San Clemente is slated to host the surfing competitions for the 2028 Olympics at Lower Trestles Beach. 

In preparation, city leaders there have approved new hotel developments to make room for visitors, especially since the town historically doesn’t have as many hotels as neighboring cities like Dana Point.

[Read: San Clemente’s Coastline is About to Get More Crowded]

San Clemente makes much less revenue in taxes from hotels when compared to Dana Point, although both set their rate at 10%.

For the current fiscal year, Dana Point is estimated to generate over $16 million in revenue from bed tax generated from hotels, according to the city’s budget. 

San Clemente officials estimate the city will get about $3.5 million in bed taxes this fiscal year.

“Right now, though, we have the Olympics coming up, we have other events coming up, and we don’t have a hotel in this city that really shows off what our city is about,” San Clemente City Councilmember Mark Enmeier said at the Sept. 16 council meeting.

For the current fiscal year, Brea is estimated to generate about $2.6 million in taxes from hotels. With the additional estimated revenue from the short-term rental pilot program, that total could increase to about $3 million annually.

Angelina Hicks is the Voice of OC Collegiate News Service Editor. Contact her at ahicks@voiceofoc.org or on Twitter @angelinahicks13.