SHORT-TERM RENTALS, LONG DELAY

Published in the October 25, 2025 issue.

Airbnb and VRBO blurred the lines between homes and hotels years ago, and now, Mono County is still trying to redraw them. 

On Tuesday, the Mono County Board of Supervisors held what was supposed to be its final workshop on revising countywide Short-term Rental (STR) rules. But a last-minute discovery of a new state policy forced staff to postpone any decisions until Nov. 18, creating another delay in a years-long effort to create a clear path forward for STRs. 

Mono County first paused new STR permits from 2022-24, hoping that some vacation homes would convert to long-term rentals for local workers. Then, staff spent two years dissecting data, surveying residents, and holding workshops to figure out what to do.

In the meantime, the expectations for property owners (and prospective buyers) considering STRs has become muddled, especially in June Lake. The Board of Realtors, so disgruntled with the issue, went so far as to hire its own third-party “expert” to study and assess paths forward for the county.

*That “expert” found no issue with STRs, but you can read about that in The Sheet’s August 16 issue, p.1.

To bring the dispute to a decisive end, staff prepared three policy proposals: a countywide cap on total permits, a waiting period for STR implementation after property sales, and a housing incentive program for owners who build or convert units for local workers.

The first proposal, a cap, is exactly what it sounds like. It would simply prevent the number of STR permits in a given community from rising above a certain number. In June Lake, the proposed cap would limit STR permits to 95, about 10% above current levels. 

Survey results showed 59% of countywide respondents supported a cap, but 100% support from June Lake’s Regional Planning Advisory Committee (RPAC).

One June Lake r-esident, Don Morton, opposed the idea. 

“Properties might remain on the market a little longer, but [a cap] is going to encourage cash buyers that just use it two to four weeks a year,” he said. “And June Lake has a long history of this.”

The Supervisors seemed generally unlikely to support a cap policy in a vote.

The second proposal would impose a waiting period, either one or two years, before new property owners or developers could apply for short-term rental permits. The intent, staff said, is to discourage speculative buying and “decommodify” housing by separating a home’s value from its potential rental income.

Roughly 57% of public survey respondents supported the rule, along with 83% of RPAC participants. 

Exemptions would apply to existing short-term rentals that have operated continuously for at least two years, homes with deed-restricted affordable units, and properties whose owners also provide long-term rentals or accessory dwelling units. 

Ultimately, the Board reached consensus to support a waiting period in concept.

The third proposal would create a voluntary incentive program offering STR permit priority to applicants who also build or convert long-term housing units.

The proposed ratio, three new deed-restricted homes for every one STR unit, was designed to both mitigate impacts and create community benefit. Roughly 80% of RPAC members supported this.

“The open market isn’t keeping pace in affordability,” staff said.

Supervisors expressed broad support. “We haven’t been as aggressive as we could be on the incentive side,” Supervisor Paul McFarland said. “This is a good start.”

Interlaken… oops!

Since the vote on the aforementioned policies was delayed, the only concrete action of the day had to do with the Interlaken Condominium Complex in June Lake. 

The Interlaken Condominium Complex has operated short-term rentals (STRs) for years. Decades, in some cases. Many owners bought their units assuming STRs were allowed, and the County even issued Transient Occupancy Tax (TOT) certificates to them, meaning the County was collecting lodging taxes. 

But recently, while reviewing and updating STR regulations, County staff realized that Interlaken’s zoning technically didn’t allow STRs at all. The complex sits on land with a residential zoing designation that prohibits short-term rentals under the County’s existing code.

That realization raised two questions for the Board. First, should STRs be allowed at Interlaken? And, if so, how should the County go about approving them – change the code to fit the zoning or change the zoning to fit the code? 

Staff and recommended Supervisors opt to rezone only the land Interlaken sits on to a designation that accommodates STRs.

“It’s better just to get the ducks in a row,” Community Development Director Wendy Sugimura said, “and line it up correctly with its land-use designation.”

One resident spoke in support of allowing STRs at Interlaken. 

“It was built by Bud Hayward, who started June Mountain,” she said. “The price point at Interlaken is exceptionally higher than the rest of the condos. Our highest-end clientele stay there.”

Not everyone agreed.

“We wouldn’t allow a wetland to be paved over because we know that paving over a wetland has negative impacts to the surrounding lands,” June Lake Resident Michael Draper said. “Why would we allow a land-use designation intended for residential usage and long-term habitation to become a commercial property and operation?”

Ultimately, Supervisors voted 4–1 to rezone the area to align it with similar condo complexes. In the meantime, the Supervisors supported temporarily legalizing Interlaken’s STRs as “existing nonconforming uses.” 

Supervisor Jennifer Kreitz cast the lone dissenting vote.