Malibu City Atty Says Pacaso Violates City Codes, As It’s An Illegal Timeshare – But No Enforcement Planned Under Current Rules

Written by on April 3, 2023


Malibu’s city attorney says that home sharing purchases … being offered by the Pacaso web site in Malibu … violate the city zoning code …. Because they are time shares under state law. 

In a memo to the city council … the interim city attorney says selling an “exclusive use of (a) property for a fixed number of days each year, meets the definition of a ‘time-share plan’ as defined” in state law.

And time-share uses are not specifically permitted and are thus prohibited in all zoning districts in Malibu … says the city lawyer … Trevor Russin.

Malibu city council member Paul Grisanti … himself a Realtor … says he has already filed a complaint about that with the state Department of Real Etstae.

And the state says that time shares are regulated by the California Vacation Ownership and Time-share Act … which only allows time shares if the developer shows that the property can be used for the purposes offered.

In a report to the city council … the city attorney says time-share resort houses have a negative impact on housing stock in the City … removing property that could be used for long term residents … converting the property’s use to a part time vacation home. 

That alters the character of the City’s residential neighborhoods.

The city staff report recommends that the city council direct them to write a draft ordinance to confirm the City’s prohibition on time-share use.

But these time shares have already been sold in Malibu … according to Pacaso.

And another seven Malibu houses have been purchased by Pacaso … which is selling shares in the houses right now.

So … if the existing Pacaso sales of timeshares in Malibu are illegal … why hasn’t the city attorney moved to undo the existing sales???  Or remove the other seven Pacaso house listings in Malibu???

Sonoma County … Monterey County … and the City of Palm Springs have already obtained cease and desist orders against Pacaso.

Trevor Russin … the interim city attorney … has not explained why the city has not already moved against Pacaso’s sale of houses with the city on a time share basis.

But he says time share sales are illegal under the city zoning code.  The whole issue will get aired at the city council meeting next week.

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