The Newport Beach City Council voted unanimously March 14 to draft an ordinance to classify fractional homeownerships as timeshares, which are currently banned in the city’s residential neighborhoods.
Fractional homeownership occurs when multiple individuals purchase a property, usually as a second home, and split usage based on a percentage of ownership.
They are different from timeshares in that the buyers purchase a share of the property’s title, rather than a share of time to use the property.
“Allowing fractional homeownership, as they’re used today, is an improper use of land planning,” Councilman Joe Stapleton said at the city council meeting. “It creates a camouflage for timeshares in areas that are not zoned or do not permit [them].”…