short term rental

June 2008 Short Term Rental Ordinance Info & Background

The Santa Fe Association of REALTORS® has been working with the City of Santa Fe to help implement the new Real Estate Broker Short Term Rental Ordinance notification requirement for prospective buyers. A letter from the City's Land Use Director, Jack Hiatt, has been forwarded on June 9, 2008 to all SFAR members. Click here for a copy of the letter to Real Estate Brokers regarding notifying buyers of the Short Term Rental Ordinance. Additionally, the City of Santa Fe has created a compilation of the Short Term Rental Ordinance for use with prospective buyers. A prospective buyer is defined as a customer or client who is about to enter into an express written purchase agreement on a residential property in the City of Santa Fe. Please click here for a copy of the City-approved 2-page Short Term Rental Ordinance document to use with your clients.

On February 29, 2008, two property-management firms and a dozen property owners filed a complaint in state District Court to stay the new Short Term Rental Ordinance and declare the law unconstitutional. The complaint maintains that the short term rental of residential property is not a commercial activity; treating short term rentals differently than long term rentals is arbitrary and capricious; restricting the transfer of grandfathered short term rentals is an improper condition on the rights of ownership; the city cap of 350 is arbitrary and not the result of a detailed study; and the $1,000 annual permit fee is unreasonable compared to the city's annual business license of $35.

On January 30, 2008, the Santa Fe City Council held a public hearing and voted five (Councilors Calvert, Chavez, Dominquez, Ortiz, Wurzburger) to three (Councilors Bushee, Heldmeyer, Trujillo) to pass Short Term Rental Ordinance #2008-5.

The City of Santa Fe has announced that permit application forms have been developed by the Land Use Department and are available on line. If you are interested in getting an application, contact Jack Hiatt, City of Santa Fe Land Use Director, at jbhiatt@santafenm.gov

Short Term Rental permit applications must be submitted by March 29, 2008.

On June 21, 2007, the Santa Fe Association of REALTORS Board of Directors adopted the following short term rental proposal for consideration by elected officials:

Permit short term rentals with conditions;
Establish no restrictions on the number of rental periods annually;
Establish a 3-day minimum for a rental period;
Parking requirements will meet existing code for a dwelling unit;
Occupancy limit for dwelling unit will meet existing code and be posted on the rental unit;
Annual permit fee will be equal to business license fee ($35.00);
Notice by City will be given to neighborhood associations, and all residents and property owners within 150 feet of rental unit after issuance of permit;
Violations of ordinance will be similar to those for existing business permit holders;
Offer exemption from some requirements for owner-occupied rental units;
Offer exemption from some requirements for self-contained developments; and
Require all short term rentals to pay lodgers and gross receipt taxes.

On January 22, 2008, Councilors Wurzburger and Calvert held a press conference to announce proposed amendments to Mayor Coss' introduced short term rental ordinance. Their intent is to offer these amendments to the City Council at the January 30, 2008, meeting. The proposed amendments would briefly:

allow existing short term rental units to operate beyond January 1, 2013 provided that the unit does not change ownership;
require that existing short term rentals to verify that the unit was reported for lodgers' tax or income tax;
authorize short term rentals through an annual lottery whenever the number of existing rental units drops below 350;
change the permit fee for multiple short term units owned in common on a single parcel or adjacent parcels to $1,000 for the first unit and $250 for each additional unit and several other administrative changes noted in a city staff memo.

On January 9, 2008, the City Council hosted a public hearing on a short term rental proposal introduced by Mayor Coss and Councilor Chavez. Over thirty people spoke in support of short term rentals including individuals such as plumbers, electricians, housekeepers and landscape companies raising concerns about the loss of jobs and revenue from the industry. Eleven people raised neighborhood concerns asking that the city find a way to begin to regulate the industry. SFAR's President provided testimony urging Mayor Coss and the City Council to amend the ordinance under consideration. Several Councilors express concerns regarding the proposal and requested more data on the number of rentals operating in the city and the amount of lodger's tax paid annually. Councilors voted unanimously to table the proposal and work towards a "revised or amended" version for consideration at the next City Council meeting on January 30, 2008. SFAR has created a list of amendments to the existing proposal that were submitted during the testimony conforming the ordinance to SFAR's short term rental position.

At the City Council meeting on November 28th, Councilor Bushee introduced proposed amendments to the Short Term Rental Ordinance that will be under consideration at a public hearing scheduled for December 12, 2007. Briefly, the amendments would:

establish an overlay district where short term rentals would be permitted;

adds clarification (paid lodgers’ tax or income tax) on the “evidence” acceptable to the City that the unit was regularly used as a short term rental prior to adoption of the ordinance;
reduces the number of permitted rentals from 17 to 12 per year; and
reduces the annual permit fee for units located in the Short Term Rental Overlay District from $1,000 to $500

At the October 29th City Council meeting, Councilors voted to host a public hearing on December 12, 2007 regarding a proposal to regulate short term rentals. The latest proposal has a few new provisions with many of the same conditions that have been found in other proposals. Here are a few highlights of the ordinance:

a new “permitted” short term rental option of two rental periods within a calendar year with no permit required, no grandfather clause and no requirement to meet other general provisions;
“permitted” rental of accessory dwelling units with no grandfather clause;
“permitted” rental of short term rentals where the property owner lives on a contiguous lot with no grandfather clause; however, if the property is sold, the ability to rent short term is NOT transferable;
other existing short term rentals will be “grandfathered” until January 1, 2013 with the provision of evidence acceptable to the city that the unit was regularly used for short term rentals;
$500 annual permit fee for accessory dwelling units and rentals with a contiguous property owner and $1,000 annual permit fee for other existing short term rentals; and
a new provision requiring a Review and Report on the implementation, management, enforcement and fiscal impact 18 months from the adoption of the ordinance.

In September , Mayor Coss and Councilor Chavez introduced a new proposal to regulate short term rentals by grandfathering units operating prior to June 8, 2005 and phasing them out of operation by 2015. Additionally, a new "special exception" proposal recently approved by the Santa Fe Public Works/CIP and Land Use Committee incorporates some of the elements of the above proposal; however, neither of these proposals fully addresses elements of SFAR’s position on short term rentals. The special exception proposal will give the Board of Adjustment the authority to permit short term rentals. SFAR has forwarded a copy of the proposal to Mayor Coss and City Councilors requesting their assistance in amending the proposed ordinances.

The Association has also created a Short Term Rental Fact Sheet that highlights the benefits of short term rentals in Santa Fe and how other historic or resort communities regulate short term rentals. At the October 10, 2007 City Council meeting, Karen Walker, a local realtor and former mayoral candidate, introduced local research on short term rentals she conducted to help address the lack of local data.

Elements of Short Term Rental Proposals Under Consideration

- Minimum 7 day rental period.

- Limits on rental periods from 2 to 17 per year.

- Permit fee of $1,000 for short term rentals, $500 for resort community short term rentals, and $400-$250 for accessary dwelling unit (guesthouses) short term rentals.

- The ability of any property owner to rent 2 times per year without a permit.

- Board of Adjustment will have the authority to permit short term rentals.

- City authorized to notify neighborhood association and neighbors within

150 feet of premises with a copy of annual permit.

- Requirements for off-street parking (one for 1st bedroom, two for 2-3

bedrooms, one more parking space for 4 or more bedrooms).

- Maximum occupancy limits (total of 5 in one proposal or no more than

2-3 per bedroom).

- 10:00 p.m. noise restriction for outdoor areas.

- Collection of lodgers' tax, gross receipts tax and income taxes.

- $500 fine for violations & revocation of permit after 3 violations in one year.

- Notice to tenants of short term rental code and requirements.

- Grandfather short term rentals in current operation and phase them out of operation in 2013.

According to proponents, the intent of the new ordinance is to ensure that short term rentals occurring in residentially-zoned neighborhoods are in keeping with the residential chacter of the neighborhood. Copies of the ordinance proposals and city staff recommendations can be accessed below. Also listed are recommendations and minutes from the Short Term Rental Task Force established by the City of Santa Fe in 2006:

Short Term Rental Proposal with "Grandfather" Clause Phasing out Rentals by 2013

Short Term Rental Proposal "Grandfather" Clause Phasing out Rentals by 2015

Short Term Rental "Special Exception" Ordinance Adopted by Public Works/CIP & Land Use August 2007

Short Term Rental Ordinanance Adopted by Planning Commission with Amendments August 2007

Short Term Rental Ordinance Adopted by Planning Commission June 2007

Short Term Rental Ordinance Proposed by Councilor Wurzburger

Short Term Rental Ordinance Proposed by Councilor Heldmeyer

City Staff Short Term Rental Recommendations

Short Term Rental Task Force Recommendations

- Task Force Minutes January 2006

- Task Force Minutes March 2006

- Task Force Minutes April 2006

- Task Force Minutes May 2006

These various proposals will be discussed by Santa Fe City Councilors over the next few weeks. As this debate continues, the Santa Fe Association of REALTORS ® is interested in hearing from short term rental owners regarding their opinions on these measures. Please find below a link to a survey that we're asking short term rental owners to fill out and fax to the Association. All information provided will be confidential and may only be used to direct our public policy initiatives.

Short Term Rental Survey - Please response by April 6, 2007 (survey completed)

The Association looks forward to hearing from you regarding this important property rights issue.

To help create a dialogue on this issue, the Association hosted a meeting for stakeholders on April 10, 2007. A copy of the presentation offered is found below:

Short Term Rental Presentation

How To Reach Local Santa Fe Elected Officials and City Manager

Mayor David Coss: (505) 955-6590 or mayor@santafenm.gov

Councilor Patti Bushee: (505) 955-6813 or pjbushee@santafenm.gov

Councilor Chris Calvert: (505) 955-6812 or ccalvert@santafenm.gov

Councilor Rebecca Wurzburger: (505) 955-6815 or

rebeccawrz@comcast.net

Councilor Karen Heldmeyer: (505) 955-6818 or kheld@earthlink.net

Councilor Miguel Chavez: (505) 955-6816 or miguelmchavez@msn.com

Councilor Carmichael Dominguez: (505) 955-6814 or

cadominguez@santafenm.gov

Councilor Matthew E. Ortiz: (505) 955-6817 or meortiz@santafenm.gov

Councilor Ronald Trujillo: (505) 955-6811 or rstrujillo@santafenm.gov

Santa Fe City Manager:

Galen Buller: (505) 955-6848 or gmbuller@santafenm.gov

�




	June 2008 Short Term Rental Ordinance Info & Background The Santa Fe Association of REALTORS® has been working with the City of Santa Fe to help implement the new Real Estate Broker Short Term Rental Ordinance notification requirement for prospective buyers. A letter from the City's Land Use Director, Jack Hiatt, has been forwarded on June 9, 2008 to all SFAR members. Click here for a copy of the letter to Real Estate Brokers regarding notifying buyers of the Short Term Rental Ordinance. Additionally, the City of Santa Fe has created a compilation of the Short Term Rental Ordinance for use with prospective buyers. A prospective buyer is defined as a customer or client who is about to enter into an express written purchase agreement on a residential property in the City of Santa Fe. Please click here for a copy of the City-approved 2-page Short Term Rental Ordinance document to use with your clients. On February 29, 2008, two property-management firms and a dozen property owners filed a complaint in state District Court to stay the new Short Term Rental Ordinance and declare the law unconstitutional. The complaint maintains that the short term rental of residential property is not a commercial activity; treating short term rentals differently than long term rentals is arbitrary and capricious; restricting the transfer of grandfathered short term rentals is an improper condition on the rights of ownership; the city cap of 350 is arbitrary and not the result of a detailed study; and the $1,000 annual permit fee is unreasonable compared to the city's annual business license of $35. On January 30, 2008, the Santa Fe City Council held a public hearing and voted five (Councilors Calvert, Chavez, Dominquez, Ortiz, Wurzburger) to three (Councilors Bushee, Heldmeyer, Trujillo) to pass Short Term Rental Ordinance #2008-5. The City of Santa Fe has announced that permit application forms have been developed by the Land Use Department and are available on line. If you are interested in getting an application, contact Jack Hiatt, City of Santa Fe Land Use Director, at jbhiatt@santafenm.gov Short Term Rental permit applications must be submitted by March 29, 2008. On June 21, 2007, the Santa Fe Association of REALTORS Board of Directors adopted the following short term rental proposal for consideration by elected officials: Permit short term rentals with conditions; Establish no restrictions on the number of rental periods annually; Establish a 3-day minimum for a rental period; Parking requirements will meet existing code for a dwelling unit; Occupancy limit for dwelling unit will meet existing code and be posted on the rental unit; Annual permit fee will be equal to business license fee ($35.00); Notice by City will be given to neighborhood associations, and all residents and property owners within 150 feet of rental unit after issuance of permit; Violations of ordinance will be similar to those for existing business permit holders; Offer exemption from some requirements for owner-occupied rental units; Offer exemption from some requirements for self-contained developments; and Require all short term rentals to pay lodgers and gross receipt taxes. On January 22, 2008, Councilors Wurzburger and Calvert held a press conference to announce proposed amendments to Mayor Coss' introduced short term rental ordinance. Their intent is to offer these amendments to the City Council at the January 30, 2008, meeting. The proposed amendments would briefly: allow existing short term rental units to operate beyond January 1, 2013 provided that the unit does not change ownership; require that existing short term rentals to verify that the unit was reported for lodgers' tax or income tax; authorize short term rentals through an annual lottery whenever the number of existing rental units drops below 350; change the permit fee for multiple short term units owned in common on a single parcel or adjacent parcels to $1,000 for the first unit and $250 for each additional unit and several other administrative changes noted in a city staff memo. On January 9, 2008, the City Council hosted a public hearing on a short term rental proposal introduced by Mayor Coss and Councilor Chavez. Over thirty people spoke in support of short term rentals including individuals such as plumbers, electricians, housekeepers and landscape companies raising concerns about the loss of jobs and revenue from the industry. Eleven people raised neighborhood concerns asking that the city find a way to begin to regulate the industry. SFAR's President provided testimony urging Mayor Coss and the City Council to amend the ordinance under consideration. Several Councilors express concerns regarding the proposal and requested more data on the number of rentals operating in the city and the amount of lodger's tax paid annually. Councilors voted unanimously to table the proposal and work towards a "revised or amended" version for consideration at the next City Council meeting on January 30, 2008. SFAR has created a list of amendments to the existing proposal that were submitted during the testimony conforming the ordinance to SFAR's short term rental position. At the City Council meeting on November 28th, Councilor Bushee introduced proposed amendments to the Short Term Rental Ordinance that will be under consideration at a public hearing scheduled for December 12, 2007. Briefly, the amendments would: establish an overlay district where short term rentals would be permitted; adds clarification (paid lodgers’ tax or income tax) on the “evidence” acceptable to the City that the unit was regularly used as a short term rental prior to adoption of the ordinance; reduces the number of permitted rentals from 17 to 12 per year; and reduces the annual permit fee for units located in the Short Term Rental Overlay District from $1,000 to $500 At the October 29th City Council meeting, Councilors voted to host a public hearing on December 12, 2007 regarding a proposal to regulate short term rentals. The latest proposal has a few new provisions with many of the same conditions that have been found in other proposals. Here are a few highlights of the ordinance: a new “permitted” short term rental option of two rental periods within a calendar year with no permit required, no grandfather clause and no requirement to meet other general provisions; “permitted” rental of accessory dwelling units with no grandfather clause; “permitted” rental of short term rentals where the property owner lives on a contiguous lot with no grandfather clause; however, if the property is sold, the ability to rent short term is NOT transferable; other existing short term rentals will be “grandfathered” until January 1, 2013 with the provision of evidence acceptable to the city that the unit was regularly used for short term rentals; $500 annual permit fee for accessory dwelling units and rentals with a contiguous property owner and $1,000 annual permit fee for other existing short term rentals; and a new provision requiring a Review and Report on the implementation, management, enforcement and fiscal impact 18 months from the adoption of the ordinance. In September , Mayor Coss and Councilor Chavez introduced a new proposal to regulate short term rentals by grandfathering units operating prior to June 8, 2005 and phasing them out of operation by 2015. Additionally, a new "special exception" proposal recently approved by the Santa Fe Public Works/CIP and Land Use Committee incorporates some of the elements of the above proposal; however, neither of these proposals fully addresses elements of SFAR’s position on short term rentals. The special exception proposal will give the Board of Adjustment the authority to permit short term rentals. SFAR has forwarded a copy of the proposal to Mayor Coss and City Councilors requesting their assistance in amending the proposed ordinances. The Association has also created a Short Term Rental Fact Sheet that highlights the benefits of short term rentals in Santa Fe and how other historic or resort communities regulate short term rentals. At the October 10, 2007 City Council meeting, Karen Walker, a local realtor and former mayoral candidate, introduced local research on short term rentals she conducted to help address the lack of local data. Elements of Short Term Rental Proposals Under Consideration - Minimum 7 day rental period. - Limits on rental periods from 2 to 17 per year. - Permit fee of $1,000 for short term rentals, $500 for resort community short term rentals, and $400-$250 for accessary dwelling unit (guesthouses) short term rentals. - The ability of any property owner to rent 2 times per year without a permit. - Board of Adjustment will have the authority to permit short term rentals. - City authorized to notify neighborhood association and neighbors within 150 feet of premises with a copy of annual permit. - Requirements for off-street parking (one for 1st bedroom, two for 2-3 bedrooms, one more parking space for 4 or more bedrooms). - Maximum occupancy limits (total of 5 in one proposal or no more than 2-3 per bedroom). - 10:00 p.m. noise restriction for outdoor areas. - Collection of lodgers' tax, gross receipts tax and income taxes. - $500 fine for violations & revocation of permit after 3 violations in one year. - Notice to tenants of short term rental code and requirements. - Grandfather short term rentals in current operation and phase them out of operation in 2013. According to proponents, the intent of the new ordinance is to ensure that short term rentals occurring in residentially-zoned neighborhoods are in keeping with the residential chacter of the neighborhood. Copies of the ordinance proposals and city staff recommendations can be accessed below. Also listed are recommendations and minutes from the Short Term Rental Task Force established by the City of Santa Fe in 2006: Short Term Rental Proposal with "Grandfather" Clause Phasing out Rentals by 2013 Short Term Rental Proposal "Grandfather" Clause Phasing out Rentals by 2015 Short Term Rental "Special Exception" Ordinance Adopted by Public Works/CIP & Land Use August 2007 Short Term Rental Ordinanance Adopted by Planning Commission with Amendments August 2007 Short Term Rental Ordinance Adopted by Planning Commission June 2007 Short Term Rental Ordinance Proposed by Councilor Wurzburger Short Term Rental Ordinance Proposed by Councilor Heldmeyer City Staff Short Term Rental Recommendations Short Term Rental Task Force Recommendations - Task Force Minutes January 2006 - Task Force Minutes March 2006 - Task Force Minutes April 2006 - Task Force Minutes May 2006 These various proposals will be discussed by Santa Fe City Councilors over the next few weeks. As this debate continues, the Santa Fe Association of REALTORS ® is interested in hearing from short term rental owners regarding their opinions on these measures. Please find below a link to a survey that we're asking short term rental owners to fill out and fax to the Association. All information provided will be confidential and may only be used to direct our public policy initiatives. Short Term Rental Survey - Please response by April 6, 2007 (survey completed) The Association looks forward to hearing from you regarding this important property rights issue. To help create a dialogue on this issue, the Association hosted a meeting for stakeholders on April 10, 2007. A copy of the presentation offered is found below: Short Term Rental Presentation How To Reach Local Santa Fe Elected Officials and City Manager Mayor David Coss: (505) 955-6590 or mayor@santafenm.gov Councilor Patti Bushee: (505) 955-6813 or pjbushee@santafenm.gov Councilor Chris Calvert: (505) 955-6812 or ccalvert@santafenm.gov Councilor Rebecca Wurzburger: (505) 955-6815 or rebeccawrz@comcast.net Councilor Karen Heldmeyer: (505) 955-6818 or kheld@earthlink.net Councilor Miguel Chavez: (505) 955-6816 or miguelmchavez@msn.com Councilor Carmichael Dominguez: (505) 955-6814 or cadominguez@santafenm.gov Councilor Matthew E. Ortiz: (505) 955-6817 or meortiz@santafenm.gov Councilor Ronald Trujillo: (505) 955-6811 or rstrujillo@santafenm.gov Santa Fe City Manager: Galen Buller: (505) 955-6848 or gmbuller@santafenm.gov �
	REALTOR® -- A registered collective membership mark that identifies a real estate professional who is a member of the National Association of REALTORS® and subscribes to its strict Code of Ethics. Inquiries regarding the Code of Ethics should be directed to the board in which a REALTOR® holds membership. Santa Fe Association of Realtors® · 510 N. Guadalupe St., Suite E · Santa Fe, NM 87501 Phone: 505-982-8385 · Fax: 505-982-3764 · Email: info@sfar.com