Below is an update regarding the City of Santa Fe's proposed changes to the Short Term Rental Ordinance.  If you have questions please contact us and we would be happy to weed through all this with you.

At the City of Santa Fe’s Planning Commission meeting held on Thursday – June 18, 2020, the Planning Commission members postponed action on the proposed Short Term Rental law changes.  The Planning Commission agreed to take up the proposed changes at its July 16, 2020 meeting and will accept written comments through July 9, 2020.  Additionally, the Planning Commission agreed that there will be no public hearing at the July meeting to allow members to fully debate, amend and craft a final recommendation to the City Council regarding these changes.  Based on the advice from the Planning Commission’s attorney, Sally A. Paez, the ordinance changes will continue to be reviewed by city committees as the patrons of the legislation are committed to advancing the proposed changes to the City Council for its consideration by early August.

At the June 18^th Planning Commission meeting, members offered:

• Concerns about removing the Business Commercial District (BCD) from existing special exemptions in the current law;
• Concerns about eliminating the ability for corporate entities, LLCs, and trusts from owning Short Term Rental permits;
• Concerns with a new method of limiting the density of Short Term Rentals by creating a 75’ radius between existing and new permit holders;
• Support for allowing the transfer of an existing Short Term Rental permit to another family member or trust; and
• Raised a series of editing inaccuracies in the extensively rewritten draft.

Approximately, 30 individuals provided testimony at the City Planning Commission’s Zoom meeting with 12 individuals generally supporting the proposed changes and 17 individuals raising concerns or opposing the changes.  SFAR President, Susan Orth, provided public testimony urging the City of Santa Fe’s Planning Commission to postpone action and seek clarification on the proposed changes.

The City’s Quality of Life Committee will hear the proposed changes to the Short Term Rental ordinance on July 1, 2020.  It is unclear whether public comment will be permitted.  SFAR will provide meeting details as they are publicly announced.

The City of Santa Fe is proposed changes to its Short Term Rental laws; specifically:

• Grandfather all existing units with a caveat on existing permit owners that upon expiration, the owner may be eligible to timely renew, while
• Prospectively limiting the number of short term rental permits to one per natural person, as defined as an individual human being, as opposed to an organization of any form or a business entity.
• Prospectively limiting the proximity of short term rentals on residentially-zoned property, if the subject property is located within a 75 foot radius of a residentially-zoned property that has a permitted short term rental unit.
• Require a local operator for short term rental units to adopt recordkeeping and reporting requirements for short term rental unit owners and host platforms.  If the host platform collects rent for a short term rental unit, then the host platform must also maintain such records. Specifically, for current calendar year and three immediately preceeding years, the following:
  • The total number of times and number of nights that the unit was rented to guests each calendar month;
  • The total amount of rent paid by guests by month, and
  • The total amount of each type of tax and fee paid to the city for in connection with rental of the unit by month.
• Limit short term rental permits to 25% of a multi-family development that contains four (4) or more dwelling units.
• Reduce from 3 times to 2 times the number of legally allowed occupants (guests) for any gathering.
• At issuance of permit or renewal notify neighborhoods within 200 feet of the short term rental with information regarding its operation as required by law.
• Require host platform operators to list city business license number with rental and a monthly report to the city to include:  total number of short term rental unit listings and owners in the city; total number of times and nights each unit was rented to guests each calendar month; and the total amount of revenue collected from all rentals through the host platform in the city, including rent and each type of taxes and fees.
• Require local operators to reside within the boundaries of the City of Santa Fe.
• Reduce the annual short term rental fee from $325 to $290.
• Eliminate the requirement for adequate insurance or proof of insurance.
• Adds the ability of the Land Use Director to request additional information, documentation, and submittals.
• Prior to issuance of a short term rental permit, the owner of the unit must have a certificate of occupancy to ensure compliance with all applicable codes and a city business license.