Council approves short-term-rental rules

Split vote imposes fees, limits occupancy time

Tom Sharpe | The New Mexican

1/30/2008 - 1/31/08

After a yearslong debate, Santa Fe has a new ordinance regulating short-term rentals in residential neighborhoods.

But few were satisfied after the City Council voted 5-3 late Wednesday night following more than three hours of sometimes-heated discussion.

The new ordinance allows up to 350 short-term rentals in residential neighborhoods across the city, and owners must abide by restrictions and pay fees of up to $1,000 a year.

Twenty-three people spoke at the public hearing. Slightly more than half opposed the ordinance, many with ties to the short-term-rental industry.

Tom Simons, a lawyer representing several property-management firms that do short-term rentals, said there was no evidence that renting houses for 30 days or less in residential areas was disturbing anyone. "What you people want is to have only owner occupants," he said.

Neighborhood activists, who complained of rowdy short-term renters, and bed-and-breakfast managers, who said they were losing business to short-term rentals, were among those supporting the ordinance.

Waite Thompson, who lives on the east side, said such measures are needed "to preserve the old neighborhoods."

Among the strongest critics of the ordinance that passed was Councilor Patti Bushee, whose previous proposal to regulate short-term rentals was eclipsed by one first proposed by Councilor Rebecca Wurzburger.

"This is going to be a nightmare to enforce," Bushee said to cheers from ordinance opponents in the audience. The same group booed Councilor Miguel Chavez when he said allowing illegal rentals to continue could bring an end to Santa Fe neighborhoods.

The ordinance, as passed, will grandfather in all short-term rentals whose owners could prove they were paying taxes as of this week. About 300 such units are believed to exist now. Grandfather status would cease when the unit is sold. If the total of grandfathered units fell below 350, the city could accept new short-term rentals.

Short-term rental owners would pay the city a fee of $1,000 a year to continue the practice. People who had more than one short-term rental would pay an extra $250 annually for each additional unit. People who lived in one unit and rented another unit on the same property would pay only $500 a year. All fees would go to enforcement of the new law.

The ordinance would allow a unit to be rented up to 17 times in a year as long as they were not rented more than once per seven-day period.

Voting yes were Councilors Chavez, Wurzburger, Chris Calvert, Carmichael Dominguez and Matthew Ortiz. Voting no were Bushee, Karen Heldmeyer and Ronald Trujillo.

Contact Tom Sharpe at 986-3080 or tsharpe@sfnewmexican.com.