Santa Fe, City Council, Reynolds discussed on Talk 1260 KTRC Programming

Automatic TRANSCRIPT

Thanks for having the game play here. You bet. So this is normally a busy tourist season in Santa Fe, with many visitors staying in vacation rentals or short term rentals and residential communities throughout Santa Fe. The same face. City Council recently made some changes to the ordinance. So tell us what the rules were before the change and what they are now, Dave. In other words, one of the key takeaways what changes were made to take effect on January 1st. Thanks, Tom. Great question. Um, you know, you know what? I just for everybody's information. Just give it a real brief history. Um, where this came from, and why The changes are being made now specifically. Okay, so okay. As far back as 2000 and nine there was a rudimentary ordinance controlling short term Reynolds. It really was. It was a mom and pop, um, sort of a side gig thing, not much need for oversight. Then about 2014 business really started to increase. On Do they really decided to start to take a look at some things from a distant additional rules were put in place, but then It really around you from 2014 until 2019 really exploded. Short term. Reynolds really clocked traction with the advent of V R B O and Airbnb and other O t A s okay and okay for the rest of this talk time will be online Travel agency. There's kayak hotels in a comic speedy verb. Oh, Airbnb! Right? Okay, well as these things started to grow, what it did is a game, um families and larger groups, the ability to travel with less restrictions that you might find in a hotel and just sort of a different experience altogether. Santa Fe has always been made up the majority of the tourists. I mean, could you mom has been has been hotels. Small hotels to Rio's road hotels. And then the downtown, larger hotels, Luxury and mid range s O as is, you know, the real estate market started to grow. What we started to see is the short term rentals grow, and then that brought in speculators. On anybody in the real estate market, You know, you know that Santa Fe has always been a great place for people to come in by a second home, um, not really much in the way of paying for mortgages. Other than some some long term rentals, Perhaps But as I said between 14 4019, it really went from a small mom and pop. Side hustles idea, sort of a thing to a real booming multi multi billion dollar business in this in this country. Right? The net effect of that is In the residential areas. We're talking about two things. The BCD, the business commercial district in downtown Santa Fe. And the outline residential areas anything non business. What is what is begun to happen shortly over time is the Long term rental. Who of available properties has been has been removed from the inventory, so it's become very hard and ostensibly very expensive. For anybody to find a place to live Long term in the city of Santa Fe and even out into the county. Okay, so so that's really the purpose for this and and it really time it stemmed. I'm a study. Which was funded by the Thornburg Foundation and was conducted by home wise. Home lives here in the city, and it was. It was an extensive Study on the impact of short term rentals here in Santa Fe, N. And it was finalized and issued June of 2019 so very recently. And basically what the status is that the numbers were staggering from the hundreds of thousands of dollars upwards into the into the mid million's close close close to the hundreds of millions of dollars. And just in Santa Fe of short term rental money that was flowing in and out. Downside because of the lack of compliance from the beginning is that there has never been in a semblance of Compliance. There's never been enforcement. And if you ask anybody in the city of Santa Fe In City Council in City Hall. How many tickets were issued? How many's find somebody? Penalties were issued from 2009. Until this very day, the answer would be Hero. Lorelei. The books. Yes, absolutely. Zero. Not for lack of trying. They just you know, because of the O T. A is in the way the O T A's are structured. It's very, very difficult to find out exactly the address exactly the person exactly the renter exactly when they're coming in, and when they're leaving. So again, the net result if became renters that said, approximately of the 1450 Um Actual short term rentals in the city of Santa Fe about 60% of them are registered, so that means 40% have been operating illegally. So that means no lodgers taxes 7%. No gross receipts tax for the state of New Mexico. Ford for over 7%. So essentially, um, you know, the the effect is has been over at the time of June 19. You're looking at about 4 $45 million of net revenue to the city of Santa Fe alone. So that that's really that that was really become the purpose of some of this basically. I, uh the grant. The grand overall look by the City Council has been to address some questions in terms of How often the unit can be rented how many guests can occupy the unit? You were do not have to provide off street parking spaces. Notification of neighbors in residential areas. When a permit is approved. 24 hour phone numbers for neighbors given to neighbors to reach the owner or the manager, and we'll talk. About the difference between an owner and a manager later. Um, but basically the number going to be able to want you. Yeah, to reach their neighbors with complaints parties loud noises. Parking issues. We'll talk about what that means. Later payment of applicable taxes, including city and lodgers. Any permit numbers now must be on all advertising and how we're going to enforce that address that and basically what we're here to talk about. Also is the compliance with covenant. Evidence of age aways and condominium associations and basic neighborhoods in residential areas for short term rentals. That they lack. Thank you. Thank you. Thank you for setting it up for us. It's wonderful team. We're gonna take a short break. Uh, Olympia will take us out. And then when we come back, we're gonna have done Walcott to join us done. Walcott is an attorney in Santa Fe. We're gonna be talking about some of the legal aspects of enforcement.

Coming up next