Regular Governing Body Meeting - Second Wednesday — Wed, Aug 12, 2026
FISCAL IMPACT REPORT General Information: (Check) Bill: x Resolution: Short Title(s): Updating Fee in Lieu and Affordability Requirements Sponsor(s): Mayor Michael Garcia Reviewing Department(s): Land Use Department, City Attorney’s Office Staff Completing FIR: __Faviola Chavez, Affordable Housing Director Date: 5/01/2026 Phone: (505) 690-4192 Reviewed by City Attorney: Date: Reviewed by Finance Director: Date: Summary: If adopted, the proposed bill would amend SFCC 1987, Section 26-1.22, which establishes the requirements for developing rental units under the Santa Fe Homes Program (“SFHP”). The bill makes non-substantive technical updates and clarifications to the calculation of fees paid in lieu of providing on-site affordable units. It also makes a substantive change to the fee-in-lieu calculation by proposing the use of thirty percent (30%) instead of sixty-five percent (65%) when determining the calculation’s base fee amount. Departments Affected: Affordable Housing Department Consequences of Not Enacting Legislation: If this legislation is not adopted, SFCC 1987, Section 26-1.22, will not be updated to include clarifications and technical updates to the calculation of fees paid in lieu of providing on-site affordable units. There would also not be a decrease from sixty-five percent (65%) to thirty percent (30%) when determining the base fee amount in the fee-in-lieu calculation. This means that the amount collected for developing rental units under the Santa Fe Homes Program would remain status quo. Conflict, Duplication, Companionship, or Relationship to Other Legislation: Section 26-1.22, SFCC 1987, was last updated via Ordinance No. 2019-30. Performance and Administrative Implications: None at this time. Fiscal Implications: **Currently, the fee-in-lieu calculation uses a percentage of sixty-five percent (65%) to determine the “base fee” amount. The bill proposes to lower this amount to thirty percent (30%). The decrease in this FIR No. 10516.0Marcos Martinez (May 22, 2026 09:18:25 MDT) Marcos Martinez05/22/2026ANDREA PHILLIPS (May 22, 2026 10:07:48 MDT)05/22/2026 Adopted: 01/12/05; revised 8/24/05; 4/17/08; 2 percentage would result in an increase in the amount the City of Santa Fe would collect from developers, should they opt to pay a fee in lieu of providing on-site affordable units. See the memo attachment “Example Calculations for SFHP” for sample fee-in-lieu calculations. Fiscal Impact **___ Check here if no fiscal impact Expenditures Expenditure Narrative: ** See “Fiscal Implications” narrative” above. Revenue Revenue Type FYE 2026 FYE 2027 FYE 2028 Recurring (R) or Non-recurring (NR) Fund General Fund $ $______ $ Special Revenue $ $ $ CIP $ $ $ Enterprise $ $ $ Internal Service $ $ $ Trust and Agency Federal $ $ $ $ $ $ Other $ $ $ Total $ $ $ Revenue Narrative: Expenditure Type FYE 2026 FYE 2027 FYE 2028 Require BAR (Y/N) Recurring (R) or Non- recurring (NR) Fund 3-Year Total Cost Personnel and Benefits* $ $ $ Capital Outlay $ $ $ Contractual/ Professional Services $ $ $ Operating $ $ $ $ Total: $ $ $ $