Regular Governing Body Meeting - Second Wednesday — Wed, Aug 12, 2026
10516.0 (B) 1 CITY OF SANTA FE, NEW MEXICO1 PROPOSED AMENDMENT(S) TO BILL NO. 2026-112 Updating Fee in Lieu and Affordability Requirements3 4 Mayor and Members of the City Council:5 In relation to Bill No. 2026-11.6 7 8 This amendment WILL change the caption. __x___9 This amendment WILL NOT change the caption. _____10 11 I intend to propose the following amendment(s),12 13 CITY OF SANTA FE, NEW MEXICO14 BILL NO. 2026-1115 INTRODUCED BY:16 17 Mayor Michael Garcia18 Councilor Alma Castro19 Councilor Pilar Faulkner20 Councilor Lee Garcia21 Amendment B – BLUE – Councilors Cassutt22 23 A BILL24 RELATING TO THE SANTA FE HOMES PROGRAM AND REQUIREMENTS FOR25 aterial = new [bracketed material] = delete 10516.0 (B) 2 RENTAL UNITS; AMENDING SECTION 26-1.22 TO MAKE CERTAIN TECHNICAL1 CHANGES, TO CLARIFY THE CALCULATION OF FEES PAID IN LIEU OF2 PROVIDING ON-SITE AFFORDABLE UNITS, TO AMEND THE FEE-IN-LIEU3 CALCULATION TO USE THIRTY PERCENT OF THE AREA MEDIAN INCOME4 INSTEAD OF SIXTY-FIVE PERCENT WHEN DETERMINING BASE FEE AMOUNT,5 AND TO SPECIFY THAT DEVELOPERS MAY WORK WITH THE OFFICE OF6 AFFORDABLE HOUSING TO ESTABLISH A PAYMENT DATE.7 BE IT ORDAINED BY THE GOVERNING BODY OF THE CITY OF SANTA FE:8 Section 1. Section 26-1.22 of SFCC 1987 (being Ord. No. 2019-30, § 5) is9 amended to read:10 26-1.22 - Requirements for SFHP rental units.11 A. If a SFHP developer obtained a residential building permit for a multifamily12 residential development between January 1, 2016, and December 31, 2019, then13 the developer shall pay a fee associated with such development [shall be assessed]14 in accordance with SFHP administrative procedures. If applicable, the associated15 [an] annexation agreement, subdivision plat, or development plan shall be16 administratively amended to reflect the updated requirement and the owner or17 developer, as applicable, shall record or file, as applicable, the amended document18 [shall be recorded or filed, as applicable, by the owner or development]. Incentives19 for SFHP developers as set forth in subsection 14-8.11 SFCC 1987 [will] are not20 be available for these projects, other than the density bonus pursuant to subsection21 14-8.11(G)(1).22 B. [Effective January 1, 2020, and thereafter,] A SFHP developer that obtains a23 building permit for a [multifamily] residential rental development after January 1,24 2020, shall [comply with the SFHP ordinance by] either: pay[ing] a fee,25 10516.0 (B) 3 create[ing]e [LPDUs] Low Priced Dwelling Units (“LPDUs"), or provide1 affordable on-site units as follows:2 (1) Fee in lieu. [The] Except for small multifamily rental projects of twelve3 (12) or fewer units, and as described by Section 26-1.22(B)(1)(d), SFHP4 developers may pay [of] a fee in lieu of providing on-site affordable units,5 assessed according to a[n "affordability gap"] calculation that determines6 the base fee, which is the difference between [a] the FMR and the rent7 affordable to a renter earning thirty percent ([65] 30%) of the AMI.8 (a) [The steps of the calculation of the base fee amount t] To calculate9 the fee in lieu [as more fully described in the administrative10 procedures, are as follows]:11 (i) multiply the total number of units [broken out by number12 of bedrooms)] of each size, as defined by number of13 bedrooms, by fifteen percent (15%) to determine the14 number of affordable units that would have been required15 to be built if not for the developer paying the fee;16 (ii) multiply the number of affordable units required in the17 previous step (including any decimal places) by the base18 fee associated with each type of unit [broken out by19 number of bedrooms)] (determined by number of20 bedrooms) to determine the monthly fee; and21 (iii) multiply the monthly fee by twenty-four (24) months to22 determine the total project fee.23 (b) HUD's FMR will be used to establish the [affordability gap(]"base24 fee amount"[)] relative to HUD's AMI data. [Developers shall pay25 10516.0 (B) 4 phased fee increases according to when projects are permitted as1 follows:2 (i) for units permitted on or before June 30, 2020, the base3 fee amount;4 (ii) for units permitted between July 1, 2020, and June 30,5 2021, the base fee, increased by twenty percent (20%) fee6 increase;7 (iii) for units permitted between July 1, 2021, and June 30,8 2022, the base fee, increased by forty percent (40%) fee9 increase;10 (iv) for units permitted between July 1, 2022, and June 30,11 2023, the base fee, increased by sixty percent (60%)12 increase;13 (v) for units permitted between July 1, 2023, and June 30,14 2024, the base fee, increased by eighty percent (80%)15 increase; and16 (vi)][f]For units permitted on or after July 1, 2024, the base fee[,] shall be17 increased by one hundred percent (100%).18 (c) A SFHP developer that creates a vacation time share project or19 short term rental units shall be subject to the fees set forth in this20 subparagraph 26-1.22(B)(1);21 (d) A small multifamily rental project that consists of twelve (12) or22 fewer units shall pay the base fee amount, which shall be23 calculated as the difference between a FMR and the rent24 affordable to a renter earning thirty percent ([65] 30%) of the25 10516.0 (B) 5 AMI, and shall not be subject to the phased fee increases set forth1 in subsection 26-1.22(B)(1)(b).2 (e) [No later than July 1, 2022 staff shall initiate a review of the3 provisions of subsection 26-1.22(B)(1), as established by4 ordinance no. 2019-30, and shall present the findings to the5 governing body within six (6) months.] Developers who choose to6 pay the fee in lieu may work with the Office of Affordable housing7 to determine a payment due date, so long as the payment is8 received by the City no later than at the point at which the9 developer applies for a certificate of occupancy, unless it is10 determined by the Office of Affordable Housing that a later11 payment date is feasible and beneficial to SFHP.12 13 (2) One-hundred percent (100%) LPDUs. A[n] SFHP developer may create a14 development that consists of one-hundred percent (100%) LPDUs that15 shall comply with the requirements set forth in subsection 26-2.3;16 (3) Fifteen percent (15%) affordable rental units. A[n] SFHP developer may17 set aside [of] fifteen percent (15%) of on-site rental units for income18 certified renters as described in subsection 26-1.23(A); or19 (4) Combination. A[n] SFHP developer may combine two (2) or more of the20 preceding three (3) options if such a combination provides an equivalent21 and beneficial impact toward meeting identified housing needs, subject to22 approval by the office of affordable housing. If a developer chooses to23 provide a combination of the options, then the city shall provide the24 developer incentives set forth in subsection 14-8.11(G), as approved by25 10516.0 (B) 6 the land use director.1 C. The marketing, leasing, and occupancy of either an SFHP rental unit or an SFHP2 manufactured home lot that is rented shall conform to the criteria set forth in the3 administrative procedures. Rental rates shall comply with the rates set forth in4 subsection 26-1.24 SFCC 1987. SFHP rental units shall comply with the minimum5 size, unit type(s), and other structural requirements set forth in subsection 26-1.256 SFCC 1987. SFHP developers must obtain approval for the location of SFHP rental7 units. The units or manufactured home lots shall have compatible exterior8 architectural and landscaping appearance with other units in the development.9 D. Units or manufactured home lots available for SFHP rentals shall be described in10 a SFHP proposal in sufficient detail so that such units or manufactured home lots11 can be identified after construction or creation and occupancy. SFHP tenants must12 meet eligibility requirements at the time they initially lease an SFHP unit.13 14 Respectfully submitted,15 __________________________16 Jamie Cassutt, COUNCILOR17 18 19 20 APPROVED AS TO FORM:21 22 23 _________________________________24 MARCOS D. MARTÍNEZ, CITY ATTORNEY25Marcos Martínez (Aug 13, 2026 10:34:29 MDT) Marcos Martínez 10516.0 (B) 7 1 ADOPTED: X2 NOT ADOPTED: _______________3 DATE: Governing Body 8/12/20264 5 ATTEST:6 7 ________________________________8 GERALYN F. CARDENAS, CITY CLERK9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24