10516.0 (A) 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
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This amendment WILL change the caption. __x___9
This amendment WILL NOT change the caption. _____10
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I intend to propose the following amendment(s),12
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CITY OF SANTA FE, NEW MEXICO14
BILL NO. 2026-1115
INTRODUCED BY:16
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Mayor Michael Garcia18
Councilor Alma Castro19
Councilor Pilar Faulkner20
Councilor Lee Garcia21
Amendment A – RED – Councilors Cassutt, Faulkner, and Garcia22
23
A BILL24
RELATING TO THE SANTA FE HOMES PROGRAM AND REQUIREMENTS FOR25
aterial = new [bracketed material] = delete

10516.0 (A) 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 PLAN.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 (A) 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 (A) 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 (A) 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 Affordable7
Housing to develop a payment plan, so long as the total payment8
is 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 the Santa Fe Homes12
Program.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 (A) 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
Respectfully submitted,19
__________________________20
Pilar Faulkner, COUNCILOR21
22
Respectfully submitted,23
__________________________24
Lee Garcia, COUNCILOR25Jamie Cassutt (Jul 27, 2026 21:49:22 MDT)Pilar Faulkner (Jul 28, 2026 09:55:50 MDT)Lee A Garcia (Aug 17, 2026 10:14:46 CDT)

10516.0 (A) 7
1
2
APPROVED AS TO FORM:3
4
5
_________________________________6
MARCOS D. MARTÍNEZ, CITY ATTORNEY7
8
ADOPTED:9
NOT ADOPTED: _______________10
DATE: ________________________11
12
ATTEST:13
14
________________________________15
GERALYN F. CARDENAS, CITY CLERK16
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25Marcos D. Martínez (Jul 27, 2026 15:31:54 MDT)
Marcos D. Martínez

Amendment A - Updating Fee in Lieu and
Affordability Requirements (Cassutt)
Final Audit Report 2026-08-17
Created: 2026-07-27
By: INDIRA innadasen-gladstone@santafenm.gov (innadasen-gladstone@santafenm.gov)
Status: Signed
Transaction ID: CBJCHBCAABAAo1969mS70ITiOvgLbY-_W_bek66lK4gC
Documents: Amendment A - Updating Fee in Lieu and Affordability Requirements (Cassutt).docx (7 pages)
Number of Documents: 1
Document page count: 7
Number of supporting files: 0
Supporting files page count: 0
"Amendment A - Updating Fee in Lieu and Affordability Require
ments (Cassutt)" History
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Agreement completed.
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