Amendment C - Updating Fee in Lieu and Affordability Requirements (M. Garcia)

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CITY OF SANTA FE, NEW MEXICO1
PROPOSED AMENDMENT(S) TO RESOLUTION NO. 2026-___2
Updating Fee in Lieu Affordability Requirements3
______________________________________________________________________________4
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Mayor and Members of the City Council:6
In relation to Resolution No. 2026-___.7
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This amendment WILL change the caption. ____9
This amendment WILL NOT change the caption. __X___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 C – GREEN – M. Garcia22
A BILL23
RELATING TO THE SANTA FE HOMES PROGRAM AND REQUIREMENTS FOR24
RENTAL UNITS; AMENDING SECTION 26-1.22 TO MAKE CERTAIN TECHNICAL25
CHANGES, TO CLARIFY THE CALCULATION OF FEES PAID IN LIEU OF26
d material = new [bracketed material] = delete

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PROVIDING ON-SITE AFFORDABLE UNITS, TO AMEND THE FEE-IN-LIEU1
CALCULATION TO USE THIRTY PERCENT OF THE AREA MEDIAN INCOME2
INSTEAD OF SIXTY-FIVE PERCENT WHEN DETERMINING BASE FEE AMOUNT.3
BE IT ORDAINED BY THE GOVERNING BODY OF THE CITY OF SANTA FE:4
Section 1. Section 26-1.22 of SFCC 1987 (being Ord. No. 2019-30, § 5) is5
amended to read:6
26-1.22 - Requirements for SFHP rental units.7
A. If a SFHP developer obtained a residential building permit for a multifamily8
residential development between January 1, 2016, and December 31, 2019, then9
the developer shall pay a fee associated with such development [shall be assessed]10
in accordance with SFHP administrative procedures. If applicable, the associated11
[an] annexation agreement, subdivision plat, or development plan shall be12
administratively amended to reflect the updated requirement and the owner or13
developer, as applicable, shall record or file, as applicable, the amended document14
[shall be recorded or filed, as applicable, by the owner or development]. Incentives15
for SFHP developers as set forth in subsection 14-8.11 SFCC 1987 [will] are not16
be available for these projects, other than the density bonus pursuant to subsection17
14-8.11(G)(1).18
B. [Effective January 1, 2020, and thereafter,] A SFHP developer that obtains a19
building permit for a [multifamily] residential rental development after January 1,20
2020, shall [comply with the SFHP ordinance by] either: pay[ing] a fee,21
create[ing]e [LPDUs] Low Priced Dwelling Units (“LPDUs"), or provide22
affordable on-site units as follows:23
(1) Fee in lieu. [The] Except for small multifamily rental projects of twelve24
(12) or fewer units, and as described by Section 26-1.22(B)(1)(d), SFHP25

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developers may pay [of] a fee in lieu of providing on-site affordable units,1
assessed according to a[n "affordability gap"] calculation that determines2
the base fee, which is the difference between [a] the FMR and the rent3
affordable to a renter earning thirty percent ([65] 30%) of the AMI.4
(a) [The steps of the calculation of the base fee amount t] To calculate5
the fee in lieu [as more fully described in the administrative6
procedures, are as follows]:7
(i) multiply the total number of units [broken out by number8
of bedrooms)] of each size, as defined by number of9
bedrooms, by fifteen percent (15%) to determine the10
number of affordable units that would have been required11
to be built if not for the developer paying the fee;12
(ii) multiply the number of affordable units required in the13
previous step (including any decimal places) by the base14
fee associated with each type of unit [broken out by15
number of bedrooms)] (determined by number of16
bedrooms) to determine the monthly fee; and17
(iii) multiply the monthly fee by twenty-four (24) months to18
determine the total project fee.19
(b) HUD's FMR will be used to establish the [affordability gap(]"base20
fee amount"[)] relative to HUD's AMI data. [Developers shall pay21
phased fee increases according to when projects are permitted as22
follows:23
(i) for units permitted on or before June 30, 2020, the base24
fee amount;25

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(ii) for units permitted between July 1, 2020, and June 30,1
2021, the base fee, increased by twenty percent (20%) fee2
increase;3
(iii) for units permitted between July 1, 2021, and June 30,4
2022, the base fee, increased by forty percent (40%) fee5
increase;6
(iv) for units permitted between July 1, 2022, and June 30,7
2023, the base fee, increased by sixty percent (60%)8
increase;9
(v) for units permitted between July 1, 2023, and June 30,10
2024, the base fee, increased by eighty percent (80%)11
increase; and12
(vi)][f]For units permitted on or after July 1, 2024, the base fee[,] shall be13
increased by one hundred percent (100%).14
(c) A SFHP developer that creates a vacation time share project or15
short term rental units shall be subject to the fees set forth in this16
subparagraph 26-1.22(B)(1);17
(d) A small multifamily rental project that consists of twelve (12) or18
fewer units shall pay the base fee amount, which shall be19
calculated as the difference between a FMR and the rent20
affordable to a renter earning thirty percent ([65] 30%) of the21
AMI, and shall not be subject to the phased fee increases set forth22
in subsection 26-1.22(B)(1)(b).23
[(e) No later than July 1, 2022 staff shall initiate a review of the24
provisions of subsection 26-1.22(B)(1), as established by25

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ordinance no. 2019-30, and shall present the findings to the1
governing body within six (6) months.]2
(2) One-hundred percent (100%) LPDUs. A[n] SFHP developer may create a3
development that consists of one-hundred percent (100%) LPDUs that4
shall comply with the requirements set forth in subsection 26-2.3;5
(3) Fifteen percent (15%) affordable rental units. A[n] SFHP developer may6
set aside [of] fifteen percent (15%) of on-site rental units for income7
certified renters as described in subsection 26-1.23(A); or8
(4) Combination. A[n] SFHP developer may combine two (2) or more of the9
preceding three (3) options if such a combination provides an equivalent10
and beneficial impact toward meeting identified housing needs, subject to11
approval by the office of affordable housing. If a developer chooses to12
provide a combination of the options, then the city shall provide the13
developer incentives set forth in subsection 14-8.11(G), as approved by14
the land use director.15
C. The marketing, leasing, and occupancy of either an SFHP rental unit or an SFHP16
manufactured home lot that is rented shall conform to the criteria set forth in the17
administrative procedures. Rental rates shall comply with the rates set forth in18
subsection 26-1.24 SFCC 1987. SFHP rental units shall comply with the minimum19
size, unit type(s), and other structural requirements set forth in subsection 26-1.2520
SFCC 1987. SFHP developers must obtain approval for the location of SFHP rental21
units. The units or manufactured home lots shall have compatible exterior22
architectural and landscaping appearance with other units in the development.23
D. Units or manufactured home lots available for SFHP rentals shall be described in24
a SFHP proposal in sufficient detail so that such units or manufactured home lots25

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can be identified after construction or creation and occupancy. SFHP tenants must1
meet eligibility requirements at the time they initially lease an SFHP unit.2
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Respectfully submitted,5
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_____________________________7
MICHAEL J. GARCIA, MAYOR8
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APPROVED AS TO FORM:10
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_________________________________12
MARCOS D. MARTÍNEZ, CITY ATTORNEY13
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ADOPTED:16
NOT ADOPTED: _______________17
DATE: ________________________18
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ATTEST:20
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________________________________22
GERALYN F. CARDENAS, CITY CLERK23
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Legislation/2026/Bills/Updating Fee in Lieu and Affordability Requirements25Marcos D. Martinez (Sep 8, 2026 10:57:56 MDT)
Marcos D. Martinez