EDITORIAL: County Ready to Address Vacation Rental Problems? Part One

EXECUTIVE SUMMARY
These proposed changes to the Archuleta County Land Use Regulations will accomplish several things for the county. First, these changes define and implement a perpetual procedure for resolving an Improperly Divided Parcel within the County through an administrative procedure. Second, there is language presented that will redefine the method applying for a Vacation Rental Permit and re-align this process under the appropriate section of the code. Finally, these changes provide more detailed standards for Vacation Rentals, as well as new standards (where there were previously none) for Lodging Establishments and Bed & Breakfasts…

So begins a six-page document shared with the Archuleta County Commissioners — Alvin Schaaf, Ronnie Maez, and Warren Brown — at yesterday’s work session. About three dozen community members attended the meeting, in-person or via Zoom, to listen to a presentation by County Interim Development Director Pamela Flowers. The proposed changes to the County Land Use Regulations had been suggested or vetted by the County Planning Commission at public meetings, but this was, I believe, the first time most of us had heard the extent of the changes.

You can download the document — a summary of the amendments — here.

It would appear that some of the public who are involved with the vacation rental industry — vacation rental owners and real estate professionals — were taken aback by certain suggested amendments.

I was myself surprised. But not taken aback.

But then, Archuleta County has been on something of a roller coaster for several years, regarding the vacation rental problem. Which is really three problems rolled into one.

1.) The demise of formerly residential neighborhoods, turning some of them into motel districts;

2.) Skyrocketing housing prices and an attendant affordable housing crisis;

3.) A blatantly inequitable playing field, where certain types of short-term lodging are taxed at a commercial rate (hotels, motels, bed & breakfasts) and other short-term lodging is taxed at the much lower ‘residential rate’ (vacation rentals.)

I am thinking this morning about a meeting held three years ago, in March 2018 at the Ross Aragon Community Center. I had received a note from then-Archuleta County Planning Manager John Shepard, AICP.

Bill-

Planning Commission meeting for 3/14/18 will be moved to a larger room.

Archuleta County Planning Commission
Public Hearing on Vacation Rentals
Wed. 3/14/18 @6pm
North Conference Room, Community Center
451 Hot Springs Blvd, Pagosa Springs

I’m working on getting the agenda posted before end of the day tomorrow.

The reason for the larger room was related to the turnout at a previous County Planning Commission meeting, held on February 14 (Valentine’s Day) where 57 concerned citizens had signed in, and a fair number of them testified regarding their concerns about the growing number of vacation rentals in Archuleta County… also know as STRs,,, or Short Term Rentals… and by a few other designations.

The agenda packet for the March 14, 2018 meeting was indeed posted to the Archuleta County website, as promised. All 90 pages of it. (You can download it here.)  The new proposed rules were constructed around the idea that a vacation rental is a “use by right” for single-family homes and condos, with certain property requirements to be met, and operating under an annual permit renewal process.

Although vacation rentals had already revealed themselves as problematic well before 2018, the March 14 Planning Commission meeting represented the first earnest attempt by the County government to consider some controls and regulations aimed specifically at vacation rentals.

The meeting packet included the minutes of a previous Planning Commission meeting, which had taken place a month earlier, on February 14. From those minutes:

Chairman Frederick opened the meeting to public comment, asking the audience to stand as they were and speak in turn.

David Smith, Santino Pl., stated that Short-Term Rentals should be licensed and regulated. In gated communities like The Reserve, gate codes are given out and roads aren’t patrolled. Opening more will also make affordable housing worse. Suggested looking at something similar to that adopted in Denver.

Janine Haley, Casey Ct., related incidents with Short-Term Renters driving ATVs and parking on roads, events like weddings. Chairman Frederick asked if they have a Homeowners Association. Reply was positive and they are working on it.

Rick Haley, Casey Ct., related additional incidents with Short-Term Renters on subdivision roads. Not appropriate in their neighborhood.

Mike Heraty, W. Golf, [stated that] realtors and property managers can address tenants. Property owners can change their covenants to prohibit Short-Term Rentals. Nuisance and public safety are not planning issues. Has had good experience with Short-Term Rentals. Contribute to the local tourism economy. Chairman Frederick asked that, several places require designation of a local owner or property manager? Reply was positive, Durango for example, within the county where property is located, along with rule books posted in the home.

Laura Daniels, Aspen Springs, has been managing Short-Term Rentals since 1995, submitted comments. She employs people who take care of homes, her renters are families. Short-Term Rental homes wouldn’t typically be [available for] affordable housing. Chairman Frederick asked about local property management? Reply was positive.

Bob Clinkenbeard, Echo Canyon Ranch, asked about the interface of land use/zoning and Homeowners Association covenants. Chairman Frederick responded that the more restrictive [regulations] would control.

The public comments continued for almost 2 hours and included testimony from 29 people (according to the February 14 minutes). Generally speaking, the people urging more control and regulation of vacation rentals were people living near active rental homes. The people urging the Commissioners to view the vacation rental industry as a positive development in the community were mainly the owners of such units, or real estate agents that manage (or sell) vacation rentals.

During the public testimony, other communities were mentioned as examples where (presumably) reasonable industry regulations had been adopted. Ouray. Durango. Denver. Palm Springs.

At the conclusion of the March 14, 2018 meeting, the Planning Commission confirmed their recommendation, that using a residential property as a mini-hotel ought to be a “use by right’.  No special approval process, other than registering the property with the County, would be necessary. No special fee would be charged. An unlimited number of vacation rentals would be allowed in the county.

That was three years ago.  The County’s attitude has changed since then.

Read Part Two…

Bill Hudson

Bill Hudson

Bill Hudson began sharing his opinions in the Pagosa Daily Post in 2004 and can’t seem to break the habit. He claims that, in Pagosa Springs, opinions are like pickup trucks: everybody has one.