As a part of the discussions surrounding new short-term rental regulations, a recurring theme was that the $15 business license fee was too low and did not accurately represent staff time or serve as a deterrent to speculators who wished to prevent others from obtaining STR licenses. During the numerous work sessions, many current STR operators expressed that they supported the new regulations including higher fees.

In establishing the fee, a number of factors have been considered. Specifically, the actual cost to the City for the processing of a new STR license is estimated to be $426.60 per license. This includes staff time and postage. Research was conducted by staff and presented to council regarding the fees in the surrounding region, the revenue disparity between STRs and long term rental (LTR)s, and the cost of operating an STR.

Currently, the lack of housing affordability and availability is an ongoing challenge in Alamosa and the entire San Luis Valley, as documented by the Alamosa Housing Needs Assessment and the San Luis Valley Housing Needs Assessment completed in 2021. Developing new housing is burdened by high costs of construction and capital improvements. Therefore, retaining and preserving existing housing stock is a crucial component of meeting our existing housing demands. Due to this fact, and the impact that STRs have on reducing the availability and affordability of homes in our community, all fees are to be directed to a dedicated fund that will be used to implement the 2021 Housing Action Plan.

The proposed fee for a new STR license is $750, and the annual renewal fee is proposed to be $300. STR operators will not need to obtain and renew the $15 annual business license. Owner-occupied short-term rentals are now defined as Bed and Breakfast Inns, and do not require an STR license, but will still require a business license.