PLANNING AND COMMUNITY DEVELOPMENT COMMITTEE
[00:00:08]
>> GARCIA: OCTOBER 26, 2023. CAN WE START WITH ROLL CALL?
>> CLERK: MA'AM, WE HAVE A QUORUM. >> GARCIA: THANK YOU SO
[Approval of Minutes ]
MUCH. WE'LL START WITH THE EASIEST THING, WHICH IS THE APPROVAL OF THE MINUTES FROM SEPTEMBER 28 OF THE PCDC MEETING. YOU ALL SHOULD HAVE GOTTEN ACOPY. ENTERTAIN A MOTION TO APPROVE. >> I MAKE A MOTION TO APPROVE.
>> SECOND. >> GARCIA: THERE IS A MOTION AND A SECOND ON THE TABLE.
LET'S ALL VOTE. ALL IN FAVOR SAY AYE. >>
>> GARCIA: ANY OPPOSED? ANY ABSTENTIONS? MOTION CARRIES.
[Public Comment ]
THANK YOU SO MUCH. ALL RIGHT. WE WILL MOVE ON TO ITEM NO.2 -- ACTUALLY, IT'S PUBLIC COMMENT. SO WE HAVE, IT LOOKS LIKE, EIGHT PEOPLE SIGNED UP. WE'LL START WITH SHELLY GALBREATH FOLLOWED BY MARGARET LEADS AND THEY WILL BE SPEAKING ON AGENDA ITEM NO. 2. THANK YOU.
>> GOOD MORNING. I'M SHELLY GALBREATH, CHAIR OF THE SHORT-TERM RENTAL ASSOCIATION. WE'VE BEEN WORKING WITH DEVELOPMENT SERVICES AND FINANCE FOR OVER A YEAR NOW TO BETTER ENFORCE THE STR ORDINANCE.
DSD AND FINANCE ARE DOING A MUCH BETTER JOB AND WITH OUR HELP, THERE ARE MANY MORE RESOURCES TO UNDERSTAND HOW TO OPERATE A SHORT-TERM RENTAL IN SAN ANTONIO.
WE HAVE A GOOD BALANCED ORDINANCE. WITH REASONABLE COMPLIANCE RULES, DENSITY LIMITS, WHICH ARE MEANT TO HELP AFFORDABLE HOUSING STOCK.
IT HAS BECOME EVIDENT, THOUGH, THAT DESPITE THE CITY'S ENDEAVORS TO STEP UP ENFORCEMENT, IT IS INEFFECTIVE TO RELY ON VOLUNTARY COMPLIANCE -- THANK YOU FROM SHORT-TERM RENTAL OPERATIONS. GIVEN THE AVAILABLE CITY RESOURCES YOUR CHANCES OF BEING AUDITED ARE VERY LOW AND SOME OPERATE WITHOUT PERMITS FOR YEARS.
SOME NEIGHBORHOODS ARE FILLED WITH UNPERMITTED STRS CAUSING DISTRESS OVER PARKING NOISE AND OTHER RELATED PROBLEMS. THE CITY TOO, MAINLY, IS MISSING OUT ON MILLIONS IN UNCOLLECTED HOTEL TAX REVENUE. DESPITE AND IMPROVING AN STR REPORT, IT IS ESTIMATED THERE ARE STILL SEVERAL THOUSANDS UNPERMITTED OPERATIONS IN SAN ANTONIO.
ABOUT 50% BY SOME ESTIMATES. WE HEAR STORIES EVERY DAY OF THE IMMENSE FRUSTRATION FELT BY PERMITTED LEGAL SHORT-TERM RENTAL HOSTS. THEIR DEDICATION TO COMPLIANCE AND BEING GOOD OPERATORS IS OFTEN OVERSHADOWED BY THE DISHEARTENING EASE WITH WHICH SOME CIRCUMVENT THE VERY ORDINANCE DESIGNED TO PROTECT THEIR LIVELIHOODS AND ULTIMATELY PROTECT OUR NEIGHBORHOODS. TO ENSURE ROBUST COMPLIANCE, THERE IS A NEED FOR ENHANCEMENTS TO STRENGTHEN THE EXISTING ORDINANCE.
THE SHORT-TERM RENTAL PLATFORMS THAT OPERATE IN OUR CITY SHOULD BE MANDATED TO VERIFY PERMIT NUMBERS AND COLLECT AND REMIT HOTEL OCCUPANCY TAX. THIS IS A PRACTICE ROUTINELY USED IN LOCATIONS AROUND TEXAS AND THE WORLD. JUST IMAGINE A SCENARIO IN WHICH WE ACHIEVE 100% PERMIT COMPLIANCE AND 100% TAX COLLECTION WITH A FEW SIMPLE ADJUSTMENTS TO THE ORDINANCE. THIS WOULD NOT ONLY OFFER NEIGHBORHOODS SOME RELIEF BUT ALSO THE CITY WITH THE RELIABLE SOURCE OF TAX REVENUE WHILE CREATING A FAIR AND LEVEL PLAYING FIELD FOR EVERY STR HOST. LAST YEAR THE FORMER DISTRICT 1 COUNCILMAN SUBMITTED A CCR THAT WAS SIGNED BY SEVERAL OF YOU, INCLUDING DR. GARCIA, COUNCILWOMAN CASTILLO, AND COUNCILMAN COURAGE. THE CCR'S NO LONGER ACTIVE.
SO WE WOULD APPRECIATE IT IF ALL OF YOU WOULD SUPPORT A NEW CCR AND ENDORSE THIS ENDEAVOR.
THANK YOU. >> GARCIA: THANK YOU, SHELLY.
MARGARET LEADS. >> GOOD MORNING. THANK YOU, COMMITTEE MEMBERS AND COUNCIL MEMBERS FOR YOUR SERVICE. I AM MARGARET LEADS.
I LIVE AT 308 KING WILLIAM . I'M PAST PRESIDENT OF THE KING WILLIAM ASSOCIATION.
I GREW UP IN MEMPHIS, TEXAS UP IN THE PANHANDLE AND ONE OF THE BEST THINGS ABOUT GROWING UP
[00:05:03]
THERE WAS KNOWING MY NEIGHBORS. ONE OF THE BEST THINGS ABOUT LIVING IN KING WILLIAM IS HAVING NEIGHBORS WHO ARE THERE FOR EACH OTHER, WE KNOW EACH OTHER AND WE ARE THERE FOR GOOD AND BAD TIMES. WHEN YOU HAVE AN ABSENTEE LANDLORD RENTING TO STRANGERS IN THE NEIGHBORHOOD, YOU LOSE A NEIGHBOR.WITH ALL THAT ENTAILS. NO ONE TO CARE ABOUT THE WELL-BEING OF OTHERS IN THE HOOD. NO CHILDREN TO ATTEND LOCAL SCHOOLS.
NO ONE WITH VESTED INTEREST IN PROTECTING THE RESIDENTIAL NATURE OF THIS RARE AND PRECIOUS HISTORIC AREA. WE HAVE EXPERIENCED, WITH THE INFLUX OF STR TYPE 2S, HOMES THAT COULD PROVIDE PERMANENT HOUSING CONVERTED INTO STR 2 BUSINESS VENTURES, SOME OF WHICH HAS BECOME PARTY VENUES THAT HAVE CREATED ISSUES WITH PARKING, NOISE DISTURBANCE, ANTI-SOCIAL BEHAVIOR, AND DEBRIS. AS WE EXPERIENCED WHEN THERE WAS A LARGE DISRUPTIVE EVENT IN THE 200 BLOCK OF MADISON EARLIER THIS YEAR.
POLICE DISPATCHED TO THAT EVENT WERE NOT EMPOWERED TO ENFORCE ORDINANCES PROHIBITING EXCESSIVE NOISE OR UNRULY, DISRUPTIVE BEHAVIOR. THIS WAS A FRUSTRATING WASTE OF POLICE RESOURCES. THE CURRENT THREE-STRIKE POLICY, NECESSARY TO REVOKE THE STR LICENSE OF VIOLATORS, IS TOO LENIENT. PLEASE STRENGTHEN IT.
WE URGE THIS COUNCIL TO HELP US STOP THE NEGATIVE EFFECTS OF STR 2S IN OUR NEIGHBORHOODS BY RESURRECTING THE CCR FILED IN DECEMBER 2022 BY OUR PREVIOUS COUNCILMAN, PROPOSING A STRONGER STR ORDINANCE AND ENFORCEMENT TO PROTECT OUR NEIGHBORHOODS.
THANK YOU. >> GARCIA: THANK YOU, MARGARET.
CYNTHIA SPIELMAN FOLLOWED BY CARL TEAGUE . OKAY.
CARL TEAGUE FOLLOWED BY GEMMA KENNEDY. >> CARL ROBIN TEAGUE AND I LIVE AT 306 WEST KING'S HIGHWAY. THAT IS IN THE MONTE VISTA HISTORIC DISTRICT AND I'M HERE ON BEHALF OF MONTE VISTA HISTORICAL ASSOCIATION. SO I WANT TO BRING TO YOUR ATTENTION SIX DIFFERENT EVENTS -- I KNOW THAT'S A DEFINED TERM.
SOME OF THESE ACTUALLY, IN OUR OPINION, ENDED UP IN BEING RIOTS.
THE FIRST TWO THAT I WANT TO BRING TO YOUR ATTENTION HAPPENED AT LEAST A YEAR AGO ON FRENCH PLACE AND PAUL KINNISON AND TRUDY KINNISON, WHO ARE RESIDENTS ON FRENCH PLACE, BROUGHT THAT TO THE ASSOCIATION'S ATTENTION AND MY UNDERSTANDING THAT WAS MINOR IN COMPARISON TO WHAT WAS TO COME. APPARENTLY THEY WERE RELATIVELY SMALLER PARTIES, MAYBE WEDDING RECEPTIONS. THAT'S NUMBER ONE AND TWO.
NUMBER THREE OCCURRED, I THINK WITHIN THE LAST YEAR, AT 401 EAST THAT WAS SUPPOSEDLY A WEDDING RECEPTION -- WEDDING OR WEDDING RECEPTION.
THERE WERE CARS PARKED UP AND DOWN THE STREET, BOTH SIDES OF THE STREET.
AND BOTH SIDES OF THE STREET ARE NO PARKING ZONES. IT SO HAPPENS THEY WERE PARKING IN FRONT OF THE HOME OCCUPIED BY THE CHIEF OF POLICE, WILLIAM MCMANUS.
THERE WERE COMPLAINTS ABOUT THAT GATHERING, THAT EVENT, AND MY UNDERSTANDING IS THE 401 EAST ROSEWOOD, SHORT-TERM RENTAL PERMIT WAS REVOKED. OF COURSE WITH THESE REVOCATIONS, THERE'S TWO I'M GOING TO TALK ABOUT, THEY'RE GOING TO BE BACK AGAIN AND WE'LL HAVE TO SEE WHAT'S GOING TO HAPPEN WHEN THEY COME BACK AGAIN.
THE NUMBER FOUR OCCURRED AT 118 EAST SUMMIT AVENUE. THE OWNER IS PAULA KOTHMANN.
THAT PERMIT WAS ALSO REVOKED. IT WAS REVOKED, AT LEAST IN PART, BECAUSE OF A COMPLAINT BY HER NEIGHBOR, CAROL VOKES, WHICH IF I HAVE TIME TO READ, I WILL READ TO YOU HER STATEMENT. THAT ONE BECAME A RIOT. THERE ARE REPORTS THAT THERE WERE 200 TO 500 KIDS THAT WERE THERE DURING THE PERIOD OF TIME.
[00:10:04]
AND WHEN I COVERED THE COMPLAINTS, ONE OF THE COMPLAINTS WOULD BE JUST A STREET RIOT THAT OCCURRED. THAT ONE RECEIVED SOME PUBLICITY.SOME OF THE KIDS THAT WERE THERE JUMPED ON TOP OF COP CARS AND ROCKED THEM AROUND.
>> GARCIA: THANK YOU, MR. TEAGUE. >> THAT'S IT?
>> GARCIA: THAT WAS IT. GEMMA KENNEDY. >> LET ME SAY THERE WERE TWO OTHERS, 344 REST ROSEWOOD AND ANOTHER ONE AT 344 WEST ROSEWOOD .
THOSE ENDED IN RIOTS ALSO. >> GARCIA: THANK YOU. AND GEMMA WILL BE FOLLOWED BY
BIANCA MALDONADO. >> HI. ANY NAME IS GEMMA KENNEDY, I'M FROM RIVER ROAD NEIGHBORHOOD. I'M ON THE PLANNING COMMITTEE AND I'M ALSO A TIER 1 NEIGHBORHOOD PARTICIPANT. FIRST, I WOULD LIKE TO THANK MICHAEL AND LOGAN FOR THE WORK THEY HAVE DONE TO IMPROVE TYPE 2 STR MANAGEMENT . BUT YET INNER CITY NEIGHBORHOODS, LIKE MY OWN, EXPRESS CONCERN AND FRUSTRATION WITH THE LACK OF ENFORCEMENT WHEN STRS BECOME PARTY BUILDINGS IN NEIGHBORHOODS. AS WE USED TO SAY, PARTY DOWN, AND THEY ARE PARTYING DOWN. WHAT THE LAST SPEAKER WAS TALKING ABOUT WAS THE MONTE VISTA PARTY, WHICH IS SO EGREGIOUS IT HAS TO BE USED AS AN EXAMPLE.
AS AN STR TURNED INTO AN EVENT PARTY CENTER, WITH OVER 200 PEOPLE IN ATTENDANCE AND WHEN THE SAPD ARRIVED, THE HOUSE PARTY-GOERS DANCED ON THEIR CARS.
YES, THEIR PERMIT WAS REVOKED BUT NOT BECAUSE OF THE PARTY OR THE TREATMENT OF OUR POLICE, BUT IT ONLY WAS BECAUSE THEY ADVERTISED THE VENUE IN THE WRONG PLACE AND SO THEIR PERMIT WAS PULLED. AS WE MENTIONED BEFORE, ON NOVEMBER 28, 2022, A CCR WAS PROPOSED AND SUPPORTED BY SOME OF THE COUNCIL MEMBERS HERE. AND I KINDLY REQUEST THAT THIS CCR BE REVIEWED AND ANOTHER CCR GO FORWARD TO ALLOW STRONGER ENFORCEMENT THAT LEADS TO REVOKED PERMITS. YOU KNOW, WE'RE REALLY CLOSE TO GETTING THESE TYPE 2 STRS RIGHT FOR THE RENTERS AND FOR THE NEIGHBORS. THANK YOU.
>> GARCIA: THANK YOU SO MUCH, GEMMA. BIANCA MALDONADO FOLLOWED BY
NATHAN CASARES. >> MY NAME IS BIANCA MALDONADO.
AS MANY OF YOU HAVE KNOWN, I HAVE SAT ON THE STAKEHOLDER GROUP THAT CREATED THE SHORT-TERM RENTAL ORDINANCE YEARS AGO. I ALSO SAT ON THE TECHNICAL REVIEW FOR THE UDC AMENDMENTS. THERE WAS A UDC AMENDMENT THAT WAS PROPOSED, ESSENTIALLY TO BAN TYPE 2S BECAUSE OF THE ALL THE ISSUES ONGOING. AS A RESULT OF WORKING THROUGH THE UDC AMENDMENT PROCESS, MANY NEIGHBORHOODS CAME TOGETHER AND WORKED WITH THE DEVELOPMENT SERVICES TO ESSENTIALLY FOR YOU TO SEE THE RESULTS YOU'RE GOING TO SEE TODAY.
THERE WERE A LOT OF CHANGES THAT OCCURRED BECAUSE THERE WAS A LOT OF ENFORCEMENT THAT WAS NOT OCCURRING. THERE WAS A LOT OF MANAGEMENT OF THE ORDINANCE THAT WAS FALLING SHORT. AND I WOULD LIKE TO THANK DSD FOR ALL THEIR HARD WORK AND THEIR INVESTMENT WHEN THEY MADE IN THE FISCAL YEAR '23 BUDGET AND THEN ON JANUARY 1ST OF THIS YEAR BY MORE THAN DOUBLING THE DEPARTMENT'S STAFF TO SUPPORT MANAGING THE ORDINANCE AND CREATING A DEDICATED TEAM. THAT HAS ESSENTIALLY MOVED THE NEEDLE.
BUT WE'RE NOT NEARLY THERE YET. I THINK AT THE END OF THE DAY WHEN YOU LOOK AT SHORT-TERM RENTALS OPERATING IN NEIGHBORHOODS, THE WHOLE ESSENCE OF THE ORDINANCE WAS TO PROTECT NEIGHBORHOODS BUT ALSO TO PROTECT THE INDIVIDUALS WHO WILL BE STAYING IN THESE SHORT-TERM RENTALS. AND RIGHT NOW WE'RE NOT FULLY ABLE TO HAVE ALL OF THOSE UNITS THAT ARE OPERATING PERMITTED. ROUGHLY ABOUT HALF ARE PERMITTED. WHAT'S GOING ON WITH THE OTHER HALF? THAT MEANS THEY'RE NOT PAYING HOT TAX. WHEN YOU LOOK AT THE REPORT AND NUMBER OF REVOCATIONS OCCURRED, HOW MUCH MONEY DID WE MISS OUT ON? ADD THAT WITH THE MONEY OF THE UNPERMITTED SHORT-TERM RENTALS OPERATING IN OUR CITY.
IT IS MILLIONS, FOLKS. ONE OF THE OTHER THINGS WE SIT BACK AND LOOK AT WITH THE ORDINANCE OF THE THINGS THAT NEED TO BE TWEAKED, YOU HEARD ABOUT THESE PARTIES THAT OCCURRED. IT WAS BECAUSE THEY ADVERTISED AN EVENT.
IT'S CLEAR THAT THE THREE-STRIKE RULE THAT CURRENTLY EXISTS IN THE ORDINANCE WOULD NEVER COME TO FRUITION. NO ONE IS EVER GOING TO GET THREE STRIKES AND THAT'S WHY WE HAVE TO REVISIT IT. THEN YOU LOOK AT THE APPLICATION FEE. LOOK AT THE MANPOWER THAT HAS INCREASED AT DSD TO SUPPORT THIS ORDINANCE. IS THE FEE ADEQUATE? IS IT RECAPTURING OUR COSTS? THOSE ARE ALL THINGS FAIR AND EQUAL TO EVALUATE FROM A BALANCED PERSPECTIVE AND I REALLY HOPE THAT COUNCIL MEMBERS WHO ARE PRESENT HERE TODAY, WHO PREVIOUSLY SIGNED ON
[00:15:03]
THIS CCR THAT IS NO LONGER VALID SEEK TO WORK WITH OTHER COUNCIL MEMBERS TO BRING FORWARD A NEW CCR TO ADDRESS THESE CONCERNS, BECAUSE WE DO NEED A STAKEHOLDER GROUP THAT IS BALANCED. TO OPEN IT UP AND ADDRESS THESE CONCERNS.THAT'S THE CRITICAL ASK HERE TODAY. AND TO REALLY THANK DEVELOPMENT SERVICES FOR THEIR CONTRIBUTIONS AND REALLY WORKING WITH THE NEIGHBORHOOD, REALLY SINCE MARCH AND APRIL OF LAST YEAR TO GET TO WHERE WE ARE TODAY.
AND ALSO THE FINANCE DEPARTMENT, BECAUSE IT ISN'T JUST DSD, IT'S THE FINANCE DEPARTMENT AND THEN AVENUE, THE NEW CONTRACT. THE OTHER THOUGHT I WANT TO LEAVE WITH YOU IS OUR NEIGHBORHOODS ARE CHANGING. I HAVE A BAD ACTOR IN MY NEIGHBORHOOD. HE'S A BAD ACTOR IN THREE OR FOUR OTHER NEIGHBORHOODS.
PLEASE HELP US GIVE DSD THE TOOLS TO GIVE ADEQUATE ENFORCEMENT SO WE CAN BRING COMPLIANCE IN. AND DON'T FORGET ABOUT OUR SCHOOLS.
THESE SHORT-TERM RENTALS, THESE FOLKS AREN'T SENDING KIDS TO SCHOOLS.
THANK YOU. >> GARCIA: NATHAN CASARES FOLLOWED BY JOSEPH VALDEZ.
>> HELLO. MY NAME IS NATHAN CASARES. I'M A RESIDENT OF RIVERSIDE TERRACE, NOW MISSION TRAIL COMMUNITY. I HAVE LIVED THERE FOR THREE YEARS AND I AM HERE TO TALK TO YOU ABOUT THE FUNDING INCREASE FOR MISSION TRAIL COMMUNITY ASSOCIATION . THE INCREASE IN FUNDING WILL IMPACT MY FAMILY AND I BY GIVING US THE OPPORTUNITY TO STAY IN THE COMMUNITY. THE COMMUNITY THAT WE LIVE IN IS AN AREA THAT WE ARE PROUD TO REPRESENT. WE ARE SO COMFORTABLE WITH THE AREA THAT -- OF THE MEMBERS IN THE COMMUNITY, THEY ARE LIKE A FAMILY TO US.
I RESIDED WITH ANOTHER FAMILY SIMILAR TO MINE. IT WAS 16 YEARS IN THE MAKING.
WE WERE AROUND THE SAME NEIGHBORS SAYING HELLO AND GOOD-BYE, RELIGIOUSLY.
HOWEVER, IT ENDED IN THE MATTER OF THREE WEEKS. NOW ONCE A THRIVING COMMUNITY, GONE WITHOUT ANY TRACE OF WHAT WE WANTED TO LEAVE BEHIND. FINDING A NEW HOME WAS DIFFICULT, KNOWING THAT WE FOUND ONE WAS THE MOST IMPORTANT.
I SUPPORT THE FUNDING FOR MY COMMUNITY DEVELOPMENT BECAUSE BY PROVIDING AN INCREASE OF FUNDS WE ARE ABLE TO STAY WITH THE FAMILY THAT WE HAVE CREATED OVER TIME.
AND I'M ABLE TO STAY IN SCHOOL. I'M CURRENTLY A SOPHOMORE AT TRINITY UNIVERSITY MAJORING IN PHILOSOPHY WITH A SPECIAL INTEREST IN PRE-MED.
MY DREAM IS TO BE A RADIOLOGIST SO WITHOUT THE MISSION TRAILS COMMUNITY ASSOCIATION INCREASE FUND, I WOULDN'T BE ABLE TO LIVE WITH THE SAME COMMUNITY THAT I HAVE ALREADY ESTABLISHED FOR QUITE SOMETIME NOW. AND THANKS TO THE OPPORTUNITY GIVEN BY ROCK USA AND MANY OTHER BEHIND THE SCENES. THANK YOU TO ALL THE UPGRADES IN OUR COMMUNITY AND MAKING THIS A PLACE TO LIVE IN . I WOULDN'T BE ABLE TO GO TO SCHOOL OR STAY WITH MY FAMILY
WITHOUT Y'ALL'S HELP. THANK YOU. >> GARCIA: THANK YOU,
NATHAN. JOSEPH VALDEZ. >> GOOD MORNING, LADIES AND GENTLEMEN. MY NAME IS JOSEPH VALDEZ. I RESIDE AT 2315 MISSION ROAD, WHICH IS NOW GOING TO BE MISTRAILS HOME ASSOCIATION GOING ON EIGHT YEARS, IT'S BEEN A JOURNEY. THIS ONE IN ITSELF HAS BEEN A JOURNEY.
A LOT OF GRATITUDE. A LOT OF THANKS TO THE CITY OF SAN ANTONIO FOR ITS EFFORTS, MAKING SURE NONE OF ITS RESIDENTS WERE DISPLACED. BIG THANK YOU TO THE ROC USA MODEL. IT'S BEEN AN AMAZING JOURNEY. I'M VERY THANKFUL AND I'M SURE THERE'S GOING TO BE MANY MORE PEOPLE WHO JUST DON'T UNDERSTAND THE MAGNITUDE OF WHAT'S GOING ON. WE WERE JUST SCARED AT FIRST. NOW EVERYONE IS STARTING TO SEE THE LIGHT AT THE END OF THE TUNNEL WHERE THINGS ARE GOING TO GET BETTER FROM HERE ON OUT. THERE'S NOT A LOT TO SAY EXCEPT THANK YOU TO EVERYONE HERE WHO HELPS MANAGE THE CITY OF SAN ANTONIO. AND FOR GIVING ALL THE RESIDENTS THE CHANCE THAT THEY NEED BEFORE THEY WERE DISPLACED.
IT COULD HAVE GONE THAT WAY AND IT DIDN'T. FOR THAT, I'M GRATEFUL.
THANK YOU, ALL. >> GARCIA: THANK YOU, MR. VALDEZ.
THAT IS IT FOR OUR PUBLIC COMMENT TODAY. AND SO WE WILL MOVE ON TO THE
[Briefing and Possible Action on ]
PRESENTATION ON ITEM 2, WHICH IS A BRIEFING ON THE CITY OF SAN ANTONIO'S SHORT-TERM RENTAL ORDINANCE. THAT WILL BE PRESENTED BY MICHAEL SHANNON.MICHAEL SHANNON, THE FLOOR IS YOURS. >> THANK YOU, COUNCILWOMAN AND COUNCIL MEMBERS. AGAIN, I'M MIKE SHANNON, DIRECTOR OF DEVELOPMENT SERVICES. WE'RE GOING TO TALK A LITTLE BIT ABOUT SHORT-TERM RENTALS TODAY. JUST TO GO BACK A LITTLE BIT, THE ORDINANCE FOR SHORT-TERM
[00:20:04]
RENTALS FOR APPROVED AFTER A VERY LENGTHY PROCESS. THIS WAS ACTUALLY ONE OF THE LONGER STANDALONE ORDINANCE MY TEAM AND I WORKED ON. WE GOT IT TO THE FINISH LINE IN 2018. BEFORE THEN WE DIDN'T HAVE AN ORDINANCE THAT REQUIRED ANY PERMITTING OR REGULATION ON SHORT-TERM RENTALS. IT'S FOR SAN ANTONIO -- CERTAINLY A LOT OF CITIES AND JRISDICTIONS NOT ONLY AROUND THE COUNTRY AND WORLD HAVE ORDINANCES NOW BUT AT THE END OF THE DAY IT REQUIRES A PERMIT AND A PAYMENT OF TAXES TO RUN A SHORT-TERM RENTAL. THERE'S THE NUMBERS FOR THE TAX RATES FOR BOTH THE CITY AND COUNTY. SO WHAT IS A SHORT-TERM RENTAL? I THINK WE HEAR THAT A LOT. AIRBNB, VRBO AND OTHER PLATFORMS BUT IT'S A RESIDENTIAL DWELLING UNIT, APARTMENT, CONDO, ET CETERA THAT PEOPLE RENT OUT FOR LESS THAN 30 DAYS. IT'S NOT YOUR LONG-TERM RENTAL, SOMEONE SIGNS A SIX MONTH OR A YEAR CONTRACT. ANYTHING LESS THAN 30 DAYS BUT MORE THAN 12 HOURS.SO TYPICALLY COOKING FACILITIES, BATHROOM. WE HAVE SOME REQUIREMENTS IN THE ORDINANCE LIKE A MINIMUM OF OFF-STREET PARKING SPACE FOR THOSE, ET CETERA.
THE BIG ISSUE TO REMEMBER IS WE HAVE TWO TYPES OF SHORT-TERM RENTALS HERE.
VERY COMMON IN A LOT OF THE SHORT-TERM RENTAL ORDINANCES AROUND THE WORLD.
OWNER-OCCUPIED VERSUS NON-OWNER-OCCUPIED. TYPE 1 IS THE OWNER OCCUPIED.
I LIVE THERE. IT'S MY HOME. I RENT OUT A ROOM OR ACCESSORY DWELLING UNIT OR GRANNY FLAT IN THE BACK. I'M THERE AND IN CONTROL OF THE PROPERTY. IT'S MY HOME. I'M THERE.
THE SECOND ONE IS TYPE 2, WHICH A LOT OF THE CONVERSATION THAT WE HAD BACK IN 2017, 2018 AND CONTINUED TODAY, YOU HEARD SOME OF IT. THE OWNER JUST RENTS OUT THE ENTIRE UNIT. THEY DON'T LIVE THERE. THEY MAY HAVE MANY OF THEM IN THE CITY OR AROUND THE COUNTRY. BUT THEY ARE NOT OWNER OCCUPIED. THEY'RE JUST RENTED OUT TO WHOEVER SHOWS UP THAT WEEKEND.
WHERE ARE SHORT-TERM RENTALS ALLOWED? ALMOST EVERYWHERE.
EVERY ZONING DISTRICT ALLOWS THEM BUT FOR THE HEAVY INDUSTRIAL, BUT THEY ARE ALLOWED IN RESIDENTIAL, MULTIFAMILY, MANY OF THE LOWER C-1S, C-2S BUT THEY ARE ALLOWED IN ZONING AS PART OF THE ORDINANCE. JUST A REMINDER, OUR ORDINANCE, WE WORKED VERY HARD TO TRY TO BRING TOGETHER A BALANCED ORDINANCE BECAUSE, AS SOME OF YOU REMEMBER AND PROBABLY STILL HEAR IS SOME PEOPLE THINK THEY SHOULD BE BANNED OUTRIGHT.
SOME BELIEVE THERE SHOULD BE NO REGULATION. I THINK WE SUCCESSFULLY CREATED A BALANCED SET OF REGULATIONS. FOR A TYPE 1 OWNER OCCUPIED, THERE'S NO DENSITY CAP.
THE REALITY IS MOST PEOPLE FEEL THAT, HEY, THE OWNER STILL LIVES THERE, THEY'RE IN CONTROL OF THE PROPERTY. THERE'S NOT A LOT OF PROBLEMS WITH THAT.
IT'S A GREAT WAY TO MAYBE MAINTAIN OR GENERATE SOME INCOME FOR PEOPLE.
WE HAD SOME OF THAT CONVERSATION THE LAST COUPLE OF YEARS.
BUT AS PROPERTY VALUES GO UP, TAXES GO UP, YOU CAN RENT OUT BOTH SHORT-TERM AND LONG-TERM, SOME SORT OF SPACE IN YOUR HOME. THAT WAS A DISCUSSION.
NO REAL DENSITY CAP THERE. BUT FOR TYPE 2, THE QUESTION IS HOW MANY IS TOO MANY IN A NEIGHBORHOOD? HOW MANY IS TOO MANY THAT IT BECOMES MORE OF A COMMERCIAL OR HOTEL DISTRICT? SO WE LANDED ON, BY RIGHT YOU CAN HAVE 12.5% OF THE UNITS ON A BLOCK FACE. WHAT DOES THAT MEAN? ABOUT ONE-EIGHTH OF THE UNITS ON A BLOCK FACE REALLY IS OKAY. AND THAT NUMBER, IT WAS DEBATED HEAVILY THROUGHOUT 18 MONTHS WE DID THIS ORDINANCE. IT WENT BACK AND FORTH SIGNIFICANTLY. THAT HAS LANDED PRETTY GOOD AND IT SEEMS TO BE WORKING IN TERMS OF MAKING SURE WE DON'T HAVE A CONGLOMERATE OF THEM ON A NEIGHBORHOOD.
WE ALSO PROVIDED ON MULTIFAMILY. THE QUESTION WAS WHAT ABOUT APARTMENTS? CAN APARTMENTS RENT OUT SHORT-TERM RENTALS? THE ANSWER IS NO. THEY HAVE DENSITY LIMITS AS WELL.
SAME THING. ABOUT ONE-EIGHTH CAN GET THAT BY RIGHT.
NOW, IF YOU WANT MORE, YOU CAN ASK FOR A SPECIAL EXCEPTION THROUGH THE BOARD OF ADJUSTMENT. WE HAVE HAD SOME OF THOSE. WE DIDN'T KNOW HOW MANY WE WOULD GET. WE HAVE HAD A FEW DOZEN OF THOSE OVERALL IN FIVE YEARS.
SO THERE AREN'T TOO MANY OF THOSE REQUESTS. MOST OF THOSE GOT DENIED BECAUSE I THINK THE IDEA OF THE ORDINANCE AND THE IDEA THEY WOULD HAVE TO SHOW A HARDSHIP.
BUT MOST OF THOSE GET DENIED. A FEW OF THEM WERE APPROVED. BUT THAT WAS THE MEAT OF THE ORDINANCE BACK THEN. I THINK THE FEE WAS MENTIONED. IT'S A VERY REASONABLE FEE.
IT'S ESSENTIALLY 30 BUCKS A YEAR BUT YOU PAY $100 FOR A THREE-YEAR PERMIT AND THEN THE RENEWAL IS THE SAME. THERE ARE SOME LIFE SAFETY REQUIREMENTS.
I PUT THEM UP THERE. WE WANT TO MAKE SURE PEOPLE HAVE SMOKE DETECTORS, FIRE
[00:25:03]
EXTINGUISHERS, ET CETERA. A LOT OF THOSE ARE SELF-CERTIFIED SO IT WAS DEBATED ON HOW THAT WOULD BE VERIFIED. LET'S TALK ABOUT WHERE WE'RE AT RIGHT NOW. HERE'S JUST SOME PERMIT DATA. SO WE HAVE ACTIVE PERMITS, ABOUT 3200 PERMITS. WE HAVE ISSUED, OVER TIME, 5500 PERMITS BUT SOME HAVE BEEN REVOKED, SOME HAVE DROPPED OFF. PEOPLE SAID THEY DON'T WANT TO DO IT ANYMORE. THINK OF THAT NUMBER, 3240 NOW, AND ALMOST 80% IS THE TYPE 2 PERMITS THAT ARE NON-OWNER OCCUPIED. WE HAVE SOME DATA WHEN THEY CAME IN AND RENEWALS, AND WE CAN TALK ABOUT THAT, IF YOU LIKE.RIGHT NOW I WILL TELL YOU WE STILL GET ABOUT 30 APPLICATIONS FOR NEW SHORT-TERM RENTALS A WEEK. IT'S STILL A VERY ACTIVE COMMUNITY.
AND PEOPLE ARE STILL SEEKING THOSE TYPE OF PERMITS. WE SHOW THIS SLIDE BECAUSE PEOPLE ASK US WHERE ARE THEY, WHICH AREAS OF TOWN HAVE THE MOST.
THIS IS NOT REALLY SURPRISING. THE MOST ARE IN DISTRICT 1 AND 2, KIND OF NEAR THE INNER CITY. AND THEN IT KIND OF, YOU KNOW, UP AND DOWN A LITTLE BIT THE REST OF THE CITY THERE. BUT REALLY DISTRICT 1 AND DISTRICT 2 HAVE THE HIGHEST NUMBER. NOW WE TALKED ABOUT TAX, RIGHT? ONE OF THE THINGS WHEN WE WERE DEVELOPING THIS ORDINANCE WAS, YOU KNOW, THERE WAS ONLY A COUPLE HUNDRED OR SO THAT WERE -- OF THESE SHORT-TERM RENTALS.
EVEN THOUGH THERE WAS NO PERMIT REGULATION, THEY DID HAVE TO PAY TAXES AND THERE WAS A LARGE CONCERN THAT THOSE OPERATING WERE NOT PAYING TAXES. HERE'S THE HOT TAX DATA THAT WE'VE COLLECTED, 14-PLUS MILLION DOLLARS OVER THE FIVE YEARS OF THIS ORDINANCE.
WE HAVE BEEN TRACKING THAT. I KNOW OUR FINANCE DEPARTMENT IS HERE TODAY AND WILL HELP ANSWER ANY OF THOSE QUESTIONS THERE. IT DOES GENERATE SIGNIFICANT REVENUE. AND LET'S WALK THROUGH THE ENFORCEMENT.
YOU'RE RIGHT. ENFORCEMENT HAS BEEN CHALLENGING.
IT IS NOT EASY. THE FIRST COUPLE OF YEARS, ACTUALLY THE FOCUS WAS ON EDUCATION, PERMITTING, GOING THROUGH, LEARNING A LOT. MY STAFF AND I LEARNED A LOT.
THE OPERATORS LEARNED A LOT, AS WELL AS THE NEIGHBORHOODS. REALLY IT'S AS SIMPLE AS THIS: IF YOU SEE SOMETHING IN YOUR NEIGHBORHOOD, YOU FEEL THAT THERE'S AN ILLEGAL SHORT-TERM RENTAL OR A PROBLEM AT A SHORT-TERM RENTAL, CALL 3-1-1. THAT'S THE EASIEST ONE.
WE HAVE A 3-1-1 COMPLAINT THAT WILL COME INTO OUR OFFICE AND WE WILL START AN ENFORCEMENT INVESTIGATION ON THAT. THE SECOND ITEM IS -- ACTUALLY WE JUST LAUNCHED LAST MONTH WITH OUR NEW THIRD-PARTY VENDOR, AVENUE, THAT WAS APPROVED LAST YEAR.
IT WENT LIVE THIS SUMMER BUT WE HAVE A 24-HOUR CONTACT. THERE'S A PHONE NUMBER THERE.
YOU CAN ACTUALLY CALL OR GO ONLINE, ISSUE, AND SUBMIT A NOTICE OF COMPLAINT.
THAT WILL COME TO US AND WE WILL INVESTIGATE THAT. THAT IS REALLY BRAND NEW FOR US. WE'RE USING THAT TOOL NOW. IT'S NOT BEEN USED A LOT.
IT'S ONLY BEEN A FEW WEEKS BUT WE THINK THAT WILL HELP AS WELL.
NOW, WHAT ARE THE ISSUES? YOU HEARD SOME OF THEM WITH SOME OF THE SPEAKERS.
AND WHETHER IT'S OPERATING WITHOUT A PERMIT, NOT PAYING YOUR HOT, PROPERTY MAINTENANCE ISSUES, NUISANCE, THOSE ARE THE TYPES OF THINGS BEING REPORTED.
WE HAVE SOME DATA ON HOW MANY -- LAST YEAR WE HAD 300-PLUS VIOLATIONS SUBMITTED TO US. WE ACTUALLY DID ABOUT 1500 INVESTIGATIONS BECAUSE WE GOT INFORMATION FROM A THIRD PARTY THAT THERE WERE SOME PROBLEMS AS WELL.
WE DID 1500 INVESTIGATIONS. JUST UNDER 1,000 OF THOSE WERE VIOLATIONS.
WITH THOSE, WE'VE GOT PEOPLE WHO HAVE COME INTO COMPLIANCE BY STOP DOING IT, COME INTO COMPLIANCE BY GETTING A PERMIT AND GETTING YOUR HOT PAYMENTS PAID.
OR WE HAVE ABOUT 170 CODE CITATIONS THAT WE'VE ISSUED. ABOUT HALF OF THEM HAVE BEEN ADJUDICATED IN COURT WITH FINES. EVERY SINGLE ONE OF THEM WAS FOUND LIABLE. WE GOT HALF OF THOSE WAITING FOR THEIR COURT HEARING.
THAT'S JUST FY23 DATA, TO GIVE YOU SOME CONTEXT. WE TALKED ABOUT PERMIT REVOCATIONS -- OR YOU HEARD ABOUT IT. AS YOU'LL SEE IN THE CHART THERE, WHEN WE STARTED THIS ORDINANCE, IT REALLY WASN'T ABOUT ENFORCEMENT, IT WAS ABOUT EDUCATION, HOW DO WE GET PERMITTED PROPERLY. WE WERE HEAVY ON LET'S GET YOU INTO COMPLIANCE. THE NUMBERS OF PERMITS QUICKLY WENT FROM 500 WHEN THE ORDINANCE STARTED, UP TO A COUPLE THOUSAND. NOW WE'RE AT THAT 3200.
BUT AS YOU'LL SEE, WE DON'T REVOKE MANY PERMITS BECAUSE WE WANTED TO GIVE PEOPLE A CHANCE TO DO IT RIGHT. CERTAINLY, THOUGH, IN CONVERSATIONS WITH MANY OF THE MEMBERS OF THE COMMUNITY IN TERMS OF THE SHORT-TERM RENTAL ASSOCIATION, NEIGHBORHOOD GROUPS, AND LEADERS LIKE YOU HEARD FROM TODAY, WE HAVE NOW RAMPED UP OUR ENFORCEMENT EFFORTS AND JUST THIS YEAR OVER 900 OF THE 1300 PERMIT REVOCATIONS.
THAT'S SERIOUS BUSINESS BECAUSE WHETHER IT'S FOR HOT PAYMENTS NOT BEING PAID, WHETHER IT'S
[00:30:04]
FOR HAVING AN EVENT SPACE, WHICH IS TOTALLY ILLEGAL. THAT WAS PART OF THE ORDINANCE, OR OTHERS, THAT'S WHAT WE'RE HAVING REVOCATIONS. THAT'S A CONSTANT BATTLE NOW.IT'S SOMETHING WE'RE WORKING ON AND EXECUTING. AN IMPORTANT ELEMENT OF OUR SHORT-TERM RENTAL PROGRAM IS THIS THIRD-PARTY CONTRACT. WHEN WE STARTED THE PROGRAM BACK IN '19, WE HAD A COMPANY CALLED HOST COMPLIANCE AND THEY WERE THE COMPANY THAT WOULD LOOK AT -- CONSTANTLY LOOK AT 50, 60, 70 DIFFERENT PLATFORMS. WE KNOW THERE'S A FEW BIG ONES. AIRBNB, VRBO.
MANY OF US MAY HAVE USED IT WHEN WE WENT ON VACATION OUT OF TOWN OR IN TOWN, A STAYCATION.
YOU DON'T HAVE TO TELL ME. I DON'T NEED THAT INFORMATION TODAY.
THAT BEING SAID, BUT THEY SCOUR THAT AND THEY SUBMIT US INFORMATION.
BUT AVENUE IS OUR NEW ONE. WE DID THAT RFP. WE WORKED WITH FINANCE.
YOU ALL APPROVED THAT LAST YEAR. THAT WENT LIVE THIS SUMMER.
BUT THEY DO SEND US A LIST OF WHAT THEY FIND EVIDENCE OF VIOLATIONS OF NOT HAVING A PERMIT. THEY HELP US IDENTIFY HOW MUCH BACK TAXES ARE OWED, ET CETERA. JUST TO GIVE YOU SOME CONTEXT, THE DATA THIS WEEK SHOWED APPROXIMATELY 1200 UNPERMITTED SHORT-TERM RENTALS THAT HAVE BEEN IDENTIFIED THAT WE ARE INVESTIGATING TO BRING INTO COMPLIANCE. I KNOW YOU HEARD SOME NUMBERS, ABUT 50% COMPLIANCE. WE BELIEVE, BASED ON OUR THIRD-PARTY ABOUT 70% COMPLIANCE. THAT'S NOT GREAT. IT'S NOT TERRIBLE BUT WE WANT THAT HIGHER. SO THAT'S OUR JOB IS TO WORK WITH AVENUE, WORK WITH OUR PARTNERS AND OUR STAFF TO GET THAT AS HIGH AS POSSIBLE. AND THEN LASTLY, JUST REMEMBER THIS WAS DISCUSSED WHEN WE DID THE ORDINANCE BACK IN '18. IT'S ALWAYS SOMETHING WE'RE MONITORING. THIS PAST LEGISLATIVE SESSION THERE WAS A BILL THAT POTENTIALLY STARTED WITH BANNING ANY SHORT-TERM RENTAL ORDINANCES AT THE LOCAL LEVEL.
IT THEN STARTED DEVELOPING INTO MAYBE WE'LL DO A STATEWIDE STUDY.
THEN IT JUST DIED. THIS IS ONE OF THOSE ORDINANCES THAT WE ARE CONSTANTLY GOING TO MONITOR AT THE STATE LEVEL TO SEE IF THEY DO ANYTHING TO OUR ABILITY TO REGULATE SHORT-TERM RENTALS. WE BELIEVE OUR BALANCED ORDINANCE, ESPECIALLY THE DENSITY LIMITS AND THOSE TYPES OF THINGS, ARE WHAT KEEPS THIS OUT OF THE STATE'S EYES.
BUT THEN SECONDLY LET'S LOOK AT THE ONE ON THE RIGHT, WHICH IS THE 5TH CIRCUIT COURT.
THERE WAS A RULING LAST YEAR WHICH SUPPORTED OUR LOCAL ORDINANCE.
SO NEW ORLEANS HAD AN ORDINANCE AND THEY WERE TRYING TO REGULATE AND SAY SOMETHING TO THE EFFECT OF YOU CAN'T GET A SHORT-TERM RENTAL PERMIT IF YOU LIVE OUT OF TOWN.
SO THEY WERE REALLY TRYING TO BAN OUT OF TOWN SHORT-TERM RENTALS.
THAT WAS STRUCK DOWN AT THE 5TH CIRCUIT COURT. I'M NOT AN ATTORNEY SO I KNOW IF I LOOK AT MY ATTORNEYS IN THE ROOM, BUT ESSENTIALLY THAT PROHIBITED SOME INTERSTATE COMMERCE RULES. THAT'S A BIG DEAL. HOWEVER, IT DID SAY, DO YOU KNOW WHAT, NEW ORLEANS, YOU CAN USE DENSITY LIMITATIONS IN NEIGHBORHOODS IF YOU'RE CONCERNED ABOUT OVERCROWDING OF THESE AND TAKING OVER A NEIGHBORHOOD.
THAT'S EXACTLY WHAT IS THE HEART OF OUR ORDINANCE WHERE WE HAVE BALANCED THE RIGHT TO HAVE OUT OF -- YOU KNOW, TYPE 2 AND NOT TOO MANY. TO US, THAT'S A GOOD THING THAT THE 5TH CIRCUIT, WITHOUT TALKING ABOUT OUR ORDINANCE, THEY REALLY SOLIDIFIED AT LEAST ONE OF THE MAIN PIECES. AND THAT'S ALL I'LL SAY ABOUT THE ATTORNEY STUFF.
I'LL LEAVE THAT TO YOU ALL NEXT TIME. THAT'S REALLY THE END OF MY PRESENTATION. WE WERE ASKED TO GIVE YOU A BRIEFING, AN UPDATE OF WHERE WE'RE AT ON SHORT-TERM RENTALS. MY TEAM AND I ARE HERE TO ANSWER ANY QUESTIONS. MY FINANCE TEAM IS HERE. I WANT TO THANK THOSE THAT GOT UP. SHELLY, ALL OF THEM, THE SHORT-TERM RENTAL ASSOCIATION AND THE NEIGHBORHOOD GROUPS THAT ARE HELPING US ENFORCE THE ORDINANCE AND MAKE IT BETTER.
I WANT TO THANK THEM. THEY THANKED ME. I'M GOING TO THANK THEM.
THAT WOULD BE IT. >> GARCIA: THANK YOU, MIKE. THANK YOU FOR THE BRIEFING AND THANK YOU, SHELLY AND EVERYONE WHO IS HERE. I REALLY APPRECIATE YOUR CONTINUED ADVOCACY AND YOUR ENGAGEMENT. I HAD REQUESTED THIS AND SPECIFICALLY I REQUESTED IT A LITTLE BIT AGO BECAUSE MY FORMER COLLEAGUE HAD SUBMITTED THIS CCR. YOU ALL HEARD, I SIGNED ON TO THIS.
THERE'S NO RECOMMENDATION TODAY GOING FORTH. I DO THINK THAT WE NEED TO INVOLVE DISTRICTS 1 AND 2 BECAUSE THEY HAVE THE HIGHEST LEVEL OF SHORT-TERM RENTALS.
LAST WEEK, SIMILARLY IN ANOTHER COMMITTEE MEETING, I ABSTAINED FROM A VOTE BECAUSE I FELT THE SOUTHSIDE WAS MISSING REPRESENTATION AND SO I WOULD WANT D1 AND D2 SPECIFICALLY INVOLVED AS WELL IN THIS. WHEN I SIGNED ON TO MY COLLEAGUES' CCR AND I JUST PULLED IT UP TO MAKE SURE. HE WAS VERY SPECIFIC OF CREATING THIS SHORT-TERM RENTAL
[00:35:08]
TASK FORCE TO BE NO LESS THAN 60 DAYS OR TO MEET NO LESS THAN 60 DAYS AND NO MORE THAN 120 DAYS. SO THAT CCR, AS IT STANDS, COULDN'T JUST BE COPIED AND PASTED. BUT IN YOUR OPINION, WHAT IS YOUR OPINION ON THAT? I DON'T KNOW -- I DON'T REMEMBER WHY -- AND IT WAS PROBABLY JUST TO MOVE IT ALONG. BUT WHAT DID YOU SEE HAPPEN WITHIN THOSE DAYS?>> WELL, THAT CCR I KNOW WAS SUBMITTED. IT NEVER WENT TO GOVERNANCE SO THERE WAS NO FORMAL DIRECTION TO STAFF TO SAY GO FORWARD. WE WANT YOU TO DO SOMETHING.
CERTAINLY IF THAT'S SOMETHING THIS COMMITTEE WOULD LIKE US TO CONSIDER, MR. , THERE MAY BE A COUPLE OF OPTIONS. THERE WAS A AND MAYBE BRING BACK THE RESULTS OF THAT. WE DID SOMETHING SIMILAR TO THAT WITH OUR APARTMENT REGISTRATION ORDINANCE A LITTLE OVER A YEAR AND A HALF AGO.
I THINK YOU HAVE OPTIONS AND I DON'T KNOW IF THERE'S ANY OTHER -- IS THAT ABOUT RIGHT?
I THINK YOU HAVE SOME OPTIONS. >> GARCIA: I KIND OF LIKE THAT BETTER BECAUSE I'VE SIGNED ON -- I THINK Y'ALL HEARD, 51 CCRS AND MOST OF THEM HAVEN'T BEEN HEARD STILL.
I THINK THAT I WOULD LOVE TO GET SOME MORE FEEDBACK FROM MY COLLEAGUES HERE BUT I DO THINK THAT WE COULD MAYBE DIRECT YOU ALL SPECIFICALLY TO WORK WITH SHORT-TERM RENTERS AND NON-OWNERS AS WELL AS D1 AND D2, SPECIFICALLY. ACTUALLY, I DO HAVE A COUPLE OF QUESTIONS BEFORE I TURN IT OVER. DO YOU KNOW HOW MANY STRS,
BALLPARK FIGURE, ARE OUT THERE WITHOUT A PERMIT? >> YEAH, WE BELIEVE IT'S ANYWHERE FROM 12 TO 1500. I KNOW I'VE SEEN AND HEARD A LOT OF DIFFERENT NUMBERS AND I THINK SOME OF WHAT YOU HEARD WAS MAYBE DOUBLE OF WHAT WE HAVE.
WE HAVE 3200 LISTED. MAYBE THERE'S ANOTHER 3,000 OUT THERE.
BUT WE PAID THIS THIRD-PARTY CONSULTING COMPANY AND WE SEE THE REPORT THEY GIVE US AND THEY GIVE US A LOT OF DETAIL. THEY'RE LOOKING AT A LOT OF DIFFERENT PLATFORMS. I THINK IT'S 50 OR 60 PLATFORMS THAT ARE OUT THERE. JUST THIS WEEK THE LIST WAS 1200 TO 1500. WHEN I SAY 12 TO 15, THEY GIVE US PROBABLY 1200 THEY'RE PROBABLY SURE. THEY HAVE TO HAVE A LOT OF EVIDENCE THEY'RE IN VIOLATION.
AND THEN THERE'S A FEW HUNDRED THEY GIVE US THIS MAYBE LIST. WE ALSO LOOK AT THOSE AS WELL.
THAT'S WHY I THINK WE'RE AT ABOUT 70% COMPLIANCE RATE, PLUS OR MINUS.
BUT IT'S FLUID. I THINK EVERY WEEK WE LOOK AT IT THE NUMBERS CHANGE A LITTLE BIT. AGAIN, THAT'S OUR BEST GUESS RIGHT NOW.
>> GARCIA: I KNOW YOU USED TO BE WITH HOST AND NOW YOU'RE WITH THE NEW ENTITY.
SOME PARTNER WITH AIRBNB TO COLLECT THEIR TAXES. IS THERE A REASON WE DIDN'T GO
WITH AIRBNB? >> WELL, I PROBABLY WOULD ASK OUR FINANCE TEAM TO TALK A LITTLE BIT ABOUT THAT. I DO REMEMBER WHEN WE PRESENTED THE ORDINANCE, THAT QUESTION CAME UP. SOME COMMUNITIES DO IT, SOME DON'T.
I KNOW SOME OF THE CHALLENGES AT THE TIME WERE THINGS LIKE IF YOU DO THAT WITH -- LIKE AN AIRBNB OR ONE OF THE OTHER PLATFORMS, THEY WON'T GIVE US THE DETAILS OF -- YOU KNOW, THEY MIGHT GIVE US A LUMP SUM OF MONEY ON THE TAX PAYMENTS FOR THAT MONTH OR WHATEVER, THE QUARTER, BUT THEY WON'T GIVE US THE BACK DETAILS ON IT. AM I -- I'M GOING TO ASK MARGARET TO TOUCH ON THAT A LITTLE BIT. THAT WAS ONE OF THE REASONS.
>> HELLO. I'M MARGARET VILLEGAS, ASSISTANT FINANCE DIRECTOR.
WE HAVE HAD CONVERSATIONS WITH AIRBNB IN THE PAST ABOUT THEM COLLECTING FOR US.
THE BIGGEST ISSUE IS THE TRANSPARENCY THAT WE WOULD GIVE UP IF WE DID THAT BECAUSE THEY WOULD GIVE US LUMP-SUM PAYMENTS. THEY WOULD NOT GIVE US DETAILED INFORMATION OF WHO PAID OR HOW MUCH THEY PAID. SO FROM A COMPLIANCE
STANDPOINT, IT WOULD BE A CHALLENGE. >> GARCIA: GOT IT.
THANK YOU. THAT EXPLAINS IT NICELY. THANK YOU, MARGARET.
SORRY. WERE YOU GOING TO CONTINUE, MIKE?
>> NO, THAT WAS IT. >> GARCIA: I WANT TO SAY THANK YOU.
I WASN'T AWARE OF ALL THE PROBLEMS UNTIL YOU ALL MENTIONED THAT.
FIRST OF ALL, I CAN'T BELIEVE PEOPLE WOULD DO SOMETHING LIKE THAT IN FRONT OF CHIEF MCMANUS HOUSE. THAT'S INTERESTING. BUT I'LL START OFF WITH MY
COLLEAGUES. COUNCILMAN COURAGE. >> COURAGE: THANK YOU, CHAIR. I'VE NEVER BEEN A SUPPORTER OF SHORT-TERM RENTALS WHEN WE TALK ABOUT THE TYPE 2. I'VE ALWAYS FELT WHAT YOU'RE DOING IS INTRODUCING A BUSINESS INTEREST INTO A RESIDENTIAL NEIGHBORHOOD AND I THINK WE'VE ALWAYS BEEN OPPOSED TO THOSE
[00:40:03]
KINDS OF ACTIVITIES. I'VE ALWAYS SUPPORTED SHORT-TERM RENTALS TYPE 1 WHERE SOMEBODY HAS AN EXTRA ROOM IN THEIR HOUSE AND THEY WANT TO RENT IT OUT AND HELP SUPPORT THEIR FAMILY OR RETIREMENT. I THINK THAT'S GREAT. IT'S INTERESTING THOUGH WHEN YOU SHOW THE NUMBERS OF THE TYPES OF STRS WE HAVE, ALMOST 80% OF THEM ARE BUSINESSES MAKING MONEY IN RESIDENTIAL COMMUNITIES. AND ABSENTEE OWNERS WHO HAVE NO RESPECT FOR THE COMMUNITY OR THE NEIGHBORS WHO LIVE IN THAT COMMUNITY.AND I THINK THAT'S INTOLERABLE FOR ANY CITY THAT IS DEDICATED TOWARD THE PUBLIC SAFETY OF ITS RESIDENTS. AND I THINK THAT WE NEED TO DO MORE ABOUT THAT.
YOU KNOW, WE TALKED ABOUT OR YOU SHOWED US WHERE WE BROUGHT IN OVER $5 MILLION IN HOT TAX FEES FROM ALL OF THESE STRS. WE DON'T TRY TO DO A HOT TAX ON AN STR, SO TO SPEAK, TO MAKE MONEY. WE CHARGE THEM A FEE FOR THEM TO REGISTER AND THEY PAY THE STR, LIKE ANYONE ELSE WHO RENTS A PROPERTY OUT. BUT SEEING THE KIND OF MONEY WE'VE MADE AND THE IDEA THAT MAYBE 50% OF OTHER HOMES ARE BEING USED AREN'T PAYING ANYTHING AT ALL, IT SEEMS TO ME THAT THE CITY CAN AFFORD TO HAVE MORE PEOPLE AVAILABLE TO HOLD THE PROPERTY OWNERS ACCOUNTABLE. WE CAN SPEND MORE MONEY TO GO AHEAD AND MAKE SURE YOU HAVE MORE STAFF TO VERIFY ALL OF THIS.
BECAUSE WE'RE MAKING PLENTY OF MONEY OFF THE ONES WE DO GET AND THE ONES WE DON'T GET WE SHOULD BE COLLECTING THAT HOT TAX AND THEIR FEE. HOW MUCH DID YOU SAY THAT FEE WAS? FIFTY DOLLARS A YEAR, $100 FOR THREE YEARS?
>> $100 FOR THREE YEARS. ABOUT $33. >> COURAGE: THAT'S NOT ENOUGH TO HOLD THEM ACCOUNTABLE. IT COSTS $100 TO GO OUT AND CHECK ON ANY ONE OF THOSE.
I THINK WE'RE SHORT-CHANGING OURSELVES AS A CITY ON THIS. CHAIR, I THINK THIS COMMITTEE SHOULD HAVE THE AUTHORITY TO ASK HIS DEPARTMENT TO PUT TOGETHER A STAKEHOLDERS' GROUP, AS WAS SUGGESTED IN THE CCR. HAD THE CCR GONE THROUGH THE GOVERNANCE COMMITTEE IT WOULD HAVE BEEN REFERRED TO OUR COMMITTEE FOR ACTION. SO BECAUSE IT DIDN'T GET THROUGH GOVERNANCE IT DOESN'T MEAN WE STILL CAN'T TAKE THE ACTION OR ASK YOUR DEPARTMENT TO INITIATE THE ACTION AND PUT TOGETHER A STAKEHOLDERS' GROUP.
I THINK IN LINE WITH WHAT THE CCR WAS RECOMMENDING. AND SO I DON'T KNOW IF THE ATTORNEY CAN TELL US THAT COULD BE A RECOMMENDATION WE COULD COME UP WITH TODAY?
>> WE CAN CERTAINLY MAKE A RECOMMENDATION TO REFER YOUR ISSUE TO GOVERNANCE.
YOU COULD GIVE DIRECTION TO STAFF TO, TO, YOU KNOW, LIKE MIKE WAS SAYING, TO STUDY THE ISSUE A LITTLE BIT MORE, LOOK INTO IT. CONVENE AN INTEREST GROUP TO
DISCUSS IT. YOU COULD DO THAT. >> COURAGE: YEAH.
AND I DON'T WANT TO GO BACK TO GOVERNANCE AGAIN. I DON'T THINK WE NEED TO.
I THINK WE'VE GOT THE AUTHORITY IN THIS COMMITTEE. I HOPE THAT'S SOMETHING THAT WE DO. AND I WAS SURPRISED TO HEAR FROM THE FINANCE DEPARTMENT THAT APPARENTLY VRBO OR THE OTHERS DON'T GIVE DETAILS TO ALL THOSE OTHER CITIES? I MEAN, I CAN'T BELIEVE THOSE CITIES SAY JUST SEND US THE MONEY AND WE DON'T CARE WHERE IT COMES FROM. I FIND THAT SKEPTICAL TO SAY THAT WE COULDN'T HAVE THAT ORGANIZATION BE VERY ACCOUNTABLE FOR NOT JUST SENDING US THE MONEY BUT LETTING US KNOW WHO THEY'RE GETTING IT FROM AND WHO THEIR MEMBERS ARE IN OUR COMMUNITY SO THAT WE CAN ENSURE THAT THEY'RE COVERING AND BEING RESPONSIBLE TO US.
JUST SENDING US A BLANK CHECK DOESN'T MAKE SENSE. I CAN'T UNDERSTAND HOW ANY CITY WOULD DO THAT. THAT'S JUST A COMMENT. I'M NOT ASKING YOU, MIKE, TO
JUSTIFY IT OR NOT. >> I'LL JUST ADD THIS. SO WE HAD A CONVERSATION JUST THIS WEEK WITH THE CITY OF GALVESTON CFO. WE ASKED A SIMILAR QUESTION.
IN THEIR CASE IT WAS VERY ACCURATE. THEY'RE ONE OF THE CITIES THAT DOES IT. IT'S PART OF THEIR ORDINANCE. THEY'RE DOING SOME OTHER THINGS TO TRY TO GET THE OPERATORS -- IT'S A CHALLENGE. BUT THEY DID CONFIRM THAT EVEN WHEN THEY DID IT WITH -- I THINK IT WAS AIRBNB AND VRBO AT LEAST, THE BIG ONES, THAT WAS A ROAD BLOCK FOR THEM. NOW, THEY FOUND A WAY TO GET OVER THAT.
I'M NOT REALLY SURE EXACTLY WHAT THEY DID BUT THE CFO DID ACKNOWLEDGE THAT TO ME AND MY TEAM. YOU'RE RIGHT. IT'S A HEAD SCRATCHER BUT IT'S A REAL ISSUE. AND IT'S BEEN A REAL ISSUE FOR FIVE YEARS.
[00:45:04]
NOT TO ANSWER A NON-QUESTION. >> COURAGE: THANK YOU. I MAY WANT TO CHIME BACK IN.
>> GARCIA: SURE. COUNCILWOMAN CASTILLO. >> CASTILLO: THANK YOU.
THANK YOU, MIKE FOR THE PRESENTATION AS WELL AS TO THE FOLKS WHO GAVE PUBLIC COMMENT.
I HEARD A COUPLE OF THINGS FROM FOLKS WHO SPOKE ON THIS ITEM RANGING FROM THE NEED FOR MORE ENFORCEMENT ON TYPE 2 SHORT-TERM RENTALS AS WELL AS A LOT OF ADDITIONAL ENFORCEMENT.
AND THEN I HEARD IS THE FEE ADEQUATE. AND WHEN I LOOK AT THE AMOUNT OF SHORT-TERM RENTALS AND THE FEE ATTACHED TOWARDS THE PERMIT, WHICH IS $300 FOR THREE
YEARS? >> $10,000 $100 FOR THREE YEARS.
>> CASTILLO: AND THE NEED FOR ENFORCEMENT IS LABOR. THAT'S TO SUPPORT THE DEVELOPMENT SERVICES DEPARTMENT. WHEN WE LOOK AT THE OVERALL HOUSING ECONOMY HERE IN SAN ANTONIO, I WANT TO ENSURE THAT CITY COUNCIL IS DOING OUR PART TO ENSURE THAT WE'RE SUPPORTING POLICY THAT'S IN ALIGNMENT WITH THE STRATEGIC HOUSING IMPLEMENTATION PLAN. AND WHEN I LOOK AT THE SHORT-TERM RENTAL NUMBERS AND I LOOK AT STUDIES, FOR EXAMPLE, FROM THE ECONOMIC POLICY INSTITUTE, THEY CITE THAT HIGH-QUALITY STUDIES, THE INTERSECTION OF SHORT-TERM RENTALS SIMILAR TO TYPE 2 IN NEW YORK CITY, FOR EXAMPLE, HAVE RAISED AVERAGE RENTS NEARLY $400 ANNUALLY FOR CITY RESIDENTS. TO MAKE UP FOR THAT AFFORDABLE HOUSING STOCK, BECAUSE THESE SHORT-TERM RENTALS ARE REMOVING FROM LONG-TERM RENTERS, IT IS COSTING US IN THE MILLIONS TO MAKE UP FOR THAT HOUSING. WHEN I HEAR $100 FOR THREE YEARS, I THINK THAT'S REALLY INSULTING TO SAN ANTONIO TAXPAYERS IN THAT IT'S COSTING US SO MUCH, WHETHER IT'S PERMANENT SUPPORTIVE HOUSING, PUBLIC HOUSING, IT'S COSTING US MILLIONS AND THESE FOLKS ARE PROFITING OFF OF JUST PAYING $100 FOR THREE YEARS. AND HEARING THE CONVERSATION IN PUBLIC COMMENT FOR FOLKS, I WAS LOOKING AT THE AIRBNB WEBSITE TO SEE WHAT I CAN RENT HERE IN SAN ANTONIO. AND I LOOKED IN THE MONTE VISTA AREA AND THERE'S ONE UNIT GOING FOR $265 A NIGHT. THAT DOESN'T INCLUDE THE CLEANING CHARGES AND THE AIRBNB FEE OR THE TAX. ON THE LOWER END, THERE'S ONE FOR $88 BUT WHEN YOU ADD IN THE CLEANING CHARGE OF $55, THE AIRBNB FEE FOR $20 AND TAX, IT'S $172.
ALL THAT TO SAY THAT THEY CAN AFFORD TO PAY MORE, IF THIS IS THEIR INVESTMENT.
AND I THINK WE SHOULD EXPLORE INCREASING THAT FEE IF IT'S GOING TO COST US MILLIONS OF DOLLARS TO MAKE UP FOR THE IMPACT THAT THEY'RE CAUSING ON SAN ANTONIO'S HOUSING SYSTEM.
I DID HAVE A QUESTION. WITH THE TYPE 2 RENTALS, DO YOU TRACK OR HAVE THE PERCENTAGE OF THE TYPE 2. HOW MANY ARE LISTED AS LLCS? I UNDERSTAND YOU COLLECT INFORMATION AND HAVE CONTACT BUT DO WE KNOW WHAT PERCENTAGE ARE LLCS?
>> WE DO HAVE THAT. I'M GOING TO LOOK AT MY STAFF. MAYBE WE CAN GET THAT LATER.
WE DO HAVE THAT. >> CASTILLO: THAT NUMBER WOULD BE HELPFUL.
JUST BASED OFF OF YOUR EXPERTISE WITH THE TYPE 2, ARE THERE DUPLICATE LANDLORDS THAT ARE RENTING? IS THERE A TYPE 2 PROPERTY OWNER WHO OWNS MULTIPLE TYPE 2
PROPERTIES HERE IN SAN ANTONIO? >> THERE ARE SEVERAL PROPERTY OWNERS THAT OWN MULTIPLE PROPERTIES AROUND THE CITY. AND THAT'S WHAT THEY DO.
AND THERE WERE SEVERAL OF THOSE OWNERS AT THE TABLE WHEN WE DEVELOPED THE ORDINANCE AND THEY WOULD SPEAK ABOUT HOW THEY OWNED A HANDFUL OR MORE OF IT. THAT'S DEFINITELY OUT THERE.
>> CASTILLO: YEAH. AGAIN, ON THE MAP I WAS SHIFTING TOWARDS FOLLOWING THE DATA THAT YOU ALL PRESENTED. I LOOKED OVER IN DISTRICT 2 WHERE THERE'S AN ELEMENTARY SCHOOL SET TO CLOSE. AND IT'S RANGING OVER $250 TO RENT.
AND WHAT MANY OF THE INDEPENDENT SCHOOL DISTRICTS ARE ARGUING IS A NUMBER OF REASONS, CHARTER SCHOOLS, LOW BIRTHRATE, AS WELL AS LACK OF AFFORDABLE HOUSING.
AND THESE ARE HUGE HOMES THAT ARE BEING RENTED AND BEING USED AS PARTY VENUES.
THESE ARE LESS FAMILIES IN OUR NEIGHBORHOODS. BUT, AT THE SAME TIME, I WANT TO BE CLEAR THAT WE ALSO WANT TO ENSURE THAT WE'RE WELCOMING RENTERS IN OUR NEIGHBORHOOD.
IF WE'RE GOING TO CRITIQUE SHORT-TERM RENTALS, WE SHOULDN'T PUSH BACK WHEN THERE'S A RENTAL UNIT GOING UP. SO I JUST WANT TO EMPHASIZE THAT PIECE TOO. BUT I DO THINK I WOULD BE SUPPORTIVE OF THIS COMMITTEE HAVING A LARGER CONVERSATION AND CONVENING THE STAKEHOLDER GROUP TO HAVE A LARGER DISCUSSION. I KNOW IT WILL LIKELY COME BACK WITH A RECOMMENDATION BUT I JUST WANT TO ENSURE THAT I PLUG AND ASK THAT THERE'S ORGANIZATIONS AND THINK TANKS
[00:50:05]
LIKE TEXAS HOUSERS THAT ARE PART OF THE STAKEHOLDER COMMITTEE AND/OR TEXAS ORGANIZING PROJECT'S HOUSING COMMITTEE HAS REPRESENTATION THERE AS WELL SO TENANTS ARE REPRESENTED ON THIS COMMITTEE. THOSE ARE ALL MY COMMENTS. THANK YOU, CHAIR.>> GARCIA: THANK YOU, COUNCILWOMAN. COUNCILWOMAN VIAGRAN.
>> VIAGRAN: THANK YOU. THANK YOU, MIKE FOR THE PRESENTATION AND THE BRIEFING.
I AM CONCERNED ABOUT -- I WANT TO START WITH THE TRENDS. ONE, I UNDERSTOOD THAT AFTER THE PANDEMIC SOME PEOPLE MOVED FROM RENTING TO STRS, SHORT-TERM RENTALS BECAUSE THEY FELT LIKE THEY -- THIS WAS BETTER FOR THEM. AND IT WAS JUST EASIER NOT TO HAVE TO WORRY ABOUT THAT. I KNOW THAT IN DISTRICT 3, PERSONALLY I HAVE FAMILIES THAT BUY MULTIPLE PROPERTIES BECAUSE THEY WANT TO KEEP THE INTEGRITY OF THE NEIGHBORHOOD.
AND THEY'VE EXPLORED SHORT-TERM RENTALS OR RENTING, HAVING RENTAL PROPERTY.
AND SO I DO WANT TO TAKE THEM INTO CONSIDERATION. BECAUSE THESE AREN'T LLCS, THESE ARE PEOPLE WHO BOUGHT INVESTMENT PROPERTIES AND THEN WHAT THEY SEE IS THEY HAVE DABBLED INTO THE SHORT-TERM RENTALS AND IT HAS WORKED IN SOME AREAS AND IT HASN'T.
I WANT TO TAKE THAT INTO CONSIDERATION BUT I AM CONCERNED WITH THE PARTY VENUES. I DON'T KNOW IF WE CAN GO BACK AND LOOK AT A ONE STRIKE YOU'RE OUT FOR THAT ASPECT. WE DO HAVE SO MANY FACILITIES IN SAN ANTONIO THAT CAN BE USED AS A LARGE GATHERING VENUE OR A RECEPTION FOR A WEDDING. I DON'T LIKE THE IDEA OF THEM USING A SHORT-TERM RENTAL BECAUSE SPECIFICALLY FOR THE SECURITY PURPOSE.
MOST PARTY VENUES ARE REQUIRED TO HAVE A SECURITY GUARD ON SITE.
THESE SHORT-TERM RENTALS ARE NOT. I DO WANT TO EXPLORE -- I WOULD LIKE MORE INFORMATION ON HOW MANY HAD THESE TYPE OF VIOLATIONS AND THE KIND OF WHAT IT COSTS US IN TERMS OF SAPD HAVING TO GO OUT THERE AND CONTROL THAT SITUATION AND LOOKING AT MAYBE MOVING TO THIS IS -- BECAUSE THIS IS ILLEGAL. AND THE OTHER THING IS -- AND I HAVE A COUPLE OF LEGAL QUESTIONS THAT I'LL ASK IN A BIT.
BUT THESE ARE THE TRENDS THAT I'M LOOKING AT THAT I'M KIND OF CONCERNED WITH.
THE OTHER THING IS I DON'T WANT TO -- I WANT TO LOOK AT THE NON-COMPLIANT LIST BECAUSE I'M CONCERNED THAT SOME OF THESE PEOPLE ARE DOING BOTH, THAT THEY ARE HAVING SHORT-TERM RENTALS IN SOME NEIGHBORHOODS WHERE IT'S PROFITABLE. KIND OF DISTRICT 1 AND DISTRICT 2. BUT THEY'RE IN DISTRICT 3 JUST TRYING TO RENT APARTMENTS.
AND IF THEY'RE COMING FOR A ZONING CHANGE IN DISTRICT 3 AND I FIND OUT THAT THEY'RE NOT A COMPLIANT SHORT-TERM RENTAL OR THEY'RE USING THEIR -- THEY'RE NOT GOOD NEIGHBORS TO THE NEIGHBORHOOD IN DISTRICT 1 OR DISTRICT 2, THEN THIS IS SOMETHING I THINK WE NEED TO KNOW IN TERMS OF SMALLER PROPERTY OWNERS THAT HAVE THAT -- OR LLCS.
AND THEN ON THE 12.5%, IS IT POSSIBLE THAT THIS COULD BE ADJUSTED IN AREAS THAT WE HAVE MAYBE A CULTURAL ZONE OR WHERE WE'RE WORKING ON WALKABILITY OR WHERE WE SEE FUTURE GROWTH IN STREETS. IS IT POSSIBLE TO HAVE A COUNCIL DISTRICT COME IN AND SAY WE UNDERSTAND 12.5 IS THE CITYWIDE STANDARD BUT FOR THIS AREA, IN PARTICULAR, IT SHOULD
BE REDUCED TO 10%. >> SURE. SO A COUPLE OF ITEMS THERE.
I'LL START WITH THAT LAST QUESTION. WE CAN LOOK AT THAT, COUNCILWOMAN. I DO KNOW BACK WHEN WE WERE DOING THE ORDINANCE THERE WERE SOME QUESTIONS ABOUT CAN WE CREATE DIFFERENT RULES FOR DIFFERENT AREAS OF THE CITY.
MOST OF THE TIME THE ANSWER WAS NO. IT HAD TO BE A GENERAL RULE.
HOWEVER, WE CAN LOOK AT, IF WE ALREADY HAVE AN IDENTIFIED AREA, WHETHER IT'S WORLD HERITAGE OR ANYTHING THAT YOU'RE THINKING OF, WE CAN LOOK AT THAT AGAIN.
IT WAS MORE OF A LEGAL ISSUE AT THE TIME. AND I THINK IT'S A GOOD QUESTION. I DON'T HAVE THE ANSWER AND I THINK WE PROBABLY NEED TO DO
SOME RESEARCH ON THAT. >> VIAGRAN: I'M THINKING SPECIFICALLY MY TIRZ AREAS, ALSO. AND I KNOW THE WESTSIDE HAS SOME HISTORICAL AREAS.
WE HAVE A LOT OF PEOPLE FROM KING WILLIAM AND MONTE VISTA GET UP AND SHARE.
AND THE OTHER THING IS REALLY INCREASING THE PAY FOR THE AREAS OF TOWN THAT THEY'RE
[00:55:04]
GOING TO ESTABLISH THESE SHORT-TERM RENTALS IN. AND I DON'T KNOW IF WE CAN LEGALLY DO THAT. BECAUSE IF YOU'RE DOING A SHORT-TERM RENTAL IN THE WORLD HERITAGE AREA VERSUS JUST SOMEWHERE ON THE -- SOMEWHERE IN THE CITY NEAR THE DOME, IT'S GOING TO BE MORE -- IT'S GOING TO BE WORTH MORE. AND I HAVE A FEW MORE AND I'LLCHIME BACK IN. THANK YOU. >> SO I DID WANT TO TOUCH BASE ON ANOTHER ITEM THAT YOU TALKED ABOUT. SO PARTY VENUES.
IF YOU HAVE A PARTY, IF IT'S FIVE OF MY BUDDIES AND WE GET A LITTLE ROWDY, THAT'S NOT A PARTY. THAT'S A VIOLATION OF THE NOISE ORDINANCE AND THE THREE-STRIKE RULE THAT WE DISCUSSED. BUT AN EVENT, THAT IS A ONE AND DONE.
THAT IS A ONE STRIKE ALREADY. IT'S PROHIBITED IN THE ORDINANCE.
THAT WAS A DELIBERATE PIECE IN THE ORDINANCE FOR A LOT OF REASONS YOU DESCRIBED.
IT'S A ZONING VIOLATION AND OTHER ISSUES THERE. THOSE ARE EXCLUDED.
WE HAVE, IN A COUPLE OF THE EXAMPLES THAT WERE DISCUSSED, ONCE WE FOUND OUT ABOUT IT WE REVOKED IT. CERTAINLY WORTHY OF MORE DISCUSSION AS WE LEAVE HERE AND
GET THAT GROUP TOGETHER. >> GARCIA: THANK YOU, MIKE. AS WE'RE HAVING THE CONVERSATION, SO WE CHECKED WITH THE CITY ATTORNEY'S OFFICE AND THIS IS AGENDIZED AS A BRIEFING. SO WE CAN'T MAKE A MOTION. HOWEVER, YOU HEAR CLEAR, YEAH.
I'LL SUMMARIZE SO FAR FOR YOU AND WE'LL HAVE A SECOND GO AROUND.
SO WE WANT TO MAKE SURE THAT WE HAVE AN STR STAKEHOLDER GROUP THAT'S PUT TOGETHER.
AND SO THAT'S TO THE SPIRIT OF THE ORIGINAL CCR. THEY CAN LOOK AT FEES SUCH AS INCREASING FEES FROM $100 FOR THREE YEARS I THINK IS RIDICULOUS TOO.
SO LOOKING AT A HIGHER INCREASE. I WANT TO SEE IF WE MIGHT BE ABLE TO USE A PORTION OF THOSE FEES TO GO TO AN AFFORDABLE HOUSING FUND.
I JUST WANT TO PUT THAT OUT THERE AS WE'RE CONSIDERING WHAT WE WANT MIKE SHANNON AND THE STAKEHOLDER GROUP TO LOOK AT. THAT WE HAVE TO HAVE DIFFERENT FOLKS AT THE TABLE TO MAKE SURE THEY HAVE SOME INPUT. AGAIN, MY EMPHASIS IS ON MAKING SURE WE HAVE HEAVY REPRESENTATION FROM D1 AND D2 RESIDENTS, SPECIFICALLY. THEY ARE THE MOST AFFECTED IN THE CITY. IT SOUNDS LIKE YOU HAVE KIND OF TAKEN CARE OF THE PARTY CLAUSE, I'LL CALL IT, WITH THE ONE AND DONE. BUT ANYTHING WE CAN DO TO REVISIT HOW SOME PEOPLE ARE GETTING AWAY WITH IT WOULD BE IMPORTANT TO ME.
THE OTHER THING I HEARD FROM COUNCILWOMAN VIAGRAN WAS THE TIRZ, HISTORIC, WORLD HERITAGE AREAS, ANYTHING LIKE THAT. COUNCILMAN COURAGE ALSO CAME OVER AND MENTIONED THAT HE WANTED TO INCLUDE THE MEET 60 DAYS OR 60 TO 120 DAYS. I WOULD LIKE TO HAVE THAT CONVERSATION ON THAT BECAUSE THAT PUTS YOU AGAIN THROUGH THANKSGIVING AND CHRISTMAS AND WE DID THAT TO YOU LAST YEAR ALREADY. I WOULD WANT TO SEE IF WE COULD EXTEND A LITTLE BIT MORE, COUNCILMAN COURAGE, I THINK MIKE SHANNON MIGHT APPRECIATE IT A LITTLE BIT. I'LL TAKE THE CONVERSATION NOW UP A LITTLE BIT MORE.
COUNCILMAN COURAGE. >> COURAGE: THANK YOU, MADAME CHAIR.
I UNDERSTAND AFTER OUR DISCUSSION THAT WE'RE NOT IN A POSITION TO TAKE ACTION ON THIS SO I GUESS WHAT I WOULD LIKE IS, IN CONCURRENCE WITH WHAT THE CHAIR IS SAYING, YOU COME BACK TO US AT THE NEXT MEETING THAT WE HAVE WITH AN OUTLINE OF A PLAN TO ENACT THOSE PARTICULAR PARAGRAPHS THAT WERE A PART OF THE CCR THAT CAME FORWARD.
THE ONE ABOUT THE SETTING UP THE TASK FORCE AND HAVE IT LOOK AT EVERYTHING THAT'S CURRENTLY IN THE ORDINANCE AND OVER OUR EXPERIENCE HOW WE CAN IMPROVE ON THAT AND MAKE ANY NECESSARY CHANGES. AND MAKING OR ESTABLISHING A TASK FORCE THAT HAS AT LEAST HALF THE MEMBERS WHO ARE NOT PART OF THE STR COMMUNITY, NOT STR OWNERS AND THINGS OF THAT NATURE, BUT HAVE AN INTEREST REPRESENTING THE COMMUNITY. AS FAR AS THE 60 DAYS OR 120 DAYS, I THINK WHEN YOU COME BACK WITH A PLAN AND WE ADOPT THAT PLAN, THEN WE CAN LOOK AT THE TIME-FRAME MAYBE THAT YOU WOULD NEED TO GET THIS ALL DONE.
BUT I REALLY ENDORSE THIS. I JUST WANT TO SAY A FINAL COMMENT.
I WAS PRETTY CRITICAL OF TYPE 2 STRS BUT I RECOGNIZE THEY'RE THERE.
WE CAN'T UNDO SOMETHING THAT EXISTS BUT WE CAN MAKE SURE THAT THEY'RE RESPONSIVE AND WHATEVER MODIFICATIONS WE NEED TO HOLD PROPERTY OWNERS, BUSINESS OWNERS ACCOUNTABLE IS SOMETHING WE NEED TO LOOK VERY CLOSELY AT AS THIS STAKEHOLDERS' GROUP COMES
TOGETHER. THANK YOU. >> GARCIA: THANK YOU, COUNCILMAN COURAGE. COUNCILWOMAN VIAGRAN AND THEN COUNCILWOMAN CASTILLO.
[01:00:03]
>> VIAGRAN: THANK YOU. SO THE OTHER THING -- AND THESE ARE FOR LEGAL.
AND I KNOW WE CAN'T DIRECT MIKE BUT CAN I, AS THE COUNCILWOMAN, MEET WITH HIS TEAM TO TALK SPECIFICALLY ABOUT A DISTRICT 3 COMMITTEE THAT IS GOING TO LOOK AT DISTRICT 3-SPECIFIC ISSUES
AND WHAT WITHIN THE ORDINANCE WE CAN DO IN THE DISTRICT? >> COUNCILWOMAN, YES.
YOU ABSOLUTELY CAN MEET WITH MIKE'S TEAM. WITH RESPECT TO SETTING UP A DISTRICT-SPECIFIC GROUP, THAT'S SOMETHING THAT THE CITY MANAGER WOULD NEED TO BE ON BOARD WITH
AND GIVE STAFF SPECIFIC DIRECTION TO DO THAT. >> VIAGRAN: BECAUSE I WOULD LIKE TO -- AND, MIKE, YOU'RE VERY FAMILIAR WITH MY DISTRICT AND YOU KNOW.
I DO WANT TO INVITE OTHER STAKEHOLDERS TO COME. BUT I THINK WHEN WE TALK ABOUT DISTRICT 3, WHICH IS THE LARGEST DISTRICT IN THE CITY, GEOGRAPHICALLY, I THINK FOR US, OUR ISSUE -- I LIKE THE TASK FORCE IDEA -- BUT OUR ISSUE IS I KNOW THERE'S PEOPLE THAT ARE OPERATING THAT ARE NOT REGISTERED. SO I WANT TO BE THAT SOLUTION FOR THE TEAM. INSTEAD OF SAYING, HEY, DO THIS TASK FORCE.
I WOULD LIKE TO SET UP A MEETING FOR THAT. MY OTHER LEGAL QUESTION IS: IS THERE ANY WAY WE CAN DO AN ORDINANCE FOR SHORT-TERM RENTALS THAT IF THEY GET MORE THAN FIVE PEOPLE -- NOT THE BIG VENUE PARTY, BUT LET'S SAY YOU KNOW THAT ON THE AD IT SAYS IT'S UP TO FOUR PEOPLE. BUT ALL OF A SUDDEN THEY HAVE 12 PEOPLE THERE.
WHERE THERE'S LIKE A TRESPASSING, LIKE THOSE OTHER SIX PEOPLE ARE TRESPASSING ON THE PROPERTY. CAN WE DO THAT, LEGALLY, AS PART OF THE SHORT-TERM RENTAL?
>> OBVIOUSLY SOMETHING WE CAN LOOK AT. BUT WE WOULD NEED TO EXPLORE WHETHER THE CURRENT SHORT-TERM RENTAL ORDINANCE ADDRESSES THAT OR PROVIDES ENOUGH ROOM TO
UTILIZE THE ENFORCEMENT PROCESS FOR THAT SCENARIO. >> VIAGRAN: OKAY.
I THINK SOME OF THESE TYPE 2S DON'T WANT OVER FOUR PEOPLE THERE.
THEY DON'T WANT PEOPLE BRINGING 6 OR 12 PEOPLE INTO THE HOME OR THE LOCATION.
BUT IF WE COULD HAVE THAT, THEY COULD AUTHORIZE THE POLICE TO DO A TRESPASSING WARNING.
BECAUSE THE ONE THING I WOULD LIKE TO DO IN TERMS OF DISTRICT-SPECIFIC ALSO -- AND WE COULD DO THIS CITYWIDE. IS MAYBE DO AN ADVOCACY WEEK OR OUTREACH WHERE WE HELP PEOPLE LIKE GET PERMITTED CORRECTLY. ESPECIALLY BEFORE WE HAVE OUR BIG EVENTS.
AND I KNOW FINAL FOUR IS COMING BACK TO SAN ANTONIO. WE DO HAVE SOME REALLY BIG CONVENTIONS ON THE BOOKS. IF WE COULD MAKE SURE THAT PEOPLE GET PERMITTED AND THAT IF THERE ARE NEIGHBORS THAT KNOW THAT THERE IS SOMETHING OPERATING AS A SHORT-TERM RENTAL THAT IS NOT REGISTERED AS A SHORT-TERM RENTAL, WE CAN INFORM THEM OF HOW TO DO THAT PROCESS. BUT CONCENTRATED IN A WEEK INSTEAD OF JUST SAYING, OH, JUST GO HERE. JUST DOING A PUBLICITY PUSH. THAT'S WHAT I'D LIKE TO SEE.
THANK YOU. >> GARCIA: THANK YOU, COUNCILWOMAN VIAGRAN.
COUNCILWOMAN CASTILLO. >> CASTILLO: THANK YOU, CHAIR.
I WANTED TO CHIME BACK IN AND EXPRESS SUPPORT FOR SOMETHING MY COLLEAGUE REQUESTED, WHICH IS TRACKING HOW MANY -- ESSENTIALLY THE BAD ACTORS' PROGRAM BUT WITH SHORT-TERM RENTALS TYPE 2, IN THAT IF THEY HAVE X AMOUNT OF STRIKES, THEY'RE NOT ISSUED AN ADDITIONAL PERMIT FOR AN ADDITIONAL UNIT. I THINK THAT'S SOMETHING WORTH EXPLORING. I DON'T KNOW WHAT THAT LOOKS LIKE.
ON THE SAME NOTE, IF YOU HAVE A LIST, LIKE WHAT THE FEES AND FINES ARE, IF A SHORT-TERM RENTAL IS OUT OF COMPLIANCE, IF YOU COULD SEND THAT TO ME, I WOULD GREETLY APPRECIATE THAT.
I KNOW IN NEW YORK THEY HAVE CRACKED DOWN ON ENFORCEMENT AND SEEN A REDUCTION IN TYPE 2S THAT HAVE GONE BACK ON THE MARKET AS LONG-TERM RENTALS. I THINK THERE IS OPPORTUNITY FOR US TO GET AHEAD OF WHAT'S TO COME BECAUSE I KNOW THIS IS WHAT'S BEEN PERMITTED AND I KNOW THERE'S SO MANY MORE OUT THERE. BUT I THINK IT WOULD BE HELPFUL TO SEE THOSE NUMBERS SO THAT WAY WE HAVE AN IDEA AS WE CONTINUE THE DISCUSSION -- THE
NUMBERS REGARDING THE FEES. >> WE CAN GET THAT TO YOU, COUNCILWOMAN.
WE CAN GET THAT TO THE WHOLE COMMITTEE. I DID GET THE INFORMATION FROM MY TEAM ON ANOTHER QUESTION YOU ASKED ABOUT. WE HAVE 470 LLCS.
OUT OF THE 3200-PLUS, 470 ARE LLCS AND WE HAVE 307 THAT HAVE MULTIPLE OWNERS, MULTIPLE UNITS, MORE THAN ONE. WE CAN SHARE ALL THAT DATA AS WELL.
>> CASTILLO: THANK YOU. THOSE NUMBERS ARE HELPFUL. I'M ALSO CURIOUS -- I KNOW THE CITY OF SAN ANTONIO HAS MANY PARTNERSHIPS WITH THE UNIVERSITIES TO RESEARCH AND
[01:05:02]
CONDUCT STUDIES. I WOULD BE INTERESTED TO SEE HOW THE REDISTRIBUTION OF SHORT-TERM RENTALS TYPE 2 IMPACTS THE OVERALL SAN ANTONIO HOUSING ECONOMY OR ECOSYSTEM RATHER THAN ECONOMY. AND HOW THAT HAS IMPACTED US AND WHAT'S TO COME, RIGHT? AND HOW WE NEED TO PREPARE FOR WHAT I HOPE NOT ISN'T AN INCREASE OF TYPE 2 RENTALS.BUT TO HAVE AN UNDERSTANDING OF THAT. I DON'T KNOW IF THAT'S SOMETHING THAT WE CAN REQUEST AS A COMMITTEE OR WHAT THAT LOOKS LIKE.
>> I'LL INCORPORATE SOMETHING ABOUT THAT. I'LL HAVE TO DO A LITTLE RESEARCH ON IT BUT I'LL SEE WHAT WE THINK WE CAN DO AS PART OF THE PLAN.
>> CASTILLO: GREAT. THANKS, MIKE. THANK YOU, CHAIR.
>> GARCIA: THANK YOU, EVERYBODY. I THINK THIS IS A GOOD, FRUITFUL DISCUSSION. THANKS TO ALL THE RESIDENTS WHO CAME OUT.
AND SO, MIKE, YOU HAVE A LITTLE BIT MORE WORK TO DO. THANK YOU.
>> HOLIDAY PRESENT. THANK YOU. >> GARCIA: WE WILL MOVE ON TO ITEM 3, WHICH IS A BRIEFING AND POSSIBLE ACTION ON A $750,000 FORGIVABLE LOAN FROM THE INNER CITY INCENTIVE FUND TO THE MISSION TRAILS COMMUNITY ASSOCIATION FOR INFRASTRUCTURE
IMPROVEMENTS AT RIVERSIDE TIRZ MOBILE PARK. >> GOOD MORNING, COUNCIL MEMBERS. I THINK IT'S STILL MORNING. IAN BENAVIDES.
TODAY WE DO HAVE AN ITEM FOR YOUR CONSIDERATION. IT IS A FORGIVABLE LOAN FOR THE MISSION TRAILS COMMUNITY ASSOCIATION, SPECIFICALLY FOR THE RIVERSIDE TERRACE MOBILE HOME PARK. BEFORE I GET INTO THE ACTUAL ITEM, I WANT TO PROVIDE A QUICK UPDATE ON THE 2022 HOUSING BOND PROGRAM. IN MAY OF 2022 THE VOTERS APPROVED THE CITY'S FIRST $150 MILLION HOUSING BOND. IT WAS BROKEN UP INTO SEVERAL CATEGORIES INCLUDING HOME OWNERSHIP, REHAB AND PRESERVATION, RENTAL PRESERVATION, RENTAL PRODUCTION, PERMANENT SUPPORTIVE HOUSING AND HOME OWNERSHIP PRODUCTION. IN ADDITION WE SET ASIDE SOME OF THE FUNDING FROM THESE CATEGORIES FOR CREATIVE AND SPECIAL PROJECTS OUTLINED WITHIN OUR STRATEGIC HOUSING IMPLEMENTATION PLAN. THAT INCLUDED LAND BANKING, ACCESSORY DWELLING UNITS AND A RENTAL REHABILITATION PROGRAM. TO DATE COUNCIL HAS APPROVED 30 PROJECTS IN THREE FUNDING ROUNDS. EXPECTED TO PRODUCE OR PRESERVE OVER 4800 UNITS.
159 OF WHICH ARE FOR HOME OWNERSHIP OPPORTUNITIES AND OVER 4600 RENTAL OPPORTUNITIES. IN TOTAL THIS REPRESENTS OVER AN $800 MILLION INVESTMENT.
LEVERAGING $81 MILLION IN BOND FUNDS AND $18 MILLION IN OUR FEDERAL FUNDS.
THEN OF COURSE, WE THROUGH OUR SELECTION PROCESS, HEAVILY LEVERAGED ADDITIONAL FUNDING FROM THE RESPONDENTS INCLUDING LOW-INCOME HOUSING TAX CREDITS TO ENSURE THAT OUR FUNDING WAS ABLE TO BE STRETCHED AND PRODUCE AS MANY UNITS AS POSSIBLE.
TO DATE WE HAVE HAD THREE GROUNDBREAKINGS. WE ALSO HAVE SEVERAL MORE GROUNDBREAKINGS LINED UP OVER THE NEXT SEVERAL MONTHS. VERY EXCITED THAT WE'RE MAKING PROGRESS. THIS SPECIFIC ACTION IS RELATED TO FUNDING THAT WAS PREVIOUSLY PROVIDED TO THE HOUSING BOND PROJECT. THIS IS A RECOMMENDATION FOR $750,000 FROM OUR INNER CITY INCENTIVE FUND TO SUPPORT INFRASTRUCTURE FOR THE MISSION TRAILS COMMUNITY ASSOCIATION IMPROVEMENTS AT THE RIVERSIDE TERRACE MOBILE HOME PARK.
AS A WAY OF BACKGROUND, THIS PROJECT IS LOCATED WITHIN DISTRICT 3.
ROC USA, WITH A MISSION TO SUPPORT HOMEOWNERS IN MANUFACTURED COMMUNITIES TO ACHIEVE SELF GOVERNING COOPERATIVES SUBMITTED A REQUEST TO BE ABLE TO ACQUIRE AND TRANSFORM THE EXISTING MOBILE HOME PARK TO A COOPERATIVE.
THEY HAVE NOW, WORKING WITH THE MISSION TRAILS COMMUNITY ASSOCIATION, WE HAD SOME RESIDENTS WHO WERE ABLE TO SPEAK EARLIER, THROUGH THAT NEWLY-FORMED COOPERATIVE, WHICH WAS FORMED EARLIER THIS MONTH. THE TOTAL DEVELOPMENT COST FOR THE ENTIRE PROJECT IS ESTIMATED AT NEARLY $6 MILLION. RIGHT NOW THERE ARE 46 OCCUPIED RESIDENCES ON SITE WITH ROOM FOR ADDITIONAL EIGHT UNITS. THE AFFORDABILITY IS REALLY TO FOCUS ON THOSE LEGACY FAMILIES. AGAIN, SOME OF WHICH WE HAVE HEARD FROM TODAY WHO HAVE BEEN RESIDENTS OF THE MOBILE HOME PARK FOR QUITE SOMETIME, EARNING UP TO 80% AMI WITH 90% TO BE RENT RESTRICTED AT 60% AMI. THE SCOPE OF THE PROJECT INCLUDES ACQUISITION, WHICH I JUST SPOKE ABOUT, OF THE ACTUAL MOBILE HOME PARK.
ROC USA IS LEADING THIS NEXT PORTION, WHICH IS TO CREATE THE COOPERATIVE JOINT OWNERSHIP OPPORTUNITY WHICH HAS BEEN DONE, THAT'S THE MISSION TRAILS COMMUNITY ASSOCIATION.
WE DO HAVE REPRESENTATIVES FROM ROC USA HERE. WE ARE FOCUSING STRICTLY ON THE INFRASTRUCTURE ASSESSMENT AND IMPROVEMENTS AND THAT IS WHAT THIS FUNDING WILL BE GOING TOWARDS. AND NEXT UP WE WILL BE WORKING WITH THE RESIDENTS ON A POSSIBLE HOME REPAIR OR HOME REPLACEMENT PROGRAM FOR THOSE EXISTING HOMEOWNERS ON SITE.
[01:10:01]
AND THEN OF COURSE ROC USA WILL BE PROVIDING ONGOING TECHNICAL ASSISTANCE SO THE COOPERATIVE CAN BE SUCCESSFUL INTO THE FUTURE AND HAVE FINANCIAL STABILITY.AS I MENTIONED, OUR PRIOR AWARD WAS $3.1 MILLION TO FUND THE ACQUISITION OF THE PROPERTY, WHICH WAS CURRENTLY UP FOR SALE. AND THEN DURING THAT COUNCIL CONSIDERATION, THERE WAS ACKNOWLEDGMENT THAT THERE WOULD BE ADDITIONAL FUNDING NEEDED FOR THE INFRASTRUCTURE IMPROVEMENTS. AND WE WENT THROUGH THAT PROCESS WITH ROC USA TO DO THE ASSESSMENT AND ULTIMATELY BRING FORWARD THESE RECOMMENDATIONS.
THE TOTAL FUNDING REQUEST, OF WHICH THE $750,000 IS A PART OF, IS ESTIMATED TO BE $2 MILLION. THAT INCLUDES REPAIRS TO SEWER REPLACEMENT, WATER SERVICE REPLACEMENT, STREET PAVING, AND REPAVING, DEMOLITION OF SOME DILAPIDATED STRUCTURES, FENCING, SIGNAGE, AND MAILBOX. THE CITY OF SAN ANTONIO'S $750,000 IS TO BE MATCHED BY THE SAN ANTONIO HOUSING TRUST WHICH APPROVED THEIR EQUAL MATCH OF $750,000 LAST FRIDAY.
SO IN TOTAL, OUR $1.5 MILLION WILL BE DIRECTED SPECIFICALLY TO THOSE ITEMS THAT ARE OUTLINED IN RED THERE. THE REMAINDER OF THE FUNDING WILL BE FINANCED BY THE MISSION TRAILS COMMUNITY ASSOCIATION THROUGH FUNDING LEVERAGED PROVIDED THROUGH ROC USA.
AS I SPOKE EARLIER, THE NEXT STEPS REALLY FOR THIS PROJECT IS VERY SHORT DEADLINE HERE IN NOVEMBER TO CLOSE ON THE PROPERTY. THIS WILL INCLUDE THE $3.1 MILLION TO ACQUIRE THE PROPERTY SO THAT THEY CAN FULLY TRANSITION INTO THE HOME OWNERSHIP OR TO BE THE OWNERS OF THE PROPERTY. THEN WE WILL WORK WITH THE RESIDENTS, STARTING IN JANUARY, MAYBE A LITTLE BIT EARLIER THAN THAT ON A POSSIBLE HOME REPAIR OR REPLACEMENT PROGRAM FOR THOSE MOBILE HOMES. THAT'S THE FIRST TIME THAT WE'RE DOING A PROGRAM LIKE THAT SO WE'RE GOING TO WORK OUT THE DETAILS WITH THEM.
AND THEN THE INFRASTRUCTURE IMPROVEMENTS ARE ESTIMATED TO START IN JUNE OF 2024 WITH CONSTRUCTION COMPLETE BY NOVEMBER 2024. SO THAT CONCLUDES THE PRESENTATION. THE RECOMMENDATION IS TO MOVE FORWARD THE ASK TO COUNCIL FOR THE $750,000 FORGIVABLE LOAN FROM THE INNER CITY INCENTIVE FUND TO THE MISSION TRAILS COMMUNITY ASSOCIATION FOR THOSE INFRASTRUCTURE IMPROVEMENTS. AND WE DO HAVE REPRESENTATIVES FROM ROC USA AND THE NEWLY-FORMED ASSOCIATION HERE TODAY.
SO I'M HAPPY TO ANSWER ANY QUESTIONS YOU HAVE. >> GARCIA: THANK YOU, IAN.
I'M HAPPY TO BE ABLE TO SEE THIS PASS. AND SO GOOD WORK.
I KNOW THAT WE'VE BEEN WORKING WITH THE COMMUNITY AND THEIR DECISION TO FORM A CO-OP I THINK IS A BIG DEAL. LAST FRIDAY AT THE HOUSING TRUST WE APPROVED SOME FUNDING AS WELL TO ASSIST WITH INFRASTRUCTURE NEEDS. SO I KNOW A LOT OF MY COLLEAGUES WERE ALREADY ENTHUSIASTIC ABOUT IT. I KNOW IT'S A FORGIVABLE LOAN.
WHAT DO YOU SEE -- HOW LONG DO YOU THINK IT WILL TAKE TO GET THE LOAN REDUCED TO ZERO?
>> SO THE LOAN IS GOING TO BE COMBINED WITH THE FUNDING THAT WE ARE PROVIDING THEM THROUGH THE BOND FUNDING. SO THAT AFFORDABILITY PERIOD IS OVER 40 YEARS.
SO THE INNER CITY INCENTIVE WILL BE FORGIVEN OVER THAT PERIOD OF TIME.
IT DOESN'T CARRY ANY INTEREST PAID, IT'S JUST FORGIVEN OVER TIME SO THERE'S NO ADDITIONAL
DEBT THAT THE COOPERATIVE HAS TO REPAY TO US. >> GARCIA: WHAT WOULD
CONSTITUTE REPAYMENT THEN? >> IF THEY WERE TO ALL DECIDE AS A COOPERATIVE THAT THEY WANTED TO SELL THE PARK AND IT WAS NO LONGER GOING TO BE AFFORDABLE, THEN WE WOULD NEED
TO RECAPTURE THE FUNDING INVESTED INTO THE SITE. >> GARCIA: THANK YOU.
I'LL START WITH MY >> VIAGRAN: THANK YOU, CHAIR.
SO ROC USA CAME AND VISITED MY OFFICE AND BROUGHT THIS FORWARD.
AND I WAS VERY EXCITED AND I TOLD THEM THAT IT WOULD BE A CHALLENGE THAT, YOU KNOW, WE HAD HAD SOME EXPERIENCE IN SAN ANTONIO REGARDING PRE-MANUFACTURED HOMES AND HOW WE MOVE FORWARD, BUT I WAS CONFIDENT THAT THE RESIDENTS IN THE COMMUNITY WHO HAD BEEN THERE FOR SO LONG WOULD AGREE TO THIS. AND TO HAVE THEM COME AND SHARE JUST -- IT JUST MEANT SO MUCH BECAUSE THIS IS COMMUNITY THAT'S ALREADY THERE. AND THIS IS ONE OF A NUMBER OF MOBILE HOME PARKS WITHIN THE DISTRICT. AND THE ONE THING I'VE ALWAYS SAID IS I NEED AS MANY HOUSING OPTIONS AS POSSIBLE. AND ROC CAME IN AND SAID WE DO THIS ALL THE TIME ON THE EAST COAST AND I WAS LIKE OH, MY GOSH, WE DO? SO I'M -- I'M SO EXCITED TO BE HERE TODAY. THIS IS JUST ONE OF THOSE AREAS WHERE WE CAN KIND OF MAKE UP FOR THE RED-LINING FOR THE LACK OF ACCOUNTABILITY THAT WE HAD IN THIS DISTRICT WHERE WE DIDN'T ASK LANDLORDS TO BE MORE DILIGENT IN TAKING CARE OF THE INFRASTRUCTURE IN THAT AREA.
THEY SIT RIGHT ALONG MISSION TRAILS NEAR THE GOLF COURSE. THESE ARE FAMILIES WITH
[01:15:07]
MULTIPLE GENERATIONS, AND THIS IS -- FOR THEM TO COME AND SAY THIS IS WHAT WE WANT, 80 TO 60, THESE ARE THE DECISIONS. THIS IS WHERE WE WANT TO GET PEOPLE AND UNDERSTAND THIS IS THE COMMUNITY OF DISTRICT 3, OF SAN ANTONIO, OF THE SOUTH SIDE. WE HAVE PRE-MANUFACTURED HOMES, WE HAVE MOBILE HOME PARKS AND WE HAVE LUXURY APARTMENTS DOWN THE STREET TOO AND WE HAVE LEGACY HOMES. I WANT TO THANK THE SAN ANTONIO HOUSING TRUST AND PETE FOR THEIR EFFORTS TO COME ALONGSIDE AND BE PART OF THIS, AND I THINK HOW WE'RE BRINGING THIS FORWARD IS GOING TO INSPIRE SO MANY RESIDENTS HERE IN SAN ANTONIO THAT FELT LIKE THEY DIDN'T HAVE ANY CHOICES.AND NOW WITH -- WITH MISSION TRAILS COMMUNITY ASSOCIATION FORMING, PEOPLE ARE GOING TO SEE THAT THEY HAVE OPPORTUNITIES. SO I MAKE A MOTION TO MOVE
THIS FORWARD FOR FORMAL CONSIDERATION. >> SECOND.
>> GARCIA: THERE'S A MOTION AND SECOND ON THE FLOOR.
WE'LL TAKE A VOTE AFTER THE NEXT COMMENTS. COUNCILMEMBER CASTILLO.
>> CASTILLO: THANK YOU, CHAIR. THANK YOU, IAN AND TEAM.
I'M SURE IAN, VERONICA AND MARK CARMONA THAT YOU ARE SO CHECKING SO MUCH ON THE STRATEGIC HOUSING IMPLEMENTATION PLAN. I WANTED TO COMMEND YOU ALL ON THE GREAT WORK YOU'VE DONE AS WELL AS ROC FOR COUNCILMEMBER VIAGRAN FOR BEING IN SUPPORT OF THIS PROJECT AND MOVING IT FORWARD WITH URGENCY AS WELL BECAUSE THIS IS A MODEL THAT'S GREATLY NEEDED.
AND HEARING NATHAN SPEAK GIVING PUBLIC COMMENT, SHARING WE THOUGHT WE WERE GOING TO BE DISPLACED BUT NOW WE HAVE OPTIONS AND WE GET TO STAY.
THAT WAS POWERFUL, ALMOST MADE MICRO. GRATEFUL FOR THE TEAM AND THE EFFORT YOU HAVE PUT FORTH IN ASSURING THEY GET TO STAY.
WHAT WAS REALLY EXCITING TO ME IS SEEING IT'S ALSO INVESTMENT IN THE INFRASTRUCTURE AND THE -- SOMETIMES WHEN WE TALK ABOUT --O EXPENSIVE TO ADDRESS.
I'M GRATEFUL THAT YOU ALL IDENTIFIED THAT NEED AND PRIORITIZED FUNDING IMPROVEMENTS FOR THE INFRASTRUCTURE AS WELL AS FOR THE STREETS AS WELL.
BECAUSE IN OUR AREA INFRASTRUCTURE IS JUST FALLING APART. THESE ARE FOLKS WHO ARE BARELY GETTING BY AND BARELY PAYING THE MORTGAGE THAT THEY DON'T HAVE THE FUNDING TO FIX THE LATERAL TO THEIR HOME OR SIDEWALK OR STREET. GRATEFUL THAT YOU TOOK THAT HOLISTIC APPROACH. I SEE PETE HERE, I WANTED TO COMMEND THE HOUSING TRUST AS WELL AND GREAT ITEM, LOOKING FORWARD TO SUPPORTING IT. THANK YOU, CHAIR.
>> GARCIA: ALL IN FAVOR SAY AYE.
MOTION CARRIES. THANK YOU. ITEM NUMBER 4 IS BRIEFING AND POSSIBLE ACTION ON THE FISCAL YEAR 2024 COMMUNITY HOUSING DEVELOPMENT ORGANIZATION OPERATING EXPENSE FUND SOLICITATION RELEASED BY NHSD WITH AN ESTIMATED AVAILABLE HOME FUNDING OF $300,000. AND THAT WILL BE PRESENTED
BY VERONICA GONZALES. SO ALL YOURS. >> THANK YOU.
I'M ASSISTANT DIRECTOR OF NEIGHBORHOOD AND HOUSING SERVICES DEPARTMENT.
TODAY I HAVE A POST-SOLICITATION BRIEFING INCLUDE STAFF'S RECOMMENDATION TO AWARD A TOTAL OF 300,000 IN CHDO OPERATING EXPENSE FUNDING.
TO FOUR COMMUNITY HOUSING DEVELOPMENT ORGANIZATIONS. THIS INCLUDES ALAMO AREA MUTUAL HOUSING, HABITAT FOR HUMANITY, CASAS RESIDENCE COUNCIL AND PROSPERO.
EVERY YEAR SAN ANTONIO RECEIVES ENTITLEMENT FUNDS FROM HUD AND WE UTILIZE THOSE FUNDS TO PROVIDE DECENT, SAFE, AFFORDABLE HOUSING IN OUR COMMUNITIES.
TODAY'S ITEM IS IN ALIGNMENT WITH THE 2024 ANNUAL ACTION PLAN AND BUDGET THAT COUNCILMEMBERS APPROVED IN AUGUST. WE ARE UTILIZING SPECIFICALLY HOME INVESTMENT PARTNERSHIP FUNDS TO PROVIDE UP TO 300,000 TO CHDOS WHO ARE CRITICAL PARTNERS IN THE COMMUNITY AND WHO DEVELOP OR OWN AFFORDABLE HOUSING IN SAN ANTONIO. HUD ALLOWS US TO USE UP TO 5% OF EACH FISCAL YEAR HOME ALLOCATION FOR CHDO OPERATING PURPOSES. THIS FUNDING IS DESIGNED TO PROVIDE OPERATING FUNDS TO CHDO -BASED ON FINANCIAL NEED AND THE EXPECTATION THE ORGANIZATION IS UTILIZING OR WILL UTILIZE THE SET-ASIDE WITHIN 24 MONTHS OF THE AWARD. ILLEGAL CHDO OPERATING EXPENSES ARE DICTATED BY HUD REGULATIONS AND MAY INCLUDE STAFF COMPENSATION, BENEFITS, RENT, UTILITIES,
[01:20:04]
EQUIPMENT OR SUPPLIES. AS AN OVERVIEW, THE SOLICITATION TYPE WAS A REQUEST FOR PROPOSALS. THE TERM OF THE CONTRACTS FOR EACH AWARDED VENDOR WILL BE THROUGH THE END OF FISCAL YEAR 2024 AND 2025. AS I MENTIONED, THE ESTIMATED VALUE IS 300,000 IN CHDO OPERATING FUNDS. TO ENSURE ALL PERSPECTIVE RESPONDENTS WERE NOTIFIED OF THE RFPS, PROCUREMENT NOTIFIED APPROXIMATELY 198 POTENTIAL VENDORS FROM OUR AFFORDABLE HOUSING DISTRIBUTION LIST.THE EVALUATION PANEL CONSISTED OF REPRESENTS FROM NHSD AND DSD.
THE PANEL WAS ALSO SUPPORTED BY ADVISORY MEMBERS FROM OUR CITY ATTORNEY'S OFFICE, FINANCE AND MEMBERS FROM OUR GRANTS MANAGEMENT TEAM. THE EVALUATION COMMITTEE REVIEWED AND SCORED FOUR PROPOSALS BASED ON TWO SUBCATEGORIES WORTH 50 POINTS FOR A TOTAL OF 100 POINTS. THE TWO CATEGORIES, EXPERIENCE AND PROPOSED PLAN, ARE FURTHER DIVIDED INTO 11 SUBCATEGORIES.
TO IDENTIFY AN AFFORDABLE HOUSING PROJECT THEY ARE CURRENTLY WORKING ON OR WILL BE APPLYING FOR FUNDING IN THE NEAR FUTURE. PROSPERA AND ALAMO MUTUAL IDENTIFIED RENTAL HOUSING UNITS WHILE THE OTHER TWO, HABITAT FOR HUMANITY AND CASAS PROPOSED SINGLE-FAMILY HOUSING PROJECTS. THE CITY ISSUED A REQUEST FOR PROPOSALS ON SEPTEMBER 7TH. PROPOSALS WERE DUE ON OR BEFORE OCTOBER 6TH AND THE EVALUATION COMMITTEE MET ON OCTOBER 23.
THE RECOMMENDATIONS FROM THE EVALUATION COMMITTEE ARE BEING CONSIDERED AT PCDC TDAY AND ARE SCHEDULED FOR FULL COUNCIL CONSIDERATION ON NOVEMBER 9TH.
FOUR ORGANIZATIONS APPLIED AND ALL FOUR HAVE BEEN SELECTED FOR FUNDING BASED ON THEIR EXPERIENCE, BACKGROUND, QUALIFICATIONS, AND THE EXPECTATION THAT THE ORGANIZATION IS UTILIZING OR WILL UTILIZE THE CITY'S HOME FUNDING WITHIN 24 MONTHS OF THE AWARD. RECOMMENDED FUNDING ALSO CONSIDERED APPLICANT'S HISTORY AND FULLY SPENDING HOME AWARDS ON TIME AND APPROPRIATELY.
PROSPERA WAS THE TOP SCORING PROPOSAL, HABITAT FOR HUMANITY AND OR CAST IS AS WERE A CLOSE SECOND. ALAMO SCORED 59.4. THE EVALUATION COMMITTEE RECOMMENDS AWARDING 300,000 IN CHDO OPERATING EXPENSE FUNDING TO EACH OF THE FOLLOWING. 85,000 TO PROSPERA HOUSE AND COMMUNITY SERVICES, 100,000 TO HABITAT FOR HUMANITY, 75,000 TO OUR CASAS RESIDENT COUNCIL, AND 40,000 TO ALAMO AREA MUTUAL HOUSING ASSOCIATION. EQUITY OF EACH PROPOSAL WAS EVALUATED AND PROSPERA AND CASAS SCORED THE HIGHEST. PRIOR YEARS MAY HELP THEM MANAGE MORE AFFORDABLE HOUSING PROJECTS OR HIRE MORE STAFF TO INCREASE CHDO'S EXACT IN PRIOR YEARS. THAT CONCLUDES MY PRESENTATION AND I'M HAPPY
TO ANSWER ANY QUESTIONS YOU MAY HAVE. >> GARCIA: THANK YOU VERY MUCH. I'M COMFORTABLE WITH ALL OF THE ORGANIZATIONS THAT ARE RECOMMENDED, SO I'M NOT GOING TO HAVE ANY QUESTIONS. I'LL OPEN UP TO MY COLLEAGUES FOR FURTHER DISCUSSION. OR I'LL ENTERTAIN A MOTION
TO APPROVE. >> MOTION TO APPROVE. >> SECOND.
>> GARCIA: THERE'S A MOTION AND SECOND. ALL IN FAVOR SAY AYE.
ANY OPPOSED? NO OBJECTIONS. MOTION CARRIES.
THANK YOU. WE'LL GO ON TO -- SO ITEM NUMBER 5 WAS WITHDRAWN.
[Consent Agenda ]
SO WE ARE MOVING ON TO ITEM NUMBER 6, WHICH IS A CONSENT AGENDA ITEM.AND IT WAS FOR 2024-2025 HOUSING TAX CREDITS. IS THERE A MOTION TO
APPROVE? >> COURAGE: I MOVE TO APPROVE.
IT IS IN DISTRICT 9, BY THE WAY, SO I'M GLAD TO SEE AFFORDABLE HOUSING IN
DISTRICT 9. >> GARCIA: THERE'S A MOTION AND SECOND.
MOTION CARRIES. AWESOME. THANK YOU.
WE ARE
* This transcript was compiled from uncorrected Closed Captioning.