Consideration and Adoption of Resolution No. 2025-08:  A resolution of the Flagstaff City Council recognizing the housing emergency declared by Resolution No. 2020-66 is exacerbated by the proliferation of short-term rentals limiting housing stock available to Flagstaff residents; and urging the state legislature of the State of Arizona to address the impacts of short-term rentals on the supply of housing for Arizona residents.
 

1. Read Resolution No. 2025-08 by title only
2. City Clerk reads Resolution No. 2025-08 by title only (if approved above)
3. Adopt Resolution No. 2025-08

This resolution recognizes the City of Flagstaff Housing Emergency declared by resolution No. 2020-66 and notes that this Housing Emergency is exacerbated by the proliferation of short-term rentals in our community. The resolution urges the state legislature of the State of Arizona to address the impacts of short-term rentals on the supply of housing for Arizona residents. The resolution lists numerous impacts that short-term rentals have on housing in Flagstaff, including making units unavailable for Flagstaff residents and potentially creating noise and nuisance issues for those living nearby. The resolution calls for the state legislature to allow local governments to adopt reasonable regulations on the number and location of short-term rentals to mitigate the negative impacts short-term rentals can have on local housing markets. 

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The Flagstaff City Council approved the Council's 2025 state and federal legislative priorities on January 21, 2025. The 2025 state legislative priorities include a priority to support efforts that allow for local regulations over short-term rentals. 

On February 11, 2025, the Housing Commission discussed the Resolution and voted 5-4 to send the Resolution to the City Council with a recommendation for approval. Comments from commissioners who voted in support of a recommendation to approve the Resolution centered around the desire to return the ability to regulate STRs to the local level and the potential for growth of STRs in the future. Comments from commissioners who voted against a recommendation to approve the Resolution centered around the belief that further STR regulations would not benefit the community and could negatively impact the generation of tax revenue from STRs. More information can be found in the meeting minutes. 

Option A - Approve the resolution
Option B - Do not approve the resolution

Senate Bill 1350, passed in 2016, requires local governments in the state of Arizona to allow short-term rentals in all residential zones.

This resolution is in support of the Livable Community, and Safe and Healthy Community priorities within Priority Based Budgeting. 

The resolution supports a numbers of goals within the 2030 Regional Plan, including:

• Goal NH.1. Foster and maintain healthy and diverse urban, suburban, and rural neighborhoods in the Flagstaff region.
• Goal NH.3. Make available a variety of housing types at different price points, to provide housing opportunity for all economic sectors.

The resolution supports the Housing for All target area within the Carbon Neutrality Plan. 

This resolution is in support of the following section of the City of Flagstaff's 10-Year Housing Plan:
Protect 1: City Council will continue to lobby and support federal and state legislation to encourage changes to federal and state laws, and to increase the amount of funding available for the preservation and construction of affordable housing.
Protect 1.1: Advocate to the State of Arizona to allow greater local control of vacation rentals and second homes. 

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