As this subject continues to evolve, just yesterday the Telluride town council voted 6-1 to place an immediate moratorium on providing short term rental business licenses to town of Telluride property owners. As you can imagine, with the recent news of the proposed initiative to limit future STR licenses, many property owners who didn’t have a license have applied for them so they’re grandfathered in for future years; Erika and I did it with our 1 bedroom town condo that we long term rent.
In what’s been called a “rush” on STR licenses, 40 were granted in just the last couple weeks as owners seek that grandfather clause. Not any more as the moratorium was approved.
What’s this going to mean for real estate in the town of Telluride? At this point, a good amount of uncertainty. I’ve heard stories of buyers who have backed out of contracts with the uncertainty of whether they’ll be able to rent their property or not. Clearly, this isn’t great for the real estate market. Continuing, this will definitely send buyer demand up to the friendly Mountain Village where no restrictions exist. Just last week I had condo buyers who changed their condo search focus from the town of Telluride to the Mountain Village and this subject was a legitimate factor in their decision.
Here’s an article from the Daily Planet on the moratorium:
Ballot proposal offers remedy for Telluride affordable housing needs
A practical ballot measure to provide housing assistance to local workers and immediately create new affordable housing options, while pausing new licenses for short-term rental properties for a period of two years — and protecting the area’s tourism economy — has been proposed by a local grassroots citizens group.
The proposed Telluride Housing Affordability Ordinance would create a Workforce Affordable Housing Fund by imposing a 100 percent increase in the fee for short-term rental licenses and allocating $2 million from the town’s Real Estate Transfer Tax (RETT) revenue, which has grown substantially in recent months.
Under the ballot proposal, the Workforce Affordable Housing Fund would focus on two primary activities: funding and financing the development and preservation of temporary and affordable workforce housing, including the acquisition of land; and providing direct, need-based rental assistance payments to workers employed in our town.
The measure would also pause the issuance of new short-term rental licenses beyond the number in place on Election Day this November, when the measure would be before Telluride voters. This pause would be in effect for two years to give local governments a chance to fill the pipeline with planned housing projects.
“It’s time for Telluride to come together and get practical about helping local working families who need affordable housing options,” said Keith Hampton, a board member of the Telluride-based Community Alliance for Effective Housing Solutions, which is spearheading the measure. “It’s time to move beyond the political back and forth and vote on a community-focused solution that will provide real help today, not two years from now.”
Advocates of the ballot proposal stressed that, unlike other proposals under discussion, the measure takes action to address affordable housing and avoids threatening the local tourism economy and local businesses, which are struggling to recover from the COVID-19 crisis.
Placing this measure before voters requires a vote of Telluride Town Council. Dozens of residents, taxpayers and property owners have sent emails to council members urging them — regardless of their personal views on the affordable housing issue — to allow local citizens to vote on the proposal.
“We are hopeful that our Town Council will allow for local citizens to have a conversation about a practical, meaningful alternative proposal to address our affordable housing needs, and let us vote on investing some of our local revenue windfall in a cause that our community has been talking about for years,” Hampton said.
Community Alliance for Effective Housing Solutions