Overview: STRs are Allowed in Hondo, NM with Restrictions

Short-term rentals are permitted in Hondo, NM, but operate under strict regulations. Hondo falls within two counties, each enforcing distinct rules:

1. Hondo within Santa Fe County: STRs (specifically non-owner occupied units) are subject to a 3% cap of the total housing stock in the Arroyo Hondo Census Designated Place (CDP). Owner-occupied STRs are allowed but limited to one per owner.
2. Hondo within Taos County: STRs are permitted under Ordinance 2024-4, which imposes a county-wide cap of 400 permits. Applications are processed through the Taos County Planning Department. The cap includes exemptions for affordable housing contributors and long-term residents.

How to Start an STR Business in Hondo

The process depends on the county governing your property. Below is a step-by-step guide for each:

For Properties in Santa Fe County (Arroyo Hondo CDP):

1. Determine STR Type: Decide if your STR will be Owner-Occupied (you reside there) or Non-Owner Occupied (a second home or investment property).
2. Compliance Check: Ensure your property is a legal dwelling on a "Legal Lot of Record" under the Santa Fe County Sustainable Land Development Code (SLDC). Structures like RVs, yurts, or unpermitted accessory dwellings are not permitted as STRs without specific approvals (e.g., permits, variances).
3. Gather Required Documents: Compile all necessary paperwork (see "Required Documents" section below).
4. Submit Application:
   • Option 1 (Recommended): Schedule an appointment with the Growth Management Department (Call 505-995-2700). Staff will review your application for completeness.
   • Option 2: Submit your application and documents via email to STR@santafecountynm.gov. Clearly label each PDF with your last name and document type. Call 505-995-2700 to confirm receipt.
5. Neighbor Notification: Mail required notice letters to adjacent property owners and your HOA (if applicable). Obtain an affidavit of mailing.
6. Review & Approval: The County reviews your application. If approved, you will receive your STR Business Notice to Renters. Post this visibly inside your STR at all times.
7. Renewal: Complete annual renewals. Owner-occupied registrations renew via the County Treasurer (Fee: $35). Non-owner occupied licenses renew directly with the County (Fee: $300).

For Properties in Taos County:

1. Review Ordinance 2024-4: Familiarize yourself with Taos County's STR regulations, including the county-wide cap of 400 permits and occupancy limits.
2. Pre-Application Checklist: Use Taos County's updated checklists for Owner-Occupied or Non-Owner Occupied STRs (see "Required Documents").
3. Gather Required Documents: Compile all necessary paperwork.
4. Submit Application: Email your application and documents to str.application@taoscountynm.gov or deliver to the Taos County Planning Department (105 Albright Street, Suite H).
5. Zoning Clearance: Obtain required zoning clearance.
6. Review & Approval: The County reviews for compliance with Ordinance 2024-4.
7. Compliance Monitoring: Be aware of Taos County's enforcement protocols, including reporting violations online or by phone (575-741-2713).

Required Documents, Permits, Licenses, and Guidelines

Santa Fe County:

• Application Form: STR application (Owner-occupied requires Business Registration, Non-owner occupied requires Business License).
• Proof of Property Ownership: Deed or Survey Plat (Call Santa Fe County Clerk: 505-986-6280).
• Proof of Primary Residence: (Owner-Occupied only) Utility bill, voter registration, driver's license, W2 form, or bank statement showing the STR address.
• Site Plan: Visual representation of the property showing all structures, designated parking spaces (cannot include stacked/vacant areas), driveway, and solid waste storage. Satellite images from Google/Apple maps or the County Assessor's website are acceptable.
• Floor Plan: Sketch or downloaded plan highlighting the STR area, room labels, and approximate square footage. Hand-drawn plans are acceptable.
• Fire Self-Certification Form: Completed and signed.
• Proof of Property Taxes: Tax certificate from Santa Fe County Treasurer (Call 505-986-6245 or email treasurer@santafecountynm.gov).
• State CRS ID Number: NM Tax ID (Call 505-827-0700).
• Water Meter Reading: (Non-Owner Occupied only). Current reading required if property has water restrictions.
• Assigned 911 Address Form: Request via email (mjurgens@santafecountynm.gov).
• Neighbor Notification Package: Includes pre-filled notice letter, list of adjacent property addresses, envelopes, and postage (provided by County for a fee). Affidavit of mailing required.

Taos County:

• Application Form: Short-Term Rental Permit Application & Zoning Clearance Application.
• Owner Permission Statement: Required if applicant is not the property owner.
• Affidavit of Compliance: (Owner-Occupied or Non-Owner Occupied).
• Fire Department Requirements: Documentation of compliance with residential occupancy standards.
• Rural Addressing Application: To ensure emergency services can locate the property.
• Business Registration & Lodging Establishment Applications: As required by the STR Permit Application.
• Checklists: Strict adherence to the Owner-Occupied or Non-Owner Occupied Submittal Checklists (updated frequently).

Specific Regulations

Santa Fe County (Arroyo Hondo CDP):

1. Allowance: STRs permitted in zoning districts where residential use is allowed.
2. Cap: Non-Owner Occupied STRs are capped at 3% of the total housing stock within the Arroyo Hondo CDP. No cap applies to Owner-Occupied STRs (limited to one per owner).
3. Occupancy Limit: Maximum of 10 people, or 2 people per approved bedroom, whichever is less. Existing licenses exceeding 10 may continue under the same ownership.
4. Validity: Owner-occupied registrations are valid for one calendar year (Jan-Dec). Non-owner occupied licenses are valid for one year from issuance.
5. Renewal Fees: Owner-occupied: $35/year (via Treasurer). Non-owner occupied: $300/year.
6. Structure Requirements: Only legal dwellings on a Legal Lot of Record are permitted. Unpermitted structures require "after-the-fact" permits or variances before applying.
7. Accessory Dwelling Units (ADUs): Must comply with SLDC standards (e.g., size limits, setbacks). Variances may be needed for non-compliant ADUs.
8. Neighbor Notification: Mandatory before operation.
9. Enforcement: Active pursuit of permits prevents citations.

Taos County:

1. Allowance: STRs permitted in unincorporated areas per Ordinance 2024-4.
2. Cap: County-wide cap of 400 permits with exemptions for:
   • Existing Home Occupation Permits (190+ expected).
   • Affordable Housing Contributors.
   • Long-Term Residents (10+ years).
3. Occupancy Limit: Maximum of 10 people (or 2 per bedroom).
4. Application Acceptance: Applications open October 21, 2024.
5. Enforcement: Two new code enforcement officers added to monitor compliance and issue citations.

State-Level (New Mexico):

1. Business Registration: A Combined Reporting System (CRS) ID Number is required for tax purposes (Call 505-827-0700).

Contact Information

Santa Fe County (Growth Management Department):

• Phone: 505-995-2700
• Email: STR@santafecountynm.gov
• Physical Address: 100 Catron Street, Santa Fe, NM
• Website: Santa Fe County STR FAQs

Taos County (Planning Department):

• Phone: 575-737-6440
• Email: str.application@taoscountynm.gov
• Physical Address: 105 Albright Street, Suite H, Taos, NM 87571
• Website: Taos County STR Ordinance Page

Links to Source Pages

1. Santa Fe County STR Hyperlinked FAQs
2. Taos County Short-Term Rental Ordinance (Ordinance 2024-4)
3. Taos County STR Applications & Forms
4. Taos News Article on STR Ordinance

Disclaimer: This guide is for informational purposes only and not a substitute for legal advice. Always consult with local authorities and the full text of the relevant ordinances before proceeding.