Fruita discussion on ADUs, short-term rental permits and housing survey; CHFA resolution pulled

A Fruita resident urged councilors Monday to add protections to prevent accessory dwelling units from becoming short-term rentals, while councilors and staff said they are awaiting results of a city housing needs assessment before making policy changes. In public comment, Tessa Bynum, a Fruita resident, told the council she supported allowing ADUs but warned, "just because we are allowing ADUs into the city of Fruita doesn't mean that they are all going to be houses for people to live in because the majority of houses that are ADUs are used for short term rentals." She urged the council to add safeguards so new ADUs would not be converted into visitor accommodations. Council discussion noted the city has a cap on short-term rental permits and that the number of active permits is stable. A councilor said the city is "sitting at, I think, a permit level of 65" for short-term rental permits and said that does not mean all future ADUs will become STRs. City staff and councilors also discussed the city's housing needs assessment and an online survey tied to it. The city manager said the survey will remain open for about a month, staff will continue promoting it, and the consultant for the housing study will meet with local utilities and stakeholders. The manager also told council that a Colorado Housing Finance Authority (CHFA) form resolution originally included in the packet was removed at CHFA's request and will be returned when CHFA provides finalized language. Why it matters: councilors said they prefer to see the full housing needs assessment before pursuing substantive ordinance changes, and residents urged rules to preserve housing stock for local residents rather than visitors. Councilors and staff described next steps: maintain public outreach about the housing survey, incorporate stakeholder feedback (including utility providers) into the consultant's work, and return the CHFA resolution with CHFA'approved wording. No ordinance or rule change was proposed or adopted at the meeting. Clarifying details from the meeting: the short-term rental permit count was described as about 65 (no exact date tied to that figure); the housing-needs survey was described as open for roughly a month; the CHFA form resolution was removed from the packet for rewording at CHFA's request; the city manager said the housing consultant (referred to as Points in the meeting) will meet with Ute Water and other stakeholders to gather input. Community relevance: the discussion affects Fruita homeowners in neighborhoods where ADUs are allowed and the supply of short-term rentals downtown; the CHFA resolution relates to a funding/eligibility form the city had been asked to adopt but did not approve at this meeting. No formal vote or ordinance change on ADUs or short-term rentals occurred at the meeting. The CHFA resolution was removed (no vote) pending CHFA'approved language, and staff were directed by consensus to continue outreach and stakeholder interviews for the housing needs assessment.