Flagstaff Housing Commission narrowly backs resolution urging state to restore local control over short‑term rentals

The Flagstaff Housing Commission on Tuesday voted 5-4 to forward to the City Council a resolution asking the Arizona Legislature to allow cities more local control over short‑term rentals, which staff and commissioners said can remove housing units from the long‑term market.

The resolution asks the council to recognize the city’s housing emergency (Resolution No. 2020‑66) and to urge state lawmakers to allow municipalities to regulate the number or placement of short‑term rentals. Commissioner Tyler Denham opened a special meeting on the item after staff said the City Manager directed the housing department to bring the resolution forward for the March 4 City Council agenda.

The resolution matters, staff said, because state law limits what cities can do about short‑term rentals. “Short term rentals or STRs are any residential unit that's leased for less than 30 days,” said Sarah Langley, the city’s public affairs director. Langley told commissioners the legislature passed SB 1350 in 2016, which requires cities to allow short‑term rentals in residential zones, and that subsequent bills in 2019 and 2022 only added limited tools such as owner contact information and licensing.

Langley and housing staff said Flagstaff currently has about 1,142 short‑term rental listings, roughly 3.6 percent of the city’s housing stock. Commissioner Ranj, who said he owns short‑term rentals and knows the industry, disputed the extent of the housing impact and emphasized the local economic contribution of the sector. “In 2021, STR activities contributed $893,000,000 in economic output specifically in Coconino County,” Ranj said, adding the figure supported “10,282 jobs and generates $65,300,000 in tax revenue.”

Other commissioners said the percentage could grow without local authority to act. Commissioner Ross Schaeffer noted the current share “might be what it is today, but how does that grow?” Several commissioners asked staff questions about implementation, Homeowners’ Association (HOA) authority, and whether the resolution prescribes specific local rules; staff repeatedly said the resolution asks only for the state to return that ability to cities and does not itself create local regulations.

City staff and the commission’s legal adviser also discussed HOA authority. Christina Rubalcaba, senior assistant city attorney, told commissioners a recent court decision complicates HOA efforts to add restrictions later and clarified that if the state returned regulatory authority to cities, local rules would operate alongside—rather than necessarily replace—HOA covenants.

Commissioner Karen Flores moved to forward the resolution to City Council with a recommendation for approval; Commissioner Moses Milazzo seconded. The roll call vote recorded five ayes (Tyler Denham; Sandy Flores; Moses Milazzo; Ross Schaeffer; Hailey Zoroyah) and four nays (Kevin Dobie; Jackie Kellogg; Corey Runge; Kevin Bond/Eric Brownfield recorded as nay in roll call). The motion passed; staff said the item is scheduled for City Council consideration on March 4 and that a summary of the commission’s discussion will accompany the packet.

The recommendation does not change local law; it sends a formal request to state lawmakers to allow municipalities more discretion over how short‑term rentals are regulated. City staff and commissioners said any detailed local regulations — for example limits on the number of listings, minimum distances between rentals, or distinctions between whole‑home rentals and rooms/ADUs — would require separate policy decisions and would come later if the state grants authority.

The meeting included no public commenters on the item. The commission adjourned after brief administrative updates.