Scottsdale unanimously strengthens short-term rental enforcement, approves $1.5 million housing funds

Scottsdale Council Unanimously Backs STR Crackdowns and Community Funding as Mayor Warns of "Destructive" State Legislation

Scottsdale City Council voted unanimously on three separate items tonight—two ordinances amending short-term rental nuisance regulations and a Community Development Block Grant allocation plan—while Mayor David Ortega sounded an alarm about pending Arizona Legislature bills that would undermine the city's enforcement efforts by potentially doubling its STR inventory and preempting local fire safety codes.

The meeting highlighted the council's unified commitment to neighborhood protection and federal program stewardship, even as state-level action looms as an existential threat to those policies.

Key Speeches

"Over three years I believe so [this work has taken], so thank you for all you've done and I want the citizens to know that we are listening to them. I routinely get complaints about short-term rental behavior. I think this is a very big step in the right direction." — Councilwoman Betty Janic, on the STR ordinance amendments

"We are leading in the state on how to best control what was pretty much an unregulated industry and make it so it's less disruptive and still serves its purpose. This is yet another attempt by the city of Scottsdale to lead the charge in a way that we allow for good actors but we reign in some of the bad actors." — Solange Whitehead, on enforcement strategy

"As we speak the Arizona legislature is considering two bills—one House Bill 2720 and the other one the Senate bill—which would double the number of short-term rentals Scottsdale has. It's definitely a destructive, it's an ill-tempered piece of legislation that's coming forward and it's really wrong for the entire Valley." — Mayor David Ortega, on state preemption threat

"These funds totaling nearly $2 million will do much good to help low and moderate income residents address a number of challenges. We have not only helped individuals we've enhanced the housing stock in sections of Scottsdale that qualify for these funds." — Neil Shear, Human Services Commission member, on CDBG impact

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Timeline

• Ordinance presentation (Will Brooks, Management Associate): Staff outlined three amendments: adding event promoters as responsible parties for nuisance parties; prohibiting minors from renting STRs; granting police authority to remove non-residents from properties after declaring nuisance parties based on preponderance of evidence. Public feedback process in March received 2,175 responses with 92% approval.

• Staff recommendation: Adoption of both ordinances with minimal staffing and budget impacts; Deputy City Attorney Luis Santo clarified definitions and legal basis, noting the nuisance ordinance applies to all residences, not just STRs, and that "non-residents" means persons not residing at the property in question.

• Public comment on STR ordinances: No speakers opposed; no speakers in favor. Council members directed questions to Will Brooks and Deputy City Attorney Santo.

• Council discussion—STR ordinances: Five council members spoke. Councilwoman Janic thanked Brent Stockwell for three years of work and emphasized listening to constituents. Council Member Tom Durham asked for clarification on the "non-residents" definition; Santo confirmed it applies to all properties and that more than six persons are presumed non-residents per zoning code. Solange Whitehead noted the city's national leadership on STR regulation and mentioned a new lien pilot program for non-compliant owners. Council Member Barry Graham questioned the promoter definition and whether texting about a party constituted promotion; Santo said context matters and exemptions exist for political and charitable events. Councilwoman Kathy Littlefield thanked the department and noted more STRs are "coming up the pike." Mayor Ortega then warned of HB 2720 and a Senate bill that would allow accessory dwelling units to be marketed as STRs, potentially doubling Scottsdale's 4,000+ existing STRs, while also preempting local fire sprinkler safety requirements—"irresponsible," "destructive" legislation that the governor may veto.

• Vote on Ordinance 4626 (nuisance party, promoter, removal amendments): Unanimous. No individual votes named in transcript.

• Vote on Ordinance 4627 (prohibition on minors renting STRs): Unanimous. No individual votes named in transcript.

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Community Development Block Grant Annual Action Plan:

• Presentation (Mary Witkowsky, Community Development Assistant Manager, and Chad Booker): Fiscal year 2425 allocation of approximately $1.1 million CDBG and $355,100 HOME funds (estimated, pending HUD confirmation). Plan allocates funds across three national objectives: $307,000 to public services (domestic violence victims, seniors, youth, mental health, disabled, homeless); $857,000 to green housing rehabilitation; $200,000 to public facility improvements; $232,000 to program administration. HOME rental assistance program currently serves 6 seniors (stably housed after displacement), has 1 pending eligibility, and funds 8 additional slots; average annual cost per person: $15,000–$18,000. Residents pay 30%, city/federal funds cover 70%. Total available funding approximately $1.5 million after reprogramming prior-year unspent allocations ($379,000). Witkowsky noted two public hearings required; first conducted with Human Services Commission; 30-day public comment period closes today (May 6). Programs take effect July 1, 2025.

• Public comment on CDBG plan: One speaker, Neil Shear (Human Services Commission member), affirmed support and highlighted council's success acquiring federal grants. Shear noted that over the years the city has helped over 2,000 homeowners with improvements, enhanced housing stock in eligible areas, and provided emergency/transitional housing, crisis counseling, and case management. He warned that it is becoming harder to secure state and county grants and suggested the city may need to invest more general-fund dollars to sustain basic human services for seniors and vulnerable residents.

• Council discussion—CDBG plan: Solange Whitehead praised alignment between staff recommendations and public priorities; asked clarifying questions about rental assistance (six seniors served, eight more slots funded, cost $15,000–$18,000 per person annually, referrals only through Granite Reef or Via Linda Senior Centers, mandatory quarterly case management). Council Member Barry Graham confirmed seniors are Scottsdale residents and that city pays landlord directly (not residents). Barry Graham asked whether green rehabilitation focuses on power or water conservation; Chad Booker came forward to explain the program focuses on energy conservation through efficient air conditioners, home performance evaluations (ducts, insulation, breathability, windows), and building code compliance, with scope of work written for each home; three projects completed in FY2024. Council Member Tom Durham asked what "reprogramming" means; Witkowsky clarified it refers to unspent prior-year CDBG allocations redeployed to eligible activities, which is common year-to-year. Councilman Tom Durham also noted that the money comes with strings attached (federal requirement to help vulnerable populations) and observed that recipients are elderly priced out of homes, not illegal immigrants or substance-abusing individuals, and that programs are well-run with good oversight. Councilwoman Betty Janic asked whether increasing demand or declining federal funding drove the need for future general-fund support; Witkowsky said funding is going down. Councilwoman Janic also noted that all line items have been vetted by the Human Services Commission, nonprofits (Family Promise, Ability 360, New Leaf, Crystalis Shelter) are performance-driven, and contracts include strict accountability. Councilwoman Tammy Caputi emphasized that the city's goals, consolidated action plan, and community priorities all align, called the program "a no-brainer," and praised Scottsdale's long track record of caring for vulnerable populations.

• Vote on Resolution 13099 (FY2425 CDBG Annual Action Plan): Unanimous. No individual votes named in transcript.

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Opposition

STR Ordinances:

• Number of speakers against: 0

CDBG Plan:

• Number of speakers against: 0

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Support

STR Ordinances:

• Number of speakers in favor: 0 (no formal public comment speakers; all council members spoke favorably)

CDBG Plan:

• Number of speakers in favor: 1
  • Neil Shear (Human Services Commission member): affirmed council's success with federal programs, noted 2,000+ homeowners helped over the years, highlighted emergency housing, crisis counseling, and enhanced housing stock in eligible neighborhoods. Warned of declining federal/state grant availability and flagged need for future general-fund investment in human services.

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Project Details

STR Nuisance Ordinances (Ordinances 4626 & 4627)

• Case numbers: Ordinance 4626 (nuisance party, promoter, removal); Ordinance 4627 (minors prohibition)
• Applicant/proposer: City of Scottsdale staff
• City Attorney: Sherry Scott
• Deputy City Attorney: Luis Santo
• Staff lead: Brent Stockwell (Assistant City Manager); Will Brooks (Management Associate to City Manager)
• Work timeline: November 2023 work study session (initial council feedback); March 2024 public feedback (2,175 responses, 92% approval); May 6, 2024 adoption
• Ordinance amendments:
  1. Add event promoters as responsible parties for causing nuisance parties or unlawful gatherings
  2. Prohibit minors (persons under 18) from renting short-term rentals
  3. Grant Scottsdale Police authority to order non-residents to leave properties after a nuisance party is declared, based on preponderance of evidence and officer determination that the nuisance party/unlawful gathering threatens public peace, health, safety, or general welfare; written notice required; 8-hour leave period
• Applicability: All residential properties, not limited to STRs
• Enforcement: Police dedicated unit; new lien pilot program for non-compliant STR owners in default on fines
• Budget impact: Minimal staffing and workload impacts; no current budget impacts
• Community feedback: 2,175 responses through city engagement platform (Poco); 92% strongly agree or agree city moving in right direction

Community Development Block Grant FY2425 Annual Action Plan (Resolution 13099)

• Funding sources: Federal Community Development Block Grant ($1.1 million, pending HUD confirmation); HOME Investment Partnership Program ($355,100, estimated); program income ($56,000); reprogrammed prior-year funds ($379,000); total available ~$1.5 million
• Lead staff: Mary Witkowsky (Community Development Assistant Manager); Chad Booker (Green Housing Rehabilitation program); Human Services Commission (vetting body)
• Allocation breakdown:
  • Public services (nonprofits): $307,000 (victims of domestic violence, seniors, youth, mental health, disabled, homeless)
  • Green housing rehabilitation: $857,000 (energy-efficient upgrades, air conditioners, home performance evaluations, building code compliance)
  • Public facility improvements: $200,000
  • Program administration: $232,000
  • Unallocated (to be brought to FY2526): $19,962
• HOME rental assistance program:
  • Current participants: 6 seniors (stably housed after displacement)
  • Pending eligibility: 1
  • Funded additional slots: 8
  • Cost per person annually: $15,000–$18,000
  • Resident contribution: 30% of rent
  • City/federal funding: 70% of rent
  • Referral requirement: Granite Reef or Via Linda Senior Centers
  • Mandatory quarterly case management
  • Program launch: November 6, 2023
• Green housing rehabilitation:
  • Focus: Energy conservation (air conditioners, duct evaluation, insulation, window upgrades, building code compliance)
  • FY2024 projects completed: 3
  • Loan structure: City provides loan (not grant); lean placed on property; 50% forgiven after 3 years of residency; remaining 50% paid to city if property sold or resident relocates
• Nonprofit service partners: Family Promise of Greater Phoenix, Ability 360, New Leaf, Crystalis Shelter (performance-based contracts with strict accountability)
• Community priorities (per SpeakUp Scottsdale and Human Services Commission):
  1. Nonprofit agency funding to help vulnerable populations
  2. Emergency repairs for qualified homeowners
  3. Rental housing acquisition for low-/moderate-income families
  4. Tenant-based rental assistance for seniors
• Federal requirements: Two public hearings (one pre-draft, one during 30-day comment period, which closes May 6); plans take effect July 1, 2025; programs subject to HUD confirmation and formal HOME IGA coming to council in fall
• Financial context: City receives ~$1.1 million CDBG annually via federal statutory formula; ~8% of Maricopa County HOME Consortium total (consortium includes Glendale, Goodyear, Peoria, Surprise, Tempe, Gilbert, Chandler, others)

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Vote Breakdown

STR Ordinances (4626 & 4627)

• Final: Unanimous (7-0)
• Yes: All council members present
• No: None
• Abstentions/absences: None
• Individual votes not stated in transcript.

CDBG Plan (Resolution 13099)

• Final: Unanimous (7-0)
• Yes: All council members present
• No: None
• Abstentions/absences: None
• Individual votes not stated in transcript.

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Outcome & Next Steps

STR Ordinances: Ordinances 4626 and 4627 adopted unanimously. New enforcement tools available immediately to Scottsdale Police Department, including authority to order non-residents from nuisance properties and lien pilot program for non-compliant STR owners. City remains compliant with state law while advancing local neighborhood protection. Mayor Ortega warned that pending state legislation (HB 2720, Senate bill) could nullify local gains by doubling STR inventory and preempting fire safety codes; mayor expects gubernatorial veto but outcome pending.

CDBG Plan: Resolution 13099 adopted unanimously. Fiscal year 2425 Annual Action Plan forwarded to HUD (pending formal confirmation of allocations). Programs take effect July 1, 2025. Formal IGA for HOME rental assistance program to be brought to council in fall 2024. Unallocated balance of ~$19,962 will be brought to council for FY2526 disposition. Council will monitor performance of nonprofit partners and may need to revisit general-fund support for human services if federal/state grant funding continues to decline.

Board and Commission Nominations: Council completed nominations for 12 citizen advisory boards and commissions (Board of Adjustment, Citizens Bond Oversight Committee, Environmental Advisory Commission, Historic Preservation Commission, Human Relations Commission, Human Services Advisory Commission, Library Board, Lost Trust Fund Board, McDow Sonor Preserve Commission, Neighborhood Advisory Commission, Parks and Recreation Commission, Planning Commission). Applicants will be interviewed and formally appointed at a May 14 special city council meeting. Applications not selected will remain on file for one year.

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Controversies & Context

State Preemption Threat: Mayor Ortega raised urgent concern about Arizona Legislature bills (HB 2720 and an unnamed Senate bill) pending as of May 6, 2024. The legislation would allow accessory dwelling units (second houses on a single property) to be marketed as short-term rentals. Ortega stated Scottsdale currently has over 4,000 STRs and that the bills would "double" the inventory. The bills would also preempt Scottsdale's local fire sprinkler safety code requirements for accessory buildings—a direct safety rollback. Ortega characterized the legislation as "destructive," "ill-tempered," and "wrong for the entire Valley," noting that the bills apply to cities over 75,000 population, creating unequal burden across the state. Ortega cited Phoenix as a cautionary example: the city allowed ADUs but prohibited them from being rented as STRs—the opposite of what Arizona's bill would impose. Ortega expressed hope for gubernatorial veto but acknowledged the outcome is pending. This state-level threat directly undermines the council's three years of local STR ordinance work, as illustrated by the mayor's placement of the warning immediately after unanimous passage of the new nuisance ordinances.

Community Engagement on STRs: The ordinance amendments were grounded in extensive public feedback: 2,175 responses via city engagement platform (Poco) in March 2024, with 92% approval. Council members noted they receive more complaints about STR noise and behavior than almost any other issue. Councilwoman Janic stated she "routinely get[s] complaints about short-term rental behavior" and called the ordinances "a very big step in the right direction." Barry Graham, who lives in Scottsdale district 51 and is surrounded by STRs, described constant noise complaints to his wife and noted he has called STR operators directly when witnessing code violations (e.g., trash placed on street before pickup day)—a sign that owner-operator cooperation is possible when enforcement tools exist.

Legal and Definitional Challenges: Deputy City Attorney Luis Santo fielded multiple council questions about ambiguity in ordinance language:

• Non-resident definition: Council Member Durham asked whether "non-resident" meant non-resident of Scottsdale or non-resident of the property; Santo clarified the ordinance applies to all properties and "non-residents" means persons not residing at that property. The ordinance presumes more than six persons are non-residents because Scottsdale's zoning code defines a single family as up to six adults plus dependent children.
• Promoter definition: Barry Graham pressed on whether texting about a party constitutes "promoting" and becoming a responsible party. Santo defined promoter as "a person who contracts for, arranges with an owner or other responsible person to provide any activity or event with or without compensation" and noted exemptions for political and charitable events. Santo acknowledged no ordinance is perfect and said the city may revisit language if needed.
• Minors restriction: Barry Graham asked why the ordinance prohibits minors under 18 but not 18–21 year-olds (who might facilitate underage drinking). Santo explained minors under 18 are already prohibited from entering contracts under state law, so the ordinance closed an enforcement gap. For 18–21 year-olds, Santo said the city likely lacks constitutional authority to restrict contract rights, but if a party involves underage drinking it becomes an "unlawful gathering" and police can shut it down.

Enforcement Innovation: Solange Whitehead highlighted a new lien pilot program: Scottsdale now places liens on STR properties owned by operators who default on fines, incentivizing compliance. This represents creative enforcement alongside the police's dedicated STR unit and owner-operator outreach (offering compliance support to "good actors" while reigning in "bad actors," per Solange Whitehead framing).

CDBG Context: The council's unanimous approval of federal housing and community development funds came amid broader fiscal and policy uncertainty. Human Services Commission member Neil Shear warned that federal and state grant funding is declining and the city may soon need to invest more general-fund dollars to sustain basic human services for seniors and vulnerable populations. Councilman Tom Durham defended federal funding with strings attached, noting the city uses it for practical purposes (housing displaced seniors, not homeless individuals with substance issues) and runs programs with accountability. Councilwoman Caputi called alignment between federal priorities, community input, and city goals a "no-brainer" and emphasized Scottsdale's long track record of caring for vulnerable populations—a characterization contrasting with national partisan debates about homelessness and public spending.

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Duration

• STR ordinances item: Approximately 35–40 minutes (presentation, council discussion, vote)
• CDBG plan item: Approximately 45–50 minutes (presentation, public comment, council questions and discussion, vote)
• Board and commission nominations: Approximately 30–35 minutes (rapid-fire nominations across 12 boards)
• Total meeting: Approximately 2.5–3 hours (including sustainability award, city manager video, public comment opportunities, minutes approval, consent agenda, and adjournment)

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Other Notable Items

Sustainability Award: Mayor David Ortega presented the 2024 Sustainable Scottsdale Award to "Our City," a food-waste collection and composting organization that has diverted millions of pounds of food waste from landfills over 10 years, produces compost on-site, and offers organic produce via curbside delivery. The city is partnering with Our City to double residential customer numbers in Scottsdale.

Public Comment—First Responder Gratitude: Stephen Cesaris offered brief public comment thanking the Scottsdale Police Department, Fire Department, and EMS for their service, work ethic, and sacrifice. Cesaris drew parallels to his own background in a similar profession, noting the long hours, trauma, shift work, and camaraderie ("fist pounds at the end of watch") that characterize first responder life.