Santa Fe, NM Accessory Structures: ADU Owner Occupancy (2026)

3(D)(1) of the Land Development Code, let a homeowner build one ADU per legal lot of record, capped at either the gross floor area of the principal dwelling or 1,500 square feet, whichever is less. Subsection (D)(1)(g) then splits how the ADU or the principal unit can be rented depending on whether the owner lives on site. 2(A)(5), but not both at the same time, and while that rental is happening the owner-occupant must continue to occupy whichever of the two units is not being rented out.

This is the mechanism that keeps a short-term rental permit tied to a genuine owner-occupied property rather than letting an investor rent out an entire ADU-equipped lot with no one living there. The land use director administers compliance, and the property's certificate of occupancy for the ADU depends on staying in continuous compliance with this section; the land use director can require proof of continuous residence, noting that a driver's license, voter registration or tax return address alone may not be sufficient. Non-owner-occupied properties fall instead under (D)(1)(g)(ii), which requires 30-day-minimum rentals rather than short-term stays.

The city's short-term rental permit system, capped citywide at 1,000 permits, treats an ADU application under this ordinance as exempt from the standard 50-foot proximity restriction that otherwise blocks new permits near existing short-term rentals.