Operationalizing Control: Pima County’s Strategy for Regulating Short-Term Rentals Amid Housing Crisis

The Pima County Board of Supervisors has formally requested legislative authority to implement local control over short-term rentals (STRs), a move positioned as a critical step in confronting the escalating regional housing crisis. This policy pivot moves beyond the existing state-mandated tax and registration framework, acknowledging that a substantial portion of the housing stock has been diverted from the long-term rental market. While the initial request seeks the necessary legal leverage, the true impact of this initiative hinges on the county’s ability to effectively operationalize new regulatory power, complement it with robust financial measures, and establish a clear timeline for transformation. As of November 7, 2025, the focus shifts from securing the authority to meticulously planning its execution across administrative, financial, and civic engagement fronts.

VI. Operationalizing New Authority: Enforcement and Administrative Frameworks

Should the County secure the requested state legislative authority, the administrative undertaking required to translate policy intent into tangible relief will be immense. The success of any new STR ordinance will not be measured by its passage, but by its consistent, fair, and transparent enforcement.

Developing Robust Compliance and Monitoring Protocols

The operational core of the new framework must be a dynamic, technology-enabled enforcement mechanism. This is essential for policing the rapidly evolving digital marketplace where STRs are advertised and booked. The county must establish a dedicated compliance unit, staffed and trained not just in code enforcement, but also in digital data acquisition and analysis, to actively monitor major online platforms.

• Active Monitoring: The unit will be tasked with continuously scanning listings to ensure compliance with new registration, licensing, and occupancy limitations, moving beyond a purely reactive, complaint-driven model.
• Investigative Capacity: It must possess the authority to investigate complaints thoroughly, distinguishing between true violations and minor administrative slips.
• Escalating Penalties: A key component of the protocol will be the implementation of escalating civil penalties designed to deter non-compliance from high-volume, commercial operators who contribute most significantly to housing stock erosion. The efficacy of the policy is directly proportional to the county’s capacity to police the digital economy effectively.

Streamlining the Application and Permitting Process for Compliant Operators

To ensure the new regulatory structure fosters compliance rather than antagonism, the administrative framework must incorporate clarity and accessibility, particularly for responsible, small-scale operators. A successful policy will draw a clear regulatory line between different operating models, ensuring that the heaviest burden falls upon commercial investors.

• Differentiation: The new system must clearly distinguish between owner-occupied home-sharing—where a resident rents a spare room or their primary home while traveling—and non-owner-occupied, investor-owned commercial properties.
• Accessible Permitting: A straightforward, online permitting process is crucial for residents seeking temporary accommodation options. This process must clearly delineate requirements, fees, and documentation for each category of operator.
• Fairness in Administration: Public support for any STR intervention is contingent upon perceived administrative fairness. By applying stricter operational requirements and oversight to high-volume operators, the county reinforces the principle that regulation targets the driver of the housing shortage, not the occasional host. Currently, Pima County’s primary requirements for STR operation center on state Transaction Privilege Tax (TPT) licensing and registration with the County Assessor’s Office, underscoring the need for a new, more robust, county-driven permitting layer should the authority be granted.

VII. Financial Measures Complementing Regulatory Efforts

Supervisors have consistently maintained that regulatory action alone cannot solve the housing shortage; it must be paired with aggressive, direct financial investment in supply creation and immediate tenant relief. The strategy involves a dual-track approach where new STR controls work in concert with existing and expanded housing assistance funds.

Leveraging Direct Financial Aid and Rental Assistance Programs

The framework for channeling housing funds must run parallel to the STR control efforts to provide immediate stabilization for residents in acute need. Pima County’s recent budget allocations demonstrate this commitment to immediate intervention.

• Gap Financing: The Board has committed $5 million in Fiscal Year 2025-26 toward the “Build More” category, which includes crucial gap financing for new rental and homeownership projects. This funding supplements private investment, helping developers finalize projects that might otherwise be unfeasible.
• Direct Assistance: A parallel investment of $3.5 million is dedicated to direct assistance, which includes $2 million allocated for rent, mortgage, and utility aid delivered through the Community Action Agency (CAA), a component of the Community & Workforce Development Department (CWD). This direct aid is intended to prevent evictions and maintain existing housing stability immediately.

The Long-Term Vision for Housing Investment and Density

The ultimate objective, thoroughly informed by the recently completed Pima County Comprehensive Housing Study, is to shift the market dynamic by creating an abundance of housing alternatives. The Housing Study was officially transmitted to the Board on August 28, 2025, with the resulting Regional Housing Strategy and Funding Plan anticipated by the end of the year to guide the next decade of investment.

• Funding Diversification: Resources, potentially derived from new STR fees or taxes enacted under the new authority, are envisioned as a dedicated revenue stream to accelerate innovative housing solutions.
• Investment Priorities: These funds will target key areas identified in the housing analysis, including the preservation and development of bridge housing, the creation of subsidized units, and incentivizing the development of higher-density, mixed-income housing projects. This approach seeks to absorb population growth without placing undue reliance on the traditional single-family detached model that has historically dominated the region’s growth. The commitment to this long-term vision is further underscored by the Board’s approval of a 10-year policy that includes at least $200 million in new funding beyond existing allocations.

VIII. Looking Ahead: The Timeline for Transformation

The process of gaining control and implementing new regulations is a multi-stage endeavor requiring sustained political focus and public engagement stretching over the next few years.

Anticipated Legislative Timeline and Advocacy Strategy

The immediate prerequisite for Pima County’s STR control measures is securing the enabling legislation from the State Legislature. This requires a focused, data-driven advocacy campaign directed toward state lawmakers in the lead-up to the 2026 session.

• Legislative Push: Advocacy efforts must capitalize on the consensus that STRs impact housing affordability, leveraging the Pima County Legislative Agenda, which was set in July 2025 for the upcoming session. The League of Arizona Cities and Towns has already signaled its intent to pursue legislation allowing municipalities to cap STR licenses for the 2026 session.
• Data Presentation: Key supervisors and the county administrator’s team will need to present compelling local data demonstrating the measurable impact of STR conversion on long-term rental availability and median rent in Pima County to overcome historical political inertia favoring deregulation.

Setting Benchmarks for Housing Stabilization

To ensure accountability for such a significant policy shift, the Board is expected to anchor its efforts to concrete, publicly accessible performance metrics. While no specific STR-related benchmarks have been publicly announced as of November 7, 2025, the county’s existing governance structures set a precedent for performance measurement.

• Success Metrics: Benchmarks will likely aim for a measurable stabilization or reduction in the median rent-to-income ratio within a defined post-implementation window, perhaps eighteen to thirty-six months.
• Performance Review: Continuous performance review is necessary to adapt the policy and maintain public confidence in this dramatic shift of local regulatory oversight. Existing federal funding programs, like the Emergency Solutions Grant (ESG), already operate with annual performance benchmarks established in partnership with the City of Tucson.

Sustaining Community Dialogue Through Open Forums

The legitimacy of intervening in the private rental market requires a commitment to ongoing, transparent civic engagement that extends well beyond the initial legislative vote or policy adoption.

• Regular Reporting: Establishing regular public forums—perhaps quarterly review sessions—specifically dedicated to reporting on key housing market metrics, the progress of the Regional Housing Strategy, and STR compliance rates will be essential.
• Adaptive Governance: These forums will serve as necessary mechanisms to adapt the policy to evolving market conditions, manage the inevitable friction between competing stakeholder interests—including tourism operators, long-term residents, and housing advocates—and ensure the intervention remains rooted in fundamental community needs. This sustained civic attention is paramount to navigating this complex regulatory transformation.