Bulletin - Fountain Hills, AZ News Today
Ordinance 26-14 limits permits to one per address, drops the neighbor notice rule and sets suspensions at three to 12 months for serious or repeat violations
Fountain Hills Adds Permit Suspension Hearings and Guest Fines to Short-Term Rental Ordinance
Ordinance 26-14 limits permits to one per address, drops the neighbor notice rule and sets suspensions at three to 12 months for serious or repeat violations
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Watch on Youtube: https://youtu.be/Sbwb8kMakDg?t=7827
The Fountain Hills Town Council unanimously approved amendments to its short-term rental ordinance that create a formal hearing process for permit suspensions, restrict permits to one per address and extend civil penalties to rental guests. Ordinance 26-14 was on the council’s October 6 agenda and takes effect 30 days after adoption.
Four Years of Implementation Behind the Changes
Development Services Director John Wesley said staff spent the past year on the amendments after nearly four years of administering Ordinance 22-09 which the council adopted in November 2022 once the legislature expanded local authority over short-term rentals. After reviewing other Arizona ordinances and the state statute that governs local STR rules, staff identified the lack of a clear suspension process as the main gap.
A Formal Path to Suspension
The town can still suspend a permit after three verified violations within 12 months excluding aesthetic, trash and parking violations that pose no serious safety threat, or after a single verified violation involving a felony, serious injury, housing a sex offender or an unpermitted special event.
Fountain Hills’ October 6, 2026 staff report outlining proposed short-term rental ordinance amendments including permit requirements, neighbor notifications, enforcement procedures, and suspension rules. | Source: https://fountainhillsaz.portal.civicclerk.com/
The amendment also defines a verified violation as a finding that has been finally adjudicated. The town must serve written notice on the owner and the owner’s designee who have 15 calendar days to request a hearing and the hearing officer then issues a written decision within 30 days and sets a suspension of three to 12 months. An owner who fails to appear loses by default and an appeal to the Town Manager does not pause the suspension.
Permit and Penalty Changes for Owners and Guests
Permits will be issued only to property owners and limited to one per address and a property manager applying for an owner needs the owner’s written certification of authority. Renewals are processed as new applications and an owner whose permit is denied or suspended cannot reapply for the same property for one year. The town also dropped the requirement that owners send written notice to neighbors which staff said was difficult to verify and will instead post rental locations and emergency contacts online through its software vendor.
Fountain Hills’ official short-term rental portal for permit applications, registration, and compliance with local rental regulations.
Guests are now covered by the civil penalty schedule so anyone who pays for a stay, sleeps there overnight or is present after 10 p.m. can be fined up to $500 or one night’s rent for a first violation, rising to $3,500 or three nights’ rent for a third, whichever is greater. Owners may no longer advertise a rental for weddings or other special events, and an accessory dwelling unit that received its certificate of occupancy on or after September 14, 2024 can operate as a short-term rental only if the owner lives in the main house.
⦾ Ordinance: 26-14, amending Town Code Article 8-6 (Short-Term Rentals and Vacation Rentals)
⦾ Effective date: 30 days after adoption
⦾ Permit required: Yes, renewed annually, issued only to the owner and limited to one per address through the town’s online permitting portal
⦾ Permit fee: $250 per year, set by resolution and not changed by this ordinance
⦾ Other prerequisites: Arizona transaction privilege tax license, Maricopa County Assessor rental registration before advertising, and $500,000 in liability insurance held by the owner or the listing marketplace
⦾ Night cap: None
⦾ Suspension: Three to 12 months, decided by a hearing officer; no reapplication at the same property for one year
⦾ Penalties: Up to $500, $1,000 and $3,500 (or one, two and three nights’ rent, whichever is greater) for first, second and third violations within 12 months, applying to owners, designees and guests; up to $1,000 per month for operating without a permit after notice
⦾ Platform responsibility: Partial; online lodging marketplaces may provide the required insurance and guest background checks but the owner remains liable
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