The San Antonio Board of Adjustment voted 9–2 to grant a special exception allowing one additional Type II short‑term rental unit at 1120 East Commerce Street (Unit 202), a three‑unit building in the Downtown (D) zoning district. Staff had recommended denial.

Joseph Lejos, senior planner with Development Services, told the board the property already had one active Type II permit (Unit 201) and that adding Unit 202 would push the block‑face density from 33% to 66%, exceeding the code’s 12.5% density limit for Type II short‑term rentals. Lejos also noted a prior Type I permit for Unit 202 was revoked after an internal audit found a homestead exemption elsewhere.

Applicant Sandra Serrano described a multi‑year history of permitting and county homestead paperwork. “We thought we’re in compliance this whole time,” Serrano said, recounting that staff initially helped them apply and that delays at another county appraisal office complicated claiming residency. Serrano said her family owns and restored the late‑19th‑century building and operates two short‑term units while living in the third unit.

Commissioner Benavides moved to grant the special exception, reading findings of fact that the board must consider, including that the request would not materially endanger public health or safety, would not create a public nuisance, and would not alter the essential character of the district. After discussion about homestead exemptions and whether the owners could instead pursue Type I permits, the motion passed 9–2.

Staff had mailed 21 notices for the item; planners recorded one in‑favor response and no responses within the 200‑foot boundary, plus an out‑of‑area neighborhood association comment opposed to adding STRs generally. The board heard multiple voice mails and testimony in support from nearby property owners and business operators who said the units bring visitors to the area.

The board’s approval authorizes Operation of an additional Type II permit for Unit 202 under a special exception. Staff reminded the applicant that other administrative steps (hot‑tax compliance, homestead documentation, and permit renewals) remain the applicant’s responsibility.

Why it matters: Short‑term rental density limits are intended to preserve housing stock and neighborhood character in residential blocks; the board’s decision hinges on local site conditions (the building is the only residential property on the block face) and the owner’s testimony about permitting history.