City of South Lake Tahoe and owners group reach agreement on Measure T lawsuit

SOUTH LAKE TAHOE, Calif. - The City and the South Lake Tahoe Property Owner's Group have reached an agreement on the enforcement of Measure T, a voter-initiated ballot measure to remove over 1,300 vacation home rentals from neighborhoods by the year 2021.

There were two major portions of the measure though that were to go into effect immediately, a change to occupancy rates and a halt to the issuing of new permits for the vacation accommodations made popular by websites like Airbnb.

On December 18, 2018, the group filed a lawsuit against the City of South Lake Tahoe in an attempt to stop the enforcement of Measure T, mainly the new occupancy rates during the holidays as the change was catching many by surprise.

The old rules allowed two people per bedroom plus four, the new rules call for two per bedroom with a maximum of 12.

Then on December 24 a judge in El Dorado Superior Court granted a temporary restraining order on the occupancy limit change.

Both sides were to meet again in court on January 31 for a preliminary injunction but the lawyer for the plaintiffs, Andrew Pierce of Pierce & Shearer, LLP, said that is off the docket because both sides have reached an agreement until the Court can hear the case on merit.

Both the City of South Lake Tahoe and the Lake Tahoe Property Owners Group, have agreed to delay the implementation of the new maximum occupancy limits included in Measure T while the case is pending, but all other provisions of Measure T remain in effect. The most significant Measure T provisions prohibit the issuance of new vacation home rental (VHR) permits in residential areas and phase out existing VHR permits in residential neighborhoods in 2021.

There will be more legal action coming from Pierce for the group he represents.

"We will make a motion to the Court to ask to enter judgment in our favor in the Spring," said Pierce.

He said this type of case is usually decided without a trial. During the election season, many on the opposing side of Measure T said it wouldn't hold up in a court of law if passed due to vague language and unenforceable portions.

"We're doing everything we can so people don't stop coming to South Lake Tahoe," said Pierce. "Our goal is to reverse Measure T in its whole."

In December, The City agreed to the limited preliminary injunction in recognition of the fact that many travel and lodging reservations were made under the City’s previous VHR maximum occupancy limits. The immediate implementation of the new maximum occupancy limits would have harmed upcoming visitors, and would also have been difficult for the City to enforce in a fair and effective manner.

"Importantly, the City respects the will of the Measure T voters and did not agree to a preliminary injunction on the other Measure T provisions that do not create significant immediate hardship," said the City of South Lake Tahoe Communication Manager Chris Fiore.