Vacation home rental ordinances around Lake Tahoe being evaluated

SOUTH LAKE TAHOE, Calif. - With Washoe County and Douglas County making big moves this week concerning the regulation of vacation home rentals (VHRs), it may be time to take a look at the current situation of the popular lodging options around Lake Tahoe.

VHRs in the South Lake Tahoe city limits will be banned after 2021 except for those in the Tourist Core area. There will be no permits renewed in 2021, so a homeowner's permit expires this year. The voter initiated measure to ban VHRs, Measure T, passed by a slim margin in 2018. Permanent residents can get a permit to rent their homes out up to 30 days per year as a vacation rental.

Jurisdictions have been working on ordinances that strike a balance between the economy, private property rights, and the impacts to neighborhoods.

Washoe County

On Tuesday, February 23, the Washoe County Commissioners had the first reading of much-anticipated ordinances for VHRs (called STRs in the county - short term rentals). With an increase in their use, the County found the need for ordinances regulating them. The County estimates there are 500 to 1,200 STRs in unincorporated Washoe County, a number that varies by season and the vast majority (90 percent) of which are in Incline Village/Crystal Bay. Only 180 are registered and pay tourist-occupancy-tax (TOT).

Beginning in February 2019 with public comment, surveys, workshops, meetings, and small-group input, Washoe County determined that the top issues concerning residents are parking, trash, noise, and occupancy limits, the same issues communities around the lake experience. The County hired Host Compliance to get data on the units being rented at Lake Tahoe. They found 898 STRs with 30 of those added in the last month.

The new ordinance will create specific requirements to mitigate the issues of concern, as well as to create an enforcement process. Highlights of the ordinances include no parties or events including weddings, quiet hours from 10:00 p.m. to 7:00 a.m., one parking space per four occupants and no on-street parking, and use of wildlife-resistant trash containers. One person for 200 square feet of a home's living space is also in the ordinance.

A second reading on the proposed ordinance is planned for March 23, 2021, with a three-month grace people for homeowners to get permits and full launch and enforcement of program on August 1. Read full ordinance here.

Douglas County

On February 18, 2021, the Douglas County Board of County Commissioners took action to temporarily suspend the issuance of new VHR permits effective February 18, 2021. The suspension will remain in place until the Board approves a new ordinance intended to address ongoing issues concerning public health, safety and welfare in relation to the operation of VHRs in the County.

The Douglas County Manager’s Office said they are dedicated to making the issues surrounding VHRs a priority and will work with the Chairman of the Board to appropriately place future items on the agenda for consideration by the Board until such time as the necessary changes to the program can be enacted.

The pause on new permits will last until new regulations are approved by the Board. There are currently 600 permits issued in the county. There are some permits that have issues identified (taxes dues, inspections due to be processed) that could possibly lose their permit. In that case, there will be around 558 current permits.

They too have Host Compliance to assist the Community Development department in the regulation of VHRs.

Vacation Home Rentals are only allowed in the Tahoe Township area of Douglas County with a permit.

Even though new permits will not be issued, all other aspects of the program are still in place. Existing permit holders may continue to renew their permits pursuant to Section 20.622.080 of the Douglas County Code. Instructions regarding the process can be viewed here.

El Dorado County

El Dorado County is looking at revamping its new VHR ordinance after they added a cap of 900 permits on December 3 (see story). At that time they asked staff to come back with plans for reducing any clustering of permitted VHRs.

The Board of Supervisors heard a presentation two weeks ago and asked for some more data. They want to hear additional analysis including estimated costs to implement and economic impacts with 300-foot buffer around VHRs, 1000-foot buffer on large VHRs (five bedroom or larger) and 500-foot buffers when no other large homes are around.

The buffer line would start being measured at the boundary of the property on all sides.

Since there are already permitted VHRs within proposed buffer lines those would be grandfathered in until the property sells or the homeowner loses their permit. If it were a blank slate with no previously approved VHRs boundary lines would be easy to determine.

Staff goes back to the Board on April 6.

Placer County

Placer County STR program is revising the permit application and renewal process; while this has caused some delay in renewing existing permits, all existing permits are considered valid while they update the process, regardless of the expiration date.

At issue in Placer County are the same concerns as neighboring communities - balancing the rights of homeowners with those of impacted neighborhoods.