City Council approves several items concerning housing in South Lake Tahoe

SOUTH LAKE TAHOE, Calif. - City Council approved a few items during its meeting on Tuesday that have to do with addressing the current housing situation in South Lake Tahoe.

They approved a Long-Term Rental Incentive Grant Pilot Program that will connect owners of unused home to local employees seeking housing. The core of the program centers around providing a one-time cash grant to encourage property owners to convert homes and vacant rooms into long-term rentals. The funds being used for the incentives come from an allocation from the American Rescue Plan Act (ARPA).

Landing Locals, a Truckee-based program, was approved to administer some of the program. For their efforts they will be paid $72,000 for one year ($6,000 a month) of the pilot program. They manage similar programs Summit County, Colorado and working on getting into Big Sky,

With a large number of homes vacant for much of the year in South Lake Tahoe, and with the percentage of those homes no longer in the vacation-home-rental program, the new program will allow homeowners to earn income on their second homes. This also helps local employees find much-needed housing.

Council approved $286,000 for the first phase of the program. Besides the fee for Landing Locals, $14,000 will go to marketing and outreach for the program, and $200,000 for grants. The balance of the $500,000 in ARPA funds allotted for future housing programs in the city.

This is a one-year professional services agreement with Landing Locals. In Truckee is took a few months to gain steam.

Homeowners will have to sign a one-year lease with a renter and will be paid $2,000 per person of the family in the home, up to $10,000. They would get paid part of the money at the beginning of the lease and the balance at the end of a one-year lease.

The idea behind the program is to focus on housing stability with long-term rentals. The City already has an SRO (single room occupancy) program with 600 short-term rentals. Those are motels converted to rentals with a focus on 90-day rentals.

Colin Frolich, co-founder of Landing Locals, said the South Lake Tahoe program is structured after needs on the South Shore and not exactly the same as in Truckee. Since they started in November 2020 in Truckee, 67 tenants have been placed, 37 grants have been given with another 20 expected by the end of 2021.

Frolich said they hope the one-year leases will kickstart a homeowner to commit to longer periods, and on the other end, local workforce committing to longer than a one-year lease. The 12 months they decided on strikes a balance between those wanting shorter and longer terms.

New construction of housing units is important in South Lake Tahoe and new projects are on the horizon, but the final product is not for another couple of years. The proposed incentive program can give immediate relief to some locals.

Council approved 5-0.

City Council also passed a resolution authorizing submission of the 2019
HOME investment partnerships program application to the California Department of Housing and Community Development in the amount of $627,626 for the Sugar Pine Village project. This is a 248-unit affordable housing project, with onsite community service facilities on 11.6 acres of land at the Y.

They also heard an update on accessory dwelling units (ADUs) tiny homes, and structures on wheels (outside of a mobile home) in the city limits. During its March 2, 2021 meeting, the City Council adopted an ADU Ordinance, providing standards for the development of ADUs on single- and multi-family properties throughout the City. The planning department asked Council for guidance on a new ordinance based on issues they have been working on. A mix of housing options for local residents is desirable, and many want the moveable tiny homes. Mayor Tamara Wallace said the City needs to fight for what they need in an ordinance and tell the regulatory agencies that it needs to be done. Housing solutions for those with only small square footage needs will continue to be evaluated.

The Council also approved a contract with the Tahoe Prosperity Center to assist with economic development and housing priorities. The non-profit will receive up to $70,000 per year for three years to compile the data and produce the reports necessary for the City to develop a plan of action to address strategic priorities.