City's study on South Lake Tahoe vacation home rentals released

The much anticipated socio-economic study of the impact vacation home rentals (VHR) have on South Lake Tahoe has been released.

Michael Baker International was hired by the City to complete the study and create the report to identify emerging impacts of a growing industry, particularly impacts that may be directly affecting residents and persons who work in the city. They teamed with California State University, Sacramento on the project.

The City will use the information contained in the 152-page report in creating policy that seeks to balance the positive and negative aspects of the rapid growth in the VHR market.

“We are very thankful to the consultant team for their diligence, thoroughness and we are looking forward to reviewing the information contained in the report along with the community,” said City of South Lake Tahoe City Manager Nancy Kerry.

"Phasing out VHR permits and prohibiting their operation will have significant community impacts," according to page 99 (Regulation Monitoring) of the report. "It is very likely that some of the units currently operating as VHRs will reenter the housing market and become available for long-term occupancy. However, a significant number of units will revert to second or seasonal homes and spend much of the year vacant. Housing prices will stall or lower slightly, and some units currently used as VHRs may become available for long-term rentals."

"The most dramatic impacts that phasing out VHRs in the city will have is the significant loss of TOT (Tourist Occupancy Tax), and a shrinking of the city’s tourist economy," the report stated. "It may increase available housing, but will likely also reduce employment opportunities and household incomes."

To read the complete Vacation Home Rental Socioeconomic Impact report: http://www.cityofslt.us/vhr

The SLT City Council will hold a special workshop and public meeting on Tuesday, June 13th at 9:00 a.m. at which time the consulting team will make a presentation to the City Council summarizing the report and policies they suggest for City Council and public consideration. The meeting will be held in the City Council Chambers located at 1901 Airport Road and the public is encouraged to attend.