New South Lake Tahoe VHR ordinance goes into effect October 1

A new vacation home rental (VHR) ordinance will take effect in South Lake Tahoe on October 1, 2015.

The new ordinance will require all homeowners who want to rent out their homes to get it inspected by the Zoning Administrator prior to being issued a license. Since the real estate community told City Council that not having a permit prior to escrow may cause homeowners to lose sales, the current homeowner may now get it inspected prior to the sale in order to take as much uncertainty away from sales as possible. This inspection will be valid for one year.

“There are still many questions about this new vacation rental permit process and how it will affect the economy, tourism, property owners and the community," Natalie Yanish, Immediate Past President & VHR Task Force Chair South Tahoe Association of REALTORS® told South Tahoe Now. "Why would the Council commission a socio-economic study and not wait for the data prior to implementing even more restrictive regulations on top of the changes adopted in April to tighten and clarify the VHR nuisance ordinances for noise, parking and trash?”

Yanish was referring to a upcoming study about how vacation rentals affect the community.

As has been the norm whenever the subject of VHRs comes up, it appears to the bystander that it's the real estate and vacation home management companies against the City Council. Even though the crowd was smaller and less vocal that in the previous half dozen meetings on the subject, their passion still ran high.

"We weren't going to come to this meeting today because you haven't listened to a anything we had to say before," Jim Morris, owner of Lake Tahoe Accommodations said to the Council.

The South Lake Tahoe City Council has stated several times over the last several meetings about VHRs that they wouldn't be bringing the subject up if there weren't any problems.

"Why we're here," said Mayor Hal Cole, "is due to the abuse of the industry."

"Vacation homes are an industry and we have homes being built to soley e a vacation rental," Cole continued. "There is a character change when you put a motel next to a home."

Cole was referring to the recent building of homes with 10 or more bedrooms alongside single family homes.

This spring there was an updated ordinance that called for a penalty based renewal fee structure (fees would be doubled if the homeowner had three violations of the VHR policy), added noise restrictions after 10 p.m., and the separation of the VHRs in areas where there are Tourist Accommodation Units.

“Everyone asked for better enforcement of the rules and that’s what clearly has been lacking," said Yanish. "New rules and processes are unnecessary and could have really damaging effects on our town. The majority of people speaking at City Council meetings think this is a bad idea.”

Also included in the new ordinance is a requirement for all neighbors within 300 feet of a proposed vacation home to be notified about the change in use of the home from a single family residence to a vacation rental. A letter to these owners will go out within ten days of a permit request. If anyone objects to the permit a hearing will be scheduled.

A new Zoning Administrator will be responsible for inspecting homes to ensure they meet safety standards such as the correct number of carbon dioxide and smoke detectors, no unpermitted bathrooms or bedrooms, emergency lighting systems (as simple as a plug-in system), and have only one cooking area per residence (besides barbecues).

Parking will need to be legal and maintained and garbage kept off the streets until the scheduled pick up date under the ordinance as well.

For all homes permitted by August 1, 2015, they will need to get an inspection at their next renewal but will not have to go through any additional renewal procedures unless the house has sold, the homeowner has received two or more violations of the VHR ordinance, has not rented out the home in two years or has not physically altered the home since the original permit was issued.

The fee scheduled was altered after complaints about the stiff fees for scheduling a hearing should one be requested. There will be a $545 fee charged for processing of new VHR permits up to, and including, a Zoning Administrator hearing should one be required. If a resident living within 300 feet of the home wants to protest the home zoning change, they will be required to pay a $250 fee. Those not living that close that want to protest will need to pay a $1,500 appellant fee to cover the City's costs.