Workforce housing incentives and code changes at Lake Tahoe topic of TRPA board hearing

LAKE TAHOE, Calif./Nev. - Breaking down barriers to building affordable housing at Lake Tahoe has been the focus of two years of public hearings, workshops, and presentations by Tahoe Regional Planning Agency (TRPA) staff.

On Wednesday, they will be bringing forward proposed changes to policies in the Lake Tahoe Regional Plan that have become barriers to deed-restricted affordable and workforce housing.

The proposed changes to land coverage, height, and units per acre in the new plan amendments only apply to deed-restricted affordable/workforce housing projects. The amendments aim to shift some of the demand for residential units away from luxury condos and large homes in remote neighborhoods to smaller-scale multi-family projects in more walkable areas, closer to centers and services.

The TRPA plan continues to limit growth and there are about 3,500 building allocations left for the whole Lake Tahoe basin's lifetime allotment of 51,430 residential units. More units will not be added to the amount of growth allowed, but the proposal is meant to encourage the remaining units to be built smaller, more affordable, and close to transit, town centers, and services.

Every two years, jurisdictions receive a certain number of residential units from TRPA based on a formula that takes short-term rental policies, Total Maximum Daily Load (TMDL) implementation, and residential audits into consideration. In 2021, the City of South Lake Tahoe received 66 allocations out of the total 232 issued by TRPA for use through 2023.

During the review and input process, policies have been chiseled away and refined to support private investment in workforce housing, a hot topic in communities around the lake. It is evident there is no "one size fits all" solution, but the proposed policy changes are meant to address all concerns for widespread solutions.

The proposed policies would improve water quality infrastructure, transportation, and roadway safety while providing safe, secure housing for more local workers. It doesn't help that workers are traveling into the basin from more affordable housing areas, added vehicle miles traveled.

Proposed policy changes in Town Centers - Remove maximum density standards to encourage development with smaller, more affordable units. This does not mean that larger units cannot be built, but rather leaves that choice to the developer. Region-wide residential growth limits remain in place. It would allow nine feet of additional height under certain conditions like not impacting scenic. It would remove one-size-fits-all parking requirements.

Projects would have to be consistent with scenic requirements, minimize obstruction of existing views, not cause a building to extend above the forest canopy or a ridgeline, and ensure the building is consistent with surrounding uses. Projects are subject to the discretionary processes
already established in each jurisdiction.

The TRPA board meeting where the housing policy changes will be discussed, and voted on, is on Wednesday, Dec. 13. While the day-long meeting schedule starts at 8:30 a.m., the governing board session starts no earlier than 12:30 p.m. It will be held at the TRPA offices on Market Street up Kingsbury Grade and can be viewed online (information here).

If approved, changes to the TRPA Code will go into effect 60 days after adoption. Some jurisdictions use their own development standards for centers and areas zoned for multi-family, while others refer to the TRPA Code.

Where the area plans defer to the TRPA Code, the changes will be effective 60 days after the Governing Board's approval. For standards that are set in area plans, and inconsistent following the Governing Board adoption of these amendments, the local jurisdiction will have one year to amend their area plan to demonstrate conformity with TRPA standards or make alternative amendments. If inconsistent standards have not been amended in the area plan within one year, TRPA can assume lead agency authority to amend the applicable policies and provisions.

In Meyers, the Area Plan defers to the TRPA code for coverage but sets its own standard for height and density in the town centers. So, the coverage incentives would go into effect in 60 days, but not height and density. Also, in order to take advantage of the coverage incentives in town centers, the projects have to tie into an area-wide stormwater treatment system.

There is a proposed area-wide in Meyers, but it is not constructed yet and hasn’t even started the planning process yet. So, in reality, it would be some time before any project could take advantage of the coverage incentives in Meyers. But, this proposal lays the groundwork for incentivizing local jurisdictions to complete area-wides so that they can get more affordable and workforce housing, according to Karen Fink, the TRPA Housing and Community Revitalization Program Manager.

Local jurisdictions can set alternative height, density, and parking standards from what is proposed in Phase 2 through an area plan amendment. However, TRPA will require that any changes to the standards holistically consider the financial impact the alternatives have on building deed-restricted housing in their jurisdiction, said Fink.

"If the jurisdiction is reducing density or height standards, or increasing parking requirements, they will need to show reasonable alternative strategies that either reduce the cost to build or provide subsidies to deed-restricted units," said Fink. "These alternatives can include but are not limited to, an approved inclusionary housing ordinance, zoning additional areas for multi-family, providing donated land or other public subsidies, and/or installation of area-wide stormwater systems in preferred affordable and workforce housing areas."