Industry News
[South Lake Tahoe, Calif.] February 28, 2024 – Speaking in response to the coordinated efforts of special interest groups who oppose any new funding sources for affordable housing, a clear majority of the public (23-17) spoke in favor of the Vacancy Tax initiative, and the need for additional funding for affordable housing during Public Communications at Tuesday evening’s City Council meeting.
23 local residents spoke in person and via Zoom during Public Communications, telling personal stories of housing struggles and the urgent need to fund affordable housing solutions in the community. Some commenters told emotional stories of their own housing challenges, while others spoke to underlying economic principles and the need to shift incentives to stem the increasing loss of local housing to second-home ownership. 17 commenters spoke on other topics or in direct opposition, some denying the existence of a housing crisis in Tahoe.
“I have always been taught that hard work pays off, but when I look around our community – some of the hardest working people are really struggling to get their basic needs met, like housing”, said one Midtown resident. “The status quo simply is not working. We have been hammering for a long time and it is time to try a screwdriver.”
“I believe in self-determination,” he continued. “I believe in our community’s freedom to choose our future with a ballot measure. Those who care about democracy should sign the petition so that every community member has the opportunity to vote on the vacancy tax.”
Advocates cite that if only 20% of the 7,150 vacant homeowners in South Lake Tahoe shift to rent or sell to residents, it will add over 1,400 new homes for the local community – more than have been built in the last ten years – while simultaneously generating over $34 million per year. As a dedicated use tax, these funds can be used ONLY for local housing, road infrastructure, and transit – South Lake Tahoe’s most critical needs.
“We have a housing problem, and to fix it requires both a local funding source and a shift in incentives to stop the increasing percentage of vacant second homes from displacing the local workforce,” said Amelia Richmond, local South Lake Tahoe Resident and president of Locals for Affordable Housing.
Despite overwhelming support for additional funding for affordable housing at the meeting and 70% survey approval, City Council voted 4-1 on Tuesday evening to end efforts to create a ballot measure to raise the Transient Occupancy Tax (TOT) by two percent.
“Last year the City decided not to move forward with a vacancy tax as their affordable housing solution because they said a TOT increase would be more straightforward – but on Tuesday they voted down the hotel tax, deciding on no solutions after all,” said Sierra Tract resident Nick Speal. “That leaves the citizen’s ballot initiative as the only option remaining.”
The vacancy tax is a citizen’s ballot initiative currently circulating to gather the 1500 signatures needed to get on the ballot in November. Those interested in learning more or getting involved can visit www.TahoeVacancyTax.com.
