Vacation paradise will pay millionaire homeowners to give up houses for a year

South Lake Tahoe millionaires are being offered cash incentives to give up their second homes in the vacation oasis for a year in order to increase affordable housing for local workers, but there’s a catch.The offer is part of the Long-Term Rental Incentive Program (LTR) in the city of South Lake Tahoe.In return for millionaires giving up their second homes for a year, the city will give wealthy property owners $4,500 for those who agree to a 12 month lease.

Homeowners will get $2,000 if they hand over their second home for just six-months.“The goal of the program is to increase the supply of long-term rental housing available for moderate and low-income households,” by offering cash to owners who are willing to convert their spare rooms, vacation homes, or second homes into rentals for six months or up to a year, per the city. The offer isn’t just for anybody and there’s some strict guidelines on the second property which must be in the City of South Lake Tahoe to be eligible.There are several necessary qualifications: • Must be a legally permitted unit and meet health & safety standards.• Eligible properties include single-family homes, townhomes, condos, or vacant rooms in owner-occupied homes.• Must sign a 6- or 12-month lease with qualified tenants.The biggest catch is that the city decides how much property owners can charge, with rent set at no more than $3,500 for units with 1 bedroom or more.The city also said the home also can’t have been a long-term rental within the last 18 months. Tenants can qualify if their average household income is “no more than 125% AMI ($79,688 for an individual in El Dorado County, 2021 standard).”The city also only wants to rent these homes to working adults, with at least 50% of the home occupied by adult tenants, who work in the South Shore area at least 20 hours or more a week. There’s a severe housing crisis in the city, with the affordable housing waitlist having grown dramatically in South ...