City of South Lake Tahoe provides cash incentives program to homeowners

by | Aug 4, 2026 | Uncategorized

The city of South Lake Tahoe will offer cash incentives to homeowners who utilize their extra housing units.
Victoria Mastrocola / Tahoe Daily Tribune

SOUTH LAKE TAHOE, Calif. – The city of South Lake Tahoe’s Long-Term Rental Incentive Program is offering cash incentives to homeowners who convert their underutilized housing units into six-month or 12-month rentals. 

The concept was first approved and launched in 2021 as a pilot program in partnership with Landing Locals, known then as the Lease to Locals Program. During a city council meeting in August of 2025, Council directed staff to bring the program in-house, renaming it Long-Term Rental Incentive Program (LTR).

“This program allows the owners to unlock their underutilized or vacant homes to local workers. Owners have a monthly income by renting their homes and reducing turnover costs,” said Jessica Wackenhut Lomeli, Housing Manager for the City of South Lake Tahoe.

The total allocated amount for both LTR’s operational costs and the cash incentives is $770,000. The initial funding for the program was provided by the federal government’s Rescue Plan Act of 2021, a $1.9 trillion economic stimulus bill signed by former President Joe Biden. Rescue Plan Act’s funding has since been expended and other funding sources consist of the city’s General Fund and designated city housing funds. 

Wackenhut Lomeli noted that the program’s budget is closely monitored as grant applications are received and reviewed. Based on the use of the program, additional funding sources are evaluated when funding is needed, and the budget for the program must be approved by City Council.

Since its launch, LTR has assisted 66 households and housed 159 people, including children.

“This program provides two major benefits, property owners have a financial incentive to rent their properties, and some local workers have a place to live locally without the need for a long commute,” said Wackenhut Lomeli. “At this time, [LTR] is the only active program within the city that is specifically geared towards Moderate-Income residents.” 

Cash incentives include $4,500 per qualifying tenant in a 12-month lease and $2,000 per qualifying tenant in a six-month lease. 

The program defines an “underutilized housing unit” as one that isn’t occupied full-time and not currently being rented for 30 days or more, such as primary homes, short-term rentals, vacation properties and second homes. 

Requirements for property owners include:

  • Property must be in the City of South
    Lake Tahoe
  • Must be a new lease – lease must not be older than 30 days to qualify
  • Must be a legally permitted unit and meet health & safety standards
  • Cannot have been a long-term rental within the last 18 months
  • Eligible properties: single-family homes, townhomes, condos, or vacant rooms in owner-occupied homes (multifamily properties not eligible)
  • Must sign a six- or 12-month lease

Requirements for tenants:

  • Household income must average no more than 125% AMI ($79,688 for an individual in El Dorado County, 2021 standard)
  • At least 50% of adult tenants must work locally 20+ hours/week in the South Shore.
  • Must provide proof of income and photo ID

To review the program’s full definitions, guidelines and requirements, visit https://www.cityofslt.gov/2523/Long-Term-Rental-Incentive-Program-LTR.