– The program offers $4,500 per qualifying tenant with a 12-month lease, or $2,000 per qualifying tenant with a 6-month lease
– It was announced in January 2022 as a pilot program called “Lease to Locals”
– As of September 2025, it was transitioned from administration by Placemate (formerly Landing Locals) to direct city administration
– The “catch” involves multiple restrictions: rent caps on units, tenants must earn less than 125% of area median income ($79,688), properties must be underutilized, and leases must be new (not older than 30 days)
– The program was recently re-announced on September 13
The City of South Lake Tahoe is encouraging area real estate owners to participate in its Long-Term Rental Incentive Program by renting an extra room, vacation home, or second home, according to the city’s Facebook post telling owners to “Turn it into a long-term rental and earn cash incentives while helping our community.”
Qualifying property owners can receive $4,500 per qualifying tenant who signs a 12-month lease, or $2,000 per qualifying tenant who signs a six-month lease.
The program is designed to encourage owners of underutilized housing units to offer long-term rentals while increasing the supply of housing for moderate- and low-income households.
The city said the program helps create more affordable housing options for local employees and families.
But there’s a major catch baked into the fine print.
The program serves households earning no more than 125% of the Area Median Income, which the city lists as $79,688 for an individual.
That income ceiling means homeowners are locked into renting only to teachers, healthcare workers, ski instructors, and service-industry employees—the workers actually keeping Lake Tahoe functioning.
To ensure affordability, there is a cap on the monthly rent that property owners can charge, which varies based on the size of the unit.
The unit must not currently have a long-term tenant, and eligible properties include single-family homes, townhomes, privately-owned condos or vacant rooms in owner-occupied properties.
Multifamily rental properties are not eligible for the program.
The lease cannot be older than 30 days to qualify.
Property owners will need to sign a lease with qualifying tenants, and undergo lease checks to ensure they are in compliance.
While the cash sweetens the deal, the strings attached mean vacation home owners can’t simply pocket the incentives.
Units 1 bedroom or greater in size must be priced at or below the maximum rental rate, though rooms or studios do not have a maximum rental rate.
Roughly two-thirds of the housing inventory in North Lake Tahoe are utilized as second homes or vacation rentals, limiting local residents’ access to much-needed long-term rental housing.
Many of Eastern Placer’s employers rely on seasonal employees who face a shortage of affordable rental options and are often forced to live far from work or in overcrowded situations.
City Manager Joe Irvin stated in January 2022, “the housing crisis in South Lake Tahoe is at a critical juncture.
Program advocate noted that “South Lake Tahoe is predominantly second homes that sit empty most of the year,” and hoped the program would incentivize property owners to change their minds.
The program was initially administered by Landing Locals, a Truckee, Calif.-based startup specializing in mountain-community workforce housing.
As of September 12th, Placemate stopped administering the Lease to Locals program for the City of South Lake Tahoe, and the city began continuing the program internally as the SLT Long Term Rental Incentive Program.
The city will issue grant payments to property owners as follows: 50% of total grant within 30-days of the start of the lease and 50% at successful completion of the lease term.
The target population served are households that average no more than 125% of the Area Median Income which is $79,688 for an individual per standards set by the California Department of Housing and Community Development for El Dorado County.
For each tenant or child placed into a rental, property owners can earn up to $2,000 with a maximum grant of $10,000 per property.
More information about eligibility requirements, application instructions, and the Long-Term Rental Incentive Program is available on the city’s website.