The beautiful town of Truckee has taken an innovative approach to address housing challenges faced by its local workforce. With a vast number of properties dedicated to short-term rentals or not being rented at all, the local community was at a disadvantage. But, the tables are turning with the inception of the “Lease to Locals” program by the Town of Truckee. Let’s delve into the specifics of this program and understand its implications.
Lease to Locals: An Overview
The main essence of the Lease to Locals program is to motivate property owners to repurpose their properties from short-term rentals or non-rentals to longer lease arrangements, ranging from 5 to 12 months or more, specifically for tenants employed locally.
Eligibility and Working of the Program:
Property Location and Status: For a property to be eligible, it must be located within the town limits of Truckee and should not have been utilized for long-term rentals in the past year. Long-term here signifies having tenants who used the property as their primary dwelling, even if the lease was month-to-month.
Tenant Qualification: Every tenant should be employed for a minimum of 20 hours weekly with an employer situated within the region. The average income of the tenant must not exceed 150% of the Area Median Income (AMI), which amounts to $118,125. The guidelines provided by Truckee Lease to Locals offers a detailed perspective on tenant qualification and necessary documentation.
Lease Formalities: Property owners are expected to sign either a seasonal lease (lasting 5 months or more) or a long-term lease (12 months or longer) with eligible tenants. The upper limit for the rent is capped at $3,500 per month, and renting to immediate family members is restricted.
Application Process: After meeting the criteria, property owners are required to complete a comprehensive application provided by Placemate. Once approved, the incentives will be split into two equal payments: one at the lease’s commencement and the other at its conclusion, with each payment made within 60 days.
Compliance and Checks: Periodic checks will be conducted during the lease’s tenure to ensure compliance. Non-compliance may lead to disqualification from subsequent incentive payments.
Incentives Breakdown:
Based on the lease’s duration and the number of qualifying tenants, the incentives are distributed as follows:
- Seasonal Lease (5-11 months)
- 1 Tenant: $2,000
- 2 Tenants: $4,000
- 3 Tenants: $6,000
- 4 Tenants: $8,000
- Long-term Lease (12+ months)
- 1 Tenant: $4,500
- 2 Tenants: $9,000
- 3 Tenants: $13,500
- 4 Tenants: $18,000
A qualifying tenant is recognized as an adult working within the locale, with earnings below 150% of AMI. Children are considered additional qualifying tenants.
Examples:
- Two locally employed unrelated adults each with an income of $60k are qualified.
- A single locally employed adult with an annual income of $130k is not qualified.
Source of Funding:
The Town of Truckee fuels this initiative with taxpayer contributions through the General Fund. These grants, provided to homeowners, are disbursed in two stages – during the lease’s initiation and upon its completion, typically within a month of each phase.
The Lease to Locals Grant in Truckee is a testament to their commitment to its local workforce. It’s a commendable endeavor, not just to tackle the housing issue but also to strengthen the sense of community. As more property owners join this movement, Truckee inches closer to a future where every local employee has a place to call home.
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