The South Tahoe Public Utility District (STPUD) Board of Directors changed their administrative code in September 2018 to allow for the transfer of sewer and water units from one parcel to another in order to encourage the building of affordable housing projects. In addition, they reduced the sewer hook-up fees by reducing the rate from $2700 to $100 as long as the sewer fees are dedicated to affordable and workforce housing projects (up to 120% of Area Median Income.) The $100 fee will cover administrative costs at the district associated with the transfers.
The significance of this cannot be understated – this is a potential game-changer for housing projects in the South Shore. One motel owner who was wanted to convert 10 motel rooms into affordable rental studio units previously was unable to afford the $27,000 to add small oven ranges to the rooms. Now that he would only have to pay the $100 administrative fee per oven, his cost is $1,000 instead for the ten units. This savings of $26,000 is not only an incentive to convert, it allowed him to invest in each of the units to make them more desirable for renters.
On a larger scale workforce housing project, one of the Tahoe Prosperity Center pro-formas showed a savings of $123,000 on a 45-unit project. That savings, along with other cost saving policy changes the Tahoe Regional Planning Agency and Tahoe Prosperity Center are promoting, can make the difference for developers looking to build workforce housing in South Lake Tahoe.
Learn more about South Lake Tahoe’s Housing Tahoe.