Settlement reached in Lake Tahoe workforce housing litigation

The Tahoe Regional Planning Agency and Mountain Area Preservation reached a settlement agreement this week over a lawsuit brought by MAP against affordable housing policies approved by the TRPA Governing Board in December 2023. The litigation sought to block new land use policies in the highly protected Lake Tahoe Region that combined incentives for water quality, transportation, and workforce housing improvements, according to TRPA.

“We look forward to engaging Mountain Area Preservation in a more productive dialogue along with the full range of stakeholders,” TRPA Executive Director Julie Regan said. “We must keep the Tahoe Basin moving forward to address an affordable housing crisis that is impacting Lake Tahoe’s environment and marginalizing members of our community who deserve to live and work here. Resort communities everywhere are facing similar challenges, but we have proven over the years that environmental protection and community revitalization can go hand-in-hand.”

“We are satisfied that the settlement supports the Governing Board’s decision and shows that TRPA’s high environmental standards can be maintained while advancing more affordable and workforce housing projects,” said TRPA General Counsel John Marshall. “Across the nation, we are seeing important environmental laws being leveraged to block equitable housing policies. Fortunately, the MAP litigation was short-lived and the agency is able to apply its time and resources to the important work of modernizing land-use policies.”

TRPA has kicked off a new phase of housing policy work and seeks additional perspectives on the working group. According to the settlement agreement, MAP will be invited to join other organizations on the Tahoe Living Working Group that TRPA formed in 2020 to advise on housing policies.

“We are pleased to have reached a settlement that paves the way for more inclusive and equitable housing policies in the Lake Tahoe Basin,” TRPA Board Chair and Placer County Supervisor Cindy Gustafson said. “Moving these critical policy updates forward will help us support our region’s local workforce. The agreement underscores our commitment to addressing the housing needs of our community while preserving the natural beauty and environmental integrity of Lake Tahoe.”

Under the direction of the TRPA Governing Board, in 2020 the agency set out three phases of affordable and workforce housing policy work. The first phase approved in July 2021 encouraged more accessory dwelling units for local workers and made it easier to convert small motels to residential uses.

The Phase 2 amendments approved last December made it possible for property owners building deed-restricted affordable and workforce housing to apply for building incentives that result in appropriately designed multi-family or mixed-use buildings in certain areas, as long as they improve walkability and include water quality improvements. With the signing of the settlement agreement, those policies can move forward as originally proposed with no cloud of legal challenge, according to TRPA.

The TRPA Governing Board approved technical clarifications to the December policy updates and new policies requiring affordable housing as part of mixed-use projects at its meeting Wednesday, June 26.

Mountain Area Preservation submitted the following news release Tuesday.

Truckee, Calif. – Today, the nonprofit conservation and workforce housing organization MAP (Mountain Area Preservation) announced it has come to a legal settlement agreement with the Tahoe Regional Planning Agency (TRPA) over litigation it filed in February. The settlement ensures affordability protections for new “bonus unit” housing developments and enhanced water quality protection related to such developments. It also gives MAP a seat at the table as the next round of TRPA housing code updates are developed in the coming years.

“MAP appreciates TRPA’s willingness to make immediate improvements to the Phase 2 housing codes,” said Alexis Ollar, executive director of MAP. “We look forward to what we hope is the beginning of a productive working relationship that will ensure future development protects our sensitive environment while meeting the needs of area residents, workers, and businesses.”

The settlement agreement provides that MAP will dismiss its lawsuit following TRPA’s approval of amendments to the Phase 2 housing codes the agency adopted in December. Just last week, on June 26, the TRPA Governing Board adopted the code amendments specified in the settlement. The first amendment reinstates the requirement that 50% of the units allowed under the updated bonus unit criteria be reserved exclusively for affordable housing. The other amendment strengthens stormwater collection and treatment requirements.

The Phase 2 codes modified the development standards in specified areas for certain types of deed-restricted housing construction within TRPA’s bonus unit designation. MAP filed suit because it was concerned about the impacts these changes would have on the environment and public safety in Lake Tahoe, and because the changes eliminated the requirement that a portion of the units be for “affordable” rather than higher-income (“moderate” and “achievable”) housing. Last week’s vote addressed the heart of those concerns.

TRPA’s Housing Initiative includes three phases. The previously approved Phase 1 provided for Accessory Dwelling Units, increased residential densities as part of hotel/motel redevelopment, and aligning the Bonus Unit Boundary. The Phase 2 amendments were the subject of MAP’s lawsuit and the current settlement. TRPA is currently initiating Phase 3 to consider additional policies related to equitable and sustainable housing and improving climate resilience.

“In addition to these immediate wins, MAP is pleased to announce we will now have an opportunity to include a member of our staff on TRPA’s working group, which will be developing the parameters for Phase 3,” added Ollar. “We’re also glad to note that TRPA has committed to preparing an Environmental Impact Statement that relies on current conditions as the baseline of its analysis as part of its next round of updates to its housing codes.” MAP hopes and anticipates that it will be able to work with TRPA to develop environmentally sound and equitable housing policies in Phase 3, although the settlement does not preclude MAP from challenging future TRPA actions.

As part of the settlement, TRPA agreed, in Phase 3, to consider policy options to improve workforce housing in the area that do not require new housing construction, such as short-term rental caps or bans, incentives for homeowners to lease their houses to locals, down-payment assistance, and other innovative programs. TRPA also agreed to evaluate an income cap for future deed-restricted achievable housing units, as well as potential impacts on scenic resources and public safety for new development.

Both MAP and TRPA have agreed that there is a real need to provide more lower-income and workforce housing options in the Lake Tahoe Basin while also preserving its unique environmental attributes.

“This is an exciting step for MAP as we expand our advocacy for environmentally sound housing development that meets the needs of all Tahoe residents, particularly the workers who keep our economy humming,” added MAP’s board president, Dan Haas. “The work is far from done – and we’re ready to do what it takes to secure a safe, equitable, and healthy future for everyone who calls this basin home.”