Placer County extends Lease to Locals program funding and contracts to keep long‑term rentals available for local workers

Placer County supervisors on June 24 approved $500,000 in transient‑occupancy‑tax funds and an agreement with Placemate Inc. (not to exceed $95,000) to continue marketing and implementation of the East Placer Lease to Locals program. The board’s action, adopted 5–0, also amended program guidelines to clarify goals and limit participation for properties already subject to certain deed restrictions.

Program purpose: Lease to Locals provides one‑time cash incentives to property owners who convert existing units — previously used for short‑term rentals — into long or seasonal long‑term leases for local workers. Incentive payments are per qualified tenant and vary by lease length (for example, $4,500 per qualified tenant for a 12‑month lease, up to a cap). The program is designed to change owner behavior and rapidly increase available long‑term rental stock while longer‑term housing projects are developed.

Results to date and rationale for additional funds: Placemate, the program operator, reported 114 properties and 257 bedrooms enrolled in the program since 2022, housing roughly 270 people (about 213 local workers). Year‑3 demand exceeded original budget estimates; a pipeline of applications required the board to allocate additional emergent TOT funds to avoid interrupting offers to property owners currently in the approval process. Staff and Placemate reported retention signals: a majority of property owners who complete the incentive lease stay in the long‑term rental market beyond the incentive term.

Board discussion: Supervisors emphasized the program’s role as a short‑term tool to increase rental housing quickly while preserving incentives for development of long‑term housing supply. Board members asked staff to track long‑term retention and consider employer‑based or repeat‑owner rules if needed to maximize community benefit.

Next steps: Staff will execute the Placemate agreement and allocate the emergent TOT funding to maintain the application pipeline. The board authorized the CEO or designee to approve minor administrative changes to program guidelines.

Ending: The additional funding preserves the program’s momentum and aims to protect a pipeline of property owners converting units into long‑term rentals for local workers, while staff systematizes longer‑term retention tracking.