Truckee council approves introduction of ordinance allowing some long‑term tenants to operate hosted rentals

The Truckee Town Council on June 10 introduced Ordinance 2025-05 to amend Chapter 5.02 of the Truckee Municipal Code governing short‑term rentals, changing who may operate a “hosted rental” and imposing additional registration and liability rules.

The ordinance, introduced unanimously, would permit a long‑term tenant who was operating a hosted rental in good standing before the hosted‑rental definition changed on May 24, 2022, to apply for a hosted‑rental registration certificate. The draft requires tenants who operate a hosted rental to provide homeowner authorization and an affidavit of primary residency; it also expands the code’s liability provisions so that a homeowner and a non‑owner tenant operator are “jointly and severally liable” for violations of the municipal code and for collection and remittance of transient occupancy tax.

Why it matters

Council members and staff said the changes are intended to clarify the code, preserve the town’s existing hosted‑rental program where appropriate and limit the number of parties who may operate hosted rentals. Supporters told the council the change will preserve housing flexibility for some long‑term residents while adding documentation and shared liability to protect the town’s transient‑occupancy‑tax base and enforce local rules.

Details of the proposal

Key changes staff proposed and council directed into the draft ordinance include: - Definition changes to allow tenants as possible operators where they meet specific criteria, adding tenants to definitions that previously referenced only homeowners. - A new registration requirement that a tenant operator provide proof of homeowner approval: a copy of the lease, lease amendment or a notarized letter from the property owner authorizing operation of one bedroom as a hosted rental and acknowledging joint and several liability. - A requirement that tenant operators submit an affidavit of primary residence when applicable. - Administrative clarifications that hosted rentals will be subject to the same oversight, enforcement, and penalties as other short‑term rental certificates, and that a registration certificate tied to a tenancy will expire when the tenancy expires.

Council discussion and public comment

Council members asked staff practical questions about the notarization requirement and whether an unsworn declaration might suffice; staff said the town can provide notary services at no charge to avoid placing costs on applicants. Councilmembers also asked whether private indemnity agreements between tenant and homeowner could be used; staff said those would be private contracts and not substitute for the town’s joint‑liability requirement.

One member of the public, Sherry Lewis, testified that the proposed changes had already helped her maintain housing flexibility and asked the council to consider applying the changes more broadly to other long‑term operators. Council members said they would monitor outcomes and could revisit the ordinance if needed.

Action and next steps

Staff recommended that council introduce Ordinance 2025-05 and find the action exempt from the California Environmental Quality Act. Council member [not specified in transcript] moved to introduce the ordinance and the motion passed unanimously. Staff will return with final ordinance adoption language after the introduction period.

What remains uncertain

The ordinance as introduced is limited to tenants who meet the grandfathering criteria tied to the May 24, 2022 date; councilors noted that if additional cases surface staff can bring forward future amendments. The draft sets administrative rules (affidavit, homeowner authorization) but leaves civil or criminal remedies, and any additional compliance details, to subsequent administrative procedures.

Ending note

The council introduced the ordinance as part of a larger, ongoing set of housing and rental policy discussions. If adopted as introduced, the ordinance will change how some long‑term tenants and homeowners may share short‑term rental income and responsibilities in Truckee.