Clatsop County staff seek $950,000 grant for two‑year Lease-to-Locals pilot to convert short‑term and vacant homes into workforce rentals

Clatsop County staff presented a proposed two‑year Lease‑to‑Locals pilot that would pay property owners incentives to convert short‑term rental units or seasonally vacant second homes into long‑term (12‑month) leases for local workers.

The presenter described the program as “a way to incentivize property owners who currently have either a short term rental or a vacant second home … to enter into a long term lease with a local worker,” and said the county applied on June 30 for a $950,000 grant from the Oregon Community Partnership (CPCCO) to fund the pilot countywide.

County staff said the proposal would contract with a third‑party operator, Placemate, to reduce administrative burden on county staff. Placemate would qualify owners and tenants, provide a matching platform, perform inspections and disburse incentive payments: “the property owner gets the first payment of half of the incentive at the beginning of the lease… and then at the conclusion of the 12‑month period, the property owner will get the second payment, assuming that they were in compliance,” the presenter said.

The draft pilot aims for a target of 40 units per year (80 over two years) and an estimated assistance budget of roughly $320,000 per year for direct incentives, plus an approximately $125,000 annual administrative fee to the vendor and about $30,000 for marketing; the presenter said the total two‑year budget totals about $955,000.

Commissioners and other participants questioned program details and risks. Commissioners asked about vendor fees and whether a local provider could administer the program more cheaply; staff said they had researched alternatives and that Placemate was viewed by other jurisdictions as a best practice for this model. Commissioners also raised concerns about the program’s likely effectiveness in converting high‑value, owner‑occupied second homes, and about potential unintended consequences for the rental market.

Commissioners and staff discussed rental term flexibility for seasonal communities (six‑month or nine‑month leases versus 12‑month leases), whether owners could “take a gap year” and rejoin the program later, and whether the program would include rent caps. Staff said program guidelines would include rent caps; the preliminary proposal caps the top tier at $3,300 per month for the largest units and steps down for smaller units.

Staff said the county has solicited letters of support from cities, employers and other stakeholders and that several cities indicated they would consider funding the program locally if the pilot proves effective. The presenter said the county expects to hear grant award results in early September and, if funded, would return to the board to adopt program guidelines and execute a contract with the vendor.

The board did not take a final vote on the pilot during the meeting; staff said they will return with contract documents and program guidelines if the grant is awarded.