Council allocates $80,000 to long-term rental incentive program, asks for performance review

Zach Thomas, director of Development Services, briefed the council on the long-term rental incentive program (formerly known as "lease to locals"). The program, operating since December 2021, has assisted 65 households and sheltered 155 people. Staff said bringing administration in-house generated approximately $60,000 in operational savings and that the remaining grant funds are currently exhausted.

Thomas asked the council to allocate an additional $80,000 so the program can continue making incentive grants. He proposed funding $50,000 from the substandard housing relocation account (derived from enforcement-related fees) and $30,000 from the city's undesignated general-fund reserve.

Councilmembers questioned total program expenditures to date, the per-household cost, and outreach strategies for landlords and property managers. Thomas said the program has had $690,000 allocated in prior rounds (including $500,000 from ARPA and additional city allocations) and that grant payments are structured at roughly $4,500 per qualified household. He also described lower-cost marketing channels used since insourcing the program and noted staff savings from bringing administration in-house.

Public comment raised concerns about enforcement of short-term rentals, eligibility verification and program design. The council voted to authorize the $80,000 allocation and directed staff to return with an in-depth presentation at the next quarterly housing review meeting on how insourcing has proceeded and what outreach has been completed. The motion passed as recorded in the meeting record.