Q. What kind of allocation is required in order to construct housing in the
Lake Tahoe Basin?
A. New residential units either require an allocation and a development right for
each unit or a specific TRPA Code exemption from the need for an allocation
pursuant to Chapter 33 of the TRPA Code in order to be created. Development
rights and allocation must be assigned or transferred to the property before a
building permit will be issued. Transfers require both TRPA and City approval.
Development Rights: Development rights are one-half of what is required in order
to build a residential unit. Each undeveloped residential lot automatically has one
development right associated with it. If more than one housing unit is proposed for
a site, additional development rights need to be purchased and transferred to the
parcel to match the allocations received.
Allocations: An allocation is the other half of what is required in order to
build a residential unit. When matched with a development right, an
allocation provides the property owner to submit plans for construction of a
new residential unit.
Q. If I need more than one development right to build, how do I get them?
A. Development rights available for transfer may be purchased privately or from
the California Tahoe Conservancy (530-542-5580). The actual transfer of
development rights is handled through an application process with the TRPA that
takes several months to complete. Alternatively, bonus units may be substituted
for development rights pursuant to Chapter 35 of the TRPA Code of Ordinances;
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however, most developers find it most economical to purchase the development
rights for transfer.
Q. How do I get an allocation?
A. An allocation can be obtained in several ways:
Within South Lake Tahoe, there are separate waiting lists for allocations for
both single family homes and multifamily developments. The City is assigned
allocations annually by TRPA. These allocations are made available to those
people on the waiting list. To get on one of the City waiting lists, the
residential allocation application form must be completed by the property
owner, a copy of the grant deed in the property owner’s name must be
provided, the IPES score (single family) or Bailey land capability
(multifamily) must be verified as buildable, and the application fee paid. For
multifamily applicants, the administrative fee is charged per unit, but only one
building fee deposit is required. The maximum number of multiple family
allocations for one property each year is eight. The length of the wait before
your property is eligible for an allocation depends upon the length of the
waiting list, whether individual projects elect to “drop off” the list, and the
number of allocations that the TRPA provides to the City each year.
Consequently, City planners can only provide an estimate of when the
allocations will be made available to those who sign up. This estimate is not a
guarantee.
Positions on the allocation lists are parcel and person specific. They may not
be transferred to any other property or owner. If title to the property changes,
the property will be removed from the list and the original applicant may
request the return of the refundable portion of the deposit. Once a property
owner actually has the allocation in hand, title to the property can be
transferred, although the allocation cannot be transferred to another parcel.
Other Mechanisms for Obtaining an Allocation: TRPA provides two other
mechanisms for receiving allocations. As the waiting list for allocations
lengthens, more people are availing themselves to one of these options.
Because of this newfound interest in transferable allocations, the price of both
transferable allocations and lots that qualify for retirement has been
increasing.
1. Environmentally sensitive parcels may be permanently retired in
exchange for a transferable residential allocation.
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2. Allocations may also be purchased on the open market through a
private party. A local realtor or newspaper is a good place to check
listings.
Existing Residential Units of Use (both the development right and
allocation: are available for sale/transfer when existing development is
removed and the unit of use banked. TRPA has a unit of use verification
process for determining whether a structure has a residential unit associated
with it. TRPA verifications must be conducted before a structure is
demolished and the unit of use banked. Transfers require both TRPA and City
approval and must be associated with a current project.

Building Division for Permits