SAN DIEGO (CNS) - A little over a month after the San Diego City Council's Rules Committee killed a proposed ballot measure to tax empty homes and vacation rentals, the full City Council will Tuesday hear a similar proposal — sans rentals.
The sticking point in the 3-2 vote rejecting the proposal in late January was the belief that families, retirees and others rely on vacation home rentals as their source of income. A slimmed-down proposal by Councilman Sean Elo-Rivera took that part out and passed unanimously by the Rules Committee on Feb. 25.
"San Diegans are paying too much for housing, and families can't wait," Elo-Rivera said. "More than 5,000 homes in our city sit vacant during a housing shortage. That drives up costs for everyone -- renters and homebuyers alike. This measure is focused and fair: it exempts primary residences and long- term rentals and applies only to vacant second homes.
"It creates a simple choice -- rent it, sell it or contribute fairly to the public impacts of keeping housing off the market."
The measure applies only to vacant second homes that sit empty for more than half the year and does not apply to primary residences, renters, or long-term rental properties, a statement from Elo-Rivera's office read. The proposal impacts fewer than 1% of properties citywide and "could generate up to $30 million annually to support housing, homelessness prevention, infrastructure, parks, libraries, and public safety."
The new proposal to be heard Tuesday would tax the 5,115 empty homes in the city $8,000 each if approved by the council and passed by voters in June.
It also includes exemptions for hardship, military service, disaster damage, probate and long-term care as well as an additional charge for corporate-owned empty homes.
"San Diegans are being priced out while homes sit empty," said Stephen Russell, president and CEO of the San Diego Housing Federation. "Since 2000, we have lost more than 60,000 affordable homes in the city of San Diego -- not because they were demolished, but because they were up-marketed. At a time when housing is scarce, leaving thousands of homes vacant only makes the crisis worse."
Opponents of the proposal spoke out Monday, stating it would not significantly impact housing supply -- its purported goal -- and homeowners could be penalized for difficult compliance and enforcement mechanisms.
"San Diego families are already shouldering rising costs and increased fees," said activist Shane Harris. "Adding a sweeping vacancy tax that starts with significant annual liabilities -- potentially thousands of dollars per home -- adds a burden our residents simply cannot afford. This proposal risks penalizing homeowners and small property owners while delivering minimal improvement to housing outcomes."
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