City of Miami, FL regulates Pacaso as a short term rental.
City of Newport Beach City Council votes unanimously to accept the ordinance recommended by the Planning Committee. View Council Meeting
City of Newport Beach Planning Commission votes unanimously to recommend defining Pacaso as a timeshare.
County of Sonoma Planning Commission votes unanimously to define Pacaso as a timeshare. Board of Supervisors votes on to accept the recommendation.
City of Malibu votes unanimously to continue discussion to ban Pacaso. Next meeting is May. View Council Meeting
Newport Beach Council holds hearing on Pacao View Council Meeting
Sullivan's Is, SC unanimously denies Pacaso appeal View Appeals Meeting
Carmel, CA votes unanimously to ban Pacaso View Council Meeting
Maui, HI takes steps to limit fractional ownership, i.e. Pacaso
Park City UT votes to keep Pacaso out of neighborhoods and limit them to certain districts
Monterey County sends Cease and Desist Order to Pacaso
City of Carmel sends 2nd Cease and Desist Order to Pacaso calling them a Timeshare
City of Sonoma, City Council votes unanimously for Timeshare Ordinance update
Park City UT Planning Commission unanimously passes draft Ordinance limiting Pacaso
Town of Truckee, Town Council updated ordinance
Pacific Grove, CA City Council votes to update ordinance
Indian Wells, CA, Council upcoming agenda includes discussion to ban Pacaso
Palm Desert, CA City Council votes to update ordinance
Park City, UT Planning Commission ready to regulate
County of Sonoma, CA, Supervisors vote to hire consultant to create ordinance
City of Carmel, CA City writes a Cease and Desist Order
Palm Springs, CA City sends Cease and Desist Order
Paradise Valley, AZ, City pushes Pacaso out
St. Helena, CA, City Council adopts updated ordinance
North Haven, Long Island, Council changes ordinance
City of Sonoma, CA City Council adopts Urgency Order
City of South Lake Tahoe, CA City sends Cease and Desist Order
What is Pacaso?
Pacaso is the newest way for Silicon Valley tech and venture capital vultures to make a quick buck at your expense: By turning your neighbor’s house into what’s basically a glorified timeshare.
Forget the conference room sales pitch most of us associate with timeshares. Pacaso works quietly by buying up single-family properties under anonymous corporate shells and then resells “fractional" ownerships in the form of 1/8 of a furnished home. You may not realize the house next door sold to Pacaso until you see a revolving cast of guests pulling up every couple of days or weeks.
Originally called Niner Homes, Pacaso was founded in 2020 by Spencer Rascoff (Zillow Co-Founder) and Austin Allison who met when both were at Zillow.
You may have seen Pacaso’s advertising on billboards, Google, Facebook, Instagram, NextDoor or in your newspaper – they have made a big play for residential communities in areas that are considered vacation areas. They started in Northern California wine country and spread to SoCal - places that are in desperate need of more housing for their own communities.
Pacaso has now expanded nationally into every vacation destination and internationally.
Why is Pacaso bad for your neighborhood?
Pacaso is turning established homes into virtual hotels – except without paying transient occupancy tax (TOT) like other short-term lodging. By circumventing these fees and regulations, Pacaso is depriving local towns of sorely needed tax dollars, while lining their own pockets. Not that this argument is about TOT - it is about neighborhoods and regulations being ignored.
Pacaso is a Bully but Cities are fighting back:
Pacaso is a litigious bully. It sued the city of St. Helena in Napa Valley because St. Helena classifies Pacaso as a timeshare and won’t allow it. This case is tied up in Federal court at great expense to the City while Pacaso carries on 'business as usual' with the timeshare homes they have purchased.
This lawsuit has not frightened cities who are tired of having their zoning regulations ignored by corporate greed. Cease and Desist Orders changes in zoning regulations can be found listed on the Sample Documents page of this website.
JOIN OUR CONTACT LIST
Either click on the Get Involved tab on this website or email us at StopPacasoNow@gmail.com to join our list of allies. We will connect you to your local group working in a neighborhood near you.
We have sample sign art on the Sample page of this website. We encourage you to create your own logs and signs with local email for supporters to connect with you.
Homemade signs work just as well. Check the photo gallery above for some ideas.
WE ARE ON TWITTER!
We need to be where Pacaso spends its time, and that is on Twitter. Please follow us @StopPacasoNow
BTW, no surprise! Most of us have been blocked and are unable to retweet from @Pacasohomes
National SPN: https://chng.it/pfywKm9Yqd
CONTACT LOCAL GOVERNMENT
Regulations need to be created to protect our Cities and Counties against the rise of this newest way to skirt short term rental regulations. Write emails and attend meetings - make your voice heard. Check our Sample page for sample letters and the sample Cease and Desist Orders.
WRITE LETTERS TO THE EDITOR
Pacaso is advertising heavily. They have run half page ads in the local paper and full page in national papers. Write letters to the editor and educate your neighbors about Pacaso. Sample letters can be found on this website's Sample Documents page.
USE NEXTDOOR AS A TOOL TO ORGANIZE
Nextdoor.com is a useful tool in educating and organizing your neighbors. Let them know what is happening, encourage them to connect with you, create a Stop Pacaso group on your Nextdoor.
BE AWARE WHEN A HOUSE GOES UP FOR SALE
If you have a home for sale in your neighborhood, be aware it may be targeted by Pacaso and added to their Listings as a Prospect. What is a Prospect? Homes on the MLS borrowed to pad Pacaso's listings w/o owners consent.
Pacaso bullies are at it again!
Pacaso has spent $$$ lobbying to override local zoning regulations in Utah where they own 15+ houses. In March 2023, Utah Senate Bill 271 was passed by both houses and was signed by the Governor.
The town of Park City worked hard to create and pass zoning regulations that would keep Pacaso and similar fractional ownership companies where they belong - in business districts with hotels and bed and breakfasts. Pacaso agreed to the regulations in front of the camera and behind the City's back they lobbied the State Legislators to overturn it.
Needless to say, Pacaso will work hard to parlay this success into a template to lobby other states where Pacaso has a financial interest.
Alert your legislators - don't let them be sold Pacaso's slick spin.
Sullivan's Island, SC is a small community with a population of 1,89. It is 2.5 square miles with no hotels and strict regulations banning short term rentals.
In 2022, Pacaso purchased a home in Sullivan's Island to the ire of the entire community. The Town sent a cease and desist letter to Pacaso. On February 9, 2023, Pacaso's appeal was heard by the Board of Zoning Appeals and denied.
It is worth the watch/listen: http://sullivansislandsc.suiteonemedia.com/web/Player.aspx?id=492&key=-1&mod=-1&mk=-1&nov=0
It gets particularly interesting when the applicant's local legal representative took questions at 37 minutes.
As of August 2023, Pacaso has filed an appeal in Charleston County Circuit Court.
Pacaso filed a federal lawsuit on April 6 challenging the city's determination that Pacaso's shared homes amount to timeshares, which are prohibited by city code.
In July 2021 U.S. District Judge William H. Orrick dismissed one of the lawsuit's five "causes of action" against the city by applying California's anti-SLAPP statute, which is intended to prevent plaintiffs from using lawsuits to interfere with people exercising their free speech rights in connection with public issues.
In March 2022, the St. Helena City Council amended its ban on timeshares to expressly prohibit the company’s home co-ownership model.
“We have a place for tourists, and it’s not in our neighborhoods,” said Vice Mayor Paul Dohring. The council passed the new regulations 5-0.
In In March 2023 the pre-trial schedule for the case was released. Unless it is settled out of court, the jury trial is set for January 2024.
Fact discovery cutoff: June 9, 2023
Expert disclosure: July 14, 2023
Expert discovery cutoff: August 14, 2023
Dispositive Motions heard by: September 20, 2023
Pretrial Conference: December 11, 2023 at 2:00 p.m.
Trial: January 8, 2024 at 8:30 a.m. by Jury
NEWS! As of June 2023, both parties have agreed to ADR, which is basically mediation.
Check out this latest email dated March 2023 received by one of our supporters
"It was a rough week for the economy, and you might be asking: How should I use my money?
I’d love to talk about how Pacaso can help you to diversify and expand your portfolio into real estate, a purchase class which has historically been a safe and resilient place to park money during uncertain times. Not to mention, a second home is a tangible place where you can make lifelong memories, unlike a U.S. Treasury bill.
And for a limited time, you can own a luxury second home for just 5% down with Pacaso’s special offer. But act fast, this ends on April 30, and limited homes remain. Reply to this email to learn more!
2020 was the year when venture capital money was plentiful and everyone was throwing money hoping to land a winner. Pacaso had early investors and the promise of financing for the purchase of homes. So much so that within months, based on co-founder Spencer Rascoff's success with Zillow, they were touted to be a 'Unicorn.'
In contrast, 2022 was the year when it all turned bad for the tech industry. Pacaso's last investment dollars came in September 2021 from Softbank, who only months later had their own meltdown in value.
Now in 2023, the debacle of SVB (Silicon Valley Bank) is playing out with a connection to Pacaso, an unlisted startup in the SoftBank portfolio. The WSJ warned "Lender’s collapse could force reckoning on valuations of unlisted startups—of which SoftBank is a major backer"
Pacaso was once considered a $1B Unicorn in the tech world. But, all of that came to a crashing halt in 2022. Like many tech companies, they grew during the early days of covid - in their case, to 300 employees. And, like many tech companies they laid off most of their employees in 2022 and the beginning of 2023.
From the Pacaso website:
"Own a second home and get the complete Pacaso experience for just 5% down. After 12 months of ownership, you have three flexible options: Complete your down payment and keep owning; transfer your 5% down to another home; or return your Pacaso and walk away".
"Legal expenses, to the extent incurred on behalf of the LLC, may be passed through to the owners as a Basic Expense of the LLC"
Found under Owner FAQs 6/21
"The owner group can vote to remove Pacaso as the manager of the home and self-manage the property."
Found under Owner FAQs 6/21
NOTE: Whether the owners decide to self-manage or Pacaso remains the manager, management agreements CAN CHANGE. The Code of Conduct, a selling point to potential Pacaso neighbors, is not guaranteed if management changes or the management agreement is amended.
Since the LLC shareholders are anonymous to one another, their only point of contact is through Pacaso
"Owners are not permitted to rent out or sell time on vacation rental sites or other public rental listing services. "
Found under Buyer FAQs 6/21
NOTE: Remember, this statement is part of Pacaso's Code of Conduct, which is NOT on the deed to the property and CAN be changed at any time.
NOTE: Many jurisdictions restrict – or ban outright – short-term vacation rentals yet Pacaso has ignored them and moved right in.
"Owners may cancel with no penalty up to 60 days prior to their scheduled stay."
" If the property is not re-booked, the dates count toward the cancelling owner's annual stay night calendar for the year. "
Found under Owner FAQs 6/21
NOTE: Hospitalization? Smoke from nearby fires impacting the quality of air? Family emergency? Mandatory Evacuation? Extended Power Outage?
"Prospects are whole home listings that meet Pacaso’s highly selective criteria: epic homes in amazing locations. To purchase the whole home, contact Julian Johnston, The Corcoran Group. If enough buyers are interested in co-owning this home, we’ll buy the home and turn it into a Pacaso."
Found under Buyer FAQs 6/21
NOTE: Most of the pages of listings on Pacaso's website are Prospect Listings; homes that are not owned by Pacaso but are for sale on the MLS