Welcome to Stop Pacaso Now!

Pacaso filed a federal lawsuit on April 6, 2021 challenging the city's determination that Pacaso's shared homes amount to timeshares, which are prohibited by city code.  

The lawsuit alleges a due process violation, selective enforcement, and invalid use of municipal authority. It seeks a judgment declaring that Pacaso isn't subject to St. Helena's timeshare ban.

St. Helena's Municipal Code defines a timeshare as "an ownership or leasehold estate in property devoted to a time-share fee (tenants in common, time span ownership, interval ownership) or a time-share lease."

Pacaso owned or managed five St. Helena homes at the time the suit was filed.

This lawsuit is still held up in Federal Court costing the City $$$$.  The suit not only charged the City but also the City Attorney, the City Mayor and the City Planning Director - who does that?  Litigious bullies with deep pockets and no conscience do!

 U.S. District Judge William H. Orrick ruled to dismiss 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. 

Pacaso's fifth cause of action accused the city and City Attorney Ethan Walsh of "intentional interference with prospective economic advantage," citing letters Walsh sent to local real estate offices, Pacaso and Pacaso homeowners stating that St. Helena's timeshare ban also applies to co-ownership. Walsh's letters to real estate agents didn't specifically mention Pacaso, but the company's lawsuit claimed that the letters "scared real estate agents and chilled their efforts to buy and sell ownership interest in Pacaso properties." However, Orrick ruled that Walsh's statements were protected by the anti-SLAPP statute because they "were made in connection with an issue under consideration by a legislative body."

To read the pleadings of the case filed by Pacaso against the City of St. Helena and the changes to the ordinance, go to the Sample Documents page.

On March 1, 2022, The Planning Commission voted 5-0  in support of an ordinance that would overhaul the city’s timeshare regulations for the first time since 1982 and redefine “time-share” to explicitly ban fractional ownership plans like Pacaso’s in residential zoning districts.  

For several days prior to the City Council vote, Pacaso engaged in a smear campaign disparaging the City Council and implying the City was suing Pacaso as opposed to the other way around.

Residents received unsolicited text messages,  outsourced phone surveys, printed mailers and even a door to door survey campaign spreading untruths about the Council.

On March 22, 2022, The St. Helena City Council voted 5-0 in support of the changes to the timeshare ordinance that clearly state that real estate models like Pacaso are not allowed in residential zoning districts!!!

And on April 5, 2022, They again voted 5-0 for the new ordinance to go into effect in 30 days.  The words of Council Member Lester Hardy sums it up well: "I am not surprised, but I am troubled by the persistent effort of Pacaso to confuse the public. . . . This ordinance does not prohibit, regulate, or affect any of the many LLCs that own homes in St. Helena that are not operating timeshares. It's that simple. And for all those individual Pacaso owners who have spoken . . . I'm also sad and distressed that your lives are affected by the deceptive and manipulative marketing campaign that's been part of Pacaso from the beginning. . . .”

To read the pleadings of the case filed by Pacaso against the City of St. Helena AND the updates to the ordinance that clearly ban Pacaso from doing business in St. Helena, go to the Sample Documents page of this website.

"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

Here are the links to the FAQs on the Pacaso website: 

• Buyer FAQs
• Scheduling FAQs
• Owner FAQs
• Agent FAQs
• Seller FAQs
• Neighbor FAQs
• Referral Equity Program FAQs