When Marni Lustig noticed a flier for the Save Our Companies marketing campaign, she didn’t instantly grasp what she was studying.
The flier gave the impression to be about Los Angeles’ price range disaster, potential layoffs of metropolis staff and potential cuts to public companies.
Then, she noticed a sentence about increasing short-term leases and realized the marketing campaign utilized on to her.
Lustig needs to purchase a house and hire it by way of Airbnb, however the metropolis solely permits short-term leases for major residences. The marketing campaign goals to legalize Airbnb and comparable leases for second houses, which, in keeping with supporters, would generate tax income to assist handle the price range disaster.
“As a result of we’re not allowed to [rent second homes] right here, I’ve been trying outdoors of the town. So that they’ll get my cash, not L.A.,” stated Lustig, a vogue photographer who lives in a Pico-Robertson rental that she lists on Airbnb.
In the previous few weeks, residents across the metropolis have been flooded with fliers held on their doorways and canvassers polling them about Save Our Companies. Among the fliers don’t point out short-term leases and solely describe the price range disaster whereas together with a QR code for the marketing campaign’s web site.
That web site paints a grim image of the town’s funds and proposes an answer: permitting “a restricted variety of individuals to hire their second houses to vacationers.”
Supporters say the plan might generate about $80 million in tax income yearly, particularly as vacationers descend on Los Angeles for the 2026 World Cup, 2027 Tremendous Bowl, and 2028 Olympics.
“We will generate thousands and thousands in new tourism income devoted for L.A.’s long-term restoration — paid for by vacationers, not taxpayers,” the web site says.
Fliers for the marketing campaign, which urges the Metropolis Council to amend the short-term rental ordinance to incorporate second houses, listing as supporters a broad coalition of teams, from unions like Teamsters Native 911 to the business-aligned Central Metropolis Assn.
Conspicuously absent from the web site and fliers is Airbnb, the short-term rental large that may be a backer of the marketing campaign and would revenue from the change.
Nick Gerber, an organizer for the lodge and restaurant staff union Unite Right here Native 11, which opposes the marketing campaign, stated that when a canvasser knocked on his door, he requested who the marketing campaign’s supporters have been. He knew the marketing campaign concerned short-term leases, so he was stunned to not see Airbnb’s identify.
“I seemed behind the shirt with all of the [organizations] listed and didn’t see any of those short-term rental firms, however instantly, I assumed this was clearly one thing they have been behind,” Gerber stated.
Metropolis Councilmember Hugo Soto-Martínez, a former Unite Right here organizer, stated he discovered of Save Our Companies when he got here throughout a flier in his mother and father’ South L.A. neighborhood.
“It doesn’t say Airbnb on it, however that is one thing that Airbnb has been pushing for years, they usually’re utilizing what I believe is fairly misleading ways to attempt to get sympathy from the general public,” Soto-Martínez stated.
When the Metropolis Council debated a house sharing ordinance in 2018, Airbnb pushed for second houses to be included. However the council restricted the ultimate model to major residences, partially to keep away from reducing the variety of long-term rental properties amid a housing disaster.
Airbnb confirmed that it’s concerned in Save Our Companies however declined to say whether or not it has contributed any cash to the marketing campaign and didn’t reply to questions on its actual position.
“It’s fairly easy: new tax income from vacationers may give Los Angeles much-needed funding for metropolis companies and union jobs which are in danger,” stated Justin Wesson, senior public coverage supervisor for Airbnb.
Wesson stated that Airbnb has organized a “various coalition” for the marketing campaign and can proceed to “assist sensible short-term rental insurance policies that stability the advantages of tourism with group wants.”
The marketing campaign doesn’t seem like registered with the Los Angeles Metropolis Ethics Fee, in keeping with the fee’s web site, and Airbnb didn’t instantly reply to a query about whether or not the marketing campaign has registered.
Anybody who spends $5,000 or extra to aim to affect municipal laws, and who is just not a lobbyist, is required to register with the fee as a “main filer” and report their spending.
A fee spokesperson stated there was no document of a serious filer report from Airbnb after 2016.
A flier for the Save Our Companies marketing campaign. Fliers have been noticed all throughout the town and canvassers have polled residents on whether or not they would assist a change to the town’s short-term rental legal guidelines.
(Noah Goldberg / Los Angeles Instances)
Airbnb stated in an e mail that 70% of the 50,000 individuals polled by canvassers supported the Save Our Companies marketing campaign.
The marketing campaign web site notes that the extra tax income would are available two streams: an estimated $38 million from the gross sales tax generated by vacationers spending cash at native companies and one other $41 million from the transient occupancy tax of 14% on short-term leases.
The town of Los Angeles confronted a $1-billion price range shortfall this yr, closing the hole by way of proposed layoffs and different cuts. The monetary woes are prone to proceed for a number of years, amid weak tax revenues, skyrocketing authorized payouts and more and more costly union contracts.
Critics of Save Our Companies stated that Airbnb hosts typically evade the transient occupancy tax and that the town ought to step up its enforcement of the tax as a substitute of opening up extra houses for short-term leases.
Randy Renick, government director of Higher Neighbors LA, which focuses on regulating short-term leases, stated evading the tax is “the basic subject,” with some Airbnb hosts claiming their residences are outdoors metropolis limits.
Maria Hernandez, a spokesperson for Unite Right here, which is a part of the Higher Neighbors LA coalition, stated a rise in short-term leases would exacerbate the town’s housing scarcity by eradicating items from the long-term market.
“We face a housing disaster for working individuals, and this solely makes it worse,” Hernandez stated. “The best way for the town to handle its price range disaster is to implement present legal guidelines, fining the landlords who illegally convert housing to motels, and ensuring the platforms really pay the taxes they keep away from.”
The marketing campaign has created some unusual bedfellows. The lodge trade and Unite Right here have battled over a $30 lodge and airport employee minimal wage, amongst different points, however have aligned in opposition to Save Our Companies.
Metropolis Councilmember Monica Rodriguez, who typically spars with Soto-Martínez, additionally opposes the marketing campaign, saying she doesn’t need to create an incentive for individuals to purchase up properties and switch them into short-term leases. She added that the town’s restricted housing inventory must be for the individuals who dwell and work right here.
“It’s the place I really align with my colleague,” she stated of Soto-Martínez.
Nonetheless, Save Our Companies supporters say a short-term rental growth could be an efficient option to increase income.
“Labor, group, housing, enterprise, and civic organizations have come collectively to seek out rapid and sensible options that may assist generate practically $80 million in new annual income to save lots of jobs and companies, shield Angelenos’ livelihoods, and stabilize the town’s funds,” stated Eric Tate, government secretary treasurer for Teamsters Joint Council 42, in an announcement.
