A Big Step Forward for Co-Ownership in Park City

Park City, Utah is the first municipality to recognize and regulate Pacaso’s co-ownership model following the passage of an ordinance by its City Council on Thursday. The ordinance rejects claims that Pacaso is a timeshare and creates a new zoning use for co-ownership.Like many destination communities, Park City is experiencing a housing crisis as a result of unprecedented demand for second homes and a wasteful legacy model of whole second home ownership, which sees second homes sitting unused for about 90% of the year. There is a better way. Pacaso takes up to eight buyers and puts them in one home. Those buyers were looking for single family homes in the community. Instead, they share one luxury home.As a result of this ordinance, Park City can now use co-ownership as a tool to sustainably incorporate second home owners into its community while giving buyers more options to reduce the cost and hassle of owning a second home there. It’s notable the ordinance passed just before ski season, when interest in second homes in Park City peaks. This year, that demand will run into record low inventory and record high prices.Here’s a look at what’s inside the new ordinance:

Confirms that Pacaso is not a timeshare, which is a separate use in their zoning code
Creates a new use called Fractional Dwelling Unit for co-ownership
Establishes a permit process for Fractional Dwelling Units
Authorizes Pacaso to purchase and manage additional homes

These rules apply to future co-owned homes. Existing Pacaso homes are excluded. The ordinance also formalizes Pacaso policies around noise, parking, trash collection, maintenance and snow removal. It also prohibits short-term rentals in co-owned homes, which is already prohibited in every Pacaso home. This is bigger than Pacaso. Co-ownership is an established practice in Park City and the rest of the country. Pacaso is modernizing the process and bringing together buyers. Otherwise our homes operate similar to any other co-owned home in Park City. There are 2,971 LLC-owned homes in Park City, and 2,718 of them are second homes. The ordinance protects the rights of every single one of those owners.We thank Pacaso owners, owners of other co-owned homes, local realtors, business people, and others in the community who spoke up in support of co-ownership. This wouldn’t have been possible without your help. We also thank the Park City Council and staff who took time to understand our model and the benefits it provides to the community. We commit to continue to work in close partnership with all of them to ensure co-ownership benefits the entire community.

A Big Step Forward for Co-Ownership in Park City

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