Here in Incline Village/Crystal Bay we are beginning to observe a new threat to our residential neighborhoods; factional ownership. Below is the definition of factional ownership:
Fractional ownership is a percentage ownership in an asset; in this case houses in Incline Village/Crystal Bay. In a fractional ownership, shares in the asset are sold to individual shareholders who share the benefits of the asset such as usage rights, income sharing, priority access, and reduced rates.
They are different than Short Term Rentals in that the owners/occupants pay no Transient Occupancy Taxes (TOT), they don’t have to comply with occupancy limits, aren’t required to install fire safety equipment or abide by parking limitations like the Short Term Rentals. However, while factional ownership agreements often state they’re restricted from renting their ownership, owners have the ability to “gift” the use of the property to anyone. Does this sound like the unregulated Short Term Rentals of the past?
Each fractional owner is a eligible to be issued an IVGID passes. They are targeting our community with staff residing and working in Incline Village/Crystal Bay real estate market. Each owner is eligible for an IVGID Picture Pass and while the first 5 passes , either Recreation Picture Passes or Punch Cards, come at no additional cost, other than the payment of the annual Recreation and Beach Facility Fees, an unlimited number of additional passes may be purchased for eligible family members of the owners or residents, on an annual basis. As of the current Ordinance 7, IVGID Picture Pass holders may bring as many guests as they choose to pay for to our restricted access beaches. This has the potential to continue our beach overcrowding unless the Board of Trustees decides to limit the number of guests an IVGID Picture Pass holder may escort to the beaches.
Since we know Crystal Bay parcel owners do not have beach access, why are we mentioning them? Because this new type of ownership has potential impacts on all of the IVGID Venues. A couple of examples include IVGID Picture Pass holders being allowed to bring guests to golf at a discount and they can host a wedding at a discount. What impacts will this type of ownership have on our District venues? Time will tell.