Many people are familiar with timeshares, where a group of people come together to co-own a property and divide up when each owner can use it.
Typically, these sorts of models are found in condo developments, but there’s also a similar program that has popped up in Park City and elsewhere offering what’s called “fractional ownership” of single-family homes.
Fractional ownership involves a group of buyers splitting the cost to purchase property through limited liability companies, commonly called LLCs.
One company promoting those is Pacaso. The company helps buyers set up an LLC and then manages their properties for them. Pacaso manages fractional ownership properties across the country, including in Park City.
Park City has code that restricts the operation of timeshares and nightly rentals, but the language on fractional ownership is unclear.
Letters sent to city hall and posted in local media by concerned residents have opposed fractional home ownership. Critics claim the properties are effectively functioning as timeshares and say multiple owners using homes as vacation getaways could increase neighborhood nuisances like noise, parking shortages and traffic.
The Park City Planning Commission is reviewing proposed code changes at its meeting Wednesday to address fractional ownership. The changes include clearly defining the differences between timeshares, private residences, and fractional ownerships, requiring conditional use permits and business licenses, and prohibiting fractional ownerships in some residential zones.
In a 2020 interview with KPCW, Pacaso CEO Austin Allison said challenging fractional ownership would be difficult, especially since many homes in Park City are already owned by LLCs.
“You know, it’s really hard to say that LLC’s can’t own homes," he said. "If you get into that business, then what do you do about the 20% of other homes in Park City that are owned in the exact same structure? What’s happening here is not actually new at all. We’re just simply making it easier for people to do with a professionally managed solution like the one that we offer.”
Wednesday’s discussion is a work session. Commissioners will only provide feedback and direction to city staff and no votes will occur.
A link to the agenda and details on how to participate can be found here.
