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What is the ‘Save Our Services’ initiative?

When Marni Lustig first spotted the flyer for the Save Our Services campaign, it didn’t quite register with her. It seemed centered around the budget issues in Los Angeles, mentioning potential layoffs and cuts to public services. But then she noticed a line about short-term rentals, and it hit home.

Lustig, a fashion photographer, is currently renting her Pico-Robertson home on Airbnb. She has plans to purchase another home in Los Angeles for rental purposes. Supporters of the campaign argue that legitimizing short-term rentals for second homes could help generate tax revenue to alleviate the budget crisis.

“I want to buy in LA, but we’re not really allowed to rent second homes. I’ve looked elsewhere,” she shared, expressing her frustration.

In recent weeks, residents have been inundated with flyers left at their doors and canvassing for votes about saving local services. Some of these flyers don’t even mention short-term rentals; they focus solely on the budget crisis and include QR codes leading to the campaign’s website.

The website paints a dire picture of the city’s finances, suggesting solutions. It mentions that a limited number of people would be able to rent a second home to travelers.

Advocates claim the initiative could bring in around $80 million annually in tax revenue, especially with major events like the 2026 World Cup and the 2028 Olympics on the horizon.

“This would create new tourism revenues that would directly contribute to LA’s recovery, funded by visitors, not taxpayers,” the site asserts.

The campaign’s flyers aim to persuade city councils to revise the short-term rental regulations to include second homes. The supporters highlight a broad coalition, including unions like Teamsters Local 911 and various business associations.

Interestingly, Airbnb, a major supporter of the campaign, isn’t mentioned on the flyers or the website. Nick Gerber, from the Hotel and Restaurant Worker Union, expressed surprise when canvassers knocked on doors. He expected Airbnb’s name to be prominent, given its connection to the campaign.

“I looked at everything, and none of those short-term rental companies were listed. But we quickly thought they were clearly behind this,” he said.

Hugo Soto-Martínez, a city councilman and organizer, said he became aware of the Save Our Services campaign after encountering a flyer in his parents’ South LA neighborhood.

“While it doesn’t explicitly mention Airbnb, it’s something they’ve been advocating for years. I think it’s a pretty deceptive tactic to garner public sympathy,” he remarked.

Back in 2018, when the city council was discussing home-sharing regulations, Airbnb was pushing to allow second homes, but the final ordinance limited rentals to primary residences to combat the housing crisis.

Airbnb acknowledged its involvement in the Save Our Services campaign but declined to disclose if it had financially supported the initiative or clarify its role.

Justin Wesson, Airbnb’s senior public policy manager, noted, “New tax revenue from tourists can provide essential funding for vital urban services and union jobs.” He mentioned Airbnb’s plans to build a “diverse coalition” to support policies that balance tourism benefits with community needs.

However, the campaign does not seem to be registered with the Los Angeles City Ethics Committee. There has been no record of major filings from Airbnb since 2016, according to a spokesperson for the committee.

Individuals looking to influence local government must register as “primary filers” and report their expenditures if they are not non-lobbyists.

Some critics argue that Airbnb hosts often evade temporary occupancy taxes and believe the city should enforce existing tax laws rather than opening more homes for short-term rentals.

Randy Renick, executive director of Better Neighbors LA, flagged tax evasion as a key issue, noting that some hosts claim housing is outside the city’s jurisdiction.

Maria Hernandez, a spokesperson for Here Unity, pointed out that increasing short-term rentals could worsen LA’s housing crisis by pulling units out of the long-term rental market.

“We are dealing with a worker housing crisis, and this makes it worse,” she said. “The city should focus on enforcing current laws and penalizing landlords converting homes into hotels while ensuring that platforms actually pay taxes.”

The campaign has brought together an unusual alliance, uniting the hotel industry with some worker groups opposing the campaign’s minimum wage initiatives, despite their differences.

Councilwoman Monica Rodriguez, often allied with Soto-Martínez, has voiced her opposition to the campaign, stating she doesn’t support incentivizing property purchases for short-term rentals. She believes the city’s limited housing stock should serve those who live and work there.

“I actually align with my colleagues on this,” she commented regarding Soto-Martínez.

Nonetheless, supporters of the short-term rental expansion maintain that it is a viable way to generate revenue.

“Labor, community, housing, business, and civic organizations are working together to find practical solutions that could yield nearly $80 million annually to save jobs and services, protect livelihoods, and stabilize Los Angeles’s finances,” they assert.

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