Launched in 2020 by Zillow executives, Pacaso allows people to buy and own a second home through a limited liability company.
After winning the mayoral election in 2014, this is Adler’s final year in office. Prior to his role in city hall, Adler got experience in property matters by founding an eminent domain law practice representing landowners.
Now, Adler joins others like Denver’s mayor and a member of the Florida House of Representatives on the Pacaso advisory board. Pacaso says the group will provide recommendations to senior leadership to help shape the company’s actions on housing policy, community engagement, growth and expansion, and other policy issues.
In an announcement of the board, Pacaso says a contributor to the housing crisis is the legacy model of second home ownership where houses in many communities are unused for much of the year.
“Against this backdrop, it’s more important than ever to invest in creative solutions,” Pacaso’s statement says. “While no company can solve this complex set of problems on its own, Pacaso offers a sustainable alternative that combines multiple families into one luxury home.”
Last March, Pacaso said it was the fastest U.S. company to achieve unicorn status after raising $75 million at a $1 billion valuation. With the new capital, the company made expansion plans like entering more markets and hiring a new chief financial officer.
The company has said it “modernizes the decades-old practice of co-ownership” and is not a timeshare, though city officials in at least one town have classified it as such.
Pacaso works by setting up an LLC with eight shares. After someone purchases shares, Pacaso oversees matters like scheduling and maintenance on the property. After owning for a year, people can then sell their shares and potentially make a profit.
"Throughout my career as a founder and tech investor, I have experienced tremendous growth and innovation among startups, but none compare to Pacaso," Pacaso co-founder Spencer Rascoff said at the time. "The opportunity in front of Pacaso is massive and I'm excited to help the company achieve its full potential."
But not all have shared the same excitement over Pacaso.
NPR reported on how the company plans to expand across North America and Europe but faced resistance while establishing some of its first operations in California’s wine country.
City officials in the town of St. Helena in Napa Valley said Pacaso could not operate there due to a local ordinance that bans timeshares. In response, Pacaso sued the city in federal court.
Neighbors have also expressed opposition and formed groups like Sonomans Together Opposing Pacaso.
Currently, Pacaso doesn’t have listings in Texas though it is in other states like Hawaii, California and Colorado.
The former mayor of Columbia, South Carolina, Steve Benjamin, will chair the government advisory board. In a statement, he called Pacaso’s model a “value add to communities across the United States.”
“Pacaso consolidates second home demand into fewer homes, taking pressure off of housing inventory for first-time home buyers and middle class families,” Benjamin said. “This is the thoughtful and sustainable approach to housing we need right now, and I’m proud to help advise the company as it works to bring this model to more communities.”
