The South Lake Tahoe City Council on Tuesday approved a new vacation rental ordinance and authorized a special application window that gives permit preference to some former short-term rental operators.

A major shift is happening to the rental-housing industry in South Lake Tahoe. After years of complaints from homeowners, a recent court ruling got rid of a ban on short-term housing rentals. Now, the city is preparing a new set of rules.

In what is being considered by officials as a compromise, the city of South Lake Tahoe on Tuesday approved and updated its vacation home rental policy.