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HomeMy WebLinkAboutHB1001PublicMeeting FILEDPublic Hearing On Increasing Housing Development HB 1001 / IC 36-7-4.3 Joint Community Investment and Zoning & Annexation Committee July 27, 2026 Filed in Clerk's Office ::_ JUL 2 8 2026 ·-�•·• Bianca Tirado , City Clerk, South Bend, IN South Bend Population South Bend Population Mindset No one is coming to save you... No one is coming to save you. We must figure out how to address our housing challenges and then do the things necessary to drive change. For South Bend this means taking a proactive approach. Hiring staff to manage change Land control / acquisition Neighborhood planning & engagement Code reform Fostering development partnerships Addressing infrastructure cost Elevating design expectations Our Challenge Our Challenge 1.We need more people to be competitive in a national market. 2.New development must be financially productive for the city. 3.We must heal our city primarily through infill development. 4.Something is not always better than nothing. Source: AARP Publication: Making Room Demographics – who we are vs. what we build of households in the U.S. have no children in 202575% Source: Federal Reserve Bank of St. Louis Demographics – who we are vs. what we build Source: U.S. Census Bureau. https://www.census.gov/construction/nrc/data/series.html of U.S. housing starts in 2024 were single family homes Demographics – who we are vs. what we build 74% Demographics – changing reality Number of people per household Average square feet of new single-family home Square feet of living space per person Sources: U.S. Census. AARP Publication: The ABCs of ADUs. National Association of Homebuilders “Cost of Constructing a Home - 2024” Eric Lynch 2025 1950 2024 3.8 983 292 2.5 2,647 1,058 3.6x Source: AARP Publication: Making Room Demographics – who we are vs. what we build This is what we used to build to address our housing needs. neighborhood scaled financially productive affordable (*with calibrated codes) addresses demographic changes “We regard Mayor Mueller’s administration as one of the most clearly pro-housing in the state, making (and continuing) innovative moves to address access and affordability.” Chris Watts Vice-President, Public AffairsIndiana Association of Realtors Agenda •What is this meeting for and why are we having it? •What has South Bend done to support housing development? •What barriers does the state want us to address? •What else should we do? Why are we having this meeting? House Bill 1001: Original Intent •Preempt local zoning for small scale development •Provide religious institutions with development power •Mixed-use by right in commercial areas •Single stair reform •Elevator size Courtesy of Indiana Capital Chronicle House Bill 1001: Passed Version •Requires local governments to submit housing progress reports to the State •Creates a state study committee to look at “Yes In God’s Backyard” policy •Limits growth of permit fees •Requires local governments to hold a public hearing on how the zoning ordinance could be changed to support housing development Courtesy of Indiana Capital Chronicle What is this hearing for? •Required for the housing progress report •Identifying and reducing barriers to housing •Funding and future opportunities What has South Bend done to support housing development? Supporting Housing Development •Zoning Ordinance Reform •Presented rules clearly •Allowed ADUs by right on all properties •Created U2 zoning district for missing middle housing •Simplified development standards Supporting Housing Development •Infrastructure Assistance •Sewer lateral reimbursement •Curb and sidewalk •Partnerships with organizations •Small-scale developer ecosystem •Preapproved plans Pre-Approved Building Plans •91 units in 68 buildings permitted Bungalow Detached Houses 187 permits ADUs Duplexes Today’s starter home 0 5 10 15 20 25 30 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025Duplex BuildingsYear City of South Bend Duplex Buildings Permitted City of South Bend 0 5 10 15 20 25 30 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025Duplex BuildingsYear City of South Bend Duplex Buildings Permitted City of South Bend Small Multi-Unit Large Multi-Unit 18 major projects in pipeline New Infill Neighborhoods What barriers does the state want us to address? House Bill 1001: Passed Version •Requires local governments to submit housing progress reports to the State •Creates a state study committee to look at “Yes In God’s Backyard” policy •Limits growth of permit fees •Requires local governments to hold a public hearing on how the zoning ordinance could be changed to support housing development Courtesy of Indiana Capital Chronicle Development Standards Accessory Dwelling Units Tax Abatements Impact Fee Zones Adaptive Reuse Vacant LandPermitting Higher Density in Single Unit Districts Floor Area Ratio What barriers does the state want us to address? Development Standards Accessory Dwelling Units Tax Abatements Impact Fee Zones Adaptive Reuse Vacant LandPermitting Higher Density in Single Unit Districts Floor Area Ratio What barriers does the state want us to address? Development Standards Accessory Dwelling Units Tax Abatements Impact Fee Zones We Don’t Regulate this Adaptive Reuse Vacant LandPermitting Higher Density Floor Area Ratio We Don’t Regulate this What barriers does the state want us to address? Providing for higher density development of duplexes, triplexes, and fourplexes in areas designated for single family homes. Providing for higher density development of duplexes, triplexes, and fourplexes in areas designated for single family homes. What More Can Be Done? Providing for higher density development of duplexes, triplexes, and fourplexes in areas designated for single family homes. Implement Future Zoning Map in Neighborhood Plans Providing for higher density development of duplexes, triplexes, and fourplexes in areas designated for single family homes. Duplexes by Right in U1 Providing for higher density development of duplexes, triplexes, and fourplexes in areas designated for single family homes. ✓ Missing Middle U2 District Land Use Map Duplex by right Development Standards Accessory Dwelling Units Tax Abatements Impact Fee Zones We Don’t Regulate this Adaptive Reuse Vacant LandPermitting Higher Density✓ Missing Middle U2 District Land Use Map Duplex by right Floor Area Ratio We Don’t Regulate this What barriers does the state want us to address? Constructing other housing types including accessory dwelling units and manufactured and modular housing. Constructing other housing types including accessory dwelling units and manufactured and modular housing. What More Can Be Done? Constructing other housing types including accessory dwelling units and manufactured and modular housing. •Remove residency requirements for ADUs •Residency requirements may be banned by the state in 2028 Constructing other housing types including accessory dwelling units and manufactured and modular housing. ✓ ADUs permitted throughout city ADUs by right Development Standards Accessory Dwelling Units✓ ADUs permitted throughout city ADUs by right Tax Abatements Impact Fee Zones We Don’t Regulate this Adaptive Reuse Vacant LandPermitting Higher Density✓ Missing Middle U2 District Land Use Map Duplex by right Floor Area Ratio We Don’t Regulate this What barriers does the state want us to address? Adaptive reuse of commercial buildings for residential use Adaptive reuse of commercial buildings for residential use What More Can Be Done? Explore Commercial District (C) Adaptive Reuse with Standards Adaptive reuse of commercial buildings for residential use Adaptive reuse of commercial buildings for residential use ✓ DT, NC, & UF Districts permit this Add C District Development Standards Accessory Dwelling Units✓ ADUs permitted throughout city ADUs by right Tax Abatements Impact Fee Zones We Don’t Regulate this Adaptive Reuse✓ DT, NC, & UF Districts permit thisAdd C District Vacant LandPermitting Higher Density✓ Missing Middle U2 District Land Use Map Duplex by right Floor Area Ratio We Don’t Regulate this What barriers does the state want us to address? Waiving or eliminating regulations such as requirements •Garage Size & Placement •Steeper Roof Pitch •Minimum Lot size & Square Footage •Greater Setbacks •Off-Street Parking •Design standards that restrict code-compliant material •Property height limitations Waiving or eliminating regulations such as requirements •Garage Size & Placement •Steeper Roof Pitch •Minimum Lot size & Square Footage •Greater Setbacks •Off-Street Parking •Design standards that restrict code-compliant material •Property height limitations We don’t regulate this We don’t regulate this Waiving or eliminating regulations such as requirements •Garage Size & Placement •Minimum Lot size & Square Footage •Greater Setbacks •Design standards that restrict code-compliant material •Property height limitations Waiving or eliminating regulations such as requirements •Garage Size & Placement •Minimum Lot size & Square Footage •Greater Setbacks •Design standards that restrict code-compliant material •Property height limitations Waiving or eliminating regulations such as requirements •Garage Size & Placement •Minimum Lot size & Square Footage •Greater Setbacks •Design standards that restrict code-compliant material •Property height limitations Waiving or eliminating regulations such as requirements •Garage Size & Placement •Minimum Lot size & Square Footage •Greater Setbacks •Design standards that restrict code- compliant material •Property height limitations Waiving or eliminating regulations such as requirements •Garage Size & Placement •Minimum Lot size & Square Footage •Greater Setbacks •Design standards that restrict code-compliant material •Property height limitations ✓ Existing standards are more permissive than most places Waiving or eliminating regulations such as requirements Development Standards✓ Existing standards are more permissive Accessory Dwelling Units✓ ADUs permitted throughout city ADUs by right Tax Abatements Impact Fee Zones We Don’t Regulate this Adaptive Reuse✓ DT, NC, & UF Districts permit thisAdd C District Vacant LandPermitting Higher Density✓ Missing Middle U2 District Land Use Map Duplex by right Floor Area Ratio We Don’t Regulate this What barriers does the state want us to address? Streamlining or shortening the permitting processes and timelines •South Bend is in the top 10% of approval speed in the country (source: Pew Trust) •Compliant 1- and 2-unit housing permits are often approved within 24 hours •Compliant apartment housing is zoning approved within 7 days Streamlining or shortening the permitting processes and timelines ✓ Among the fastest permitting processes in the country Development Standards✓ Existing standards are more permissive Accessory Dwelling Units✓ ADUs permitted throughout city ADUs by right Tax Abatements Impact Fee Zones We Don’t Regulate this Adaptive Reuse✓ DT, NC, & UF Districts permit thisAdd C District Vacant LandPermitting✓ Among the fastest permitting processes in the country Higher Density✓ Missing Middle U2 District Land Use Map Duplex by right Floor Area Ratio We Don’t Regulate this What barriers does the state want us to address? Property tax abatements to enable housing •Since January 1, 2020, the City has participated in abatements resulting in: •652 units of housing completed or under construction •309 Affordable units of housing The city also does… •Forgivable Loans and Grants for Affordable Housing •Direct Support to LIHTC •Sewer Lateral Reimbursement •Sidewalk & Lamppost Rebates •Small Scale Developer Assistance Property tax abatements to enable housing ✓ City already does this and more Development Standards✓ Existing standards are more permissive Accessory Dwelling Units✓ ADUs permitted throughout city ADUs by right Tax Abatements✓ City already does this and more Impact Fee Zones We Don’t Regulate this Adaptive Reuse✓ DT, NC, & UF Districts permit thisAdd C District Vacant LandPermitting✓ Among the fastest permitting processes in the country Higher Density✓ Missing Middle U2 District Land Use Map Duplex by right Floor Area Ratio We Don’t Regulate this What barriers does the state want us to address? Donating vacant land for affordable housing •Since January 1, 2020, the City has transferred 171 parcels and 28 acres of land •This has resulted in •572 units of housing completed or under construction •527 Affordable units of housing Donating vacant land for affordable housing •Since January 1, 2020, the City has transferred 171 parcels and 28 acres of land •This has resulted in •572 units of housing completed or under construction •527 Affordable units of housing •And the Land Bank Donating vacant land for affordable housing ✓ City already does this Development Standards✓ Existing standards are more permissive Accessory Dwelling Units✓ ADUs permitted throughout city ADUs by right Tax Abatements✓ City already does this and more Impact Fee Zones We Don’t Regulate this Adaptive Reuse✓ DT, NC, & UF Districts permit thisAdd C District Vacant Land✓ City does thisPermitting✓ Among the fastest permitting processes in the country Higher Density✓ Missing Middle U2 District Land Use Map Duplex by right Floor Area Ratio We Don’t Regulate this What barriers does the state want us to address? Recommendations: •Permit Two-Unit dwellings by right in Urban Neighborhood 1 •Adopt the Land Use Maps from the Neighborhood Plans •Remove Owner Occupancy Requirement for Ancillary Dwelling Units •Allow Mixed-Use Developments in Commercial Zone Parcels Here’s how the State can help. Code Reform •Building Code Reform •Fire Code Reform •Elevator Reform Financial Reforms •Better align assessment values with market values, particularly the true value of land •Split-rate property tax option (Kentucky) •Condo warranty reform •Revolving loan fund to support missing middle housing Incentives •Infrastructure Grants •Transportation Funding •Preapproved Plans Grants •Infill Housing Funding Questions Public Hearing & Discussion