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Home My WebLink About52-26 Amending Chapter 4 of the South Bend Municipal Code to Establish Article 5 Containing Regulations to Implement a Permit Program for Short-Term RentalsCITY OF SOUTH BEND DEPARTMENT OF COMMUNITY INVESTMENT August 4, 2026 President Canneth Lee South Bend Common Council 3rd Floor- South Bend City Hall 215 S. Dr. Martin Luther King Jr. Blvd. South Bend, IN 46601 Re: Ordinance Establishing a Short -Term Rental Permit Program Dear President Lee: Filed in Clerk's Office Aug 5, 2026 13iunca Iurado City Clerk. South I3cnd, IN Attached for consideration by the South Bend Common Council ("Council") is an ordinance amending Chapter 4 of the South Bend Municipal Code to establish a permit program for short- term rental accommodations. The proposed ordinance creates Article 5 and establishes regulations governing the operation, permitting, and enforcement of short-term rentals within the City. The ordinance establishes a permitting process, requires compliance with applicable building and safety codes, provides for local emergency contacts, and creates enforcement mechanisms for properties that repeatedly violate City ordinances. I request that the proposed amendment be included on the full Council agenda for first reading and assignment to the appropriate committee. Thank you for your consideration. Sincerely, „doe - Darryl Scott Executive Director Department of Community Investment 215 S. Dr. Martin Luther King, Jr. Blvd., Ste Soo, South Bend, Indiana 46601 (574) 233-0311 southbendin.gov BILL NO. 52-26 ORDINANCE NO. Filed in Clerk's Office Aug 5, 2026 Bianca Tirado City Clerk, South Bend, IN AN ORDINANCE OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, AMENDING CHAPTER 4 OF THE SOUTH BEND MUNICIPAL CODE TO ESTABLISH ARTICLE 5 CONTAINING REGULATIONS TO IMPLEMENT A PERMIT PROGRAM FOR SHORT-TERM RENTALS STATEMENT OF PURPOSE AND INTENT The City of South Bend ("City") has adopted a comprehensive Zoning Ordinance to regulate the location and use of land and buildings, as authorized by Indiana Code 36-7-4 et seq.; and The rental of residential property for short-term rental to ovemight guests is not addressed in the Zoning Ordinance or elsewhere in the Municipal Code; and The City recognizes that allowing short-term rentals in some residential areas provides alternatives to hotel accommodations for visitors; and Short-term rentals help the City accommodate the many visitors who attend special events; and Many property owners who provide short-term rental accommodations are able to invest in home repairs, upgrades, and preservation projects that would otherwise be unaffordable; and Taxes collected from short-term rentals contribute to a reliable source of revenue to the City; and Certain areas of the City are less compatible for short-term rental uses and the City wishes to designate only specific areas where the uses are to be permitted, as allowed by state law; and Where short-term rentals are permitted, they should be subject to reasonable regulations to address health and safety needs of guests and neighbors, as well as to prevent and abate nuisance conditions; and Providing for a permitting system for short-term rentals, as authorized by Indiana Code 36-1-24 et seq. allows for reasonable regulation of short-term rentals, together with the ability to increase enforcement of City ordinances against properties which operate in violation of the Municipal Code; and These regulations will encourage and promote the continued residential character of neighborhoods, long-term housing supply, and public safety within neighborhoods by reducing nuisances commonly associated with short-term rentals; and Adoption of these regulations is consistent with the City's comprehensive plan; and The City finds that these regulations are needed to adequately protect the public health, safety, and welfare of its residents and guests; and Indiana Code 36-1-24 et seq. allows a political subdivision to establish and enforce permitting programs for short-term rentals, subject to certain conditions and limitations. NOW THEREFORE, BE IT ORDAINED BY THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA as follows: SECTION I. A new Article 5, Sections 4-65 through 4-71, is hereby added to Chapter 4, approved and adopted to read in its entirety as follows: ARTICLE 5 SHORT-TERM RENTAL ACCOMMODATIONS Section 4-65 Definitions. The following words, terms, and phrases, when used in this article, shall have the meanings ascribed to them in this section: (a) Owner shall have the meaning set forth in I.C. 36-1-24-2, as amended; (b) Owner -occupied short-term rental property shall have the meaning set forth in I.C. 36-1-24-3, as amended; (c) Permit shall have the meaning set forth in I.C. 36-1-24-4, as amended; (d) Permitted property shall have the meaning set forth in I.C. 36-1-24-5, as amended; (e) Short-term rental shall have the meaning set forth in I.C. 36-1-24-6, as amended; (f) Short-term rental platform shall have the meaning set forth in I.C. 36-1-24-7, as amended. Section 4-66. Legislative Intent. The purpose of the regulations contained in this article is to: (a) Protect public health and safety, through the promotion of fire and building safety, sanitation, transportation, traffic control, and pollution control; and (b) Promote the residential character of neighborhoods, including the protection of welfare, and the regulation of noise, property maintenance, and nuisance issues. Section 4-67 Short Term Rental Requirements (a) An owner using a property as a short-term rental must have established the use as a permitted use of the property pursuant to either Indiana Code 36-1-24-8 by using the property as an owner -occupied short-term rental or Indiana Code 36-1-24-9 by obtaining a special exception as required by Chapter 21 of the South Bend Municipal Code. 2 (b) No owner shall maintain, or allow occupancy, of a short-term rental unit within the City that fails to comply with applicable Fire Codes, Building Codes, and International Property Maintenance Codes. (c) All requirements set forth in this Section shall be enforced in the same manner as similar properties that are not operated as short-term rentals. Section 4-68 Application for Short -Term Rental Permit (a) Permit required. Unless exempted under this Section, any owner operating a short-term rental must hold a valid short-term rental permit. The permit requirements in this Section shall also apply to any rental of a single-family home or dwelling unit for terms of less than thirty (30) days not conducted through a short term rental platform. (b) Property Covered by Permit. One permit shall cover each single-family home, two-family or multifamily dwelling, condominium, cooperative, or time share together with all dwelling units and detached accessory structures located on the permitted property. (c) Application. The owner must submit an application for each property for which a permit is sought containing information required by Indiana Code 36-1-24-11, as amended. This application shall be made in writing to the Office of the City Controller as provided in Section 4-4(a) of this Chapter. (d) The fee for an initial permit shall be One Hundred Fifty Dollars ($150.00). (e) Applicants for a short term rental permit must provide the City with an emergency contact for the rental with 24/7 availability, pursuant to Indiana Code 36-1-24-10(5). (f) If any information included in the application changes, the owner shall provide updated information to the City in writing within thirty (30) business days. (g) Except as otherwise provided in this Article, if an owner submits a permit application meeting the requirements of this Section, the permit shall be issued within thirty (30) days of receiving the application. Section 4-69 Expiration; Renewal; Revocation (a) Permits under this Article expire one (1) year after issuance. No fee shall be charged for renewal of a permit, including an expired permit. (b) The permits govemed by this Article are regulated privileges, not rights, and may be revoked in accordance with the provisions of this Section. If three (3) or more citations for ordinance violations are issued to an owner for a permitted property within a calendar year, the City may revoke a permit issued pursuant to this Article. The revocation may be effective for a period not to exceed one (1) year after the date of revocation. The owner shall receive notice and an opportunity for a hearing on the revocation of a permit, which shall be govemed by the procedures set forth in Section 4-16 of the Municipal Code. 3 (c) An owner may apply for a permit for a short-term rental for which a previous permit of the owner was revoked. If a prior permit has been revoked, the City may charge a permit fee of One Hundred Fifty Dollars ($150.00) to issue a subsequent permit to the owner. The new permit may not be issued until any outstanding fines are paid for ordinance violation citations issued to the owner with regard to use of the short-term rental. Section 4-70 Transfers and assignments. A short-term rental permit does not authorize any owner, other than the owner named on the permit, to operate a short-term rental. A permit holder may not transfer or assign the permit to another person or address. A new owner must submit an application for a new permit. Section 4-71 Penalties. (a) An owner that rents a short-term rental without obtaining a valid permit from the City pursuant to this Article commits a Class C infraction, subject to a penalty of up to Five Hundred Dollars ($500.00) per violation. (b) Each short-term rental transaction that the owner completes without a short-term rental permit constitutes a separate violation of this Article. SECTION II. This Ordinance shall be effective September 1, 2026, following its passage by the Common Council and approval by the Mayor. Canneth J. Lee, Council President • South Bend Common Council Attest: Bianca L. Tirado, City Clerk Office of the City Clerk Presented by me, the undersigned Clerk of the City of South Bend, to the Mayor of the City of South Bend, Indiana on the day of , 2026, at o'clock .m. 4 Bianca L. Tirado, City Clerk Office of the City Clerk Approved and signed by me on the day of , 2026, at _ o'clock James Mueller, Mayor City of South Bend, Indiana 5