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HomeMy WebLinkAbout07-27-2026 Community Investment & Zoning and Annexation Joint Committee Minutes OFFICE OF THE CITY CLERK BIANCA L. TIRADO, CITY CLERK INTEGRITY | SERVICE | ACCESSIBILITY Jasmine Jackson Matthew Neal Veronica Pitt-Payne CHIEF DEPUTY CITY CLERK / CHIEF OF STAFF DEPUTY CITY CLERK / DIRECTOR OF POLICY DIRECTOR OF SPECIAL PROJECTS EXCELLENCE | ACCOUNTABILITY | INNOVATION | INCLUSION | EMPOWERMENT 300 City Hall | 215 S. Dr. Martin Luther King Jr. Blvd. | South Bend, Indiana 46601 | p. 574.235.9221 | f. 574.235.9173 | www.southbendin.gov COMMUNITY INVESTMENT & ZONING AND ANNEXATION COMMITTEES (JOINT MEETING) JULY 27, 2026, 5:00 P.M. Community Investment Committee Members Present: Sheila Niezgodski, Sherry Bolden-Simpson, Kevin Upton, Ophelia Gooden-Rodgers, Karen L. White Community Investment Committee Members Absent: Tom Gryp Zoning and Annexation Committee Members Present: Dr. Heidi Beidinger, Karen L. White, Kay Farlow*, Stacey Odom, Rachel Tomas Morgan, Dr. Oliver Davis Zoning and Annexation Committee Members Absent: None Other Council Present: Canneth Lee, Sharon McBride* Others Present: Bianca L. Tirado, Matthew Neal, Jasmine Jackson, Lari’onna Green, Veronica Pitt- Payne, Bob Palmer Presenters: Tim Staub, Tim Corcoran, Michael Divita Agenda: Public Hearing to Review the Unified Development Ordinance (UDO) and Any Zoning Regulations and Land Development Rules, With the Goal of Increasing Housing Development Members marked with an asterisk (*) are in virtual attendance via Microsoft Teams. Please note the attached link for the meeting recording: https://docs.southbendin.gov/WebLink/browse.aspx?dbid=0,0&mediaid=411597 EXCELLENCE | ACCOUNTABILITY | INNOVATION | INCLUSION | EMPOWERMENT 300 City Hall | 215 S. Dr. Martin Luther King Jr. Blvd. | South Bend, Indiana 46601 | p. 574.235.9221 | f. 574.235.9173 | www.southbendin.gov Committee Chair Dr. Oliver Davis, Zoning and Annexation Committee, called to order the Joint Committee meeting at 5:08 P.M. Public Hearing to Review the Unified Development Ordinance (UDO) and Any Zoning Regulations and Land Development Rules, With the Goal of Increasing Housing Development Committee Chair Karen L. White, Community Investment Committee, asked the presenters to give an overview of the meeting and explain the state’s role. Tim Staub, Zoning Specialist, with offices on the fifth (5th) floor of City Hall, South Bend, IN 46601, replied that House Bill 1001, which was passed and signed by Governor Mike Braun, requires municipalities to hold a public hearing on the topic of housing development. He said the goal is to increase housing development and discuss zoning changes that can be made as a City. Tim Corcoran, Director of Planning, with offices on the fifth (5th) floor of City Hall, South Bend, IN 46601, explained how the City’s population has changed over time, peaking in the 1960s and declining by thirty-thousand (30,000) residents over the fifty (50) years that followed. He noted that Newsweek ranked the City of South Bend among “America’s Dying Cities” in 2011. He said recovering from this decline is one (1) of the biggest challenges of our time, but the City has started to reverse that trend by taking a proactive approach. He listed some of the strategies the City has used to drive change, including hiring staff, land control and acquisition, neighborhood planning and engagement, code reform, fostering development partnerships, addressing infrastructure costs, and elevating design expectations. He emphasized the importance of infill development and waiting for proposals that add value to the community rather than moving forward with the first (1st) thing that comes along. He presented national statistics that have guided the City’s recent zoning changes and neighborhood planning efforts. Eighty percent (80%) of U.S. households are not traditional nuclear families, but seventy-two percent (72%) of housing units cater to traditional nuclear families. Seventy-five percent (75%) of households have no children, but seventy-four percent (74%) of new builds are single-family homes. Average occupancy has decreased from three-point-eight (3.8) people per household in 1950 to two-point-five (2.5) people per household today. In the same time frame, the average square footage per person has increased from nine-hundred-eighty-three (983) square feet to two-thousand-six-hundred-forty- seven (2,647) square feet. He explained that these statistics indicate a need for more units that are smaller in size. He showed examples of small-scale multi-unit residential buildings that were built when the City’s population was growing. He noted that these housing types are neighborhood- scaled, financially productive, and can be made affordable with calibrated changes to zoning and building code. He stated that the City of South Bend was ranked as the number one (1) housing market in the U.S. this year, and Mayor James Mueller’s administration has been recognized as one (1) of the most pro-housing in the state. He thanked Councilmembers for their role in helping the City turn the corner in the housing market. Tim Staub stated that the purpose of today’s public hearing is to discuss nine (9) specific barriers to housing development that the state wants municipalities to address. He explained that this is a result of state legislation that was passed in January. He provided background information on EXCELLENCE | ACCOUNTABILITY | INNOVATION | INCLUSION | EMPOWERMENT 300 City Hall | 215 S. Dr. Martin Luther King Jr. Blvd. | South Bend, Indiana 46601 | p. 574.235.9221 | f. 574.235.9173 | www.southbendin.gov House Bill 1001, stating that the original version of the bill allowed for statewide duplexes and accessory dwelling units (ADUs), smaller lot sizes, smaller setbacks, and preempted zoning code across the state. He said it also provided religious institutions with developmental powers superseding local zoning code, established mixed-use by right in commercial zoning districts, and included stair and elevator reforms. He explained that significant changes were made in the amended version of the bill signed by Governor Mike Braun. The passed legislation requires local governments to submit a housing progress report to the state, establishes a study committee regarding the “Yes in God’s Backyard” policy, and requires the public hearing that is being held today. He noted that a future version of the bill may include a funding mechanism to support communities that are proactively addressing the development barriers identified by the state. Michael Divita, Assistant Director of Planning, with offices on the fifth (5th) floor of City Hall, South Bend, IN 46601, explained key reforms that were made in the City’s 2020 zoning ordinance. These included allowing ADUs by right on all properties, creating the urban neighborhood two (U2) zoning district for “missing middle” housing, and simplifying development standards such as building heights and setbacks. He described other actions the City has taken to support housing development, such as sewer lateral reimbursement and curb and sidewalk grants, which were originally targeted toward small-scale infill projects are now being used to support neighborhood-scale redevelopment. He said the City has engaged in partnerships to build new housing and strengthened their network of small-scale developers by providing them with education, training, and resources. He spoke about the success of the City’s pre-approved plans, which have been used to create ninety-one (91) housing units since program inception. He displayed a graph showing the number of permits issued for single-family homes over the past forty-five (45) years. He stated that one-hundred-eighty-seven (187) permits for single-family homes were issued within City limits last year, the highest number on record. He compared City and County permit trends, noting that both experienced a decline following the Great Recession, but the City has outpaced the County in recovery. He said a small number of ADUs have been built since 2020, adding an affordable product to the City’s housing supply. He displayed a graph showing the number of permits issued for duplexes within City limits over the past twenty (20) years, with a sharp increase following the ordinance change in 2020. He explained that shared infrastructure, shared land and construction efficiencies reduce costs, positioning duplexes as affordable starter homes in the community. He said there are currently eighteen (18) large multi- unit projects in the development pipeline, as well as some small multi-unit projects like triplexes and fourplexes. He added that there are also a few neighborhood-scale infill projects, such as the redevelopment of the former Drewry’s Brewery site. Tim Staub displayed a list of the nine (9) development barriers the state wants local governments to address. He noted that number four (4), floor area ratio, and number six (6), impact fee zones, are not regulated by the City and do not need to be addressed. Tim Staub summarized what the City is currently doing regarding number one (1), higher density in single-unit districts. He explained that the U2 zoning district permits single-family homes, duplexes, triplexes, and fourplexes, allowing for “missing middle” housing while maintaining neighborhood character and building heights. He said the City can further address this by EXCELLENCE | ACCOUNTABILITY | INNOVATION | INCLUSION | EMPOWERMENT 300 City Hall | 215 S. Dr. Martin Luther King Jr. Blvd. | South Bend, Indiana 46601 | p. 574.235.9221 | f. 574.235.9173 | www.southbendin.gov expanding where U2 is located, following the boundaries in approved neighborhood plan zoning maps. He said another possibility would be to permit duplexes by right in urban neighborhood one (U1), noting that Council has already approved thirty-seven (37) special exceptions for duplexes in the U1 zoning district. Tim Staub moved on to number two (2), constructing other home types including ADUs and manufactured modular housing. He noted that the City permits manufactured and modular housing as long as it meets building code. He said the City permits ADUs on all parcels in the City, but they cannot be rented out unless the owner resides on the property. He recommended removing this requirement, stating that it disincentivizes the construction of new ADUs and may conflict with state law. Tim Staub discussed number three (3), adaptive reuse, next. He stated that the City already allows adaptive reuse in commercial areas including the downtown (D), urban neighborhood flex (UF), and neighborhood center (NC) zoning districts. He said the City could further explore allowing adaptive reuse in the commercial (C) zoning district. He noted that these sprawl-oriented areas are currently overserved by parking lots and could be redeveloped into multi-family housing, with some additional standards to ensure livability. Tim Staub moved on to number five (5), development standards. He noted that the City already does not regulate roof pitch and does not require off-street parking. He said the City does not require a garage on every parcel and does not have garage size regulations, but they do have garage placement requirements pertaining to setbacks from alleys. The City also does not set a minimum square footage for homes, relying on building code for that standard. He stated that the City’s minimum lot size is among the smallest in the state, and they allow narrow lots and smaller setbacks to promote walkability. He said the City does not restrict building material beyond what the code requires, and they have increased maximum building height in several of the higher- density zoning districts. He stated that in general, the City’s development standards are more permissive than most places. Tim Staub then addressed number seven (7), permitting, noting that the state wants shorter, streamlined permitting timelines. He stated the City is in the top ten percent (10%) permit approval speed in the country, with most permits for compliant one (1)- and two (2)-unit buildings approved within twenty-four (24) hours. Compliant apartment buildings can be approved within seven (7) days. Tim Staub moved on to number eight (8), tax abatements. He said the state wants local governments to use tax abatements to enable housing. He stated that the City has participated in abatements for six-hundred-fifty-two (652) new housing units since 2020, noting that three- hundred-nine (309) of these units are affordable. He added that the City also offers forgivable loans, grants, direct support for Low-Income Housing Tax Credits (LIHTC), sewer lateral reimbursement, sidewalk and lamp post rebates, and small-scale developer assistance. Tim Staub addressed number nine (9), donating vacant land for affordable housing. He stated that the City has transferred one-hundred-seventy-one (171) parcels, or twenty-eight (28) acres, since 2020. He said this has resulted in five-hundred-seventy-two (572) new housing units, five- EXCELLENCE | ACCOUNTABILITY | INNOVATION | INCLUSION | EMPOWERMENT 300 City Hall | 215 S. Dr. Martin Luther King Jr. Blvd. | South Bend, Indiana 46601 | p. 574.235.9221 | f. 574.235.9173 | www.southbendin.gov hundred-twenty-seven (527) of which are affordable. He noted that the City now has a land bank as well. Tim Staub summarized the City’s approach to the nine (9) barriers identified by the state. He said the City is already addressing most of these concerns, but potential areas for improvement include allowing duplexes by right in U1, adopting land use maps from approved neighborhood plans, removing the owner occupancy requirement for ADU rentals, and allowing mixed use development in zoning district C. Tim Staub then discussed how the state can support development in local communities and made some recommendations. He said building code and fire code reforms could be used to promote affordability while still providing a livable space. He said financial reforms could be used to align assessment values with market values, particularly for urban vacant land, which would incentivize development of these parcels. He recommended exploring a split rate property tax option similar to Kentucky. He said condo warranty reform could make it easier to subdivide multi-unit dwellings into individually owned units. He recommended a revolving loan fund to support “missing middle” housing and other incentives such as infrastructure grants, pre-approved plan grants, and funding for infill housing. Committee Member Dr. Heidi Beidinger, Zoning and Annexation Committee, asked how developers know if adaptive reuse is an option. Tim Staub said developers typically approach the City to ask about a specific property. He said staff would check the zoning and go from there. Committee Chair White asked for a copy of the presentation. Tim Staub confirmed he would send it. He said he will also send the housing progress report to Councilmembers at the end of the year. Committee Vice Chair Rachel Tomas Morgan, Zoning and Annexation Committee, acknowledged the recommendations for how the City can improve. She asked about the next steps for addressing them. Tim Staub replied that the next step would be to hear public input. Michael Divita added that they want to open the discussion and see if there is consensus among the Council. He said they will also seek input from the development community and work on implementing changes within the next year. Committee Vice Chair Tomas Morgan asked whether these changes would come forward as legislation or the zoning staff will proactively have discussions with Council. Michael Divita said they would begin with discussions before making any formal proposals. Committee Vice Chair Tomas Morgan asked if those discussions would take place within the Zoning and Annexation Committee. Michael Divita replied that staff will hold individual meetings with Councilmembers in addition EXCELLENCE | ACCOUNTABILITY | INNOVATION | INCLUSION | EMPOWERMENT 300 City Hall | 215 S. Dr. Martin Luther King Jr. Blvd. | South Bend, Indiana 46601 | p. 574.235.9221 | f. 574.235.9173 | www.southbendin.gov to public discussions in the Zoning and Annexation and Community Investment Committees. Council President Canneth Lee asked about the pros and cons of removing the owner occupancy requirement for ADU rentals. Tim Corcoran said removing the requirement would increase development flexibility and allow for a second (2nd), lower-cost rental unit on a single property. He said a potential drawback would be that there is no homeowner present on the property. He stated that the zoning staff believes the pros outweigh the cons. Council President Lee asked how the City would prevent developers from building ADUs for short-term rentals (STRs) and negatively impacting neighborhoods. Tim Corcoran replied that STR legislation and other quality-of-life ordinances would help mitigate potential negative impacts. He said the zoning team’s goal is to deliver more housing, and the City would use other tools to manage code enforcement. Committee Vice Chair Ophelia Gooden-Rodgers, Community Investment Committee, asked how close the housing supply is to meeting the need in the City. Tim Corcoran replied that based on recent housing studies, the supply is not close to meeting the community need. He noted that more housing units are needed as household sizes decrease. He said increasing the housing supply will slow down rising rent and home prices. Committee Vice Chair Gooden-Rodgers asked if the City would ever consider purchasing and renovating older homes. Tim Corcoran said they have thought about it, noting that there is a large housing stock the City would like to maintain. He said nonprofit partnerships may be a better approach for rehabbing old homes due to the complexity and unique challenges involved in this type of project. Citizen Member Kay Farlow, Zoning and Annexation Committee, asked about the City’s need for single-family homes compared to smaller units. She asked how the City plans to address barriers to homeownership. Tim Corcoran replied that the City has an “all-in” housing approach, encouraging development in all sizes and levels of affordability. He said they rely on the market to help them determine demand and product mix. He said changes to building code and condo regulations at the state level could make small multiplex units more affordable and provide more homeownership opportunities. City Clerk Bianca Tirado opened the public hearing. Will Miller, 309 West Rigg Street, New Carlisle, IN 46552, spoke on behalf of Provision Builders. He said the zoning team has done a great job making it easier to build, and the sewer reimbursement program has been effective. He said assistance with new water utility infrastructure would help developers lower their costs and keep units affordable. He added that code currently requires copper service lines, but plastics have been used effectively in other areas. He expressed support for removing the owner occupancy requirement for ADU rentals. EXCELLENCE | ACCOUNTABILITY | INNOVATION | INCLUSION | EMPOWERMENT 300 City Hall | 215 S. Dr. Martin Luther King Jr. Blvd. | South Bend, Indiana 46601 | p. 574.235.9221 | f. 574.235.9173 | www.southbendin.gov Kathy Schuth, 1007 Portage Avenue, South Bend, IN 46616, spoke on behalf of the Near Northwest Neighborhood (NNN). She expressed support for the City’s “all-in” approach and focus on infill development. She said “missing middle” housing types are how many neighborhoods were originally built and pushed back on the fear of density and parking issues. She spoke about NNN’s success building small-scale multi-unit dwellings as affordable rentals. She said triplexes and fourplexes are currently subject to the full commercial building code, and moving these property types under a residential building code would remove barriers to development. Angela Smith, 914 East Jefferson Boulevard, South Bend, IN 46617, said she is conflicted about the owner occupancy requirement for ADUs, and cost appears to be more of a barrier than zoning regulations. She said she prefers a neighborhood-by-neighborhood assessment instead of allowing duplexes in U1 by right. She encouraged the rezoning of parcels according to neighborhood plans. She recommended looking at the number of housing types allowed per lot and the requirement for both units in a duplex to face the street. She echoed comments about moving three (3)- and four (4)-unit dwellings from commercial building code requirements to residential requirements. Seeing no other members of the public wishing to speak, Clerk Tirado closed the public hearing. Tim Staub stated that three (3) additional public comments were submitted via email and have been added to the public record. He said the minutes from this meeting will be sent downstate with the housing progress report, and the zoning team will send the presentation to Committee Members. With no further business, Committee Chair Dr. Davis adjourned the Joint Committee meeting at 6:04 P.M. Respectfully Submitted, Dr. Oliver Davis, Committee Chair – Zoning and Annexation Committee Karen L. White, Committee Chair – Community Investment Committee