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HomeMy WebLinkAbout53-26 Amending Chapter 21 of the South Bend Municipal Code to Implement a Special Exception for Short-Term Rentals (Second Substitute)CITY OF SOUTH BEND DEPARTMENT OF COMMUNITY INVESTMENT September 14. 2026 Honorable Dr. Oliver Davis 3rd Floor, City Hall South Bend, IN 46601 RE: Bill #53-26 Substitute Dear Committee Chair Dr. Davis: * Filed in Clerk's Office Sep 14, 2026 Bianca Tirado City Clerk, South Bend, IN Enclosed is a substitute for Ordnance #53-26 to Implement a Special Exception for Short Term Rentals. This substitute only changes the effective date from September 1, 2026 to January 1, 2027. Nothing else in the bill is otherwise changed. This change is to make the Zoning Ordinance align with the Licensing Ordinance in terms of date of implementation. If you have any questions, please feel free to contact our office. Sincerely, Timothy Staub Zoning Specialist CC: Bob Palmer 215 S. Dr. Martin Luther King, Jr. Blvd., Ste 500, South Bend, Indiana 46601 (574) 233-0311 southbendin.gov SECOND SUBSTITUTE BILL NO. 53-26 ORDINANCE NO. Filed in Clerk's Office Sep 14, 2026 Bianca Tirado City Clerk, South Bend, IN AN ORDINANCE OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, AMENDING CHAPTER 21 OF THE SOUTH BEND MUNICIPAL CODE TO IMPLEMENT A SPECIAL EXCEPTION 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 overnight 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 infrequent special events where local hotel capacity is exceeded; 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 more effectively regulate where short-term rental uses are to be permitted, as allowed by state law; and Providing for a special exception for short term rentals, as authorized by Indiana Code 36- 1-24 et seq. allows for reasonable regulation of short term rentals; 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 a special exception 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. Chapter 21, Zoning, of the South Bend .1Inricipal Code, Article 3 Standard Districts, Section 21-02.02 Definitions is hereby amended as follows: Dwelling. Any building, or portion of a building, which is designed or used primarily for residential purposes, including a 1 unit dwelling, 2 unit dwelling, and multi -unit dwelling but not including hotc'- er bca p- brcakf t lodging. SECTION II. Chapter 21, Zoning, of the South Bend Municipal Code, Article 3 Standard Districts, Section 21-03.01 S1 Suburban Neighborhood 1, subsection (c) Principal Uses is hereby amended as follows: Lodging Hotel Short Term Rental Special Exception * 21-06.0 1(h)( 1 ) Special Exception * 21-06.01(h)(2) SECTION III. Chapter 21, Zoning, of the South Bend Municipal Code, Article 3 Standard Districts, Section 21-03.02 S2 Suburban Neighborhood 2, subsection (c) Principal Uses is hereby amended as follows: Lodging Hotel Short Term Rental Special Exception * 21-06.01(h)(1) Special Exception * 21-06.01(h)(2) SECTION IV. Chapter 21, Zoning, of the South Bend Municipal Code, Article 3 Standard Districts, Section 21-03.03 U1 Urban Neighborhood 1, subsection (c) Principal Uses is hereby amended as follows: Lodging Hotel Short Term Rental Special Exception * 21-06.01(h)(1) Special Exception * 21-06.01(h)(2) SECTION V. Chapter 21, Zoning, of the South Bend Municipal Code, Article 3 Standard Districts, Section 21-03.04 U2 Urban Neighborhood 2, subsection (c) Principal Uses is hereby amended as follows: Lodging Bed4€ast Hotel Short Term Rental Special Exception * 21 -06.01 (h)( 1 ) Special Exception * 2 1-06.0 1(h)(2) SECTION VI. Chapter 21, Zoning, of the South Bend Municipal Code, Article 3 Standard Districts, Section 21-03.05 U3 Urban Neighborhood 3, subsection (c) Principal Uses is hereby amended as follows: Lodging Hotel Short Term Rental Special Exception * 21-06.01(h)(1) Special Exception * 21-06.01(h)(2) SECTION VII. Chapter 21, Zoning, of the South Bend Municipal Code, Article 3 Standard Districts, Section 21-03.06 OF Urban Flex, subsection (c) Principal Uses is hereby amended as follows: Lodging Bcd & Breakfast Allowcd * 21 06.01(h)(1) Hotel Special -Exception Allowed subject to Conditions * 21-06.01(h)( 1W Short Term Rental Special Exception * 21-06.01(h)(2) SECTION VIII. Chapter 21, Zoning, of the South Bend Municipal Code, Article 3 Standard Districts, Section 21-03.07 NC Neighborhood Center, subsection (c) Principal Uses is hereby amended as follows: Lodging pp�����11�`�� ll//11\\ AA 1�_ �y""�T(h)(1) Hotel Allowed * 21-06.01(h)(4-}l Short Term Rental Special Exception * 21-06.01(h)(2) SECTION IX. Chapter 21, Zoning, of the South Bend Municipal Code, Article 3 Standard Districts, Section 21-03.08 DT Downtown, subsection (c) Principal Uses is hereby amended as follows: Lodging Beal & B"eakf st Allowed * 21 06.01(h)(1) Hotel Allowed * 21-06.01(h)(-W Short Term Rental Special Exception * 2 1 -06.01 (h)(2) SECTION X. Chapter 21, Zoning, of the South Bend Municipal Code, Article 3 Standard Districts, Section 21-04.02 U University, subsection (c) Principal Uses is hereby amended as follows: Lodging Bed Q, B_eak f st Al * 21 06.01(h)(1) Hotel Allowed * 21-06.01(h)( f Short Term Rental Special Exception * 2 1 -06.0 1(h)(2) SECTION XI. Chapter 21, Zoning, of the South Bend Municipal Code, Article 3 Standard Districts, Section 21-04.03 C Commercial, subsection (c) Principal Uses is hereby amended as follows: Lodging Boa .v, Bre l f st ^ * 21 06 01(h)( ) Hotel Allowed * 21-06.01(h)(2-)W Short Term Rental Special Exception * 21-06.01(h)(2) SECTION XII. Chapter 21, Zoning, of the South Bend Municipal Code, Article 3 Standard Districts, Section 21-04.04 I Industrial, subsection (c) Principal Uses is hereby amended as follows: Lodging Allowed * 21 06.0 1(h)(1) Hotel Allowed * 21-06.01(h)(2)f Short Term Rental Special Exception * 2 1 -06.0 1 (h)(2) SECTION XIII. Chapter 21, Zoning, of the South Bend Municipal Code, Article 6 Standard Uses, Section 21-06.01 Principal Uses, Table 21-06A Principal Uses by Zoning District is hereby amended as follows: Lodging Hotel Hotel S1,S2,U1,U2,U3,NC, DT, U,C,I Lodging UF Bed-&-1 reakfat Hotel Allowed Allowed subject to Conditions* Lodging S1, 52, U1, U2, U3, UF, NC, DT, U, C, I Short Term Rental Special Exception* SECTION XIV. Chapter 21, Zoning, of the South Bend Municipal Code, Article 6 Standard Uses, Section 21-06.01 Principal Uses, subsection (h) Lodging is hereby amended as follows: (1) Hotel feem, A facility that provides temporary lodging for compensation. Includes such uses as bed & breakfasts and resorts. Includes related ancillary facilities, such as dining facilities, meeting rooms, and other incidental services. (A) Standards: (ii) The bcd and brcakfaJt shall not alter thc character of thc dwelling as a fes:a are -pied- ny enthi3eFied7 (i) Guest rooms shall be accessed from the interior of the building, including from interior courtyards, lobbies, or halls. (ii) A hotel with more than 5 guest rooms shall provide a bathroom for each room. (iii) In a Si. S2, U1, U2, U3, or UF district, hotels shall have no more than 5 Quest rooms and shall appear residential in character. (2) Hotel —Stander-ds: , . (iii) In a UF district, hotels shall have no more than 5 guest rooms. (2) Short Term Rental A property that provides temporary lodging in a dwelling for terms of less than thirty (30) days at a time typically through a short term rental platform and holds a short term rental permit with the City. Excludes owner -occupied short term rentals as defined by IC 36-1- 24-3, as amended, which are permitted in all districts. (A) Standards: (i) A short term rental shall maintain a residential appearance consistent with its physical context. SECTION XV. This Ordinance shall be effective January 1, 2027, 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. .m. 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 City Hall City of South Bend 215 S. Dr. Martin Luther King, Jr. Blvd. Suite 500 PLAN COMMISSION South Bend,574) 235-7627 www.southbendin.gov/zoning August 18, 2026 Honorable Dr. Oliver Davis 3rd Floor, City Hall South Bend, IN 46601 Filed in Clerk's Office Aug 20, 2026 Bianca Tirado City Clerk, South Bend, IN RE: Bill 53-26 Proposed Zoning Text Amendment #9 for Chapter 21 — Short Term Rentals first substitute) Dear Committee Chair Dr. Davis: Enclosed is an Ordinance for a proposed first substitute Text Amendment to Chapter 21. This ordinance update relates to Short Term Rentals. Lodging uses are being updated to 1) combine Bed & Breakfast and hotel uses into a new Hotel use, and 2) add Short Term Rental as a use, including Special Exception for non -owner -occupied properties. The first substitute is necessary due to a revision approved by the South Bend Plan Commission at their public hearing on August 17, 2026. The following standard was removed from the bill. • Section XIV - Hotel Standard removed from bill: o Occupancy by any one guest shall not exceed 30 cumulative nights within any 3- month period. Please include the attached first substitute Ordinance on the Council agenda for public hearing at your September 14, 2026 Council meeting. The petition had a public hearing at the recent August 17, 2026 South Bend Plan Commission meeting. A certification of favorable recommendation of the South Bend Plan Commission was sent to the Clerk on August 18, 2026. If you have any questions, please call our office at (574) 235-7627. Sincerely, Brian Killen Zoning Administrator Tim Corcoran Brian Killen Francisco Fotia Planning Director Zoning Administrator Commission President SUBSTITUTE BILL NO. 53-26 ORDINANCE NO. Filed in Clerk's Office Aug 20, 2026 Bianca Tirado City Clerk, South Bend, IN AN ORDINANCE OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, AMENDING CHAPTER 21 OF THE SOUTH BEND MUNICIPAL CODE TO IMPLEMENT A SPECIAL EXCEPTION 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 overnight 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 infrequent special events where local hotel capacity is exceeded; 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 more effectively regulate where short-term rental uses are to be permitted, as allowed by state law; and Providing for a special exception for short term rentals, as authorized by Indiana Code 36- 1-24 et seq. allows for reasonable regulation of short term rentals; 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 a special exception 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. Chapter 21, Zoning, of the South Bend Municipal Code, Article 3 Standard Districts, Section 21-02.02 Definitions is hereby amended as follows: Dwelling. Any building, or portion of a building, which is designed or used primarily for residential purposes, including a 1 unit dwelling, 2 unit dwelling, and multi -unit dwelling but not including ho'cl3 er b a p. brca'_F sts lodging. SECTION II. Chapter 21, Zoning, of the South Bend Municipal Code, Article 3 Standard Districts, Section 21-03.01 S1 Suburban Neighborhood 1, subsection (c) Principal Uses is hereby amended as follows: Lodging Bed -et -Weak -fast Hotel Short Term Rental Special Exception * 2 1 -06.01 (h)( 1 ) Special Exception * 2 1 -06.01 (h)(2 ) SECTION III. Chapter 21, Zoning, of the South Bend Municipal Code, Article 3 Standard Districts, Section 21-03.02 S2 Suburban Neighborhood 2, subsection (c) Principal Uses is hereby amended as follows: Lodging Hotel Short Term Rental Special Exception * 21-06.01(h)(1) Special Exception * 21-06.0 1 (h)(2) SECTION IV. Chapter 21, Zoning, of the South Bend Municipal Code, Article 3 Standard Districts, Section 21-03.03 U1 Urban Neighborhood 1, subsection (c) Principal Uses is hereby amended as follows: Lodging Hotel Short Term Rental Special Exception * 21-06.01(h)(1) Special Exception * 2 1 -06.0 1(h)(2) SECTION V. Chapter 21, Zoning, of the South Bend Municipal Code, Article 3 Standard Districts, Section 21-03.04 U2 Urban Neighborhood 2, subsection (c) Principal Uses is hereby amended as follows: Lodging Bed -et -Weak -fast Hotel Short Term Rental Special Exception * 21-06.01(h)(1) Special Exception * 21-06.01(h)(2) SECTION VI. Chapter 21, Zoning, of the South Bend Municipal Code, Article 3 Standard Districts, Section 21-03.05 U3 Urban Neighborhood 3, subsection (c) Principal Uses is hereby amended as follows: Lodging Bed p, Break f st Hotel Short Term Rental Special Exception * 21-06.01(h)(1) Special Exception * 21-06.01(h)(2) SECTION VII. Chapter 21, Zoning, of the South Bend Municipal Code, Article 3 Standard Districts, Section 21-03.06 OF Urban Flex, subsection (c) Principal Uses is hereby amended as follows: Lodging Bed & Breakfast Allowed * 21 06.01(h)(1) Hotel l-Bxe-eptien Allowed subject to Conditions * 21-06.01(h)((1 Short Term Rental Special Exception * 21-06.01(h)(2) SECTION VIII. Chapter 21, Zoning, of the South Bend Municipal Code, Article 3 Standard Districts, Section 21-03.07 NC Neighborhood Center, subsection (c) Principal Uses is hereby amended as follows: Lodging ged-86-Bfealefest "'mo d * 21 06.01(h)(1) Hotel Allowed * 2 1 -06.0 1 (h)(-2-)Lli Short Term Rental Special Exception * 21-06.01(h)(2) SECTION IX. Chapter 21, Zoning, of the South Bend Municipal Code, Article 3 Standard Districts, Section 21-03.08 DT Downtown, subsection (c) Principal Uses is hereby amended as follows: Lodging Bed & Breakf st Allowed 21 06 01(h)(1 Hotel Allowed * 21-06.01(h)(2-)W Short Term Rental Special Exception * 21-06.01(h)(2) SECTION X. Chapter 21, Zoning, of the South Bend Municipal Code, Article 3 Standard Districts, Section 21-04.02 U University, subsection (c) Principal Uses is hereby amended as follows: Lodging Bey -Br eak€ast 21 06.01(h)(1) Hotel Allowed * 21-06.01(h)(2401 Short Term Rental Special Exception * 21-06.01(h)(2) SECTION XI. Chapter 21, Zoning, of the South Bend Municipal Code, Article 3 Standard Districts, Section 21-04.03 C Commercial, subsection (c) Principal Uses is hereby amended as follows: Lodging Bed & Breal Allowed * 21 06.01(h)(1) Hotel Allowed * 21-06.01(h)()11 Short Term Rental Special Exception * 21-06.01(h)(2) SECTION XII. Chapter 21, Zoning, of the South Bend Municipal Code, Article 3 Standard Districts, Section 21-04.04 I Industrial, subsection (c) Principal Uses is hereby amended as follows: Lodging Bed-& Brealkfa t AllloweElA` 21 06.01(h)(1) Hotel Allowed * 21-06.01(h)(11 Short Term Rental Special Exception * 2 1 -06.0 1(h)(2 ) SECTION XIII. Chapter 21, Zoning, of the South Bend Municipal Code, Article 6 Standard Uses, Section 21-06.01 Principal Uses, Table 21-06A Principal Uses by Zoning District is hereby amended as follows: Lodging Hotel Hotel S1,S2,U1,U2,U3,NC, DT,U,C,I Lodging OF Hotel Allowed Allowed subject to Conditions* Lodging S1,S2,U1,U2,U3,UF,NC, DT,U,C,I Short Term Rental Special Exception* SECTION XIV. Chapter 21, Zoning, of the South Bend Municipal Code, Article 6 Standard Uses, Section 21-06.01 Principal Uses, subsection (h) Lodging is hereby amended as follows: (1) Hotel fOOFFIT A facility that provides temporary lodging for compensation. Includes such uses as bed & breakfasts and resorts. Includes related ancillary facilities, such as dining facilities, meeting rooms, and other incidental services. (A) Standards: residence. are -permitted- (i ) Oc by a e t ..han not a cecd 30 c ulative nights-kyihin any--3-month-peFied7 (i) Guest rooms shall be accessed from the interior of the building, including from interior courtyards, lobbies, or halls. (ii) A hotel with more than 5 guest rooms shall provide a bathroom for each room. (iii) In a Si. S2, U1, U2, U3, or UF district, hotels shall have no more than 5 guest rooms and shall appear residential in character. (2) Hotel n f eility that „yides temporary lodginn a buildings f r c„mpens tion_ ineidental-sewiees7 (iii) In a UF distfietrhotels-sholl-have-no-more4hon4-guest40011497 (2) Short Term Rental A property that provides temporary lodging in a dwelling for terms of less than thirty (30) days at a time typically through a short term rental platform and holds a short term rental permit with the City. Excludes owner -occupied short term rentals as defined by IC 36-1- 24-3, as amended, which are permitted in all districts. (A) Standards: (i) A short term rental shall maintain a residential appearance consistent with itsphysical context. SECTION XV. 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. .m. 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