HomeMy WebLinkAbout52-26 Amending Chapter 4 of the South Bend Municipal Code to Establish Article 5 Containing Regulations to Implement a Permit Program for Short-Term Rentals (Substitute)CITY OF SOUTH BEND
LEGAL DEPARTMENT
September 11, 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: Substitute Bill 52-26
Dear President Lee:
Filed in Clerk's Office
Sep 11, 2026
Bianca Tirado
City Clerk, South Bend, IN
Attached for consideration by the Common Council please find a substitute bill regarding the
above -referenced matter, pertaining to the permit program for short-term rentals. The revisions
follow feedback from Council members and members of the public and are as follows:
1. Including language from key statutory definitions for ease of reference;
2. Including definition for non -owner -occupied;
3. Including occupancy limit information from International Property Maintenance Code for
ease of reference;
4. Deleting scrivener's error in Section 4-68.
The effective date has also been updated to January 1, 2027.
I request that this substitute bill be included on the Council agenda for September 14, 2026. I will
be present to present at the Committee meeting and Council meeting.
Thank you for your consideration,
Jenna Throw
City Attorney
215 S. Dr. Martin Luther King, Jr. Blvd., Ste 600, South Bend, Indiana 46601 (574) 233-0311 southbendin.gov
Filed in Clerk's Office
Sep 11, 2026
SUBSTITUTE BILL NO. 52-26
ORDINANCE NO.
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
Bianca Tirado
City Clerk. South Bend. IN
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 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) Non -owner -occupied means property which does not meet the definition set forth
in Section 4-65(c);
(b) Owner shall have the meaning set forth in I.C. 36-1-24-2, as amended;
(c) Owner -occupied short-term rental property means property that is the owner's
primary residence and is offered to the public as a short term rental, as defined in
I.C. 36-1-24-3, as amended;
(d) Permit shall have the meaning set forth in I.C. 36-1-24-4, as amended;
(e) Permitted property shall have the meaning set forth in I.C. 36-1-24-5, as amended;
(f) Short-term rental means the rental of (1) a single family home; (2) a dwelling unit
in a single family home; (3) a dwelling unit in a two-family or multifamily
dwelling; or (4) a dwelling unit in a condominium, cooperative, or time share; for
terms of less than thirty (30) days at a time through a short term rental platform.
The term includes a detached accessory structure, including a guest house, or
other living quarters that are intended for human habitation, if the entire property
is designated for a single family residential use. The term does not include
property that is used for any nonresidential use. For purposes of I.C. 36-1-24-1,
the term does not include a private, owner occupied business with two (2) to ten
(10) guest rooms where overnight accommodations and a morning meal are
provided to the public for compensation and that is operated primarily as a
business, as defined in I.C. 36-1-24-6, as amended;
(g) 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
2
(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.
(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, including but not limited to occupancy
requirements set forth in the International Property Maintenance Code, adopted by
reference in Section 6-37 of the Municipal Code and described more particularly, in
part, as follows:
(1) Every bedroom occupied by one person shall contain at least 70 square feet of
floor area, and every bedroom occupied by more than one person shall contain
at least 50 square feet of floor area for each occupant thereof.
(2) Kitchens and nonhabitable spaces shall not be used for sleeping purposes.
(3) Dwelling units shall not be occupied by more occupants than permitted by the
following minimum area requirements:
MINIMUM AREA IN SQUARE FEET
Space 1-2 Occupants 3-5 Occupants 6 or More Occupants
Living rooma,b No requirements 120 150
Dining rooms,' No requirements 80 100
Kitchen" 50 50 60
Bedrooms Shall comply with Section 404.4
(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. 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.
3
(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 governed 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 governed by the procedures set forth in Section
4-16 of the Municipal Code.
(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.
4
(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 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.
Bianca L. Tirado, City Clerk
Office of the City Clerk
Approved and signed by me on the day of , 2026, at
o'clock
.m.
James Mueller, Mayor
City of South Bend, Indiana
5
SUBSTITUTE BILL NO.
ORDINANCE NO.
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 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 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 -teen 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.
Filed in Clerk's Office
Sep 11, 2026
Bianca Tirado
City Clerk, South Bend, IN
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
Chapter4, 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) Non -owner -occupied means property which does not meet the definition set forth
in Section 4-65(c)
b Owner shall have the meaning set forth in I.C. 36-1-24-2, as amended:
)Owner -occupied short-term rental property means property that is the owner's
primary residence and is offered to the public as a short term rental, n`-"-the
meaningwet forth as defined in LC. 36-1-24-3, as amended;
_Permit shall have the meaning set forth in I.C. 36-1-24-4, as amended;
03(e) Permitted property shall have the meaning set forth in I.C. 36-1-24-5, as
amended;
4e ( Short -tern rental means the rental of (1) a single family home; (2) a dwelling
unit in a single family home; (3) a dwelling unit in a two-familv or multifamily
dwelling; or (4) a dwelling unit in a condominium, cooperative, or time share; for
terms of less than thirty (30) days at a time through a short term rental platform.
The term includes a detached accessory structure, including a guest house, or
other living quarters that are intended for human habitation. if the entire propene
is designated for a single family residential use. The teen does not include
propenv that is used for anv nonresidential use. For purposes of I.C. 36-1-24-1,
the term does not include aprivate, owner occupied business with two (2) to ten
(10)guest rooms where overnight accommodations and a morning meal are
provided to the public for compensation and that is operated primarily as a
business. as defined in I.C. 36-1-24-6. as
amended:
444(e) 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:
2
(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.
jNo 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, including but not limited to occupancy
requirements set forth in the International Property Maintenance Code, adopted by
reference in Section 6-37 of the Municipal Code and described moreparticularly, in
part, as follows:,
(1) Every bedroom occupied by one person shall contain at least 70 square feet of
floor area, and every bedroom occupied by more than one person shall contain
at least 50 square feet of floor area for each occupant thereof,_
(2) Kitchens and nonhabitable spaces shall not be used for sleeping purposes,
(3) Dwelling units shall not be occupied by more occupants than permitted by the
following minimum area requirements:
MINIMUM AREA IN SOUARE FEET
S ace 1-2 Occupants 3-5 Occupants 6 or More Occupants
jiving room' b No requirements 120
pining room' b No requirements 80
itchenb
- -{ Formatted: Font: Bold
- -{ Formatted: Font Bold
- -{ Formatted: Font: Bold
{ Formatted: Font: Bold
3
Formatted: Font: Times New Ronan
Formatted Table
Formatted: Font Times New Roman
150 _ - { Formatted: Font Times New Roman
100 _ - { Formatted: Font: Times New Roman
50 _ 50 _ 60 _ _ _ - { Formatted: Font: Times New Roman
edrooms Shall comply with Section 404.4
(4)4
(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. Any owner operating a short-
term rental must hold a valid short-term rental permit. The permit requirements in this
{ Formatted: Font: Times New Roman
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 pennit 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 pennit, including an expired permit.
(b) The pennits governed 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 (I) 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 governed by the procedures set forth in Section
4-16 of the Municipal Code.
(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.
4
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 -January 1, 20276, following
its passage by the Common Council and approval by the Mayor.
Canneth Lee, Council President
South Bend Common Council
Attest:
Bianca 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.
Approved and signed by me on the
o'clock .m.
Bianca Tirado, City Clerk
Office of the City Clerk
5
day of , 2026, at
James Mueller, Mayor
City of South Bend